1

Corporate Philosophy

MissionDeliver happy moments to everyone
while creating value

Vision● We are the preferred partner for our customers● We win in the market through sustainable growth● We lead a learning culture with commitment to grow

“Paint it RED! Mirai o nurikaero” is the collective term for● We are the best place to work with pride for Coca-Cola

our Mission, Vision and Values. The Mission, Vision and Values
state our commitment to remaining the preferred partner of ourmany stakeholders, especially our customers, consumers,

Valuesshareholders and the communities in which we operate.
The statements also represent the kind of organization we aspire
to become. They focus on growing sustainably, learning—both asindividuals and as an organization—and demonstrating the value of
integrity and trust. We use our corporate color red, which
represents passion, to express our determination to create
sustainable value for the Company and our stakeholders.

● Learning● Agility● Result-orientation● Integrity

2

Corporate Message

Coca-Cola Bottlers Japan Holdings is committed
to providing quality in every bottle,delivering great new tastes and happy moments
while creating value for every occasion.
We are committed to conserving limited resources
and achieving a sustainable cycle of production.
With diverse talents working together
to accomplish transformation,
we believe that we can create an overflowing of
happiness that will enrich lives.
We continue to drive forward every day
with pride in our work and mission to support people,
communities, and the natural environment.

In August 2023, we launched a new corporate message: "We bottle happy moments." To better inform
our stakeholders, this corporate message is aligned with our values and future aspirations. As a Coca-Cola bottlingcompany engaged in manufacturing, distributing, selling, collecting, and recycling Coca-Cola products,
our corporate philosophy is encapsulated in the phrase "Paint it RED! Mirai o nurikaero" Guided by this message,
we will work as one to closely communicate and create value to continue to be integral to all stakeholders.

3

Corporate
Message
Concept
Our corporate message embodies
our core values and our vision for
the future, aiming to continuously
deliver happy moments throughour products.
Our corporate message emphasizes
our policy of delivering safe andsecure products to every customer,
a fundamental aspect of ourbusiness. We are committed toconserving resources andmaintaining production, promoting
diversity, equity, and inclusion(DE&I), and collaborating withdiverse teams to positively impact
society. As essential workers in thebeverage industry, we arededicated to moving forward with
our mission to support people,
communities, and the naturalenvironment through our work.

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

4

CONTENTS
Ed i to r ial Po licy

Toward the Realization of
Our Value Creation Story

This Integrated Report is designed to broadly communicate the value creation efforts of
Coca-Cola Bottlers Japan Holdings Inc. to its stakeholders. This document is provided as

Introduction

5

At a GlanceCoca-Cola Bottlers Japanby the Numbers

6

Message from the President

9Coca-Cola Bottlers Japan History

10

Beverage Industry Trends andOur Approach

Value Creation Story

12

Value Creation Process

16

As a Member of the Global
Coca-Cola System

18

Material Issues and CSV Goals

a report based on the IFRS Foundation’s International Integrated Reporting Framework

Growth Strategies toEnhance Corporate Value

22
25
27

Message from the CFO

33Supply Chain Strategy for Greater
Efficiency

36

Procurement Strategy that Leverages
the Strengths of the Coca-Cola's
System37

Financial Data Summary81

Non-Financial Data Summary

82

Company Overview
and Stock Information

83

Our Group Companies

84

External Evaluations andParticipation in Initiatives

Profitability-focused Commercial
Strategy

Back-office and IT Functions
Optimization

41 【Special Feature】

Employee round-table discussion
Cross-functional Project toRevamp S&OP Process

Data Section

80

Strategic Business Plan "Vision 2028"

Foundations Supporting
the Corporate Value Growth

45
56
61
67
73
76

Sustainability Strategy
People Strategy
Risk Management Strategy
Corporate Governance Strategy
Directors
Messages from Outside Directors

and the Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value
Creation. For sustainability information, we have referred to the GRI Sustainability
Reporting Standards of the Global Reporting Initiative and the final report of the Task
Force on Climate-related Financial Disclosures (TCFD).
Period covered

This report covers activities from January 1, 2023 to December 31, 2023.
(Including some activities reported in 2024. Organizational structure is based on
March 26, 2024. Numerical data is also for the period from January 2023 to the endof December 2023.)

Scope of the report

Information presented in this report was collected from Coca-Cola
Bottlers Japan Holdings Inc. and its ten consolidated subordinates*(See page 83 for the Group companies.)

Date of issue

June 2024

Company names
CCBJH Group(we)

Coca-Cola Bottlers Japan Holdings Inc. and 10 consolidated subsidiaries*

CCBJI

Coca-Cola Bottlers Japan Inc.

CCBJI Group

Coca-Cola Bottlers Japan Inc. and its Group companies** ‌Coca-Cola Bottlers Japan Inc., 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., andCoca-Cola Bottlers Japan Benefit Inc., Bannai Saketen Inc., NeoArc Inc., and CCBJI INSURANCE(SINGAPORE) PTE. LTD.

Forward-Looking Statements
The plans, forecasts, business strategies, and other statements described in this document contain
forecasts based on our judgment in light of the information available at the time the materials wereprepared.
Note that these forecasts may differ materially from actual results due to various risks anduncertainties.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

5

At a Glance Coca-Cola Bottlers Japan by the Numbers(Note) Results as of December 31, 2023 unless otherwise statedRevenue

868.6

billion yen

Business Income*2.0

billion yen

Operating Income

3.4

billion yen

Net income Attributableto Owners of the Parent

1.9

billion yen

Capital Expenditure

33.7

billion yen*Business Income is a measure of our underlying or recurringbusiness performance, and it deducts cost of goods and SG&A
from revenue, and includes other income and expenses which we
believe are recurring in nature.

Sales Volume

About

About

500

Brandsmillion cases

Products

Over

40 600*Achievement of the Coca-Cola System in Japan as of December 2023

Number of Employees*

About

14,000*Excluding temporary employment

Ratio of Female Managers*

7.4

Number of Sales Centers*%*The female manager ratio is calculated based on the provisions of the
Act on the Promotion of Women s Active Engagement in ProfessionalLife (Act No. 64 of 2015). *Excluding temporary employment

About

300

*Including distribution centers

Number of SDGs Seminars Held18

seminars
Over 3,200 participants

Customer Outlets*

About

340,000

Vending Machines

About

700,000*Supermarkets, drugstores, discounters, convenience stores,
and restaurants

Water Replenishment* Rate

411%

Recycling Rate of Coffee Grounds
and Tea Grounds Generated
in the Manufacturing Process100%* Initiatives of returning an equivalent amount of water to nature as
we use in our products, through forest conservation.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

6

Message from the President“We bottle happy moments.”
Aiming for sustainable growth andcorporate enhancement to continue
creating value for everyone
Calin Dragan
Representative Director, President

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

7

Message from the President
Significant progress made thanks tosuccess of key initiatives in 2023

“Vision 2028” set to run through to 2028. It outlines targets

Moreover, we have established quantitative, non-financial

that include 2-3% annual revenue growth along with

CSV Goals to address priority issues which we have

We have designated 2023 as the "Year of profit focus," wea business income margin and return on invested capital

independently identified as material. We are currently

targeted initiatives that drove profitability, transformation, and(ROIC) of 5% or greater by 2028.

analyzing various scenarios to promote initiatives that will

the implementation of key business activities. As a result,

Achieving sustainable growth and meeting these goals

help us achieve these goals.

business income exceeded our upwardly revised forecast for thedemands multiple strategic actions. We will invest in highperiod, showing a significant increase of 16.5 billion yen over thevalue-added products, target growth strategies by sales

previous year. This success was the result of key initiatives,channels, adopt a flexible pricing strategy to boost profit

including price revisions and disciplined sales activities,

margins, and transform vending business operations.

We recognize that strengthening human capital is vital for

supported by favorable conditions such as the heat wave. In

Furthermore, we will streamline our supply chain, improve

reinforcing our business foundation and achieving theaddition to top-line growth, cost savings and otherprocesses through digital transformation (DX), and promote

targets defined in "Vision 2028." Starting in 2024, we aretransformation efforts contributed to a return to full-year

ESG and our people strategy to enhance our corporate value

implementing a new people strategy to enhance our people,

profitability ahead of our 2024 target. We are confident that wein the medium to long term.

culture, and organization, which are essential to our growth.

have made great progress towards sustainable, profitable growth.

We have designated 2024 as the "Year of strong profit

Furthering human capitalthrough a new people strategy

To underscore the importance of this strategy, our seniorbuild up." To make a strong start in this first year of "Vision

management has committed to dedicating more time to2028," we have set an ambitious business income target of

discussions of human capital during Board of Directors andOur mission is to “Deliver happy moments to everyone while

10 billion yen for the full year—five times that of last year. To

Executive Leadership Team meetings. Our focus is on

creating value.” We aim to be an integral part of daily life,

this end, we will implement a top-line growth strategy

Diversity, Equity & Inclusion (DE&I), which aligns closely withbringing happy moments through our products and services

centered around profit maximization and further strengthen

the priority areas of our people strategy. Through ourthat forge connections into the future. In recent years, I haveour business infrastructure.

integration and consolidation processes, we have brought

Launch of new corporate message

seen how the daily dedication of all employees to our
mission has accelerated our transformation and aided
growth. In 2023 we introduced a new corporate message,

Sustainability based on Creating
Shared Value with society

together people and cultures representing a multitude ofvalues. We see the diversity of each and every employee as a
critical asset. To leverage this diversity as a strength, we are“We bottle happy moments,” to enhance communication

We view Creating Shared Value (CSV) as central to our

focused on creating an inclusive environment where allwith our stakeholders and society. Our objective is to

management and the foundation of our sustainability

employees can fully express their potential, regardless ofcontinue creating value and ensure that this message

strategy. We aim to create both economic value fromdifferences. Our efforts include increasing the ratio of female

reaches a wider audience in the future.

business growth and social value by addressing social issues.

managers, encouraging more male employees to takeTo enhance our sustainability strategy, we prioritize

childcare leave, and addressing the gender pay gap. These

environmental conservation in areas such as packaging,

initiatives are integral to enhancing our human capital andwater, and climate change. We have also become a TNFD*1

driving our success.

Formulated "Vision 2028"
for sustainable profitable growth
In August 2023, we announced our strategic business plan

Early Adopter as part of our commitment to these efforts.

In line with our policy to consider our employees'*1 Taskforce on Nature-related Financial Disclosures

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

8

Message from the President(A&SC) to function as the Company’s auditing body. It iscomprised of multiple independent outside directors who
have voting rights at the Board of Directors meetings as wellas the rights to express opinions on directors' nominations
and compensation at the General Meeting of Shareholders,which altogether contribute to the further strengthening ofmanagement oversight functions. In addition, the Company
is implementing a corporate executive officer system as ameans to separate the decision-making, business
management, and business execution functions. As an
approach to ensure more fruitful deliberations of highly
important matters in the Board of Directors meetings, theCompany also has in place a system to delegate theauthority to make decisions on certain important mattersthat require prompt business executions to specific directors,
which helps facilitate the management’s speedy decision
making on other matters.

To continue serving as preferred partner
We will keep striving to meet our valued customers’ needs
through maintaining high-quality standards while delivering
safe and secure products and services. We aim to create avirtuous cycle for society by continuously providing value tosafety and health first and foremost, we have positioned
health management as our top leadership priority and are

Corporate governance supporting
the realization of "Vision 2028"

stakeholders through our business activities. Our driving
force is the desire to create stakeholder value, serving as theimplementing a variety of initiatives to this end. We also

Our basic policy on corporate governance is to increase

preferred partner for decades to come. We are committed to

strive to foster a "health first" corporate culture that allows

management soundness, transparency, and efficiency,

making strides toward sustainable growth and enhancing

our employees individually to lead active and healthy

as well as enhance medium- to long-term corporate andcorporate value by fulfilling our corporate mission to “deliver

lifestyles and to work with peace of mind and enjoyment,

shareholder value.

happy moments to everyone while creating value.” Thankbased on the recognition of their responsibility to be selfmotivated to maintain and enhance their own health.

To further strengthen our governance structure, wehave established the Audit and Supervisory Committee

you for your continued understanding of and support for the
CCBJH Group.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

9

Coca-Cola Bottlers Japan History
The first Japan bottler was established in 1956, and that number grew to 17 across the country. Bottler consolidation began in the 1990s. The Coca-Cola East Japan Company and the
Coca-Cola West Japan Company merged in April 1997 to form Coca-Cola Bottlers Japan Inc.* in April 2017.
Currently, the Company and four other bottlers sell Coca-Cola and other beverages throughout Japan to provide value to their customers.

Examples of the value we offer to customers*From the website ofCoca-Cola (Japan)*From the website ofCoca-Cola (Japan)*From the website of Coca-Cola (Japan)

1957

1976

1982

2016

2019

2020

Coca-Cola delivered toJapan’s first private customer,
the Tokyo American Club. A
happy moment provided tothose visiting the club as aplace for international
exchange.

A cup vending machine
introduced as a hot and cold
combination machine.
Products consistently provided
throughout the four seasonsfor more than 10 years since
the implementation of vending
machines began in 1962.

Coca-Cola 1500ml launched
as a soft drink packaged
in a PET bottle. Its resealablecap, portability, and durability
benefited customers with its
greater versatility, providing
new drinking opportunities.

Launch of Coke ON®, an official
Coca-Cola smartphone appthat works with Bluetoothcompatible vending machines.
The app allows users topurchase beverages not only for
consumption and enjoyment,
but also in a more economical
and convenient way.

The Coca-Cola System’s firstalcoholic beverage,
Lemon-dou, launched acrossall areas of the Company.
Differing levels of alcohol
content within the same brandoffered, using techniques toachieve the delicious taste
found at bars.

I Lohas, natural mineral water,sold in 100% recycled PET
bottles, launched and wasrolled out to flagship products
such as Coca-Cola in 2021,
helping to reduce greenhousegases and plastic use.

1950 s –1970 s –1956
Japan’s first bottler
establishedTokyo Inryo
Co., Ltd.

2000 s –2010 s –1999
Expansion of manufacturing
and sales areas(17 bottlers)
Tokyo

ChukyoSendai

MikuniTone

Fuji

Kitakyushu

MinamiKyushuKinki

MikasaSanyo

Shikoku

Hokkaido

Michinoku

Okinawa

Hokuriku

Nagano2017
Improved competitivenessthrough streamlining(6 bottlers)

2001-2015
Corporate restructure

1999-2015
Corporate restructure

1984
Merger of two companies

2020 s –Coca-Cola East Japan

Scaling up for greaterbusiness strength(5 bottlers)

2017
Business integration

Coca-Cola West

Coca-Cola
Bottlers
Japan

Hokkaido

Michinoku

Hokkaido

Michinoku

Hokuriku

Okinawa

Hokuriku

Okinawa* Trade name changed to Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) on January 1, 2018

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

10

Beverage Industry Trends and Our Approach
To expand sales and improve profitability, we are developing high value-added products and strengthening our product offerings - including brands, size,and packages - to align with our customer values and purchasing occasions.

Rising health consciousness

Premiumization and authenticity

Reflecting growing health consciousness

We offer a range of products to meetand customer needs, we are expanding

consumers’ increasing interest in unique,

our line-up of Foods for Specified Health Uses

high-quality experiences. Using our proprietary(FOSHU) and foods with function claims*1.

technology, we offer Kochakaden Dessert

Our offerings include Coca-Cola Plus, a FOSHU

Torokeru Peach Tea, a jelly-like product that

product that reduces fat absorption andprovides a new, unprecedented texture andmoderates the rise in blood triglycerides after

luxurious taste. Additionally, our offerings include

meals, and as well as a functional product,

barista-quality Costa Coffee, allowing customers

Yakan no koi mugicha, a barley tea fromto savor the exceptional taste and aroma of

Soukenbicha. This tea contains tiriloside derived

high-quality coffee on the go, catering to thosefrom rose hips, which has been reported to reducewith a refined palate for gourmet experiences.

body fat in people with a high BMI.
*1 Please visit https://www.coca-cola.com/jp/ja/sustainability/inryoguidefor details of FOSHU and foods with function claims

Implementation of price revisions

Sustainable packaging

Costs continue to rise due to the prolonged

We have implemented a bottle-to-bottle

effects of increase in raw materials, supplies,

recycling initiative in which used PET bottles are

and energy costs, as well as foreign exchange

collected and regenerated as new PET bottles.

fluctuation. In response, we have implemented

We use 100% recycled PET bottles in our

price revisions on certain products.

flagship products, including Coca-Cola, across

We announced our sixth price revision since

four brands and 38 products*2. Since its launch,

2022, which will take place in October 2024.

the popular I Lohas natural mineral water

We will continue to improve efficiency andlabel-less, has been eliminating the need toreduce costs, strive to sell our products at fairremove labels and simplifying waste separation.

prices, while providing our customers with safe,
reliable, and high value-added products.
*2 Achievement of the Coca-Cola System in Japan as of December 2023

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Value Creation Story

12

Value Creation Process

13

Details of Value Creation Process−Capital and Strengths We Have
Built for Continuous Value Provision−A Value Chain That Leverages Synergy
Within the Coca-Cola System−Value to Stakeholders

16

As a Member of the Coca-Cola Systemin the Global
The Coca-Cola System in the Global
The Coca-Cola System in Japan

18

Material Issues and CSV Goals
Identifying Material Issues
Definitions of Material Issues
CSV Goals

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

12

Value Creation Process
Coca-Cola Bottlers Japan Holdings creates value with ourunique value chain and strategy. This is done on thebasis of capital and strengths that we have built up
with our stakeholders.
We reinvest part of the created value to achievesustainable growth.

Reinvestment for sustainable growth

Mission
Ideal Image

Output/Outcome

Delivering happy
moments toeveryone while
creating value

P.15

Value to stakeholders

Business Model

P.14

Input

P.13

Capital and strengths
we have built for continuous
value provision

Material Issues

Diverse human resources

Structure that facilitatescollaboration withstakeholders

Production

Communities
Suppliers

Sales
plan

P.19

Business
partners

Shareholders/investors
Naturalenvironment

Supply chain foundations
supporting the stablesupply of products
The Coca-Cola brand andaccumulated experienceand knowledge

Customers(consumers)

Procurement

Value chain that capitalizes on
synergy within
the Coca-Cola System

MarketingBeverage
base
production

Employees

Cooperation
Coca-Cola
Japan’svalue chain

Researchanddevelopment

Logistics

CCBJH Group’s
value chain
Collection /Recycling

Medium-term strategic
business plan

P.25

Vision 2028

Sales /
MarketingNon-financial targets

P.20

CSV Goals

Planning

Sustainable system forconserving raw materials

Growth strategies to enhance corporate valueSound financial baseFoundations supporting corporate value growth

P.21
P.44

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

13

Details of Value Creation Process

Capital and strengths we have built for continuous value provision
We create value by continuously accumulating six types of capital and the strengths that are specific to us.

Input
Descriptions

Manufacturing& commercial
capitalSupply chain foundations supporting the stablesupply of products

A system that sells around 500 million cases per year andconsistently supplies a diverse range of products acrossapproximately 40 brands.
A proper management system has constructed a foundationthat adapts effectively to change.

The Coca-Cola brand, accumulated
experience and knowledge

Intellectual
capitalThe Coca-Cola brand has been beloved around the world
for over 135 years. It is worth 58 billion US dollars (about 8.2
trillion yen).*1
Operations comply with the global standards of theintegrated ERP system. It comprehensively handles backoffice operations, customer services, and other functions.

Diverse human resources

Human capitalSocial capital

Our personnel, culture, and organization impact the growthof business.
Diversity, equity, and inclusion are promoted as thefoundation that supports the human resources strategy
People Strategy.

Structure that facilitates collaboration withstakeholders

We develop our collaboration and engagement withstakeholders, including local communities and customers
through business that addresses social issues.

Principal capital

Improvement measures, etc.

17
About 300
Including two Mega DC*2 (Saitama and Akashi)
About 12,300● Vehicles owned
About 700,000● Vending machines

Financial
capitalthe Coca-Cola Japan Company● Bottling partners worldwide

About 225

● Brands in Japan

About 40

● Number of employees● Collaborate globally centered on the Coca-Cola brand● Improve customer-oriented marketing capabilities● Increase ability to develop products suited to customers’

diverse preferences

About 14,000(About female 1,800 employees)● Wage gap between male and female employees● Percentage of female officers● Employment rate of people with disabilities

73. 1 %
33.3%
2.42%

Tokyo, Osaka, Kyoto and 35 prefectures● Sales area
About 111 million● Consumers in sales area
18 times● Number of SDG seminars
over 3,200 participants● Donation of products to food banks

Sustainable securing of biological resources, raw materials, andsupplies through conservation of natural capital
As a company that uses water in its business, we focus ouractivities particularly on the conservation of water resources.

● Water usage● Water replenishment*3 rate

Sound financial base● Total assets● Total equity● Rating

A sound and stable financial foundation and a decisivefinancial structure to realize strategic investment measureslogistics facilities● DX to accelerate automation● Improve end-to-end processes● Invest strategically in marketing in consideration of profitability● Strategically install vending machines in superior locations●C ollaboration with the Coca-Cola Company and● Securing a working-level workforce for the continuityof the business● Efforts to recruit, develop and retain human resources● Entrenchment of a culture that focuses on performance● Improvement of transformation capabilities● Proactive career building by individual personnel● Form strategic partnerships with key customers● Expand collaboration with environmental organizations

and industrial associations
over 900,000 bottles

Sustainable system for conserving raw materials

Natural capital● Introduction of state-of-the-art manufacturing and● Plants● Sales/distribution centers

13,365,000m³
411%● Sustainable conservation of water resources● Preserve forests, grasslands and other water source areas,and ecosystems● Enable the entire Coca-Cola System to collaboratively

reduce environmental impact on a global scale
About 845 billion yen
About 470 billion yen
A+ (R&I) / AA- (JCR)● Increase capital efficiency to increase ROIC● Maximize the improvement effect of profitability andinvestment efficiency*1 Source: Interbrand: Best Global Brands 2023 (using a foreign exchange rate of 141 yen to the US dollar) *2 Abbreviation for distribution center *3 Activities involve returning an equivalent amount of water to natureas we use in our products, facilitated by forest conservation initiatives.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

14

Details of Value Creation Process

A Value Chain That Leverages Synergy Within the Coca-Cola System
Solid collaboration with the Coca-Cola Japan Company is an element that gives us a competitive advantage. In this collaboration, we supply Cola-Cola products matchedto customers’ needs.
We carry out integrated operations including manufacturing, distribution, sales, marketing activities. Through these activities, we strive to increase the corporate value inthe entire value chain.

Business Model
1

Sales plan

4

Logistics

We monitor market conditions and develop sales

We are working to build a logistics system

plans based on our strategy. We create highly

for the efficient and stable supply of products

accurate supply-demand plans through our S&OP

to ensure the products sought by customers are(Sales and Operations Planning) process. We link ouravailable to them at any time and at any place.

manufacturing and distribution capacity to our inventory

In particular, we operate Mega DC (automatedpolicy to achieve both the stable supply of products todistribution centers) in Saitama and in Akashi tocustomers and the reduction of transport costs.

concentrate and optimally allocate inventories.

2

This is part of our efforts to build an

2 Procurement

Procurement

efficient network.

To conduct efficient procurement activities, weshare best practices with the Cross Enterprise3

Production

1
Sales
plan

Procurement Group (CEPG)*1 and overseas
bottlers. We also increase our collaboration with

5

Japan-based bottlers with whom we conduct

Coca-Cola brand, we develop strategies forjoint procurement. In addition, we improve ourindividual channels and product categories. We

sustainable procurement activities to help us

Marketingachieve our non-financial targets.
*1 A global procurement organization of the Coca-Cola System that aims
to optimize cost and quality leveraging the scale advantages of global
procurement

3

Production

To achieve flexible high mix, small-lot production,

4
Logistics

Beverage
base
production

Cooperation
Coca-Cola
Japan’svalue chain

we are working to improve productivity. For
example, we introduce new production lines usingstate-of-the-art manufacturing technologies. In
addition, we perform operation management using

Sales / Marketing

Taking advantage of the strength of the

Researchanddevelopment

Planning

CCBJH Group’s
value chain
6

Collection /Recycling

Sales / 5Marketingcarry out sales and marketing measures alignedwith these strategies. We implement strategies
matched to customers’ needs and uniquecharacteristics. Our sales activities emphasize
profitability.

6

Collection / Recycling

We have set unique CSV goals that align with the
Coca-Cola System in Japan's 2030 Packaging

our proprietary KORE*2 management system. We

Vision. Through a bottle-to-bottle recycling

strive to maintain and improve quality.

program and other activities, we seek to fulfill the*2 Coca-Cola System’s proprietary management system that is sharedworldwide. The system not only meets the requirements of ISO
international standards and applicable laws and regulations concerning
quality, food safety, the environment, and industrial safety and health,but it also sets forth more rigorous standards.

sustainable material*3 usage goal and others.
*3 Recycled PET materials from bottle-to-bottle and plant-derived
PET materials

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

15

Details of Value Creation Process
Value to Stakeholders

We constructively engage with stakeholders to understand their expectations and wishes.
By working to respond to their needs, we will continue to provide value and seek to fulfill our mission.

OutputOutcomeResults for FY2023 ending December

Principal means of engagement

Revenue

868.6 billion yen (+7.6% YoY)

Sales volumes

492 million cases (+3% YoY)

Business income

2.0 billion yen(+16.5 billion yen YoY）

Revenue per case by sales channel+40-160 yen

Cost reduction throughtransformation+3.7 billion yen YoY

Shareholder returns(dividend per share)

50 yenCustomers(consumers)● Communication through sales activities● Websites, social media

Fostering wellness by providing high-quality
products and services that enrich daily life alongwith new occasions to enjoy beverages
and refreshments

Business
partners● Communication through sales activities● Inquiry form

Contributing to the creation of economic, social,and environmental value for customers throughexpansion of business opportunities
and collaboration● Opinion exchange meetings with

Employees

Suppliers

Greenhouse gas emissions
Scope 1, 2

-19 %Scope 3-25 %(Reduction of our Scopes 1
and 2 GHG emissions by 50%
and our Scope 3 emissions
30% by 2030, both are versus
2015 levels)

Cumulative total number ofparticipants in community
programs*1

970,000

Ratio of female managers

7.4 % (+0.8 point YoY)

Rate of male employees usedchildcare leave

83.3 %

Communities

Naturalenvironment

management● Employee surveys● Corporate intranet● Audits guided by the Supplier Guiding

Principles (SGP audits)● Supplier assessments by EcoVadis● Plant tours● Social contribution activities● Collaborations based on partnerships

between industry, academia, andgovernment● Development and promotion ofenvironmentally friendly products● Dialogues with environmental

conservation organizations● General Meeting of Shareholders● Quarterly earnings presentations

2(100% goal to be reached by 2025* )Value offered

Shareholders/● IR/SR meetinginvestors● Increase of earnings and shareholder

returns

Improving engagement through systems and work
environments that facilitate employee growth
to reach their full potential, as well as through theformation of autonomous organizations
Achieving sustainable business growth throughconstructive relationship building

Achieving sustainable development of local
communities through collaboration for regional
economic growth and community building
Mitigating environmental impact by raisingconsumer awareness and forming a responsible
recycling/circular society

Efforts to increase earnings and shareholder returns
and engage with shareholders and investors toincrease corporate value*1 Community programs are events independently or jointly organized by Coca-Cola Bottlers Japan Holdings or events in which Coca-Cola Bottlers Japan Holdings directly communicates with participants, delivering a lecture, or the equivalent independently.
*2 The percentage of eligible male employees taking at least one day of childcare leave

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

16

As a Member of the Global Coca-Cola System
Global Coca-Cola System

With a history spanning 138 years, the global Coca-Cola System now supplies its products to customers in over 200 countries and regions worldwide.

Global Coca-Cola System
Coca-Cola product sales area

Over 200

Global sales ratio by region in the Coca-Cola System

The Coca-Cola Company

countries and territories

Beverage baseproduction
North America

Innovation
Creation
Marketing

Bottled products
Source: 2022 Business & Sustainability Report of The Coca-Cola Company

In 1886, Coca-Cola was born in Atlanta, Georgia. The

Sales

Europe,Middle East,
and Africa

28%

17%

Asia

24%

South America

27%

Note: Others 4%
Employees supporting the Coca-Cola businessOver 700,000

around the world

These bottling partners, also known as “bottlers,” mix

Network of Coca-Cola System

225 bottling partners

Aboutworldwidesustainable growth and competitiveness. Close collaboration

franchise system established by The Coca-Cola Company

the beverage base with carbonated or distilled water andallowed other companies to bottle and distribute Coca-Cola,

sweeteners to create a finished beverage. The finishedespecially through joint efforts in product development,

which facilitated its expansion across the United States.

product is then packaged and sold. The Coca-Cola System

the implementation of globally standardized core systems,

today sells Coca-Cola and a range of other products in moreparticipation in global operations, and the exchange ofthan 200 countries and territories.

human resources.

In time, franchise businesses established bottlingplants in leading to the worldwide distribution of Coca-Cola.
The Coca-Cola Company distributes its beverage baseto authorized bottling partners in specific sales areas.

within the Coca-Cola System has led to increased synergy,

This global network, enriched with extensive
knowledge and experience, is a critical source of our

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

17

As a Member of the Global Coca-Cola System
The Coca-Cola System in JapanThe Coca-Cola System in Japan is made-up by the Coca-Cola Japan Company which is responsible for supplying beverage bases, overseeing product planning and development,
and leading marketing initiatives. Additionally, the System includes five bottlers and affiliates tasked with the production and distribution of the products.
The bottlers across the nation ensure the efficient production of safe, reliable,

The Coca-Cola System in Japan

Planning

Research anddevelopment

Beveragebase production

operates distribution, transportation, and sales activities.
Sales plan

Procurement

Production

Distribution

Sales /
Marketing

Cooperation

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

high-quality products. Each bottler produces products at its factories across the country and

Bottling system in Japan

Coca-Cola Japan Company

Collection /Recycling

Sustainability Framework
The Coca-Cola System in Japan has conducted a comprehensive joint study to identify its
sustainability issues and priorities. The goal was to achieve global sustainability targets while

Hokkaido
Coca-Cola Bottling Co., Ltd.

also creating strategies that address Japan’s specific challenges and integrating them into theMichinoku
Coca-Cola Bottling Co., Ltd.

