This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Quarterly Report（Article 24-4-7, Paragraph 1 of the Financial Instruments andExchange Act）
Fiscal Year
From July 1, 2023
（The 3rd Quarter of the 66th Term）
To September 30, 2023

Coca-Cola Bottlers Japan Holdings Inc.

（E00417)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Table of Contents[Cover Page]
Part I Corporate information ..................................................................................................................................................................... 1
Section 1. Corporate overview .............................................................................................................................................................. 1
1. Changes in key management indicators......................................................................................................................................... 1
2. Business content ............................................................................................................................................................................ 1
Section 2. Business situations................................................................................................................................................................ 2
1. Risk of business ............................................................................................................................................................................. 2
2. Management's analysis of financial condition, results of operations and cash flows ..................................................................... 2
3. Significant management contracts ................................................................................................................................................. 7
Section 3. Status of the filing company ................................................................................................................................................. 8
1. Status of Shares ............................................................................................................................................................................. 8
2. Status of Officers ........................................................................................................................................................................... 9
Section 4 Accounting status................................................................................................................................................................. 10
1. Condensed Quarterly Consolidated Financial Statements and Notes .......................................................................................... 11
2. Others .......................................................................................................................................................................................... 26
Part II Information of guarantor companies of the filing company ......................................................................................................... 27

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Cover Page】[Documents to be submitted]

Quarterly Report[Underlying article]

Article 24-4-7, Paragraph 1 of the Financial Instruments and Exchange Act[Recipient]

Director-General of the Kanto Local Finance Bureau[Submission date]November 10, 2023

[Quarterly accounting period]

66th fiscal term (from July 1, 2023 to September 30, 2023)[Company name]Coca-Cola Bottlers Japan Holdings Inc.

[Name and position of representative]

Calin Dragan, Representative Director & President[Address of head office]9-7-1 Akasaka, Minato-ku, Tokyo[Telephone number]+81-800-919-0509[Name of administrative contact]

Tatsuhiro Ishikawa, Head of Controllers Senior Group Division, Finance[Closest contact point]

9-7-1 Akasaka, Minato-ku, Tokyo[Telephone number]+81-800-919-0509[Name of administrative contact]

Tatsuhiro Ishikawa, Head of Controllers Senior Group Division, Finance[Location provided for viewing]

Tokyo Stock Exchange, Inc.
（2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo）

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments andExchange Act of Japan. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki
Hokokusho shall prevail.
For the purpose of this Quarterly Report, unless context indicates otherwise, the “Company,” “we,” and “CCBJH” refer to Coca-Cola
Bottlers Japan Holdings Inc., and the “Group” refers to the Company and its subsidiaries.

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part I Corporate information
Section 1. Corporate overview
1. Changes in key management indicators
Issuance

The 65th Term
Consolidated
Cumulative
Third Quarter

The 66th Term
Consolidated
Cumulative
Third Quarter

The 65th Term

Accounting period

From
January 1, 2022
toSeptember 30, 2022

From
January 1, 2023
toSeptember 30,2023

FromJanuary 1, 2022
toDecember 31, 2022

Revenue[The third quarter](Millions of yen)612,321[236,373]

663,825[259,715]

807,430

Net income (loss) for the period before income
taxes
Net income (loss) for the period attributable toowners of the parent[The third quarter]
Comprehensive income attributable to ownersof the parent(Millions of yen)

(7,947)

5,947(12,491)(Millions of yen)

(5,194)[4,705]

3,862[7,808](8,070)(Millions of yen)

(3,150)

5,057(5,005)Equity attributable to owners of the parent(Millions of yen)

478,559

472,485476,216

Total assets(Millions of yen)

831,736

845,609826,737

Basic income (loss) per share[The third quarter](Yen)(28.96)[26.24]21.53[43.52](45.00)

Diluted earnings per share

(Yen)

－

21.38

－

Ratio of equity attributable to owners of theparent to total assets

(%)

57.5

55.9

57.6

Cash flows from operating activities(Millions of yen)

32,65130,291

42,717

Cash flows from investing activities(Millions of yen)

(18,514)(17,741)(23,090)

Cash flows from financing activities(Millions of yen)

(44,642)(13,876)(46,050)

Cash and cash equivalents at the end of theperiod(Millions of yen)

79,99182,74884,074

Notes: 1. Because the Company prepares condensed quarterly consolidated financial statements, changes in the key management indicators for the filingcompany are not described.
2. Diluted earnings per share is not presented, as the effects of dilutive share on earnings per share are anti-dilutive for the cumulative third quarter ofprevious fiscal year and previous fiscal year.
3. The above indicators are based on the condensed quarterly consolidated financial statements and consolidated financial statements prepared inaccordance with International Financial Reporting Standards (“IFRS”).
4. Fractions of one million yen are rounded to the nearest million.
5. The Company has introduced Executive reward BIP Trust and Stock-granting ESOP Trust, and the Company shares held by these trusts are recorded
as treasury shares in the quarterly consolidated financial statements. Accordingly, the Company shares held by these trusts are included in the number oftreasury shares to be deducted from the average number of shares during the period for the calculation of basic income (loss) per share and diluted
earnings per share.

2. Business content
There were no significant changes in the businesses that the Group (the Company and its subsidiaries) is engaged in the
cumulative third quarter (January 1, to September 30, 2023).

－1－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 2. Business situations
1. Risk of business
During the cumulative third quarter of the current fiscal year, there were no new business risks or significant changes in thebusiness risks that were described in the Annual Securities Report for the previous fiscal year.
The company continues to monitor our operational environment for new risks and opportunities and will proactively work to
mitigate risks and leverage opportunities.

