This document is a summary translation of the Japanese language original version. In the eventof any discrepancy, errors and/or omissions, the Japanese language version shall prevail.

Securities code: 2579
March 4, 2022

NOTICE OF THE
ORDINARY GENERAL MEETINGOF SHAREHOLDERS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021

-1-

Dear Shareholders,Thank you for your ongoing support and interest in our company. We extend our deepest
sympathies to all affected by COVID-19. We also thank those working tirelessly to prevent thefurther spread of infection.
Last year we celebrated two milestones. First was the birth of Coca-Cola 135 years ago in
Atlanta, Georgia.

2021 was also the 65th anniversary since the Coca-Cola business started fullswing in Japan. At Coca-Cola Bottlers Japan Holdings Inc., we are making unwavering efforts totransform our business to recover from the pandemic’s impact and return to a growth trajectory.
We carry the DNA of the 12 predecessor bottling companies that overcame a number ofdifficulties by sticking to their beliefs and passions. We bring forward this determination andcontinue to push forward with our transformation to surpass the challenges.
Amid the prolonged uncertainty of the current environment, our business performance remains
severe. However, we are taking swift action by investing in initiatives that mitigate short-term
impact. We are also seizing opportunities to develop growth and efficiency as we work to respondto mid- to long-term changes in our business environment. Our key initiatives include evolving
the vending operation model and optimizing logistics. We are working to streamline our supply
chain system as well as raise efficiency through company-wide digital transformation. All this,plus promotion of new working styles exemplifies the steady progress of our ongoing efforts. I
am confident that these actions are building a solid foundation, one we can leverage to recoverand grow our business when market conditions normalize.
Furthermore, we are making steady progress towards our Environment, Society, andGovernance (ESG) goals for sustainable growth. As part of our "World Without Waste” initiative,
we continue to increase the use of sustainable materials for PET bottles and already achieved a
40% adoption rate ahead of the industry. As the Coca-Cola System in Japan, we have alsoannounced targets to reduce greenhouse gas emissions across the entire value chain in Japan by
2030. For our ESG efforts like these, the past four years have seen us named to DJSI Asia Pacific,
a leading ESG investment index. We also received an A- score in a survey on water security
conducted by CDP, an international non-profit environmental organization.
We continue to provide a safe and secure supply of products while meeting the diversifying
needs of our customers. We leverage the perspectives and ideas of our employees to further ourbusiness. Working as one team, we deliver happy moments to everyone while creating value. We
will continue to move forward toward achieving sustainable growth.
Your continued support and guidance is greatly appreciated. We sincerely hope that COVID19 infections subside as soon as possible, and we wish you the best of health.
Calin Dragan
Representative Director & President-2-This document is a summary translation of the Japanese language original version. In the eventof any discrepancy, errors and/or omissions, the Japanese language version shall prevail.

Securities code: 2579
March 4, 2022
NOTICE OF THE ORDINARY GENERAL MEETING OF SHAREHOLDERS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021
Dear Shareholder,
You are hereby notified of the Ordinary General Meeting of Shareholders for the fiscal year ended
December 31, 2021 of Coca-Cola Bottlers Japan Holdings Inc. (the “Company”), which will beheld as described hereunder.
In light of the ongoing concerns over the spread of the novel coronavirus disease (COVID-19),
we ask you to refrain from attending the meeting, and to exercise your voting rights either by
writing or via the Internet. Furthermore, to exercise your voting rights in advance either by writingor via the Internet, please review the attached Reference Materials for General Meeting of
Shareholders and exercise your voting rights by 5:45 p.m., March 23 (Wednesday), 2022.
Sincerely yours,
Calin Dragan
Representative Director & President
9-7-1 Akasaka, Minato-ku, Tokyo

Matters Related to the Exercise of Voting Rights in Writing or via the Internet
Exercise of voting rights by mail (writing)
Please review the attached Reference Materials for
General Meeting of Shareholders and indicate yourapproval or disapproval on the enclosed proxy voting
form, and post it without affixing a postage stamp.

Exercise of voting rights via the Internet
Please exercise your voting rights by the deadline.

Voting deadline

Voting deadline

Votes must arrive by 5:45 p.m., March 23(Wednesday), 2022

5:45 p.m., March 23 (Wednesday), 2022

If you exercise your voting rights twice, both by writing and via the Internet, the voting via theInternet shall prevail. In case of multiple voting via the Internet or both through personal computerand smartphone, etc., the last voting shall prevail.

-3-

MEETING AGENDA
1. Date and Time:
2. Venue:
3. Agenda:
Items to be reported:

10:00 a.m., March 24 (Thursday), 2022 (Reception starts at 9:00 a.m.)
Ho-Oh-No-Ma (2F), Tokyo Prince Hotel
3-3-1 Shibakoen, Minato-ku, Tokyo, Japan
1.

2.

Business report and consolidated financial statements for the fiscal
year ended December 31, 2021 (January 1 to December 31, 2021);
and audit reports of consolidated financial statements by
Accounting Auditors and the Audit and Supervisory Committee
Non-consolidated financial statements for the fiscal year ended
December 31, 2021 (January 1 to December 31, 2021)

Items to be proposed:
Proposal No. 1
Appropriation of surplus
Proposal No. 2
Partial amendments to Articles of Incorporation
Proposal No. 3
Election of five (5) Directors (excluding Directors serving on the Audit
and Supervisory Committee)

If we need to make any revision to the business report, consolidated financial statements, nonconsolidated financial statements or Reference Materials for General Meeting of Shareholders, wewill notify you through the Company’s website (https://www.ccbj-holdings.com/).
 In accordance with laws and regulations and the provisions of Article 16 of the Company’s Articles
of Incorporation, the following matters have been omitted from the attachments to the Notice of
the Ordinary General Meeting of Shareholders for the fiscal year ended December 31, 2021 dueto their posting on the Company’s website.
(1) “Main Businesses,” “Major Locations, etc.,” “Status of Employees,” and “Major financial institutions
providing loans to the Company” within “Current Status of the Coca-Cola Bottlers Japan HoldingsGroup” in the Business Report(2) “Accounting Auditor,” “The system to ensure business adequacy,” and “Basic Policies on the Controlof the Joint-stock Company” under “Current status of the Company” in the Business Report(3) “Consolidated Statements of Changes in Equity” and “Notes to Consolidated Financial Statements”
in Consolidated Financial Statements.
(4) “Non-consolidated Statement of Changes in Shareholders’ Equity” and “Notes to Non-consolidated
Financial Statements” in Non-consolidated Financial Statements.
Therefore, the attachments are part of the Consolidated Financial Statements and Non-consolidated
Financial Statements audited by the independent auditor when preparing the Independent Auditor’s Report.
Furthermore, they are part of the Business Report, Consolidated Financial Statements and Nonconsolidated Financial Statements audited by the Audit & Supervisory Committee in preparing the Audit
Report.

The Company’s Website

https://www.ccbj-holdings.com/-4-Reference Materials for General Meeting of Shareholders
Proposal No. 1: Appropriation of surplus
Although the business environment during the current fiscal year remained challenging, as it wasin the previous fiscal year, we place the highest priority on paying stable dividends and thus
propose the appropriation of surplus as described below.
Year-end dividends① Type of assets to be
distributed② Allotment of assets
to be distributed andthe total amount③

Effective date of thedividends of surplus

Cash
We propose to pay 25 yen per share of the Company’scommon stock.
In this case, the dividends will total 4,483,599,050 yen.
As a result, including interim dividends, annual dividends per
share will be 50 yen per share, 25 yen more than those of theprevious fiscal year.
We propose March 25, 2022 as the effective date of thedividends of surplus.

Reference

Dividend Policy
Regarding dividends, the Company sets its basic policy to carry out active redistribution of profits while placing thehighest priority on paying stable dividends, by comprehensively reviewing the Company’s business performance andlevel of retained earnings. The Company has set a payout ratio target of 30% or more of net profit for the year
attributable to owners of the parent and pays interim and year-end dividends of surplus.

-5-

Proposal No. 2: Partial amendments to Articles of Incorporation
We propose partial amendments to the Articles of Incorporation in order to prepare for the
introduction of a system for electronic provision of materials for general meetings of shareholders.
1. Reasons for proposal
The amended provisions stipulated in the proviso of Article 1 of the supplementary provisionsof the “Act Partially Amending the Companies Act” (Act No. 70 of 2019) will be enforced
on September 1, 2022. Accordingly, the Articles of Incorporation shall be partially amended
in order to prepare for the introduction of a system for electronic provision of materials forgeneral meetings of shareholders and to promote resource conservation, including the
reduction of paper usage, from the perspective of ESG and taking the global environment into
consideration.
2. Details of proposed amendments
Details of the proposed amendments are as follows.
Existing Articles of Incorporation
Articles 1 to 15 (Omitted)(Amended portions are underlined.)
Proposed Amendments
Articles 1 to 15 (Same as at present)(Disclosure of General Meeting of Shareholders
Materials on the Internet and Deemed Disclosure)
Article 16
For convocation of General Meeting of.
Shareholders, the Company may post on theInternet information that should be disclosed or
shown in materials for General Meeting of
Shareholders, business reports, financial
statements and consolidated financial statements(including financial audit report in relation to
consolidated financial statements and auditor
report,) which shall be deemed as offered to theshareholders.
(Newly established)(Deleted)(Measures for Electronic Provision, Etc.)
Article 16
The Company shall, when convening ageneral meeting of shareholders, provide
information contained in the reference materials
for the general meeting of shareholders, etc.
electronically.
2. Among the matters to be provided electronically,
the Company may choose not to include all or partof the matters stipulated in the Ordinance of the
Ministry of Justice in the paper copy to be sent toshareholders who have requested it by the record
date for voting rights.

Articles 17 to 34 (Omitted)

Articles 17 to 34 (Same as at present)-6-

Existing Articles of Incorporation
Supplementary Provisions (Omitted)(Newly established)(Amended portions are underlined.)
Proposed Amendments
Supplementary Provisions (Same as at present)
Supplementary Provisions 2(Transitional Measures Regarding the Effective Date of
the Measures for Electronic Provision, Etc.)
The deletion of Article 16 (Disclosure of General
Meetings of Shareholders Materials on the Internetand Deemed Disclosure) of the existing Articles ofIncorporation and the establishment of the
proposed Article 16 (Measures for Electronic
Provision, Etc.) shall come into effect on the dateof enforcement of the amended provisions
stipulated in the proviso of Article 1 of the
supplementary provisions of the Act Partially
Amending the Companies Act (Act No. 70 of2019) (hereinafter referred to as the “EffectiveDate”).
2. Notwithstanding the provisions of the preceding
paragraph, Article 16 of the existing Articles ofIncorporation shall remain in force with respect toa general meeting of shareholders to be held on adate within six months from the Effective Date.
3. These supplementary provisions shall be deleted
after the lapse of six months from the Effective
Date or the lapse of three months from the date of
the general meeting of shareholders set forth in thepreceding paragraph, whichever is later.

-7-

Proposal No. 3: Election of five (5) Directors (excluding Directors serving on the
Audit and Supervisory Committee)
All five (5) Directors (excluding Directors serving on the Audit and Supervisory Committee) willcomplete their terms at the end of this Ordinary General Meeting of Shareholders.
Therefore, we would like to request the election of five (5) Directors (excluding Directors servingon the Audit and Supervisory Committee).
The candidates for Directors (excluding Directors serving on the Audit and Supervisory
Committee) are as follows:
No.
1

Name
Calin Dragan

Current Position and Responsibility in the Company

Attributes

Position

Reelection

Representative Director

Responsibility
President
Vice President

2

Bjorn Ivar Ulgenes

Reelection

Representative Director

Chief Financial Officer(Head of Finance)

3

Hiroshi Yoshioka

4

Hiroko Wada

5

Hirokazu Yamura

Reelection, Outside,
Independent
Reelection, Outside,
Independent
Reelection, Outside
Independent

Outside Director–

Outside Director–

Outside Director–

Reference: Guidelines and Procedures for the Nomination of Candidates for Directors● In nominating Internal Director candidates for the Company, the Company’s Board of Directors
makes decisions by appropriately evaluating the degree of their contribution and future
potential, etc. based on the Company’s evaluation system from an independent and objective
perspective.
● In nominating Outside Director candidates, the Company’s Board of Directors nominates those
who are deemed likely to make a significant contribution to enhancing the Company’s corporate
value from an independent and objective perspective.
● In addition, in nominating candidates for Directors who will be Audit and Supervisory
Committee members, the Company makes sure that it nominates at least one (1) candidate who
has appropriate knowledge of finance and accounting.
● As for the current procedures for nominating Director candidates, the report of the Audit andSupervisory Committee that consists of only Outside Directors, half of whom are Independent
Outside Directors, is respected, and decisions are made by the Board of Directors, themajority of whom are constituted by Independent Outside Directors. Thus, the Company
believes that transparency and fairness are ensured.

