CSV REPORT 2019
DIGEST EDITION

Contents
02

Corporate Philosophy: THE ROUTE

03

Top Message

05

CCBJH Group by the Numbers

06

The CCBJH Group’s CSV Management072018 Financial Highlights

082018 CSV Highlights

09

Contributing to the Realization of the SDGs

1 1 CSV Progress Report		 1 1H ealth: Supporting Consumers’ Health with			an Extensive Product Line-up		12

Health: Healthcare and Skincare Business		

13	Environment: Aiming to Realize a “World			

Without Waste”

		

14

Environment: Water Resource Conservation		

15

Community: Welcoming Consumers from Overseas		16Community: Energizing Communities through Sports		

17

Customer Satisfaction		

18

Quality Assurance		19	Human Rights and Employee Job Satisfaction:

21

CCBJH Group Profile

Smart Work Discussion

Toward 2020
and Beyond
What kind of future can we create?
The Sustainable Development Goals (SDGs), which were adopted
by the United Nations in 2015, identify corporations as key actors
in solving global social issues. The continued expansion of
the CCBJH Group’s business comes with a duty to respond tosocial issues. Now more than ever, we must confront the impact
our activities have on those around us, and how we should
engage with the problems our communities face.
What should the CCBJH Group do?
And what can we do? When we think
about the future, we know
the time to act is now.

22 Plant Tours

Terminology

k

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For the full version of CSV Report 2019 (PDF),
please check our website.

http://en.ccbji.co.jp/csv/doc.php
01

The “CCBJH Group” (“we”) refers to Coca-Cola Bottlers Japan Holdings Inc. and its eight Group companies(Coca-Cola Bottlers Japan Inc., the CCBJI Group’s other companies*, and Q’SAI CO., LTD.) as well as QSAI
Analysis and Research Center Co., Ltd., QSAI FARM SHIMANE Co., Ltd., and CQ Ventures Co., Ltd., while “CCBJI”
refers solely to Coca-Cola Bottlers Japan Inc. “CCBJI Group” refers to Coca-Cola Bottlers Japan Inc. and its
Group companies. “Bottlers” refers to all bottling partners throughout Japan, as designated by Coca-Cola(Japan) Company, Limited. The “Coca-Cola system” comprises Coca-Cola (Japan) Company, Limited, itsbottling partners, and other affiliated companies. “Customers” generally refers to both “consumers” (primarily
product end-users) and “business partners” (primarily those who sell our products).
* Coca-Cola Customer Marketing Co., Ltd., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Kadiac Co., Ltd.,
Coca-Cola Bottlers Japan Business Services Inc., and Coca-Cola Bottlers Japan Benefit Inc.

Corporate Philosophy: THE ROUTE

THE ROUTE
Our philosophy that supports value creation

MissionWhat we should do for society(meaning of existence)

Deliver happy, refreshing moments toeveryone in the community, every day.

Corporate Identity
What employees should
always consider in the courseof operations

Communitybased

Hinkaku(Corporate
Dignity)

We help build and support sustainablecommunities, foster strong connections
with them, and help protect theenvironment, Creating Shared Value.

We respect human rights, honor
community principles, and strive tomaintain the highest ethical standards.

Customercentric

We focus on all our consumers
and customers to become theirtrusted partner.

Diversity

We respect the individuality of ouremployees, actively incorporating diverse
values and ideas so all can achieve theirfull potential.

Culture1

Build on our HERITAGE as we shape our FUTURE.

5 Enjoy life and welcome CHALLENGE.

What we value and how we
act in order to be a company
that supports society

2 Fuel life and work with commitment and PASSION.

6 Act with RESPECT, inspire RESPECT.

3 Base judgments on ETHICS.

7 Value COOPERATION.

4 Think independently, take RESPONSIBILITY.

8 Pursue “SIMPLE AND SPEEDY” solutions.

CCBJH Group philosophy

https://en.ccbji.co.jp/vision/about.php
02Top Message

As society changes,
our company must as well.
How we transform is up to us.
A year in which the CCBJH Group
achieved results while also
recognizing new challenges
The Coca-Cola Bottlers Japan HoldingsGroup (CCBJH Group), created from the
management integration of Coca-Cola
West and Coca-Cola East Japan bottlingcompanies, consists of two businesssegments: the Coca-Cola beveragebusiness and the healthcare and skincare
business. Among more than 250 Coca-Colabottlers worldwide, the CCBJH Group is
the largest Coca-Cola bottler in Asia, and
the Group’s beverage business is one of thelargest in the world in terms of revenue.
Our corporate identity consists of four
ideals to which all CCBJH Group employees
should aspire in their daily businessactivities: community-based and customercentric values, hinkaku (corporate dignity),and diversity. Our standard for being
community-based is to realize the conceptof Creating Shared Value (CSV) by placing
importance on connections with local
communities and the environment that wehave nurtured over many years. We suffereda major blow in July 2018, when the Hongo
03

Plant in Mihara, Hiroshima Prefecture,sustained severe damage from torrential
rains and flooding in western Japan andsuspended all operations. Spurred to action
by our commitment to being communitybased and customer-centric, we quickly
decided on an appropriate relocation site in
the local Mihara area and are now steadily
working to rebuild and restart operations inthe spring of 2020 at the new site.
Although our business integration has
created many benefits in terms of scale andoperational synergies, we face the challengeof how to respond to a rapidly changing
market environment and diversifying
customer needs. To help address thischallenge, we implemented a reorganizationin March 2019, shifting to an organizational
structure that enables faster and more
efficient decision-making, a renewed growthmindset, and a reenergized commitment tocreating shared value.
On a personal note, I am excited to beback in Japan, a place that is like a second

The outcome of creating shared value iswhere our true results lie.
home to me, and I feel a great sense of
purpose in having this opportunity toshape the future development of the
CCBJH Group. I take very seriously thesocial responsibilities that the Group must
fulfill as a leader in the Japanese beverage
market and will devote myself
wholeheartedly to rebuilding a foundation
for future growth under the new corporate
structure.