2. Management's analysis of financial condition, results of operations and cash flows
Note that matters related to future developments that are mentioned in this section are judgments of the Group that were madeas of the date of quarterly securities report submission.
(1) Status of Business Performance
In the cumulative third quarter, the total domestic nonalcoholic ready-to-drink (NARTD) beverage industry volume is estimatedto have grown by about 1% versus the same period of the previous fiscal year.
Although demand continued to increase on the back of a recovery in traffic, resumption of economic activity and the heat wave,
the price revisions implemented by beverage companies had an negative impact on demand. The business environment remained
uncertain as the rising commodity, utility prices and yen's depreciation impacted business and consumer behavior.
Under these circumstances, we have positioned 2023 as the “Year of profit focus”, and we have given top priority to improving
profitability. In commercial activities, we implemented price revisions as one of the most important initiatives for profitability
improvement with a focus on steady implementation and maintaining the shipping prices after the price revisions. Even during
the summer season, when demand is at its peak, we have been thoroughly implementing disciplined commercial activities tomaximize the effects of our efforts. Furthermore, we have been preparing for the price revisions of large PET bottle products andother products from October, including negotiations with our customers. In addition, to capture the increased demand from therecovery in traffic and the heat wave, we have worked to grow revenue by growing sales volume and improving wholesalerevenue per case by introducing new products, implementing efficient and effective marketing activities, and strengthening
customer engagement. In the manufacturing and supply chain fields, while faced with rising commodity, utility prices, and yen's
depreciation, to capture the opportunity of increased demand for sales volume and profit growth, we have been working on thestable operation of the Sales and Operations Planning (S&OP) process, which was revamped in the previous year, andimprovement of the supply network to ensure stable supply of products and reduction of total manufacturing and logistics costs.
We are working to realize ESG targets based on creating shared value with society. We have launched several collaborative
initiatives with our customers and government agencies with respect to the conservation of water resources and enhancement of
PET bottle recycling to reduce the environmental impact through fostering a recycling-based society and to expand business
opportunities through collaboration. In addition, as a contribution to the local community through business activities, we havebeen focusing on the deployment of vending machines that support local activities. Furthermore, during the third quarter of thecurrent fiscal year (July 1, 2023 to September 30, 2023, hereafter "the third quarter"), we received a "Silver" rating in the globally
recognized EcoVadis sustainability survey for the third consecutive year.
Details for the cumulative third quarter are as follows.

－2－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Summary of Business Performance

The cumulative third quarter (January 1 to September 30)(Millions of yen except sales volume)
2022

2023

612,321366
267,317
278,322694
942
57(11,196)
7,438
3,295
(7,053)(5,194)

Revenue
Sales volume (million cases)
Gross profit
Selling, General & Administrative Expenses
Other income (Recurring)
Other expenses (Recurring)
Investment income on equity method
Business income (loss)
Other income (Non-recurring)
Other expenses (Non-recurring)Operating income (loss)
Net income (loss) attributable to owners of parent

663,825379
294,595
287,961
534
1,302
1
5,867
2,177
1,923
6,121
3,862

Change
(%)
8.4
4
10.2
3.5
(23.0)
38.2(98.7)－(70.7)(41.6)－－(For reference) The third quarter (July 1 to September 30)(Millions of yen except sales volume)2022
236,373142
104,179
97,047
173
276
(4)
7,025
780
426
7,379
4,705

Revenue
Sales volume (million cases)
Gross profit
Selling, General & Administrative Expenses
Other income (Recurring)
Other expenses (Recurring)
Investment income(loss) on equity method
Business income
Other income (Non-recurring)
Other expenses (Non-recurring)Operating income
Net income attributable to owners of parent

2023
259,715
149
117,799
104,748170
591
1
12,630519
499
12,6507,808

Change
(%)
9.9
5
13.1
7.9
(1.9)
114.2
－
79.8
(33.5)
17.1
71.4
65.9

Notes: 1. “Business income(loss)” is measure of our recurring business performance. “Business income (loss)” deduct cost of sales and selling,
general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.
2. Sales volume in 2022 is revised retroactively due to changes of counting segmentation and scope in some products.

－3－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Consolidated revenue was 663,825 million yen (an increase of 51,504 million yen or 8.4% from the same period in theprevious year). Despite the negative impact on volume following the price revisions, sales volume increased by 4% comparedto the same period in the previous year. This was achieved with the introduction of new products, effective marketing activities
to capture the demand opportunity from traffic recovery and the heat wave, while strengthening customer engagement. The
series of price revisions implemented from the previous fiscal year are steadily delivering benefits with wholesale revenue percase improving and contributing to revenue growth.
Consolidated business income improved by 17,063 million yen and was 5,867 million yen (11,196 million yen loss in prioryear period). In addition to profit contributions from top-line growth, from sales volume growth and wholesale revue per caseimprovement, a decrease in marketing expense through the focus on cost-effectiveness and lower logistics costs with the
improvements in the supply chain network contributed. Profitability improvement was achieved while overcoming the impact
of cost increases due to external factors such as higher commodity, utility prices and yen depreciation.
Consolidated operating income improved by 13,174 million yen and was 6,121 million yen (7,053 million yen loss in prioryear period). In addition to business income growing versus the previous year being the primary reason, there was a cycling
impact of gains from sales of property, plant, and equipment that was recorded in the same period of the previous year which
decreased other income (non-recurring). Other income (non-recurring) in the cumulative third quarter includes 2,150 million
yen in gain on sales of property, plant, and equipment, which was realized in the process of balance sheet optimization. Other
expenses (non-recurring) include 1,641 million yen in transformation related expenses related to the implementation of
fundamental transformation.
Net income attributable to owners of the parent improved by 9,055 million yen with operating income growing from theprevious period, it was 3,862 million yen (5,194 million yen loss in prior year period).
Sales volume trends (% change from same period of previous year)
Sales volume grew by 4% in the cumulative third quarter. Particularly, for the third quarter, the benefits of our efforts to datehave greatly materialized on the back of traffic recovery and the heat wave during the peak demand season, resulting in a 5%
volume increase and pushed up the cumulative volume. As the benefit from the price revisions, wholesale revenue per caseimproved by more than double digits versus the same period previous year in all channels.
By channel, supermarkets were impacted by the small PET bottle price revisions implemented in October of the previous year
and sales volume declined by 2% for the cumulative third quarter, despite the introduction of new products, activities to expand
the sales space and campaigns to capture demand from the traffic recovery and the heat wave. For the third quarter, marketing
efforts during the peak demand season compensated for the volume decline impact from the price revisions, resulting in volume
being flat from the same period of the previous year. Sales volume at drugstores and discounters increased by 5%, with thevolume of large PET bottle products turning positive versus the same period in the previous year, despite the continued impact
from the price revisions. Vending sales volume remained flat, supported by the market share base we have built to date and by
campaigns implemented through the Coke ON smartphone app contributing to capture the traffic recovery and the heat wave
demand, while the price revision of small PET bottle and can products continued to impact volume. Wholesale revenue per casein vending improved greatly from last year with the price revisions. In CVS, although the competitive environment remained
severe, volume increased by 13% in the third quarter and 4% for cumulative period with the positive effects of activities to growsales space, expanding the adoption of our core products at key customer stores, strengthening customer management, and the
tailwind from the heat wave. In retail & food, sales volume increased by 11% with the traffic returning to restaurants andamusement facilities. In online, volume grew by 11% despite intensifying competitive environment, with contribution from astrengthened product lineup and tie-up promotions implemented together with major online customers.
By beverage category performance, sparkling sales volume grew by 4%, with volume growth centered around Coca-Cola atvending and restaurants with the recovery in traffic, and contributions from product renewals such as Sprite. Sales volume oftea products was flat due to impact from the price revisions for small PET, despite the contributions from Yakan no Mugichafrom Sokenbicha which continues to enjoy sales growth since its launch and from the heat wave driving demand. Coffee sales
volume increased by 2%, supported by the new Georgia THE Black, launched together with the Georgia rebranding, and medium
PET bottle products capturing the at-home demand, despite the volume being impacted from the price revisions. In Sport, sales
volume decreased by 4% due to the price revision impact, despite the contribution from the new product Aquarius NEWATER.
Water sales volume grew by 16% with demand driven by the heat wave and contributions from the I LOHAS Natural Water that
renewed the bottle design in the previous year and I LOHAS Peach.
In the alcohol category, sales volume declined by 15% due to cycling of at-home drinking demand, despite the contributions
from new products such as Jack Daniel's & Coca-Cola and Lemon-dou Sukkiri Lemon.

