Suntory Beverage & Food : Notification Concerning Content of Parent Company Financial as of June 30 2019

Suntory Holdings Limited	February 14, 2020
SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS AS OF
DECEMBER 31, 2019 [IFRS] (English Translation, UNAUDITED)
Company Name:	Suntory Holdings Limited
	(URL: https://www.suntory.com/)
Representative:	Takeshi Niinami, President
Contact:	Hiroshi Kato, Head of Public Relations
Public Relations Office:	Tel:[phone]
	Tel:[phone]

(Fractions of millions have been truncated)

1. Consolidated operating results and financial positions for the fiscal year (January 1, 2019 - December 31, 2019)

(1) Operating results													(% figures represent change from the same period of the previous fiscal year)
			Revenue (including	Revenue (excluding		Operating		Profit before		Profit			Profit attributable to
								owners of the
			excise taxes)		excise taxes)			income					income taxes		for the year
											Company
Fiscal year ended			¥million	%		¥million	%			¥million	%			¥million	%			¥million	%	¥million	%
December 31, 2019		2,569,230		2.1		2,294,704	2.0			259,646		3.5			241,505	3.9			182,435		0.6	140,940		0.6
December 31, 2018		2,517,258		4.0		2,250,782		4.3			250,859		(1.1)			232,347	2.4			181,387		(28.0)	140,151		(33.7)
Reference: Adjusted operating income for the fiscal year ending December 31, 2019		258,519million	3.0 %
Adjusted operating income for the fiscal year ending December 31, 2018		250,955million (1.8) %
Adjusted operating income was calculated as operating income excluding non-recurring items.
	Basic earnings per share	Diluted earnings per share		Profit ratio to equity		Profit before income taxes	Operating income ratio to
	attributable to owners of			ratio to total assets		revenue (excluding excise
																		the Company						taxes)
Fiscal year ended	¥						¥											%								%							%
December 31, 2019	205 .53							－				10.6									5.4						11.3
December 31, 2018	204 .39							－				11.3									5.2						11.1
(2) Financial positions
																	Equity attributable to		Equity attributable to			Equity per share
	Total assets					Total equity		owners of the Company		attributable to owners of
					owners of the Company
																				ratio						the Company
Fiscal year ended				¥million					¥million					¥million								%			¥
December 31, 2019	4,516,779						1,793,887				1,398,534								31.0			2,039.41
December 31, 2018		4,421,864						1,651,689					1,272,770								28.8			1,856.01
(3) Cash flows
				Operating							Investing							Financing			Cash and cash equivalents at
				activities							activities							activities						the end of the year
Fiscal year ended										¥million							¥million									¥million								¥million
December 31, 2019										321,613							(120,525)						(218,969)						255,302
December 31, 2018										250,384							(104,196)						(232,938)						272,425
2. Dividends
				Dividends per share			Total cash dividends	Dividend payout ratio						Ratio of
							dividends to equity attributable
				(Annual)							(Annual)						(Consolidated)
																	to owner of the Company
Fiscal year ended							Yen						Millions of yen									%										%
December 31, 2019		13	.00												8,914										6.3										0.7
December 31, 2018		13		.00												8,914										6.4										0.7

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3. Consolidated earnings forecast for the fiscal year ending December 31, 2020 (January 1, 2020 - December 31, 2020)

	Revenue (including	Revenue (excluding	Operating		Profit before		Profit attributable to	Basic earnings per
	excise taxes)			excise taxes)		income		income taxes		owners of the	share
						Company
Fiscal year ended	¥million	%		¥million	%	¥million	%	¥million		%	¥million	%		¥
December 31, 2020	2,640,000		2.8		2,360,000		2.8	260,000		0.1	243,000		0.6	130,000		(7.8)	189	.57
Reference: Adjusted operating income for the fiscal year ending December 31, 2020	266,000million	2.9％

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SUMMARY OF NON-CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2019 (English Translation, UNAUDITED)

(1) Operating results

Fiscal year ended December 31, 2019 December 31, 2018

Fiscal year ended December 31, 2019 December 31, 2018

(2) Financial positions

As of

December 31, 2019

December 31, 2018

(% figures represent change from the same period of the previous fiscal year)

	Operating revenue				Operating income			Ordinary income
	¥million	%			¥million	%			¥million	%
	136,843			27.8			90,920	42.2			94,050	35.7
107,068			△22.4		63,920		△31.5		69,297	△26.7
	Net income				Basic net earnings per share
	¥million	%				¥
	89,297			36.0		130	.22
65,668			△27.0	95	.77
	Total assets		Net assets		Ratio of equity		Total equity per share
			to total assets
	¥million					¥million		%			¥
	2,085,813			831,853		39.9			1,213.05
2,072,627			750,898	36.2			1,094.99

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Operating Results

1. Overview of the Twelve-Month Period Ended December 31, 2019

The Suntory Group has actively expanded business in each of three segments, "Beverages and foods," "Alcoholic beverages," and "Others," both domestically and abroad. In the fiscal year under review, revenue (excluding excise taxes) grew by 2.0% over the same period of the previous year to 2.2947 trillion yen, while revenue (including excise taxes) came to 2.5692 trillion yen, an increase of 2.1% from the same period of the previous year. Operating income rose by 3.5% to 259.6 billion yen, and profit attributable to owners of the Company was 140.9 billion yen, up 0.6% over the same period of the previous year.

Suntory Beverage & Food Limited focused on strengthening brands and creating new demand with the aim of proposing unique, high-quality products that capture the customer's tastes and needs to further enrich customer lifestyles, as well as on improving product quality. Furthermore, the company focused on strengthening its business foundations in each area for sustained growth in the future.

In Japan, although the company aimed to create new demand by strengthening core brands, mainly in the categories of water, coffee, and sugar-free tea again this year, sales volume fell below its level for the same period of the previous year. Still, it outpaced the soft drink market, which is estimated to have declined year on year due to the end of the rainy season being delayed, among other factors. Suntory Tennensui fell year on year due to the impact of poor weather in July. In the BOSS brand, in addition to actively expanding marketing activities for canned coffee, we grew the Craft BOSS series, and the sales volume for the brand as a whole recorded year-on-year growth. In the sugar-free tea category, although the sales volume of Iyemon fell year on year, the sales volume of Green DAKARA Yasashii Mugicha increased substantially. Furthermore, in addition to conducting active marketing activities for products such as Tokucha, which is a specified health food, and Iyemon Plus for Cholesterol Control, which is a food with functional claims, efforts were made to increase revenue, such as revising the prices of certain products in May. Furthermore, the company engaged in the establishment of a high added-value and high revenue model, structural reform of SCM and structural reform of the vending machine business as medium-term structural reforms aimed at increasing profitability. Structural reform of the vending machine business will require time for results to appear as initially anticipated, but the

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establishment of a high added-value and high revenue model and structural reform of SCM have steadily produced results. Furthermore, in addition to engaging in ongoing activities to reduce costs, marketing and advertising expenses decreased compared to the same period of the previous year.