Coca-Cola System’s common action plan. This effort has resulted in the establishment of three

Hokuriku
Coca-Cola Bottling Co., Ltd.

key platforms: Inclusion, Communities, and Resources, in addition to nine priority issues that
Coca-Cola Bottlers
Japan Inc.

90

Approx.
%of sales volume
in Japanrequire immediate action. Committed to driving positive change through business operations,
we address these significant challenges in the environment, daily life, and communities aroundus. While delivering refreshment, we are dedicated to co-creating a sustainable future.

Regions of operation

Cooperation

Tokyo, Osaka,
Kyoto and35 prefectures

Okinawa
Coca-Cola Bottling Co., Ltd.

Through strong partnerships with the Coca-Cola Japan Company and other system companies, thePriority
topicsCoca-Cola System enhances production efficiency, adopts a consumer-oriented approach, responds
swiftly to market trends, improves customer service, and maintains strict quality standards. Together,
we strive for optimal system-wide performance to drive the further growth of the Coca-Cola business.

Focus
topicsInclusionCommunities

Resources

Gender・Drive impact throughtwo national platforms(Inclusion, Resources)

Packaging/PET

Age/Generation
Disabilities
LGBTQ

・Initiatives that are
sustainable andadditionally have
local relevance

Water
Greenhouse gas emissions
Renewable energy

The Coca-Cola Japan Company supplies beverage bases to bottlers across the country from its
base at the Moriyama Plant. Its role also involves analyzing Japanese market trends and consumer
behavior to lead the development and implementation of product development and marketing strategies.
The company is also responsible for enforcing global quality standards, driving technologicaldevelopment in production processes, supporting new product launches with production engineering,overseeing supply and demand planning, and offering academic advice on products.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

18

Material Issues and CSV Goals
Identifying material issues

As part of Coca-Cola System in Japan’s Sustainability Framework, we are committed to pursuing activities that address social issues through creating shared value (CSV).
In 2023, we are working to further deepen our efforts and fulfill our mission to resolve social issues.

Recognizing
the current status

evaluation by analyzing documents such as the Annual

In 2019, the Coca-Cola System in Japan established its

definition of material issues after checking the materiality

Sustainability Framework, which outlines three platforms

proposal for comprehensiveness and appropriateness.

- Inclusion, Communities, and Resources - and nine key

Based on these discussions, we have identified and definedissues to be addressed. Based on existing priorities and13 material issues unique to the Group, covering three areas:material issues, we referred to topics selected in the“environmental,” “social,” and “governance.” (See page 19)

formulation process of the Sustainability Framework. We
then identified issues by categorizing social issues takenfrom industry surveys, reports by ESG report guidelines

3

Creating a map ofmaterial issues(GRI, SASB) and ESG rating agencies (MSCI, FTSE), reports

In mapping our 13 material issues, we scored importanceby external consultants including interviews with external

based on interviews with investors focusing on ESG, NGOs,

stakeholders such as consumer groups, retailers, NPOs,

and local governments, etc., as well as our management

academic organizations, and ESG investors, ISO26000, andincluding our Representative Director and President andgovernment reports.

employee surveys.

To fulfill our mission of “Delivering happy moments to

In mapping our material issues, for the social axis weeveryone while creating value,” we have established ascored importance for stakeholders based on factors such asgroup-wide, cross-divisional project team to identify ourinterviews with outside experts and analysis of various

material issues.

reports. For the business axis, we scored importance for the
CCBJH Group based on interviews with management and2

Identifying material issues

Map of material issues

Review and the CSV Report. It then discussed the proposed

employee surveys. The resulting scores were plotted along●The environment ● Communities ●People ●Foundation

Very
high
Packaging and recycling●(circular economy)

Importance for stakeholders

1

Mitigation of and●adaptation to climate change Employee development●& wellbeing●Contribution to
Sustainable●
local community development
conservation of●Water stewardshipbiological resources●Diversity, equity and inclusion●Responsiblecommercial practices
Corporate governance●
Product●
Healthy products●
Sustainable●
quality/servicessupply chain
and safety●Resilience to natural disasters

Very
high

High

Importance for the CCBJH Groupthe axis of importance for stakeholders and for the CCBJH

The issues identified were surveyed for their degree ofGroup to create a map of material issues. We have recognized

importance. Based on the results of this survey, they were

the following three points as particularly important to ourgrouped and organized, a social axis evaluation was

stakeholders and the Company: packaging and recycling

conducted, and we drafted a proposal of what our material(circular economy), mitigation of and adaptation to climate

issues should be. The project team conducted an internalchange, and employee development & wellbeing.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

19

Material Issues and CSV Goals
Definitions of material issues

We define material issues and clarify our approach to resolving them. Our material issues and the Sustainability Framework formulatedby the Coca-Cola System in Japan are related, and we aim to resolve social issues in collaboration with the Coca-Cola System in Japan.

developed a list of issues based on the results of social
axis surveys, and then organized the definitions of material
issues through the analysis of internal materials. Regarding
the issue granularity and definitions, we have formulated
our own definition of material issues. based on discussions
by a group-wide, cross-divisional project team.

CCBJH Group's material issues
We evaluate and identify our own material issues after
identifying new themes that should be added as material

Communities

In formulating identifications of 13 material issues, we have

Natural environment

Material issues

Definitions of material issues

System Sustainability Framework for Japan and the key
issues selected during the formulation process. The three

Peopleissues based on the key issues identified in the Coca-Cola

platforms defined in the Sustainability

our sustainability activities. The Sustainability Frameworkis also related to the SDGs, and the resolution of our material
issues is linked to our efforts to achieve the SDGs. (Refer topage 17 for details)

Foundation

for Japan and our own material issues are consistent with

Definition

InclusionLink*

To achieve the Coca-Cola Company’s 2030 Global Vision World Without Waste, we will work on activities such as
light-weighting, horizontal recycling, and waste reduction through the three pillars of design, collection, andpartnerships. By doing so, we contribute to the promotion of recycling of plastic and other materials in Japan.

Mitigation of and adaptation
to climate change

To mitigate and adapt to climate change, we aim to reduce our environmental impact through initiatives
throughout the value chain, including the reduction of our greenhouse gas emissions.

Water stewardshipAs a company whose main product ingredient is water, we strive to reduce, reuse, and properly treat water usedin manufacturing. We also work with local communities to conserve water resources in a sustainable manner topass on abundant water resources to future generations.

Sustainable conservation of
biological resources

We conserve biodiversity and achieve sustainable business by recognizing and reducing the impact on the naturalenvironment and ecosystems whilst making business decisions.

Healthy products/services

We contribute to consumer wellness by providing high value-added products and services that contribute to themaintenance and promotion of health and nutrition.

Contribution to local
community development

Based on collaboration and communication with local communities and other stakeholders, we engage inactivities aimed at developing sustainable local communities and solving social issues.
Through our business, we contribute to the revitalization of local economies.

Employee development &wellbeing

We believe that employees are important assets in conducting sustainable business. Therefore, in our humanresource development system, we work to create a workplace environment that maximizes and develops thepotential of each employee. We focus on our employees' safety and their physical and mental well-being bymeasures such as enhancing their work-life balance.

Diversity, equity andinclusion

We foster a culture that respects human rights, diversity, and fairness, and create an environment where eachindividual can maximize their abilities regardless of gender, age, disability, race, nationality, sexual orientation,
gender identity or expression, or other attributes throughout the value chain.

Product quality and safety

In order to provide safe, high-quality, fresh, and refreshing products and services to our consumers, we implement
strict quality systems and processes in all business processes, from raw material procurement, manufacturing,
distribution and transportation, to sales and service. In this way, we guarantee and improve the safety and qualityof our products.

Resilience to natural
disasters

We strive to build a system and structure that is safe and robust enough to minimize the impact on our business inthe event of any injury to employees and damage to facilities for manufacturing, logistics, sales operations, andbusiness sites caused by large-scale natural disasters such as earthquakes and typhoons.

Corporate governanceWe strive to build and maintain a strong corporate governance structure to improve management soundness andmaximize corporate and shareholder value. In accordance with the intent of the Corporate Governance Code, we
strive to improve the skill sets of our directors and all employees, pursue an optimal organizational design for ourcompany, and further strengthen our governance.

Sustainable supply chain

We build a sustainable supply chain through the stable procurement of materials and raw materials, addressing
human rights and environmental issues in the supply chain, conducting appropriate transactions and responsible
procurement.

Responsible commercial
practices

We build our relationships with our consumers by ensuring responsible marketing of our full beverage portfolio,
including alcohol, ensuring compliance with all commercial activities in line with laws and regulations. We provide
our stakeholders with access to useful and sufficient information on the health and nutrition of our products
through easy-to-understand communications.

Natural environment, Communities, and People. This
demonstrates that the key issues in the Coca-Cola System

Communities

Packaging and recycling(Circular economy)

Framework - Resource, Communities andInclusion - are classified by CCBJH, linking to the

Resources*This shows the link with the Sustainability Framework developed by the Coca-Cola System for Japan.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

20

Material Issues and CSV Goals
CSV Goals

We established the CSV Goals as non-financial targets as part of commitment to creatinga sustainable business and society while achieving our Mission.

Levels of achievement■■■ 80% or higher■■□ 50%-79%■□□ Less than 50%

As of theend of2022

As of theLevels ofend ofachievement
2023(Note) The baseline year is 2015 and the target year is 2025 unless otherwise stated

CSV Goals, non-financial targets

CCBJH Group’smateriality

In order to resolve the materiality identified by the CCBJHGroup, we established the CSV Goals as more specificbusiness and society while achieving our Mission. To achieve

Packaging andrecycling(circular economy)each of the CSV Goals, we are pursuing initiatives
throughout the value chain, checking our progress, andmoving steadily toward achievement.
we are stepping up our collaboration with local

Water stewardshipcommunities, such as signing water source conservationagreements with forest conservation organizations and
Mitigation of andadaptation toclimate change

plants. The water replenishment rate in 2023 was 411%, well
above target.

■□□

100%

80%+

■■■

Further lightweight PET packaging by 2030 (compared to 2004)

35%

30%+

30%+

■■■

Collection percentage compared to sales volume by 2030*2

100%

94.0%

94.4%

■■■

ー

ー

We also aim to reduce Scope 3 (other indirect GHG
emissions) by 30% versus 2015 levels by 2030, targeting
People

200%

420%

411%

■■■

Water usage reduction by 2030

30%

19%

20%

■■□

Scope 1 and 2 reduction in greenhouse gas emissions by 2030

50%

20%

19%

■□□

Scope 3 reduction in greenhouse gas emissions by 2030

30%

■■■

25%

25%

Net zero in greenhouse gas emissions by 2050――

Promotion of renewable energy

―

―

100%

100%

■■■

300%

146%

226%

■■□

Front-of-pack calorie label and straightforward nutritional
information

100%

100%

100%

■■■

Contribution to
local community
development

Employee volunteers

10%

20.0%

20.0%

■■■

1,000,000

920,000

970,000■■■

Diversity, equity
and inclusion

Female managers by 2025

10%

Female managers by 2030

20%

6.6%

7.4%

Adherence to Supplier Guiding Principles acrossthe CCBJH Group value chain

100%

100%

100%

■■■

Sustainable sourcing

100%

100%

100%

■■■

Observation of The Coca-Cola Company's Responsible
Marketing Policy

100%

100%

100%

■■■

chain. We are also working to achieve our GHG reduction
targets by focusing on facilitating the introduction ofFoundation

Replenishment rate, focusing on watersheds near our plants

100%

Communities

emissions) emissions by 50% versus 2015 levels by 2030.

renewable energy.

42%

FOSHU/functional product growth(compared to 2016)

Healthy products
and services

greenhouse gas (GHG) emissions, we aim to reduce Scope 1

net zero GHG emissions by 2050 across our entire value

50%
About
90%

Low and no calorie options for core brands

A future area of focus is Mitigation of and adaptation
to climate change. As part of our efforts to reduce(direct GHG emissions) and Scope 2 (indirect GHG

100%

Extensive partnerships across industry and environmentalorganizations by 2030

Naturalenvironment

local governments in the water source areas of all 17 of ourTargetnumbers

Ratio of products using sustainable materials*1 by 2025
(number of bottles sold)Sustainable materials*1 usage by 2030

non-financial targets in an effort to create a sustainable

Regarding the material issue of Water stewardship,

Category

Sustainablesupply chain

Participants in community programs

■■□
■□□

*1 Recycled PET materials from bottle-to-bottle and plant-derived PET materials*2 PET bottle collection rate (Source: The Council for PET Bottle Recycling “2023 Annual Report of PET Bottle Recycling”)

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Growth Strategies toEnhance
Corporate Value
22

Message from the CFO

25Strategic Business Plan "Vision 2028"

27

Profitability-focused Commercial Strategy
Initiatives by Category
Initiatives by Channel
Responsible Commercial Practices

33

Supply Chain Strategy for Greater
Efficiency
Product Quality and Safety36

Procurement Strategy that Leverages
the Strengths of the Coca-Cola System

37

Back-office and IT Functions Optimization
IT Strategy Overview
Driving DX With an Eye on Cyber Risks

39

Establishment of NeoArc Inc.
Message from the President of NeoArc Inc

41

Special Feature
Cross-functional Project to Revamp S&OP ProcessIntroduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

22

Message from the CFO

Steady profit growth and strengthenbusiness foundation through transformation
to enhance corporate value
Prioritized profitability improvement
and achieved a turnaroundahead of schedule

environment due to rising commodity and depreciating yen,affecting consumer behavior and business.
In commercial activity, we implemented two price

We positioned 2023 as the "Year of profit focus" andrevisions as one of the most important initiatives forcommitted to business activities focused on profitability,

profitability improvement with a focus on steadypushed forward with transformation, and implemented a

implementation and maintaining shipping prices following

range of important initiatives. These actions achieved great

the price revisions. Additionally, to maximize the capture of

results, returning to profit despite the uncertain businessincreasing demand due to record-breaking heat wave andAchieved a significant increase in business income.
YoY

+16.5

billion yen

vs Initial plan

+7.0

Business income(Billion yen)

2.0

billion yen
0

Key measures produced great results.
Volume growth

Wholesale revenue
per case

Cost savings+3 %+40-160 yen+3.7 billion yen

Strong volume growth while
improving unit prices by seizing
the opportunity presented by
the recovery in traffic and theheatwave.

Two price revisions improved
wholesale revenue per casein all channels.

Accelerated key transformation
initiatives generating greater
benefits than initially planned

Representative Director andVice President, CFO

Bjorn Ivar Ulgenes-14.4
2022 Actual

2023 ActualCoca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

traffic recovery, we worked to achieve revenue growth

capacity through activities such as new line starting

through sales volume increase and wholesale revenue per

operation at the Ebina plant and manufacturing processes

case improvement by launching new products, implementing

improvement. Furthermore, we worked on reducing per-caseyen from the previous year, enabling us to return to profit

efficient and effective marketing activities, and enhancing

transportation distances by building supply network by region

ahead of 2024 target. Amid the continued cost increases

continuous customer engagement.

and leveraging Mega DC(automated distribution center).

impacted by external factors such as rising commodity, utility

In the manufacturing and logistics area, while faced byRegarding the business performance in 2023, sales

23

implemented since 2022.
Business income significantly improved by 16.5 billion

price and depreciating yen, profit contribution from sales

the impact of rising commodity, utility price and depreciating

volume increased by 3% compared to the previous year duevolume growth and wholesale revenue per case improvement,

yen, we worked on stabilizing the Sales and Operations

to sales activities to capture increasing demand resulting

as well as marketing activities emphasizing cost-effectiveness

Planning (S&OP) process that was revamped in the previous

from traffic recovery and heat wave despite the negativeand logistics cost reduction through improvement of supply

year to turn the increasing demand opportunity into sales

impact from price revisions. Revenue increased by 7.6%

networks, significantly contributed to the improvement involume and profit growth, as well as on ensuring stablefrom the previous year to 868.6 billion yen, contributed bybusiness income. Furthermore, this result exceeded the forecast

supply of products and reduction of total manufacturing andsales volume growth and improvement in wholesale revenue

we revised upward during the year. Effective sales activities

logistics costs. We also aimed to expand manufacturing

per case resulting from a series of price revisions

seizing growth opportunities from the heat wave, steady
execution of key initiatives for profitability improvement, andIn 2024, business income
surged by a factor of fivecompared to the previous year.

2023

accelerated transformation saving benefits contributed to theStrategic directions for 2024

delivery of business income exceeding the forecast.

Further profit growth backed by strong 2023 achievements● Implement top-line growth strategy focusing on profit maximization

● Build a business foundation that supports cost savings and profit growththrough further transformation

Year of Profit Focus
● Announced Strategic

Business Plan "Vision 2028"

● Return to profit ahead of plan

through profitability focusedcommercial activities and drive
transformation

2024 Targets
Revenue GrowthBusiness income

Cost savings%

billionyenbillionyen

Growth above volume

Mix improvement

confident that we have been able to build a further
strengthened business foundation for 2024, which is the firstyear of the strategic business plan "Vision 2028."

A year of strongly accumulating profits+1.6

Based on the strong performance in 2023, I am

10

vs Previous year

5 times

6

Transformation savings
vs previous year

1.6 times

Aim for further profit growth throughtop-line growth and transformation
cost savings in 2024
We have positioned 2024 as the "Year of strong profit buildup" and set an ambitious target of a significant profitability
improvement. We will focus on maximizing profit through theexecution of top-line growth strategies centered on
profitability, driving cost savings through company-wide

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

transformation initiatives, and further strengthening ourbusiness foundation, including investment in IT infrastructure.
Sales volume in 2024 is expected to grow by 0.5%

Value Creation Story

Growth Strategies to Enhance Corporate Value

Enhance medium- to long-term
improvement of shareholders value
and capital efficiency

Foundations Supporting the Corporate Value Growth

Data Section

the net income attributable to owners of the parent as
dividends based on comprehensive considerations ofbusiness performance and retained earnings balance, wefrom the previous year, accounting for the cycling impact of

We will strengthen initiatives for "investment for growth" andplan to pay interim and year-end dividends. We set thelast year's heat wave and impact of price revisions in May"efficient capital management" to enhance shareholder value

dividend forecast in 2024 to maintain the same annual

2024, despite continuing traffic recovery. Revenue isover the medium- to long-term. Based on the strategic

dividend per share of 50 yen as in 2023. Furthermore, we will

expected to grow by 1.6%, exceeding the volume growth,business plan "Vision 2028," we will enhance investment incontinue to execute financial and capital strategies toward

to 882.4 billion yen driven by top-line growth with price andtechnology and IT fields to build a foundation for promoting

increasing shareholder value while exploring all possibilities

mix improvement. Business income is forecasted to reach 10company-wide transformation, while control capitalfor further shareholder returns.

billion yen, an improvement of 8 billion yen from the previous

investment below depreciation expenses through efficient

Additionally, based on the strategic business planyear or five times that of previous year result.

and effective investment resource allocation. Furthermore,"Vision 2028," we will also focus on promoting strategies in

we will continue to optimize the balance sheet by selling

non-financial areas such as ESG (environmental, social, andwill focus on initiatives aimed at top-line growth strategy

fixed assets and cross-held shares, as well as implementing

governance) and human capital management. By further

centered on maximizing profits, such as investment in coremeasures to improve asset turnover and cash flow to achieveadvancing initiatives and transformations that contribute tocategories and product portfolio enhancement throughreturn on invested capital (ROIC) of 5% or more, as targetedvalue creation, we will strengthen the business foundation

innovation, further transformation in vending channel byin the strategic business plan "Vision 2028."

and continue efforts towards sustainable profit growth,

For key initiatives is 2024 in commercial activities, weleveraging technology, commercial activities focusing on

Regarding shareholder returns, while prioritizing stableprofitability including price revisions, and enhancement ofdividend payments and aiming to distribute 30% or more of24

working towards enhancing corporate value.

strategic partnerships with our key customers. In the
manufacturing and logistics area, we will strive for further
optimization of the supply networks through initiatives suchas building a flexible manufacturing network and the logistics
network to promote the "local production for local
consumption model", focusing on manufacturing products
closer to consumption market. In the back office and IT areas,
we will work on standardizing and automating businessprocesses by using technology, integrating various IT systems

Strengthen initiatives for Creating shareholder value

Implement initiatives to enhance capital efficiency for ROIC improvements
Capital Efficiency Improvement
Capital expenditure and depreciation● Make capital investment based on thestrategic business plan below depreciation
and by focusing on investments necessary forsustainable growth.
● Strengthen IT investment to build technology
foundation

Balance sheet optimization● Continue to reduce fixed assets andcross-held shares.
● Increase the asset turnover rate and improve

cash flows.

Shareholder Value Improvement
Shareholder return● Placing priority on stable dividend

payments, and the annual dividend forecast
for 2024 is 50 yen per share.
● O ngoing consideration of measures toincrease shareholder value

and data, and further promoting data-driven management.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

25

Strategic Business Plan "Vision 2028"

5 Year Strategic Business Plan Focused on Profitability and Capital Efficiency

Vision 2028 : Sustainable Profitable Growth
In August 2023, we announced a medium-term strategic business plan for 2024 through to 2028. In "Vision 2028," we will achieve profitable growth and build a cost structure thatis resilient to change by leveraging the business foundations we have built through transformation efforts to date and the many insights we have gained in a rapidly changing market
environment. We aim to achieve our target of a business income margin of 5% or more in 2028 by increasing revenue at an annual rate of 2-3% and reducing costs by a cumulative 25 to
35 billion yen through transformation. To achieve "Vision 2028," we will promote each strategy in collaboration with The Coca-Cola Company and Coca-Cola Japan Company.
Additionally, in terms of shareholder returns, we will focus on stable dividends during this period, while constantly considering measures to increase shareholder value.

Roadmap for Growth

Returning to a growth trajectory
and achieving sustainable growth
2019-2023

Driving transformation in achallenging business environment● Responding to unprecedented circumstanceswith agile management decisions● Accelerating transformation cost savings andbuilding a resilient business foundation● Strengthen earnings foundation withprice revisions● Promote digitalization◎ Established foundation for growth2028 Targets

2024 - 2028

Revenue

CAGR

Profitable growth andbuilding a cost structure
resilient to change

Sales Volumes

CAGR

Profitability-focused commercial strategy
Supply chain optimization● Operational process optimization● Financial strategies with ROIC focus● Strengthen ESG and human capital management●

Business
IncomeBusiness Income Margin●◎ Realize growth through the foundation built◎ Drive further transformation◎ Achieve historically high business income
in 2028

Transformation
Savings
CapitalInvestment
ROIC+ 2-3%+ 0.5-1%+ 5%
45-50 B JPY
25-35 B JPY
30-35 B JPY+ 5%AnnualAverage

Shareholder
Focusing on Stable Dividends
ReturnCoca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

26

To achieve profitable growth and a cost structure that is resilient to change, we will focus on three areas: commercial excellence, supply chain optimization, and back-office and IT
functions optimization. We will also work on our ESG strategy, human resources strategy, and financial strategy to strengthen the foundation that supports these goals. Our focus incommercial activities is to achieve sustainable profitable growth. For this, we will focus on investing in high value-added products, adopting appropriate growth strategies for each sales
channel, implementing flexible pricing strategies that will improve profit margins, and transforming vending channels. We will also take further steps to strengthen the supply chain
and optimize back office and IT functions by promoting data-driven management. In addition, we will enhance our corporate value over the medium to long term through our businessactivities by promoting ESG management and human capital management and strengthening our financial base.

Key Pillars for Achieving Strategic Business Plan

Vision 2028: Sustainable Profitable GrowthProfitable growth and build a cost structure resilient to change
Commercial
Excellence

Supply Chain
Optimization● Product strategies in-line with trends● Appropriate growth strategies
by channel● Profitability-focused commercial
activities● Vending transformation● Agile logistics● Building flexible
manufacturing structure● End-to-end integration● Leverage digital technology

Back-Office and
IT Optimization● Promote data-driven management● Efficient administrative andbusiness operations

Enhance: ESG / Human Capital / Financial Foundation

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

27

Profitability-Focused Commercial Strategy

Accelerate top-line growth basedon profit maximization
Executive Officer
President of Retail Company
Coca-Cola Bottlers Japan Inc.

Executive Officer,
President of Food Service Company
Chief Business Strategy Officer & Sustainability Officer
Coca-Cola Bottlers Japan Inc

Alejandro Gonzalez Gonzalez

Maki Kado

Disciplined execution of profit-focused commercial strategies
leading to revenue growth and profit recovery

New Commercial Organization aligned to channel characteristics

2023 was a year of strong top-line and bottom-line growth marked by the return to full year profit one

In January 2024, we restructured our commercial function to expedite decision-making and enhance

year ahead of the target set out in "Vision 2028." This was possible through the flawless execution ofefficiency, targeting channel-specific strategies in Over the Counter (OTC)*2, Vending, and Food

our profit-focused commercial strategies, while maximizing the favorable tailwinds, including theService channels.
This approach is designed to maximize profitability by adapting to customer characteristics,

heatwave, and pushing forward our transformation. We implemented two waves of price revisions, one
in May and another in October. These changes were necessary due to the prolonged impact of risingconsumption occasions, and changing market trends, strengthening our post-COVID-19

raw material and supply costs, increased energy prices, and fluctuations in foreign exchange rates.

competitiveness.
We will maximize profitability by further advancing our Commercial Strategy pillars: Enhancing

We continued our focus behind core brands, with Coca-Cola, Ayataka, I Lohas and Georgia.
We implemented a full renewal of coffee brand Georgia that led to expansion of our user base andPortfolio Edge, Vending Transformation, Profitability-focused Commercial Activities and Strengthen

accelerated the growth of the coffee category. We launched new products such as Aquarius New

Customer Management.

Water, Karada Refresh-cha Double, and Jack Daniel’s & Coca-Cola in ARTD* category tapping into
new customer needs and expanding into new segments.
We delivered solid profitable growth with wholesale revenue per case improvement across allchannels. In Vending, we grew our footprint of vending machines, increasing sales per machine
through pricing and product line-up management. In Convenience Stores, despite the challenging
competitive environment, we expanded the availability of our core portfolio and strengthened
customer engagement. In Supermarkets we continued to expand our space to sell and our efforts toimprove wholesale revenue per case. In Retail and Food Service channels, we successfully captured
the recovery in demand for dining out.
In summary, our strategic efforts and disciplined approach led to a strong recovery in
profitability for 2023. Anticipated market resistance to additional price revisions were effectively
controlled through disciplined collaboration with customers, leading to overall profit improvement.

Enhancing Portfolio Edge
Focus on core categories:
sparkling, coffee, tea and water● Offer products tailored to occasions to capturechanging consumer needs● Collaborate with Coca-Cola Japan to strengthen
product line-up

Vending Transformation●Top-line growth leveraging technology
Leverage Coke ON® and expand QR code*3
payment functionality● Further operation optimization●●Profitability Focused Commercial Activities
Growth strategy suited for each channel
and package● Flexible pricing strategy execution● Marketing activities focusing on high ROI programs● Improved profit visibility by account andaccuracy of profit management process●Strengthen Customer Management
Build strategic partnerships with key customers
Cross-functional commercial framework tostrengthen engagement● Implement strategies tailored to customer
characteristics in each channel●●*1 Abbreviation for Alcohol Ready To Drink*2 	Abbreviation for Over The Counter. Supermarket, Drugstores / Discounters, Online, Convenience stores, Retail, etc*3 QR Code is a registered trademark of DENSO WAVE INCORPORATED

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

28

For enhancing portfolio edge, we will focus on our core categories in sparkling soft drinks
coffee, tea, and water through industry-leading product innovation. We will partner with Coca-

The Japanese beverage Market

Cola Japan to implement strategic marketing initiatives leveraging unique assets such as Coke

The NARTD* market in Japan has been growing steadily, with the market scale expanding by about 1.8
times over the past 29 years.

STUDIO, to drive our strong brand portfolio.

*Non-alcoholic ready-to-drink

In our efforts to improve profitability in the vending channel, we will focus on activities on
promoting digitalization and increasing sales per vending machine.
We will implement several measures, including expanding QR code payment functions andstrengthening our product line-up using AI. Additionally, we will set appropriate prices andMarket Size (1995-2023 : based on production volume)

7%

Other
Juice

16%

install vending machines in high-profit locations.
In terms of profitability-focused commercial measures, we will capture growth
opportunities by expanding the number of profitable transactions, implementing a flexible
pricing strategy, and promoting the introduction of highly profitable packages in each channel,

Coffee

19%

Water

4%

8%
7%
Coffee 14%
Other

Sparkling

By Category
1995

23%

Sparkling

Juice

By Category
2023

Tea

16%

Tea

(including
black tea)(including
black tea)

24%
Sports 8%

Water

28%
Sports 6%

21%

such as strengthening the rollout of multi-packs. In addition, we will optimize market execution(thousand kL)

by appropriately managing these measures in each category.
We will continue to work in driving strategic partnerships with our key customers while
delivering appealing products and quality services that align with consumer and customer
needs. In 2024, our focus remains on accelerating sustainable profitable growth while delivering

23,23525,00020,00015,00012,732

10,000happy moments to our customers and business partners.