－4－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(2) Qualitative Information on Consolidated Financial Position
Assets at the end of the quarter were 845,609million yen, an increase of 18,872 million yen from the end of the previous fiscal
year. This is mainly due to a decrease in “Property, plant, and equipment” through the progress made in balance sheet
optimization, while an increase in “Trade and other receivables” because of the peak demand season.
Liabilities at the end of the quarter were 372,953 million yen, an increase of 22,575million yen from the end of the previous
fiscal year. This is mainly due to an increase in “Trade and other payables.”Equity at the end of the quarter was 472,656 million yen, a decrease of 3,703 million yen. This mainly reflects a decrease in“Retained earnings” due to dividend payments, while net income for the period was recorded.
(3) Qualitative Information on Consolidated Statements of Cash Flow
The cash flow conditions for cumulative third quarter of the current fiscal year are as follows:<Cash Flows from Operating Activities >Net cash generated from operating activities was 30,291million yen (32,651 million yen generated from operating activities
in the previous fiscal year). This is mainly due to an income before income taxes of 5,947 million yen, “Depreciation andamortization” and an “Increase in trade and other payables,” while an “Increase in trade and other receivables” were recorded.
<Cash Flows from Investing Activities>
Net cash used for investing activities was 17,741million yen (18,514million yen used for investment activities in the previous
fiscal year). This is mainly due to “Payments for acquisitions of property, plant, and equipment and intangible assets,” while“Proceeds from sales of property, plant and equipment and intangible assets” and “Proceeds from sale of other financial assets”
through the progress made in balance sheet optimization were recorded.
<Cash Flows from Financing Activities>
Net cash used for financing activities was13,876 million yen (44,642million yen used for financing activities in the previous
fiscal year). This is mainly due to “Dividends paid.”
As a result of these activities, cash and cash equivalents at the end of the third quarter were 82,748 million yen, a decreaseof 1,326 million yen compared to the end of the previous fiscal year.
(4) Business and financial challenges to be addressed
1. Issues to be addressed
There were no significant changes in the issues to be addressed by the Group during the cumulative third quarter of the current
fiscal year.

－5－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

2. Basic Policies on the Control of the Joint-share Company
a. Descriptions of basic policies
The Company believes that the persons and/or entities (hereinafter referred as “Persons”) who control decisions on the
Company’s financial and business policies need to understand the source of the Company’s corporate value and will make itpossible to continually and persistently ensure and enhance the Company’s corporate value and, in turn, the common interestsof its shareholders. The Company believes that a decision on any proposed acquisition that would involve a change of corporate
control of the Company should ultimately be made based on the intent of its shareholders as a whole. Also, the Company
would not reject a large-scale acquisition of the shares in the Company if it would contribute to the corporate value of theCompany and, in turn, the common interests of its shareholders.
However, there are some forms of large-scale acquisition of shares that benefit neither the corporate value of the target
company nor the common interests of its shareholders: those with a purpose that would obviously harm the corporate value ofthe target company and, in turn, the common interests of its shareholders; those with the potential to substantially coerce
shareholders into selling their shares; those that do not provide sufficient time or information for the target company’s boardof directors and shareholders to consider the terms of the large-scale acquisition of shares, or for the target company’s boardof directors to present a business plan or an alternative proposal; and those that require the target company to discuss ornegotiate with the acquirer in order to procure more favorable terms for shareholders than those presented by the acquirer.
The Company believes that the Persons who control decisions on the Company’s financial and business policies need to be
Persons who (i) fully understand the importance of providing freshness and refreshment to people around the world andembedding the Coca-Cola brand, which is now a part of our life style, in local communities; (ii) strive aggressively to win in
the market as the customers’ preferred partner with a deep understanding of the Company’s corporate philosophy; (iii)appreciate employees who have a strong sense of responsibility to thoroughly pursue customer satisfaction, and proactively
working on building a workplace environment that can make each and every employee feel rewarded, motivated and proud of
being a member of the Coca-Cola family; and (iv) contribute to local communities and proactively dealing with environmental
issues with a strong sense of responsibility as a corporate citizen that continues to strive to assist in the realization of an affluent
society, preserve relationships of mutual trust with customers, business partners, shareholders and employees and perform totheir expectations, and make it possible to continually and persistently ensure and enhance the Company’s corporate value
and, in turn, the common interests of its shareholders from a mid- to long-term perspective.
Therefore, the Company believes that Persons who would make a large-scale acquisition of the shares in the Company in amanner that does not contribute to the corporate value of the Company and, in turn, the common interests of its shareholders
would be inappropriate to become Persons who would control decisions on the Company’s financial and business policies. We
must secure the Company’s corporate value and, in turn, the common interests of its shareholders by taking necessary andreasonable countermeasures against a large-scale acquisition of the Company’s shares by such Persons.
b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming the Coca-Cola business in Japan by deploying various joint
initiatives such as product development and test marketing with The Coca-Cola Company and Coca-Cola (Japan) Company,
Limited (100% subsidiary of The Coca-Cola Company) as a strategic partner, but also strives to become a company trusted
by the stakeholder groups of consumers, customers, shareholders and employees.
Soft drink industry volume growth in Japan is expected to be muted, given the developed nature of the market as a whole.
The business environment surrounding the Company is projected to become even more intense with further acceleration of
the industry’s restructuring for survival, such as the expansion of business tie-ups between beverage manufacturers.
Under such circumstances, the Group aims at becoming the preferred partner of our customers and consumers in all
drinking occasions by establishing a robust and sustainable operating model, pursuing success in high-priority areas, anddrastically transforming the business to ensure growth.
The Company also made a transition to a company with an Audit and Supervisory Committee in order to further reinforce
the governance system. The Audit and Supervisory Committee serves as the auditing body of the Company that is comprised
exclusively of external directors, including multiple independent external directors. To strengthen the management oversightfunction, these external directors that serve as members of the Audit and Supervisory Committee have each been granted
voting rights in Board of Director meetings, in addition to the right to state their opinions in shareholders’ meetings on
matters pertaining to the designation of board members and their remuneration, among others. In order to separate thedecision-making, business management and business execution functions, the Company is implementing a corporate
executive officer system. In addition to the foregoing, for more productive discussions on highly important matters in the
Board of Directors meetings, the Company is delegating the authority to make decisions on certain important matters that
require prompt business executions to specific directors as well as facilitating speedy decision making of other matters.
－6－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(b) Outline of measures to prevent inappropriate persons from controlling the finance and business policy decisions of theCompany in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives to proactively collect and timely disclose
information in order to ensure and improve the corporate value of the Company and the common interest of shareholders
as well as make appropriate measures as needed under the scope permitted by laws and regulations and the Articles ofIncorporation.
When a Board Meeting determines it necessary to reapply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into consideration of the future trend of
the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the Articles ofIncorporation for decision of the implementation.
c. Decisions of the Board of Directors of the Company on the specific measures and the reasons
The measure described in the previous b. (a) was introduced as a specific measure to continuously and sustainably
improve the corporate value of the Company and the common interest of shareholders and is consistent with the Company’s
basic policy.
In addition, the measure described in the previous b. (b) was introduced as a specific measure to ensure and improve thecorporate value of the Company and the common interest of shareholders as needed under the scope permitted by laws andregulations and the Articles of Incorporation focusing on the intention of shareholders, and it is not intended to undermine
the shareholders’ common interests and preserve the positions of the Company officers.
(5) Research and development activities
Not applicable.
(6) Major facilities
The new installation of the important facilities that had been planned as of the end of the previous fiscal year and completed
during the cumulative third quarter of the current fiscal year is as listed below.