In Europe, sales volume in France fell below the level of the same period of the previous year for the flagship Oasis brand, due to the impact of the market slowdown, but sales volume of Orangina was at generally the same level as the previous year. In the United Kingdom, the sales volume for Lucozade continued on a trend of recovery and exceeded the level of the same period of the previous year. In Spain, sales volume of the flagship Schweppes brand increased year on year, driven by the off premise channel, but difficulties in the on-premise channel with high unit prices led to sales for Spain as a whole falling compared to the same period of the previous year.

In Asia, products such as the Sting energy drink and TEA+ performed well in Vietnam, and the flagship PEPSI performed well in Thailand, with sales in the soft drinks business all exceeding the same period of the previous year. Furthermore, in Thailand and Vietnam, we launched the goodmood flavored water, which has been well received in Indonesia. In the health food business, we made stronger marketing efforts for BRAND'S Essence of Chicken and others mainly in the core market of Thailand, and also proceeded to review our distribution policy.

In Oceania, we engaged in strengthening of marketing for energy drinks including V in the soft drinks business, and continued efforts to strengthen flagship brands such as TOBY'S ESTATE, L'AFFARE and Mocopan in the fresh coffee business.

In Americas, in addition to further strengthening sales of flagship carbonated beverage brands, we also focused on the growing category of non-carbonated drinks, such as water and coffee beverages.

As a result of the above, revenue for the Beverages and foods Segment increased 0.4% year on year to 1.2917 trillion yen, while operating income rose by 0.3% to 135.7 billion yen.

The revenue figures for the Alcoholic beverages Segment exclude excise taxes.

Comparable revenue for Beam Suntory Inc., excluding the impact of currency, increased at a mid-single-digit rate over the same period of the previous year.

Sustained consumer demand for bourbon and premium spirits helped drive strong growth for Jim Beam, Maker's Mark and the company's super-premium small batch Bourbons. The company's East-Meets-West competitive advantage was reflected in the successful launch of Legent bourbon in key markets and Oaksmith whisky in the India market.

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The company's Japan business (Suntory Spirits Limited) recorded 7% year-on-year sales growth. Whiskies delivered strong growth, centered on strategic brands Kakubin, Jim Beam, Torys, and Maker's Mark. RTD beverage sales grew volume by 17% year on year, due to very strong consumer demand for the newly launched Kodawari Sakaba no Lemon Sour, in addition to the expansion of -196℃ Strong Zero and other canned highball products, which consumers increasingly enjoy with meals. Also, to inspire consumer interest with innovative new products, the company launched products including SUNTORY WORLD WHISKY Ao, Japanese craft vodka HAKU, and Japanese craft liqueur Kanade.

With the overall beer-type beverage market*1 in Japan estimated to be falling by around 2% year on year, Suntory Beer Limited's sales volume was 71.07 million cases*2, up 2% year on year. The company's beer category drinks, excluding alcohol-freebeer-type beverages, rose 1% year on year to 63.65 million cases.

The Premium Malt's brand rose 1% year on year to 17.26 million cases. We focused on the foam, a unique characteristic of beer, by developing the promotion for "KAMIAWA," which can be enjoyed at home, when dining out, or even while sitting on the Shinkansen, and giving consumers the opportunity to experience high-quality"KAMIAWA."

In addition to the renewal of existing products in the Kinmugi brand, the new Kinmugi Gold Lager contributed to a rise of 11% year on year to 38.47 million cases, achieving a record-high sales volume.

Sales volume for the All-Free brand rose 7% year on year to 7.35 million cases. The launch of a new cask product for use by all restaurants nationwide, a first in Japan*3, and the launch of KARADA-WO-OMOU All-Free, which is the first food with functional claims for the brand, contributed to the increase, resulting in the achievement of the highest sales volume on record.

*1. Beer, including alcohol-freebeer-type beverages, on a volume basis

*2. Converted to large bottles (1 case = 633ml × 20 bottles)

*3. As of February 2019 Suntory survey of major beer manufacturers

Suntory Wine International Limited's revenue fell 3% year on year.

In domestic wine, products such as Sankaboshizai Mutenka no Oishii Wine, which has the leading sales in the domestic wine market*4, performed strongly, with a 4% year-on-year increase in sales volume. Imported wine was helped by the EU-Japan Economic Partnership Agreement taking effect in February, with strength in European wines such as Freixenet and Baron de Lestac.

*4. Research by SRI: Japanese wine market sales volume and amount January-December 2019 (nationwide total for supermarkets, convenience stores, discount liquor stores, home improvement stores, drugstores, ordinary liquor stores, and liquor wholesalers)

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As a result of the above, revenue (excluding excise taxes) for the Alcoholic beverages Segment was 773.4 billion yen, up 3.2% year on year, revenue (including excise taxes) came to 1.0479 trillion yen (up 3.1% year on year), and operating income was 144.3 billion yen (up 8.5% year on year).

For Suntory Wellness Limited, the Sesamin series, the skin care product F.A.G.E. and other products were strong, leading to revenue growing 8% year on year. Revenue in the restaurant businesses, including DYNAC HOLDINGS CORPORATION and PRONTO CORPORATION, also grew.

Revenue for the Others Segment was 229.6 billion yen, up 6.9% year on year, and operating income was 25.8 billion, up 1.6% year on year.

Additionally, the breakdown between domestic and overseas revenues was as follows. Revenue (excluding excise taxes)

Domestic: 1.3297 trillion yen (up 1.8% year on year)

Overseas: 965.0 billion yen (up 2.2% year on year)

Overseas ratio: 42.1% Revenue (including excise taxes)

Domestic: 1.5288 trillion yen (up 2.0% year on year)

Overseas: 1.0404 trillion yen (up 2.1% year on year)

Overseas ratio: 40.5%

Since our very inception, Suntory has aggressively pursued its interests while also putting forth initiatives to contribute to culture and society and implement environmental activities based on Suntory's founding spirit of "Sharing the Profit with Society." In addition, we have made the promise to stakeholders of "Mizu To Ikiru" (literally "living with water"), and aims to develop various activities while maintaining a harmonious coexistence between society and nature.

Based on the corporate philosophy of "to create harmony with people and nature," the Suntory Group established a Sustainability Vision to face the various issues of the world more seriously than in the past, and to continue to face the challenge of realizing a sustainable society. Perceiving the plastic problem to be an important issue, the Suntory Group has provided strong leadership for the transformation to a

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recycling-oriented and zerocarbon society by formulating a "Plastic Policy." We aim to switch all the PET bottles used globally for Suntory products to be made of recycled or plant-based material by 2030, achieving zero use of virgin petroleum-based materials. Through initiatives such as the use of lighter packaging materials as well as the use of FtoP Direct Recycle Technology*5, the first of its kind in the domestic beverage industry, the Group will continue its activities to reduce the burden on the environment.