Engaging with the SDGs andreinforcing our ESG-focused
initiatives
The Sustainable Development Goals(SDGs), comprising 17 goals to be achievedby 2030, were adopted at a United Nations
Summit in 2015, and Japan’s Corporate
Governance Code went into effect thesame year. In 2018, Japan’s Ministry of
Economy, Trade and Industry endorsed andsigned a statement of commitment to the
purpose of the Task Force on Climaterelated Financial Disclosures (TCFD),
instituted by the Financial Stability Boardin accordance with the instructions of theG20 Finance Ministers and Central Bank
Governors Meeting. It is clear that
corporate environmental, social, andgovernance (ESG) performance is only
becoming more important.
Since before the business integration,
the CCBJH Group had established CSR
priorities in accordance with ISO 26000,
the international standard for social
responsibility, and managed its businesses
with a strong focus on ESG. The Group
continues to place the concept of Creating
Shared Value (CSV), a further refinement of
CSR, at the core of management, and all of
the Group’s employees and businessdivisions will concentrate their efforts onrealization of CSV in their own work.
In addition to the priorities of customer
satisfaction, quality assurance, ethics andcompliance, risk management, humanrights, and job satisfaction, we will consider
what new added value we can deliver byleveraging the power of the Coca-Colabrand and how we can help solve problems
facing local communities through ourbusiness. We will focus on our priority
issues of health, the environment, andcommunity while further reinforcing

initiatives aimed at creating shared value.
In the area of health, we will promotehealthy lifestyles through the provision ofsafe, high-quality products and services
suited to the needs and preferences ofpeople of all ages. In addressing theenvironment, we aim to be on the cuttingedge and leverage innovation tosimultaneously grow our business andreduce our environmental impact throughprograms focused on packaging andwater—which is essential to our business—
as well as other natural resources. To
benefit communities, we will make real theconcept of CSV by further boosting
collaboration and engaging in activities
that contribute to community revitalization.
Sustainable growth is not possible for acompany that believes business expansion
can only come at the expense of theenvironment and society. The CCBJHGroup is not simply interested in the shortterm pursuit of profits. Rather, we want tomaintain a wide perspective and farsighted
outlook to ensure close alignment between
the future needs of society and thecommunities in which we operate, and our
vision for the long-term health of ourbusiness. As we embrace new challenges
with corporate dignity and become a placein which every employee understands thatbusiness results can contribute to sharedvalue with society, we look forward toearning and maintaining the continued
trust of our many stakeholders.

Calin Dragan
Representative Director and President
Coca-Cola Bottlers Japan Inc.

04

CCBJH Group by the Numbers

WHO WE ARE
Among the world’s largest
by revenue andBrands offeredin JapanAsia’s largest

independent Coca-Cola bottler

Over

50

Vending machines
ASIA

About

700,000

Plants*17

JAPAN

Sales and
distribution
centers*	Includes the Hongo Plant, Hiroshima,
which is currently inactive

Business area

Tokyo,
Kyoto,
Osaka, 35
andResponsible for close to 90% of the sales volume of
the Coca-Cola system in Japan

05

About

350
Consumers
Customer outlets

prefectures

240,000(Households and consumers in sales areas)

About

112 million(51 million households)

Data as of the end of December 2018

The CCBJH Group’s CSV Management

CREATING SHARED VALUE
While providing significant value to society throughits business activities, the CCBJH Group seeks tofurther its presence in nurturing prosperity together
with its stakeholders. To this end, the Group has
adopted the CSV concept as a part of managing
how it carries out business.

HealthEnvironment

Community

CSV focal points
Since the CCBJH Group recognizes that addressing social
issues in areas closely related to its business activities is key
to realizing CSV, the Group has decided to focus on thethree priority issues of health, the environment, andcommunity. We believe that using the strengths of the
CCBJH Group to contribute to the development of asustainable society will help cultivate the support and trustof many stakeholders. Building on the main topics ofcustomer satisfaction, quality assurance, ethics andcompliance, risk management, respect for human rights,
and employee job satisfaction, we have set goals andguidelines for all employees to carry out their daily tasks.

Conducting business together
with stakeholders
The stakeholders with which the CCBJH Group creates
shared value include local communities, various associations
and organizations, consumers, business partners, suppliers,
investors, and the employees that work as part of theGroup. As the issues that society faces become morediverse and complex, the participation of our stakeholders
is crucial. Listening to our stakeholders’ needs and providing
value to society is the Group’s most important mission.

Humanrights & job
satisfaction

Customersatisfaction

Qualityassurance

Ethics &complianceRiskmanagement06

2018 Financial Highlights

2018 AT A GLANCE
Revenue

Business income¥927,307
millionOperating profit¥23,276

millionVolumecomparisonby category

million

Net profit for the year attributableto owners of the parent¥ 14,682

Volumecomparisonby channel¥ 10,117

millionSupermarket........................................ 23%
Drug store & discounter.................. 1 3%
Convenience store............................. 1 6%
Vending machine............................... 24%
Retail & food service......................... 23%
Other....................................................... 1 %Sparkling soft drink........................... 27%
Non-sugar tea...................................... 20%
Sports drink.......................................... 9%
Water...................................................... 9%
Coffee..................................................... 20%
Juice........................................................ 7%
Other....................................................... 8%

Sales volume does not include alcoholic beverages.

Earnings per share(EPS)¥52.682019 Key Metrics*
Revenue growth

Beginning from the full-year fiscal 2018 results, wehave reported financial information according toInternational Financial Reporting Standards (IFRS).
“Business income” has also been introduced as ameasure of recurring business performance since theadoption of IFRS.

Value share

Revenue unchanged year on year, volume –1%
Value ahead of volume

CAPEX¥99.8 billion

Business income (BI)¥15.4 billion

Dividend

Full-year ¥50/share*Based on the “Revision of Full-Year 2019 Forecast” released on May 15, 201907

2018 CSV Highlights

2018 CSV HIGHLIGHTS
Hydration seminar andDrink Education seminar participants

Approx.