-8-Candidate

No. 1

Calin Dragan

Reelection[Relationship of special interest in the
Company]

No. of Company Shares Owned

None

4,005
*As of December 31, 2021

Attendance at Board of Directors meetings

8/8*Attendance rate: 100%

(Date of birth:
October 24, 1966,
55 years old)

[Significant
Concurrent Positions]Representative
Director, President &Chief Executive
Officer, Coca-Cola
Bottlers Japan Inc.

Brief Personal Profile, Position and Responsibility in the Company, and Significant
Concurrent Positions
June
1993 Joined Coca-Cola Leventis
January
2000 Joined Coca-Cola Hellenic Bottling Company S.A.
January
2005 General Manager and Administrator in charge of Romania andMordovian Republic, Coca-Cola Hellenic Bottling Company S.A.
July
2011 Executive Corporate Officer, Coca-Cola West Co., Ltd.
March2012 Representative Director, Coca-Cola West Co., Ltd.
Vice President, Coca-Cola West Co., Ltd.
July
2013 Representative Director & President, Coca-Cola East Japan Co., Ltd.
May2017 Regional Director, The Coca-Cola Company Bottling Investments GroupRegional Director, Coca-Cola Far East Limited
January
2018 President, The Coca-Cola Company Bottling Investments GroupMarch
2019 Executive Officer, Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer, Coca-Cola Bottlers Japan Inc.
Representative Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
President, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Representative Director, Coca-Cola Bottlers Japan Inc. (incumbent)
President, Coca-Cola Bottlers Japan Inc.
January2022 President & Chief Executive Officer, Coca-Cola Bottlers Japan Inc.
(incumbent)[Reasons for nomination as candidate for Director]
The Company requests the election of Calin Dragan as a Director because of his considerable experience as theRepresentative Director & President of Coca-Cola Bottling companies within Japan and gained at The Coca-Cola
Company, his global business knowledge of Coca-Cola business operations, and how he has exercised leadership in
his present position as a Senior General Manager of Business of the Company and Group, to utilize his ability andexperience, etc. in the management of the Group.

-9-Candidate

No. 2

Bjorn Ivar Ulgenes

Reelection[Relationship of special interest in the
Company]

No. of Company Shares Owned

None

1,601
*As of December 31, 2021

Attendance at Board of Directors meetings

8/8*Attendance rate: 100%

(Date of birth:
April 5, 1968,
53 years old)

[Significant
Concurrent Positions]Representative
Director, Vice
President, Chief
Financial Officer andHead of Finance,
Coca-Cola Bottlers
Japan Inc.

Brief Personal Profile, Position and Responsibility in the Company, and Significant
Concurrent Positions
July
1997 Joined The Coca-Cola Company
August2005 Finance Director, North & West Africa Business Unit, The Coca-Cola
CompanyMay
2008 Finance Director & Executive Assistant to the Business Unit President,
North & West Africa Business Unit, The Coca-Cola Company
June2009 GM Innovation & EA, North & West Africa Business Unit,
The Coca-Cola Company
February 2010 Senior Vice President Finance, The Coca-Cola (Japan) Co., Ltd.
January
2013 Finance Director, Central, East & West Africa Group, The Coca-Cola
Company
April
2016 Deputy Finance Director, Europe, Middle East & Africa (EMEA) Group,
The Coca-Cola Company
October
2018 Senior Executive Officer, Head of Finance, Coca-Cola Bottlers Japan
Holdings Inc.
Senior Executive Officer, Head of Finance, Coca-Cola Bottlers Japan Inc.
November 2018 Representative Director & President, Coca-Cola Bottlers Japan Sales
Support Inc.
January
2019 Representative Director & President, Coca-Cola Bottlers Japan Business
Services Inc.
February 2019 Executive Officer, Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer, Coca-Cola Bottlers Japan Inc.
March
2019 Representative Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
Vice President, Chief Financial Officer (Head of Finance), Coca-Cola
Bottlers Japan Holdings Inc. (incumbent)
Representative Director, Coca-Cola Bottlers Japan Inc. (incumbent)
Vice President, Chief Financial Officer (Head of Finance), Coca-Cola
Bottlers Japan Inc.
December 2019 Representative Director & Chairman, Q’SAI CO., LTD.
January2022 Vice President & Chief Financial Officer and Head of Finance, CocaCola Bottlers Japan Inc. (incumbent)[Reasons for nomination as candidate for Director]
The Company requests the election of Bjorn Ivar Ulgenes as a Director because of his considerable experience as theRepresentative Director, Vice President, Chief Financial Officer (Head of Finance) of the Company and gained at
The Coca-Cola Company, his global business knowledge of Coca-Cola business operations, and because of how he
has exercised leadership in his present position as a Senior General Manager of Business of the Company andGroup, to utilize his ability and experience, etc. in the management of the Group.

- 10 -

Candidate

No. 3

Hiroshi Yoshioka

Reelection

OutsideIndependent[Relationship of special interest in the
Company]

No. of Company Shares Owned

None

2,006
*As of December 31, 2021

Attendance at Board of Directors meetings

8/8*Attendance rate: 100%

(Date of birth:
October 26, 1952,
69 years old)

[Significant
Concurrent Positions]
No significant
concurrent positions
to note.

Brief Personal Profile, Position and Responsibility in the Company, and Significant
Concurrent Positions
April
1975 Joined Japan Radio Co., Ltd.
January
1979 Joined Sony Corporation
October
2001 Representative Director and President, Sony Ericsson Mobile
Communications Corporation
April
2003 CVP, Sony Ericsson Mobile Communications Corporation AB
November 2005 Corporate Executive, SVP, Sony Corporation
April
2008 Corporate Executive, EVP, Sony Corporation
April
2009 Executive Deputy President Officer, Sony Corporation*Has resigned from the office as Executive Deputy President Officer ofSony Corporation as of December 31, 2012.
July
2013 Outside Director, Coca-Cola East Japan Co., Ltd.
April
2017 Outside Director, Coca-Cola Bottlers Japan Inc.
January
2018 Outside Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)[Reasons for nomination as candidate for Outside Director and overview of expected roles]
The Company requests the election of Hiroshi Yoshioka as a Director (Outside Director) in the expectation that hewill utilize, for the management of the Company, the considerable experience and global knowledge he has gained
thus far at the Coca-Cola bottling company within Japan and Sony Corporation.

- 11 -

Candidate

No. 4

Hiroko Wada

Reelection

OutsideIndependent[Relationship of special interest in the
Company]

No. of Company Shares Owned

None*As of December 31, 2021

Attendance at Board of Directors meetings

8/8*Attendance rate: 100%

(Date of birth:
May 4, 1952,
69 years old)
[Significant
Concurrent Positions]Representative, Office
WaDa
Outside Director,
Shimadzu
Corporation
Outside Director(Audit & Supervisory
Committee Member),Unicharm
Corporation

Brief Personal Profile, Position and Responsibility in the Company, and Significant
Concurrent Positions
April
1977 Joined Procter & Gamble Sunhome Co., Ltd.
January
1998 Vice President, In charge of Corporate New Ventures, Asia, The Procter& Gamble Company (U.S.)
March
2001 Representative Director & President, Dyson Ltd.
April
2004 Representative Director, President & COO, Toys”R”Us-Japan, Ltd.
November 2004 Representative, Office WaDa (incumbent)May
2009 Outside Director, Aderans Holdings Co., Ltd.
June
2016 Outside Director, Shimadzu Corporation (incumbent)
March2019 Outside Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Outside Director (Audit & Supervisory Committee Member), Unicharm
Corporation (incumbent)[Reasons for nomination as candidate for Outside Director and overview of expected roles]
The Company requests the election of Hiroko Wada as a Director (Outside Director) in the expectation that she will
utilize, for the management of the Company, the considerable experience 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”UsJapan Ltd.

- 12 -

Candidate

No. 5(Date of birth:
September 28, 1977,
44 years old)

Hirokazu Yamura

Reelection

OutsideIndependent[Relationship of special interest in the
Company]

No. of Company Shares Owned

Hirokazu Yamura is Representative Director& President of Michinoku Coca-Cola
Bottling Co., Ltd. The Company has business
relations in product trading, etc. with
Michinoku Coca-Cola Bottling Co., Ltd.
(Sales etc. : 0.5% of the Company’s net sales;
Purchases etc. : 0.2% of the net revenues ofMichinoku Coca-Cola Bottling Co., Ltd.)*As of December 31, 2021

Attendance at Board of Directors meetings

8/8*Attendance rate: 100%[Significant
Concurrent Positions]Representative
Director & President,
Michinoku
Coca-Cola BottlingCo., Ltd.

Brief Personal Profile, Position and Responsibility in the Company, and Significant
Concurrent Positions
October
2006 Joined Michinoku Coca-Cola Bottling Co., Ltd.
February 2009 Director, Michinoku Coca-Cola Bottling Co., Ltd.
March2012 Managing Director, Michinoku Coca-Cola Bottling Co., Ltd.
March2013 Senior Managing Director, Michinoku Coca-Cola Bottling Co., Ltd.
March2014 Representative Director & President, Michinoku Coca-Cola Bottling Co.,
Ltd. (incumbent)
March2020 Outside Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)[Reasons for nomination as candidate for Outside Director and overview of expected roles]
The Company requests the election of Hirokazu Yamura as a Director (Outside Director) in expectation that he will
utilize, for the management of the Company, the considerable experience and knowledge he has gained inmanagement and as Representative Director & President at Michinoku Coca-Cola Bottling Co., Ltd.

- 13 -

Notes:1. Company names listed in the personal profile reflect business names at time of employment.
2. The Company has entered into officers’ liability insurance agreements with Calin Dragan, Bjorn Ivar Ulgenes,
Hiroshi Yoshioka, Hiroko Wada and Hirokazu Yamura as insureds, whose insurance premiums are fully borne by
the Company, and if their re-elections are approved, said agreements shall be renewed. The agreement will outline
that, in the event of a claim for damages by a shareholder, the Company, an employee or another third party during
the insurance period arising from an act done by the insureds in relation to their work as the Company’s officers,
such compensation for damages and legal expenses, etc. shall be compensated.
3. The Company has entered into agreements for limitation of liability with Hiroshi Yoshioka, Hiroko Wada andHirokazu Yamura, and if their re-elections are approved, said agreements shall remain in effect. The agreement will
outline that in cases where the Directors (excluding Executive Directors, etc.) have caused damages to the Company
due to non-performance of their duties and yet they are bona fide and there is no gross negligence from them in
performing their duties, they shall be liable for the damages to the limit of minimum liability set forth in Article 425,
Paragraph 1 of the Companies Act.
4. Hiroshi Yoshioka, Hiroko Wada and Hirokazu Yamura are candidates for Outside Director.
(1) Hiroshi Yoshioka, Hiroko Wada and Hirokazu Yamura are incumbent Outside Directors of the Company. At theconclusion of this General Meeting of Shareholders, Hiroshi Yoshioka has assumed the office as Outside Director
for five (5) years, Hiroko Wada has assumed the office as Outside Director for three (3) years, and Hirokazu
Yamura has assumed the office as Outside Director for two (2) years.
(2) The Company has submitted a notice to Tokyo Stock Exchange, Inc., on which the Company is listed, that Hiroshi
Yoshioka, Hiroko Wada and Hirokazu Yamura are “Independent Directors” in accordance with the rules, etc. ofthe said securities exchange. If their re-elections are approved, they are scheduled to be Independent Directors
continuously.

- 14 -

＜Reference＞ Skill Matrix‐ The attributes, expertise and experience of the members constituting the Company’s Board of Directors are as stated below.
‐ The Company believes that its Board of Directors has necessary skills as a whole.
‐ The Skill Matrix does not represent all the skills possessed by each director.