5,000
0

Reorganization centered on three channels to reinforce the execution of our growth strategy

Vending

OTC

Food Service

Steady implementation oftransformation to achieve
profitable growth andimprove efficiency

Product offerings tailoredto drinking occasions,profitability-focusedmarket execution

Expand number of stores
offering our products andoptimize equipment toimprove profitability

1995
1997
1999
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022 (Year)
Source: Japan Soft Drink Association, “Statistical Data on Beverages”

Our Sales Volume (2023 results)
Other
Online2%
5%23%Retail &FoodService

17%

7%

4%

PowderConvenience
Store

25%

14%

17%

S-PET

38%
By Package

Cans

13%

Sports

Syrup

5%

Water

Other

5%

11%

Bottlecan

By Category

Drugstore &Discounter3%

Sparkling

20%
By Channel

22%
CVS
On-Line

Juice
CoffeeVending

SMDD
RetailOther

Supermarket

11%
8%

Tea

23%

L-PET

23%

Coca-Cola Bottlers Japan Holdings Inc.

M-PET

4%

Integrated Report 2023

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Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

29

Profitability-focused Commercial Strategy
Initiatives by Category

Sparkling

CoffeeIn the sparkling category, we will pursue growth by focusing on our core products and theWe aim to increase our sales and market share with a two-brand strategy centering on

introduction of new products.

Georgia and Costa Coffee.
The THE series, the main products of the Georgia brand, were fully renewed in

For the Coca-Cola brand in 2024, we will focus on promoting the consumption of all
Coca-Cola products. We will achieve this by tapping into the demand for Coke as a drink to

February 2024. Georgia's patented double aroma sealing technology was combined withaccompany meals through the "Niku niwa Coke" (Coke with Meat) campaign. Additionally,

brain science to enhance the aroma of freshly ground beans and freshly brewed coffee.
For Costa Coffee, we have worked to evolve our PET bottle coffee so that it is richer

we will run a campaign leveraging Coca-Cola's unique music experience.
The Fanta brand has been fully revamped for the first time in five years. This effort
aims to establish new drinking habits through a new campaign titled "do as you like"and has a higher-quality flavor in pursuit of tastiness on the level of the coffee served in acafé.

in Japanese.

Tea

Alcohol

In 2024, we will significantly renew existing brands and introduce new products to revitalize

In 2023, sales volume of alcohol products struggled to grow. However, Jack Daniel's &the tea category. This includes Ayataka, which was fully renewed in April 2024 for the first

Coca-Cola, the first Coca-Cola branded ARTD was launched in April, it was a new addition

time in seven years, with changes in both flavor and packaging, we will broaden the rangethat contributed to our sales. Because the unit price of this product is high, it contributedof users through strategic communication. A new product, Yakan no Koi Mugicha wasto the revenue growth of the overall alcohol category.

launched from Yakan no Mugicha, barley tea brand, which is a food with function claims.
We aim to expand our product line-up and increase revenue.

In 2024, we redesigned the packaging for Lemon-dou. We also launched Jack
Daniel's & Coca-Cola Zero Sugar in April as part of the Jack Daniel's & Coca-Cola series,
continuing to offer high value-added products to our customers.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

30

Profitability-focused Commercial Strategy
Initiatives by Channel — Our unique vending machine services
Vending (Vending Machines)
We install vending machines in accordance with the ever-changing flow of people. We effectively introduce flagship products,
new products, and products that are exclusive to vending machines. We carefully select product lines tailored the characteristics of locations.
We leverage Coke ON®, Coca-Cola’s official app, in our marketing activities. With these and other measures, we are working every day to make our vending machines
more attractive. In addition to the use of AI and big data in commercial activities, we take steps such as shifting to on-line-connected vending machines thatencourage greater use, in an effort to stimulate the growth of sales, streamline vending machine operations, and improve visiting frequency to vending machines.

● QR de kessai payment service expands● Providing an appealing buying experience through Coke ON®

— Now downloaded more than 50 million times“Coke ON®” is an official Coca-Cola smartphone app that offers both great value and convenient.

The QR de kessai, payment service was launched in May 2023, making more than 15 QR code

Users can earn free drinks by collecting stamps through the app. Since its launch in April 2016,

payment services available on vending machines. It allows customers to buy products using

the app has added functionality while meeting changing consumer needs. This includes

a smartphone to scan a QR code displayed on the vending machine.

Coke ON Pay which supports various payment services, campaigns where customers can collectMore payment options will be added and this will help us to capture demand which will

additional drink tickets, and the addition of a charge function to Coke ON Wallet on vending

manifest in forms such as the increased use of QR code payment by inbound tourists to andmachines which began in 2024. The intent of these efforts is to offer more attractive purchaseresidents of Japan. Our target is to offer services with about 200,000 vending machines within

experiences.

2024, mainly at locations with higher needs for cashless payment.

The Coke ON app had been downloaded more than 50 million times in 2023, with morethan seven million downloads over the year. This growth is helping to increase customer
engagement with our products and vending machines. Looking ahead, we will continue toPurchasing products with a QR codeprovide appealing services and expand functionality.

2023

Number of downloads (times)
2022
2021
2019
2018
2016

Launch50 million

43 million

30 million

15 million

10 million

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

31

Profitability-focused Commercial Strategy
Initiatives by Channel — OTC and Food Service
We deliver products from the Coca-Cola Company to customers via multiple sales channels.

Convenience Stores

We engage in meticulous commercial activities. Our product line-up and commercial strategy

In 2023, we increased the line-up of Hajime, a closed-loop

are thoroughly adapted to the sales spaces in each sales channels such as OTC channel and therecycled PET bottle, and digitally promoted products using

food service channel.

apps and in-store media, thereby capturing more demand.
In 2024, we will accelerate the growth of ourconvenience store channel through measures such as the introduction of a high-value added

Supermarkets, Drugstores & Discounters

Costa Coffee 440 ml PET bottle product, the improvement of the one liter PET bottle productWe are working on proposing optimal productline to meet the changing needs of customers, the rollout of new products and products that areline-up and sales spaces in stores based on consumer

exclusive to customers’ value chains, and products and promotions aimed at stimulating theinsights and developing promotions that complement

simultaneous purchase of products in the food category.

different seasons and events. In 2023, we captured

Retailmore demand by strengthening our small-volume

Retail is a wholesale channel for delivering products to a broad range of customers such as

products to suit customers’ beverage consumption

stores at offices and schools, leisure facilities, and liquor shops.

occasions and needs.

Considering the characteristics of immediate consumption

In 2024, we will collaborate with various eventschannels in particular, focusing on concession stands, we rolled

in developing sales spaces and campaigns, aiming toout a digital promotion using QR code stickers enabling users torevitalize our sales spaces. We will also makeparticipate on the spot. In this way, we are advancing digital

category growth possible by engaging in efforts suchmeasures to address consumers’ needs.

as the strengthening of our label-less products

We will strive to create an optimal product line-up anddesigned to meet the needs of consumers.

sales spaces that enable consumers to pick up Coca-Cola

Onlineproducts in many different occasions.

In 2023, we introduced channel-dedicated products geared

Food Service

toward online customers and sold label-less products, demand

Food service is a wholesale channel for selling products to restaurants and other businesses

for which continues to grow. This contributed to the growth ofand offering products and opportunities to consume beverages to customers.

customers’ and our own revenue.
As people’s desire to go out increases in 2024, we pursue

By identifying the changing needs of customers,
we continue to capture demand. An example of this is ourcontinued growth by launching new products that are packed

collaboration with food delivery companies. In addition, we arelabel-less and are suitable for “on the go” occasions andactively working to gain new customers by, for example, attracting

releasing new products in the expanding market of foods with

Generation Z and the increasing number of tourists to Japan.

function claims. The goal of our effective investments promoted

With our unique line-up of products and the measures,in connection with advertisements and our continued

we deliver happy moments to everyone in an effort to enhance

operational improvement is to increase both revenue and profit.

our brand value.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

32

Profitability-focused Commercial Strategy
Responsible commercial practices

The Company has the mission to "Deliver happy moments to everyone while creating value.” Led by the CCC & VOC* Planning Section,
we are building a system to live up to customers’ expectations and facilitate communication in a way that is always sincere, open to everyone and easy to understand.
*CCC (Customer Contact Center), VOC (Voice Of Customer)

Voluntary declaration of consumer-orientation

To further live up to expectations

To be the partner of choice of all customers, we expressed our alignment with the

We ask customers who submit complaints to“consumer-oriented business management” recommended by Consumer Affairs Agency in 2022.

fill out questionnaires to review our services

We also published our consumer-oriented voluntary declaration and, in May of the same year,

and see if they would purchase a Coca-Cola

were recognized by the Consumer Affairs Agency as a business operator that had publishedproduct again. We will work to become moresuch a declaration. Going forward, we will continue to practice “consumer-oriented businesscapable of living up to customers’

management” based on five policies and work together with customers.

expectations so that they say they will buy Coca-Cola products like they have been doing.

We uphold the following
consumer-oriented voluntary declaration
当社が掲げる消費者自主宣言
of Employee Awareness3 Promotion
and Activities

1

Our Commitment

We deliver safe and secure products andservices that provide our customers withthe same happy moments as always.

Governance and
2 Enhanced
Cross-Functional Efforts
We treat inquiries, requests, and suggestions asopportunities to communicate with ourcustomers, and will promptly share informationinternally, including with management.

We build an environment that enables us to respondpromptly and appropriately to customer inquiries,
requests, and suggestions.

4 Active Communication
We proactively disclose information on our community
initiatives and quality control to ensure the safety andsecurity of our customers, through our website andintegrated reports.

I will continue to buy
Coca-Cola products(2023 survey results)● Efforts to satisfy customers
To share customer inquiries, feedback and complaints throughout the company, the CCC & VOC
Planning Section distribute "Weekly Hot Voice," a newsletter sharing the opinions of customers,
via our in-house social media application and intranet.
We also ask customers who submit complaints to fill out questionnaires to review ourcustomer service operations and see if they would purchase a Coca-Cola product again. We
have built a system that our local representatives to make customer service responses to live up to
the expectations of our customers. Many customers who have submitted complaints say that theywould continue to buy Coca-Cola products or would buy even more Coca-Cola products.

Mechanism to ensure customer satisfaction
Coca-Cola (Japan)
Company

to Capitalize on
5 Systems
Customer Voice in the BusinessResponse

We listen to and appreciate the voices of ourcustomers. We reflect them to improve our products
and services, as well as create value

Customers

CCC & VOC
Planning Section

VOCManagement

Inquiry/Complaintand engage in marketing that does not directly target children under the age of 13. Our business
operations are based on sustainability, our business goals, and business practices that arecompatible with our values as we seek to grow in the right way and continue to fulfill our
responsibilities to local communities.

Response

Relateddepartments
Analysis

CustomerContact Center

Cooperation

SurveyAction anddiscussion

Responsible marketing
We comply with The Coca-Cola Company's Responsible Marketing Policy for all of our products

97%

Local representative
Improve products and service

Development
andimprovement

Our customer service processes and management system comply with the ISO 10002 (JIS Q 10002) international standard for handling complaints.
The goal of the ISO 10002 (JIS Q 10002) international standard is to continually improve product and service quality and processes for handlingcomplaints.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

33

Supply Chain Strategy for Greater Efficiency

Supply Chain ”Vision 2028”
Safely Delivering 100% Quality and Customer Service, at the Optimal Cost to ServeSCM Evolved to Meetthe Needs of "Vision 2028"

Achieving Supply Chain Excellence is built on 8 Pillars
Customer Back

Supply Chain is synchronized from the Customer Back,
while cooperating to find joint value

Agile Logistics
Executive Officer and CSCO (Chief Supply Chain Officer)
Coca-Cola Bottlers Japan Inc.

Andrew Ferrett

Strategic infrastructure consolidation, asset utilization and
3PL contract management enable Agile Logistics to adapt market requirement

End-to-End Integration

End-to-End Integration to optimize Supply Chain Cost to Serve,
while maintaining Customer Service objectives

Flexible Manufacturing

Responsive, Flexible Manufacturing enabling the Supply Chain,
and achieving high utilization

Eight Pillars of the New SCM Strategy
The SCM Division has introduced a new SCM strategy starting in 2024 that is in line with
"Vision 2028," which aims to “Safely Deliver 100% Quality and Customer Service at the
Optimal Cost to Serve.”
This strategy consists of the following key elements.

●

Creating an environment of Zero Harm where everyone can work safely and securely with asmile.

●

Continuation of the Active Quality program●

Build a diverse foundation of Inspired People that work together to achieve profitable growth.

●

Digitally Enabled supply chain with Agile Logistics, Flexible Manufacturing, and End-to-End
Integration and consistent processes based on accurate and real-time data and information.

●

Strengthen Customer Back initiatives and proactively collaborate with customers to create
mutual value

We will work to transform our supply chain through the eight strategic pillars above.

Zero Harm

Safety is designed into facilities and embedded in people andprocesses to achieve Zero Harm and make a workplace
employees can work with peace of mind

Active Quality

License to trade protected and enhanced throughan Active Quality program which also supports Supply Chain productivity

Digitally Enabled

A Digitaly Enabled, process and information driven organization
designed to increase the quality and speed of decision making

Inspired People

Securing human resources and Inspired People who are highly engaged,deliver high quality outputs and who are developed as Performance andChange Leaders at all levels, are essential for business continuity

And Supported by 5 Principles
Commercial Collaboration to ensure the best service and profit outcomes for CCBJI
Productive inventory is increased throughout the Supply Chain by improving inventory flow and velocity● Costs are reduced through efficiency improvement and waste elimination- Costs are eliminated, reduced or kept flat to create Lean Supply Chain● To enhance corporate value, Sustainability built into all Supply Chain decisions and actions● Transformation is delivered through Step Change projects and optimized through Kaizen activities●●

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

34

Supply Chain Strategy for Greater Efficiency

Stable supply / Productivity improvement

Our manufacturing and distribution sites

In all areas of the supply chain, we promote initiatives to ensure a stable supply of high-quality
products at a optimal cost.
In product supply, we implement the Sales and Operations Planning (S&OP) process incooperation with the sales division to improve the accuracy of demand forecasting, accelerate

17Plants 2Mega DCs

decision making, and reduce transportation distances by promoting local production for local
consumption in product supply, thereby optimizing costs throughout the supply chain. In
manufacturing, we are also making various improvements to create manufacturing available
time and boost productivity to realize the flexible manufacturing of a wide variety of products insmall lots while maintaining high quality. Additionally, in logistics, we are building a system that

Saitama Plant (Saitama Prefecture)
Hakushu Plant (Yamanashi Prefecture)

Akashi Mega DC (Hyogo Prefecture)

Saitama Mega DC

In operation since July 2022

(Saitama Prefecture)enables efficient and stable product supply by consolidating inventories stored at sales centers

In operation since February 2021

and promoting optimal inventory allocation and the consolidation of sites by operating megadistribution centers in Saitama and Akashi.

Supply chain that continues to be chosen by customers and suppliers
We are committed to creating a supply chain that continues to be chosen by our customers andsuppliers. We are focusing on creating a safe and secure work environment by complying withlaws, regulations, etc. and integrating sustainability into our decision-making and actions in allareas of our supply chain.
In logistics, which has been the focus of much attention this year, we are working to
reduce driver workload and time restraints by reducing transportation distances through thepromotion of initiatives for a local production for local consumption product supply system.
Additionally, we are reducing vehicle waiting time using digital tools and the introduction ofvehicle reservation management systems at warehouses. We are actively collaborating with ourcustomers, logistics partners, different industries, and other companies on delivery and shared

Akashi Plant (Hyogo Prefecture)
Daisen Plant(Tottori Prefecture)

Zao Plant(Miyagi Prefecture)

Hiroshima Plant(Hiroshima Prefecture)

Ibaraki Plant(Ibaraki Prefecture)

Komatsu Plant(Ehime Prefecture)

Iwatsuki Plant(Saitama Prefecture)

Kiyama Plant(Saga Prefecture)

Tama Plant (Tokyo)
Ebina Plant(Kanagawa Prefecture)

Tosu Plant(Saga Prefecture)
Kumamoto Plant(Kumamoto Prefecture)
Ebino Plant(Miyazaki Prefecture)

Kyoto Plant(Kyoto Prefecture)
Tokai Plant(Aichi Prefecture)

warehousing. We will continue to explore collaborations to build win-win relationships thatcreate new value.
Details of the list of business locations
https://en.ccbji.co.jp/corporate/locations/plant.php

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

35

Supply Chain Strategy for Greater Efficiency
Product quality and safety
Quality assurance

Raw materials management

Fostering an awareness of quality

In our provision of safe, high-quality, fresh, and refreshing

The coffee beans and green tea leaves we use as raw

Our employees are encouraged to increase their awarenessproducts and services to our consumers, we believe thatmaterials fully comply with the Principles for Sustainableof quality with the goal of providing safe and high-quality

quality is the top priority and we strive to maintain andAgriculture (PSA).* Some suppliers and brands have acquired

products to customers.

improve quality in all of our business processes.

third-party certifications including fair trade, 4C and GAP*2● QA (Quality Assurance) Monthly Reportcertifications. All of the raw materials we procure are

A report is sent to division heads every month.

certified by the GFSI.*3

The division heads communicate information such as

In addition to adhering to national standards basedon a basic approach to quality, the Coca-Cola System uses
a unique management system called KORE (Cola Operating
Requirements), which is common worldwide, to manage
operations.
KORE is a system that encompasses standards
concerning quality, food safety, the environment, andindustrial safety and health throughout the process from theprocurement of raw materials to manufacturing, distribution,
sale, and delivery of a product to customers. It meets therequirements of ISO international standards and applicablelaws and regulations while imposing more rigorous standards
on Coca-Cola.**We comply with the ISO 9001 quality standard, the FSSC 22000 food safety standard, theISO 14001 environmental management system standard, and the ISO 45001 occupationalsafety and health standard. All of our factories have acquired these certifications. Our sales
centers and offices have also acquired ISO 14001 certification.

1*1 PSA (Principles for Sustainable Agriculture): The new sustainable agricultural principles ofCoca-Cola System reflecting the latest science and the perspectives of stakeholders.
The PSA are applied for agricultural products and packaging materials.
*2 Fair trade: A system for certifying that farmers, who are in socially disadvantageous
positions, are guaranteed fair prices for their agricultural products.
4C (the Common Code for the Coffee Community): A certification system for thesustainable cultivation and processing of coffee
GAP (Good Agricultural Practice): Referred to as JGAP in Japan and as ASIAGAP in other
Asian countries and run by the Japan GAP Foundation. A system for certifying themanagement of agricultural production processes aimed at ensuring sustainability, foodsafety, environmental conservation, work safety and other matters. Compliant with the
Ministry of Agriculture, Forestry and Fisheries Guidelines on the common Good Agricultural
Practices (GAP) standards. Global GAP is run by German company FoodPLUS GmbH.
*3 GFSI (Global Food Safety Initiative) private organization of globally operating foodcompanies designed to approve food safety management standards to enhance foodsafety and consumer trust. Global distribution and retail industries and their business
partners advance the introduction of GFSI. The GFSI approves fourteen certification
standards including the ASIAGAP standard (Ministry of Agriculture, Forestry and Fisheries).

quality-related events and actions to correct these events.
● Sixty-second quality lessons
Periodically, we hold short lessons on product quality using theintranet, aiming to increase our employees’ awareness of quality.
● Quality surveys and quality inspection
Members of our divisions supervising quality assurance visit
manufacturing, logistics and sales worksites to check thestatus of quality control on the worksites, identify potential
risks and work to prevent risks through communication to
make necessary improvements.
● Videos for customer relations
In partnership with Coca-Cola (Japan) Company, Limited.,
we make and stream videos explaining our actions for productsafety and reliability and answering simple and honest
questions about our products in an easy-to-understand manner.

Basic approach to quality

1

Our divisions understand their roles andresponsibilities, and implement
customer-driven quality control.

2

We consider quality to be the top priority
in our work every day.

3

Each one of us keeps quality in mind andacts to enhance our brand value.

Videos for customer relations in Japanese

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

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

36

Procurement Strategy that Leverages the Strengths of the Coca-Cola's System
Procurement strategy leveraging economies of scale and the advantage of Coca-Cola System

Contributing to the improvementof performance and value creation
as a world-class procurement
organization to achieve
the targets of Strategic Business Plan
"Vision 2028"

Global procurement
Each ofglobal suppliers

the Coca-Cola System

Information
sharing

The business environment is full of uncertainties, including the

Bulk purchasing of
raw materials,
supplies, etc.

Bulk purchasing of
raw materials, supplies, etc.

Suppliers

CCBJ H
Determination of detailed
specifications and conditions

Yoichi Nishiguchi

The Coca-Cola System's global
procurement organization that aims tooptimize cost and quality leveraging thescale advantages of global procurement

Information sharing /Coordination

Joint procurement in Japan

Executive Officer and CPO (Chief Procurement Officer)
Coca-Cola Bottlers Japan Inc.

Promoting efficient global procurement activities

CEPG：Cross Enterprise Procurement Group,

Negotiation and determination
CEPG, the globalof general framework
procurement network offor terms of purchase

Payment ofservice charge

Purchasing of beverage baseHokkaido
Coca-Cola Bottling Co., Ltd.
Michinoku
Coca-Cola Bottling Co., Ltd.
Hokuriku
Coca-Cola Bottling Co., Ltd.
Okinawa
Coca-Cola Bottling Co., Ltd.

Information sharing / Coordination

Coca-Cola (Japan) Company

Promoting sustainable procurement
in collaboration with suppliers

Discovering latent needs by promoting
data-driven procurement

rising cost of raw materials and energy, the fluctuation of

We are working towards a World Without Waste, the Coca-Cola

To realize data-driven procurement, we are working to improveexchange rates, declining birthrates, aging populations, andCompany's global Vision by developing a new model for

operational quality and efficiency by introducing the indirect

labor shortages due to the 2024 issue in the logistics industry

collecting empty PET bottles and cans. We are reducing

materials procurement tool SAP Ariba,*2 improving operational

in Japan. These uncertainties significantly impact thecontainer weight and packaging volume while increasing the use

efficiency using RPA,*3 and reviewing and standardizing theperformance of our business.

of sustainable materials.

procurement process associated with the establishment ofRegarding the impact of commodities and exchange rates,

To respond to climate change, we contribute directly and

NeoArc. Furthermore, we will work together with

we are strongly promoting procurement cost optimization byindirectly to GHG reduction measures through our procurementcompany-wide IT strategy to promote the reform of thestrengthening collaboration, including sharing best practices andactivities, such as the utilization of renewable energy at our

procurement system.

information with CEPG and overseas bottlers, implementing risk

plants, the use of fuel-efficient vehicles, the development andhedging measures at the appropriate time in collaboration withintroduction of sales equipment that reduces powerbusiness intelligence (BI) tools, AI, and machine learning to

the Finance Division, cooperating with domestic bottlers

consumption and GHG emissions, and the strengthening of theperform data-based analysis and forecasts, risk management,

implementing joint procurement,* and becoming a world-classsustainable procurement of raw materials and supplies.

and early recognition and responses to procurement risks. These1

procurement organization.
We have also built relationships of trust with our

In promoting strategic procurement, we will also utilize

In carrying out these activities, we ask the suppliers wemeasures will help us identify potential procurement needs,

work with who are good partners to comply with our Supplierformulate optimal procurement strategies, and make prompt

suppliers through fair and equal transactions to maximize

Guiding Principles which reflect our values regarding humandecisions, promoting sustainable procurement strategies tomutual benefits and promote sustainable growth.

rights, the environment, and labor.

achieve the targets of the Strategic Business Plan "Vision 2028."*1 An initiative centralizing procurement at CCBJH, including negotiations with suppliers, tosource items that are required by all of the domestic bottlers, such as sugar and other raw
materials, PET bottles, and other supplies and vending machines.

*2 A cloud-based B2B transaction system*3 Abbreviation for Robotic Process Automation. A technology for operatinga software-type robot in substitution for a human

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

37

Optimizing back office and IT functions
IT Strategic Overview

We are leveraging technology to standardize, streamline, automate, and enhance the quality of our business processes.
By launching transformative projects, we are building platforms to revolutionize our management and work style throughout the value chain, with technology as a key enabler.

Implementing Transformation with Technology
We have promoted various operational transformation, including process improvement andautomation in our back office. Continuous investment and optimization of our operations

Currently

Main Initiatives for the future

have been our focus. To elevate this further, we have launched a major transformation project.
We aim to define an optimal operating model for the company and design a superior businessmodel. We believe that by leveraging cutting-edge technology and strengthening thecapability of our employees to harness this technology, we will be able to realize the Strategic
Business Plan.
We possess market data for our sales areas, including Tokyo, Kyoto, Osaka, and 35
other prefectures. Utilizing this vast amount of data, we will implement a series of measures● Business transformation in

back-office operations areprogressing, but there is stillroom for improvement acrossthe entire value chain.
● We possess a huge amount ofdata with potential for
effective use.

based on our transformation project. Our goal is to advance data-driven management andachieve world-class operations by 2028 through building robust technology infrastructure
and processes for advanced decision-making by leveraging various data.

Long-term partnership with Accenture, Inc.
In August 2023, we entered a long-term partnership with Accenture, Inc. As a result of
this partnership, we established a joint venture company, NeoArc Inc. in January 2024.
This joint venture consolidates back-office services, including the IT department, to further● Leverage technology to further standardize,streamline, automate, and improve the qualityof our business processes● Drive the digitalization of our entire value chain

through the transformation of processes and IT,
including data integration andvarious IT systems● Build technology infrastructure and processes● Partial optimization of various

IT systems is progressing, butthere is still room for overall
optimization.
● We launched a collaborative

framework to maximize theuse of our knowledge andexperience and Accenture's
expertise.

for advanced decision-making throughfull-scale data utilization by 2028

We established NeoArc Inc., a joint venture withAccenture, in January 2024. NeoArc will improve theoperational efficiency of management and office
work by consolidating some corporate functions,
including the IT function, and support the creation ofa foundation for our data-driven management.

enhance operational efficiency in management and office work (See pages 39 and 40).
In addition, we will proactively incorporate outside knowledge from Accenture tocarry out work style reforms that maximize the use of the company-wide technologies
mentioned above.

Furtherpromotion ofdata-driven
management

Achievingworld-classoperations

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

38

Optimizing back office and IT functions
Driving DX with an eye on cyber risks

In addition to delivering safe products for customers to drink with peace of mind, we are also working to improve and strengthen cybersecurity measures as
we make fundamental changes in our business to respond quickly to diversifying customer needs, and are advancing digital transformation (DX) in various areas.

DX initiatives to support workplace operations

Delivery management operations that were previously paper

Cybersecurity and systems are one of the major risks that

Commercial Division initiatives

based have now been consolidated into a smartphone app,

could have a significant impact on the Company's financial

1 Salesforce Automation (SFA)

making them paperless, enabling automatic checking.

position, business results, and cash flows. In today's digital

SFA is a salesforce support system that aims to increase

By reducing the workload and time associated with deliveries,

environment, we believe it is crucial to detect cyber incidents

and improve productivity in sales. In each commercial

we are contributing not only to improving our own operationsin advance. We take various countermeasures to prevent

channel (Vending, OTC, and Retail & Food Service), sales

but also the operational efficiency of our partner companies.

customer loss, maintain confidence, and protect our financial

representatives use SFA on a daily basis to create customer

3 Introducing functionality that enables remote monitoringstability. We identify risks that could lead to businessvisit plans and manage To-Do lists. They also use SFA tosuspension or information leaks caused by system failures

share customer information and business negotiation details.

The status of production equipment and safety equipment at

and cyber incidents. For example, we prepare response

Confidential information such as customer information is

our factories is monitored in real time. In the past there wereplans to mitigate damage in case of system failures, identify

appropriately protected and managed in accordance withsites where all equipment and facilities had to be patrolledthreats in advance, and improve and strengthen system

Japanese laws and regulations.

on an hourly basis. Since the introduction of the system, thesecurity by conducting cyber-attack simulation tests.

2 Transforming the vending machine business (VM DX)

length of time spent monitoring by human operators per day

We have established an organizational structure for security

In the vending business domain, which is a key pillar of ourhas been reduced by average 150 minutes per plant. When aincident response.

profits, we are working to transform our business model by

problem does occur, we can respond more quickly than before,making full use of digital technologies. Examples include

and achieve a faster recovery.

Improving cyber security

It consists of BJI CIRT*, departments related toof manufacturing processes

incident response, and external organizations.

improving vending machine filler productivity by expanding

This enables us to respond effectively to various risks.

online payment services, and introducing QR-code payment

Bottom-up digital transformation (DX)We also work to ensure that employees are fully

based on the cashless payment needs of users in Japan andInitiatives allow employees with no previous IT experience tothose from overseas.

develop software robot and automate their operations. Thisaware of cybersecurity. Using e-mail, our company intranet,and e-learning to share information relating to thorough

SCM Division initiatives

effort is guided by the key phrase "citizen development ofobservance of rules and security, we are working to raise

1 Transformation in manufacturing and logistics (SCM DX)

robots”. As of the end of November 2023, there are aroundcybersecurity awareness among all employees.

In SCM, we are working to digitalize S&OP with the aim of

600 software robots in operation within the Company, more

improving supply and demand forecasting from procurement

than of which 300 were created through citizen development

and production to sales, and optimizing it using supply

by employees. In March 2024, the number of participants

planning data. We are also driving DX in manufacturing andin training for this citizen development has exceeded 1,000.

logistics by incorporating cutting-edge automated warehouse

Going forward, we aim to improve the digital literacy of thesystems at our Akashi and Saitama Mega DCs.

whole company, and efficiently improve operations as we seek

2 Shifting delivery management operations to smartphone

to achieve further transformation.