Name of company
Coca-Cola Bottlers
Japan Inc.

Name of office / site (location) Name of business segment
Branches / (-)

Beverage business

Facility description
Vending machines/coolers

Amount(millions of yen)
12,622Completed in
September 2023

Note: Consumption tax is not included in the above amounts.

3. Significant management contracts
There were no decisions or conclusions for significant management contracts in the third quarter of the current fiscal year.

－7－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 3. Status of the filing company
1. Status of Shares(1) Total number of shares① Total number of shares
Class

Total Number of Authorized Shares

Common shares

500,000,000

Total

500,000,000② Issued sharesClass

No. of issued shares as of endof 3rd Quarter（September 30,2023）

No. of issued shares as offiling date（November 10, 2023）

Name of listed shareexchange or registeredauthorized financial
instruments firms`
association

Details

Commonshares206,268,593

206,268,593

Tokyo Stock Exchange（Prime Market）

100 per unit shares

Total

206,268,593

206,268,593--(2) Status of stock acquisition rights① Status of share options
Not applicable.
② Other share acquisition rights
Not applicable.
(3) Status of exercised moving strike convertible bonds
Not applicable.
(4) Transition of total number of issued shares and capital stock

Date

July 1, 2023 –September 30,
2023

Increase/decreas
e in total no. of
issued shares(Thousandshare)－

Balance of total Increase/ decrease
Capital stock
no. of issuedof capital stockbalanceshares(Millions of(Millions of yen)(Thousand share)yen)
206,269－－8－

15,232

Increase/decreas
e of capitalreserve(Millions ofyen)

Capital reservebalance(Millions ofyen)－

108,167

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(5) Major shareholder status
Not applicable as this is the third quarter of the current fiscal year.
(6) Status of voting rights① Issued shares
As of September 30,2023
Class

Number of shares

Number of voting rights

Details

Non-voting shares

－

－

－

Shares with restricted voting right (Treasury
Shares)－－－Shares with restricted voting right (Others)

－

－

－

－

－

Shares with full voting rights (Treasury
Shares)Common shares 23,783,300

Shares with full voting rights (Others)

Common shares 181,735,100

Odd lot shares

Common shares

Total number of issued shares

1,817,351

750,193－－

206,268,593

－

－

－

Voting rights of all shareholders－

1,817,351－

Notes: 1.“Shares with full voting rights (Others)” include 2,300 shares under in JASDEC’s name (23 voting rights).
2.“Shares with full voting rights (Others)” include 1,260,900 shares (number of voting rights: 12,609) held by Executive reward BIP Trust and 1,791,900
shares (number of voting rights: 17,919) held by Stock-granting ESOP Trust.

② Treasury Shares
As of September 30,2023
Name of owner
Coca-Cola
Bottlers Japan
Holdings Inc.

Address of owner

No. of shares
owned under
own nameNo. of shares
owned underothers’ name

Total number ofshares owned

Ratio of shares owned
against total no. of
issued shares (%)

9-7-1, Akasaka, Minato-ku,
Tokyo23,783,300－

23,783,300

11.53

－

23,783,300－

23,783,300

11.53

Total

Note: The Company shares held by Executive reward BIP Trust and Stock-granting ESOP Trust are not included in the above number of shares owned.

2. Status of Officers
Not applicable.

－9－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 4 Accounting status
1. Preparation of Accounting methods for the quarterly consolidated financial statements
The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 “Interim Financial Reporting” based on the Ordinance on the Terminology, Forms, and Preparation
Methods of Quarterly Consolidated Financial Statements Article 93 (Cabinet Office Ordinance No. 64 of 2007).

2. Audit certification
The Company’s condensed quarterly consolidated financial statements for the third quarter of the current fiscal year (July 1,
2023 to September 30, 2023) and the cumulative third quarter of the current fiscal year (January 1, 2023 to September 30, 2023)
have been reviewed by Ernst & Young ShinNihon LLC based on the provisions of Article 193-2 Paragraph 1 of the Financial
Instruments and Exchange Act.