Based on the Suntory Group's Sustainable Water Philosophy, the Suntory Natural Water Sanctuaries are now present at 21 locations in 15 prefectures nationwide, with a total space of approximately 12,000 hectares, and enabling us to achieve the goal of "cultivating water more than double the amount of groundwater pumped up in the Suntory Group's plants in Japan" one year ahead of schedule. We are also promoting activities globally that address local topics, such as the "Mizuiku" education program on water for the next generation in Vietnam, Thailand and Indonesia, and water source conservation activities in the United States and France.

In order to promote a decarbonized society and to address climate change, we are reducing carbon emissions through the introduction of the latest energy-saving technologies and the use of renewable energy at our facilities as well as in our operations throughout the value chain.

We are also actively involved in support for reconstruction. The Company disbursed donations to local governments that suffered significant damage due to Typhoon Faxai (No. 15 of 2019) and Typhoon Hagibis (No. 19 of 2019). Our reconstruction support activities for the Great East Japan Earthquake have now reached a cumulative total of around 10.8 billion yen, while the same activities for the Kumamoto Earthquake have reached a cumulative total of 400 million yen, and are still ongoing.

*5. A technology in which "flake" created by pulverizing and washing recovered PET bottles is treated at high temperature in a vacuum for a fixed period and which, after being melted and filtered, can be used to manufacture the preform directly.

2. Forecast for the Next Period

The Suntory Group will strive to respond swiftly to changes in the market environment to create yet unknown value and work to further enhance growth and profitability as a global corporate group specializing in food and alcoholic beverages. We will do this while continuing to aim for harmonious coexistence with society and nature.

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Suntory Beverage & Food Limited aims to achieve growth in revenue and income by engaging in efforts to strengthen its foundations and implement structural reforms in each of its reporting segments.

In Japan, as various costs continue to rise, creating a harsh business environment, we will work on further structural reform to improve profitability. In Europe, we will work on stimulating flagship brands as well as structural reforms such as enhancement of sales and supply chain management in major countries. In Asia, we will further strengthen efforts in both the soft drinks business and the health food business. In Oceania, we will continue to strengthen our soft drinks business, fresh coffee business, and flagship brands. In Americas, we will proceed to strengthen the flagship carbonated beverage category while at the same time working to achieve further expansion in the growing non-carbonated beverage category. We will also continue efforts to reduce costs.

As the world's third largest premium spirits company, Beam Suntory Inc. aims to outperform its global market by leveraging its strong routes to market and building its premium brands. In Japan, we will aim to expand business by further developing and strengthening brands centered on major brands such as Jim Beam, Torys, Maker's Mark, Teachers, -196°CStrong Zero and Kodawari Sakaba no Lemon Sour. Furthermore, in order to enable customer to enjoy delicious alcoholic beverages even more, we will engage in activities focused on quality from product development to the consumption, and conduct active marketing activities such as selling new products providing new value.

Suntory Beer Limited will create new demand and work on revitalization of the overall beer-type beverage market by proposing new value as well as increasing the value of brands such as Kinmugi, The Premium Malt's and All Free. The company revamped the Kinmugi brand line, including Kinmugi, Kinmugi 75% Less Carbohydrate and Kinmugi Gold Lager, seeking a balance of the flavor from malt and easiness to drink, to enable people to enjoy the beverages with everyday meals. In addition, this spring, we will begin highlighting the drinking value of a new Kinmugi brand by offering Shiki no Kinmugi (Kin-Mugi by offering products tailored to the four seasons of Japan) providing a different flavor to match each season. With The Premium Malt's brand, we will continue marketing the popular "KAMIAWA" in an effort to change customers' standard for selecting beer to be based on foam. By simultaneously revamping The

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Premium Malt's and Premium Malt's Kaoru Ale, we will seek to offer better flavor and foam quality. The content and packaging of All Free will be upgraded to offer a more refreshing beer taste as a drink for refreshment. In addition, we will seek to further expand the "highly functional" market by actively promoting the popular KARADA WO OMOU All-Free, which is a food with functional claims.

Suntory Wine International Limited is a wine maker with its own vineyards in Japan and Europe and also a distributor that handles high-quality wines from around the world. In Japan, we will also work on creating new demand by actively investing in new domestic casual wine products. Furthermore, we will work to expand our line-up of organic wines in major brands of European wine gaining attention due to the EU-Japan Economic Partnership Agreement entering into force.

Suntory Wellness Limited will continue to focus on the Sesamin series, the skin care product F.A.G.E., and other products. Additionally, we will actively develop the businesses of DYNAC HOLDINGS CORPORATION and PRONTO CORPORATION.

As a result of these activities, our forecast for revenue by segment is 1.33 trillion yen in the Beverages and foods Segment (up 3.0% year on year), 796 billion yen excluding excise taxes in the Alcoholic beverages Segment (up 2.9% year on year), 1.076 trillion yen including excise taxes in the Alcoholic beverages Segment (up 2.7% year on year), and 234 billion yen in the Others segment (up 1.9% year on year).

All these things considered, in the fiscal year ending December 31, 2020, the Group is forecasting revenue (excluding excise taxes) of 2.36 trillion yen (up 2.8% year on year), revenue (including excise taxes) of 2.64 trillion yen (up 2.8% year on year), operating income of 260 billion yen (up 0.1% year on year), and profit attributable to owners of the Company of 130 billion yen (down 7.8% year on year).

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Classification of Shareholders

									As of December 31, 2019
			Shares (Number of one unit of shares: -)				Shares less than
	Japanese				Foreign investors
	Financial	Securities	Other	Individuals and		One Unit
	government and				Total
	Other than
	institutions	Companies	Corporation		Individuals	Others	(share)
	local government	Individuals
Number of	－	4	－	2	－		－	73	79	－
Shareholders
Number of Shares
Held	－	27,485,448	－	617,408,764	－		－	42,241,984	687,136,196	－
(Unit)
Percentage of	－	4.00	－	89.85	－		－	6.14	100.00	－
Shares Held (%)

Note: 1,380,000 shares of treasury stock are included in "Individuals and Others"

Status of Major Shareholders

			As of December 31, 2019
Name of shareholders	Address	Number of shares held	Percentage of common
(thousands)	stock issued (%)
Kotobuki Realty Co., Ltd.	2-1-40 Dojimahama, Kita-ku, Osaka	613,818	89.50
Employees Share Ownership Plan of	2-1-40 Dojimahama, Kita-ku, Osaka	34,383	5.01
Suntory
MUFG Bank, Ltd.	2-7-1, Marunouchi, Chiyoda-ku, Tokyo	6,871	1.00
Sumitomo Mitsui Banking	1-1-2, Marunouchi, Chiyoda-ku, Tokyo	6,871	1.00
Corporation
Sumitomo Mitsui Trust Bank,	1-4-1, Marunouchi, Chiyoda-ku, Tokyo	6,871	1.00
Limited
Nippon Life Insurance Company	1-6-6, Marunouchi, Chiyoda-ku, Tokyo	6,871	1.00
Suntory Foundation for Life	8-1-1, Seikadai, Seika-cho,Souraku-gun, Kyoto	3,590	0.52
Sciences
Nobutada Saji	Minato-ku, Tokyo	652	0.09
Shingo Torii	Higashinada-ku, Kobe	539	0.07
Nobuhiro Torii	Minato-ku, Tokyo	173	0.02
Total	－	680,643	99.25

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Directors and Audit & Supervisory Board Members

				As of December 31, 2019
Title and				Term of	Number of
Name	Date of Birth	Brief History	shares held
Scope of Responsibility	office
			(in thousands)

Representative Director,

Joined Sony Corporation in April 1971.