*An abbreviation for Cyber Incident Response Team

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

39

Establishment of NeoArc Inc.
In our Strategic Business Plan, the Coca-Cola Bottlers Japan
Group aims to grow into a world-class bottler with excellent
cost efficiency and profitability. In January 2024, as part of
the “Back Office and IT Function Optimization” in the plan,we established NeoArc Inc. as a joint venture company
with Accenture Japan Ltd., which has deep knowledge andGlobaltechnology
expertise

Deep industry
and customer
expertise

experience in the fields of IT consulting, digital technology,
BPO*1 and, ITO*2. NeoArc is off to a good start in a large
partnership between two companies that have different
backgrounds and capabilities, leveraging our respective
strengths to move towards a common goal.

Digitalization &data capability

HumancapitalNeoArc will provide a broad range of service functions,
including human resources, general affairs, finance,

Corporate Functions & IT
OPERATIONS

procurement, customer contact centers, sales support,
governance, training, and IT operations/development for theentire Group. NeoArc will transform and improve processes,

Building technology foundation and processacross CCBJH group for data-driven decisions in the future

streamline and standardize operations, and evolve ourservices into higher value-added offerings. In addition, by
making thorough use of digital technology, NeoArc will beable to provide services that go a step further. Coca-Cola
Bottlers Japan, NeoArc, and Accenture will work together

Neo”New,” “Next Generation,” “Future”
in Greek

in the dynamically changing beverage market and rapidly

Means new forms and derivations● Introduce new approaches and innovations● A symbol of breaking away from old concepts and being future-oriented

evolving technology environment, and ensure sustainable

Innovation and evolution

growth. This collaboration will significantly contribute to the●to achieve efficient management, maintain competitivenessrealization of the data-driven management of the Coca-Cola●●

Embrace changes and drive innovation
A symbol of changes and hopes

Arc

Architecture●●

Possess deep knowledge and expertise
Professionals who structure processes and technologies

Arch
Connects different elements and concepts like a bridge
Work together to create a strong bridge (company)● A symbol of partnership●●

Bottlers Japan Group.
*1 BPO: Business Process Operations*2 I T O : Information Technology Operations

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

40

Establishment of NeoArc Inc.

Message from the President of NeoArc Inc.

Realize a New Operating Model
Within a Major Partnership

Strength of NeoArc

Head of Finance Operations Division, Coca-Cola Bottlers Japan Inc.
President, NeoArc Inc.

Satoshi Kon

Creating the future by combining diverse humanresources, extensive knowledge, and technology
In the current situation where the world is experiencing

the initiative of the entire Coca-Cola Bottlers Japan Groupto build its technology infrastructure by 2028. We will also

Reviewing business operations fromscratch to achieve efficiency

significantly transformation our own processes.

significant, discontinuous change, I feel that innovative
improvements starting from the present are insufficient
to provide new value and services. It is important to

Aiming to be a company
where each individual can shine

have a strong mindset for change, incorporate ideas and

NeoArc's greatest asset is its human capital. Enhancing thetechnologies from both inside and outside the Company, andadded value of our employees is directly linked to increasing

create a future that does not exist today.

the added value of the Company. Human resources

At NeoArc, the momentum for change is spreading,development is the most important action for the Company.

as employees are planning and organizing workshops for

We aim to become a professional group in each area

themselves to change their way of thinking to achieve theby acquiring business operation skills, as well as the ability

ideal state. They are establishing a learning community whereto drive change and a mindset for further growth. We will

they can learn about technology and methods of businessactively implement capacity building and reskilling for thisprocess transformation. I am confident that, by partnering

purpose.

with Accenture Japan Ltd., we can create unprecedented

can grow together with the Company, their individuality

diverse experiences and knowledge for meaningful debates.

and thoughts are respected, consideration is given to theirFirst, we will focus on building effective processes andCarving out careers for employees
through business transformation

We will build an organization where each employee

value and a brighter future by bringing together people with

developing individual skills to improve efficiency and quality.

Exploring new business opportunities
with data analysis

career development, and they can work with enthusiasm andcuriosity.

Over the medium to long term, we will fully participate in

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

SpecialFeatureValue Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

41

Cross-functional Project to Revamp S&OP Process

Transforming the S&OP process toensure the stable supply of products
and constructing an optimal supply
chain that adapts to sudden changes
in demand

In January 2022, we launched an internal project to transform the Sales and Operations Planning (S&OP) process.
The goal is to rebuild the S&OP process to ensure the system can stably supply products and adapt to sudden changes indemand. Core members of the commercial, SCM, finance, procurement, corporate planning, and IT divisions participatedin this project. They repeatedly discussed cross-divisional process improvement to increase the accuracy of demand
forecasting and ensure the ability to flexibly supply products in the peak summer season.
As a result, the project improved the process by solidly linking cross-functional information in the abnormally hotsummer of 2023. Swift recovery actions achieved the highest-ever shipment levels and reduced costs. Four key project
members look back at the way our S&OP process has evolved and and at what this change did for CCBJH.

Hiroshi Endo

Yumeno Yamauchi

Kazuaki Fukuda

Hiroshi Miyai

Sales & Demand Planning Department Manager,
Sales & Demand Planning Department
Commercial

Supply Chain Finance Director,
Supply Chain Finance Department
Finance

Head of S&OI Department, S&OI Department,
Integrated Supply Chain Division
SCM

Head of SCM Business Process Innovation Group Division,
SCM Business Process Innovation Group Division
SCM

He joined the company in 1992. He is a long-serving
team member who has experienced several corporate
integrations and organizational changes. His current
duties are to forecast demand and adjust the
supply-demand balance. Another mission of his iscomputerizing demand forecasting.

She worked consistently in the field of financial affairs
at international companies in different business sectors.
She joined CCBJI in 2021. She is general manager of the
Supply Chain Finance Department in the Financial Division.
As a business partner in the supply chain, she works on
different company-wide projects, mainly focusing on thoseof financial aspects such as the improvement of capital
investment efficiency and cost cutting.

He joined the company in 2005 immediately after
graduating from university. He was transferred to the
supply chain department after five years
as a salesperson. Since 2021, he has been in charge of
S&OP implementation. His duties are to achieve stablesupply and optimize the supply-demand balance.

He was the initial leader of the S&OP Process
Innovation Project. He joined CCBJI in 2021
after for both a Japanese and an international
manufacturer. His mission is to maximize performanceby improving operational processes
in the supply chain.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Implementing a cross-functional project toaddress problems with the existing S&OP process■ Miyai ■ Core members at the time

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

and financial divisions. We soon discovered problems and increased

the S&OP Process Innovation Project

our flexibility to address them.

was launched in January 2022 are■ Yamauchi ■ I believe all employees recognized the significant

now reunited here. At the beginning, I was the leader. Starting in the second year, Mr. Fukuda has

results achieved from our two-year operation based onassumed the role.

a company-wide demand forecast. The results were evident in■ Fukuda ■ We had been working to improve the S&OP process for some time. In the past, thevarious KPIs. For example, we saw improvements in the accuracy of

mechanism for orienting all of the team members with different job functions in the same direction

the S&OP process, a stable supply, reduced costs, and a lower disposal rate.

did not work well in some parts. For this reason, it was likely that inventory adjustments were

■ Endo ■ In the commercial Division, the leader of the sales staff fully agreed to the concept ofnecessary in the summer. To enable the inventory to recover, we drove across the country. This

improving the S&OP process and gave instructions to their team members. I suppose that thisincreased transport expenses greatly, which was a vicious cycle. For this project, we brought together

thorough approach may have pushed the project forward.

HiroshiEndoover 50 team members from various divisions within the company.

■ Fukuda ■ Calin (Representative Director and President) had long said, "Business as usual is not■ Yamauchi ■ At the beginning, it had about 10 core members. We started by closely discussing

an option." I feel that was significant in the sense that his words created a spirit of transformation

the issue. In our company, it used to be common for individual divisions to act independently.

among the employees. With this spirit, the new S&OP process was put into practice inWe had few opportunities to use a cross-functional approach to take on a single issue.

a very short period of time. In the summer of 2022, extreme heat came very early. That generated■ Fukuda ■ Yes. In summer, we would receive complaints about the inaccuracy of the demand

the risk that inventory adjustments would be necessary. Despite this, we managed to overcome

forecast from the SCM Division, on the other hand we would receive a complaint from the Sales

the tough period through concerted efforts across the company.

Division about having to adjust product inventory during the most important period in summer.

■ Endo ■ I joined the company in the 1990s. At that time, there were 17 separate bottlers in
Coca-Cola System in Japan. After several reorganizations, the size of the company increased. In

Developing multiple scenarios using financial
evaluations and building a consensus in advance■ Yamauchi ■ Before the summer of2022, we planned several supply anddemand scenarios. We reachedthis process, new problems sprang up regarding collaboration between the divisions. Thisa consensus on the cost and extent of actions needed for a full response before summer.

instigated a review of operations from scratch.

That was a great advancement.

Navigating in the hot summer 2022with the company sharing
a goal and all of the divisions cooperating

Hiroshi
Miyai

42■ Yamauchi ■ From a financial point of■ Endo ■ Inventory adjustments, especially during the summer, place significant stress on theview, to improve the S&OP process, a single

commercial team. While our basic goal is to avoid these adjustments altogether, it is important todemand forecast shared by the whole

have pre-planned measures that enable supply to be flexible at the minimum inventory level (SKU)

company that integrated multiple internal

and to communicate these measures in advance. Successfully coordinating these strategies acrossplans was needed. However, how to achieve this was unclear. I

different divisions of the company has greatly increased our confidence.

suppose that the greatest achievement was building a consensus■ Yamauchi ■ The commercial finance, supply chain finance, and financial planning and analysis

among all the divisions to act based on this single demand forecast.

(FP&A) teams worked with individual divisions to translate multiple scenarios into numbers and■ Miyai ■ Indeed, at the time the project was launched, we spent theobtained an internal agreement in advance through S&OP process with a view towards thelongest time forging a shared S&OP concept. We drew up a vision ofcompany's total optimization.

the S&OP that the project should achieve. We then established a■ Fukuda ■ You may tend to think that S&OP is only an SCM and commercial issue. However,process to realize S&OP through the collaboration of the sales, SCM

we presented comprehensive optimization simulations created by the Finance Division regarding

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

matters that could trade off benefits and losses among divisions. This hugely improved theis very accurate. However, this is supported by the skills of our personnel. We will take on the task of

accuracy of planning and helped everyone understand the ideal state.

making this system more versatile and digital. I suppose it is vital that we change our mindset toEntrenching the transformed S&OP process
as a part of the organization's culture

Kazuaki
Fukuda■ Miyai ■ The numbers clearly demonstrate that

ensure that the personnel who possess unique skills fully leverage digital technologies.

our financial position in 2022 and 2023 has■ Fukuda ■ My division is also dependent on a limited number of members who play central roles in

improved due to the transformation of the S&OP

operations. We are considering introducing a system in the future that will give high marks to people

process. The point of greater importance is that this was not a one-off

who transform their operational knowledge in a way that enables third parties to utilize it.

event. The new S&OP process is a sustainable mechanism that has■ Yamauchi ■ Associating the accumulation of knowledge in a digital form with personnel

become entrenched as a part of our organization's culture.

evaluations is a brilliant idea.

■ Fukuda ■ To publicize the transformed S&OP process and ensure it■ Miyai ■ To truly benefit from digitalization, it is crucial to transform our traditional, tacit

is understood within the company, we provided training to over 2,000

knowledge into explicit, structured knowledge. By integrating this with best-in-class practices frommanagement-level personnel between the summer of 2022 and theoutside the company, we can push forward with our unique approach to digital transformation (DX).

spring of 2023. This enabled the trainees to increase their understanding of the transformed S&OP

■ Yamauchi ■ When we think of the huge size and time span of our supply chain as prerequisites forprocess, the proper linkage of information, and to think about what they could do for the S&OP

our business, we need to consciously work on change management to succeed in our organizational

process as a matter they could take ownership of. We also distributed an e-learning program to all oftransformation. The whole organization needs to take the position of always seeking to evolve.

the employees. For division heads and higher-level personnel, we held an in-person workshop. A
survey conducted after the training program revealed that 98% of the trainees wanted it continued.

■ Endo ■ In 2022, the trend in operational improvement became observable. In 2023, we managed

Using the results of the project for implementing
the strategic business plan "Vision 2028"■ Fukuda ■ After constructing
a foundation by transforming the S&OP
process, a system is being constructed

to maintain the supply-demand balance during the very long late summer heat. It was a symbolic

to plan from a longer-term perspective. Guided by the strategic business plan "Vision 2028," weachievement enabling the sales staff to realize that the operational process had really changed.

prioritize planned investments in accordance with the five-year business plan of the commercial■ Miyai ■ It takes about five years for companies that successfully transform their S&OP process

Division in consideration of the opinions of the Financial Division. We are discussing a long-term

to implement their new process at the working level. We transformed our process and produced

infrastructure investment plan.

positive results in the first year, and then took different measures in the second year. This enabled■ Miyai ■ It is important that we incorporate the achievements of the project into our normal

us to make the new S&OP process an entrenched part of our organization's culture. In addition,business operations, ensuring that these activities continue and evolve without reverting to

we introduced some ideas about communication, including Calin's distribution of information on

old practices.

our company social-media and the sharing of S&OP news on our intranet.

■ Yamauchi ■ In "Vision 2028," we have established numerical targets and medium-term

Continuously advancing DX
and change management in the future

43■ Miyai ■ To push the transformation of theinvestment plans for individual projects. Achieving these goals

S&OP process one step further, we currently

requires a specific mindset and effective change management. It isneed to improve the reliability of the data

remarkable to see everyone working together towards these goals.

required for decision making and the speed at which we acquire it to establish an optimal■ Endo ■ As a member of the commercial Division, I strongly feeldecision-making process. To achieve this, we are exploring the implementation of new demandthat these results are great. Our successful response to the recent

forecasting systems and supply chain planning systems.

extreme changes in the climate is a testament to the valuable■ Endo ■ Compared with the demand forecasting systems of bottlers around the world, our system

contribution of our improved S&OP process.

YumenoYamauchiCoca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Foundations
Supporting the Growthof Corporate Value
45 Sustainability Strategy
Natural Environment—Packaging and recycling (circular economy)—Mitigation of and Adaptation to Climate Change—Water Stewardship—Sustainable Conservation of Biological Resources
Communities—Contribution To Local Community Development—Healthy Products/Services

56 People Strategy
People—Diversity, Equity and Inclusion—Employee Development & Wellbeing

61

Risk Management Strategy
Responding to Climate Change and Natural Capital

67 Corporate Governance Strategy
Organizational Design
Operation of the Meeting Bodies
Executive Compensation System
External Activities
Policy on Cross-Shareholdings
Directors—List of Directors—Appointment of Outside Directors and Independence Criteria—Attributes of Directors and Skills Matrix
Messages from Outside Directors
Ethics and ComplianceIntroduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

45

Sustainability Strategy
Sustainability Committee promotion system

Sustainability strategy withcreating shared value (CSV) asa foundation of management

Sustainability promotion flow

Executive Officer,
Head of Executive Officer
Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer,
President of Food Service Company
Chief Business Strategy Officer & Sustainability Officer
Coca-Cola Bottlers Japan Inc

Sustainability Committee operations

Board of Directors
ReportChairperson

MonitorReportMonitorPrimarily composed of ELT* members anddepending on the agenda, related executives may
also participate

AgendaPolicies and strategies on various sustainabilityrelated issues, particularly climate change areas
and biodiversity conservation

Frequency

Quarterly

TCFD Working Group

Details of implementation are reported to theBoard of Directors in the Business Execution
Report.
● Agenda items requiring resolution are referred to
the Board of Directors●

Reporting

Align

Functions

Maki Kado

MemberSustainability Committee
Secretariat : Sustainability Strategy Division

Representative Director, President and CEO*An abbreviation for Executive Leadership Team. Management organization in CCBJI Group including CEO and function heads

At the CCBJH Group, our mission is to deliver happy

entire value chain to steadily advance toward our objectives

that we have received from the CDP*1 in their sustainability

moments to everyone while creating value. This mission

and realize our sustainability strategy.

survey.

In 2023, we identified 13 material issues unique to

In 2023, in line with our CSV Goals we established alives of people through our products and services. Every

our Group, including Water stewardship. As a business

Sustainability Committee to strengthen the development

employee is dedicated to providing value that leads to joyful

reliant on the invaluable resource of water, our sustainabilityof policies and strategies related to various issues including

moments and precious events in people’s lives, ultimately

efforts focus on preserving and sustainably managing theseclimate change and biodiversity. On this committee, the ELT

contributing to a better future. To achieve this, we have maderesources.

discuss sustainability issues then communicate the decided

encapsulates our strong commitment to enriching the daily

creating shared value (CSV) a cornerstone of management.

Since 2006, we have been carrying out water

direction and strategies to ensure all functions carry out
sustainable activities efficiently and comprehensively.

This means enhancing both economic value through businessconservation activities in the water source areas of our

growth and social value through addressing social issues. This

plants. We have signed agreements with local communities

is the basis of our sustainability strategy.

and municipalities to conserve water resources, promoting

related risk selection and growth opportunities as well asactivities to enhance the water retention and recharge

climate change and other sustainability topics.

To address our materiality issues, we have also set non-In 2023, the committee broadly discussed sustainability-

financial "CSV Goals" as specific numerical targets. To achieve

capabilities of the watersheds around our plants. In 2023,

Our goal is to become the company of choice forour goals, we implement numerous initiatives and conduct

these initiatives enabled us to return more than four times

customers by collaborating closely with our clients andscenario analyses to realize our sustainability strategy. As wethe amount of water used in our products to the watersheds

suppliers on sustainability initiatives. We will continue topursue these measures, we continually monitor our progresssurrounding our plants. These comprehensive efforts earned

address a range of societal challenges with a proactive andand apply the Plan-Do-Check-Act (PDCA) cycle across our

us our first A list rating, the highest rating for water security

sustainable approach to enhance our corporate value.
*1 Not-for-profit charity that runs the global system for companies and municipalities todisclose their environmental information

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

46

Sustainability Strategy
Natural Environment — Packaging and recycling (circular economy)
Achieving a World Without Waste (Zero-Waste Society)
In 2018, The Coca-Cola Company set a global target to reduce environmental impact and achieve a World Without Waste.
To support this goal, the Coca-Cola System in Japan established the 2030 Packaging Vision in January 2018, and updated it in July 2019 to be achieved ahead of schedule.
This 2030 Packaging Vision consists of three pillars: Design, Collect, and Partner.
With specific targets assigned to each pillar, our goal is to reduce packaging waste and promote the recycling of plastic resources in Japan.

2030 Packaging Vision of the Coca-Cola System in Japan—Roadmap and Results

2020 Results

2019 Results

2021Results

2022 Results

2023 Results

2025 Target

2030 Target
Sustainable
material-utilization●

DesignInitiatives toreduceenvironmental
load

●

●

I Lohas,natural mineral water,
100% Recycled PET
Bottle● I Lohas,
natural mineral water,label-less launched●●

Eestablished the 2030
Packaging Vision

Sustainable
materials utilization

100% rPET bottles
introduced for major
Coca-Cola products

50%Lightweightpackaging for
Coca-Cola 700ml
PET bottles

42g

Coca-Cola label-lessbottles with stickers
introduced for alimited time only

Zero use of new fossil fuels●

Target achieved
1st Quarter

27g

100%

Switch torecyclable
materials in all
packaging●

Sustainable materials* usedin at least 90% of products

New Coca-Cola package
design displaying “100%recycled PET bottle”

Sustainable
materials in all
PET bottles

35% reductionof PET plastic used●

Amount of PET plastic used
per product (compared with 2004)

Amount soldCollect
Establish
recycle scheme●

Partner●

Variouscollaborations

Switch to use ofsustainable materials
in all PET bottles

Closed loop PET
bottle recycling for
Hajime Ryokucha
Ichinichi Ippon●

Consortium established by
Tokyo Metropolitan
Government and Japan Soft
Drink Association●"Recycle Me Again" logo
introduced●

Participated in International
Coastal Cleanup●

Launched bottle-to-bottle
recycling venture with
Yoshimi town in Saitama
Prefecture

Expanded to the Hajime
series●Participated in Plastic
Circular Challenge 2025●

Started a circular economy
project with Saitama
Prefecture and Urawa Reds

Amount collected●

Collection of one PET bottle
for every Coca-Cola productsold in Japan●

Collaborate with a range ofpartners to build and maintainmore reliable packaging
collection and recycling
schemes*Recycled PET materials from bottle-to-bottle and plant-derived PET materials

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

47

Sustainability Strategy— Packaging and recycling (circular economy)

DesignCollection and partnership

As of December 2023, we have introduced 100% recycled● Collaboration with local governments● Collaboration with business partners

PET bottles for 38 products across four brands*, including

We are working with local governments on

We collaborate with our business partners to promote

our flagship product, Coca-Cola.

"bottle-to-bottle" projects. These projects aim to bringbottle-to-bottle recycling. In August 2023, we launched

To make it easier for customers to choose

together citizens, businesses, and governments to makea collaborative project with Honda Mobilityland Corporation

environmentally friendly products, we introduced newused PET bottle collection and recycling more reliable.

to collect used PET bottles at Suzuka Circuit and recycle

packaging for Coca-Cola in September 2023. The text

We have been working on making agreements for horizontal

them into raw materials for use in our products.

“100% recycled PET bottle,” previously displayed on therecycling of PET bottles since 2022. As of December 2023,

side, is now prominently featured on the front of the bottle.

we have signed agreements with 11 municipalities.

Our label-less product range, which debuted in April

Our collaboration with local governments also takes

In February 2024, we implemented a bottle-to-bottle
recycling system at Sanfrecce Hiroshima’s new homestadium, Edion Peace Wing Hiroshima. We collect used PET2020 with I Lohas, natural mineral water, now comprises 59

place at public events like the February 2024 Saitama

bottles on match days for recycling. We also use our vending

products across eight brands, including Coca-Cola, Aquarius,

Marathon. The event, hosted by Saitama City, demonstrated

machines and recycling boxes at the stadium to raise visitor

Ayataka, Canada Dry, Georgia, Karada Sukoyakacha, anda successful collaboration of bottle-to-bottle recycling.

awareness about the proper separation and collection of

Sokenbicha tea. We plan to continue expanding theseOn the day of the event, we collected used PET bottles fromthese bottles.

offerings.

water stations and recycled them into raw materials.
These materials were then transformed into packages for*Achievement of the Coca-Cola System in Japan as of December 2023

Launched in September 2023, the new Coca-Cola package design
prominently displays the text“100% Recycled PET Bottle”on the front.

Coca-Cola products at our plants.

“Bottle-to-Bottle”recycling banner displayed at water stations to promote
recycling awareness among runners and spectators

Promoting proper waste separation at Sanfrecce Hiroshima’s new stadium

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

48

Sustainability Strategy— Mitigation of and Adaptation to Climate Change

Climate change action targets

Scope

3

The Coca-Cola Company and the Coca-Cola System in Japanare committed to reducing greenhouse gas (GHG) emissions

Scope

Carbon offset vending machines

3(Compared to 2015)

Aluminum can horizontal recycling(CAN to CAN)

throughout the supply chain in line with the Paris Agreement

Since March 2023, we have introduced carbon offset vending

The CAN to CAN initiative uses recycled aluminum materialand science-based absolute reduction targets, while seeking

machines that effectively reduce operational CO2 emissions

from used cans collected from recycling boxes next to ourto grow the business at the same time. As stated in our non-to virtually zero. With a feed-in tariff non-fossil certificate*2

vending machines and uses them for containers. In December

financial CSV Goals, we aim to reduce our Scope 1 and 2

equal to the annual electricity consumption of the vending

2022, we began manufacturing three products using recycled

GHG emissions by 50% and our Scope 3 emissions 30% bymachines, the machines installed on our customers’ sites arealuminum material obtained through the CAN to CAN initiative

2030. We also aim to achieve net-zero GHG emissions byconsidered to be using electricity generated from renewable

for the can bodies. In April 2024, we expanded this practiceenergy sources, helping to offset their CO2 emissions. Our goal

to include the caps as well, using 100% recycled aluminumis to support our customers’ efforts towards a decarbonized

for both the bodies and caps of the cans. This change is

2050.

● Specific Initiatives

Electric vehicles as part of
Scopesthe social implementation of
1and2
energy management systems

society by installing carbon offset vending machines that are

expected to reduce CO2 emissions generated in the aluminum

familiar to general consumers across our areas of operation.

bottle manufacturing process by about 37%* compared to*2 A certificate that extracts and visualizes the environmental value of electricity
generated from renewable energy sources (non-fossil power sources), such as solar,
geothermal, and biomass.

conventional methods. This initiative helps promote thecircular use of aluminum cans in Japan and contributes to the

Since April 2023, we have been working with Commercial

reduction of CO2 emissions.

Japan Partnership Technologies Corporation to develop*3 Compared to the amount of CO2 generated in the process of manufacturing
conventional 400 ml aluminum bottles. Based on research by Altemira Co., Ltd.,a supplier of recycled aluminum bottle cans.

and implement an energy management system in Tokyo,
supporting their mission to establish a carbon-neutral

Greenhouse gas reduction targets of the Coca-Cola System in Japan
Reduction of GHG emissions

society. In the same year, we introduced FC*1 electric trucks

2030 Reduction Targets(Compared to 2015)at our Shinsuna Sales Center and battery electric vehicle
trucks at our Haneda Sales Center. Our objective is to18%

Approx.

9%

Approx.

identify and address any social challenges that may arise in
the implementation of electric vehicles.

Scope

1

Scope

57%

Approx.

*1 Fuel Cell

2

Representative efforts of the Coca-Cola System●

Direct GHG emissions

-50%

●

Introduce renewable energy
Improve energy consumption
at plants and offices●

Improve distribution/transportation

Indirect emissions
from use of electricity/heat purchased from third parties

82%

Approx.

Promote introduction ofbottle-to-bottle (horizontal)
recycling and 100% rPET
bottles● Improve vending machine
operation and optimize
the value chain
●

Scope

3

https://www.ccbji.co.jp/news/detail.php?id=1397

2015

2030

GHG emissions
across ourvalue chain

-30%

CO2

emissions to

drop

60%*
per bottle

approx.

* Assuming a switch from ordinary PET bottles to 100% rPET bottles

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

49

Sustainability Strategy— Water Stewardship
Targets and progress

Coca-Cola System water cycle concept

Understanding that water is a vital resource for our business operations, we have committed to

We categorize water at our facilities into two main groups: water used for manufacturing andreducing water usage by 30% by 2030 and maintaining a 200% water replenishment rate until 2025.

water contained in our products, and we manage both types appropriately.

(both compared to 2015) In our plants, we strictly control water usage to minimize waste during

To ensure that our business activities are sustainable within the natural water cycle, it isproduction. We continuously optimize our manufacturing processes and equipment, setting precise

crucial to maintain and improve the health of entire watersheds. Our efforts are centered aroundtargets for lowering the water use ratio (WUR)—the amount of water used per liter of productthree key practices: reducing water consumption in manufacturing (reduce), managing

produced. Additionally, we are dedicated to returning the same amount of water to the environment

wastewater in factories (recycle), and researching and conserving local water sources (replenish).

that use in our products, ensuring that we sustainably nurture forests in our water source areas andhelp preserve their water resources. To achieve these objectives, we collaborate with local

Major water indicators and results

communities and experts to promote our water conservation efforts.
Goal in 2030:
Reduce water
usage by 30%

2023

Actual20%

Goal in 2025:
Maintain a 200% water
replenishment rate

Water used for manufacturing

2023

Actual411%

3

Water used in products

GOAL 1

Plant operations
Achieve 100% water
recycling for the 175
high-risk plants by 2030
to enhance water resource
sustainability.

GOAL 2

Watersheds
Collaborate with partners to
improve the health of 60
crucial watersheds for ourbusiness and our agricultural
supply chain by 2030.

GOAL 3

Communities
From 2021 to 2030, return

Global vision for water security strategy
Water is not only the primary ingredient in many ofour products but also central to the sustainability of
our operations and community hygiene.
In March 2021, The Coca-Cola Company

4,165 thousand kL
YoY+ 1.9%
Amount of water used to
produce 1 L of productStrategy 2030. Additionally, in March 2023,
the Company disclosed the details of its global
goals related to its focus areas. Under this strategy,
we promote activities based on three pillars—plant
operations, watersheds and local communities—in

communities worldwide.

Change fromthe previous year

- 0.05L/L

Replenishment area
Approx.

Water
recycling•Source water vulnerability
assessment•Development andimplementation of source
water protection plans

River

- 1ha

Water replenishment rate

411%
YoY

- 2.1point

Water source conservationagreements

17plants

Total

Groundwater
Natural water
sources

Plant
Water used in
products

8,135 haChange fromthe previous year

various countries and regions worldwide.

https://en.ccbji.co.jp/csv/environment/?id=tab2

Reduction of
water
consumption

3.20L/La total of 2 trillion liters ofwater to nature and to

Water used for
manufacturing

Rigorous and proper
water treatment andreturn to nature(WUR: Water Use Ratio)

announced the global framework for its water
conservation strategy through 2030, Water Security

Reduce & Recycle

13,365 thousand m
YoY+ 0.6%

Water source
conservation agreementswith source areas

Replenish

Replenishment throughforest conservation,
rice field flooding,and grassland restoration

Enhancement ofreplenishment capacity
to steward groundwaterand give back to nature

Water used for manufacturing：Water is used in the manufacturing process for cleaning andcooling purposes, which is then collected, treated and recycled. After rigorous and proper
water treatment, it is discharged into rivers.
Water used in products：Through conservation activities, such as afforestation, thinning, rice fieldflooding and grassland restoration, we improve the replenishment capability of water sources andhelp steward groundwater to ensure its abundance, ultimately returning water to nature.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

50

Sustainability Strategy— Water Stewardship
Reduce: Water usage reduction in plants
In our factories, we prioritize the efficient use of water

Replenish:
Investigation and conservation of local water sources

during manufacturing while adhering strictly to the quality

In the Coca-Cola System, we work with specialized institutions

standards set by the Coca-Cola System’s uniqueto scientifically identify the water sources of all of our plants.

management system, KORE. To achieve this, we have

After assessing the vulnerability of these water sources, we

introduced cutting-edge technologies and equipment thatdevelop conservation plans for them and review themeffectively conserve water. We also collect, treat, and recycle

regularly. Based on our conservation plans, we implement

water used in the cleaning and cooling processes during

disaster response measures and carry out replenishment

manufacturing, enabling its circular reuse.

activities in the water source areas of our plants.