Executive
Directors

Independent
Outside Directors

OutsideDirectors

OutsideDirectors in the
Audit andSupervisory
Committee

FemaleDirectors

Attributes ofmembers
constituting theBoard of Directors

Name
Calin Dragan
Bjorn Ivar Ulgenes

Hiroshi Yoshioka
Hiroko Wada
Hirokazu Yamura
Irial Finan

Celso Guiotoko

Nami Hamada

Vamsi Mohan Thati

Current Status andResponsibility, etc. in
the Company
Representative Director& President
Representative Director,
Vice President, Chief
Financial Officer (Headof Finance)
Outside Director(Independent Officer)
Outside Director(Independent Officer)
Outside Director(Independent Officer)
Outside Director(Audit and Supervisory
Committee member)
Outside Director(Audit and Supervisory
Committee member)(Independent Officer)
Outside Director(Audit and Supervisory
Committee member)(Independent Officer)
Outside Director (Audit
and Supervisory
Committee member)

Age

Nationalities
60’s
44%

40’s
11%

50’s
44%

Expertise
Food and Beverage
Industry

Corporate
Management

Global Business

○

○

○

○

○

Finance / Audit

Sustainability /
CSV

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○

○
○

Reference: Criteria for Directors’ Skills‐ The Company shall make decisions on the expertise and experiences of Directors based on the following criteria.
Category
Applicable Criteria for Expertise to be Indicated by ○ in the Above Chart
Corporate Management‐ A person who has experience as a Representative (CEO, etc.) or a Chief Operating Officer (COO, etc.).
Global Business‐ A person who has knowledge in global business as a person holding a managerial position equivalent to or higher than
Department Manager or a person who has similar knowledge thereto.
Food and Beverage Industry ‐ A person who has experience holding a position equivalent to or higher than Department Manager at a company handlingfood and beverage or a person who has knowledge similar thereto.
Finance / Audit‐ A person who has experience holding a position equivalent to or higher than Department Manager in a Finance andAccounting Department, or a person who has knowledge similar thereto.
‐ A person who has a national qualification for finance or accounting, etc., such as a certified public accountant.
Sustainability / CSV‐ A person who has experience holding a position equivalent to or higher than Department Manager of Sustainability or CSV
Department, or a person who has knowledge similar thereto.

END- 15 -

（Attachment）

Business Report(From January 1 to December 31, 2021)
1. Current Status of the Coca-Cola Bottlers Japan Group(1) Business Progress and Results
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH” or the “Company”, or “we”)
announced full-year results for the fiscal year ending on December 31, 2021 (January 1,
2021 to December 31, 2021).
As the effect of the coronavirus (COVID-19) continues and the business environment
remains to be challenging, the continued supply of our goods and services are essential
for our customers and consumers, and the safety and health of our employees andcommunities are our top priorities. In accordance with our mission to provide happy
moments for all, we have been operating our business to ensure safe and secure productsupply while taking comprehensive measures.
In this fiscal year (January 1, 2021 to December 31, 2021), despite last year's COVID19 impact, rebound from the initial impact, and the lifting of the state of emergency, themultiple state of emergency declarations have limited people traffic with heavy rain fallin August. As a result, the total domestic nonalcoholic ready-to-drink (NARTD)
beverage industry volume growth performance was limited to about 1% versus theprevious fiscal year.
Under these circumstances, we have been working on measures to minimize theimpact to sales by introducing new products by responding to changing consumer andchannel trends. Under the guiding principle that “business as usual is not an option”,
announced as part of our mid-term strategic business plan in August 2019, we continue
to drive fundamental business transformation initiatives. We have been pushing forward
our transformation efforts in the further evolution of the vending channel operation
model, the relocation of product inventories, the consolidation of distribution bases
centered around the Saitama Mega DC to optimize the distribution network in the Kantoarea, the streamlining of the supply chain system to realize low-cost operations,improving operational efficiency through company-wide digital transformation (DX),and the promotion of new work styles. While the business environment continues to bechallenging, we are focused on identifying the issues and implementing short-term
mitigation plans, as well as seeking new opportunities for growth and efficiency as wework to respond to changes in the business environment over the medium and long term.

- 16 -

We continue our activities to realize our ESG goals based on creation of shared value
with society. As part of our efforts to achieve the 2030 Packaging Vision, we continue toincrease the use of sustainable materials PET bottles. As part of strengthening our efforts,
the Coca-Cola system in Japan has formulated targets to reduce greenhouse gas (GHG)
emissions across the entire value chain in Japan by 2030. This has led to our selection asa constituent of the DJSI Asia Pacific, a leading ESG investment index for four
consecutive years, and an A- score in a survey on water security conducted by CDP, aninternational environmental non-profit organization.
Details for the full-year are as follows.
<Highlights>
・In the fourth quarter (Oct. 1 - Dec. 31), although there were signs of growth in sales
volume with the lifting of the state of emergency declaration, the business wasaffected by concerns about the resurgence of the infection caused by the Omicronstrain into the year-end. For the full-year, COVID-19 impact continued. Recoveryof consumer traffic impacted by repeated emergency declarations and recordbreaking rainfall in August.
・Full-year sales volume increased by +2% YoY. Multiple new products contributed
to volume growth, but the challenging business environment continued. Full-year
revenue declined by -1% YoY with the changing consumer spending patterns
impacting channel and package mix and lower revenue per case. Value sharecontinued to grow for vending, and on a recovery trend for supermarkets, drugstoresand discounters.
・Business income exceeded the earnings guidance by 1.2 billion yen, supported by
the slightly higher than expected volume and the effect of additional cost saving
measures. Compared to the previous fiscal year, a decreased of 14.8 billion yen.
Impacted by challenging business environment, cycling of significant temporary
cost reduction achieved in the previous fiscal year, and rising raw material prices.
・In a challenging operating environment, with the focus on what we can control,transformation initiatives are progressing as planned, achieving approximately 9B
yen of recurring cost savings for the full-year.
・Due to the increased uncertainty in the market returning with the resurgence of
infection cases caused by the Omicron strain, we have not provided the earnings
forecast for 2022 at this time.

- 17 -

<Reference>
Business Income (loss)” is a measure of our underlying or recurring businessperformance. Business Income (loss) deducts cost of goods and selling, general andadministrative expenses from revenue, and includes other income and expenses which
we believe are recurring in nature. The corresponding figures for consolidated operating
income (loss) are as follows.
FY2020
Revenue(Millions of yen)

Sales volume of beverage business(Million case)

Gross profit

FY2021

791,956

785,837458

468(Millions of yen)

362,916

350,505

Selling, General & Administrative Expenses(Millions of yen)359,645

363,750

Other income (recurring)(Millions of yen)

772

887

Other expenses (recurring)(Millions of yen)

3,628

2,142

Investment loss on equity method(Millions of yen)

(245)

(162)

(Millions of yen)169

(14,662)

Other income (non-recurring)(Millions of yen)

7,714

9,251

Other expenses (non-recurring)(Millions of yen)

19,606

15,560(Millions of yen)

(11,722)(20,971)

Business income (loss)

Operating income(loss)

Consolidated net revenue was 785,837 million yen (0.8% decrease of 6,119 million yen
from the same period prior year). New products and initiatives responding to trendchanges in channels contributed to the volume growth, but the prolonged period of stateof emergency delayed the recovery of traffic, and the record rain in August lead to a
volume growth of only 2% versus the previous year. In addition, the businessenvironment has seen an increase of at-home consumption demand with people
refraining from going out or working from home resulting in consumer behavior changes
impacting channel and mix, and continued severe competitive environment leading todecrease in revenue per case, impacting revenue. Although the state of emergency
declaration was lifted in October, there were hopes for a recovery in people traffic thatwould lead to an improvement in the consumption environment. However, the businessenvironment remained uncertain and challenging as the Omicron strain toward the endof the year raised concerns about the resurgence of infections.
Consolidated business loss was 14,662 million yen (decrease of 14,831 million yen
from the same period of prior year). To minimize the impact of the decrease in revenue
on profits, cost saving efforts were made in all areas, including recurring cost reductions- 18 -

through transformation. Factors including adverse channel and package mix, decline inrevenue per case, rise in commodity prices and logistics costs, and our decision to invest
at appropriate levels in marketing and human resources that would contribute to our
future growth had an impact. However, with the volume slightly ahead of expansion,and additional cost saving measures being implemented, we exceed the full-year forecast
announced in November 2021 by 1.2 billion yen.
Consolidated operating loss was 20,971 million yen (decrease of 9,248 million yen
from the same period of prior year). In addition to the decrease in Business Income fromthe prior year, there was an increase in cost due to the accounting timing of the temporary
leave expenses and the timing of when the government subsidies for employment
adjustment were received. Other income (non-recurring) of this fiscal year includes
6,447 million yen in government subsidies for employment adjustment to offset
temporary leave expenses. Other expenses (non-recurring) include 9,001 million yen in
temporary leave expenses and 1,600 million yen in business transformation-related
expenses related to the implementation of transformation based on the medium-term
plan, 2,437 million yen in special retirement allowances due to the voluntary employee
retirement program and expenses incurred to recover the system failures that occurredin the core system used by the Group of 1,322 million yen.
Net income attributable to owners of parent for the year a total of continuing operations
and discontinued operation was a loss of 2,503 million yen (2,212 million increase fromthe same period prior year) as a gain of 12,841 million yen was recorded in discontinued
operations as gains from stock sales due to the transfer of shares in Q’sai.
Beverage volume performance
Full-year 2021 sales volume is hereinafter represented as the percentage change fromthe same period of the previous year.

Although there were contributions from theintroduction of new products and responses to changing trends in all channels, theincrease was 2% compared to the same period of the previous year due to the delay inthe recovery of people traffic driven by repeated emergency declarations and impacted
by heavy rains in August, a peak summer month.
In terms of channel performance, although vending saw a recovery when the state of
emergency was lifted, the increase was limited to 1% due to delayed recovery of people
traffic and unfavorable weather in August. Although the market environment continues
to be challenging, the value share of vending continued to grow for 33 consecutive
months, mainly due to new products in non-sugar teas and water, contributions from new
package in sport, and campaigns through the Coca-Cola official smartphone app Coke

- 19 -

ON, which has reached 33 million downloads. In addition, we are working to strengthen
the installation of vending machines in prime locations while assessing the market
environment and cost-effectiveness, resulting in a net increase in the number of vending
machines compared to the end of the previous fiscal year. Supermarkets, drugstores anddiscounters increased 5% and 8% respectively for the full-year. This is partially due tocapturing demand for at home consumption and bulk purchases, as well as responding
to changes in customers' purchasing patterns, and promotional activities at the point ofsales. Value share that has been an issue is now on a recovery trajectory. In the CVS
channel, despite contributions from new products in non-sugar teas and strategicallyrolled out 950ml PET, volume recovery has been delayed due to increased competition
in promotions, resulting in a 2% decrease for the full-year. In retail food, sales forcommercial use continued to decline due to factors such as shortened restaurant opening
hours and decreased by 10%. For periods following the state of emergency being lifted,
there were periods of temporary recovery. Online sales continued to grow strongly in all
categories and increased by 62% for the full-year supported by the successful rollout oflabel-less products well received by consumers' changing purchasing behavior andenvironmental awareness during COVID-19.
In terms of beverage category performance, sparkling was flat for the full-year despite
contributions from the premium-priced Fanta Premier series and other products as wellas growth in supermarkets and other channels, it was not able to off-set the adverse
weather in summer and drop in 500ml PET. New products such as Yakan Barley Tea
from Hajime and Ayataka Cafe Matcha Latte respectively contributed to 10% increasein non-sugar tea sales for Q4 and increased 7% for the full-year. Coffee sales decreased
3% for the full-year due to a decline in sales of canned coffee in CVS and vending,despite growth in PET bottle coffee through the introduction of new products such as
Costa Coffee and Georgia Shot & Break. In sports, despite the lifting of some restrictions
on events, contribution of channel specific packaging products, and the improved
sentiment with the Olympic Games, the category growth was 3% for the full year, as the
Olympics Games were held without any spectators and the record-breaking heavy rains
during the summer. Water volume increased 23% for the full year, growing in every
channel, by capturing the growth of large PET with the increased demand of at-homeconsumption, as well as contributions from new ICY SPARK and Ilohas small PET.
The ready-to-drink alcohol category, despite the contribution from promotions ofLemon-dou and new products such as Nomel’s Hard lemonade, it was not able to offset
the cycling effect of the new products launched in the same period of the prior year and- 20 -

decreased by 2%. We are working to capture the growing non-alcohol category andcreated a new brand and will launch “Yowanai Lemon-dou” on February 21st, 2022.
(2) Status of Capital Investment
Total capital investment undertaken during this consolidated fiscal year amounted to 40.2
billion yen, which was mainly undertaken for the following elements, all of which wererelated to the beverage business:a. Acquisition of vending machines, coolers and other sales equipmentb. Acquisition of equipment to improve manufacturing efficiency, new products
correspond and logistics types of equipment items- 21 -

(3) Financial Activities
Not applicable.
(4)

Trend of Assets and Earnings
Item

FY2018FY2019FY2020

FY2021

IFRS

IFRS

IFRS

IFRS

Revenue(MM yen)927,307890,009791,956

785,837

Business income (loss)(MM yen)23,276

11,447

169(14,662)

Operating income(loss)(MM yen)

14,682

ሺ58,904)

ሺ11,722)(20,971)(MM yen)

10,117(57,952)

ሺ4,715)(2,503)

(yen)

52.68

(322.22)

ሺ26.29)(13.96)(MM yen)877,472

952,444939,603

867,111(MM yen)580,448505,999

501,643492,320

3,163.63

2,821.27

2,797.03

2,745.12

Net income attributable toowners of the parent (loss)
Earnings(loss) per share
Total assets
Equity attributable toparent owners

Equity attributable to parent
owners per share(yen)

Notes:
1.