Joined Suntory Limited in June 1974.

Assumed the office of Senior General Manager of Osaka branch of such company in August 1981.

Assumed the office of Director of such company in June 1982. Assumed the office of Managing Director of such company in June 1984.

Assumed the office of Senior Managing Director of such company in June 1987.

Assumed the office of Director, Executive Vice President of such company in March 1989.

Assumed the office of Representative Director, Executive Vice

President & Chief Operating Officer of such company in March 1990.

Chairman of the Board & Nobutada Saji November 25, 1945 Assumed the office of Representative Director, President &Chief Note 5 652 Chief Executive Officer

Executive Officer of such company in March 2001.

Assumed the office of Representative Director, Chairman, President

• Chief Executive Officer of such company in March 2002. Assumed the office of Representative Director and President of Kotobuki Realty Co., Ltd. in March 2002.
  Assumed the office of Representative Director, Chairman, President
• Chief Executive Officer of Suntory Holdings Limited in February 2009.
  Has occupied the office of Representative Director, Chairman of the Board & Chief Executive Officer of Suntory Holdings Limited from October 2014 to date (incumbent).
  Has occupied the office of Representative Director and Chairman of Kotobuki Realty Co., Ltd. from March 2016 to date (incumbent).

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Title and				Term of	Number of
Name	Date of Birth	Brief History	shares held
Scope of Responsibility	office
			(in thousands)
			Joined Itochu Corporation in April 1980.
			Joined Suntory Limited in June 1983.
			Assumed the office of Senior General Manager of Production
			Planning Division of such company in March 1990.
			Assumed the office of Director of such company in March 1992.
			Assumed the office of Managing Director of such company in March
			1999.
			Assumed the office of Representative Director and Senior Managing
			Director of such company in March 2001.
			Assumed the office of Representative Director, Executive Vice
Representative Director, Vice	Shingo Torii	January 18, 1953	President & Chief Operating Officer of such company in March 2003.	Note 5	539
Chairman of the Board	Assumed the office of Representative Director, Executive Vice
			President & Chief Operating Officer of Suntory Holdings Limited in
			February 2009.
			Assumed the office of Representative Director and Executive Vice
			President of Kotobuki Realty Co., Ltd. in March 2009.
			Has occupied the office of Representative Director, Vice Chairman of
			the Board of Suntory Holdings Limited from October 2014 to date
			(incumbent).
			Has occupied the office of Representative Director and Vice
			Chairman of Kotobuki Realty Co., Ltd. from March 2016 to date
			(incumbent).
			Joined Mitsubishi Corporation in April 1981.
			Assumed the office of Manager of LAWSON Project Management
			Unit and Food Service Business Unit, Consumer Business Div. of
			such company in April 2001.
			Assumed the office of President & CEO, Representative Director and
			Executive Officer of Lawson, Inc. in May 2002.
			Assumed the office of President & CEO, and Representative Director
			of such company in March 2005.
Representative Director,			Assumed the office of Chairman, Representative Director of such
Takeshi	January 30, 1959	company in May 2014.	Note 5	170
President & Chief Executive
Niinami
Officer		Assumed the office of Chairman, Member of the Board of such
			company in May 2014.
			Assumed the office of Advisor of Suntory Holdings Limited in
			August 2014.
			Assumed the office of Director of Suntory Holdings Limited in
			September 2014.
			Has occupied the office of Representative Director, President & Chief
			Executive Officer of Suntory Holdings Limited from October 2014 to
			date (incumbent).

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Title and				Term of	Number of
Name	Date of Birth	Brief History	shares held
Scope of Responsibility	office
			(in thousands)
			Joined The Industrial Bank of Japan (Present: Mizuho Bank, Ltd.) in
			July 1991.
			Joined Suntory Limited in April 1997.
			Assumed the office of Senior General Manager of Overall Sales &
			Marketing Division of such company in September 2005.
			Assumed the office of Director of such company in March 2007.
			Assumed the office of Executive Officer of Suntory Holdings Limited
			in April 2009.
			Assumed the office of Managing Executive Officer of Suntory
			Holdings Limited in April 2010.
			Assumed the office of Senior Managing Director of Suntory Holdings
			Limited in January 2011.
			Assumed the office of Representative Director, President & Chief
			Executive Officer of Suntory Beverage & Food Limited in January
Representative Director,	Nobuhiro Torii	March 10, 1966	2011.	Note 5	173
Executive Vice President &	Assumed the office of Director of Suntory Holdings Limited in
Chief Operating Officer
			January 2013.
			Has occupied the office of Representative Director and President
			of Kotobuki Realty Co., Ltd. from March 2016 to date (incumbent).
			Has occupied the office of Representative Director, Executive Vice
			President & Chief Operating Officer of Suntory Holdings Limited
			from March 2016 to date (incumbent).
			Has occupied the office of Director of Suntory Beverage & Food
			Limited from March 2016 to date (incumbent).
			Has occupied the office of Representative Director, President &
			Chief Executive Officer of Suntory Beer, Wine & Spirits Japan
			Limited from April 2017 to date (incumbent).
			Has occupied the office of Representative Director, Chairman & Chief
			Executive Officer of Suntory Liquors Limited from March 2018 to
			date (incumbent).
			Joined Suntory Limited in April 1978.
			Assumed the office of Senior General Manager of Engineering &
			Process Development Division of such company in October 2003.
			Assumed the office of Director of such company in March 2005.
Director, Executive Vice	Koji Kojima	May 21, 1952	Assumed the office of Managing Executive Officer of Suntory	Note 5	130
President	Holdings Limited in April 2009.
			Has occupied the office of Senior Managing Director of Suntory
			Holdings Limited from March 2013 to date.
			Has occupied the office of Director, Executive Vice President of
			Suntory Holdings Limited from March 2018 to date (incumbent).