8,600(approx. +3,600 year on year)

Brands and products offered in Japan

Over

50

Water used for manufacturing

14,071800

beverage
products

FOSHU* and Food with
Function Claims products sold in Japan

11.5

million cases(–800,000 year on year)

4,415(–7.30% year on year)(–608 year on year)

Recycling rate of waste from plants

Plant tour visitors

Overbrands andthousand m3

Sports clinic and class participants

Approx.

99.11%

Approx.

1 67,000(approx. –0.83% year on year)(approx. –6,000 year on year)

CFC-free vending machine ratio

Disaster agreements with local governments

Approx.

78%(approx. +10% year on year)586(+2 year on year)*Foods for Specified Health Uses

08

Contributing to the Realization of the SDGs

FOR A HEALTHIER WORLD

09

Responsible
Consumption
and Production

Good
Health andWell-being

Clean Waterand Sanitation

ClimateActionQuality
Education

Decent Workand Economic
GrowthLife
Below Water

GenderEquality

ReducedInequalities

Peace, Justiceand Strong
Institutions

The Sustainable Development Goals (SDGs), adopted at the United Nations
Sustainable Development Summit held in September 2015, are a set ofshared global priorities to be achieved by 2030 through the efforts of theinternational community in order to realize a world in which no one is left
behind. The SDGs are universal goals that broadly encompass economic,
social, and environmental topics.

ECONOMY

What arethe SDGs?

SOCIETY

Goals closely connected to
the CCBJH Group's business activities

The SDGs are common global goals to be achieved by 2030.

BIOSPHERE

The Sustainable Development Goals (SDGs), adopted at the United Nations
Sustainable Development Summit held in September 2015, are a set of sharedglobal priorities to be achieved by 2030. The CCBJH Group aims to contribute to
the SDGs through its business activities, and is developing specific action plans
in collaboration with Coca-Cola Japan and other stakeholders.
Using the model on the right to examine the SDGs overall, while also referringto the standards from the Global Reporting Initiative (GRI) and the Sustainability
Accounting Standards Board, we have formulated goals and initiatives that areinterconnected with our business activities. We will next consider and proactively
address the risks and opportunities to be found in our value chain structure.

Based on the SDG “wedding cake” illustration presented by Johan Rockström and Pavan Sukhdev(Image credit: Azote for Stockholm Resilience Centre, Stockholm University)SDG-related Initiatives
	Supporting consumers’ health with an extensive
product line-up (Foods for Specified Health Uses,
Foods with Function Claims)

	Collaborating with members of the beverageindustry and other stakeholders on recycling
initiatives

	Open communication and correct information
	Bins for sorting recycling and consumer awarenessstickers	Healthcare and skincare business	Participation in community cleanup campaigns	2030 Packaging Vision	Health support initiatives (Coke ON Walk, mocktails,and “Enjoy Walking until 100 Project”)	Compliance with ISO 14001 andother international regulations	Hydration seminars, Drink Education seminars

	Recycling waste from plants (zero emissions)	Sports clinics by company sports teams

	Agreements with local governments and installationof disaster-response emergency vending machines	Plant tours	Quality assurance system (KORE)

	Risk management systems
	Corporate governance	Environmental education programs
	Production department initiatives
	Increased efficiency and use of modal shiftby the logistics and transportation department
	Diversity and inclusion initiatives

	Eco-driving and use of hybrid vehicles

	Initiatives for expanding women’s roles in theworkplace	Use of energy-saving, non-chlorofluorocarbon
equipment by sales department

	Water resource conservation
	Returning to nature the water used for
manufacturing	Forest preservation activities(Coca-Cola “Learn from the Forest” project)

The Coca-Cola system
in Japan

The Coca-Cola system in Japan is composed of Coca-Cola (Japan) Co., Ltd.—which supplies
beverage bases, plans and develops new products, and conducts marketing activities—as wellas five bottling partners and other affiliated companies that manufacture or sell products andretrieve their containers.

	Human resources development (careeradvancement and performance evaluation)
	Human rights initiatives
	Occupational safety and health initiatives

Coca-Cola (Japan) Co., Ltd.

Bottling partners and affiliated companies

	Work-style reform initiatives
	Welcoming consumers from overseas (multilingual
POP communication materials, visitor-friendly
vending machines)	Customer Contact Center	Compliance education

Planning

Researchanddevelopment

Beverage
base
production

Production

Distributionandtransportation

Sales

Retrieval

Recycling

Coca-Cola Tokyo Research & Development Co., Ltd.

	Ethics & Compliance Reporting Hotline

10

CSV Priority

HealthSupporting Consumers’ Health withan Extensive Product Line-up

FeaturedTopic

We offer a wide product line-up adapted to diverse needs. We have responded to growing healthconsciousness with products such as mineral water, non-sugar tea, and no-calorie beverages, andin recent years we have also expanded our line-up to include Foods for Specified Health Uses
(FOSHU) and Foods with Function Claims. We support our consumers’ lifestyles through productsthat provide overall refreshment and contribute to improving health.

2018

2009
debut

debut

Sokenbicha
Since its launch in 1993, as aunique non-sugar tea thatprovides refreshment whileaiding health and beauty,
Sokenbicha has become aleader in the non-sugar tea
category because of its clean
aroma and is loved by a wide
range of people.

I LOHAS is a brand ofJapanese mineral water
developed out of a love forgreat-tasting water and theenvironment. I LOHAS mineralwater is drawn from carefully
selected water sources andlocally produced for adelicious taste that can beenjoyed at any time.

2007
debut

In recent years, major changes in Japan’s
population demographics, such as declining
birthrate and aging population, have increased inseverity. The lifestyles of individuals are also likely
to become even more diverse in the coming years
due to the increasing number of nuclear families
and single-person households.