Earnings(loss) per share is calculated based on the average number of shares issued during the year while equity
attributable to parent owners per share is calculated based on the total number of shares issued as of the end of the
fiscal year (excluding treasury shares).

2.

In the year ended December 31, 2020, the healthcare and skincare business has been classified as a discontinued
operation as a result of the decision in December 2020 to sell all shares in Q’sai held by the Company. As a result,revenue, business income (loss) and operating income (loss) for the previous financial year have been reclassified
to the amounts for continuing operations excluding discontinued operations.

(5) Acquisition or Disposal of Shares, Other Equity, or Stock Acquisition Rights, etc. of
Other Companies
Q'SAI has been excluded from our consolidated subsidiaries in conjunction with thetransfer of all - of its shares on February 1, 2021.
(6) Issues to be address
Regarding the outlook for the overall Japan NARTD beverage market, although it isexpected that a certain amount of consumer traffic will recover from 2021 that wasunder state of emergency for an extended period of time, the infection cases are
increasing by the spread of Omicron variant. Due to such concerns, it is expected thatthe uncertain situation will continue. In addition to the continued impact of changes in- 22 -

consumer purchasing behavior, such as the shift from immediate consumption to athome consumption and the shift in purchasing channels, and the continued intensecompetitive environment due to a delayed recovery of the overall demand. The difficult
environment is expected to continue from the perspective of profitability, as global raw
materials and oil prices are expected to rise.
Under these circumstances, we will continue to take actions to mitigate the shortterm impact of the COVID-19 and position 2022 as a “year of building a foundation forsustainable growth”, we will strive to build a solid base that leads to steady sustainablegrowth and to promote further transformation. As important measures, we will work to1) focus on core categories and high-quality innovations, 2) continue ROI focused,customer-oriented marketing investment and execute appropriate pricing strategies tostrengthen the earnings base, and 3) strengthen collaboration between commercial andthe supply chain for low-cost logistics, 4) continue transformation to establish abusiness model that can achieve sustainable growth, and 5) increase the rate ofsustainable materials used in PET bottles.
In the commercial area, despite the difficult environment, we will strive to achieved
steady sales recovery and establish a profit structure to deliver sustainable growth forthe future by strengthening measures focusing on core categories, launching new
products based on innovations that utilize new technologies and new knowledge toexpand the product portfolio, entering into white space (new area), and executing
strategic marketing investments with ROI consideration. Regarding our importantvending channel, while considering the current and medium-term business environment,
we are working to increase the number of vending machine placements focusing on
profitability and ROI. We will work to increase sales from vending machines that
contribute significantly to profits through a digital strategy such as the smartphone app"Coke ON". In addition, in the transformation of the operation model of the vending
channel implemented in 2021, we have achieved a significant reduction in fixed costs
by improving how we operate. In the future, we will strive for stable operation while
deepening collaboration with supply chain, and will continue to improve operations byfurther utilizing digital technology. In the over the counter channel, changes in
consumer purchasing pattern and intensified competition are expected to continue, andalthough there are signs of recovery in our value share, we still recognize it as an areaof improvement. Regarding this, we will work to solve our issue by development of
new products, expanding space to sell, ROI-conscious customer-oriented marketinginvestment, and appropriate pricing strategies based on the profitability. Furthermore,- 23 -

by expanding the area of collaboration with Coca-Cola Japan Co., Ltd., we will build asystem in which the Coca-Cola system in Japan that can leverage our strength.
In supply chain, as part of a "Shinsei project" aimed at building a supply chain
network that realizes high quality, low cost, and stable supply, we promote stable
operation of "Saitama Mega DC" which started operation in 2021 smooth launch of"Akashi Mega DC" scheduled to start operation ahead of schedule before the 2022 peakdemand season, and consolidation of sales centers and reduction and optimal
distribution of product inventory by synchronizing with these mega DCs. In terms of
manufacturing, we will strive to provide a stable supply of products, improve
manufacturing efficiency, and reduce costs by improving manufacturing capacity andbuilding flexible manufacturing systems. Furthermore, it is expected that demand willcontinue to fluctuate, but taking the learnings from FY 2021, we will strengthen thecollaboration between the commercial (planning / sales) and the supply chain to work
timely and low-cost supply of products adjusting to the changes in the environment. In
2022, procurement costs are expected to rise due to rising prices of raw materials andcrude oil, which is expected to have a significant impact on the entire business. In the
supply chain, we will strive to mitigate the impact of increased costs in the entire value
chain by implementing meticulous improvement activities centered on stable and lowcost operations.
As the foundation of the entire business, we aim to further accelerate thestandardization of business processes and the efficiency improvement by DX (digitaltransformation) and to establish a robust cost structure that can adapt to the changing
environment with agility. Additionally, we will continue to promote activities to achieve
ESG targets based on creating shared value with society, such as implementing people
development initiatives in accordance with our company “Mission, Vision and Values”,"2030 Packaging Vision" aiming for a world-without-waste, and greenhouse gas (GHG)
reduction target formulated and announced in 2021 as Coca-Cola system in Japan.
We will continue to execute the above initiatives, but there are many uncertainties
due to the rapid spread of the Omicron strain, the expected timing of the reduction in
infection rates and the impact on the market. Therefore, it is difficult to estimate andannounce our full-year forecast for 2022 at this time. We will disclose our guidance at
the appropriate time assuming a certain level of COVID-19 impact subsiding. In themeantime, we will focus on what we can control in these following areas:
・Value share growth in vending, balanced approach in OTC with sustainable pricing
・Transformation that delivers recurring cost savings- 24 -

・ Continue to control capex and monitor market environment for expanding
investments
・Stable shareholder return with Full-year dividend of 50 yen per share is planned
・Increase use the rate of PET bottles with sustainable materials(7)

Status of Significant Subsidiaries (As of December 31, 2021)
Names

Paid-in
Capital
Unit: MM yen

Percentage of
Voting Rights

Main Businesses

Unit: %

Coca-Cola Bottlers Japan Inc.

100

100.0

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

100
80

100.0
100.0

80

100.0

Manufacturing and sales of beverage andfood products
Sales of beverage and food products
Operation of vending machines
Office work related to sales of beverageand food products

Notes:
1.

The percentage of voting rights includes the portion of indirect holdings via subsidiaries

2.

The status of the Specified Wholly Owned Subsidiary of the Company is as follows as of December 31, 2021:
Name of Specified Wholly Owned Subsidiary
Address of Specified Wholly Owned SubsidiaryBook value of shares of Specified Wholly Owned
Subsidiary of the Company or Wholly Owned
Subsidiary thereof

Coca-Cola Bottlers Japan Inc.
9-7-1, Akasaka, Minato-ku, Tokyo

Total assets of the Company

543,410 million yen- 25 -

342,561 million yen

2. Current Status of the Company(1) Status of Shares (As of December 31, 2021)
a. Total number of authorized shares: 500,000 thousandb. Total number of issued shares (excluding 26,925 thousand treasury shares): 179,344
thousandc. Number of shareholders: 76,504
d. Major shareholders (top 10)
Number of shares

Names of shareholders

held(Unit: thousand)Ratio of shareholding(Unit: %)Coca-Cola (Japan) Co., Ltd.

27,956

15.59

The Master Trust Bank of Japan, Ltd. (Trust Account)

17,617

9.82

Ichimura Foundation for New Technology

5,295

2.95

Custody Bank of Japan, Ltd. (Trust Account)

4,925

2.75

Satsuma Shuzo Co., Ltd.

4,699

2.62

Senshusha Co., Ltd.

4,088

2.28

Coca-Cola Holdings West Japan Inc.

4,075

2.27

Mitsubishi Heavy Industries Machinery Systems, Ltd.

3,912

2.18

MCA Holdings Co., Ltd.

3,408

1.90

3,223

1.80

STATE STREET BANK AND TRUST COMPANY
505225

Note: The treasury shares (,26,925 thousand shares) are excluded from the list above and from the calculation ofratio of shareholding.

(2) Shares issued to corporate officers as compensation for the execution of their duties
during the fiscal year under review (As of December 31, 2021)
Not applicable.

- 26 -

3. Company’s Officers(1) Status of the Company’s Officers
a. Status of Directors (As of December 31, 2021)
Position
Representative
Director

Name
Calin Dragan

Areas of responsibility and important concurrent positions
President
Representative Director and President, Coca-Cola Bottlers Japan Inc.

Representative
Director

Bjorn Ivar Ulgenes

Vice President and Chief Financial Officer (Head of Finance)
Representative Director, Vice President, Chief Financial Officer andHead of Finance ,Coca-Cola Bottlers Japan Inc.

Director
Director

Hiroshi Yoshioka
Hiroko Wada

Director

Hirokazu Yamura

Director (Audit &Supervisory
Committee Member)
Director (Audit &Supervisory
Committee Member)
Director (Audit &Supervisory
Committee Member)
Director (Audit &Supervisory
Committee Member)

Irial Finan

Representative, Office WaDa
Outside Director, Shimadzu Corporation
Outside Director (Audit & Supervisory Committee Member), Unicharm
Corporation
Representative Director & President, MICHINOKU COCA-COLA
BOTTLING CO., LTD.
Director, Smurfit Kappa Group Plc
Director, Fortune Brands Home & Security, Inc.

Celso Guiotoko

Director and Global Chief Digital Officer, Nishimoto Co., Ltd.

Nami Hamada

Co-Founder, Managing Director, Mile High Capital Inc.
Outside director (Audit committee member), MetLife Insurance K.K.

Vamsi Mohan Thati

President, Greater China and Mongolia Operating Unit, The Coca-Cola
Company

Notes:
1.

Transfers of Directors during the fiscal year under review as follows:(1) Enrique Rapetti have retired from the post of Director (Audit & Supervisory Committee Member) effectivefrom the conclusion of the fiscal year 2020 Ordinary General Meeting of Shareholders held on March 25,
2021.
(2) Vamsi Mohan Thati has resigned from the post of Director (Audit & Supervisory Committee Member)effective from the conclusion of the fiscal year 2020 Ordinary General Meeting of Shareholders held on
March 25, 2021.

2.

Directors Hiroshi Yoshioka, Hiroko Wada, and Hirokazu Yamura and Directors (Audit & Supervisory Committee
Members) Irial Finan, Celso Guiotoko Nami Hamada, and Enrique Rapetti are Outside Directors.

3.

Directors Hiroshi Yoshioka, Hiroko Wada, and Hirokazu Yamura and Directors (Audit & Supervisory Committee
Members) Celso Guiotoko and Nami Hamada have been notified to the Tokyo Stock Exchange on which theCompany is listed, as “Independent Officers” as defined in the rules of the Tokyo Stock Exchange.

4.

Director (Audit & Supervisory Committee Member) Nami Hamada has accumulated a wealth of experience infinance and accounting by running her own financial consulting company, and is therefore highly knowledgeable
about finance and accounting. In addition, Mr. Enrique Rapetti, Director (Audit & Supervisory Board Member),has extensive experience in finance and accounting, including as CFO of THE COCA-COLA COMPANY (LATIN
AMERICA GROUP), and therefore has considerable knowledge of finance and accounting.