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Title and				Term of	Number of
Name	Date of Birth	Brief History	shares held
Scope of Responsibility	office
			(in thousands)
			Joined Suntory Limited in April 1978.
			Assumed the office of Executive Officer of Suntory Beer & Spirits
			Limited (Present: Suntory Liquors Limited) in April 2009.
			Assumed the office of Senior General Manager, Sales Development
			& Marketing Promotion Department 1 of such company in April
			2009.
			Assumed the office of Executive Officer of Suntory Holdings Limited
			in January 2011.
Director,	Shinichiro		Assumed the office of Managing Director of Suntory Beverage &
Senior Managing Executive	November 19, 1955		Note 5	111
Hizuka	Food Limited in March 2012.
Officer
			Assumed the office of Senior Managing Director of such company in
			December 2012.
			Has occupied the office of Senior Managing Director of Suntory
			Holdings Limited from March 2015 to date.
			Has occupied the office of Director of Suntory Holdings Limited from
			March 2018 to date (incumbent).
			Has occupied the office of Senior Managing Executive Officer of
			Suntory Holdings Limited from March 2018 to date (incumbent).
			Joined Suntory Limited in April 1980.
			Assumed the office of Senior General Manager of Legal Department
			of Suntory Limited in March 2006.
			Assumed the office of Executive Officer of Suntory Holdings Limited
			in April 2010.
Director,			Assumed the office of Managing Executive Officer of Suntory
Kazutomo		Holdings Limited in April 2012.
Senior Managing Executive	October 14,1957	Note 5	123
Aritake
Officer		Has occupied the office of Senior Managing Director of Suntory
			Holdings Limited from March 2017 to date.
			Has occupied the office of Director of Suntory Holdings Limited from
			March 2018 to date (incumbent).
			Has occupied the office of Senior Managing Executive Officer of
			Suntory Holdings Limited from March 2018 to date (incumbent).
			Assumed the office of Professor of the Faculty of Law, Tokyo
			Metropolitan University in October 1988.
			Has occupied the office of Visiting Professor of the Research Center
			for Advanced Science and Technology, the University of Tokyo from
			April 2012 to date (incumbent).
Director	Takashi	April 27, 1951	Has occupied the office of Professor Emeritus of the University of	Note 5	－
Mikuriya
		Tokyo from April 2012 to date (incumbent).
			Has occupied the office of Visiting Professor of the Open University
			of Japan from April 2016 to date (incumbent).
			Has occupied the office of Director of Suntory Holdings Limited from
			March 2017 to date (incumbent).

15

			Assumed the office of Director, President and CEO of Beam Global
			Spirits & Wine, Inc. in March 2009.
			Has occupied the office of Director, President and CEO of Beam Inc.
			(Present: Bean Suntory Inc.) from October 2011.
Director	Matthew J.	August 19, 1962	Has occupied the office of Chairman of Beam Suntory Inc. from April	Note 5	－
Shattock	2014.
			Has occupied the office of Director of Suntory Holdings Limited from
			May 2014 to date (incumbent).
			Has occupied the office of Non- Executive Chairman of Beam
			Suntory Inc. from April 2019 to date (incumbent).
Title and				Term of	Number of
Name	Date of Birth	Brief History	shares held
Scope of Responsibility	office
			(in thousands)
			Joined Suntory Limited in April 1980.
			Assumed the office of Chief Operating Officer, Liquor China
			Division of such company, and Vice President of Suntory (China)
			Holding Co., Ltd. in April 2008.
			Assumed the office of Executive Officer of Suntory Holdings Limited
			in April 2009.
Senior Audit & Supervisory	Yasuhiko	February 4, 1958	Assumed the office of Director of Suntory Beverage & Food Limited	Note 5	170
Board Member	Kamada
	in March 2013.
			Assumed the office of Representative Director, President & Chief
			Executive Officer of Suntory Beverage Service Limited in April 2013.
			Has occupied the office of Senior Audit & Supervisory Board
			Member of Suntory Holdings Limited from March 2016 to date
			(incumbent).
			Joined Suntory Limited in April 1982.
			Assumed the office of CEO of Suntory Beverage & Food Asia Pte.
			Ltd. in September 2011.
			Has occupied the office of Executive Officer of Suntory Holdings
Audit & Supervisory Board	Hong Sik Park	June 16, 1958	Limited from April 2016.	Note 6	20
Member
		Has occupied the office of Audit Committee Member of Beam
			Suntory Inc. from April 2017.
			Has occupied the office of Audit & Supervisory Board Member of
			Suntory Holdings Limited from March 2019 to date (incumbent).
			Was appointed as Judge in April 1976.
			Resigned from bench in March 1980.
			Has Registered as Attorney from May 1980 to date (incumbent).
Audit & Supervisory Board	Minoru Amano	February 17, 1948	Assumed the office of Audit & Supervisory Board Member of	Note 6	－
Member
		Suntory Limited in March 2003.
			Has occupied the office of Audit & Supervisory Board Member of
			Suntory Holdings Limited from February 2009 to date (incumbent).

16

			Assumed the office of Professor of system science laboratory, Waseda
			University in April 1997.
			Has occupied the office of Outside Auditor of Fukuoka Financial
			Group, Inc. from June 2015 to date (incumbent).
Audit & Supervisory Board	Hideo Yamada	February 23, 1955	Has occupied the office of Audit & Supervisory Board Member of	Note 5	－
Member
		Suntory Holdings Limited from March 2016 to date (incumbent).
			Has occupied the office of Professor of Graduate School of Business
			Administration, Waseda University from April 2016 to date
			(incumbent).

Note: 1. Suntory Limited is Suntory Spirits Limited at the present time.

1. Director Mr. Takashi Mikuriya is an Outside Director.
2. Mr. Minoru Amano and Mr. Hideo Yamada are Outside Audit & Supervisory Board Members.
3. Mr. Shinichiro Hizuka and Mr. Kazutomo Aritake were appointed to the positions of Director, Executive Vice President on January 1, 2020.
4. Current terms of office will expire at the close of Ordinary General Meeting of Shareholders for the Fiscal Year 2019.
5. Current terms of office will expire at the close of Ordinary General Meeting of Shareholders for the Fiscal Year 2022.

