August 9, 2023

Company Name
Representative

Coca-Cola Bottlers Japan Holdings Inc.
Representative Director& President(Code No. 2579 TSE Prime Market)
Executive Officer,
Contact
Head of Legal

Calin Dragan

Tomokazu Usagawa(Tel. 0800-919-0509)

Coca-Cola Bottlers Japan Holdings Announces
New Strategic Business Plan: Vision 2028
～Targets revenue growth of 2-3% CAGR, business income margin of 5%+ and ROIC of 5%+～Coca-Cola Bottlers Japan Holdings Inc. announced its new strategic business plan for 2028. We aim to achieve revenue
growth of 2-3% CAGR, a business income margin of 5%+ and a ROIC of 5%+ by 2028.
Key transformation initiatives to date have built a strong business foundation, and the business environment is graduallystabilizing, despite being significantly affected by the impact of COVID-19 and the challenging cost environment.
Furthermore, business performance has steadily recovered. Therefore, we have formulated a new strategic business plan,“Vision 2028” to accelerate efforts for sustainable future growth.
Under our corporate philosophy, “Paint it RED! Let’s Repaint our Future.”, our mission is to deliver happy moments toeveryone while creating value. By steadily implementing key measures of our new strategic business plan, we will achieve
our mission and move toward sustainable growth that increases corporate value.
Overview of Vision 2028◼

OutlineAim for sustainable, profitable growth through a cost structure resilient to change◼

Pillars of Our Initiatives✓

Commercial Excellence
・Product strategies in-line with trends, appropriate growth strategies by channel, profitability-focused commercial
activities, vending transformation✓

Supply Chain Optimization
・Agile logistics, flexible manufacturing structure, end-to-end integration, digital technology✓

Back-Office and IT Optimization :・Promote data-driven management, efficient administrative and business operations✓

Enhance: ESG/Human Capital/ Financial Foundation

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◼

Key Metrics and Picture of Success

Revenue+2-3% CAGR

Volume+0.5-1% CAGR

Revenue growth above volume growth
Growth aligned with profitability-focusedcommercial strategy

5%+ margin

Aiming for sustainable profit growth45-50 B JPY

Return to profitability by 2024

Transformation Savings

25-35 B JPY

Transformation across the company

ROIC

5%+

Improved profitability and capital efficiency

Shareholder Return

Stable dividends focus

Consider flexible shareholder value initiatives

Business Income*Growth target compared to 2023 forecast announced in Feb 2023◼

Reference Material
Strategic Business Plan 2024-2028 Vision 2028

*Please note that the information contained in news releases is current as of the date of release. Certain information may
have changed since the date of releaseEnd

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Strategic Business Plan
2024 – 2028

Vision 2028
August 9, 2023

Coca-Cola Bottlers Japan Holdings Inc.
Calin Dragan, President
Bjorn Ivar Ulgenes, Vice President & CFO(Posted to CCBJH website on Aug 9, 2023)

Introduction

Staying True to Our Mission, Vision, Values

2Introduction

Leadership Team Fostering Growth
Coca-Cola Bottlers Japan Holdings Inc.
Presenters

Coca-Cola (Japan) Company, Ltd.
Presenter

Calin Dragan

Bjorn Ivar Ulgenes

Costin Mandrea

Jorge Garduño

Representative Director
and President

Representative Director
and Vice President, CFO

Coca-Cola Bottlers Japan Inc.

President

Executive Officer and CCO

Japan and South Korea

3

Strategic Business Plan Outline

Achievements and Learnings: Our Journey
Attained learnings and results amidst challenging environment for the future
Strategic business plan announced in 2019
COVID impact: Drop in traffic and channel mix impact
Cost environment: Commodity and energy price rise, yen weakening

Responding to changes in the environment by making quick
business decisions in the midst of unprecedented circumstances
Drive transformation: Over 30 billion yen of cost savings, built astrong business foundation

Strengthen profit foundation: 3 rounds of price revisions
implemented since 2022
Commercial activities to capture the traffic recovery
Good stewardship of capital: Controlled capex, sale of non-core
assets and cross shareholdings

Stabilizing

StrongBusiness
Foundation

Leveragelearnings andachievements

Learnings &GrowthOpportunities

4Strategic Business Plan Outline

Reason to Believe: Now is the Time to Move Toward the Future
Key transformation initiatives to date have built a strong business foundation
The business environment is gradually stabilizing, despite being significantly
affected by the impact of COVID and challenging cost environment
Steady recovery in business performance since 2022; steady progress for 2023

Set new medium term goals andaccelerate efforts for sustainable growth
5Strategic Business Plan Outline