- 27 -

5.

Thanks to the organizational audits carried out through an internal control system under the lead of the Audit &Supervisory Committee, the Company does not need to appoint full-timers, and has therefore not appointed any
full-time members to the Audit & Supervisory Committee.

6.

Effective January 1, 2022, the Company has changed the responsibilities of Directors at important concurrent
positions as follows.
Position

Name

Areas of responsibility and important concurrent positions

Representative
DirectorCalin Dragan

Representative
Director

Bjorn Ivar Ulgenes

President
Representative Director, President and CEO, Coca-Cola Bottlers JapanInc.
Vice President and Chief Financial Officer (Head of Finance)
Representative Director, Vice President and CFO of Coca-Cola Bottlers
Japan Inc.

b. Outline of Limited Liability Agreements
In its Articles of Incorporation, the Company has established provisions concerning
limited liability agreements with Directors (excluding those who are not Executive Directors,etc.) in order to ensure that Directors (excluding those who are not Executive Directors, etc.)
can demonstrate the roles expected of them and the Company can invite and select competentpersons as Directors (including, not limited to, Outside Directors).
The Company has entered into limited liability agreements with Directors Hiroshi
Yoshioka, Hiroko Wada, Hirokazu Yamura, Irial Finan, Celso Guiotoko, Nami Hamada and
Enrique Rapetti to limit their liability for damages in the event that he/she fails to perform
his/her duties stipulated in Article 427, Paragraph 1 of the Companies Act. The limit ofliability in the Agreement shall be equal to the minimum liability limit stipulated by laws
and ordinances.

c. Outline of the Directors’ and officers’ Liability Insurance Policy
In order to ensure that directors (including those who are members of the Audit andSupervisory Committee) and the Group’s executive officers can demonstrate the roles
expected of them and the Company can select competent persons to serve as directors
and executive officers, the Company has entered into a directors' and officers' liability
insurance contract with an insurance company and the Company bears the entire premium.
The policy covers the nine members of the Board of Directors, namely Calin Dragan(Representative Director) Bjorn Ivar Ulgenes, Hiroshi Yoshioka, Hiroko Wada, Hirokazu
Yamura, Irial Finan, Celso Guiotoko, Nami Hamada and Enrique Rapetti and, as well as
the executive officers of the Group, as insured, in the event of claims for damages byshareholders, the Company, employees or other third parties arising from acts in thecourse of their duties as directors and officers of the Company during the term of thepolicy.

- 28 -

(2) Remuneration of Company’s officers
a. Compensation policy and process for determining the policy(a). Basic policy on compensation for Executive Directors and Executive Officers(i) Compensation level and structure that enable hiring and retaining high-quality talentsfrom the perspective of diverse nationalities and experiences.
(ii) Compensation composition ratio emphasizing performance-linked compensation,
resulting in providing sufficient incentives for profitable growth.
(iii) Introduce the system to further improve mid- to long-term corporate value, andreinforce alignment of interests with the shareholders.
(b). Supervisory Officers (Directors serving on the Audit and Supervisory Committee andOutside Directors not serving on the Audit and Supervisory Committee)
The compensation level and structure that is appropriate as roles in managerial
supervision and audit.
(c). Process for determining the policy
The policy for determining compensation for Officers, etc. shall be determined upondeliberation by the Audit and Supervisory Committee and approval by the Board of
Directors.
The current policy (policy for determining compensation for Directors, etc.) has been
resolved by the Board of Directors on March 25, 2021.

- 29 -

b. Details and procedures on compensation for Executive Directors and Executive
Officers(a). Compensation structure
Base salaryRetirement payments



Fixed compensationAnnual bonus







Variable compensation
Long-term incentivesMonthly payment of an amount determined basedon responsibilities.
10% of annual base salary is retained, and theaccumulated amount is calculated and paid upon
their retirement.
This payment may be reduced or withheld
altogether if the recipient has caused significant
damage to the CCBJH Group or been subject todisciplinary action. It may also be specially
increased where the recipient has given
particularly distinguished contribution. Any
reduction, withholding, or special increase will bedecided at the Board of Directors Meeting, basedon deliberation by the Audit and Supervisory
Committee.
Provided at a certain point in the year as anincentive for achieving performance targets foreach fiscal year.
The target amount is set in the range of 30% to 85%
of base salary, depending on their responsibilities.
The amount of payment varies in the range of 0%
to 150% of the target amount depending on theachievement of performance targets in each fiscal
year (companywide performance and individual
evaluations).
To provide motivation to achieve profitable
growth, business income, sales volume, and net
sales have been adopted as measures for evaluatingcompanywide performance, based on the
Company’s policy regarding the determination ofcompensation, etc. for Directors, etc.

Two types of stock-based compensation systems,(1) PSU and (2) RSU, are adopted as long-term
incentives.
The basic amount of all long-term incentives (1)PSU + (2) RSU is set in the range of 15% to 100%of base salary based on the responsibilities. 50% of
this basic amount is set as the basic PSU amount,and 50% is set as the basic RSU amount.
With regard to (2) RSU, additional grants for the
purpose of retention, etc. may be made in addition- 30 -The portion of thecompensation
shown on the left
providedtoDirectors will not
exceedthefollowing amount.
Compensation limit
for
Directors(excluding
Directors serving on
the
Audit
and
Supervisory
Committee):
850
million yen per year
(approvedbyresolution no. 5 of2019
AnnualGeneral Meeting of
Shareholders) (fivein number at the
time
of
the
resolution,
excluding Directors
serving on the Audit
andSupervisory
Committee)* In case where the
Audit
and
Supervisory
Committee
hasdeliberated
anddeemed it necessary,
payments
within
850 million yen may
be made for fringe
benefits such as
housing allowances,etc.
The portion of thecompensation
shown on the left
provided to
Directors will not
exceed thefollowing amount.
Compensation limit
for Directors

(1) PSU(Performance
Share Units)(2) RSU (Restricted Stock
Units)



to the above-mentioned basic RSU amount and incase for Directors, up to the compensation limit
detailed on the right if deemed necessary by the
Audit and Supervisory Committee.
Granted as an incentive for achieving medium tolong term performance targets.
The number of shares to be issued shall be
determined within the range of 0% to 150% of thebasic PSU amount depending on the achievementof performance targets (only considering
companywide performance) over the three years
after the share units have been granted (half of theshares to be issued shall be paid in cash for the
purpose of allocating funds for the payment of tax
obligations).
To provide motivation to enhance corporate value
over the mid to long term, consolidated ROE andconsolidated sales growth rate have been adopted
as measures for evaluating performance, based on
the Company’s policy regarding the determinationof compensation for Directors, etc.
Granted for the purpose of aligning interests withshareholders, creating incentives to increase corporate
value, and strengthening retention of talented people.
A predetermined number of shares are issued atretirement (half of the shares to be issued shall be paidin cash for the purpose of allocating funds for thepayment of tax obligations).

(excluding
Directors servingon the Audit andSupervisory
Committee):
Maximum amountof 600,000 shares
per year multipliedby the market value
at the time of issue(approved byresolution no. 4 of2020 Annual
General Meeting of
Shareholders) (fivein number at thetime of theresolution,
excluding Directors
serving on the
Audit andSupervisory
Committee)*Regarding fringe benefits, to support the execution of assignments outside the home country, housing
allowances, etc. are provided in accordance with the internal regulations approved at the Board of Directors
Meeting through deliberations by the Audit and Supervisory Committee(b) Process for determining compensation
Approval of compensation including the amount of performance-linked compensation for
Executive Directors shall be delegated to a Representative Director (Calin Dragan) upon resolution
by the Board of Directors, and the amount shall be determined by the Representative Director inaccordance with the “Policy for Determining Compensation for Directors, etc.” approved by the
Board of Directors within the total amount determined by the resolution of the General Meeting of
Shareholders after the terms of compensation are deliberated by the Audit and Supervisory
Committee composed solely of Outside Directors in order to enhance the transparency andobjectivity of procedures for determining compensation. The reason for the delegation is that theRepresentative Director is deemed appropriate to determine the performance results of each
Director while taking into account the overall performance of the Company. In order for the
Representative Director to exercise such authority appropriately, the decision on this has been made- 31 -

after deliberations by the Audit & Supervisory Committee. The compensation for Executive
Officers shall also be determined through deliberations by the Audit and Supervisory Committee.
Therefore, the Board of Directors deems that the content of these compensations is in line with theabove decision-making policy.

(i) Activities of the Board of Directors
The Board of Directors' activities concerning the determination of Officer compensation for
FY202 are as follows.
(1) Number of meetings of the Board of Directors held over one year from January 2021 to
December 2021: 8(2) Main subjects discussed by the Board of Directors concerning Officer compensation and
Officer compensation structure in FY2021:
・Payment of leadership award (for March 2021)
・Payment of special RSU to Directors
・Revision of Officer compensation structure
・Policy for determining compensation for Officers, etc.
・Report on the number of PSU and RSU units granted to Directors and Executive Officers
in 2021
・ Payment of bonuses for 2019 and long-term incentives for 2018 to Directors andExecutive Officers
・Handling of taxes imposed on LTI (LTI tax allowance)(ii) Activities of the Audit & Supervisory Committee
Activities of the Audit & Supervisory Committee concerning the determination of Officer
compensation for FY2021 are as follows.
①Number of meetings of the Audit and Supervisory Committee held over one year fromJanuary 2021 to December 2021: 8② Main subjects discussed by the Audit & Supervisory Committee concerning Officer
compensation and Officer compensation structure in FY2021:
・Report on individual performance evaluation of Directors and Executive Officers for 2020
・Payment of leadership award (For March 2021)- 32 -

・Payment of special RSU to Directors
・Revision of Officer compensation structure
・Policy for determining compensation for Directors, etc.
・Compensation for Directors serving on the Audit and Supervisory Committee for 2021
・Report on the number of PSU and RSU units granted to Directors and Executive Officers
for 2021
・Objectives setting of Officers for 2021
・Validity of stock prices when stock-based compensation is granted
・Handling of taxes imposed on LTI (LTI tax allowance)(c). Compensation level
Compensation is decided according to the responsibilities by utilizing data from compensation
surveys performed by external research organizations and taking into account the level ofcompensation provided at companies such as domestic and overseas companies of similar scale insimilar industries with the intent to provide a level of compensation that enables recruitment andretention of talented people who are highly diverse in terms of nationality, experience, etc.

Image of compensation structure (in case of Representative Director)- 33 -

c.

Guidelines and procedures for determining compensation for Supervisory Officers
The compensation for Supervisory Officers (Directors who are Audit & Supervisory Committee
Members and Outside Directors who are not Audit & Supervisory Committee Members) is
composed of basic compensation only in view of their role as supervisors and auditors of CCBJI
business. Compensation levels are set according to the role of the Director by utilizing data fromcompensation surveys performed by external research organizations and taking into account thelevel of compensation provided at domestic companies of similar scale.
The individual compensation for Directors serving on the Audit and Supervisory Committee is
proposed to the Audit and Supervisory Committee and determined upon consultation with
Directors serving on the Audit and Supervisory Committee within the total amount determined by
the resolution of the General Meeting of Shareholders. The compensation for Outside Directors
not serving on the Audit and Supervisory Committee shall be delegated to a Representative
Director (Calin Dragan) upon resolution by the Board of Directors, and the amount shall be
determined by the Representative Director in accordance with the “Policy for Determining
Compensation for Directors, etc.” approved by the Board of Directors after the terms ofcompensation are deliberated by the Audit and Supervisory Committee. The reason for delegatingthese authorities to the President and Representative Director is that the President andRepresentative Director is considered to be the most appropriate person to evaluate theresponsibilities of each Director. To ensure that such authority is appropriately exercised by the
President and Representative Director, decisions on the details of compensation for outside
directors who are not members of the Audit and Supervisory Committee are made after
deliberation by the Audit and Supervisory Committee. Therefore, the Board of Directors deems
that the content of these remunerations is in line with the above decision-making policy.