－10－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

1. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Statement of Financial Position(Millions of yen)
Notes

AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets:
Property, plant, and equipment
Right-of-use assets
Intangible assets
Investments accounted for using the equity
methodOther financial assets
Deferred tax assets
Other non-current assets

10

10

Total non-current assets
Total assets－11－

Previous fiscal year
As of
December 31, 2022

The cumulative third quarter
As of
September 30,2023

84,074
103,346
71,051
542
13,10882,748136,261
72,816736
10,692

272,122

303,253

425,009
21,841
65,865413,911
22,38164,137322

317

15,88820,581
5,110

14,737
21,947
4,924

554,615826,737

542,356
845,609

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Previous fiscal year
As of
December 31, 2022

(Millions of yen)
The cumulative third quarter
As of
September 30,2023

Liabilities and equity
Liabilities
Current liabilities:
108,254
1,000
5,122
654
1,272
20,339122,828
40,972
5,080
810
1,958
26,272

136,641

197,920

155,701
18,146
8
17,817
1,761
17,157
3,147
213,737

114,789
18,994115
19,351
1,753
16,836
3,194
175,033

Total liabilities

350,378

372,953

Equity:Capital stock
Capital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive income

15,232451,264
94,209(85,667)
1,177

15,232451,405
89,874(85,369)
1,343

476,216142
476,358

472,485170
472,656

826,737

845,609

Trade and other payables
Bonds and debts
Lease liabilities
Other financial liabilities
Income taxes payables
Other current liabilities
Total current liabilities
Non-current liabilities:
Bonds and debts
Lease liabilities
Other financial liabilities
Net defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

6,10
10

10
10

7

Equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity－12－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(2) Condensed Quarterly Consolidated Statements of Income【The cumulative third quarter】(Millions of yen)
Notes

Revenue
Cost of sales
Gross profit
Selling and general administrative expenses
Other income
Other expenses
Investment income on equity method
Operating income (loss)
Financial income
Financial expenses
Income (Loss) for the period before income taxes
Income tax expense (benefit)
Net income (loss) for the period899The cumulative third quarter ofprevious fiscal year
(Nine months ended
September 30, 2022)
612,321345,004
267,317
278,322
8,132
4,237
57
(7,053)
179
1,073(7,947)(2,756)(5,191)

The cumulative third quarter ofcurrent fiscal year
(Nine months ended
September 30, 2023)
663,825
369,229294,595
287,961
2,711
3,225
1
6,121
361
535
5,947
2,057
3,890

(5,194)
3

3,862
28

(28.96)
－

21.53
21.38

The third quarter ofprevious fiscal year
(Three months ended
September 30, 2022)
236,373
132,194
104,179
97,047
953
702
(4)
7,379
17
221
7,174
2,468
4,706

The third quarter ofcurrent fiscal year
(Three months ended
September 30, 2023)
259,715
141,917
117,799
104,748689
1,090
112,65084
207
12,527
4,705
7,822

4,705
0

7,808
14

26.24
26.13

43.52
43.23

Net income (loss) for the period attributable to
Owners of parent
Non-controlling interests
Earnings (Loss) per share (yen)Diluted Earnings per share (yen)1111【The third quarter】(Millions of yen)
Notes

Revenue
Cost of sales
Gross profit
Selling and general administrative expenses
Other income
Other expenses
Investment income (loss) on equity method
Operating income
Financial income
Financial expenses
Income for the period before income taxes
Income tax expense
Net income for the period
Net income for the period attributable to
Owners of parent
Non-controlling interests
Earnings per share (yen)Diluted earnings per share (yen)

11
11

－13－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Condensed Quarterly Consolidated Statements of Comprehensive Income【The cumulative third quarter】(Millions of yen)

Notes
Net income (loss) for the period
Other comprehensive income
Items that will not be reclassified subsequently to income orloss:
Net changes in financial assets measured at fair value throughother comprehensive income

The cumulative third quarter ofprevious fiscal year
(Nine months ended
September 30, 2022)(5,191)

The cumulative third quarter ofcurrent fiscal year
(Nine months ended
September 30, 2023)
3,890

329

1,155

329

1,155

Subtotal
Total other comprehensive income for the period
Total comprehensive income for the period

1,715
1,715
2,044
(3,147)

40
40
1,195
5,085

Comprehensive income attributable to:
Owners of parent
Non-controlling interests(3,150)
3

5,057
28

Subtotal
Items that may be reclassified subsequently to income:Cash flow hedges【The third quarter】(Millions of yen)

Notes

The third quarter ofprevious fiscal year
(Three months ended
September 30, 2022)

The third quarter ofcurrent fiscal year
(Three months ended
September 30, 2023)

Net income for the period
Other comprehensive income
Items that will not be reclassified subsequently to income orloss:
Net changes in financial assets measured at fair value throughother comprehensive income

4,706

7,822

108

235

Subtotal

108

235

Subtotal
Total other comprehensive income for the period
Total comprehensive income for the period

217
217
325
5,030

(119)
(119)
116
7,938

Comprehensive income attributable to:
Owners of parent
Non-controlling interests

5,030
0

7,924
14

Items that may be reclassified subsequently to income:Cash flow hedges－14－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(4) Condensed Quarterly Consolidated Statements of Changes in Equity
The cumulative third quarter of previous fiscal year (Nine months ended September 30, 2022)(Millions of yen)
Equity attributable to owners of the parent

Notes
Balance as of January 1, 2022

Capitalshare

CapitalsurplusRetainedearnings

Treasuryshares

Accumulated othercomprehensive
incomeNoncontrollinginterests

15,232450,832

109,273(85,661)2,644

492,320131

492,451－－(5,194)－－(5,194)

3(5,191)

－

－

－

－

2,044

2,044

－

2,044

－

－

(5,194)－

2,044(3,150)3(3,147)－－(8,967)－－(8,967)－(8,967)

－

－

－

(4)

－

(4)

－

(4)

－

(0)

－

0

－

0

－

0

－

371

－

－

－

371

－

371

－

－

(5)

－

5

－

－

－

－

－

－

－

(2,010)(2,010)－(2,010)－371(8,972)(4)(2,005)(10,611)－(10,611)

15,232451,203

95,107(85,665)2,683

478,559134

478,694

Total

Total

Comprehensive income for the period
Net income (loss) for the period
Other comprehensive income
Total comprehensive income for the period
Transactions with owners
Dividends of surplus

7

Purchase of treasury shares
Disposal of treasury shares
Transactions of share-based payment
Reclassification from accumulated othercomprehensive income to retained earnings
Reclassification from accumulated othercomprehensive income to non-financial
assetsTotal transactions with owners
Balance as of September 30, 2022

The cumulative third quarter of current fiscal year (Nine months ended September 30, 2023)(Millions of yen)
Equity attributable to owners of the parent

Notes
Balance as of January 1, 2023

CapitalsurplusRetainedearnings

Treasuryshares

Accumulated othercomprehensive
income15,232451,264

94,209(85,667)