5 Year Strategic Business Plan Focused on Profitability andCapital Efficiency
Vision 2028: Sustainable Profitable Growth+2-3% CAGR

Profitability-focused commercial activity
Optimization to enhance value creation in supply
chain, back-office and IT
Driving company-wide transformation to further
strengthen business foundation and cost savings
Improve capital efficiency through goodstewardship of capital
Promote ESG and human capital management
for the foundation of sustainable growth

REVENUE GROWTH

5%+
BUSINESS INCOME MARGIN

25-35 B JPY
TRANSFORMATION SAVINGS

5%+
ROIC
BUILD COST STRUCTURE
RESILIENT TO CHANGE
6

Strategic Business Plan Outline

Key Pillars for Achieving Strategic Business Plan
Vision 2028: Sustainable profitable growthProfitable growth and build cost structure resilient to change
Commercial Excellence
Product strategies in-line withtrendsAppropriate growth strategies
by channel
Profitability-focused commercial
activities
Vending transformation

Supply Chain
Optimization
Agile logistics
Building flexible manufacturing
structure
End-to-end integration
Leverage digital technology

Back-Office and IT
Optimization

Promote data-driven
management
Efficient administrative andbusiness operations

Enhance: ESG / Human Capital / Financial Foundation

7

Commercial Excellence

Improving Macro Environment and Changing Consumption Trends
Provide Opportunities for Growth
Macro indicators trending upwards

Changing NARTD industry trends

Beverage category inflation rising above CPI since mid-2022
2018 – 2023, normalized to Jan 2018

Restaurant, Leisure andTourism Recovery

Premiumization andAuthenticity
Rising interest in quality
and unique experiences

100

Traffic recovery leading toincresed beverage
consumption occasions

0

Enhanced Digital
Consumer Engagement

Health-Conscious
Products

New ways to directly
connect with consumers
are emerging

Growing need for healthier
beverages, including
FOSHU and foods withfunctional claims

Price Revisions

Sustainability

Rising beverage prices withcost pressure fromexternal factors

Rising consumer
expectation aroundsustainable business
operations

CPI (all items)

110

Alcohol

Beverage

Beverage prices
surpassed CPI

105

2018

2019

2020

2021

2022

2023

Steadily growing median disposable income per household2018 – 2022, Millions of JPY
5.3+2% p.a.

5.2
5.1
5.0
4.9
4.8
0.1
0
2018

2019

2020

2021

2022

2023

Source: Statistics Bureau, Ministry of Internal Affairs and Communications, Ministry of Finance, Bank of Japan, National
statistics, compiled by CCBJH

8Commercial Excellence

Strong “One System” Partnerships Driving Growth

A PARTNERSHIP WITH PURPOSE...

Refresh Japan, Create Positive Difference
One System with Clear Role Sort
Nurture a Growth Mindset
Shape Healthy Industry Dynamics
Consumer Insights& Brand Building

Customer Collaboration& Market Execution

WORKING TOGETHER TO DRIVE GROWTH & VALUE CREATION
9Commercial Excellence

The Leading Beverage Portfolio in Japan, with Room for Growth
MARKETGROWTH
MARKET SIZE (BN JPY)*(Act 2022)

KEY BRANDS

Coca-Cola Brands

Sparkling

+5%

Tea

+4%

Coffee

flat

Water

+8%

Sports

+7%

Juice

+5%
0

*2022 CCJC estimate

200

400

600

800

1,000

1,200

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Commercial Excellence

Unique Blend of Global and Local Strengths for Sustainable Edge

Accelerating

ExpandingTransforming

CORE BRANDS

FOOTPRINT

MARKETING
Digital x GenZ culture for GEORGIA Renewal
Photo turning into Anime

Scaled Coke Studios Festival

Unique Code Cap Promotion leveraging
Coke ON

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Commercial Excellence

Execute Tailored Growth Strategies to Seize Opportunity Across Every
ChannelLeverage foundation and execute profitability-focused channel strategies
Channels

Expected Our Volume
Growth (2024 - 2028)

Current Status & Strengths

Key Strategies

Over-thecounter(OTC)• Strong market execution and brand• Strong business foundation in several areas• Salesforce transformation

Implement initiatives to increase basket incidence based on
consumption occasions
Build strategic partners with key customers
Product portfolio and sales space expansion based on
consumer needs

Vending• Strong volume and revenue recovery• Accelerated share growth through newplacements• High-cost structure and labor shortage

Strategic placement of vending machines in prime locations
Leverage Coke ON, strengthen assortment to maximize
revenue
Introduction of dynamic pricing
Increase operational productivity through digitalization• Strong post-COVID recovery• Implemented profitability improvement
initiatives

Increase product portfolio, new customer development
Profitability-focused sales equipment and product line-up
optimization
RTM* transformation, optimize pricing, terms & conditions
Diversify Food Service Aggregators (FSA)• Continued strong growth• Strong presence in the beverage e-commerce
space

Product portfolio suited to the online channel
Strengthen customer partnership (sales, promotion, logistics)

Food service

Online*RTM (Route to market): The process of delivering product orservice to the final consumer. Defining the best sales format
for the area.