Agreement with Tabayama, Yamanashi
and Hachioji, Tokyo

Tabayama, Yamanashi

Water source conservation agreements
and replenishment rates

These initiatives have reduced the water use ratio(WUR)—the amount of water used per liter of product● Replenishment activities in plant water source areas

Plants*Conservationwatersheds

Partner
municipalities

Partnerorganizations

produced—to 3.20 liters by the end of 2023, a steadyAt all 17 of our plants, we conduct replenishment activities todecrease of 20% from 2015.

nurture and maintain healthy water sources. These initiatives

Recycle: Wastewater management in plants

are carried out in forests and other water source areas of our

17

15

23

29

After circulating within the factory, water is purified using

plants, in collaboration with landowners, municipal

the activated sludge method with microorganisms.

governments, and forestry associations through conservation

Our wastewater management strictly adheres to the mostcontracts.

rigorous standards, whether required by local laws such as

Since 2006, we have been proactively engaged in water

the Water Pollution Control Law, or the internal guidelines ofresource conservation. Currently, we are working withKORE.

52 organizations, including 23 municipal governments, inOnce we rigorously and properly treated the water, and

15 watersheds to conduct replenishment activities.

Replenishment
rate

Area

Zao

Zao, Katta-gun, Miyagi Prefecture

100% or more

239ha

Iwatsuki,
Saitama

Katashina, Tone-gun,Gunma Prefecture

500% or more

1,747haIbarakiIshioka, Ibaraki Prefecture

500% or more

1,000haTama

Hinode, Tokyo

Less than 100%

1ha

Ebina

Atsugi and Ebina,
Kanagawa Prefecture

500% or more

1,487haShirasu

Hokuto, Yamanashi Prefecture

100% or more

282ha

Ena, Gifu Prefecture

100% or more

211ha

Kyoto

Ujitawara, Tsuzuki-gun,Kyoto Prefecture

100% or more

307ha

AkashiTambasasayama, Hyogo Prefecture

300% or more

655ha

DaisenHouki, Saihaku-gun, Tottori Prefecture

500% or more

427ha

resources in the watershed around the Tama Plant. ThroughHiroshima

Mihara, Hiroshima Prefecture

500% or more

705ha

the collaborations with both municipal governments, we aim

Komatsu

Saijo, Ehime Prefecture

100% or more

100ha

Tosu andKiyamaTosu, Saga Prefecture / Kiyama,
Miyaki-gun, Saga Prefecture

100% or more

451ha

Tama Plant’s water sources by 2030. Additionally, we aim to

Kumamoto

Aso, Kumamoto Prefecture / Ozu,
Kikuchi-gun, Kumamoto Prefecture

300% or more

320ha

improve the health of the watershed and protect its

Ebino

Ebino, Miyazaki Prefecture

500% or more203habiodiversity.

*Coca-Cola Bottlers Japan’s 17 plants as of the end of 2023

● New initiatives in Tama Plant's watershed
In June 2023, CCBJH and the Coca-Cola (Japan) Company,
signed agreements with Tabayama in Yamanashi Prefectureand Hachioji in Tokyo to protect the sustainable water

Wastewater
treatment facility andregulating pond
(Ebino Plant, Miyazaki
Prefecture)

Water source agreement area

Tokai

returned it to rivers as clean water, restoring it to the naturalenvironment.

Plant

to achieve a 100% replenishment rate for the

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Foundations Supporting the Corporate Value Growth

Data Section

51

Sustainability Strategy— Sustainable Conservation of Biological Resources
The CCBJH Group’s environmental policy states that one ofrestoring biodiversity. They also received lectures from experts● "Water Source Forest Ebino" recognized asa Nature Symbiosis Site by the Ministry of the Environment

our critical missions is to efficiently utilize water and natural

to deepen their understanding of the serious consequences of

In March 2024, the CCBJI

resources and preserve a sustainable global environment for

deer overgrazing, which had resulted in the deterioration ofForest of Water Sources infuture generations. As a business that relies on water, it isunderlying vegetation in the forest. Participants also set up

Ebino, associated with ourimperative that we conserve forests, grasslands, and otherprotective fences around kinran, an endangered orchid species

Ebino Plant in Miyazaki

water source areas and ecosystems. Under our CSV Goals,

classified as vulnerable II (VU) by the Ministry of thePrefecture, was designated as a Nature Symbiosis Site by the

we are committed to reducing and optimizing water usage

Environment, to protect it from deer, helping the plant survive

Ministry of the Environment in support of the achievement of theand maintaining water replenishment rates. By promoting

and aiding the restoration of the local flora. Participants also

30by30 target.

water conservation and replenishment in our priority areas,

set up protective fences around kinran, an endangered orchid

we strive to preserve biodiversity.

species, to protect it from deer, helping the plant survive andcommunity forest that serves as the water source for our● Wildlife damage control and biodiversity conservationin Tambasasayama

the restoration of the local flora.

Ebino Plant. In 2014, we signed a forest conservation

Since 2008, following an agreement with Hyogo Prefecture on

fence, we observed a significant increase in vegetationand the Nishimoro District Forestry Association to carry out

corporate forestation activities, we named part of thediversity within the fenced area—from approximately ten to

replenishment activities. The forest is home to a rich andPrefectural Sasayama Forest Park, that has long served as aabout thirty species. Notably, the population of kinran, an

diverse group of species, including freshwater crabs, Indian

crucial water source for our Akashi Plant as "Water Source

indicator species, increased from four to eight plants. New

rice frogs, black kites, green pigeons, and damselflies. Our

Forest Tambasasayama", and we have engaged in onging

species, such as Viburnum dilatatum and Callicarpa japonica,

ongoing water replenishment activities here aim to contributeconservation efforts in this area. In collaboration with thealso appeared, indicating steady progress in the recovery ofto the conservation of this biologically diverse woodland.

Hyogo Prefectural Government, Hyogo Prefecture Greening

biodiversity.

Biodiversity conservation

Promotion Association, Tamba-Sasayama City, TambaSasayama City Property District,KinranViburnum dilatatum

In November 2023, one year after the installation of the"Water Source Forest Ebino" is a roughly 203-hectare

agreement with Miyazaki Prefecture, Foothill Common Forest,*1 Deer grazing intensity increases as deer populations grow, resulting in deer consuming
plants that would have been left untouched.

Hyogo Tamba Forest Association,● Participation in the 30by30 Alliance for Biodiversity

and Hyogo Prefectural Federation of

In July 2022, we joined the 30by30 Alliance for Biodiversity,

Forest Owners Cooperative

a collaborative platform supporting the global mission to

Associations, we launched the "Learn

halt and reverse the decline of biodiversity, reflecting ourfrom the Forest" project in November

dedication to achieving sustainability. The alliance, consisting2022. Employees from Akashi Plant

of volunteer corporations, municipal governments, andand their families. Participants,

organizations from both the private and public sectors inincluding employees from our Akashi

Japan, was established to conserve and protect at least 30%

Plant, learned about the significanceof the world’s land and marine areas by 2030, promoting theof community forest conservation in

global 30by30 conservation target.

Promoting biodiversity
using an app

As part of our biodiversity conservation efforts we haveintroduced the Biome app provided by Biome Inc. asa corporate mobile application. This interactive wildlife
collection app allows users to experience the importance of
biodiversity in an engaging way. By collecting and analyzing
data on local animal and plant species using the app, we
also aim to contribute to the achievement of the 30by30
conservation targets.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

52

Sustainability Strategy
Communities — Collaborative activities in plants watershed
Coca-Cola Learn from the Forest project

Cleanup activities

To preserve water resources, anThis learning experience is made possible throughIn collaboration with our partners,

important resource for our business,

partnerships with local governments, forestry associations,

we are committed to achieving the

we are dedicated to waterand community organizations.

2030 Packaging Vision throughreplenishment projects in thewatersheds surrounding our 17 plants.

In 2023, approximately 700 people participated in thelocal cleanup efforts.

project, which was expanded to include Yamanashi andWe participate in river and ocean

Saitama Prefectures for the first time, in addition to 12 othercleanups to improve the healthplants not only store water but also play a crucial role as

locations, Miyagi, Ibaraki, Tokyo, Kanagawa, Gifu, Hyogo,of the watersheds surrounding

habitats for flora and fauna. We have enacted the Coca-Cola

Tottori, Hiroshima, Kumamoto, and Miyazaki Prefectures.

our plants.

The watersheds around the

Learn from the Forest project. The goal of the project is to
educate both community members and employees about the● Community cleanup activities

importance of this irreplaceable resource and the preservation

As part of the global vision of a World Without Waste, theof the biodiversity unique to each region.

Coca-Cola System in Japan has been participating in theInternational Coastal Cleanup (ICC) since 2007.*The Coca-Cola Learn from the Forest project is ahands-on environmental education program that enables

In 2023, we held a cleanup event in Yoshimi-machi,

participants to learn about the importance of nature and water,human interactions with nature, and environmental protection.
Aso, Kumamoto

Saitama, near our Saitama Plant. Nearly 50 CCBJI members
Learn from the Forest in
Yoshimi, Saitama

Learn from the Forest in
Hakushu, Yamanashi

participated in the event, including Representative Director
and president Calin Dragan. About 40 members of the

Ishioka, Ibaraki

Coca-Cola (Japan) Company also participated, led by Vice

Manufacturing plants and“Learn from the Forest” projects names

President Miyoko Tanaka. Also in attendance were the Town
Mayor, Yoshio Miyazaki, officials from Yoshimi town hall andrepresentatives from nonprofit organization greenbird and

Iwatsuki Plant/Saitama Plant

Yoshimi, Saitama

Ena, Gifu

Yoshimi, Saitama/Katashina, Gunma

FamilyMart Co., Ltd.

Hakushu Plant

Akashi Plant

Hakushu, Yamanashi

Zao Plant

Akashi, Hyogo

Daisen Plant

Houki, Tottori

Zao, Miyazaki

participants collaborated as

Ibaraki Plant Tama Plant

one team, working towards

Ishioka, Ibaraki

Hiroshima Plant

Mihara, Hiroshima

Ebino, Miyazaki

Zao, Miyagi

Tosu Plant/
Kiyama Plant

Tosu and Kiyama, Saga

Ebino Plant

Higashi-Kurume,Tokyo*To be held in
Hachioji from
2024

Komatsu Plant
Saijo, Ehime

Kumamoto Plant
Aso, Kumamoto

the realization of
a World Without Waste.

Ebina Plant
Tokai Plant

Nakanohou, Gifu

Ebino, Miyazaki

Altogether, around 100

Kyoto Plant

Ujitawara, Kyoto

Atsugi,
Kanagawa*International Coastal Cleanup (ICC) is the world’s largest coastal cleanup campaign.
It was established by the largest marine conservation organization in the United States as
an environmental education center for marine life. ICC is known for its worldwide reachand standardized approach to promote gathering data on marine debris which is used toaddress global waste issues.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

53

Sustainability Strategy— Contribution to local community development
Joint community projects between industry, academia,
government, and the private sector

Company sports● Red Sparks Hockey Team● Para-athletes and deaf athletes

We partner with local governments, educational institutions

The CCBJH Group contributes to regional economic

We recruit para-athletes and deaf athletes to support

and community organizations to implement regional

revitalization through its business. It also values the role thatendeavors of people with disabilities. In addition to pursuingcooperation projects that assist youth initiatives to address

sports play in bringing excitement to communities andboth sports and professional careers, our athletes contributesocial challenges and contribute to achieving the SDGs.

fostering communication with local residents. Our Coca-Cola

widely to the community through classes for creating a

Red Sparks Hockey Team strives to win throughout theshared future, such as providing, as a group, disability

season while also proactively participating in community

awareness classes and barrier-free sports experiences.

Miyagi

In partnership with Sendai and the non-profit

organization Wakatsuku, we organize the Sendai Youth Awards,

events to promote a bright and vibrant community where

which recognizes the contributions of youth organizations toeveryone can thrive. The team offers sports clinics tosolve social issues.
Fukushima

In partnership with Fukushima Prefecture andSaposen, a regional support center in Fukushima, we run the
Challenge Internship Project. This project aims to educate young
people about regional issues and the appeal of Fukushima.
Mie

In collaboration with Mie Prefecture, Dr. Masao Aoki’s

encourage physical activity, enhance skills, and provide safecoaching methods for young people. We will continue to aim
to be a team beloved by the community. Our sports clinics
create opportunities for young individuals to work out theirbodies with safe and effective coaching methods.

research lab at the Faculty of Humanities, Law and Economics
at Mie University and the non-profit corporation M-Bridge, weorganize the SDGs workshop, Mie Mirai. This workshop explores
challenges and opportunities to enhance Mie’s appeal.
MiyazakiSports clinic and hockey classes
Number ofclinics held

21

Number ofparticipants

3,034

We support Miyazaki SDGs Action, a project thatbrings together businesses, students, businesses people ofdifferent generations and from different backgrounds to learn
and discuss sustainable economies and societies.

By participating in these diverse projects,

Haruki Masanari(Para Athletics
Javelin Throw)

Kazuhiro Takai(Deaf Athletics High Jump)

Future co-creation classes/disability awareness programs

7times 1,110 participants
5times 1,300 participants

Classes we give byvisiting schools
Events

Official results for 2023
Winner of the Prince Takamado Cup Hockey Japan League
Winner of the All Japan Women’s Hockey Championship
National Sports Festival Runners Up

Class for creatinga shared future● Company ambassador
The CCBJH Group has appointed

we collaborate with local communities to create a society that

Shotaro Tsuoka to be a company

can empower young individuals to embrace new challenges.

ambassador. Tsuoka is a Japannational rugby sevens team player.
Our goal is to create anenvironment that enables Tsuoka toconcentrate on his competing as amember of the national teamplaying on the world stage.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

54

Sustainability Strategy— Contribution to local community development
Food bank and scholarship program

Plant tours

Since 2016, we have partnered with Second Harvest Japan,

We value plant tours as a way to directly communicate witha member of the Alliance of Japan Foodbanks, and the Foodcustomers, clients, and other stakeholders. Tour facilities are

Bank All Japan Association to regularly donate beverages toavailable at six of our 17 domestic plants: Zao Plant (Miyagi

children’s cafeterias and social welfare institutions throughPrefecture), Tama Plant (Tokyo), Tokai Plant (Aichi Prefecture),

local food bank organizations. In 2023, we donatedKyoto Plant (Kyoto Prefecture), Hiroshima Plant (Hiroshima

35,443 cases (911,140 bottles) of Coca-Cola products to

Prefecture), and Ebino Plant (Miyazaki Prefecture).* We had

26 organizations in the area.

suspended plant tours due to the spread of the COVID-19

As an affiliate of the Coca-Cola Educational &but have resumed them in December 2022. We aim to be ourEnvironmental Foundation, we offer a grant-based

stakeholders' trusted partner by sharing information aboutscholarship program that aims to empower young individuals

Coca-Cola’s manufacturing processes, stringent quality

to become active members of their local communities.

control standards, and environmental and community

Our scholarship program is open to students who are

initiatives during these tours.

continuing their education at university or graduate school,

After restarting plant tours at the Ebino Plant in Miyazaki
Prefecture in December 2022, from 2023 we haveresumed tours at Zao Plant in Miyagi Prefecture, Tama
Plant in Tokyo, Kyoto Plant in Kyoto Prefecture, andHiroshima Plant in Hiroshima Prefecture.
*The Tokai Plant in Aichi Prefecture is scheduled to resume tours in 2024.

Summer School held online
In addition to our regular plant tours, we hosted
a summer school focused on our initiatives to achieve
the SDGs so that people who live far from the eventwith a focus on promoting sustainability and the Sustainablevenue can also participate. A total of 1,387 people

Development Goals (SDGs).

First donation to the Hinokuni Smile Project (Hinokuni Smile Cafeteria)

In-person plant tours restarted

participated in events over four days in 2023.

The mayor of Mihara and local elementary schools participated in a ribbon-cutting
ceremony for plant tour at the Hiroshima Plant in April 2023.

Tama Plant tour

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

55

Sustainability Strategy— Healthy products/services
We respond to the diverse needs of our customers by

day and various situations. As a beverage manufacturer andoffering an extensive product line-up. To meet the growing

seller, we organize hydration seminars to help prevent

demand for health-conscious options, we offer naturaldehydration.

Employee sustainability
awareness-raising initiatives

waters, unsweetened teas and zero-calorie products.

We also provide educational seminars on drinking

Recently, we have expanded our line-up of Foods forhabits (In Iku) to help customers choose beverages that suit

We believe that fostering employee awareness andSpecified Health Uses (FOSHU) and Foods with Function

their lifestyle and health condition. These workshops

behavioral change not only helps address challenges

Claims. Our products not only enrich and nourish theemphasize the importance of staying hydrated and providethat society is facing but also promotes the growthwell-being of our customers’ bodies and minds, but alsovaluable information on various beverage options.

and enhances the corporate value of the CCBJH

complement their individual lifestyles. In addition to ourParticipants learn how to read labels, including ingredients,

Group. To improve employees awareness of

products, we offer health-related seminars and other services

nutritional facts, calories and expiration dates, empowering

sustainability, we regularly hold educational sessions

In addition to product offerings, we also host related

them to make informed choices.

focused on the non-financial CSV Goals of the CCBJH

seminars and provide high value-added products andIn 2023, we hosted an online Summer School thatGroup. These sessions are designed to increase ourservices that help maintain and promote good health andfeatured a special factory tour session tailored for families.

employee understanding of our initiatives.

nutrition, enhancing our customers’ wellness.

This session delved into important topics, such as hydration

Specifically, in the Products category of the CSVExternal seminars
Hydration / In Iku, drink education / visiting lectures

and the safety and reliability of our product manufacturing,

Goals, we have established sales targets for FOSHU

providing participants with an engaging and informativeand Foods with Function Claims, and we clarify our

The recent increase in heatstroke and other health issues

experience.

strategic approaches during these sessions.

related to hot and humid conditions underscores the criticalimportance of maintaining proper hydration throughout theWe will continue to provide valuable seminars that
promote wellness among our customers.

Additionally, we have incorporated ESG
investment options into our defined contribution plan
to increase our employees' awareness andunderstanding of sustainability.

Our Summer School features a role-playing game-style seminar,
merging education with entertainment.

Regular study sessions on a variety of topics are hosted throughout the year

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

56

People Strategy
PeopleYuki Higashi

Driving a new people strategy aimed at maximizing
the capabilities of talent and the organization

Priorityareas

Organization● Drive change through strong ownership● Embrace new challenges andof personal development, careers, andcollaboration with diverse individuals● Realize a sense of fulfillment and happinessthrough business success and personal growtha growth mindset that values
a performance-driven culture● Leverage diversity as a strength
by fostering an inclusive environment

Securing a front-line
workforce

Attracting, developing,and retaining talent

DE ＆ I

Initiatives

Executive Officer and CHRO
(Chief Human Resources Officer) and Head of HR&GA
Coca-Cola Bottlers Japan Inc.

Future state ofhuman capital

People Strategy

Contributing to sustained
business growth throughthe goal of human capital andour personnel, culture andorganization

Culture● Increase the number of womenin managerial positions● Encourage male employees

to take childcare leave● Proactively hire more people
with disabilities● Promote LGBTQ+ initiatives

Developing capabilities
for change

Growth and careerdevelopment● Develop next-generation● Foster a performance-driven

talentprogramthrough businessprocess optimization anddigitalization

Performance-driven
cultureTalent development

culture● Proactive career-building● Become a lean organization

Proactive ownership of
one’s own career

Wellbeing● Promote physicalwellbeing● Career development basedon personal needs andgrowth● Expand the role of managers
to strengthen theorganization

meetings, while multiple strategic options were considered.

relationships through communication and innovation.

Consequently, the future state of our people, culture, and

By doing this we will become a lean organization.

To accomplish the CCBJH Group's mission, delivering happyorganization was defined. Regarding people, we aim to

moments to everyone while creating value, it is vital for

create an environment where each employee has strong

determined priority areas in our people strategy.

each employee to feel a sense of fulfillment and happiness.

ownership of their personal development and career, andThese areas are associated with issues facing our businesses.

This should be achieved by leveraging their full potential,

collaborates with diverse individuals. It will enable them to

For initiatives planned in each priority areas, we have defined

contributing to the company's success and their own personal

feel a sense of fulfillment and happiness through businesskey performance indicators (KPIs) and targets for them.

growth. We incorporated strengthening human capital

success and personal growth. In terms of culture, we will seek

These targets are incorporated into the targets of executive

into the foundation of our strategic business plan, "Vision

to foster a performance-driven culture where, encouraging

officers. We will thus be united as a whole company to2028" as one of our important measures. To accomplish

employees to embrace new challenges and have a growth

accelerate our initiatives for our goals. In addition tothis, we have developed our people strategy and entered

mindset. We will also aim to foster an inclusive workplace

Board of Directors' meetings, we allocate approximately

an implementation phase in 2024. Our new people strategy

where employees’ diverse values and capabilities are utilized

one-quarter of the regular meetings of our executive

defines a future state of human capital. It aims to strengthen

as advantages for success. Regarding the organization, we

leadership team to discussion of our people agenda.

human capital to achieve our goals in "Vision 2028."

envision the advancement of business process optimization

This ensures our executive leadership team’s commitment toand digitalization through "Vision 2028" in the future. Thispeople strategy.

Future state of human capitalwill free our employees from routine operations, enabling

To achieve this future state of human capital, we have

We will carry out these activities with a view toward

The future state of human capital necessary to achieve

them to concentrate on tasks in which human capabilities

sustainable growth and keep creating value for diverse

our goals in "Vision 2028" was discussed at management

are valued such as more creative and strategic duties, humanstakeholders through our business activities.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

57

People Strategy

People — Diversity, Equity and Inclusion
Be COLORFUL! Let’s continue to create new value together.
Our mission is to "Deliver happy moments to everyone while creating value." To achieve this mission, we prioritize, above all else, ensuring that each
employee works happily in a fair culture. The driving force for creating new value is the fusion of colorful values and ideas, woven together
by our personnel with differences in age, race, nationality, disability, gender, sexual orientation, gender identity, gender expression and work style.
We will continue to be a company that connects with our customers and society in our own way, with diverse personalities working together.
Promoting women’s active participation

paternity leave. We also have launched a website

abilities. We also support the activities of para-athletes and

To help women build their careers, we provide developmenton our intranet featuring interviews with long-term paternity

deaf athletes. As a result of these initiatives, we maintain an

measures tailored to different career stages.

leave takers and their supervisors to show examples of

employment rate of people with disabilities that is above the

Our Sponsorship Program is designed to match female

extended leave taken across various departments.

government guidelines.

division heads, according to their development needs, withThis ensures that tips and methods for achieving long-term

LGBTQ+

executive officers to learn management viewpoints throughpaternity leave are accessible to everyone at any time.

We are working on creating an environment where all

regular dialogue. We also provide selective female leadership

employees have accurate knowledge of LGBTQ+ issues andtraining in which managers also take part, aiming to promote

diversity is respected without discrimination, both inside andthe significance of women's participation and support thegrowth of subordinates. Furthermore, we designate theweek in March that includes International Women's Day as
a International Women's Week to provide opportunities foroutside the company. In terms of systems, we are developing*Calin Dragan,childcare and family care systems to allow all employees

Representative Director
and President, actively

to take advantage of welfare benefits, regardless of theencourages employees totake paternity leave.

gender of their partners or their marital status. We are also

thinking, learning, and gaining insight into women's careers

Employment of people with disabilities

considering establishing leave for medical treatment for

and work styles.

In 2019, our group company has been certified as a special-

gender transition. From the viewpoint of fostering

purpose subsidiary, to create a work environment wherea diversity-oriented culture, we launched an ally* network in

individuals with disabilities can demonstrate their own

2022, in which employees voluntarily take part in activities.

strengths. The subsidiary offers a variety of work positions,

Since 2023, we have designated the last week of June asincluding laundry, administrative, and equipment parts washing

PRIDE Week, providing employees with opportunities to learn

to allow each person to demonstrate their unique qualities andand deepen their understanding of LGBTQ+ issues and allies.

Tokyo Metropolitan
Government Women's
Participation Awards
Awarded in 2021

Encouraging men to take paternity leave
We engage in creating an environment and culture where*An ally is a person whomale employees' participation in child-rearing and taking

thinks about the issues faced
by LGBTQ+ people andpaternity leave become the norm. Managers present our
originally-designed aprons to their male employees who
have become fathers at meetings to encourage them to take

Uniform laundry duties, one of the
major tasks of the special-purpose
subsidiary

Athlete with hearing loss
Kazuhiro Takai (left)
Para-athlete Haruki Masanari (right)

proactively works together
with people, regardless ofwhether or not they are apart of a sexual minority.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

58

People Strategy— Talent Development and Wellbeing
Accelerating challenges and growth
Our mission is to "Deliver happy moments to everyone while creating value." This mission cannot be achieved without talent development. We strongly support employees
who take ownership of their personal development and careers by providing diverse learning and growth opportunities tailored to their individual needs and life stages.
We also aim to fulfill our responsibilities as a company contributing to the creation of a sustainable society and environment by developing talent with broad perspectives
and flexible thinking who are capable of providing new value to customers and society.
Next-generation development programs

program to grow as leaders for the next generation throughand encourage each other to progress throughout the● Coca-Cola University Japan (CCUJ) for training

enhancement of their strengths and solution of their issues.

six-month intensive program,● English language proficiency enhancement program

steadily strengthening their English language skills.

prospective business leaders

Global English Transformation (GET)In 2020, we established● Exchange program

Coca-Cola University Japan

We provide the Global English Transformation (GET)

We offer short-term(CCUJ) as an internal

English proficiency program for employees in their 20s

assignments to each

university to nurtureand 30s to enhance proactive

Coca-Cola Groupnext-generation leaders who

communication of CCBJH Group’s

company operating inwill drive the transformation

initiatives overseas while also absorbing

regions outside ofand future growth of the Coca-Cola system and create newknowledge from outside Japan, applying

Japan. The aim isvalue in the beverage market. CCUJ comprises five leadership

it to our daily activities, and creating

to provide opportunities

levels: the next generation of prospective managementbusiness growth. Participants compete

for young employees to broaden their perspectives and growby gaining new insights and learnings from initiatives andexecutives, department managers, section managers, leaders(general staff members), and general staff members.
Participants from each division will undertake a six-month

best practices in other countries.

English language proficiency enhancement program
Global English Transformation (GET)● Self-development support program

GET for Leaders

GET for Climbers

CCUJ EX (for the next generation ofprospective management executives)

CCUJ I(for department managers)

CCUJ II(for section managers)

GET for Starters
Developing
basic language skills

STEP

CCUJ III (for leaders (general staff members))

1

CCUJ VI (for general staff members)Innovation

Strategic
thinking

Peoplemanagement

Effective
communication

GrowthmindsetSTEP

2Open application
Open application

Five leadership capabilities

Developing
practical language skills

To strengthen grammar andlistening skills, which are thefoundation for speaking English

To strengthen speaking
skills for communication in
English with confidence
and ownership

Improving skills to use English
in business situations

We implement a self-development support program called
Knowledge Mall, which provides various learning
opportunities and supports personal career development

STEP

and self-improvement to meet the self-growth motivation3of our employees.
Selection

To strengthen global leadershipskills of managers for creating
opportunities by themselvesin a global environment
through the acquisition of"competent English" skills
for businessWe provide, in conjunction with tuition assistance,
297 material-based courses with content for DX talentdevelopment, online English conversation, and businessschools, as well as 23,100 videos. This reflects our commitment
to ensuring that each employee can access development
opportunities according to their individual needs and timing.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

59

People Strategy— Talent Development and Wellbeing
Maximizing the growth of the organization and individuals
To achieve "Vision 2028" and the sustainable growth of the company, a mindset and culture that embraces new challenges and growth are necessary.
We will achieve both individual growth and company goals by supporting employees to have a strong ownership of their personal development andcareers, ensuring thorough evaluation and compensation systems that emphasize individual and organizational performance.

employees' growth.

Fostering a performance-driven culture

aspects, and work-life balance. With “Development plan”,

To maximize the potential of employees and enable them to

employees identify areas requiring development based on

We will strengthen the organization by redefining

play an active role within the organization, it is necessary totheir strengths they have understood and develop action

skills and actions required for these managers, providing

set individual goals aligned with organizational ones, and toplans together with their supervisors.

training and other enhancements, and reflecting them in theestablish development plans aimed at achieving these goals

By having each employee create their plans andand realizing future career aspirations. For this realization,communicate their short and medium-term aspirations, theit is important for supervisors and subordinates to havespecific learning required to achieve their career aspirations

conversation throughout the year and understand theiris clarified. Supervisors extract the learning necessary

strengths and areas for improvement through feedback.

to achieve the individual's aspirations and support theWe have introduced an effective performance
management process in a healthy competitive environment

individual's actions with concrete feedback.