1,177

476,216142

476,358

－

－

3,862

－

－

3,862

28

3,890

－

－

－

－

1,195

1,195

－

1,195

－

－

3,862

－

1,195

5,057

28

5,085

－

－

(9,046)－－(9,046)－(9,046)

－

－

－

(4)

－

(4)

－

(4)

－

(140)

－

301

－

161

－

161

－

281

－

－

－

281

－

281

－

－

849

－

(849)

－

－

－

－

－

－

－

(180)

(180)

－

(180)

－

141

(8,197)298(1,029)(8,787)－(8,787)

15,232451,405

89,874(85,369)

1,343

472,485170

472,656

Capitalshare

Noncontrollinginterests

Total

Total

Comprehensive income for the period
Net income for the period
Other comprehensive income
Total comprehensive income for the period
Transactions with owners
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares
Transactions of share-based payment
Reclassification from accumulated othercomprehensive income to retained earnings
Reclassification from accumulated othercomprehensive income to non-financial
assetsTotal transactions with owners
Balance as of September 30, 2023

7

－15－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(5) Condensed Quarterly Consolidated Statements of Cash Flows(Millions of yen)
Notes

The cumulative third quarter of previous
fiscal year
(Nine months ended
September 30, 2022)

The cumulative third quarter of current
fiscal year
(Nine months ended
September 30, 2023)

Cash flows from operating activities
Income (Loss) for the period before income taxes(7,947)

5,947

Adjustments for:
Depreciation and amortization

34,25034,826－

159

Impairment loss
Change in allowance for doubtful accounts(decrease)
Interest and dividends income

(168)

4

(159)

(134)

591

490

Interest expenses
Share of income of entities accounted for using
equity method
Gain on sale of property, plant, and equipment
Loss on disposal and sale of property, plant, andequipment, and intangible assets(Increase) Decrease in trade and other receivables

(57)

(1)

(4,075)(2,168)

665

959

1,509

(32,943)

Increase in inventories(5,881)(1,765)(Increase) Decrease in other assets

(335)

248

Increase in trade and other payables

7,287

17,839

Increase in net defined benefit liabilities

1,890

1,535

Increase in other liabilities

5,072

6,420

Others

1,062

898

33,70432,31400SubtotalInterest received
Dividends received

158

134

Interest paid

(593)

(505)

Income taxes paid

(4,806)(3,616)

Income taxes refund

4,187

1,963

Net cash generated from operating activities

32,65130,291(23,745)(25,588)

5,183

4,399

Cash flows from investing activities
Payments for acquisitions of property, plant andequipment and intangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Payments for purchases of other financial assets

(17)

(15)

Proceeds from sale of other financial assets

38

3,455

OthersNet cash used for investing activities

－16－

27

7

(18,514)(17,741)This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)
Notes

The cumulative third quarter of previous
fiscal year
(Nine months ended
September 30, 2022)

The cumulative third quarter of current
fiscal year
(Nine months ended
September 30, 2023)

Cash flows from financing activities
Decrease in short-term loans payable
Repayments of long-term loans payable

(38)

－

(1,065)(1,000)

Payments for bond redemption

6(30,000)－

Dividends paid

7

(8,967)(9,046)0

161

Proceeds from disposal of treasury shares
Payments for purchases of treasury shares

(4)

(4)

Repayments of lease liabilities(4,567)(3,988)Net cash used for financing activities(44,642)(13,876)

Decrease in cash and cash equivalents(30,506)(1,326)

Cash and cash equivalents at the beginning of the year

110,497

84,074

Cash and cash equivalents at the end of the period

79,99182,748－17－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Notes to condensed quarterly consolidated financial statements
1. Introduction
Coca-Cola Bottlers Japan Holdings Inc. (hereinafter referred to as “the Company”) is a holding company located in Japanand is listed on the Prime Market of the Tokyo Stock Exchange. Under the Coca-Cola brand, the Company and its subsidiaries(collectively, the “Group”) engage in purchases, sales, production, bottling, packaging, distribution and marketing of carbonatedbeverages, coffee beverages, tea-based beverages, mineral water, alcohol, and other soft drinks in Japan.
The Group’s condensed quarterly consolidated financial statements consist of equities of the Company, subsidiaries, andassociates. The condensed quarterly consolidated financial statements were approved by our Representative Director & President,
Calin Dragan and our Representative Director, Vice President, and Chief Financial Officer (Head of Finance), Bjorn Ivar Ulgenes
on November 10, 2023 and take into account events after the reporting period to that date (see Note 12, “Subsequent events”).
2. Basis of preparation
The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 “Interim Financial Reporting” based on Article 93 of the Ordinance on the Terminology, Forms,
and Preparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007), upon
meeting the requirements of a designated international accounting standard specified company as set forth in Article 1-2 of theaforementioned Ordinance.
Condensed quarterly consolidated financial statements should be used in conjunction with consolidated financial statements
for the previous fiscal year as they do not include all the information required in the annual consolidated financial statements.
Condensed quarterly consolidated financial statements have been prepared on the basis of cost except for measurement at fairvalue.
Condensed quarterly consolidated financial statements are stated in Japanese yen. All condensed quarterly consolidated
financial statements are rounded to the nearest million yen unless otherwise stated.
3. Material accounting policies
The material accounting policies applied by the Group in the condensed quarterly consolidated financial statements are thesame as the accounting policies applied in the consolidated financial statements for the previous fiscal year.
Income tax benefit for the cumulative third quarter of current fiscal year has been calculated on the basis of the annual
estimated effective tax rate.
4. Significant accounting judgments, estimates and assumptions
In preparing the condensed quarterly consolidated financial statements in accordance with IFRS, management is required tomake judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported
amounts of assets, liabilities, revenue, and expenses. Actual results may differ from these estimates. The estimates and theassumptions underlying the estimates are continually reviewed and are based on historical experience and other factors,
including future events, which are believed to be reasonable under the circumstances. Accounting estimates are based on themost appropriate information at the time the condensed quarterly consolidated financial statements are released. Accounting
estimates are based on the assumption that the impact of COVID-19 infection on the Group’s business operations will be limited
since behavioral restrictions have been eased, and economic activities are beginning to normalize.
If there are changes to any future estimates, the impact of the revision is recognized in the condensed quarterly consolidated
statements of income and condensed quarterly consolidated statements of comprehensive income subsequent to the reporting
period in which they are revised.
Accounting judgments, estimates and assumptions that have a significant impact on the condensed quarterly consolidated
financial statements will be revised based on the same concept as in the consolidated financial statements for the previous
consolidated fiscal year.
5. Segment Information
The Group has a single segment as Beverage Business. Refer to Note 8 Revenue for the products and services of thereported segment.