17

Consolidated statement of financial position

			（Millions of yen）
	As at December 31, 2018		As at December 31, 2019
Assets
Current assets:
Cash and cash equivalents	272,425	255,302
Trade and other receivables	405,556	408,893
Other financial assets	3,671	12,344
Inventories	415,841	435,501
Other current assets	68,231		63,797
Sub-total	1,165,726	1,175,840
Assets held for sale	27		187
Total current assets	1,165,753	1,176,028
Non-current assets:
Property, plant and equipment	696,103	708,663
Right-of-use assets	－	97,359
Goodwill	867,986	857,328
Intangible assets	1,422,962	1,405,341
Investments accounted for using the equity method	42,411	46,217
Other financial assets	120,483	122,950
Deferred tax assets	71,300	73,729
Other non-current assets	34,861		29,161
Total non-current assets	3,256,110		3,340,751
Total assets	4,421,864	4,516,779

18

			（Millions of yen）
	As at December 31, 2018		As at December 31, 2019
Liabilities and equity
Liabilities
Current liabilities:
Bonds and borrowings	243,396	148,861
Trade and other payables	529,616	564,412
Other financial liabilities	98,190	121,775
Accrued income taxes	24,499	27,432
Provisions	16,490	13,985
Other current liabilities	84,765		86,327
Total current liabilities	996,959	962,794
Non-current liabilities:
Bonds and borrowings	1,348,629	1,278,013
Other financial liabilities	66,286	126,683
Post-employment benefit liabilities	40,670	43,618
Provisions	7,190	6,882
Deferred tax liabilities	288,542	289,537
Other non-current liabilities	21,895		15,362
Total non-current liabilities	1,773,215	1,760,098
Total liabilities
2,770,175	2,722,892
Equity
Share capital	70,000	70,000
Share premium	133,944	133,909
Retained earnings	1,198,492	1,329,315
Treasury shares	(938)	(938)
Other components of equity	(128,728)		(133,752)
Total equity attributable to owners of the Company	1,272,770	1,398,534
Non-controlling interests	378,918		395,352
Total equity	1,651,689		1,793,887
Total liabilities and equity	4,421,864	4,516,779

19

Consolidated statement of profit or loss

			（Millions of yen）
	Year ended December 31, 2018		Year ended December 31, 2019
Revenue (including excise taxes)	2,517,258	2,569,230
Less: excise taxes	(266,475)		(274,525)
Revenue (excluding excise taxes)	2,250,782	2,294,704
Cost of sales	(1,172,720)		(1,199,321)
Gross profit	1,078,062	1,095,383
Selling, general and administrative expenses	(832,899)	(840,306)
Gain on investments accounted for using the equity method	7,916	8,703
Other income	18,888	15,825
Other expenses	(21,108)		(19,959)
Operating income	250,859	259,646
Finance income	6,305	4,008
Finance costs	(24,817)	(22,148)
Profit before income taxes	232,347	241,505
Income tax expenses	(50,959)		(59,070)
Profit for the year	181,387	182,435
Attributable to:
Owners of the Company	140,151	140,940
Non-controlling interests	41,236		41,494
Profit for the year	181,387	182,435
Earnings per share (Yen)	204.39	205.53
Reconciliation from operating income to adjusted operating income
			（Millions of yen）
	Year ended December 31, 2018		Year ended December 31, 2019
Operating income	250,859	259,646
Restructuring charges	(12,173)	(160)
Losses from natural disaster	2,432	2,587
Insurance income	(975)	(9,795)
Impairment losses and reversal of impairment losses	3,498	4,214
Gain on disposals of shares in subsidiaries and associates	4,012	1,036
Other	3,301	991
Total	96	(1,126)
Adjusted operating income	250,955	258,519

20

Consolidated statement of changes in equity for the year ended 31 December 2019

													（Millions of yen）
			Attributable to owners of the parent
													Non-		Total
									Other				controlling
	Share		Share		Retained		Treasury						equity
					components		Total	interests
	capital		premium		earnings		shares
					of equity
Balance at 31 December 2017
70,000	133,885	1,064,603	(1,006)	(62,735)	1,204,747		340,965	1,545,713
Cumulative effect of adopting new				1,356					1,356			1,356
accounting standards
Balance at 1 January 2018	70,000	133,885	1,065,959	(1,006)	(62,735)	1,206,103		340,965	1,547,069
Profit for the year				140,151					140,151		41,236	181,387
Other comprehensive income								(64,654)	(64,654)		(13,813)	(78,467)
Total comprehensive income for the
－		－	140,151		－	(64,654)	75,497		27,423	102,920
year
Disposals of treasury shares		90			68			159			159
Dividends				(8,913)					(8,913)		(16,401)	(25,315)
Increase due to business											－	26,881	26,881
combinations
Transfer from other components of				1,295			(1,295)		－			－
equity to retained earnings
Changes in ownership interests in
subsidiaries that do not involve		(32)					(43)	(76)		50	(25)
loss of control
Total transactions with owners of the
－	58	(7,618)	68	(1,338)	(8,829)		10,529	1,699
parent
Balance at 31 December 2018
70,000	133,944	1,198,492	(938)	(128,728)	1,272,770		378,918	1,651,689
Cumulative effect of adopting new
			(1,041)					(1,041)		(453)	(1,494)
accounting standards
Balance at 1 January 2019	70,000	133,944	1,197,451	(938)	(128,728)	1,271,729		378,464	1,650,194
Profit for the year
			140,940					140,940		41,494	182,435
Other comprehensive income								(5,188)	(5,188)		(17)	(5,205)
Total comprehensive income for the
－		－	140,940		－	(5,188)	135,751		41,477	177,229
year
Dividends				(8,914)					(8,914)		(24,277)	(33,192)
Incorporation of a new subsidiary											－	274	274
Transfer from other components of		(34)							(34)		(583)	(618)
equity to retained earnings
Changes in ownership interests in
subsidiaries that do not involve				(161)			164	3		(3)		－
loss of control
Total transactions with owners of the
－	(34)	(9,076)		－	164	(8,946)		(24,589)	(33,536)
parent
Balance at 31 December 2019	70,000	133,909	1,329,315	(938)	(133,752)	1,398,534		395,352	1,793,887

21

Consolidated statement of cash flows

	Year ended December 31, 2018		Year ended December 31, 2019
Cash flows from operating activities
Profit before income taxes	232,347	241,505
Depreciation and amortization	98,417	121,506
Impairment losses (reversal of impairment losses)	4,318	2,623
Interest and dividend income	(2,435)	(2,771)
Interest expense	22,970	21,547
Gain on investments accounted for using the equity method	(7,916)	(8,703)
Increase in inventories	(14,118)	(20,516)
Increase in trade and other receivables	(9,990)	(3,968)
Increase in trade and other payables	11,409	20,033
Other	(6,327)	23,777
Subtotal	328,676	395,032
Interest and dividends received	6,988	6,932
Interest paid	(24,217)	(23,785)
Income taxes paid	(61,061)		(56,565)
Net cash inflow from operating activities	250,384	321,613
Cash flows from investing activities
Purchases of property, plant and equipment and intangible assets	(110,712)	(120,814)
Proceeds from sales of property, plant and equipment and intangible assets	5,741	3,075
Payments for acquisition of investment securities	(1,404)	(2,016)
Proceeds from sales of investment securities	3,539	603
Payments for acquisition of shares in subsidiaries involving changes in the	(26,890)	(925)
scope of consolidation
Proceeds from disposals of shares in subsidiaries involving changes in the	24,216		－
scope of consolidation
Other	1,313		(446)
Net cash outflow from investing activities	(104,196)	(120,525)
Cash flows from financing activities
Increase (decrease) in short-term borrowings	405	(7,826)
Proceeds from long-term borrowings	112,937	195,754
Repayment of long-term borrowings	(311,123)	(343,072)
Payments of finance lease liabilities	(10,014)	(31,444)
Proceeds from disposals of treasury shares	159		－
Dividends paid to owners of the Company	(8,913)	(8,914)
Dividends paid to non-controlling interests	(16,388)	(23,605)
Other	(0)	141
Net cash outflow from financing activities	(232,938)	(218,969)
Net increase (decrease) in cash and cash equivalents	(86,750)	(17,881)
Cash and cash equivalents at the beginning of the year	359,518	272,425
(Opening balance on the consolidated statement of financial position)
Reclassification of cash and cash equivalents included in assets held for	3,439		－
sale in the opening balance
Cash and cash equivalents at the beginning of the year	362,958	272,425
Effects of exchange rate changes on cash and cash equivalents	(3,782)	758
Cash and cash equivalents at the end of the year	272,425	255,302