- 34 -

d. Details of compensation for Officers for FY2021(a). Total amount of compensation, etc. by position, total amount of compensation, etc. by
category and headcount of Officers
Positions

Directors (excluding
Directors serving on the
Audit and Supervisory
Committee)(of which Outside
Directors)
Directors (serving on
the Audit andSupervisory
Committee)(of which Outside
Directors)
Total(of which Outside
Directors)

Total
remuneration

Types of remuneration

Number of
persons
remunerated

Compensation
upon
retirement

Basic
remuneration

Remarks

BonusesLong-term
incentives

120 million yen(–)

234 million yen(–)

74 million yen (Note)1,2,3,(–) 4,5,6– (Note)1,2,3,(–) 4

866 million yen(43 million yen)

5
(3)

418 million yen 21 million yen(43 million yen)(–)

72 million yen(72 million yen)

5
(5)

72 million yen(72 million yen)

－
(–)

–
(–)

–
(–)

937 million yen(115 million yen)

10
(8)489 million yen 21 million yen(115 million yen)(–)

120 million yen(–)

234 million yen
(–)

Other

74 million yen(–)

Notes:
1.

In accordance with the resolution passed at the 62nd Annual General Meeting of Shareholders held on March 26,
2020, the upper limit of compensation for Directors (five in number at the time of the resolution, excluding
Directors serving on the Audit and Supervisory Committee) shall be 850 million yen per year (of which 50 million
yen per year for Outside Directors (two in number at the time of the resolution); in accordance with the resolution
passed at the 58th Annual General Meeting of Shareholders held on March 23, 2016, the upper limit ofcompensation for Directors serving on the Audit and Supervisory Committee (five at the time of the resolution)
shall be 100 million yen per year.

2.

Above table includes compensation, etc. paid to one Director (serving on the Audit and Supervisory Committee,of which one Outside Director), who was resigned at the conclusion of the 63rd Annual General Meeting of
Shareholders held on March 25, 2021.

3.

Separately, in accordance with the resolution taken at the 63rd Annual General Meeting of Shareholders held on
March 25, 2021, for Directors (excluding Directors serving on the Audit and Supervisory Committee), the upper
limit of stock-based compensation consisting of monetary compensation receivables and cash (PSU, RSU) to
Executive Directors shall be annual amount not exceeding in total the value of 600,000 shares multiplied by themarket value of the monetary compensation receivables and cash at the time of issue”

4.

Basic compensation includes an amount equivalent to fringe benefits (housing allowances, etc.), etc.

5.

Long-term incentives include PSU, RSU and Special RSU.

6.

Other is special award (refer to (d). Others)- 35 -

(b). Significant employee salary received by the officer concurrently serving as an employee
Not applicable(c). Payment rate, etc. of incentive compensation(i) In alignment with the mid-term management plan and the goal of achieving it, business income,sales volume and net sales are set as proper performance metrics of Annual Bonus to measure company
performance of the Company in the previous years. Performance is calculated based on predeterminedtargets and actual achievement, weighted average achievement for FY2021. However, we were unable
to set targets for each index for the current fiscal year, amid the unstable business environment causedby the effects of the COVID-19 pandemic. The individual performance evaluation-based payout rate
for Executive Directors was 70%. Based on the company performance and individual performance
evaluation, the Audit and Supervisory Committee discussed and reviewed the final payout rate (rateof actual annual incentive paid against target payout) for FY2021. As a result, it determined that 70%
is reasonable.

(ii) PSUs granted in 2019 are subject to a 3-year performance period from 2019-2021 and are assessedusing the corporate performance metrics of consolidated ROE and consolidated sales growth rate.
Performance was assessed against predetermined targets and actual achievement for 2018-2020,
weighted average achievement for 3-year period was -379%.

The payout rate of PSU granted against target value fluctuates between 0 - 150% depending on
achievement levels of performance targets. Based on the above-mentioned result, the payout rate of
the PSU (rate of PSU’s granted against target) is 0%.

For the 2020 PSU, the payment rate is expected to be 0% as the challenging business environment is
expected to continue in 2022, the final year of the evaluation period. The payout rate of PSU granted
in 2021 is calculated based on ROE for the final fiscal year of the relevant performance period andthe annual average sales growth rate for the relevant performance period. Therefore, it is not possible
to estimate the payout rate reasonably at this time.

- 36 -

(d). Others(i) The company, with the aim to reward performance that drives business transformation and to ensure
retention, paid a cash-based leadership award in March 2021 with the total amount of 81 million yen
according to the amount of contribution.
The Audit and Supervisory Committee discussed and reviewed the appropriateness of the payment ofleadership award and has deemed to be reasonable. The amount of compensation for this leadershipaward is included in the total amount of compensation, etc. in the details of compensation for directors
and corporate auditors in the Business Report for the previous fiscal year.

(ii) In order to maintain motivation to lead the transformation over the next few years, we will pay a
total of 74 million yen in cash in March 2022 as a special award based on the individual performance
evaluation of FY2021.
The Audit and Supervisory Committee discussed and reviewed the appropriateness of the payment ofspecial award, and has deemed to be reasonable.

- 37 -

(3) Outside Officers
a. Matters relating to Outside Officers(a) Positions held concurrently as Directors with executive authority over operations, etc. at othercorporations, etc. and Outside Officers, etc. at other corporations, etc. (As of December 31,
2021)
Position

Name

Outside Director
Outside Director

Hiroshi Yoshioka
Hiroko Wada

Outside Director

Hirokazu Yamura

Outside Director(Audit & Supervisory
Committee Member)
Outside Director(Audit & Supervisory
Committee Member)
Outside Director(Audit & Supervisory
Committee Member)
Outside Director(Audit & Supervisory
Committee Member)

Irial Finan

Important concurrent positions
Representative, Office WaDa
Outside Director, Shimadzu Corporation
Outside Director (Audit & Supervisory Committee Member), Unicharm
Corporation
Representative Director & President, MICHINOKU COCA-COLA
BOTTLING CO., LTD.
Director, Smurfit Kappa Group Plc
Director, Fortune Brands Home & Security, Inc.

Celso Guiotoko

Director and Global Chief Digital Officer, Nishimoto Co., Ltd.

Nami Hamada

Co-Founder, Managing Director, Mile High Capital Inc.
Outside director (Audit committee member), MetLife Insurance K.K.

Vamsi Mohan Thati

President, Greater China and Mongolia Operating Unit, The Coca-Cola
Company

Note: The Company’s relationships with other corporations where the Company’s Outside Officers serve concurrently
as Directors with executive authority over operations, etc. are as follows:(1) There is no business relationship to be disclosed between the Company and Office WaDa.
(2) There is no business relationship to be disclosed between the Company and Shimadzu Corporation.
(3) There is no business relationship to be disclosed between the Company and Unicharm Corporation.
(4) The Company and MICHINOKU COCA-COLA BOTTLING CO., LTD. have a trading relationship (sales,
0.2% of consolidated sales revenue of the Company; purchases, 0.5% of consolidated sales revenue of
MICHINOKU COCA-COLA BOTTLING CO., LTD.
(5) There is no business relationship to be disclosed between the Company and Smurfit Kappa Group Plc.
(6) There is no business relationship to be disclosed between the Company and Fortune Brands Home &Security, Inc.
(7) There is no business relationship to be disclosed between the Company and Nishimoto Co., Ltd.
(8) There is no business relationship to be disclosed between the Company and Mile High Capital Inc.
(9) There is no business relationship to be disclosed between the Company and MetLife Insurance K.K.
(10) THE COCA-COLA COMPANY is an “Other Related Company” of the Company, and the Company hasentered into agreements with it concerning the manufacture and sale of Coca-Cola and other products andthe use of its trademarks.

- 38 -

(b) Main activities during the fiscal year under review
Position

Name

Outside Director

Hiroshi Yoshioka

Outside Director

Hiroko Wada

Outside Director

Hirokazu Yamura

Outside Director
Irial Finan(Audit & Supervisory
Committee Member)

Outside Director
Celso Guiotoko(Audit & Supervisory
Committee Member)

Outside Director
Nami Hamada(Audit & Supervisory
Committee Member)

Outside Director
Vamsi Mohan Thati(Audit & Supervisory
Committee Member)

Main activities
He attended all the 8 Board of Directors’ meetings held during the fiscal
year under review and provided advice as appropriate based on his
considerable experience and global knowledge gained at the Coca-Colabottling company in Japan and Sony Corporation.
She attended all the 8 Board of Directors’ meetings held during the fiscal
year under review and provided advice as appropriate based on her
considerable experience and global knowledge gained as officer at The
Procter & Gamble Company and as Representative Director at Dyson Ltd.
and Toys”R”Us-Japan Ltd.
He attended all the 8 Board of Directors’ meetings held during the fiscal
year under review after he assumed Director of the Company and provided
advice as appropriate based on his considerable experience andknowledge gained in management and as Representative Director &President at Michinoku Coca-Cola Bottling Co., Ltd..
He attended all the 8 Board of Directors’ meetings and 8 Audit &Supervisory Committee’s meetings held during the fiscal year underreview and provided advice as appropriate based on his considerable
experience and global knowledge gained as a corporate executive engaged
in Coca-Cola business over many years engaging in management of The
Coca-Cola Company and global bottlers and acting as a representative of
the Bottling Investments Group engaging in oversight of Coca-Colabottlers worldwide.
He attended all the 8 Board of Directors’ meetings and 8 Audit &Supervisory Committee’s meetings held during the fiscal year underreview and provided advice as appropriate based on his considerable
experiences and global expertise gained at Nissan Motor Co., Ltd.
(“Nissan”) as well as Nishimoto Co., Ltd. And his audit experience as
Statutory Auditor at Nissan.
She attended all the 8 Board of Directors’ meetings and 8 Audit &Supervisory Committee’s meetings held during the fiscal year underreview and provided advice as appropriate based on her considerable
experiences on Finance and Accounting gained as a proprietor of her own
finance consulting company and her considerable experiences and global
knowledge gained as a corporate executive at Lehman Brothers JapanInc..
He attended all the 6 Board of Directors’ meetings and 5 out of 6 times of
Audit & Supervisory Committee’s meetings held during the fiscal year
under review after he assumed Director (Audit & Supervisory Committee
Member) of the Company and provided advice as appropriate based on
his considerable management experiences and global knowledge gained
as a Senior manager at business units in the Asia region of The Coca-Cola
Company.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(Note: Amounts, number of shares and ratios in the business report are rounded off to the nearest unit.)- 39 -

Consolidated Statement of Financial Position
As of December 31, 2021

Millions of yen
AssetsCurrent assets:
Cash and cash equivalents

110,497

Trade and other receivables

105,320

Inventories

67,583

Other financial assets

1,320

Other current assets

16,275

Total current assets

300,995

Non-current assets:
Property, plant and equipment

434,994

Right-of-use assets

25,144

Intangible assets

66,219Investments accounted for using the equity method

281

Other financial assets

19,511

Deferred tax assets

13,960

Other non-current assets

6,006

Total non-current assets

566,116

Total assets

867,111

Note: Amounts less than one million yen are rounded.

- 40 -

Consolidated Statement of Financial Position
As of December 31, 2021

Millions of yen
Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables

103,260

Bonds and debts

30,990

Lease liabilities

4,050

Income taxes payable

1,139
9

Provisions
Other current liabilities

16,085

Total current liabilities

155,535

Non-current liabilities:
Bonds and debts

156,622

Lease liabilities

22,462

Net defined benefit liabilities

17,605

Provisions

2,137

Deferred tax liabilities

17,379Other non-current liabilities

2,920

Total non-current liabilities

219,125

Total liabilities

374,660

EquityCapital stock

15,232

Capital surplus

450,832

Retained earnings

109,273

Treasury shares(85,661)

Accumulated other comprehensive income

2,644

Equity attributable to owners of the parent (total)

492,320

Non-controlling interests

131

Total equity

492,451

Total liabilities and equity
Note:

867,111Amounts less than one million yen are rounded.

- 41 -

Consolidated Statement of Income

For the fiscal year ended December 31, 2021
Millions of yen
Continuing operations
Net sales

785,837

Cost of sales

435,332

Gross profit

350,505

Selling and general administrative expenses

363,750

Other income

10,138Other expenses

17,702

Share of income (loss) of entities accounted for using equity
methodOperating income(loss)(162)(20,971)

Financial revenue

377

Finance costs

1,089

Income(loss) for the year before income tax(21,683)

Income tax expense(6,653)

Net income(loss) for the year from continuing operations(15,029)

Discontinued operations
Net income(loss) for the year from discontinued operations

12,505

Net income (loss) for the year

(2,525)

Net income(loss) for the year attributable to:
Owners of the parent
Loss from continuing operations attributable to owners of parent
Profit from discontinued operations attributable to owners ofparentNon-controlling interests(15,008)
12,505(21)

Note: Amounts less than one million yen are rounded.