Goal setting(individual performance)

Development Plan

(to achieve goals/career aspirations)

Career PlanThrough the execution of clarified plans, employeesthat prioritizes a performance-driven culture, with the aims

feel their growth, while the possibility of achieving theirof connecting the contributions of each individual to thegoals and career aspirations increases.

achievement of organizational goals and ensuring fair andRole of managers in strengthening the organizationtransparent evaluation and performance-based promotion

To enhance the quality of a series of these cycles andand compensation.

maximize the growth of the organization and individuals,

Developing careers based on
personal needs and growth

direct supervisors play a crucial role. Supervisors define

To support learning and proactive career development

their achievement by responding accurately and promptly toby employees, we have established a system wherebusiness changes and opportunities.

employees create their own “Career Plan” and “Development

evaluation of managers themselves.

Achievement of both individual
growth and company goalteam goals based on larger organizational goals and lead

As a prerequisite for this, supervisors are required toPlan” annually and receive necessary support from theirrespect each individual's personality and take into accountsupervisors to achieve these plans.

their wellbeing and engagement. In this healthy teamWith “Career Plan”, employees consider the careers

environment, trust-based relationships and communication

they are aiming for in the short and medium term, taking

skills are necessary to enable appropriate and constructive

into account factors such as desired transfers, health-related

feedback as well as setting roles and goals that contribute to

Self-awarenessand evaluation

Ongoing
Conversation

Maximizing the growth through transfers, promotion,and compensation

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

60

People Strategy— Talent Development and Wellbeing
Happy wellbeing
To achieve CCBJH's mission, "deliver happy moments to everyone while creating value," each employee needs to be happy.
For this realization, we are working on improving the wellbeing of diverse human individuals.

CCBJH‘s concept of wellbeing

healthily, we have been improving ourwe have set a goal to achieve a 0% manager smoking rate by

CCBJH Group defines wellbeing across five domains.

engagement score and productivity. We

2025. We promote smoking cessation among employees by

Among them, physical wellbeing will be the foundation forhave been certified as a White 500 Healthcovering the full cost of online smoking cessation clinics as

human capital.

& Productivity Management Outstanding

requested.

Organization for the fifth consecutive year,

Occupational safety

comfortable working and the achievement of results, we

as our particularly excellent initiatives in health management,

We engage in activities based on our Life Saving Rules,

will improve the hourly productivity of each employee andincluding the cases shown below, have been recognized.

which are the global safety behavior guidelines of Coca-Cola.

contribute to the achievement of "Vision 2028."● Sample initiative in health management (1)These consist of 14 rules and we review as many as

By creating a culture and organization that facilitates

Walking events
Five elements of wellbeing

PhysicalCareerSocialFinancial

Since 2019, we have held walking events for all

Community

To be in a state of physical wellbeing
Health, safety ウェルビーイングを構成する5つの要素
and flexibility are
KPI
achieved in ウェルビーイングを構成する5つの要素
the workplace.
Engagement score
Improvingengagement

Reducing
overtime
work

Improving thepercentage ofpaid leave taken

Hourlyproductivity
etc.

163 items quarterly to ensure compliance.
To further promote understanding of safety behavior, we

employees three times a year. These events, called

also launched a learning center where employees can experience

Sawayaka Walk, attract approximately 8,000 participants

simulated entanglement accidents and falls, providing education

annually, contributing to the initiation and maintenance offor enhancing the safety awareness of employees.

regular exercise.

Flexible work styles

Through walking, which is easy to start, we provide

We offer various options for employees to flexibly change

created value

opportunities for individuals to experience the joy of

their work styles. In addition to promoting teleworking,total working
hours

exercise and focus on their own health, while supporting

including working from home, in satellite offices, and working

their healthy working.

during vacations, we also encourage flexible work styles● Sample initiative in health management (2)Promoting non-smoking

in our Commercial Division by allowing employees to haveTo aim for a healthy and comfortable workplace environmentand back home.

Contribution to achieve "Vision 2028"*The five elements above are based on the definition by Gallup, Inc.
Source: https://www.gallup.com/workplace/237020/five-essential-elements.aspx

and a smoke-free society, we have gradually strengthened

business meetings online and also to go straight to clients
Furthermore, we focus on work-life balance and have

Health management

our non-smoking rules since 2020 andmaintained a workplace environment where taking paid

We think that health and safety are not personal mattersstarted a complete smoking ban on ourleave is encouraged by setting specific targets for using

but should be addressed as organizational ones, thereby

premises in 2023.

accrued paid leave in each organization. As a result of these

positioning them as important measures linked to ourmanagement strategies. By fostering a culture of working

Thinking it is important for
managers to lead smoking cessation,

initiatives, we have been recognized externally as a leading
company in wellbeing.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

61

Risk Management Strategy
for emergent risks and opportunities and through regular
reporting ensures that risk visibility is provided to our ELT,Supporting
the Strategic Business plan "Vision 2028"
by managing risk
and leveraging opportunities

the Audit and Supervisory Committee and the full Board.
Our ERM framework has adopted the coreelements of COSO and ISO 31000 to provide a PDCA
risk framework aimed at driving profitable growth byleveraging opportunities and promoting appropriate riskbased decision-making, as well as strong capabilities in theidentification and response to foreseeable risks.

Head of the Risk Management Senior Group
Coca-Cola Bottlers Japan Inc.

Gerold Knight

The ERM program incorporates a variety of elementsthat enable us to ensure alignment to our business strategies,
objectives, and principles; drives integration with ourstrategic direction, ethics and values; links into the businessplanning cycle; continually monitors our internal and external
environment for factors that may change our risk profile andCreating a Resilient Businessdisruptions. For that purpose we have well-established crisis

create opportunities; and conducts an annual evaluation

At CCBJH we have implemented a business resiliencemanagement and business continuity plans and a programof the type and amount of insurance we should purchase.

program that integrates the ways in which we manage riskthat trains our crisis leaders at least annually throughOur approach to insurance risk transfer is influenced by theand opportunity to enable profitable growth, protect ourinteractive simulations.

availability of insurance cover and cost, measured against

people and assets, enhance our capabilities to respond ina crisis, and leverage insurance to protect us financially.

Accountabilities

the probability and magnitude of the relevant risks.
Our risks and the associated mitigation and response

Central to our program is having empowered teams

The CCBJH Board has overall responsibility for our businessinitiatives are constantly evaluated. The Audit and Supervisorythat understand and respond with agility to risks andresilience strategies with enterprise risk management

Committee are provided quarterly updates on the full program

opportunities, adaptable leadership that responds to a(ERM) being a central pillar. The Board is closely involved

with the Board of Directors receiving biannual updates. The

crisis, and programs that develop our people and process

in overseeing our current and over-the-horizon risks, theprogram is regularly audited by our Internal Audit team andcapabilities to support both a short-term response and long-strategic response to them, and monitoring management

external auditors against global best practice.

term resiliency strategy.

actions that strengthen resilience in support of our strategic

The process incorporates the review of our constantly

In 2023, we continued to strengthen the integration ofbusiness plan "Vision 2028" objectives. Our business

ERM and Smart Risk program into our corporate culture andchanging business environment and the assessment

resilience programs are led by our Head of Risk Management,

business DNA through the roll out of training and awarenessof current and over-the-horizon risks and associated

who as a member of the ELT works in close collaboration

courses. We have maintained the visibility of risks andopportunities. Our people develop and implement plans towith the function heads and risk owners across our business

opportunities through regular ELT dialogue and quarterly

manage key risks and we maintain a focus on being able toon the response to specific business risks. He is tasked withsenior manager participation in facilitated functional risk andcontinue operations and serve our customers in the event ofmaintaining a wide-angled view of our business streams

opportunity identification and review sessions.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

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Value Creation Story

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Foundations Supporting the Corporate Value Growth

Data Section

62

Risk Management Strategy
Major Risks

Enterprise Risk Management (ERM)
Processes

Our integrated business resilience program enables us tobe vigilant to uncertainties in our operating environment

ELT discusses risks and opportunities
as part of regular business routines.
Senior leaders undertake timely responses.

ELT Focus

and proactively identify new risks and profitable growth
opportunities.
The cyclic review of our key risks involves an assessmentof their likelihood of occurrence, potential consequences andExternal risk monitoring supported by regular
discussions within the Coca-Cola system in Japan.

Bottom up review through HRM* facilitatedsessions with senior leaders to identify
risks and mitigations together withpotential opportunities. 1:1 ELT deep divesprovided a topdown evaluation.

Active Risk
Monitoring by
Coca-Cola system

speed of onset, and evaluation of the strategies to manage
them. Our list does not include all risks that could ultimately
affect us as there are risks that are not yet known to us, andrisks currently evaluated as immaterial that could ultimately

Functional
Business Reviews
and ELT 1:1
Deep Dives

impact on our business or financial performance.
Climate change is a key risk to our operations overthe longer term but while a risk, it can present significant
opportunities that we can leverage though proactive
preparation of our business with well-thought-out adjustments
to strategy and capital investments. Climate risk is integrated

Quarterly ELT
Risk Updates

In quarterly ELT updates,
members engage in detailed review anddiscussion to validate the key risks andimplemented mitigations.
Quarterly the HRM briefed the Committee
on material risks, management actions,and process compliance withthe risk management elements of regulatory Code.

Biannual briefings provided by the HRM ensuring
full visibility of the business resilience processes.

into our risk management dialogue at all levels and a priority
focus are of our Risk Management Forum and Sustainability
Committee which drive alignment to TCFD and TNFD
strategies.

Review by
the Audit andSupervisory
Committee

While in 2023 we did not see material changes in ourreportable risks, we did see reprioritization of risks as illustrated
in our key risk table.(Refer to pages 63-64 for details)

Review by Boardof Directors

In May 2023, our HRM,
Dr. Knight was awarded the
Risk Management Institute ofAustralasia’s 2022 Risk Leaderof the Year (Asian Region) .

* HRM:Head of Risk Management

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

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Foundations Supporting the Corporate Value Growth

Data Section

63

Major Risks
Risk category

Description and potential impact

Key mitigations
Prepare countermeasures to mitigate any damage caused by system failures● Improving and strengthening system security by proactive threat identification and conducting
simulation tests of cyberattacks● Complying with laws and regulations on information management● Establishing internal regulations related to information security supported byrelated employee training program●

Cyber Security and
System Availability

Business activities being suspended, and confidential information leaking caused by system
failures or cyber incidents.
Losing trust from consumers and customers
Deterioration of financial conditions

Significant increases in procurement costs due to fluctuations in exchange rates,
raw material shortages, commodity prices increase impact on profitability
Increased cost base
Reduced product supply and limitations to product portfolio●

Commodity
Cost Increase●

Health and Safety

Lack of compliance with safety systems, ownership or accountability and awareness, mental
health issues, use of aging equipment cause serious work-related health and safety incidents.
Death or serious injury
Reputation damage
Prosecution and/or fines

People Talent(Attraction andRetention)

Not being able to secure, retain and develop enough human resources and build constructive
relationships with labor unions due to poor business performance and a competitive
employment environment.
Slowdown or suspension of business activities
Slowdown or suspension of supply chain operations
Inablility to achieve growth plans

Changing Consumer
MindsetChanges in consumer preferences caused by growing concerns over sugar consumption andincreased health awareness, or pricing.
Acquisition or loss of consumer baseWinning or losing trust from consumer
Discriminatory taxation

Natural Disasters

Death and injury of employees, damage to business facilities for production, logistics andsales operations caused by events, such as earthquakes and floods.
Slowdown or suspension of business activities
Slowdown or suspension of supply chain operations
Reduced sales opportunities
Additional costs required for recovery

Evolving Commercial
and Competitor
LandscapeInability to respond to changes effectively and efficiently in the retail environment.
Acquisition or loss of consumer baseWinnig or losing trust from consumers
Reduced sales profit
Reduced portfolio availability

Mitigate the impact of exchange rate and product price fluctuations through the uses of derivativetransactions● Procure raw materials at lower costs through collective multisystem company purchases leveraging
Coca-Cola system

Continue ISO 45001 certification/Internal Audit strategies
Continue implementing mental health survey● Varieties of safety measures in place● Education & training to raise awareness● Remodeling of program to leverage Coca-Cola System best practices●

Implement strategic people development plans and develop a new salary payment structure
Recruit diverse talent and commitment to people development (including overseas)● Implement unmanned plant operations, online transactions, and outsourcing of shipping operations● Enhance the workplace environment to improve employee satisfaction● Strengthen communication between top management and employees●●

Focus on product innovation and portfolio expansion
Strengthen range of low and no calorie beverages● Diversification in pack sizes● Promote active lifestyles through consumer engagement program●●

Strong Business Continuity Plan (BCP) and crisis response capabilities enabling structured andstreamlined responses● Enhance regional response capability through regular crisis and disaster response training and simulations● Identified alternative shipping locations and secure transportation capacity in preparation for a disasterthat damages the logistics centers● Insurance earthquake coverage●

Enhancing the product portfolio and accelerated productivity further to deliver products that meet theneeds of the retailers● Enhancing Right Execution Daily (RED) to drive operational excellence● Expanding the online channels to respond to the surge in Internet mail orders●

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Risk category

Value Creation Story

Description and potential impact

Growth Strategies

Risk of failing to implement measures to improve our competitive advantage and grow thebusiness (such as, through business integration, capital investments, product development, etc.)
Deterioration of financial conditions caused by loss due to impairment
Losing trust of shareholders

Sustainability

Failing to respond to changes in stakeholders' awareness of sustainability including
climate change risks and/or adequately report on sustainability and ESG topics in line withstakeholder and regulatory requirements
Reputation damage with a reduction in stakeholder trust
Increase in investor activism in the area of climate change
Financial impacts - Loss of sales if customer expectations on climate change are not meet
and they shift to competitors

Qualityand Food Safety

Product related quality and food safety incidents
Losing trust of consumers
Decline in earnings due to product recall or mass disposal of defective products
Loss of opportunities due to penalties

Regulatory
Complianceand Ethics

Violations of laws, internal regulations, and our code of ethical conduct
Loss of customer and consumer trust
Damage to brand and corporate reputation
Regulatory penalties
Economic loss through fraud

Manufacturing,
Logistics &Infrastructure

The stable supply of goods being impeded due to issues in production and logistics
operations, or changes in weather and consumer behaviors
Drop in sales volume and revenue
Losing trust from customers

Climate change

Becoming short of raw materials including water and agricultural products
due to climate change
Reduced commodity availability and product supply
Increase of production costs
Limitations to product portfolio
Discriminatory taxation

Franchise
Relationships

Risk related to our high dependency on, or changes to our relationship with
The Coca-Cola Company (TCCC) and Coca-Cola (Japan) Company (CCJC) as trademark
owners in respect to contract/relationship terms and renewals, concentrate pricing, support
for product promotions
Decrease in sales from any suspension in the use of TM rights and/or decline in productdevelopment capabilities and brand power
Increased COGS due to beverage base price
Increased sales promotion expenses in event of any decrease in sales support

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

64

Key mitigations
Building a robust system that enables the group to respond readily and flexibly to various
circumstances● Formulate business integration strategies that take multiple scenarios into consideration● Supervision by Board of Directors and Executive Officers●

Achieving CSV goals contributing to the development of a sustainable society"World Without Waste" initiatives including, increasing the use rate of recycled PET resin, developing
more light-weighted packages, and collecting used PET bottles more effectively● Proactive response in line with ESG, TCFD and TNFD reporting requirements●●

Supplier quality audits and quality certifications
Employee awareness of quality control in all processes from manufacturing to sales● Enhance the quality control and reporting system so that consumer/
customer complaints receive a timely response● Robust identification and response programs that enable us to quickly and efficiently deal with quality/
food safety issues●●

Strong Tone from the Top and continued internal communication on corporate behaviors
Ethics & Compliance Committee meetings held regularly● Minimizing employee fraud opportunities by rebuilding the business processes, organizational structure
and IT systems●●

Building a flexible supply system to respond to changes in the market environment
CAPEX investment in infrastructure (production lines, etc.) that will enable the group to respond to theincrease in demand during the peak seasons more readily● Systems enhancements to enable timely sharing of inventory status●●

Focus on sustainable procurement
Engagement with stakeholders● Sourcing alternative suppliers, and strengthening the selection of suppliers and their management by
utilizing the performance data
● Adjust the level of raw materials that are difficult to procure, and shift to other raw materials when necessary●●●

Maintaining and improving cooperative relationships with TCCC and CCJC

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

65

Risk Management Strategy

Responding to climate change and natural capital
We recognize the importance of identifying risks andInitiatives based on the TCFD recommendations

opportunities from climate change and incorporate our

We will promote initiatives and information disclosure for the mitigation of and adaptation to climate change throughconsideration in accordance with the TCFD framework.

responses into our business strategies.
Climate change and the sustainable conservation of
biological resources are material issues for our business. Wealign our information disclosures with Task Force on

GovernanceWe discuss sustainability issues including climate change and formulate strategies at the
Sustainability Committee, which consists of ELT. Ultimately, strategies, etc. are decided
after the approval by the Board of Directors.

Strategies

We are expanding the target years to 2030 and 2050. Performing scenario analysis
by including items that were not subject to analysis, and re-identifying key risks andopportunities. We are also considering a transition plan.

Riskmanagement

Risks are discussed weekly by the ELT, and risks and opportunities are discussed by the
ELT on a weekly basis and analyzed in detail at the risk management forum held quarterly.

Metrics andtargets

As medium- to long-term targets, we have established CSV Goals, our own non-financial
targets that aim to reduce GHG emissions throughout the supply chain by 2030 andachieve net zero GHG emissions by 2050. We are implementing initiatives while checking
the progress.

For details

P.45

Sustainability strategy

Climate-related Financial Disclosures (TCFD) recommendations
and are also conducting a review based on the Task Force on
Nature-Related Financial Disclosures (TNFD) recommendations.
● Climate changeThis page

Initiatives based on the TCFD
recommendations
For details

P.61

Risk Management Strategy

Regarding the reduction of greenhouse gas (GHG) emissions,
we aim to reduce Scope 1 and 2 emissions by 50% and Scope
3 emissions by 30% by 2030 (compared to 2015). In addition,
we strive for net-zero GHG emissions by 2050. To mitigate

For details

P.18

Material issues and CSV Goals

and adapt to climate change, we are strengthening ourgovernance system based on the TCFD recommendations,considering scenario analysis and strategies, and working to● Scenario analysis

achieve our goals, while promoting risk management.

Determining that more detailed analysis of climate change is● Re-performance of quantitative analysis,

and re-identification of key risks and opportunities

necessary, we have been conducting scenario analysis since

In 2023, we expanded the target years of scenario analysis to● Natural capital

2022. The analysis focused on the beverage business, the2030 and 2050, and re-performed the quantitative analysis

Our environmental policy states that one of our criticalmain business of the Group, and examined two scenarios: aand re-identified key risks and opportunities after including

missions is to efficiently utilize water and natural resources

1.5/2°C scenario and a 4°C scenario.

items that had been judged to be of low importance andand preserve a sustainable global environment for future
generations. We are currently identifying dependencies
and impacts, and evaluating important issues in upstream,
direct operations, and downstream. This is being done inaccordance with the LEAP approach and with reference
to TNFD v1.0, published in September 2023. We are also
preparing to disclose the results of this review.
*LEAP approach*：The LEAP approach is an integrated approach to assessing
nature-related issues, including interactions with nature, dependencies on nature,
the impact of each issue, risks and opportunities.

1.5/2°C

4°C

・Response to climate change
will progress, and transition
risks such as regulations will
increase.
・Build a society where social
Worldview changes accompanying thetransition to a decarbonizedsociety are highly likely
to influence business
operations.

・Response to climate change
will stagnate, and physicalrisks such as natural
disasters will increase.
・A society where a rise intemperature and otherchanges in climate arehighly likely to influencebusiness operations

Reference IEA: NZE, SDS
scenarios IPCC: RCP1.9, 2.6, 4.5

IEA: STEPSIPCC: RCP8.5

excluded from the analysis in 2022. To minimize risks andmaximize opportunities under multiple scenarios, we will
reduce the risk of climate change and maximize opportunities
by reflecting the countermeasures considered this time inmanagement strategies and medium-term strategic businessplans, and incorporating them into annual plans.

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

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

66

Risk Management Strategy

Responding to climate change and natural capital
Identified risks and opportunities and countermeasures

Opportunities

Physical Risks

Transition risks

Risks and opportunities of high importanceDefinition

Financial impact High: Over 10.0 billion yen/Medium: 1.0 billion yen or more and 10.0billon or less/Low: less than 1.0 billion yen
Time of occurrence Short-term: May occur by 2025. Medium-term: May occur by 2030. Long-term: May occur by 2050.

Details of major risks and opportunities

ImpactTime ofoccurrence

Countermeasures

Cost increase due to introduction ofcarbon pricing● Cost increase due to introduction of carbon tax and strengthening ofemissions trading system, etc.
● Increased costs due to price shifting of carbon tax at supplier

MediumWithin the medium ● Active adoption of recycled materials, promotion of weight reduction
to long termof raw material consumption through lighter containers/packages, etc.
● Reduction

Cost increase due to energy conservation and
GHG emission regulations● Cost increase due to capital investment for energy conservation andrenewable energy, etc.
● Increased procurement costs due to increased production costs at suppliers

MediumWithin the medium ● Reduce dependence on external power supply by introducing renewable energy
to long term
to use of alternative raw materials (in collaboration with Coca-Cola Japan)● ShiftDecline in sales due to an inadequate
response to changes in customer behavior● Sales suspension of our products at retail stores, etc.

MediumWithin the short to ● Expansion of products in accordance with sustainable procurement
medium termenvironmentally friendly products (e.g., 100% recycled PET/label-less)● Promote

Cost increase due to tighter plastics-related
regulations● Increase in procurement costs for recycled PET resin, etc.

MediumWithin the medium ● Shift to use of alternative materials, active use of recycled materials
to long term
● Promote lighter containers

Loss of reputation among investors andfinancial institutions due to inadequate
response● Decrease in stock price and increase in financing costs in case of inadequate
response

Low● SBT certification and participation in RE100 (TBC)
Within the short to● Active and continuous information disclosure and external dissemination based
medium termon TCFD and TNFD, etc.

Decrease in manufacturing efficiency andmanufacturing volumes due to extreme
weather conditions● Increased quality maintenance costs due to deteriorating water quality● Increased response costs due to increased risk of illness

Low

Within the medium● Strengthening of BCP response
to long term

Business shutdown due to extreme weather
conditions● Impact of restoration cost and lost sales due to shutdown of factories andother company-owned facilities due to hazardous weather conditions

MediumScarcity of water-based materials● Increase in procurement costs resulting from a rise in the market price ofwater● Increase in response costs due to plant shutdowns caused by drought

Low

Procurement risk of raw materials● Increase in procurement costs of agricultural produce and other raw materials

MediumWithin the short to ● Diversification of procurement sources
medium term
● Collaboration with suppliers (e.g., development of agricultural methods,)

Customer demand increase for products that
contribute to energy conservation and
GHG reduction● Increase in sales due to environmentally friendly raw materials and packaging

MediumWithin the medium ● Develop and expand environmentally friendly products
to long term(e.g., 100% recycled PET bottle, label-less, reusable, package-less)

Cost and GHG emissions reduction throughefficient use of renewables● Reduction of electricity costs and GHG emissions by introducing renewableenergy and energy-saving equipment (facilities, logistics, etc.)● Cost reduction through enhanced water efficiency

MediumWithin the medium
to long term

Changing customer preferences due to global● Increase in sales of heat stroke prevention and healthy beverages
warming

Low

Within the short to ● Identify and prioritize wind and flood risks in manufacturing sites, sales/
medium term
distribution sites, and supply chain, and enhance mitigation plans
Within the medium ● Improvement of WUR
to long term
 trengthening of S&OP response●S● Installation of manufacturing equipment equipped with the latest technology,
continuous improvement of manufacturing processes and plant equipment
through monitoring● Further promotion of water source replenishment capacity improvement

Within the medium● Develop and promote heat stroke prevention and healthy beverage products
to long term

● Transition planning for decarbonization

We will achieve our 2030 GHG reduction targets by implementing measures toward● Major measures for GHG emissions reduction ● Upgrading exiting facilities / Increasing

decarbonization. It is difficult to clearly foresee the state of progress of infrastructure andthe percentage of sustainable material usage / Implementation of Carbon offset vending

technology development over the medium to long term. However, we will consider andmachines / Expanding the adoption of next-generation automobiles / Review delivery routes /implement measures that are appropriate for the Company through research and other means.

Lightweighting of PET products / CAN-to-CAN promotion, etc.,

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

67

Corporate Governance Strategy
Our mission and corporate governance strategy

We aim to enhance
corporate value by building
a strong foundation andmaintaining our position asa trustworthy company.
Executive Officer, Head of Legal
Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer and CLO (Chief Legal Officer)
Coca-Cola Bottlers Japan Inc.

Mission Realization

Management Foundation: Increase the soundness, transparency and efficiency
Increase management
Organizationalsoundness, transparency
Designand efficiency

P.68

External
Activities

Enhance dialogue withshareholders andinvestors

P.72

Operation of
the Meeting
BodiesP.69

Directors

Participation of diverse
directors

P.73

P.70

Compliance

Strengthening ethics andcomplianceAppropriate risk taking

P.78

Effective operation of
meeting bodies

Improve corporate value andExecutive
Compensation share profit consciousness
Systemwith shareholders

Tomokazu Usagawa
Corporate Governance Strategy

https://en.ccbj-holdings.com/corporate/governance/

Efficient and effective organizational design

Stock-based incentive compensation system to strengthen●

Adopting the form of a company with an Audit and Supervisory

recruitment competitiveness and retention

Our vision is to continue to be the preferred partner for our

Committee to strengthen the functions to audit and supervise

External activities

customers and to win in the market through sustainable growth.

the Board of Directors●

Adopting an executive officer system to separate the decision●company for all of our stakeholders, including customers,

making and management supervisory functions of the

Directors

business partners, shareholders, communities, and employees,

company from business execution functions●and to achieve sustainable growth and enhance

Effective operation of the meeting bodies

our corporate value. We believe that realizing this vision is●●

Based on this vision, we strive to be an honest and trustworthy●

Adopting Virtual-Only General Meeting of Shareholders to

only possible when there is a solid management foundationin place.
With the aim of increasing the soundness, transparency,
and efficiency of management and enhancing medium- tolong-term corporate value and shareholder value, we are●

Promoting active dialogues with shareholders and investors
Enhancing the timely and appropriate disclosure of information
Emphasis on diversity in board composition, including
nationality, gender, and skills
Having a majority of the Board of Directors being independent●provide more equal participation opportunities

outside directors to ensure the Board is highly independentHaving the Board of Directors and an Audit and Supervisory

Commitment to compliance

Committee that are specialized in the deliberation of critical●management issues
Improvement based on board effectiveness evaluations●Promoting a corporate culture that emphasizes
ethics and complianceAppropriate risk taking to fulfill the Group’s roles and●

engaged in the following initiatives to enhance corporate

conducted by independent third parties

responsibilities in society and aim to develop sustainably

governance and strengthen a management foundation.

Executive compensation system

together with society

Performance-linked stock-based incentive compensation●system to share profit consciousness with shareholders as well

The Group is committed to building a strong foundation to

as to increase officers' motivation to contribute to medium torealize sustainable growth while earning the trust of all.

long term corporate value and the increase in the stock priceCoca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

68

Corporate Governance Strategy
Organizational Design

The Company's basic principles on corporate governance are to strive toward enhancing

Separation of management supervisory functions from business execution functions

the Company's corporate value and increasing shareholder value over the medium to long term

We have adapted an executive officer system to separate the decision-making andby improving management soundness, transparency, and efficiency.

management supervisory functions from business execution functions. Certain decisions onimportant business execution are delegated to Directors so that the Board of Directors can

We have adopted an executive officer system to separate decision-making andmanagement supervisory functions from business execution functions.

deliberate more fully on matters of particular importance and the management team can

Strengthening management supervisory functions

expedite the decision-making.
In addition, material matters of the Company are deliberated at key meetings by

The Company has taken the form of a company with an Audit and Supervisory Committee,

President and/or Vice President and head of divisions including executive officers to expedite

intending to further strengthen the governance system.

the decision-making.

The Audit & Supervisory Committee has members consisting of multiple Independent
Outside Directors, and the management supervisory function is further strengthened by
the Audit & Supervisory Committee members, who are Outside Directors, having voting rights at
Board of Directors meetings and the right to state their opinions concerning the nomination ofand compensation, etc. for Directors at General Meeting of Shareholders.

Examples of key meetings attended by the management teamCorporate governance system

General Meeting of Shareholders
Appointment/Dismissal

ReportingAppointment/Dismissal

Appointment/Dismissal

Reporting/Stating opinions

Directors who are not Audit andSupervisory Committee members

Directors who are Audit andSupervisory Committee members
Reporting status ofbusiness execution

Representative Directors
Reporting

Supervision/
ReportingExchange
opinions
ReportingInternal Audit Office
Auditing
Executive Officers
Group Companies

Departments

Coordination

Auditing

Audit & Supervisory Committee*

Financial/Accounting Auditor

At these meetings, major issues and strategic directions of the Company or
cross-function are discussed, especially on the topics of human resources
based on the perspective of human capital management.

Executive S&OP
Meeting

At these meetings, medium- to long-term strategic business decisions
are made based on supply and demand plans andfinancial information to optimize the entire supply chain in conjunction
with sales operations.

CapitalCommittee

This committee manages the progress of capital investment plans,deliberates and approves capital investment projects,
as well as performs post-implementation verification forthe purpose of appropriate management.