22

Segment Information

(1) Overview of reportable segments

The reportable segments are components of the Group for which separate financial information is available and regularly reviewed by management to make decisions about the allocation of resources and to assess segment performance.

The Group applies a holding company structure and operating companies have been established by product or service. The management of each operating company focuses on the type of products and services delivered or provided when establishing its own strategy for domestic and international operations. Therefore, the Group determined and identified "Beverages and foods" and "Alcoholic beverages" as a reportable segment based on the types of products and services delivered or provided. The classification of the Group's primary products and services have been defined as below.

Reportable segment	Primary products
Beverages and foods	Non-alcoholic beverages, healthy drinks, processed foods, other products
Alcoholic beverages	Spirits, beer, wine and other alcoholic beverages
Others	Healthy foods, ice cream, restaurants, flowers, operations in China and other operations

1. Profit or loss for each reportable segment
   Profit or loss for each reportable segment of the Group was as follows. Year ended December 31, 2018

											(Millions of yen)
		Reportable segment
							Segment total		Reconciliations		Consolidated
	Beverages and		Alcoholic
				*2	*1
		Others
	foods		beverages
Revenue (including excise taxes)	1,286,582	1,015,915		214,760	2,517,258		－	2,517,258
Revenue (excluding excise taxes)
External customers	1,286,582	749,439		214,760	2,250,782		－	2,250,782
Intersegment	7,673	4,655		11,753	24,083	(24,083)		－
Total revenue	1,294,256	754,095		226,514	2,274,865	(24,083)	2,250,782
Segment profit	135,344	133,040		25,370	293,755	(42,896)	250,859

(Note) *1. Segment profit agrees with operating income presented in the consolidated statement of profit or loss.

*2. "Reconciliations" to segment profit or loss represent overhead costs incurred by the Company to manage the Group's operations and are not allocated to the reportable segments.

23

Year ended December 31, 2019

											(Millions of yen)
		Reportable segment
							Segment total		Reconciliations		Consolidated
	Beverages and		Alcoholic
				*2	*1
		Others
	foods		beverages
Revenue (including excise taxes)	1,291,732	1,047,908		229,589	2,569,230		－	2,569,230
Revenue (excluding excise taxes)
External customers	1,291,732	773,382		229,589	2,294,704		－	2,294,704
Intersegment	7,653	5,037		11,666	24,356	(24,356)		－
Total revenue	1,299,385	778,419		241,255	2,319,061	(24,356)	2,294,704
Segment profit	135,726	144,330		25,779	305,836	(46,190)	259,646

(Note) *1. Segment profit agrees with operating income presented in the consolidated statement of profit or loss.

*2. "Reconciliations" to segment profit or loss represent overhead costs incurred by the Company to manage the Group's operations and are not allocated to the reportable segments.

(3) Information about geographical areas

Geographical areas other than Japan are comprised of the following countries: Americas: United States of America and others

Europe: France, UK, Spain, and others

Asia and Oceania: Vietnam, Thailand, Australia and others

1. Revenue (including excise taxes) from external customers was as follows:

									(Millions of yen)
	Japan		Americas		Europe		Asia and Oceania		Total
Fiscal year ended December 31,2018
1,498,126	355,088	321,408	342,634	2,517,258
Fiscal year ended December 31,2019	1,528,825	371,023	297,744	371,635	2,569,230

(Note) Revenue (including excise taxes) is allocated into countries or areas based on the customers' locations for the analysis above.

2. Revenue (excluding excise taxes) from external customers was as follows:

									(Millions of yen)
	Japan		Americas		Europe		Asia and Oceania		Total
Fiscal year ended December 31,2018
1,306,268	297,650	312,308	334,555	2,250,782
Fiscal year ended December 31,2019	1,329,703	312,674	288,808	363,517	2,294,704

(Note) Revenue (excluding excise taxes) is allocated into countries or areas based on the customers' locations for the analysis above.

24

Balance Sheet

		(Millions of yen)
	As of December 31, 2018	As of December 31, 2019
ASSETS
Current assets	1,282,822	1,217,632
Cash and deposits	73,046
46,923
Accounts receivable-trade	3,777	3,882
Short-term loans receivable	1,163,864	1,120,086
Advance payments-trade	1,553	926
Accounts receivable-other	37,031	42,048
Other current assets	3,549	3,765
Non-current assets	788,975	867,133
Property, plant and equipment	32,337	31,088
Buildings, net	22,120
21,316
Machinery and equipment, net	866	789
Tools, furniture and fixtures, net	4,170	3,931
Land	4,155	3,675
Construction in progress	18	407
Other	1,006	967
Intangible assets	3,843	3,830
Leasehold right	3,705
3,705
Other intangible assets	138	125
Investments and other assets	752,794	832,215
Investment securities	17,952
19,569
Shares of subsidiaries and associates	513,026	513,173
Long-term loans receivable from	192,137	271,660
subsidiaries and associates
Long-term prepaid expenses	1,140	1,665
Prepaid pension cost	21,300	19,276
Other	7,235	6,869
Deferred assets	829	1,047
TOTAL ASSETS	2,072,627	2,085,813