- 42 -

Non-consolidated Balance Sheet
As of December 31, 2021

AssetsCurrent assets:
Cash and deposits
Prepaid expenses
Short-term loan receivable of subsidiaries and affiliates
Accrued income receivable
Other current assets
Total current assets
Fixed assets:
Property, plant and equipment:
Buildings
Structures
Tools, instruments and fixtures
Land
Total property, plant and equipment

Millions of yen

7,187
39
128,454
82
2,146
137,908

13,031924
13
48,21662,185Intangible assets:
Leasehold right
SoftwareTotal intangible assets

27
1
28

Investments and other assets:
Investment securities of subsidiaries and affiliates
Deferred tax assets
Other assets
Total investments and other assets
Total fixed assets

342,561184
544
343,289405,502

Total assets

543,410

Note: Amounts less than one million yen are rounded.

- 43 -

Non-consolidated Balance Sheet
As of December 31, 2021

Millions of yen
Liabilities
Current liabilities:
Bonds and debts
Other accounts payable
Accrued expenses payable
Money entrusted
Allowance for bonuses
Allowance for bonuses to directors
Other current liabilities
Total current liabilities

30,000
333
4
9,722
4
120
91
40,274Long-term liabilities:
Bonds payable
Assets retirement obligation
Provision for performance-linked compensation
Other long-term liabilities
Total long-term liabilities

150,000
1,039
197
87
151,324

Total liabilities

191,598

Net assets
Shareholders’ equity:
Common stock
Additional paid-in capital
Capital reserve
Other additional paid-in capital
Total additional paid-in capital
Retained earnings:
Legal reserve
Other retained earnings:
Reserve for advanced depreciation
General reserve
Retained earnings to be carried forward
Total other retained earnings
Total retained earnings
Treasury stock (at cost)
Total shareholders’ equity

676
110,388
40,911
151,975
155,292(85,661)
351,812

Total net assets

351,812

Total liabilities and net assets

543,410

15,232
108,167
158,783
266,950
3,317

Note: Amounts less than one million yen are rounded.

- 44 -

Non-consolidated Statement of Income

For the fiscal year ended December 31, 2021
Millions of yen
Net revenues
Operating expenses
Operating income

5,797
4,257
1,540

Non-operating income:Interest and dividend received
Other non-operating income
Total non-operating income

183
19
202

Non-operating expenses:
Interest expenses
Other expenses
Total non-operating expenses
Recurring income
Extraordinary profit:
Gain on sale of fixed assets
Gain on sales of stocks of subsidiaries and affiliates
Total extraordinary profit
Extraordinary losses:
Impairment loss
Loss on sales of fixed assets
Loss on retirement of fixed assets
Total extraordinary losses
Income before income taxes
Income taxes
Income taxes deferred
IncomeNote: Amounts less than one million yen are rounded.

- 45 -

472
69
541
1,201
1,359
17,57918,938298
33
3
333
19,805
1,054
356
18,395

Independent Auditor’s ReportFebruary 17, 2022
The Board of Directors
Coca-Cola Bottlers Japan Holdings, Inc.
Ernst & Young ShinNihon LLC
Tokyo OfficeTokuya Takizawa (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Miyuki Nakamura (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Keita Tsujimoto (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
OpinionWe have audited the consolidated financial statements, comprising the consolidated balance
sheet, the consolidated statement of income, the consolidated statement of changes in net assets
and the related notes of Coca-Cola Bottlers Japan Holdings, Inc. as at December 31, 2021 andfor the year from January 1, 2021 to December 31, 2021 in accordance with Article 444-4 of theCompanies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in allmaterial respects, the financial position and the results of operations of Coca-Cola Bottlers
Japan Holdings, Inc. and its consolidated subsidiaries for the period, for which the consolidated
financial statements were prepared, in accordance with the provisions of the latter part of Article
120, Paragraph 1 of the Regulation on Corporate Accounting which allows companies toprepare consolidated financial statements with the omission of some disclosure items required
under Designated International Financial Reporting Standards.
Basis for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibility under the auditing standards is stated in “Auditor’s Responsibility for the Audit of
the Consolidated Financial Statements.” We are independent of the Company and its- 46 -

consolidated subsidiaries in accordance with the provisions related to professional ethics inJapan, and are fulfilling other ethical responsibilities as an auditor.
We believe that we have obtained sufficient and appropriate audit evidence to provide a basis
for our audit opinion.
Responsibilities of Management and the Audit & Supervisory Committee for theConsolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated
financial statements in accordance with the provisions of the latter part of Article 120,
Paragraph 1 of the Regulation on Corporate Accounting which allows companies to prepare
consolidated financial statements with the omission of some disclosure items required under
Designated International Financial Reporting Standards, and for such internal control as
management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing
whether it is appropriate to prepare the consolidated financial statements in accordance with thepremise of a going concern, and for disclosing matters relating to going concern when it isrequired to do so in accordance with the provisions of the latter part of Article 120, Paragraph 1of the Regulation on Corporate Accounting which allows companies to prepare consolidated
financial statements with the omission of some disclosure items required under DesignatedInternational Financial Reporting Standards.
The Audit & Supervisory Committee is responsible for monitoring the execution of Directors’
duties related to designing and operating the financial reporting process.
Auditor’s Responsibility for the Audit of the Consolidated Financial Statements
Our responsibility is to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
express an opinion on the consolidated financial statements from an independent standpoint in
an audit report, based on our audit. Misstatements can occur as a result of fraud or error, and are
deemed material if they can be reasonably expected to, either individually or collectively,
influence the decisions of users taken on the basis of the consolidated financial statements.
We make professional judgment in the audit process in accordance with auditing standards
generally accepted in Japan, and perform the following while maintaining professional
skepticism.
・Identify and assess the risks of material misstatement, whether due to fraud or error. Design
and implement audit procedures to address the risks of material misstatement. The audit
procedures shall be selected and applied as determined by the auditor. In addition, sufficientand appropriate audit evidence shall be obtained to provide a basis for the audit opinion.
・In making those risk assessments, the auditor considers internal control relevant to theentity’s audit in order to design audit procedures that are appropriate in the circumstances,although the purpose of the audit of the consolidated financial statements is not to express an
opinion on the effectiveness of the entity’s internal control.

- 47 -

・Assess the appropriateness of accounting policies adopted by management and the method of
their application, as well as the reasonableness of accounting estimates made by management
and the adequacy of related notes.
・Determine whether it is appropriate for management to prepare the consolidated financial
statements on the premise of a going concern and, based on the audit evidence obtained,
determine whether there is a significant uncertainty in regard to events or conditions that may
cast significant doubt on the entity’s ability to continue as a going concern. If there is asignificant uncertainty concerning the premise of a going concern, the auditor is required tocall attention to the notes to the consolidated financial statements in the audit report, or if thenotes to the consolidated financial statements pertaining to the significant uncertainty areinappropriate, issue a modified opinion on the consolidated financial statements. While theconclusions of the auditor are based on the audit evidence obtained up to the date of the audit
report, depending on future events or conditions, an entity may be unable to continue as agoing concern.
・Besides assessing whether the presentation of and notes to the consolidated financial
statements are in accordance with the provisions of the latter part of Article 120, Paragraph 1of the Regulation on Corporate Accounting which allows companies to prepare consolidated
financial statements with the omission of some disclosure items required under DesignatedInternational Financial Reporting Standards, assess the presentation, structure, and content of
the consolidated financial statements including related notes, and whether the consolidated
financial statements fairly present the transactions and accounting events on which they arebased.
・Obtain sufficient and appropriate audit evidence regarding the financial information of theCompany and its consolidated subsidiaries in order to express an opinion on the consolidated
financial statements. The auditor is responsible for instructing, supervising, and implementing
the audit of the consolidated financial statements, and is solely responsible for the audit
opinion.
The auditor reports to the Audit & Supervisory Committee regarding the scope and timing of
implementation of the planned audit, material audit findings including material weaknesses ininternal control identified in the course of the audit, and other matters required under theauditing standards.
The auditor reports to the Audit & Supervisory Committee regarding the observance ofprovisions related to professional ethics in Japan as well as matters that are reasonably
considered to have an impact on the auditor’s independence and any safeguards that are in place
to reduce or eliminate obstacles
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed
pursuant to the provisions of the Certified Public Accountants Law of Japan.
Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’sReport as required by the Companies Act.

- 48 -

Independent Auditor’s ReportFebruary 17, 2022
The Board of Directors
Coca-Cola Bottlers Japan Holdings, Inc.
Ernst & Young ShinNihon LLC
Tokyo OfficeTokuya Takizawa (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Miyuki Nakamura (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Keita Tsujimoto (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
OpinionWe have audited the financial statements, comprising the balance sheet, the statement ofincome, the statement of changes in net assets and the related notes, and the supplementaryschedules of Coca-Cola Bottlers Japan Holdings, Inc. as at December 31, 2021 and for the year
from January 1, 2021 to December 31, 2021 in accordance with Article 436-2-1 of theCompanies Act.
In our opinion, the financial statements and the supplementary schedules referred to above
present fairly, in all material respects, the financial position and the results of operations of
Coca-Cola Bottlers Japan Holdings, Inc. for the period, for which the financial statements andthe supplementary schedules were prepared, in accordance with accounting principles generally
accepted in Japan.
Basis for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibility under the auditing standards is stated in “Auditor’s Responsibility for the Audit of
the Financial Statements and the Accompanying Supplementary Schedules.” We are
independent of the Company in accordance with the provisions related to professional ethics inJapan, and are fulfilling other ethical responsibilities as an auditor. We believe that we haveobtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.

- 49 -

Responsibilities of Management and the Audit & Supervisory Committee for the Financial
Statements and the Accompanying Supplementary Schedules
Management is responsible for the preparation and fair presentation of the financial statements
and the supplementary schedules in accordance with accounting principles generally accepted inJapan, and for such internal control as management determines is necessary to enable thepreparation of financial statements and the supplementary schedules that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements and the accompanying supplementary schedules,
management is responsible for assessing whether it is appropriate to prepare the financial
statements and the accompanying supplementary schedules in accordance with the premise of agoing concern, and for disclosing matters relating to going concern when it is required to do soin accordance with accounting principles generally accepted in Japan.
The Audit & Supervisory Committee is responsible for monitoring the execution of Directors’
duties related to designing and operating the financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements and the Accompanying
Supplementary Schedules
Our responsibility is to obtain reasonable assurance about whether the financial statements andthe accompanying supplementary schedules as a whole are free from material misstatement,
whether due to fraud or error, and to express an opinion on the financial statements and theaccompanying supplementary schedules from an independent standpoint in an audit report,
based on our audit. Misstatements can occur as a result of fraud or error, and are deemedmaterial if they can be reasonably expected to, either individually or collectively, influence thedecisions of users taken on the basis of the financial statements and the accompanying
supplementary schedules.
We make professional judgment in the audit process in accordance with auditing standards
generally accepted in Japan, and perform the following while maintaining professional
skepticism.
・Identify and assess the risks of material misstatement, whether due to fraud or error. Design
and implement audit procedures to address the risks of material misstatement. The audit
procedures shall be selected and applied as determined by the auditor. In addition, sufficientand appropriate audit evidence shall be obtained to provide a basis for the audit opinion.
・In making those risk assessments, the auditor considers internal control relevant to the entityʼ
s audit in order to design audit procedures that are appropriate in the circumstances, although
the purpose of the audit of the financial statements and the accompanying supplementaryschedules is not to express an opinion on the effectiveness of the entity’s internal control.
・Assess the appropriateness of accounting policies adopted by management and the method of
their application, as well as the reasonableness of accounting estimates made by management
and the adequacy of related notes.