Ethics andCompliance
Committee

This committee engages in activities including awareness and education
activities related to ethics and compliance, operation of consultation desks,
handling of compliance-related cases, and examination and implementation of
measures to prevent recurrence of problems.

Sustainability
Committee

This committee discusses and develops policies and strategies, etc. regarding
various issues around sustainability, particularly climate change.

Board ofDirectors

Selection/Supervision/
Delegation of importantbusiness execution

Auditing

ELT Meeting

Reporting
Auditing/Determining proposals for appointment or dismissal
Coordination* Consisting of only Outside Directors (Audit and Supervisory Committee members) including more than one Independent Outside Director

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

69

Corporate Governance Strategy
Operation of the Meeting Bodies

We operate each meeting body to ensure the effectiveness of our decision-making and auditing bodies.
We introduce the General Meeting of Shareholders, the Board of Directors and the Audit & Supervisory Committee among others.

General Meeting of Shareholders

Board of Directors

Audit and Supervisory Committee

As the highest management decision-making body,

The Company’s Board of Directors consists of nine

The Company’s Audit & Supervisory Committee consists of

we hold an ordinary general meeting of shareholders indirectors, including multiple independent outside directors.

four members, all of whom are outside directors, including

March every year. The meeting decides on important

It holds regular meetings once every three months inindependent outside directors. In principle,

matters such as the appointment of directors and theprinciple, with extraordinary meetings as needed.

the Audit & Supervisory Committee meet once every three

appropriation of surplus funds, with easy-to-understand

The Board of Directors resolves matters concerning

months, with special meetings as needed. In accordance

reports on an overview of major business activities, theimportant business issues and receives reports on thewith the Audit & Supervisory Committee Standards forfinancial status, and issues that need to be addressed in

execution of business. The Company also delegates a part

Audits based on relevant laws and the Articles ofthe future.

of decision-making on important matters of businessIncorporation, the Audit & Supervisory Committee audits

execution to directors to enhance deliberations on mattersthe execution of duties by directors, executive officers,

the opinions and questions we receive from ourof special importance in the Board of Directors and toand employees by attending meetings of the Board of

shareholders.

speed up decisions by the management team. In fiscal

Directors and examining the results of audits conducted

2023, the Board of Directors met eight times, and theby the division in charge of internal audits andattendance rate of all directors was 100%.

the accounting auditor.

We also strive to sincerely respond to

We held the 2023 Ordinary General Meeting of
Shareholders in March 2024 as a so-called "virtual-only
shareholders’ meeting", the first of its kind in the

Evaluation of Effectiveness

The Audit and Supervisory Committee members

Company. The meeting was held entirely online via the

Each year, we evaluate the effectiveness of the Board ofalso exchange opinions regularly with the representative

Internet, with no fixed location, in order to provide all

Directors based on evaluations by directors regarding its

directors regarding the content of the audit.

shareholders with a more equal opportunity to attend

operation, support system, composition, etc., with thethe meeting.

support of a third-party organization.

Auditing System

In the most recent evaluation, the issues from theBoard of Directors

previous year were improved, and the results greatly

Representative
Directors

exceeded the average for other companies. We will continue

Exchange
opinions

our efforts to improve the effectiveness of the Board of
Directors, by enhancing deliberations on topics in response

Reportingto changes in the business environment, providing Board of
Directors materials at appropriate times and formats, andconducting evaluations and making improvements after
each Board meeting.

Supervision /Reporting

Audit and Supervisory
Committee
Coordination /ReportingInternal Audit
OfficeAccounting
AuditorCoca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

70

Corporate Governance Strategy
Executive Compensation System

We decide on policies regarding the determination of executive remuneration, etc. based on deliberations by the Audit and Supervisory Committee and after approval by the Board of Directors.
The current policy (policy for determining compensation for directors, etc.) was resolved at the Board of Directors meetings on February 9, 2023 and February 14, 2024.

Basic policy

Compensation system for executive directors and executive officers

CCBJH Group have designed our executive compensation system on the basis of the following

Compensation for executive directors and executive officers consists of fixed compensation andpolicy. Subject to the system at the end of December, 2023 are two executive directors, sevenvariable compensation that varies with factors such as corporate performance, to reflectsupervisory officers (directors who are Audit & Supervisory Committee members and outside

responsibilities and contribution to corporate performance. The standard amount of

directors who are not Audit & Supervisory Committee members), and nine executive officers.

compensation is set according to the scale of responsibilities. The greater the responsibilities,
the higher the percentage of variable compensation.

Overview of the executive compensation system
Targets

Basic policy● The Company sets the level

Executive directors
Executive officers

and composition ofcompensation to enable thehiring and retention oftalented people who are
diverse in terms ofnationality, experience, etc.
● The composition ratio
will emphasize
performance-based
compensation to provide
a sufficient incentive toachieve profitable growth.
● The system will promote
improvement in medium- tolong-term corporate value
and a shared awareness of
profit with shareholders.
● Compensation level andstructure based on role inmanagement supervision
and auditing.

Decision-making process● In order to increase the transparency

and objectivity in compensation decision
procedures, the content ofcompensation is discussed by the
Audit & Supervisory Committee,
composed of only outside directors,
based on policies concerning thedetermination of compensation for
directors and within the total amountdetermined at the General Meeting of
Shareholders. Through resolution of theBoard of Directors, the setting ofcompensation is delegated to theRepresentative Director and President,
who determines the compensation foreach executive director, including theamount of performance-based
compensation.

● C ompensation for directors who are

Supervisory officers

Audit & Supervisory Committee members
is proposed to the Audit & Supervisory
Committee and is determined throughdeliberation with directors who are Audit &Supervisory Committee members, within
the total amount determined at theGeneral Meeting of Shareholders.
● T hrough resolution of the Board of
Directors, compensation for outside
directors who are not Audit & Supervisory
Committee members is deliberated by the
Audit & Supervisory Committee based onpolicies concerning the determination ofcompensation for directors. The setting ofcompensation is delegated to theRepresentative Director and President,
who determines compensation within the
total amount determined at the General
Meeting of Shareholders.

Level● Compensation is decided inaccordance with scale ofresponsibilities, utilizing datafrom compensation surveys
performed by external
research organizations andtaking into account the level ofcompensation provided atcompanies such as domestic
and overseas similarly-sizedcompanies in comparable
industries, with the intent ofproviding a level ofcompensation that enables
recruitment and retention oftalented people who are highly
diverse in terms of nationality,
experience, etc.

Range of standard amounts of compensation: Image when basic compensation is set to 100
Fixed compensation
Basic compensation

100

Retirement payments

10+

Annual bonus

Around 30 to 85

Long-term incentives*+ Around 15 to 100* Performance Share Units (PSU) and Restricted Stock Units (RSU)

Image of compensation structure (in case of Representative Director & President)
Fixed compensation● The Company makes use ofcompensation survey datafrom outside expert
organizations, etc. withreference to compensationlevels in domestic companiesof similar scale, andsets levels in accordancewith roles.

+

Variable compensation

Under minimum
payment
Under standard
payment
Under maximum
payment

Variable compensation

Base salary &retirement payments

RSU

69%

31 %

37%
30%

Annual bonus &PSU at base amount

Annual bonus &PSU at maximum

63 %
70 %

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

71

Corporate Governance Strategy
Executive Compensation System

Payment of compensation to directors in 2023

Compensation structure for executive directors (or directors)
Fixed compensation
Basic salary● Monthly payment of an amount determined based on responsibilities.

● 1 0% of annual base salary is retained, and the accumulated amount is calculated

and paid upon their retirement.

Retirement
payments

 his payment may be reduced or withheld altogether if the recipient has●Tcaused significant damage to the CCBJH Group or been subject to disciplinary
action. It may also a be specially increased where the recipient has given
particularly distinguished contribution. Any reduction, withholding, or special
increase will be decided at the Board of Directors Meeting, based on
deliberation by the Audit and Superviso1y Committee.

Variable compensation
 rovided at a certain point in the year as an incentive for achieving performance●Ptargets for each fiscal year.

 he target amount is set in the range of 30% to 85% of base sala1y, depending●Ton their responsibilities.

 he amount of payment varies in the range of 0% to 150% of the target amount●T

Annualbonus

depending on the achievement of performance targets in each fiscal year(companywide performance and individual evaluations) o provide motivation to achieve profitable growth, business income, sales●Tvolume, and net sales have been adopted as measures for evaluatingcompanywide performance, based on the Company's policy regarding thedetermination of compensation, etc. for Directors, etc.
 he amount to be paid may be adjusted if the Audit and Supervisory●T
Committee deliberated it necessary to do so, taking into consideration thestatus of payment ofbonuses to employees.

Directors’ compensation
The portion of thecompensation shown on theleft provided to Directors will
not exceed the following
amount.
Compensation limit for
Directors (excluding
Directors serving on the
Audit and Supervisory
Committee): 850 million yen
per year (approved byresolution no. 5 of 2019
Annual General Meeting of
Shareholders) (five in number
at the time of the resolution,
excluding Directors servingon the Audit and Supervisory
Committee)
In case where the Audit
and Supervisory Committee
has deliberated and deemed
it necessary, payments within
850 million yen may be madefor fringe benefits such ascompensation for exchange
rate fluctuation between
other countries and Japan,
housing allowance, etc*1.

Executive
category

Directors(except Audit & Supervisory
Committee members)[of which, outside directors]
Directors(Audit & Supervisory
Committee members)[of which, outside directors]

Total[of which, outside directors]

Basic
2compensation*

1,076

490

23

271

292

6

[44]

[44]

[－]

[－]

[－]

[4]

 ranted as an incentive for achieving medium to long term●G

performance targets.

 he number of shares to be issued shall be determined within the range of 0%●T(1) PSU(Performance
Share Units)

to 150% of the basic PSU amount depending on the achievement of
performance targets (only considering companywide performance) over thethree years after the share units have been granted.
 part of the shares to be issued shall be paid in cash for the purpose of●A
allocating funds for the payment of obligations, etc.
 o provide motivation to enhance corporate value over the mid to long term,●Tconsolidated ROE and consolidated sales growth rate have been adopted asmeasures for evaluating performance, based on the Company's policy regarding
the determination of compensation for Directors, etc.
 ranted for the purpose of aligning interests with shareholders,●G(2) RSU(Restricted
Stock Units)

creating incentives to increase corporate value, and strengthening retention oftalented people.

 predetermined number of shares are issued at retirement.
●A part of the shares to be issued shall be paid in cash for the purpose of●A

allocating funds for the payment of tax obligations, etc.

Annualbonus

Long-term3
incentives*

71

－

－

－

7

[71]

[－]

[－]

[－]

[7]

1,147

561

23

271

292

13

[115]

[115]

[－]

[－]

[－]

[11]

Total amount of compensation, etc. to persons for which total amount of compensation, etc.
is 100 million yen or more
Total amount by type of compensation, etc. (million yen)

The portion of thecompensation shown on theleft provided to Directors will
not exceed the following
amount.
Compensation limit for
Directors (excluding
Directors serving on the
Audit and Supervisory
Committee): The maximum
number of shares is 2,880
million yen and 1,800,000
shares for three fiscal years(approved by resolution no. 5of 2022 Annual General
Meeting of Shareholders)(five in number at the time of
the resolution, excluding
Directors serving on the
Audit and Supervisory
Committee)

Number of
eligible
directors

71

are adopted as long-term incentives.

 he basic amount of all long-term incentives (1) PSU and (2) RSU is set in the●T

Long-term
incentives

Retirement
payments[71]

 wo types of stock-based compensation systems, (1) PSU and (2) RSU,
●T

range of 15% to 100% of base salary based on the responsibilities. 50% of thisbasic amount is set as the basic PSU amount, and 50% is set as the basic RSU
amount.
 ith regard to (2) RSU, additional grants for the purpose of retention, etc. may●Wbe made in addition to the abovementioned basic RSU amount and in case for
Directors, up to the compensation limit detailed on the right if deemednecessary by the Audit and Supervisory Committee (Special RSU).

Total amount by type of compensation, etc. (million yen)

Total amount ofcompensation,etc.
(million yen)

Name

Executive
categoryBasic
2compensation*

Retirement
payments

Annualbonus

Long-term3
incentives*

Total amount ofcompensation,etc.
(million yen)

Calin Dragan

Representative
Director

263

15

190

212

680

Bjorn Ivar Ulgenes

Representative
Director

183

8

81

80

352

*1 R
 egarding fringe benefits, to support the execution of assignments outside the home country, compensation for exchange rate
fluctuations between other countries and Japan, a housing allowance, etc. are provided in accordance with the internal regulations
approved at the Board of Directors meeting through deliberations by the Audit & Supervisory Committee.
*2 Basic compensation includes an amount equivalent to fringe benefits (compensation for exchange rate fluctuation between othercountries and Japan, housing allowance, etc.), etc.
*3 Long-term incentives include PSU, RSU, and special RSU.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

72

Corporate Governance Strategy
External Activities

Through constructive dialogues with shareholders and investors, we shall promote theirunderstanding of the Company, leading to sustainable growth and enhanced corporate value
over the medium to long term.
To this end, we carry out a variety of IR and SR activities*, including the timely
and appropriate disclosure of information and constructive dialogues with our shareholders
and investors.

Dialogue with stakeholders
In 2023, as part of our IR activities, we held over 300 meetings with investors, including theMain IR activities in 2023
Category

2023 results

Details

Earnings Presentations

4 timesQuarterly earnings presentations were held by the president and CFO.
The presentation content is available via Webcast on the Company’s
website. (https://en.ccbj-holdings.com/ir/library/presentation.php)

IR meetings withanalysts and institutional
investors

About 310 times;
for approx. 520 people

Meetings and conference calls were held with analysts and institutional
investors. Top management took part as needed.

Participation in domestic
and overseas
conferences

5 timesFour times in Japan, and once overseas.
Top management took part as needed.

Other IR briefings

4 timesIR briefings including small meetings and facility tours participated by
top management.

Delivery of video
message fromthe President

4 timesVideo messages from the President were delivered to investors.
The latest message is available from the IR website.
(https://en.ccbj-holdings.com/ir/)

analysts and shareholders who make up the capital market. Additionally, we held dialogues withinstitutional investors as part of our SR activities.
In these dialogues, we exchanged opinions on the overview of our strategic business plan

Policy on Cross-Shareholdings
In principle, it is the Company’s policy to refrain from cross-shareholdings. However, there are"Vision 2028", sustainability initiatives such as ESG initiatives, governance systems,

cases in which the Company acquires and holds such shares to create business opportunities

and other matters to promote mutual understanding. We also received opinions onand maintain and strengthen its relationships with business partners and local communities. The

improvements that investors would like to see and how information should be provided.

Company shall evaluate and report on the cost of holding major cross-shareholdings and theThrough constructive discussions with investors, we will continue to actively

return on investment thereof in Board Meetings, and work on reducing the cross-shareholdings

engage in activities that will lead to enhanced corporate value by increasing mutual

based on such evaluations.

understanding and trust.

Shareholdings of CCBJI

In addition to meetings, senior management and directors regularly provide

Number of companies and the amount recorded in the balance sheet

information at earnings presentations and through other methods. We also webcast our

Number ofcompanies

Total book value of shares(million yen)earnings presentations in Japanese and English, and strive to participate in investor conferences

Unlisted stocks

89

2,778

held both domestically and internationally.

Stocks other than unlisted stocks

17

4,513

When engaging in dialogue with shareholders, the corporate governance department

Brands that the Company increased the number of shares in 2023

shares information with relevant departments within the Company to ensure a coordinatedresponse. We also report the opinions obtained during our meetings with shareholders to senior
management and the Board of Directors in a timely and appropriate manner to resolve issues.

Unlisted stocks
Stocks other than unlisted stocks

Number ofcompanies

Total amount spent to increase
the number of shares held (million yen)

-

-

-

10

The Company increased the number ofshares of this company brand as it is amember of the shareholding association of
the counterparty company

5* I R: Investor Relations*SR: Shareholder Relations

Reason for increase in thenumber of shares

Brands that the Company decreased the number of shares in 2023
Number ofcompanies

Total amount by selling and decreasing
the number of shares (million yen)

Unlisted stocks

16

303

Stocks other than unlisted stocks

29

4,928

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

73

Corporate Governance Strategy

Directors: List of Directors (As of March 26, 2024)

E

D

C

B

Directors

A

Representative Director, President

Calin Dragan

Calin Dragan has nearly three decades of experience
working for Coca-Cola bottlers globally, including
Japan. Previously, he served as president of The
Coca-Cola Company Bottling Investments Group.

B

Representative Director andVice President, CFO

Bjorn Ivar Ulgenes

Bjorn Ivar Ulgenes has considerable financial
experience in Europe, the Middle East, Africa and the
Coca-Cola System in Japan. Previously, he served as
Deputy Finance Director, of Europe, Middle East &Africa (EMEA) Group, The Coca-Cola Company.

A

Outside Director

Hiroko Wada

Hiroko Wada has rich experience in marketing,management, and organizational/HR development in
the consumer goods industry. Previously, she hasserved as an executive officer for The Procter &Gamble Company (U.S.) as well as CEO of Dyson
Ltd. and Toys"R"Us-Japan, Ltd.

G

H

I

Outside Directors
Attendance at theBoard of Directors
meetings

8/8
Number of sharesof theCompany held

8,573 sharesD

Outside Director

Hirokazu Yamura

Hirokazu Yamura has worked for Coca-Cola bottlers
in Japan for around 15 years. Currently, he serves as
President and CEO of Michinoku Coca-Cola BottlingCo., Ltd.

Attendance at theBoard of Directors
meetings

8/8
Number of sharesof theCompany held

3,429 shares

Attendance at theBoard of Directors
meetings

8/8
Number of sharesof theCompany held

- shares
Independent
director

E

Outside Director

Celso Guiotoko

Celso Guiotoko has experience in IT and supply chain
with multinational corporations. He has abundant
management experience and audit experience at
Nissan Motor Co., Ltd. and Nishimoto Co., Ltd.

Attendance at theBoard of Directors
meetings

8/8
Number of sharesof theCompany held

- shares
Independent
director

Outside Directors

C

F

Attendance at theBoard of Directors
meetings

8/8
Number of sharesof theCompany held

- shares
Independent
director

F

Outside Director (serving on the Audit &Supervisory Committee)

Hiroshi Yoshioka

Hiroshi Yoshioka developed management experienceand global knowledge at Sony Corporation andpreviously served as an outside director of
Coca-Cola East Japan Co., Ltd.

Attendance at theBoard of Directors
meetings

8/8
Number of sharesof theCompany held

3,854 shares

G

Outside Director (serving on the Audit &Supervisory Committee)

Nami Hamada

Nami Hamada has a wealth of experience in financeand accounting, including leading her own financial
consulting firm. She has served in management
positions at Lehman Brothers Japan Inc. and as an
outside director of SHIMADZU CORPORATION and
MetLife Insurance K.K.

H

Outside Director (serving on the Audit &Supervisory Committee)

Stacy Apter

Stacy Apter has global corporate management
experience in financial risk supervision, corporate risk
management, and support of the Board of Directors at
The Coca-Cola Company. She currently serves as SeniorVice President, Treasurer, and Head of Corporate
Finance of The Coca-Cola Company .

I

Outside Director (serving on the Audit &Supervisory Committee)

Sanket Ray

Sanket Ray has displayed strong leadership,particularly in commercial roles, at The Coca-Cola
Company and has global management experiencein the Asia region. He currently serves as presidentof the company’s India and Southwest Asia Unit.

Attendance at theBoard of Directors
meetings

8/8
Number of sharesof theCompany held

- shares
Independent
director

Attendance at theBoard of Directors
meetings

6/6
Number of sharesof theCompany held

- shares

Attendance at theBoard of Directors
meetings

6/6
Number of sharesof theCompany held

- shares

Independent
director

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

74

Corporate Governance Strategy

Directors: Appointment of Outside Directors and Independence Criteria
Appointment of outside directors
Three of the Company’s five directors (excluding directors

Reasons for appointment of outside directors
Category/Name

who are Audit & Supervisory Committee members), andthe four directors who are Audit & Supervisory Committee
members, are outside directors.

Outside Director

Hiroko Wada

Independent
outside directors

Reasons for appointment●

The Company has appointed Hiroko Wada as a Director (Outside Director) in order for her to utilize, for the management of the Company, theconsiderable experiences and global knowledge she has gained thus far as officer at The Procter & Gamble Company and as Representative
Director at Dyson Ltd. and Toys"R"Us-Japan, Ltd. As no special vested interest exists between the individual and the Company, the Company
deems that no risk of conflict of interest with general shareholders exists and has appointed the individual as an independent director.

●

The Company proposes to appoint Hirokazu Yamura as a director (outside director) with the expectation that he will apply his wealth ofmanagement expertise and global understanding obtained as Representative Director & President of Michinoku Coca-Cola Bottling Co., Ltd.
While the Company has the business relationship noted below with the corporate group of said company, the transaction value is small andtransaction prices and other conditions are conducted under appropriate conditions in the same manner as with other business partners. The
Company believes that its free business activities will not be hindered by the corporate group of said company. Accordingly, as there is no risk ofsignificant impact from said company, the Company deems that no risk of conflict of interest with general shareholders exists and has appointed
the individual as an independent director.
Relationship with the Company: The Company has a business relationship with Michinoku Coca-Cola Bottling Co., Ltd. that includes buying and sellingof products. (Sales, etc.: 0.5% of the consolidated revenue of the Company; Purchasing, etc.: 1.9% of the consolidated revenue of said company)●

The Company has appointed Celso Guiotoko as a director (outside director) in order for him to utilize, for the management of theCompany, the considerable experiences and global knowledge he has gained thus far at Nissan Motor Co., Ltd. and Nishimoto Co.,
Ltd. As no special vested interest exists between the individual and the Company, the Company deems that no risk of conflict ofinterest with general shareholders exists and has appointed the individual as an independent director.

●

Hiroshi Yoshioka has extensive management experience and global knowledge cultivated at Coca-Cola bottlers in Japan and at Sony
Corporation. He is expected to offer advice based on his abundant experience as a company manager and his knowledge, in areas ofimportant management decisions of the Company, response to foreseeable risks, internal control systems, etc.
Accordingly, the Company has appointed him as an outside director who is an Audit & Supervisory Committee member. As no
special vested interest exists between the individual and the Company, the Company deems that no risk of conflict of interest withgeneral shareholders exists and has appointed the individual as an independent director.

●

Nami Hamada has extensive experience in finance and accounting, including managing a finance-related consulting company herself, and hasabundant experience and global insights cultivated on the corporate management team of Lehman Brothers Japan as well as management
oversight experience as an outside director of SHIMADZU CORPORATION and MetLife Insurance K.K. She is expected to offer advice based onher abundant experience as a company manager and her knowledge in the field of finance, in areas of important management decisions, response
to foreseeable risks, internal control systems, etc. Accordingly, the Company has appointed her as an outside director who is an Audit &Supervisory Committee member. As no special vested interest exists between the individual and the Company, the Company deems that no riskof conflict of interest with general shareholders exists and has appointed the individual as an independent director.

As outside directors, the Company nominates
persons who are considered to contribute to increasing
the corporate value of the Company.

Outside Director

Moreover, if it has been determined through investigation

Hirokazu Yamuraby the Company within the scope of reason that none of
the criteria apply to the Company’s outside directors,
the Company will deem outside directors to possess
sufficient independence from the Company.

Outside Director

Celso Guiotoko

Standards for determination of independence of outside directors

If none of the criteria below apply, the Company considers
the director to have sufficient independence.

Outside Director(serving on the Audit &Supervisory Committee)

Hiroshi Yoshioka◎An employee and/or executive of the Company and/or a subsidiary within the past 10 years◎A person and/or executive who had a significant business

relationship with the Company within the past one year*1◎An employee and/or executive of the company who had a

Outside Director(serving on the Audit &Supervisory Committee)

Nami Hamada

significant business relationship with the Company within
the past one year*1◎A consultant, certified public accountant, attorney, etc. who

has received significant compensation from the Company
other than executive compensation within the past one year*2◎An entity or executive thereof who has received a significant

Outside Director(serving on the Audit &Supervisory Committee)

Stacy Apter

donation from the Company within the past one year*2◎A close relative of any of the above*3*1 	If the transaction between the Company and the person and/or the company
exceeds 2% of the Company’s consolidated revenue in the latest fiscal year, this will
be considered significant*2 	If the annual amount of compensation or donation to the person/entity exceeds JPY
10 million, this will be considered significant*3 Within the second degree of kinship

Outside Director(serving on the Audit &Supervisory Committee)

Sanket Ray

Stacy Apter is Senior Vice President, Treasurer and Head of Corporate Finance at The Coca-Cola Company. She has displayed strong leadership,particularly in the areas of global financial risk supervision and corporate risk management and has abundant management experience as part ofthe company’s management team, including in terms of providing support to the Board of Directors. She is expected to offer advice based on her
abundant experience in finance and risk management, in areas of important management decisions, response to foreseeable risks, internal control
systems, etc. Accordingly, the Company has appointed her as an outside director who is an Audit & Supervisory Committee member.
Relationship with the Company: The Company has concluded contracts concerning the production, sales, trademark usage, etc. of Coca-Cola,etc., with The Coca-Cola Company.

Sanket Ray is president of the India and Southwest Asia Unit at The Coca-Cola Company. He has displayed strong leadership, particularly
in commercial roles, at the company and has extensive management experience at the company's business units in Asia. He is expected
to offer advice based on his abundant experience as a global company manager, in areas of important management decisions, response
to foreseeable risks, internal control systems, etc. Accordingly, the Company has appointed him as an outside director who is
an Audit & Supervisory Committee member.
Relationship with the Company: The Company has concluded contracts concerning the production, sales, trademark usage, etc. of Coca-Cola,etc., with The Coca-Cola Company.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

75

Corporate Governance Strategy

Directors: Attributes of Directors and Skills Matrix
Our Board of Directors consists of individuals who bring expertise in a variety of areas, including business management, finance and sustainability,
as well as global insight, to ensure a well-balanced overall structure.
Attributes of Board Members

Executive directors

Skills Matrix(As of March 26, 2024)

Outside directors

Name

Assumptionof officeTerm ofoffice(Year)

78%

Independent directors

Outside directors in
Audit & Supervisory
Committee

56%

100%

5

Female directors

33%

Nationalities

3

7

Calin Dragan

March 2019

Bjorn Ivar Ulgenes

4

Audit &
Supervisory
Committee
members

SkillsIndependent
directors

Corporate
management

Globalbusiness

Food andbeverageindustry

1

●

●

●

March 2019

1

●

●

●

Hiroko Wada

March 2019

1

●

●

●

●

Hirokazu Yamura

March 2020

1

●

●

●

Celso Guiotoko

March 2023

1

●

●

Hiroshi Yoshioka

March 2023

2

●

●

●

●

●

Nami Hamada

March 2019

2

●

●

●

●

●

Stacy Apter

March 2023

2

●

●

●

●

●

Sanket Ray

March 2023

2

●

●

●

●

●

2

22%

Outsidedirectors

Finance/
Audit

Sustainability/
CSV

●
●

●
●

●

●
●
●
●
●

6
Criteria for determining the necessary skills possessed by directors
The Company assesses the expertise and experience possessed by directors based on the following criteria.

Age

70s

22%

60s

11%

40s

11%

Average59
years old
50s

56%

● Criteria

Items

Corporate
management●

A person who has experience as a representative such as CEO or COO

Global business●

A person who global business experience equivalent knowledge as a division director or above●

A person who has experience as a division director or above in a company handling beverages or food products,

Food and beverageindustry
Finance/Audit
Sustainability/CSV

or who has equivalent knowledge
A person who has experience as a division director or above in a Finance/Accounting Division, or who has the equivalent knowledge● A person who has a national qualification in finance and accounting, such as a CPA●●

A person who has experience as a director or above in Sustainability/CSV Division, or who has equivalent knowledge

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

76

Corporate Governance Strategy
Messages from Outside Directors

CCBJH’s governance built on
its unique nature of rich diversity
Diversity drives transformation

Compared to many companies in Japan, I believe CCBJH is

Outside Director(Audit and Supervisory
Committee member) andIndependent Officer

Hiroshi Yoshioka

they successfully create a positive impact together.
It is important to continue these efforts.

Key points for future growth

Communication and roles of
the Board of Directors
I believe an important factor for sustainable growth is to sellgood products. Working closely with Coca-Cola Japan, whoa unique company with people of different nationalities anda good fusion of diverse cultures. This has been one of the

The Board of Directors is also diverse in terms of nationality,

takes charge of product planning and development, is theenablers for their agile business processes andgender, and expertise. It is also characterized by a number ofsource of CCBJH’s growth. The two parties have beentransformations. I have many opportunities to speak withindependent directors with extensive business experience.

working well together at the employee level. To build on this,people of other companies and often mention CCBJH as an
example of a company who well capitalizes on diversity.

Some of them have built experience in global business

we now create opportunities for CCBJH directors andmanagement like myself, while others are well versed in

Coca-Cola Japan management team to share their views

marketing, finance, and so forth. In meetings of these diverse

openly. Under this collaboration across the Coca-Colatransformations they have put in place. While many

directors, they share opinions from many viewpoints, andSystem, I hope we can offer as many products as possible

companies recognize the importance of DX, it hasn't madesometimes they discuss so vigorously that they run out of time.

that the employees are proud to talk about with their families

The digital transformation (DX) is one of the fast

much progress in many Japanese companies due to various

I assumed the chair of the Audit & Supervisory

and friends.

factors. In this regard, CCBJH's management team has a

Committee in March 2023. At the time, I discussed with the

In conclusion, it is critical for the company tostrong understanding of digitalization and makes agile

secretariat that I wanted to further deepen the understanding

accelerate its current transformation efforts in order todecisions, creating a system that endorses logic-basedof governance and held a session for directors to learn withachieve sustainable profit growth. I believe the promotion ofactions to move forward. One such example is the earlylawyers and other specialists. Based on what was discussed

DX plays an important part of such efforts. The key is tointroduction of the smart phone app, Coke ON®, which offers

then, I made several improvements to further clarify thedrive DX in manufacturing, logistics, sales, and other various

a range of industry-leading services.

respective roles of the Board of Directors and the Audit &areas and to go beyond mere digitalization so that we canSupervisory Committee and to promote appropriate

make a difference in the way we do business. I hope thethe company in a challenging situation at times. I feel they

communication while ensuring independence. I am committed

Company will continue to take on the challenges of bold

understand each other and fuse the cultures well so thatto constantly making improvements going forward as necessary.

transformations.