－18－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

6. Bonds
The following bonds were redeemed at maturity during the cumulative third quarter of previous fiscal year.
The cumulative third quarter of previous fiscal year (January 1, 2022 – September 30, 2022)(Millions of yen)Interest rate
Name

Name of bondDate of issue

Issue amountThe due date
Collateral

(%)
The

Coca-Cola West 3rdCompany

Unsecured bonds

June 17, 2015

30,000for redemption

0.52

None

June 17, 2022

7. Dividends
Dividend payments were as follows:
The cumulative third quarter of previous fiscal year (January 1, 2022 – September 30, 2022)
Resolution

Type of share

Total amount ofdividends paid
(Millions of yen)

Dividends per
share
(Yen)

Dividend record date

Effective dateCommon shares

4,484

25

December 31, 2021

March 25, 2022

Common shares

4,484

25

June 30, 2022

September 1, 2022

March 24, 2022
Ordinary General Meetingof Shareholders
August 10, 2022
Board of directors

The cumulative third quarter of current fiscal year (January 1, 2023 – September 30, 2023)(1) Dividend payment amountResolution

Type of share

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Dividend record date

Effective dateCommon shares

4,484

25

December 31, 2022

March 29, 2023

Common shares

4,562

25

June 30, 2023

September 1, 2023

March 28, 2023
Ordinary General Meetingof Shareholders
August 9, 2023
Board of directors

Note: The total amount of dividends includes 79 million yen for the Company shares held by Executive reward BIP Trust and Stockgranting ESOP Trust.

－19－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

8. Revenue
The Group's organizational structure is based on the single beverage business segment. Discrete financial information isavailable for the components of the Group, and operating results are regularly reviewed by the Board of Directors (chief
operating decision makers) to make decisions about the allocation of business resources. As such, the earnings recorded
under the beverage business are presented as Revenue.
In the beverage business, the Group purchases, manufactures, and sells carbonated beverages such as Coca-Cola, coffee
beverages, tea-based beverages, mineral water, alcohol, and other beverages in Japan. Revenue for sales of these products is
recognized primarily at the time of delivery as the customer has obtained control over the products and the performanceobligation is satisfied.
Payments relating to such performance obligations are received generally within two months of delivery. The contracts
with customers do not include any material financial elements.
(Millions of yen)
The cumulative third
quarter of previous
fiscal year
(Nine months ended
September 30, 2022)

The cumulative third
quarter ofcurrent fiscal year
(Nine months ended
September 30, 2023)

612,301

663,80820

16

612,321663,825

Revenue
Revenue from contracts with customers
Beverage
Other
Total

－20－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

9. Other income and other expenses
The breakdown of other income and other expenses are as follows:(Millions of yen)
The cumulative third quarter of previous
fiscal year
(Nine months ended
September 30, 2022)

The cumulative third quarter of current
fiscal year
(Nine months ended
September 30, 2023)

4,075

2,168

Other income
Gains on sales of property, plant, and equipment(Note 1)
Rent income

213

159

3,329

-

514

384

Total

8,132

2,711

Impairment loss
Losses on sales and disposals of property, plant,
and equipment
Transformation related expenses (Note 3)

-

159

1,044

1,148

401

1,641

Special retirement allowance (Note 4)

517

44

Temporary paid leave expenses (Note 5)

2,168

-

Government subsidies (Note 2)
Other

Other expenses

Other
Total

148

234

4,237

3,225

Note 1. Gains on sales of property, plant, and equipment represent gains on sales of land and other assets for the cumulative third
quarter of previous fiscal year and current fiscal year.
2. Government subsidies are grants to cover employee’s temporary leave cost due to the spread of COVID-19 for the
cumulative third quarter of previous fiscal year.
3. Transformation related expenses are consulting expenses related to measures aimed at building an efficient new systemwith the aim of creating more value and further improving productivity for the sustainable growth of the Group for the
cumulative third quarter of previous fiscal year and current fiscal year.
4. Special retirement allowances are allowances and outplacement support expenses incurred in the implementation of thevoluntary retirement program for the cumulative third quarter of previous fiscal year and current fiscal year.
5. Temporary paid leave expenses are the allowance associated with employee’s temporary leave due to the spread of
COVID-19 for the cumulative third quarter of previous fiscal year. The expenses are reclassified as 92 million yen fromcost of sales and 2,076 million yen from selling and general administrative expenses to other expenses, respectively.

－21－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

10. Fair value of financial instruments(a) Classification by level of the fair value hierarchy
Financial instruments measured at fair value on a recurring basis after initial recognition are classified into three levelsof the fair value hierarchy, depending on the observability and significance of the inputs used in the measurement.
The fair value hierarchy is defined as follows:
Level 1: Fair value (unadjusted) in the active market of the same asset or liability
Level 2: Fair value based on inputs other than quoted prices included in Level 1, either directly observable inputs orindirectly, of observable inputs for asset or liability
Level 3: Fair value based on unobservable inputs for asset or liability
When more than one input is used to measure the fair value, the level of the fair value hierarchy is determined basedon the lowest level of input that is significant to the fair value measurement as a whole. Transfers between levels of thefair value hierarchy are recognized as having occurred at the beginning of each quarter.
There was no transfer between Level 1 and Level 2 during the previous fiscal year and the cumulative third quarter ofcurrent fiscal year.
(b) Fair value measurement
Securities are classified as Level 1 of the fair value hierarchy by the measurement of share prices, if any, in an active
market for the same asset or liability. If there is no active market share price for the same asset or liability, the Group uses
valuation techniques such as share prices in non-active markets, and quoted market prices of similar companies. If
significant inputs, such as quoted market prices and discount rates used in measurement are observable, such financial
instruments are classified as Level 2, but are classified as Level 3 if inputs used in its measurement include significant
unobservable inputs.
Unlisted securities are classified into Level 3 of the fair value hierarchy using valuation techniques based on quoted
market prices of similar companies, valuation techniques based on net asset value, and other valuation techniques. In thefair value measurement of unlisted securities, the Group uses unobservable inputs such as valuation multiples andconsiders certain illiquidity discounts and non-controlling interest discounts as needed. The measurement methods forsuch fair value are determined by the Finance division in accordance with the Group’s accounting policies.
The valuation techniques and significant unobservable inputs used in Level 3 fair value measurement are as follows:
As of December 31, 2022
Type

Financial instrument measured atfair value through othercomprehensive income(Securities)