25

			(Millions of yen)
	As of December 31, 2018		As of December 31, 2019
LIABILITIES
Current liabilities	283,620	215,195
Short-term loans payable	26
	13
Current portion of long-term loans	76,178		56,921
payable
Current portion of bonds	76,743		－
Accounts payable-other	21,935		18,311
Accrued expenses	14,315		14,235
Accrued consumption taxes	638		510
Income taxes payable	778		638
Deposits received from employees	16,965		16,967
Deposits received	65,853		95,991
Provision for bonuses	6,159		6,545
Other	4,025		5,058
Non-current liabilities	1,038,109	1,038,764
Bonds payable	188,625
	269,902
Long-term loans payable	833,357		753,020
Deferred tax liabilities	1,622		901
Provision for retirement benefits	8,473		8,834
Other	6,030	6,106
TOTAL LIABILITIES	1,321,729	1,253,959
NET ASSETS
Shareholders' equity	747,899	828,281
Capital stock	70,000	70,000
Capital surplus	286,367	286,367
Legal capital surplus	17,500
	17,500
Other capital surplus	268,867		268,867
Retained earnings	392,470	472,852
Other retained earnings	392,470	472,852
Reserve for special depreciation	33
	23
Reserve for advanced depreciation of	1,785		1,740
non-current assets
General reserve	312,700		312,700
Retained earnings brought forward	77,951		158,388
Treasury stock	(938)		(938)
Valuation and translation adjustments	2,999	3,571
Valuation difference on available-for-sale	6,250		7,313
securities
Deferred gains or losses on hedges	(3,251)	(3,741)
TOTAL NET ASSETS	750,898	831,853
TOTAL LIABILITIES AND NET ASSETS	2,072,627	2,085,813

26

Statement of Income

			(Millions of yen)
	Fiscal year ended	Fiscal year ended
	December 31, 2018	December 31, 2019
Operating revenue			136,843
107,068
Royalty income	37,416
	38,411
Rent income	1,553		1,621
Dividends from subsidiaries and associates	68,098		96,810
Operating expenses	43,148		45,923
General and administrative expenses	43,148		45,923
Operating income	63,920
	90,920
Non-operating income	19,927		15,248
Interest income	15,486
	13,299
Interest income on securities	8		8
Dividends income	298		297
Foreign exchange gains	－	1,390
Gain on cancellation of derivatives	3,489		－
Other	644		252
Non-operating expenses	14,550		12,117
Interest expenses	11,577
	9,720
Interest on bonds	1,729		1,564
Foreign exchange losses	426		－
Other	817		833
Ordinary income	69,297
	94,050
Extraordinary income	2,134		－
Gain on sales of shares of non-current assets	1,126
	－
Gain on sales of investment securities	782		－
Other	225		－
Extraordinary loss	1,995		4,373
Restructuring cost	923		3,307
Other	1,071		1,066
Income before income taxes	69,437
	89,677
Income taxes-current	3,016		1,424
Income taxes-deferred	752		(1,045)
Net income	65,668		89,297

27

Statement of Changes in Net Assets

Fiscal year ended December 31, 2018

(Millions of yen)

			Capital surplus			Retained earnings
								Other retained earnings
													Total
	Capital	Legal		Other	Total		Reserve for			Total	Treasury
					shareholders'
			advanced		Retained
	stock	capital		capital	capital	Reserve for		retained	stock	equity
			depreciation	General	earnings
		surplus		surplus	surplus	special	earnings
			of non-	reserve	brought
							depreciation
							current		forward
								assets
Balance at January 1,
70,000	17,500	268,776		286,276	42	1,830	232,100	94,033	328,007	(1,006)	683,276
2018
Cumulative effects of
changes in accounting										7,707	7,707		7,707
policies
Restated balance	70,000	17,500	268,776		286,276	42	1,830	232,100	101,741	335,715	(1,006)	690,984
Changes of items
during the year
Dividends from										(8,913)	(8,913)		(8,913)
surplus
Net income										65,668	65,668		65,668
Reversal of reserve
for special							(9)			9	－		－
depreciation
Reversal of reserve
for advanced								(45)		45	－		－
depreciation of non-
current assets
Provision of general									80,600	(80,600)	－		－
reserve
Disposal of treasury				90		90						68	159
shares
Net changes of
items other than
shareholders' equity
Total changes of items	－	－	90		90	(9)	(45)	80,600	(23,789)	56,755	68	56,914
during the year
Balance at December	70,000	17,500	268,867		286,367	33	1,785	312,700	77,951	392,470	(938)	747,899
31, 2018

28

(Millions of yen)

Balance at January 1, 2018

Cumulative effects of changes in accounting policies

Restated balance

Changes of items during the year

Dividends from surplus

Net income

Reversal of reserve for special depreciation

Reversal of reserve for advanced depreciation of non- current assets

Provision of general reserve

Disposal of treasury shares

Net changes of items other than shareholders' equity

Total changes of items during the year

Balance at December 31, 2018

Valuation and translation adjustments
Valuation
Deferred gains	Total valuation	Total net assets
difference on
or losses on	and translation
available - for -
hedges	adjustments
sale securities
7,841	(1,485)	6,355	689,632
			7,707
7,841	(1,485)	6,355	697,339

			(8,913)
			65,668
			－
			－
			－
			159
(1,590)	(1,765)	(3,356)	(3,356)
(1,590)	(1,765)	(3,356)	53,558
6,250	(3,251)	2,999	750,898

29

Fiscal year ended December 31, 2019

(Millions of yen)

			Capital surplus			Retained earnings
								Other retained earnings
													Total
	Capital	Legal		Other	Total		Reserve for			Total	Treasury
				Retained	shareholders'
	stock	capital		capital	capital	Reserve for	advanced		retained	stock	equity
			depreciation	General	earnings
		surplus		surplus	surplus	special	of non-	reserve	brought	earnings
							depreciation
							current		forward
								assets
Balance at January 1,
70,000	17,500	268,867		286,367	33	1,785	312,700	77,951	392,470	(938)	747,899
2019
Cumulative effects of
changes in accounting											－		－
policies
Restated balance	70,000	17,500	268,867		286,367	33	1,785	312,700	77,951	392,470	(938)	747,899
Changes of items
during the year
Dividends from										(8,914)	(8,914)		(8,914)
surplus
Net income										89,297	89,297		89,297
Reversal of reserve
for special							(9)			9	－		－
depreciation
Reversal of reserve
for advanced								(44)		44	－		－
depreciation of non-
current assets
Net changes of
items other than
shareholders' equity
Total changes of items	－	－		－	－	(9)	(44)	－	80,436	80,382	－	80,382
during the year
Balance at December	70,000	17,500	268,867		286,367	23	1,740	312,700	158,388	472,852	(938)	828,281
31, 2019

30

				(Millions of yen)
	Valuation and translation adjustments
	Valuation
	Deferred gains	Total valuation	Total net assets
	difference on
	or losses on	and translation
	available - for -
	hedges	adjustments
	sale securities
Balance at January 1,	6,250	(3,251)	2,999	750,898
2019
Cumulative effects of
changes in accounting				－
policies
Restated balance	6,250	(3,251)	2,999	750,898
Changes of items
during the year
Dividends from				(8,914)
surplus
Net income				89,297
Reversal of reserve
for special				－
depreciation
Reversal of reserve
for advanced				－
depreciation of non-
current assets
Net changes of
items other than	1,063	(490)	572	572
shareholders' equity
Total changes of items	1,063	(490)	572	80,954
during the year
Balance at December	7,313	(3,741)	3,571	831,853
31, 2019

31