Canada Dry
The Tansan Strong

Ayataka
Tokusencha

Canada Dry The Tansan
Strong is highly carbonatedwater with zero calories,
zero sugar, and zero
caffeine created to provide
an invigorating feel andcrisp flavor. Both the waterand gas used forcarbonation are filtered in
the uncompromising
pursuit of delicious taste.

This product is a
FOSHU green tea that
contains indigestible
dextrin, a plantderived dietary fiber.
The product provides
two health benefits bysuppressing fat
absorption andslowing sugar
absorption.

Aquarius S-Body

Coca-Cola Zero
Since its launch in 2007,
Coca-Cola Zero has delivered
the delicious signature tasteof Coca-Cola with zerocalories, zero preservatives,and zero artificial flavorings.
This product provides all
the powerful, refreshingsensation and rich flavorof regular Coca-Cola.

Demographic changes andlifestyle diversification in Japan

debut

I LOHAS Natural
Mineral Water

1993

11

Background: Key Societal Issues

Aquarius S-Body is the first beverage with the Food with Function
Claims label offered under the Aquarius brand. It contains tiliroside,a flavonoid derived from rose hips that has been reported to help
decrease body fat. It has all the great taste of original Aquariuswith zero calories.

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Please refer to the link below for details on label permissions and notifications regarding these FOSHU andFood with Function Claims beverages (in Japanese only).

https://www.cocacola.co.jp/inryoguide/lineup

CSV Priority

HealthHealthcare and Skincare BusinessFeatured
Topic

Q’SAI’s mission is to enhance value in consumers’ lives and lifestyles through thehealthcare and skincare business. Q’SAI provides kale juice and other high-quality, safe,
and trustworthy products that contribute to the achievement of consumer health andhappiness with the aim of helping consumers remain energetic, active, beautiful, andable to enjoy life.

Contributing to consumer health andhappiness with healthcare and skincare products
Although the environments in which we live will continue
to change in the years ahead, the importance ofconsidering health in everyday living will remain constant.
Q’SAI’s signature product, Kale Aojiru (kale juice),
contributes to improving consumer quality of life because
it is full of nutrients that are often missing in the modern
diet. The kale used in this product is grown with absolutely
no pesticides or chemical fertilizers. Q’SAI is committed tomaking products that people can use with peace of mind,
and applies its own rigorous management and control
systems to ensure product quality.

Main products from Q’SAI

We will continue to provide a broad range of healthcare
and skincare products to help people lead energetic andenjoyable lives at any age. These products include
Kale Aojiru to promote health, Knee-support Collagen to
help consumers walk energetically, and cola-rich collagenskincare products to make consumers look and feel young
and beautiful so they enjoy going out and socializing.

Background: Key Societal Issues

Longer lifespans andescalating health needs in JapanIn postwar Japan, cases of illness decreased dramaticallyand the average life expectancy increased substantially.
However, lifestyle diseases associated with aging haveincreased and this, together with rising medical costs, has
become a major social issue. As people continue to live
longer, it is becoming more important to maintain healthand the ability to live on one’s own, with emphasis now
being placed on not just extending the average lifespan but
on attaining a prolonged healthy life expectancy.

Rigorous quality control
Since Q’SAI makes products for people to use in their
daily lives, we make absolutely sure that consumers
can use any of our products with true peace of mind.
We strive to maintain high product quality throughstrict inspection and control.
Q’SAI Analysis and Research Center, a specialized
food product analysis institution that focuses on
residual agricultural chemicals, engages in every aspectof food product testing and analysis on behalf of major
food product companies, including testing for residual
agricultural chemicals, antibiotic substances, nutrient
levels, and foreign substances. Because it
constantly pursues improved
technologies, in December 2004
the center became the firstprivate-sector institution financed
by a food products company tobe registered as a Ministry of
Health, Labour and Welfarecertified laboratory. The center’s
policy is to provide food safety
and security in Japan and abroad
through analysis and testing.

12

CSV Priority

Environment

Aiming to Realize a “World Without Waste”
FeaturedTopic

The CCBJH Group considers empty bottles an important resource, not waste, andpromotes their collection and recycling. In recent years, the Coca-Cola system has used
its role as a beverage industry leader to engage in initiatives to help solve social issues,
such as the problem of plastic waste in oceans and rivers.

2030 Packaging Vision
In January 2018, the Coca-Cola system in Japanannounced its 2030 Packaging Vision, based on the global
initiative to realize a “World Without Waste” announced
by The Coca-Cola Company in 2018. As a member of the
Coca-Cola system, the CCBJH Group will further accelerate
its initiatives to realize the 2030 Packaging Vision.

Three core elements ofthe 2030 Packaging Vision

13

1

Whenever possible, avoid using non-renewable,
petroleum-based raw materials for PET bottles.
Promote the use of recycled PET resin or plant-based
raw materials, aiming for, on average, 50% or more ofeither in each PET bottle.

2

Help achieve even further improvements to recycling
rates and PET bottle/aluminum can collection in
Japan by collaborating with national and local
governments, the beverage industry, and local
communities to build and maintain a more robust
packaging collection and recycling scheme. Aim tocollect and recycle an amount of packaging
equivalent to the volume used for Coca-Colaproducts sold in Japan.

3Help keep communities looking beautiful throughcleanup campaigns and actively participate inawareness activities related to plastic waste in oceans
and rivers.

Collaborative initiatives with thebeverage industry and other stakeholders
CCBJI endorses the Soft Drink
Business Plastic Resource
Reclamation Declaration,
announced in November 2018 by
the Japan Soft Drink Association
with the goal of achieving the
100% effective utilization of PET
bottles by fiscal 2030, and iscooperating on initiatives withothers in the industry. For one
such initiative, as of May 2019,
CCBJI had attached approximately 100,000 industrydesigned consumer awareness stickers to vending
machine recycling bins in the Tokyo metropolitan andKeihanshin areas.

Beach cleanup in Suma
In April 2018, employees andtheir families participated in acleanup at Suma Beach as partof addressing the problem ofplastics in oceans and rivers. It
was an excellent opportunity forthe participants to learn thatbeaches are littered with trashthat has drifted ashore or been
tossed there, and to think about
this social problem as personaland closely connected to their own well-being.