Valuation techniqueSignificant unobservable inputs
EBIT Multiple: 6.2-7.9 times

Comparison of

EBITDA Multiple: 8.2 times

similar companies

PER: 6.7- 32.9 times
PBR: 0.9-2.2 times

Interactions between significant unobservable
inputs and fair value measurement
Estimated fair value increases (decreases)
when equity indices of comparable listedcompanies of the target are high (low)As of September 30,2023
Type
Financial instrument measured atfair value through othercomprehensive income(Securities)

Valuation technique

Comparison ofsimilar companies

Significant unobservable inputs

Interactions between significant unobservable
inputs and fair value measurement

EBIT Multiple: 6.9-26.4 times

Estimated fair value increases (decreases)

PER: 5.8-6.5 times

when equity indices of comparable listed

PBR: 1.2-2.2 times

companies of the target are high (low)EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDA
PER: Price Earnings Ratio
PBR: Price Book Value Ratio－22－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(c) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis is as follows:
As of December 31, 2022
(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value
through profit or loss:
Derivative assets

－

548

－

548

－

548

－

548

8,701
－

－
－

3,046

11,74789

89

Subtotal
Financial instrument measured at fair value
through other comprehensive income:Securities
Other
Subtotal

8,701

－

3,135

11,836

Total

8,701

548

3,135

12,385

－

662

－

662

－

662

－

662

Financial liabilities
Financial instrument measured at fair value
through profit or loss:
Derivative liabilities
Total
As of September 30,2023(Millions of yen)
Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured at fair value
through profit or loss:
－

758

－

758

－

758

－

758

6,601
－

－
－

3,403
92

10,00392

Subtotal

6,601

－

3,495

10,095

Total

6,601

758

3,495

10,853

－

925

－

925

－

925

－

925

Derivative assets
Subtotal
Financial instrument measured at fair value
through other comprehensive income:Securities
Other

Financial liabilities
Financial instrument measured at fair value
through profit or loss:
Derivative liabilities
Total

－23－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 is as follows:(Millions of yen)
Financial assets measured at fair value through othercomprehensive income
Balance as of January 1, 2022

4,423

Disposals
Gains (Losses) recognized in other comprehensive income

(86)
(349)

Other

2

Balance as of September 30, 2022

3,990

Balance as of January 1, 2023

3,135

Disposals
Gains (Losses) recognized in other comprehensive income

(37)
397

Balance as of September 30,2023

3,495

Gains or losses recognized in other comprehensive income are recognized in “Net changes in financial asset
measured at fair value through other comprehensive income” in the consolidated statements of comprehensive income.
(d) Financial instrument measured at amortized cost
The components of carrying amount and fair value of financial instruments measured at amortized cost are as follows:
As of December 31, 2022
(Millions of yen)
Carrying amountLong-term loans payable and bonds

156,701

Fair value

Difference

154,389

2,312

As of September 30,2023(Millions of yen)
Carrying amountLong-term loans payable and bonds

155,761Fair value
153,899

Difference
1,862Long-term loans payable and bonds include the current portion. Cash and cash equivalents, trade and other receivables,
trade and other payables are not included in the above table as their fair value approximates their carrying amount due tothe short collection and settlement period.
The main valuation techniques used to measure fair value of the financial instrument in the table above are as follows:a. Loans payable
Loans payable with variable interest rates are calculated using the carrying amount as its fair value because interest
rates are considered to reflect market interest rates in the short term. Loans payable with fixed interest rates are calculated
based on the present value of future cash flows discounted using interest rates adjusted for the remaining term and credit
risk. Loans payable with fixed interest rates are classified into Level 2 of the fair value hierarchy.
b. Bonds
For bonds with quoted market prices, the fair value is estimated based on quoted market prices. For bonds without
quoted market prices, the fair value is calculated based on the present value of future cash flows discounted using interest
rates adjusted for the remaining term and credit risk. Bonds with quoted market prices are classified into Level 1 of thefair value hierarchy and bonds without quoted market prices are classified into Level 2.

－24－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

11. Earnings per share
The calculation of basic earnings(loss) per share attributable to owners of the parent is based on the quarterly net income(loss) attributable to owners of the parent and the weighted average number of common shares issued.
The basis for calculating the basic earnings (loss) per share and diluted earnings per share for the cumulative third quarterand the third quarter of previous fiscal year and current fiscal year are as follows:
The cumulative third quarter ofprevious fiscal year
(Nine months ended
September 30, 2022)

The cumulative third quarter ofcurrent fiscal year
(Nine months ended
September 30, 2023)

Income (Loss) attributable to owners of parent (millionsof yen)(5,194)

3,862

Weighted-average number of common shares issued (inthousands)

179,343

179,367

Increase in common shares
Share of share-based compensation (in thousands)
Diluted weight average number of shares (in thousands)
Earnings(Loss) per share (yen)

－

1,212

－

180,578
21.53(28.96)－

Diluted earnings per share (yen)The third quarter ofprevious fiscal year
(Three months ended
September 30, 2022)

21.38
The third quarter ofcurrent fiscal year
(Three months ended
September 30, 2023)

Income attributable to owners of parent (millions of yen)

4,705

7,808

Weighted-average number of common shares issued (inthousands)

179,342

179,408

725

1,212

180,067
26.24

180,619
43.52

26.13

43.23

Increase in common shares
Share of share-based compensation (in thousands)
Diluted weight average number of shares (in thousands)
Earnings per share (yen)Diluted earnings per share (yen)Notes: 1. “Diluted earnings per share” is not shown in the cumulative third quarter of the previous fiscal year, as 725 thousand
shares of share-based compensation have an antidilutive effect.
2. We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust. The Company shares held by thesetrusts are included in the treasury shares to be deducted from the average number of shares during the period for
calculating the amount of earnings per share and diluted earnings per share. The average number of treasury sharesdeducted was 26,902 thousand shares for the cumulative third quarter of current fiscal year and 26,861 thousand sharesfor the third quarter of current fiscal year.

12. Subsequent events
Not applicable.

－25－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

2. Others
At the Board of Directors held on August 9, 2023, it was resolved to provide the following interim dividend toshareholders or registered pledges recorded in the final shareholders’ register on June 30, 2023
a.
b.
c.

Total dividends through interim dividends: 4,562 million yen
Amount per share: 25 yen
Effective date of payment claims, and payment start date: September 1, 2023

Note: The total amount of dividends includes 79 million yen of dividends for the Company shares held by Executive reward BIP Trustand Stock-granting ESOP Trust.

－26－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended September 30, 2023 pursuant to the Japanese Financial Instrumentand Exchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part II Information of guarantor companies of the filing company
Not applicable.

－27－