In the meantime, the mixture of different cultures puts

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

77

Corporate Governance Strategy
Messages from Outside Directors

To achieve sustainable growth,
it is important to keep transformingwith a steady sense of speed

Outside Director(Audit and Supervisory
Committee member)

Stacy Apter

maintaining the same sense of speed going forward.

perspective that in my view would help promote efficient

By formulating a series of strategic plans, the company ismanagement and solid financial controls so thatworking to improve its profitability, operate more efficiently

our shareholders and investors can keep placing their

In the global Coca-Cola system, CCBJH stands out asand effectively, and increase sales, which are all easier said

trust in CCBJH.

a bottler offering a truly diverse range of products andthan done. In this context, CCBJH is continuously driving

operating under a fast cycle of new product launches.

change based on the concept of data-driven management,This partly owes to the distinctive characteristics of the

including the launch of NeoArc, a joint venture established

In order to achieve sustainable growth, it will require thisJapanese market, which demands a broad variety ofwith Accenture Japan in January 2024.

organization to further advance the transformation journey it

CCBJH is unique among the global bottlers
in the Coca-Cola Systemproducts. The company has been responding to thesemarket demands with agility in various aspects, including
manufacturing and distribution. I see this as a key feature.

Governance structure

What to expect from CCBJH

has embarked on to date. I think the company has now
entered a new phase in its strategic business plan.

In 2023, I joined CCBJH as a director serving on the Audit

In conjunction with the ongoing efforts to improveand Supervisory Committee. At CCBJH, the Board of

profitability and save costs, promoting data-driven

drive to improve efficiency are also its defining attributes.

Directors and the Audit and Supervisory Committee aremanagement will also be a high priority. To grasp the market

CCBJH has undergone numerous mergers and consolidations

each functioning well to fulfill their respective roles,

trends and behaviors accurately, there is a need to gatherof legacy bottlers to become what it is today, operating as

which make me feel assured that governance is working

detailed information and analyze them in depth. Moreover,

one of the largest bottling companies in the Coca-Cola

effectively in this company under clear rules. The company

the insightful approach to get the most out of the market in

System worldwide. It is worth noting how efficiently thealso lays out its strategic direction and the responsibilities

collaboration with Coca-Cola (Japan) Company (CCJC) willcompany manages this large-scale business.

of the directors clearly. When I attend the meetings

continue to be imperative.

In addition, the size of the business it operates and the

Future agendaof the Board of Directors and the Audit and

The ability to achieve them all through repetitive

Supervisory Committee, I provide input based on mydemonstration of excellence and brilliance at execution isI feel that it is vital for this company to continue with theexperience and knowledge in personnel affairs and humanembedded in CCBJH's DNA, and I believe it is important thatbusiness transformation that it has been implementing, while

resource development, as well as from a financial

we capitalize on this inherent strength.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

78

Corporate Governance Strategy
Ethics and Compliance

We value integrity—acting with noble intentions based on sincerity and trust.
Regardless of the situation, we expect everyone to act correctly and honestly, with integrity, and be responsible for their own actions in accordance with standards and laws.

Ethics and compliance policies

Anti-bribery policy

To remain a company that sustainably develops together with society, the CCBJH Group must

The goal of the anti-bribery policy is to provide all employees, including directors and officers,

fulfill its social responsibilities, and every individual employee should always act appropriately.

with a certain awareness of anti-bribery laws and regulations in order to prevent inadvertent

As part of this, we have established the Code of Business Conduct and Ethics and foster aviolations and identify potential problems that should be properly addressed. We are educating

corporate culture that emphasizes ethics and compliance. Additionally, in line with one of ouremployees to not only understand and recognize the importance of this policy, but also to

Values, we value integrity—acting with noble intentions based on sincerity and trust. The

comply with this policy when working every day.

Code of Business Conduct and Ethics covers four areas: appropriate conduct, respect forhuman rights, relationship with stakeholders, and conflicts of interest. All employees are

We also prohibit fraudulent payments or the provision or receipt of any other illicit
benefits to or from private individuals or corporations.

expected to observe all laws and regulations as well as the Code, internal rules and workplaceprinciples. They are also expected to act with integrity and honesty, to think before acting
and to seek guidance when in doubt.

Compliance education
To further foster and instill high ethical standards and compliance awareness within theGroup, we regularly disseminate ethics and compliance bulletins to all employees, andimplement awareness and education activities, including training for specific groups, such as
management or new employees, and e-learning programs for all employees.

Ethics and compliance reporting systems
We have established the Ethics & Compliance Reporting Hotline (a dedicated email address
and telephone number) to enable employees to directly consult the hotline about mattersthat may conflict with the Code of Business Conduct and Ethics. It is possible to consult the
hotline anonymously, and we are striving to increase awareness of the hotline and create anenvironment that facilitates employees' consulting the hotline using a variety of methods
including publishing ethics and compliance bulletins, posting the contact details of the hotline
on our intranet, and displaying posters in workplaces. When a report is received, it isinvestigated, and if a violation is deemed to have occurred, it is dealt with appropriately andcorrective measures are taken. We also strive to protect employees throughout the

Ethics and compliance poster
The Code of Business Conduct& Ethics

https://en.ccbji.co.jp/vision/pdf/en/CCBJIgroup_Ethics_
en.pdfAnti-Bribery Policy

https://en.ccbj-holdings.com/corporate/compliance/pdf/
Anti-Bribery-Policy_en.pdf

consultation process, and prohibit the disadvantageous treatment of any employee who
initiates a report.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Data Section

80

Financial Data Summary81

Non-Financial Data Summary

82

Company Overview and Stock Information

83

Our Group Companies

84

External Evaluations and Participationin Initiatives

Financial Data Summary

Introduction

Value Creation Story

JGAAP
Items for which JGAAP and IFRS have differing notations are marked "JGAAP/IFRS."

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

80

IFRS

2014

2015

2016

2017

2017

2018

2019

2020

2021

2022

2023

▲

Operating results (Fiscal year):
Revenue/Revenue(Millions of yen)

424,406

440,476

460,455

872,623

837,069

927,307914,783

791,956

785,837

807,430

868,581

Gross profit(Millions of yen)

212,881

223,951

238,611450,249

412,782

452,151

441,060

362,916

350,505

351,755384,216Gross profit margin
Operating income/Business income

(%)

50.2

50.8

51.8

51.6

49.3

48.8

48.2

45.8

44.6

43.6

44.2

(Millions of yen)

11,00814,262

21,14340,57940,177

23,276

15,042

169(14,662)(14,443)

2,025

(%)

2.6

3.2

4.6

4.7

4.8

2.5

1.6

0.0

ー

ー

0.2

EBITDA(Millions of yen)

ー

ー

ー

ー

81,56070,807

71,99359,08342,49831,34348,485

Net income attributable to owners of the parent(Millions of yen)

4,482

9,970

5,245

25,244

21,967

10,117(57,952)(4,715)(2,503)(8,070)1,871

Operating income margin/Business income margin

Cash flow status (Fiscal year):
Cash flows from operating activities(Millions of yen)

28,62840,422

34,38872,45073,014

51,244

42,62943,71635,982

42,717

59,102

Cash flows from investing activities(Millions of yen)

(9,590)(24,994)(19,921)(41,090)(14,299)(48,628)(68,308)(52,076)

15,271(23,090)(14,287)

Free cash flow

(Millions of yen)

19,037

15,427

14,46731,35958,715

2,616(25,679)(8,360)51,253

19,62844,815

Cash flows from financing activities(Millions of yen)

(37,498)

22,416(7,546)(26,159)(26,717)(55,835)

73,994

20,912(67,134)(46,050)(15,229)

Cash and cash equivalents at end of fiscal year

(Millions of yen)

41,83079,82886,727

118,741

118,742

65,510113,825

126,378

110,497

84,074

113,660

Total assets(Millions of yen)

337,260

378,105

377,468

883,918

929,304

877,472

952,444939,603

867,111826,737

844,832

Interest-bearing debt

(Millions of yen)

ー

ー

ー

ー

81,385

102,814

246,521271,233

214,124

179,970

181,397(Times)

ー

ー

ー

ー

0.1

0.2

0.5

0.5

0.4

0.4

0.4

(Millions of yen)

254,150

260,878

261,173

627,485

655,038

580,906

506,491

502,093492,451

476,358

470,021

Net profit per share (EPS)/Basic earnings per
share (EPS)

(Yen)

41.07

91.35

48.05

144.26125.5352.68(322.22)(26.29)(13.96)(45.00)

10.43

Net assets per share (BPS)/Equity attributable toowners of the parent per share (BPS)(Yen)

2,325.19

2,386.81

2,389.28

3,070.01

3,204.90

3,163.63

2,821.27

2,797.03

2,745.12

2,655.38

2,618.49

Annual dividend per share

(Yen)

41.00

41.00

46.00

44.00

44.00

50.00

50.00

25.00

50.00

50.00

50.00

(%)

99.8

44.9

95.7

30.5

35.1

94.9

ー

ー

ー

ー

479.4

(Yen)

1,661

2,457

3,445

4,115

4,115

3,285

2,791

1,609

1,320

1,437

2,025

Return on equity (ROE)/Equity income margin
attributable to owners of the parent (ROE)

(%)

1.8

3.9

2.0

5.7

4.6

1.6

(10.7)

(0.9)

(0.5)

(1.7)

0.4

Return on assets (ROA)/Total assets/Pre-tax
profit ratio (ROA)

(%)

3.0

3.8

5.5

6.3

5.6

1.6

(6.1)

(1.3)

(2.4)

(1.5)

0.4

(%)

75.2

68.9

69.1

70.9

70.4

66.2

53.1

53.4

56.8

57.6

55.6

(Times)

40.4

26.9

71.7

28.5

32.8

62.4

(8.7)

(61.2)(94.6)(31.9)

194.2

Financial position (End of fiscal year):

D/E ratio
Net assets/Total equity

Per-share information:

Consolidated dividend payout ratio
Stock price at end of year

Other financial data:

Equity ratio/Percentage of equity attributable toowners of the parent
Price earnings ratio (PER)(Times)

0.7

1.0

1.4

1.3

1.3

1.0

1.0

0.6

0.5

0.5

0.8

Capital expenditure(Millions of yen)

22,783

16,181

25,72842,53942,53953,136

103,882

65,52140,18442,54033,668Depreciation/Depreciation and amortization
expenses(Millions of yen)

22,94324,04817,49137,352

41,38347,531

56,951

59,58357,16045,786

46,460

Outstanding shares at end of year

(1,000 shares)

111,126

111,126

111,126

206,269

206,269

206,269

206,269

206,269

206,269

206,269

206,269

Treasury stock at end of year

(1,000 shares)

1,984

1,987

1,989

2,016

2,016

22,793

26,917

26,92026,92526,92826,834

Price book value ratio (PBR)

Equity-related data:

Notes: 1 . The data through 2016 represents results for Coca-Cola West Co., Ltd. prior to the business integration. The data for 2017 represents results for Coca-Cola Bottlers Japan Holdings Inc. from the second quarter.
Notes: 2. Amounts are rounded down to the nearest unit under Japanese standards and rounded up or down to the nearest unit under IFRS. Percentages are rounded up or down to the nearest unit.
Notes: 3. In December 2020, as a result of the decision to sell all shares in Q'sai Co.,Ltd held by the Company, the Healthcare and Skincare business has been classified as a discontinued operation and assets and liabilities of the Healthcare and Skincare business have been classified as the assets held for sale and liabilities
directly related to assets held for sales. Therefore, these are excluded from the above major financial data for 2020 and 2021. This sale of shares was completed on February 1, 2021.

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Non-Financial Data Summary

Introduction■ Environment

2019

2020

2021

2022

2023

Intensity of product
Water used per 1L of product

(L/L)

3.26

3.23

3.24

3.25

3.20

Energy used per 1L of product*1(MJ/L)

0.87

0.88

0.87

0.87

0.86

Water use / Replenishment

Value Creation Story

Growth Strategies to Enhance Corporate Value■ Social

685,231,000

163,572,000

107,478,000

105,721,1 5 8

4,714,000

1,289,000

119,000

1,276,000

1,353,000

In-kind giving of product or services donations,projects/partnerships or similar(The amount equivalent in currency)(Yen)

17,036,000

257,322,000

34,110,000

150,056,000

145,782,000Management overheads(Yen)

1,320,133,000

1,081,898,000

786,000,000

726,222,000

592,637,000(Persons)

1,898

432

551

3,579

3,438

(Persons)

3,706

9,726

9,812

9,409

10,000

(%)

35.3

100

100

100

100

(Persons)

1,967

2,787

2,861

2,439

2,711

Replenishment area

(ha)

7,613

7,963

8,117

8,136

8,135

Replenishment rate

(%)

322

364

353

420

411

Electricity(1,000 kWh)

316,543

308,052

314,017322,219

326,716

Occupational Health & Well-being

City gas(1,000 m3)

47,71644,67245,76646,306

46,968(t)

10,350

9,309

9,642

9,933

9,904

Employees making use offlexible working hours

Fuel oil

(KL)

1,396

1,036

1,126

1,091

1,100

Gasoline

(KL)

8,445

6,044

5,315

5,782

5,990

Diesel(KL)

57,64153,64659,37649,85648,077

(t)

824

848

745

720

813

Electricity(1,000 kWh)

56,42564,90368,42068,766

66,990City gas(1,000 m3)

102

184

116

105

113

Liquefied petroleum gas (LPG)

(t)

111

93

90

99

96

Liquefied natural gas (LNG)

(t)

ー

574

187

201

269

Kerosene

(KL)

17

15

13

16

15

Electricity(1,000 kWh)788,508749,257

927,984895,240

849,989

Manufacturing(1,000 tons CO2 equivalent)

265

272

269

270

277

Logistics(1,000 tons CO2 equivalent)

174

155

168

144

144

Offices*5(1,000 tons CO2 equivalent)

24

33

32

33

31

Sales (Cold & hot drink equiptments)*6(1,000 tons CO2 equivalent)

332

352

402

389

372

Number of employee volunteer participants

Liquefied petroleum gas (LPG)

Offices*5

Sales (Cold & hot drink equiptments) *4

Number
Implementation rate

Employees making useof working from homearrangements

Number

(%)

18.7

90

95

98

97

Number of employees used ofchildcare leave

Female(Persons)

135

136

137

138

125

Male

(Persons)

9

17

27

30

57

(%)

ー

97

99

100

98

Implementation rate

Return rate of employees used childcare leave■ Governance

Manufacturing waste

Number of Board of Directors meetings held/
Term of Office
Ratio of Outside Directors in Audit &Supervisory Committee

Total amount of manufacturing waste(t)

108,440

105,508

103,590

105,701

104,952

Recycled amount of manufacturing waste(t)

108,095

105,364

103,499

104,093

104,477

Recycling rate of waste from plants

(%)

99.68

99.90

99.90

98.50

99.50

Main Investor Relations activities

Recycling rate of coffee grounds constitute thebulk of our generated waste materials

(%)

100

100

100

100

100

Recycling rate of tea leaves constitute thebulk of our generated waste materials

(%)

100

100

100

100

100

2019

2020

2021

2022

2023

Employee
16,959(3,578)15,772(4,008)15,083(3,777)

14,484(3,416)

14,010(3,163)

Female employees*6

(%)

12.6

19.5

19.4

18.6

18.3

Females in all management positions, including junior, middle and senior
management (as % of total management workforce)*7

(%)

4.6

5.8

6.1

6.6

7.4

Females in junior management positions, i.e. first level of management(as % of total junior management positions)

(%)

4.8

5.9

6.3

7.0

7.6

Females in management and leader positions

(%)

ー

9.3

9.7

10.0

10.4

Females in board of directors

(%)

22.2

22.2

22.2

33.3

33.3

Rate of Employment of persons with disabilities*8

(%)

ー

2.45

2.39

2.48

2.42

Engagement rate based on employee survey

(%)

ー

61.4

68.9

66.8

70.7

1.35

1.06

1.20

1.13

1.11

ー

0.71

1.03

0.38

0.76

Occupational safety
Lost time injury frequency rate (LTIFR)*9
Lost time injury frequency rate of contractors (LTIFR)*10
Total incident rate (TIR)*11

ー

0.41

0.55

0.51

0.46

Lost time incident rate (LTIR)*12

ー

0.21

0.24

0.23

0.22

(Persons)

ー

20,75541,73649,150180,984(Hours)

ー

8.1

11.9

10.8

15.8

(Yen)

ー

58,932

67,76074,44285,050Training/Program
Number of participants in personnel trainings and education programs
sponsored by the company
Average hours per FTE of training and development
Average expense per FTE of training and development*13

2021

2023

2022

(%)

56

56

56

56

56

(Times/Year)

8/1

8/1

8/1

7/1

8/1

(%)

100

100

100

100

100

(Times/Year)

8/2

8/2

8/2

5/2

5/2

(Times)

4

4

4

4

4

(Times/People)

Over 200
companies

150/270230/340250/390310/520

Participation in conferences (Domestic/Overseas)(Times)

8

4

6

6

5

Other IR briefings(Times)

2

3

3

4

4

Critical violations of the Code of Business Conduct
and Ethics

None

None

None

None

None

Payment of critical environment or ecological fines or
penalties over the past four years

None

None

None

None

None

Political contributions/Donations or spending forlobbyists/lobbyist organizations

None

None

None

None

None

Earnings Presentation
IR meetings with analysts and institutional investors(Approximate number of events/ participants)

Ethics and Compliance*1 The CCBJH Group uses the Coca-Cola system’s global thermal conversion factors in accounting.
*2 	Accounting process is here. Third-party assurance report and Accounting process
https://en.ccbji.co.jp/csv/esg/assurance/*3 	In regard to calculating the electricity use and associated greenhouse gas emissions of office activity, the calculations were conducted by estimation
based on the purpose and the number of employees for 15 out of 359 business locations. This was due to reasons such as being unable to obtain an
accurate measurement of electricity use at leased office locations.
*4 In addition to vending machines, coolers and dispensers are included in 2021.
*5 	The number includes employees at all levels, except partner employees, part-time employees, executives, and temporary employees.
*6 	Female employees (% of total workforce as of December 1, 2023) includes partner employees and part-time employees/
Female rate in all permanent employees 12.7% (December 1,2023)*7 Managers refer to employees in the top five of nine grades determined by organizational and job roles and responsibilities.
*8 The figure is in the "Employment Report for Persons with Disabilities" (June 1st) submitted to the Director of Public Employment Security Office.
*9 Number of lost-time incidents ÷ total no. of working hours x 1,000,000 targeting permanent/non-permanent employees of CCBJH group.
*10 	Number of lost-time incidents ÷ total no. of working hours x 1,000,000 targeting subcontractors of CCBJH group.
(vendors outside the system, contractors, visitors)*11 Number of incidents ÷ total no. of working hours x 200,000 targeting permanent/non-permanent employees of CCBJH group.
*12 Number of lost-time incidents ÷ total no. of working hours x 200,000 targeting permanent/non-permanent employees of CCBJH group.
*13 Training and capability development cost includes consulting fees, etc.
*14 Contribution as Coca-Cola system partly included.
*15 The figures in the annual securities report of each fiscal year.
▲(Persons)

Number of employees (Average number of temporary workers)*5

2020

Audit and supervisory committee*15

Number of Audit & Supervisory Committee meetings
held/Term of Office■ Social

2019

Independence of Board of Directors*15
Ratio of Independent Directors

Greenhouse gas emissions*2

2023

436,588,000

13,365

Logistics

2022

(Yen)

13,287

Liquefied natural gas (LNG)

2021

(Yen)

12,993

Manufacturing

2020

Cash contributions*14

12,5602

2019

Time of employee volunteering during paid working
hours (The amount equivalent in currency)

13,316

Energy use*

81

Data Section

Corporate Citizenship/Philanthropic Program(1,000 m3)

Water use volume

Foundations Supporting the Corporate Value Growth

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Company Overview and Stock Information

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Foundations Supporting the Corporate Value Growth

Data Section

82(As of December 31, 2023)

Corporate Profile

Major shareholders (As of December 31, 2023)

Company nameCoca-Cola Bottlers Japan Holdings Inc.

Headquarters

Tokyo Midtown Tower, 9-7-1 Akasaka,
Minato-ku, Tokyo 107-6211, Japan

Shareholder

Composition of shareholders

Number of shares
Percentage of
owned (thousands) voting rights (%)

Coca-Cola (Japan) Co., Ltd.

27,956

15.32

The Master Trust Bank of Japan, Ltd.
(Trust Account)

21,16311.60
3.99FoundedDecember 20, 1960

Capital15,232 million yen

Goldman Sachs International

7,282

Number of employees

14,010

Custody Bank of Japan, Ltd. (trust account)

6,895

3.78

Securities code

2579

Ichimura Foundation for New Technology

5,295

2.90

Authorized shares

500,000 thousand shares

Outstanding shares
Number of shareholders
Number of shares per
trading unit

206,269 thousand shares(common stock: 1,817,428 shares)
67,097(Shareholders with voting rights
excluding treasury stock: 51,539)
100 shares

Note:The Company has issued only common shares, and has not issued any class shares or preferred shares.

Bond Information

JPMorgan Securities Japan Co., Ltd.

4,734

2.59

Satsuma Shuzo Co., Ltd.

4,406

2.41

Senshusha Co., Ltd.

4,088

2.24

Coca-Cola Holdings West Japan Inc.

4,075

2.23

Mitsubishi Heavy Industries Machinery
Systems, Ltd.

3,912

2.14

Note:The treasury shares (23,784 thousand shares) are excluded from the list above and from the calculationof ratio of shareholding because they do not have voting rights. Also, the treasury shares do notinclude the Company shares held by Executive reward BIP Trust are and Stock-granting ESOP Trust.

(1 unit: 100 shares)

Individuals andothersFinancial
institutions

23.73%(50,390 shareholders,
487,676 units)19.25%(36 shareholders,
395,693 units)

Foreigncorporations

23.46%(435 shareholders,
482,093 units)

CCBJH 1st Series ofUnsecured Straight Bond

40,0000.100

September 19,
2024

CCBJH 2nd Series ofUnsecured Straight Bond

60,0000.200

September 18,
2026

CCBJH 3rd Series ofUnsecured Straight Bond

50,0000.270

September 19,
2029

Stock price (yen)Nikkei Index (close)

3.89%(33 shareholders,
79,941 units)

Other domestic
corporations

Stock price and stock trading volume
Total amount issued Coupon rate
Maturity date(million yen)(%)

Securities
companies

29.67%(646 shareholders,
609,866 units)

CCBJH stock price

CCBJH stock trading volume

Stock trading volume (thousand shares)

40,00038,00036,00034,00032,00030,00028,00026,00003,500

Rating Information

30,0003,000

Japan Credit Rating Agency, Ltd.
(JCR) long-term issuer rating
Rating and Investment Information,
Inc. (R&I) issuer rating

2021

2022

2023

AA-

AA-

AA-

25,0002,500

20,0002,000

15,000

1,500

A＋

A＋

A＋

1,000

10,000

500

5,000

0

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 (month)

2021

2022

2023

0

2024

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

Our Group Companies

Introduction

Value Creation Story

Growth Strategies to Enhance Corporate Value

Coca-Cola Bottlers Japan Inc.

Kadiac Co., Ltd.

Principal
Business

Manufacturing, distribution, and sales ofbeverage products and alcoholic products

Principal
Business

Vending machine operation business

Head Office

Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo

Head Office

1 Senshu Airport Minami, Sennan, Osaka

Representative

Representative Director, President and CEO
Calin Dragan

Representative

Representative Director and President
Hisashi Terahara

Coca-Cola Customer Marketing Co., Ltd.

Coca-Cola Bottlers Japan Business Services Inc.

Foundations Supporting the Corporate Value Growth

Data Section

NeoArc Inc.

Principal
Business

Providing human resources, general affairs, finance,
procurement, customer service sales support on
consignment, development, installation, operation,
maintenance, and provision of repair services forcomputer hardware, computer software, computer
systems, and computer networks

Head Office

Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo

Representative

Representative Director
Bjorn Ivar Ulgenes

Principal
Business

Sales and export / import of beverage products,
nonessential beverage products, andother beverage products

Principal
Business

Shared service business to support the sales ofbeverage, nonessential beverage, alcoholic beverage,
dairy beverage, and food products, Management ofbeverage sales equipment

Head Office

Roppongi Hills North Tower,
6-2-31, Roppongi, Minato-ku, Tokyo

Head Office

Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo

Principal
Business

A captive insurance entity that only insures risks of
the CCBJI group

Representative

Representative Director and President
Maki Kado

Representative

Representative Director and Chairman, President
Bjorn Ivar Ulgenes

Head Office

2 Shenton Way, #26-01 SGX Centre I, Singapore

Representative

Director
Bjorn Ivar Ulgenes

Coca-Cola Bottlers Japan Vending Inc.
Principal
Business

Vending machine operation business

Head Office

Sumitomo Fudosan Shinjuku Central Park Building,
6-18-1 Nishishinjuku, Shinjuku-ku, Tokyo

Representative

Representative Director and President
Takahide Baba

83

CCBJI INSURANCE (SINGAPORE) PTE. LTD.

Coca-Cola Bottlers Japan Benefit Inc.
Principal
Business

Operation of Special subsidiary company, recruitmentof people with disabilities within the group, support
for retention, and related office work operations, etc.

Head Office180, Kano, Okegawa, Saitama

Representative

Representative Director and President
Yuki Higashi

FV Japan Co., Ltd.

Bannai Saketen Inc.

Principal
Business

Manufacturing, processing, and sales of beverage
products and office coffee service business, etc.

Principal
Business

Operation of ordering and invoicing system foralcoholic beverage distribution industry,
distribution and sales of alcoholic products

Head OfficeSunshine 60 Bldg.,
3-1-1 Higashi-Ikebukuro, Toshima-ku, Tokyo

Head Office

2-29-10, Motosojamachi, Maebashi-shi, Gunma

Representative

Representative Director and President
Tatsuhiko Sano

Representative

Representative Director
Kengo Takenaka

Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

External Evaluations and Participationin Initiatives
Incorporation into
SRI indices

CDP Supplier
Engagement Rating

Participation in outside initiatives

United Nations
Global Compact

FTSE Blossom Japan
Sector Relative Index

S&P/JPX
Carbon Efficient Index

We strive to disclose information about our environmental
initiatives and have received recognition from administrative
agencies and external evaluators for our efforts.

CDP Climate Change
and Water Security
surveys

Value Creation Story

Growth Strategies to Enhance Corporate Value

In recent years, in both the domestic and international capital markets, there has been agrowing interest in ESG investments where non-financial initiatives alongside the financial
indicators are considered as evaluation criteria for investment judgement.
We have been included in multiple ESG indices.

Dow Jones Sustainability
Asia Pacific Index(DJSI Asia Pacific)

Environment

Introduction

Task Force on Climaterelated Financial
Disclosures (TCFD)

Green Partner

Eco-First
program member

SocialMorningstar Japan ex-REIT
Gender Diversity Tilt Index

Foundations Supporting the Corporate Value Growth

GeneralData Section84

We have received excellent ratings fromexternal evaluation agencies due to oursustainability practices in different sectors.

EcoVadisSustainability Survey

Nikkei SDGs
Management Survey

We have received certifications and high ratings from government and external evaluators forour approach of addressing social issues.

Health and Productivity
Management Outstanding
Organizations (White 500)

Nikkei Smart WorkManagement Survey

Forbes JAPANWOMEN AWARDPRIDE Index Rainbow
and Gold

Eruboshi Certification

We actively participate in various outside initiatives to address societal challenges.

Climate Change Initiative(Japan Climate Initiative)

GX League

Task Force on Naturerelated Financial
Disclosures (TNFD)

The 30by30 Alliancefor Biodiversity

BME(Business for
Marriage Equality)

Business Support forLGBT Equality
in Japan

Declaration ofPartnership Building

https://en.ccbji.co.jp/csv/evaluation/
Coca-Cola Bottlers Japan Holdings Inc.

Integrated Report 2023

CCBJH Group’s Information Disclosure
We disclose information in a timely andappropriate manner to enable stakeholders tobetter understand our business and to place theirtrust in the CCBJH Group. This Integrated Reportis produced to broadly communicate financial
and non-financial information to our stakeholders.
Comprehensive information on investor relations
and our environmental, social and governance(ESG) initiatives are available on our website.

Financial information
Investor Relations
・Earnings Presentation
・Earnings Release・Securities Report and others

Shareholder Information
Investor Relations

https://en.ccbj-holdings.com/ir/

Non-Financial information
Sustainability
・Corporate Governance Report
・TCFD

・GRI Content Index
・ESG Data・G HG Emissions Results
Based on the GHG Protocol
・External Evaluation and others

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

Sustainability

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

For inquiries

Please use the Inquiries form on the Coca-Cola Bottlers Japan Holdings Inc. website.

https://en.ccbj-holdings.com/inquiry/©2024 Coca-Cola Bottlers Japan Holdings Inc. All Rights Reserved.