Background: Key Societal Issues

Global focus on plastic waste
in oceans and rivers
Large quantities of improperly disposed plastic waste andother trash are flowing from rivers into the world’s oceans
and having an enormous impact on marine ecosystems.
PET bottles, when properly handled, are a recyclable
resource, so the CCBJH Group supports recycling initiatives
aimed at keeping the environment healthy.

Collaborating with students
Members of the Coca-Cola system are always looking toengage in various projects in cooperation with students
and private organizations. One such project is thedesign and development of recycling bins that will
increase the accuracy of sorting collected recyclables.
Before the demonstration of these new bins, we met
with Mr. Ryobun Santo from the NPO, Think the Earth.
Mr. Santo commented,“I hope that something likethis new initiative, whichbrings together corporations
and classrooms, will becomea catalyst to change theworld and contribute tostudent motivation andconfidence.”

Mr. Ryobun Santo
Nitobe Bunka Academy and
NPO Think the EarthCSV Priority

Environment

Water Resource Conservation

Background: Key Societal Issues

Since our business relies on the use of water, an indispensable natural resource,
we engage in initiatives to return to nature the volume of water equivalent to what
we use in the manufacturing of our products. In 2016, we achieved our original goalof returning to nature an amount of water equivalent to 100% of that used at ourplants (total plant amount). In 2018, we increased that amount to 277%.

FeaturedTopic

The Coca-Cola system’s water cycle

World water demand willrise significantly by 2030
Population increase and climate change in recent years has led toemerging global water risk. The Organisation for Economic
Co-operation and Development concluded in an investigative reportthat there will be a large increase in global water demand and severe
water scarcity by 2030. Water issues on this scale requireinternational cooperation and swift action to be solved.

Water usage
per liter of product ssess water sourceAvulnerability
Draft and execute water
resource conservation plans(WUR: Water Use Ratio)

3.34 L/L

Water used for
manufacturing

Plant(improved 8.33% year on year)

Reduce & Recycle

Aiming for 100% replenishment at
each plant
At each plant, we have made long-term
agreements with regional bodies, including forest
cooperatives and landowners, and are carrying out
activities to conserve water resource areas in orderto achieve a 100% replenishment rate* for thewater used in our products.

Water usedin products
Water conservationagreements with local
governments in water
resource areas

Reducewater used

Water
reuse

Proper water
treatment

Replenish

Forest preservation,
undergrowth thinning, tree planting,rice field flooding, andgrassland regeneration activities

CO2 absorbed
by forests
Increase groundwater
recharge capacity, cultivate
underground reservoirs, andreturn water to nature

Production
plantsReplenishment
rate

1

Zao Plant

1 1 7%

2

Saitama Plant

1 58 %

Production
plants9

Replenishment
rate

Kyoto Plant

28 1 %

10 Akashi Plant

Daisen Plant

1 ,01 1 %366%

12 Hongo Plant

1 ,1 25%670%

13 Komatsu Plant

400%

3

Iwatsuki Plant

4

Ibaraki Plant

5

Ebina Plant

6

Tama Plant

14 Tosu Plant

7

Hakushu Plant

15 Kiyama Plant

8

Tokai Plant

100%

Natural water resource area*	Replenishment rate (%) =11

Replenishment rate277%(+2% year on year)

In October 2018, we signed a new
agreement for forest conservation
with Saga Prefecture, Tosu, andKiyama (cities in Saga Prefecture)and the Saga Eastern Forestry
Association.

1 92%

16 Kumamoto Plant

363%

17 Ebino Plant

506%

Replenishment area (ha) × 10,000 × Precipitation (m) × Recharge
Production output (kL)

× 100

14

CSV Priority

Community

Welcoming Consumers from Overseas
FeaturedTopic

As the number of tourists and foreign residents in Japan has increased in recent years,
the CCBJH Group has been taking part in business initiatives for the development ofregional areas. We are also promoting the Olympic Movement in advance of the Olympic
Games Tokyo 2020. This currently includes measures to help international customers
conveniently purchase products they trust.

Providing multilingual POP
communication materials
We have prepared multilingual POP materials (in-store
supplementary materials) to help consumers from manynations conveniently purchase products they trust.
Coordinating with our business partners, we will offer
materials at restaurants so that consumers from overseas
can easily order and enjoy Coca-Cola products. On our
vending machines, information is also displayed in multiple
languages and, with the help of a smartphone, productinformation can be accessed in up to 15 languages.
We aim to expand the number of multilingual vending
machines by 2020.

Toward a future ofmulticultural coexistence
Given the outlook for long-term population decline inJapan, the Japanese government has strengthened
policies that support the acceptance of foreign nationals insociety. In addition, an increase in the number of foreign
visitors to Japan is expected ahead of the Rugby World
Cup 2019 and the Olympic Games Tokyo 2020. Multilingual
support on vending machines and elsewhere is necessary
to eliminate inconvenience for people whose native
language is not Japanese.

Popularization of JOC Olympic
support vending machines

Development of visitor-friendly
vending machines
Previous vending machines were not designed in a waythat took the needs of non-Japanese consumers into
consideration, even in locations with many tourists.
Accordingly, we developed a vending machine that makes
it easy for consumers from overseas to select and purchasebeverages. We installed the first such machine in Asakusa,
a historic district that attracts many overseas visitors.
These vending machines are covered in appealing,original Japanese-style art and display informationin multiple languages. The product line-up includes
Coca-Cola and Fanta, brands familiar to overseas
consumers from many countries, as well as beverage
flavors that are exclusive to Japan. Information can also beviewed on local tourist attractions by scanning a QR code,
which was added to help consumers have an even moresatisfying experience.

15

Background: Key Societal Issues

As part of providing support for athletes aspiring tocompete in the Olympic Games Tokyo 2020 and as anotherway to promote the Olympic Movement, the Coca-Colasystem members are working to install and popularize Japan
Olympic Committee (JOC) support vending machines.
A portion of the proceeds from JOC Olympic support
vending machines isdonated to assist
athletes through the
JOC. By the end of
2018, 2,068 machines
had been installed inour sales area.