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・Determine whether it is appropriate for management to prepare the financial statements andthe accompanying supplementary schedules on the premise of a going concern and, based on
the audit evidence obtained, determine whether there is a significant uncertainty in regard toevents or conditions that may cast significant doubt on the entity’s ability to continue as agoing concern. If there is a significant uncertainty concerning the premise of a going concern,
the auditor is required to call attention to the notes to the financial statements and theaccompanying supplementary schedules in the audit report, or if the notes to the financial
statements and the accompanying supplementary schedules pertaining to the significant
uncertainty are inappropriate, issue a modified opinion on the financial statements and theaccompanying supplementary schedules. While the conclusions of the auditor are based on
the audit evidence obtained up to the date of the audit report, depending on future events orconditions, an entity may be unable to continue as a going concern.
・Besides assessing whether the presentation of and notes to the financial statements and theaccompanying supplementary schedules are in accordance with accounting principles
generally accepted in Japan, assess the presentation, structure, and content of the financial
statements and the accompanying supplementary schedules including related notes, andwhether the financial statements and the accompanying supplementary schedules fairly
present the transactions and accounting events on which they are based.
・To express an opinion on the financial statements and the accompanying supplementaryschedules, obtain sufficient and appropriate audit evidence relating to the financial
information on components, which is included in the financial statements and theaccompanying supplementary schedules. The auditor is responsible for giving instructions on,
monitoring, and performing audits relating to the financial information on components. The
auditor is solely responsible for audit opinions.
The auditor reports to the Audit & Supervisory Committee regarding the scope and timing of
implementation of the planned audit, material audit findings including material weaknesses ininternal control identified in the course of the audit, and other matters required under theauditing standards.
The auditor reports to the Audit & Supervisory Committee regarding the observance ofprovisions related to professional ethics in Japan as well as matters that are reasonably
considered to have an impact on the auditor’s independence and any safeguards that are in place
to reduce or eliminate obstacles.
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed
pursuant to the provisions of the Certified Public Accountants Law of Japan.
Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’sReport as required by the Companies Act.

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Audit Report
We, as the Audit & Supervisory Committee （‟A&S Committee”） conducted audits relating to the execution ofduties by directors during FY 2021 business year from January 1, 2021 to December 31,2021, and hereby report themethod of audits and results as follows.

1. Method of audits and the details
A&S Committee received regular reports from directors and employees on the content of
resolutions of the board of directors regarding matters prescribed in Paragraph 1 (i) (b) and (c) of
Article 399-13 of the Companies Act and the status of building and operation of the internal control
system which had been developed based on the board resolutions, requested further explanations asneeded, explained its opinions and conducted audits as below:①

A&S Committee members participated in important meetings in accordance with the audit policy specified
by the Committee in cooperation with the company’s internal control department. A&S Committee received
reports relating to the execution of duties by directors from directors and employees, requested further
explanations as needed, and examined the process and details of decision-making at important meetings, etc.
as well as the status of business and assets.
A&S Committee also received reports on the status of subsidiaries’ business as needed by communicatingand exchanging information with directors, auditors, etc. of the subsidiaries.

②

A&S Committee examined the basic policies (specified according to Article 118 (iii)(a) of the CompaniesAct) and the special efforts (specified according to Article 118 (iii)(b) of the Companies Act) described in
the business reports in light of the status of deliberations at the board of directors and other meetings.

③

A&S Committee members conducted audits to ensure that accounting auditors kept independence andconducted appropriate accounting audits, while receiving reports on the execution of duties by them andrequesting further explanations as needed. In addition, A&S Committee received notification by accounting
auditors that they were developing a “structure to secure appropriate execution of duties by directors” inaccordance with the “quality control standards relating to audits”, etc., and requested further explanations asneeded.

Based on the above outlined method, we examined the business reports and their detailed statements, thefinancial statements and their detailed statements, as well as the consolidated financial statements relating to thebusiness year in question.

2 . Audit Results(1) Result of Audit of Business Reports, etc.
① We acknowledge that the business reports and detailed statements correctly indicate the company’s situationin accordance with laws and regulations and the Articles of Incorporation.

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② We acknowledge that there is no misconduct relating to the director’s execution of duties or any significant
facts that violate laws and regulations or the Articles of Incorporation.
③ We acknowledge that the details of resolutions of the board of directors relating to the internal control system
are appropriate. Furthermore, we acknowledge that there is no point of concern to be indicated regarding thedetails stated in business reports relating to internal control systems and the execution of duties by the director.
We also received reports from directors and ERNST & YOUNG SHIN NIHON LLC that they acknowledged theinternal control relating to financial reporting was valid as of preparation of this Audit Report.
④ We acknowledge that there is no point of concern to be indicated regarding the basic policies relating tocontrol of the company described in the business reports. We acknowledge that the special effort described in
the business reports (specified according to Article 118 (iii) (b) of the Companies Act) is consistent with thebasic policies, does not harm the common interests of shareholders of the company, and is not intended tomaintain the position of officers of the company.
(2) Results of Audit of Financial Statements and Detailed Statements
We acknowledge that the method and results of the audit by ERNST & YOUNG SHIN NIHON LLC are appropriate.
(3) Results of Audit of Consolidated Financial Statements
We acknowledge that the method and results of the audit by ERNST & YOUNG SHIN NIHON LLC are appropriate.

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February 17, 2022
Audit & Supervisory Committee, Coca-Cola Bottlers Japan Holdings Inc.

Audit & Supervisory Committee Member

Irial Finan

Audit & Supervisory Committee Member

Celso Guiotoko

Audit & Supervisory Committee Member

Nami Hamada

Audit & Supervisory Committee Member

Vamsi Mohan Thati(Note) Audit & Supervisory Committee Member Irial Finan, Audit & Supervisory Committee Member Celso Guiotoko, Audit& Supervisory Committee Member Nami Hamada and Audit & Supervisory Committee Member Vamsi Mohan Thati areExternal Auditors provided for in Article 2-15 and Article 331-6 of the Companies Act.

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Status of Sales Activities
Product Showcase
Premium PET Bottled Coffee “COSTA Latte Espresso” (launched October 4, 2021)
From Europe’s No. 1* café brand “COSTA COFFEE,” a new latte with a strong coffee feel been
introduced.
Enjoy the bittersweet and rich flavor of espresso with just the right amount of sweetness and 100%
domestic milk.
Offering “COSTA Black Coffee,” “COSTA Café Latte” or “COSTA Latte Espresso” based onyour preferences and mood.
*Allegra 2021 World Coffee Portal Survey

First Release in the Ayataka Café Series “Ayataka Café Matcha Latte” (launched March
22, 2021)
The first release in the new “Ayataka Café” series, born from the authentic green tea brand“Ayataka.”
Under the supervision of the long-established tea shop “Kanbayashi Shunsho Honten” in Uji,
Kyoto and the specialty coffee shop “Sarutahiko Coffee,” it offers an authentic taste and a new
way to enjoy tea.
Made with plenty of carefully selected domestic matcha to deliver an refined milk taste thatenhances the flavor of matcha.

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Non-Alcoholic Brand “Yowanai Lemon-dou” (launched February 21, 2022)
A non-alcoholic lemon sour flavored drink made based on our experience with “Lemon-dou,”with an alcohol content of 0.00%.
A Contribute to capture growth opportunities for the Company in the growing non-alcoholicmarket.
We have achieved an authentic lemon sour taste with a unique recipe that uses carefully selectedlemon juice and spices used in gin.

Coca-Cola Official App “Coke ON” Exceeds 33 million Downloads*!!
Coke ON is a smartphone app with great value and fun, where users can collect stamps to get freedrink tickets and other benefits. Since the service started in April 2016, in addition to the basic
functions of collecting stamps and receiving drink tickets, we have developed various functions
and services in order to provide great value and enjoyable beverage experience. In 2018, we added“Coke ON Walk,” which made it possible for users to collect stamps just by walking. In 2019,the cashless payment function “Coke ON Pay” was added, and in 2021, the subscription (flatrate) service “Coke ON Pass” was introduced. From 2022 onward, we will continue to improveexisting functions while aiming to develop new services that appeals to everyone.
*As of December 31, 2021

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ESG Initiatives
Establishment of Greenhouse Gas (GHG) Emissions Reduction Targets by 2030
The Company continues to promote Environment, Society and Governance (ESG) initiatives witha management based on Creating Shared Value (CSV), which regards business growth and theresolution of social issues as one and the same. In October 2021, as The Coca-Cola system inJapan, we formulated and announced reduction targets for greenhouse gas (GHG) emissions
across the entire value chain in Japan by 2030. Through various initiatives, such as expanding the
introduction of recycle PET bottles and the utilization of renewable energy, we are aiming for a
50% reduction in Scope 1 (direct GHG emissions) and Scope 2 (indirect GHG emissions) against
the level in 2015 and a 30% reduction in Scope 3 (other indirect GHG emissions) against the levelin 2015.

Promotion of the Sustainable Use of Resources, Including “Bottle-to-Bottle Recycling”
As part of our initiative to achieve the “2030 Packaging Vision,” which aims for a World Without
Waste, we are promoting “bottle-to-bottle” in order to create new PET bottles from used PET
bottles. We have been using 100% recycled PET bottles for I LOHAS Natural Water since 2020,
and in 2021, we expanded the use of 100% recycled PET bottles to our mainstay Coca-Cola andGeorgia Japan Craftsman* small PET bottles. In addition to these initiatives, we have beenworking on the adoption of label-less packaging, the expansion of recyclable containers and theweight reduction of containers, which has contributed significantly to the reduction of CO2 andthe amount of plastic newly produced from petroleum-derived raw materials. Regarding the usage
ratio of sustainable materials, including “bottle-to-bottle,” we achieved 40% use in 2021, and aim
to achieve the target of 50% by the end of 2022. We will continue to promote initiatives towards
the realization of a World Without Waste.
*Only message bottles are included for Japan Craftsman.

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Earned 4.5 Stars in the Nikkei Smart Work Management Survey, which Selects Advanced
Companies that Revolutionize Productivity through Work Style Reforms
The Company earned 4.5 star rating in the Fifth Nikkei Smart Work Management Survey
published by Nikkei Inc. in November 2021. We believe that our initiatives such as diversity &inclusion, promotion of flexible work styles, health management initiatives, activation of external
communication, and introduction and utilization of technology were recognized, and we received
evaluations of S⁺ and S⁺⁺ in the fields of People Utilization Capability and Market Development
Strengths, respectively. Going forward, we will continue to strive to achieve sustainable growthin the future and provide value to our stakeholders by increasing productivity through the creationof a comfortable work environment for our employees.

The Nikkei Smart Work Management Survey has been conducted by Nikkei Inc. since 2017,targeting listed companies and leading unlisted companies nationwide. Smart work management
is defined as an effort to maximize organizational performance through the three factors of therealization of diverse and flexible work styles (people utilization capability), the creation of new
businesses (innovation) and the ability to develop new markets (market development strengths),
and is assessed on a five-star scale.
Obtained Gold Certification in the LGBTQ Initiative Index “PRIDE Index 2021”
The “PRIDE Index” is an evaluation index for companies, established by the voluntaryorganization “work with Pride” that supports the promotion and establishment of diversity
management related to LGBTQ employees and other sexual minorities in organizations such ascompanies. In November 2021, we received a “Gold” rating, the highest certification in thesystem. Based on respect for the individuality of each and every employee, we believe that it isimportant to actively incorporate diverse values and ideas in order to continue to create innovation.
Based on this belief, we are promoting the creation of a more comfortable work environment andefforts to raise awareness throughout the company, such as by revising internal regulations andproviding ongoing training, in order to promote and instill diversity and inclusion (D&I), andprovide equal opportunities for all employees. As an example of our initiatives, we completed the- 58 -

establishment of benefits and work regulations that apply to same-sex partners in 2020. Moreover,human rights policies and D&I policies specify “gender identity and expression,” in addition to“sexual orientation,” as elements that make up diversity.

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Promotion of Digital Transformation (DX)DX Initiatives in the Sales Field
We are focusing on the promotion of DX based on the idea of radically transforming our businessin order to promptly respond to the changing and diversifying needs of our customers and society.
At sales sites, we are working to improve the productivity and efficiency of sales activities byutilizing Sales Force Automation (SFA) to manage and analyze customer information, formulate
activity plans and record results. Moreover, we are making efforts to offer proposals for
optimizing selling space by utilizing augmented reality (AR) technology and image recognition
apps in business negotiations. In addition, we are providing Coke ON services as a digital platform,building big data infrastructure and utilizing AI (machine learning) in sales activities such as sales
forecasting, visit simulations and product lineup optimization. We are also promoting DX in all
fields, including manufacturing, logistics and back office, and we will continue to strive toimprove the value provided by the utilization of digital technology.

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