CSV Priority

Community
FeaturedTopic

Energizing Communities
through Sports

Background:
Key Societal Issues

Concern over children’s
decreasing health andfitness in Japan
In a time of significant change to
how children live and form lasting
habits, opportunities for daily
physical activity, through playing
outside or sports, are decreasing,and it is said that physical fitness
and athletic ability in younger
generations is declining.
Decreased physical fitness intoday’s children could eventuallymean a decline in the fitness ofthe entire population and there isconcern regarding the effect ofthat on Japan in the future.

The CCBJH Group aims to create shared value bycontributing to the revitalization of regional economies
through business, while also staying mindful of community
issues and undertaking a wide variety of specific support
activities. In particular, we manage two corporate sports
teams, the Coca-Cola Red Sparks men’s rugby team andthe Coca-Cola Red Sparks women’s field hockey team,
who not only deliver game-day thrills to a large number of
local fans but also create opportunities for kids to be active
and improve their skills in a safe way through educational
sports clinics. Both teams are also proactive participants inlocal events as part of building vibrant communities and asociety in which everyone can live healthy and active lives.

Principal community activities in 2018

Coca-Cola

Coca-Cola

Red Sparks rugby teamRed Sparks field hockey teamHeld 12 sports clinics with a total attendance of 1,280 participants
Held 16 rugby classes with a total attendance of 2,440 participants
Participated in the Love Earth Cleanup 2018 in Fukuoka City	Held 4 sports clinics with a total attendance of 220 participants(Aichi, Kanagawa, Kyoto, and Nagasaki Prefectures)	Held 6 field hockey classes with a total attendance of 475 participants

 articipated in the FOR CHILDREN Japan Rugby Top League
Pcharity activity (Fukuoka Children’s Hospital visit)	Participated in LECT sports event (talk show, field hockey experience)(Joint event with the Hiroshima Izumi Maple Reds handball team in a shopping center)	 articipated in the 2018 Hokkaido Eastern Iburi Earthquake charityP
mochi-pounding event	Participated in the 38th Hiroshima International Peace Marathon

	Participated in the Hiroshima Zero Litter & Clean Walk Campaign

16Customer
Satisfaction

Realizing customer satisfaction
The Customer Contact Center, which
operates under the slogan “Goodcustomer contact makes everyone
happier,” is the point of contact for all
customers of the CCBJH Group. We
have put in place a system by which
the center receives opinions andrequests from customers and promptly
relays their content to regional
representatives, who can respondswiftly. The center’s Voice of Customer (VOC) section shares opinions, requests,
complaints, and other feedback received from customers within the Group to
inform initiatives aimed at improving products and services. We comply with
ISO 10002 (JIS Q 10002)*, which covers the handling of customer complaints,
throughout our customer response processes and management system.

Customer satisfaction initiatives

https://en.ccbji.co.jp/
csv/customer/

For our customers
In accordance with our corporate philosophy, THE
ROUTE, at CCBJH Group we focus on all our consumers
and customers to become their trusted partner. The
Customer Contact Center plays a central role indeveloping processes with which to meet the
expectations of our customers.

*A standard issued by the International Organization for Standardization (ISO) that provides guidance on theprocess of handling complaints related to products and service quality. ISO 10002 does not involve thirdparty certification. While any organization can self-evaluate its compliance, Coca-Cola system members inJapan declare their compliance after receiving an independent compliance audit.

Customer response process
Coca-Cola Japan

Inquiries/complaints

Customers

VOC section

Regional sales
representative

Improve/remedy products and services

Complaints

Inquiries

17%

83%

We conduct questionnaires for
consumers who have lodged
complaints, and provide surveys toevaluate the quality of our customer
response and consumers’ intention
to purchase Coca-Cola products inthe future. For many consumers
whose complaints have beenaddressed, their interest inpurchasing Coca-Cola products
remains unchanged or evenincreases according to our survey.

Consumerwillingness torepurchaseCoca-Cola
products

89%

Relevant
departments
Customerfeedback

Analysis
Investigation

Cooperation
Respond

Customer consultation by topic

CustomerContact Center

Effective response tocustomer complaints

Countermeasures/
discussion
Development/
improvement/remedy

Combines those who answered that their
desire to repurchase was unchanged, had
increased, and was unchanged plus theywould recommend the products to others
Survey method: A questionnaire via SMS text
message sent to consumers who had lodged
complaints (Survey period: March to
December 2018)

Customer Contact Center initiatives
Products &containers

9%

Machinery
Advertising& services

17

Products &containers

44%

7%

Machinery

1 4%

1%

Advertising& services

1 4%

Other

1 1%

VOC

To ensure customer satisfaction, the customer service representatives who answer
telephone calls take care to provide responses that are accurate and attuned tocustomer needs. To increase response quality, the Customer Contact Center has
introduced response quality assessment by an external organization, and eachcustomer service representative is constantly working on skills improvement.

Customerinquiry
response rate

94 %

https://en.ccbji.co.jp/
csv/assurance/

Quality assurance policy
We seek to provide all consumers with safe products
and high-quality services. This goal motivates us
throughout our operations. During the entire processfrom the procurement of materials, throughmanufacturing, logistics, transportation, sales, andservice, we work tirelessly to secure and improvecustomer-centric quality.

Basic principles for quality

1

Each of our departments is aware of its roles
and responsibilities and implements
customer-driven quality control.

2

We will perform our daily work with the top
priority on “quality.”

3

Each one of us keeps in mind and thinks
about “quality” at all times and acts toenhance our brand value.

In the Coca-Cola system, we manage operations
using KORE (Coca-Cola Operating Requirements),
our globally integrated, unique management
system, and manage product quality underrigorous standards imposed by KORE. KORE
covers a comprehensive range of standards in theareas of quality, food safety, the environment, andindustrial safety and health and is implemented ineach process from procurement of raw materials
to manufacturing, logistics and transportation, andsales, until our products are delivered toconsumers. In addition to meeting therequirements of laws and regulations, andstandards from the International Organization forStandardization (ISO), KORE includes even more
rigorous standards.*
We have a certification organization measureperformance against various requirements at least
once a year as a means of confirming the integrityof operations. Fair and honest management ofoperations within the Coca-Cola system isguaranteed by the addition of evaluation by an
external third party. We rigorously incorporate
KORE management standards in all businessprocesses for which the CCBJH Group is
responsible, and constantly strive to ensure andimprove quality from a customer-centric
perspective.
*	Concerning quality, we comply with ISO 9001; concerning foodsafety, we comply with FSSC 22000; concerning the environment,
we comply with ISO 14001; and concerning industrial safety andhealth, we comply with OHSAS 18001 (currently converting to ISO
45001). We have acquired these certifications at all our plants. We
have also acquired ISO 14001 certification at all our sales centersand offices.

KORE Quality Management System

Coca-Cola (Japan) Co., Ltd.

Quality assurance initiatives

The KORE management system
for safeguarding quality

Procurement
Raw materials are only sourced fromsuppliers certified by the Global Food
Safety Initiative (GFSI).

Beverage base preparation
Beverage bases undergo strict
quality inspection using the latest
analysis equipment (physicochemical
and microbiology testing, etc.).

Manufacturing
To deliver reliable quality, we
endeavor to ensure product safety
by striving to comply with quality
management systems and improve
our quality management technologies.

CCBJH Group

Quality
Assurance

Logistics and transportation
We ensure careful handling of the
products manufactured at our plants
so that they are delivered in excellent
condition.

Sales (retailers and vending machines)
We work to maintain merchandise
control at retailers and vending
machines to ensure that we provide
consumers with products that arealways safe, trustworthy, and fresh.

Customers
We integrate opinions, inquiries, andother feedback from customers withimprovement activities.

18

Human Rights and Employee Job Satisfaction

Roundtable Discussion:

Smart Work

The CCBJI Group is promoting “smart work,” a concept thattakes advantage of employees’ diverse work styles andincreases effectiveness and productivity, while also contributing
to employee job satisfaction. The Group is also pursuing system
reform and further implementation of information andcommunication technology (ICT). Employees from various
departments gathered to discuss how smart work is being used,current utilization issues, and future developments.

A fulfilling career as part ofa rewarding and fruitful life
Zhang: My team has been proactively making use of the
flextime system, satellite offices, and the ability to work athome in a way that fits the schedule of each member. If
team members stay at work late, then they adjust their
responsibilities and come into the office later the nextday, or when they are out of the office they may work at
a nearby sales branch during free time. Because every
project has a different workflow, it is vital to have anenvironment that promotes working remotely. Somepeople have mentioned that a change of location can berefreshing and good for motivation, which, I think, leads
to higher productivity.
Akimoto: I have a young child, so if I get an emergency
call from the pre-school, I make use of the hourly system
for annual paid leave. Using that, I can solve the issue
without taking a half day off, which is much moreconvenient. I also appreciate having childcare leave,
because all my annual paid leave used to go towardtaking care of my child, but thanks to this system I canuse some days off for myself.

Choosing a flexible
work style is the firststep. Something liketelework can improve
the productivity of an
entire department.

Coca-Cola Bottlers Japan Inc.

19

Seiya Ishii

Ariha Kawai

Makiko Akimoto

Teng Zhang

Com. & KAM BP Section
HR Business Partner
Commercial Department
HR Division
HR & General Affairs

Commercialization Section
Commercial Planning &Operation Division
Commercial

SCM Planning & Control Section
Senior Group Division
SCM Strategy Department
Strategy Management
SCM

Inbound Planning Department
Marketing Division
Commercial

We need to be realizing awork-life balance that fits
every individual. By
employing this system well,I have been able to secure
time for myself even whileraising a child.

Kawai: I have a lot of interaction with teams outside of
the main office and most of my meetings are held via
teleconferencing. As long as we are not speaking for the
first time, we do not always have to meet face to face tomake progress. And given how long it takes to travel, thisis more efficient by far. Also, when I want to just focus on
my work—I make more progress at home—I adjust myschedule to include working from home.
Ishii: Working from home can be better for some people
than others, depending on someone’s task andpersonality. But by using it well, it is definitely possible towork more effectively. It can lighten one’s physical andmental burden too, so I think it can help contribute tobetter work-life balance.

Not just a change in work style,but a new way of thinking
Zhang: I have always thought that work-style reform
really means “mindset reform.” We have to change ourway of thinking and build a structure in which we support
each other, so that we can move away from the idea thatworking overtime is the best way to show dedication.
Ishii: Even if we are very aware of smart work, theconcept will not take hold if those around us are not. Andeven if we have a good system, it will be pointless if noone uses it. I am in a position where I can support people
in sales from the HR side, but I feel that the system’s
usage differs by department.
Kawai: Sometimes it just depends on how a supervisor
thinks, right? The concept will catch on if managementtakes the lead in influencing awareness and promoting
work efficiency.
Akimoto: For those in bottling plant jobs, for example,
working from home and shorter hours are difficult
systems to implement. And while there is an increasing
number of places where women can make full use of theirtalents, the challenge is to create an environment inwhich they can advance their careers while also
becoming mothers and raising children.
Kawai: All sorts of things can occur in life. For instance,
how does someone balance caring for family members,
or just being available to look out for them, with job
responsibilities? For situations that are not covered by
the current employee support system, we need a work
environment that allows flexibility and the ability to selectwhat fits best.
Zhang: It can be hard to make changes all at once, but it
is important that reforms never stop. Public initiatives, like
"Jisa Biz,"* that connect with businesses are great too.

The ideal environment is
one in which work styles
can be chosen to fit the job
or any kind of situation
at any time.

Ishii: By listening to those in the workplace and reflecting
their opinions in the system, it will become easier forothers who use the system to voice their needs. We needmore of those kinds of examples. Because CCBJI is acompany that values people, I expect reform to progress
further and I look forward to the day when our company
is one where anyone is happy to work.
*	An initiative related to work-style reform from the Tokyo Metropolitan
Government that encourages staggered work times in order to avoid thepeak of commuter rush hour on public transit.

I look forward to the day
when our company is
one where anyone ishappy to work.

Work-style reform at the CCBJI Group
Major initiatives
CCBJI is building a better work environment, with anemphasis on shortening working hours, and has becomea special cooperative organization supporting "Telework
Days," which is sponsored by the national governmentand cooperates with the Jisa Biz initiative from the Tokyo
Metropolitan Government. We promote coming straightto or returning home from a third-party location, working
at home or at satellite offices, and using a work/breakinterval structure. We have also introduced a flextime
system, an hourly system for annual paid leave, andcompany-mandated annual days off. In addition, we areproceeding with the introduction of ICT, such as a sales
support system using tablets and smartphones, in orderto improve work efficiency and productivity.

20

CCBJH Group Profile

Corporate Profile (As of March 26, 2019)

Company name
FoundedCorporate History

Coca-Cola Bottlers Japan Holdings Inc.

April 2017

December 20, 1960
(Trade name changed to Coca-Cola Bottlers Japan Holdings Inc. on January 1, 2018)

Fiscal year end

December 31

Capital¥15,232 million

Representative

Calin Dragan, Representative Director and President

Stock market listings

Tokyo Stock Exchange (First Section)
Fukuoka Stock ExchangeGroup Structure

Coca-Cola Customer Marketing Co., Ltd.

January 2018

Coca-Cola West Co., Ltd. and Coca-Cola East Japan
Co., Ltd. concluded a share exchange agreement inwhich Coca-Cola West became a wholly owningparent company and Coca-Cola East Japan became
a wholly owned subsidiary.
Coca-Cola West Co., Ltd. changed its tradename to Coca-Cola Bottlers Japan Inc., and all of
Coca-Cola West Co., Ltd.’s businesses other than its
Group management and administration operations
and asset management operations were transferred
to a new wholly owned subsidiary named New CCW
Establishment Preparation Co., Ltd. (whose tradename was subsequently changed to Coca-Cola West
Company, Ltd.). In this way, the companies shifted toa holding company structure.
Coca-Cola West Co., Ltd. and Coca-Cola East
Japan Co., Ltd. were placed under the control of
Coca-Cola Bottlers Japan Inc.
Coca-Cola Bottlers Japan Inc. changed its tradename to Coca-Cola Bottlers Japan Holdings Inc. toclearly indicate its role as a holding company.

Coca-Cola Bottlers Japan Vending Inc.
FV Japan Co., Ltd.

Coca-Cola
Bottlers Japan
Holdings Inc.

Coca-Cola
Bottlers
Japan Inc.

Kadiac Co., Ltd.
Coca-Cola Bottlers Japan Business Services Inc.
Coca-Cola Bottlers Japan Benefit Inc.

QSAI Analysis andResearch Center Co., Ltd.
Q’SAI CO., LTD.

QSAI FARM SHIMANE Co., Ltd.
CQ Ventures Co., Ltd.

21

External Evaluations
In 2018, CCBJH was selected for inclusion in the regional department of the Dow
Jones Sustainability Index (DJSI), the DJSI Asia Pacific. The DJSI is therepresentative index for environmental, social, and governance (ESG) investments
worldwide. Each year, CCBJH responds to a climate change questionnaireadministered by the CDP, an international NGO which operates a global information
disclosure system for managing the environmental impacts by investors, companies,and cities. The CDP collects, analyzes, and then publishes information and scoringon climate change initiatives and environmental performance.

PlantTours
CCBJI offers plant tours to
help customers become morefamiliar with The Coca-Cola
Company’s products. Guides
will introduce the origin andhistory of Coca-Cola, as wellas quality control andenvironmental efforts.
You will also be able to see
the plant’s impressive
production lines.
Please come visit!

Zao Plant

Tama Plant

Tokai Plant

1-1 Minamikawazoe, Miya, Zao-machi,
Katta-gun, Miyagi

1-2-9 Nobidome, Higashi-Kurume,Tokyo

Tel. 0224-32-3505

Tel. 042-471-0463

Tel. 052-602-0413

Open: Monday through Friday andoccasionally Saturday, including holidays(excluding certain holidays)

Open: Monday through Friday andoccasionally Saturday, including holidays(excluding certain holidays)

Open: Monday through Friday andoccasionally Saturday, including holidays(excluding certain holidays)

Kyoto Plant

Ebino Plant

128 Tai Shinarami, Kumiyama-cho,Kuse-gun, Kyoto

1321-1 Aridome, Higashikawakita,
Ebino, Miyazaki

Tel. 0774-43-5522

Tel. 0984-25-4211

Open: Tuesday through Sunday, andMonday if it is a holiday(excluding certain holidays)

Open: Tuesday through Sunday, andMonday if it is a holiday(excluding certain holidays)

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266-18 Tonowari, Minamishibata-machi,
Tokai, Aichi

For more information on reservations,please check our website.

https://en.ccbji.co.jp/plant/
22

Coca-Cola Bottlers Japan Holdings Inc.
Tokyo Midtown Tower, 9-7-1 Akasaka,
Minato-ku, Tokyo 107-6211

For inquiries:
Please use the “Inquiries” formon the Coca-Cola Bottlers Japan Holdings Inc. website.

https://en.ccbj-holdings.com/inquiry/©2019 Coca-Cola Bottlers Japan Holdings Inc. All Rights Reserved.

CSV Report 2019 survey
This survey is to aid in the development of our future CSV initiatives and our next CSV
Report. Please let us know your thoughts and opinions. The feedback you give us willplay a role in improving our CSV activities and disclosures.

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ec

Ch

Please access the survey via the URL below or the QR code.

https://form.ccbji.co.jp/form/csv2019_en