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Commercial Excellence

Disciplined Commercial Actions for Enhanced Business Profitability
PACKAGING AND CHANNEL MIX
Accelerate growth of immediate
consumption packaging
Optimize pricing by package
Focus on profitable channels
Strengthen collaboration with key customers

PRODUCT PORTFOLIO
Strengthen high value-added products
through innovation
Focus on high-profitability categories
Strengthen product lineup by price range

PRICING STRATEGY
Pricing strategy reflecting market trends
Pricing based on Channel, Package, andLocation
Promotional investment optimization
with profitability in mind

PRODUCTIVITY
Customer collaboration encompassing
the whole supply chain
Improved operation efficiency with DX
Strengthen customer segmentation

13

Commercial Excellence

Transforming the Vending Business to a Higher Level
Leverage technology for growth and optimized operations

PLACEMENT OPTIMIZATION• Expansion in high-quality locations• Location development solutions• Office space solutions
DIRECTING SHOPPERS TO VENDING MACHINE• Shopper recruitment programs• Attractive product line-up and marketing• Enhance Coke ON functionalities
ASSORTMENT AND PRICING OPTIMIZATION• AI-based assortment optimization• Introduce dynamic pricing

VALUE CREATIONIN VENDING• Increase technology capabilities
with end-to-end digitalization to
unlock optimization potential• Closer to customers with a
optimized vending machine
placement• Seamless customer experience

OPERATIONAL PRODUCTIVITY IMPROVEMENT• AI-based sales and restocking plan
• Route optimization through new technology
infrastructure• Forecast-based maintenance14

Commercial ExcellenceTechnology as Key Driver of Vending Transformation
Transformation Levers
PLACEMENT
OPTIMIZATIONDIRECTING
SHOPPERS TO
VENDING

Innovations for Greater Consumer Experience
Implement big data and further use ofsale activity support systems (SFA)
Improve business performance, at the same time
improve visibility to identify high VPM*

Coke ON app and QR code payment
enhancements

Further use of Coke ON and cashless payments toimprove customer engagement to maximize sales
opportunity

ASSORTMENT
AND PRICING
OPTIMIZATION

Leverage digital to optimize pricing

OPERATIONALPRODUCTIVITY
IMPROVEMENT

AI-based sales and restocking plan

*VPM: Sales per machine

Online Vending Machine

Timely and price adjustment depending onmarket supply and demand

Capture live vending machine inventory data to
improve restocking process

15Supply Chain Optimization

Leverage Strong Supply Chain Foundation and Drive Further Efficiency
Promote transformation including digital innovation
Examples of success
Construction andimplementation of 2 Mega
DCs (automated distribution
centers) optimizing whole
supply chain
Consolidation of locations
closed over 40 locations.
Streamlining inventory
management to reduceinventory

S&OP revamp significantly
improved the service level ofproduct supply in times ofsudden demand change
Logistics optimization for
reduced transport distance
up to 25% per case**2022 vs. 2021

STRATEGIES FOR HIGH QUALITY SERVICE AT LOWEST COST
Agile Logistics

Flexible Manufacturing• Leverage Mega DCs• Optimize supply chain network• Optimize distribution network
including outside partners
AGILE
LOGISTICS

End-to-end Integration• Optimize supply chain withpromotion of local production
for local consumption model• Further improve S&OP processaccuracy to optimize supply
chain network and inventory
levelsFLEXIBLE
MANUFACTURING

END-TO-END
SCM
INTEGRATION DIGITIZATION

Human
Capital• Capacity creation throughimproved productivity• Enhance capability to
manufacture diverse products(SKU)• Enhance capability to
manufacture high value-added
products

SCM Digitization• Integrated systems and processes• Information transparency andcentralization• Advanced data analytics
supporting sound businessdecisions

SUPPLY CHAINVALUE CREATION• Ensuring stable productsupply• Optimizing asset
utilization• Collaborating with otherfunctions for optimized
supply chain and inventory• Advancing inventory
management for
improved delivery leadtimes

ActiveQuality16

Back-Office and IT Optimization

Optimizing All Enterprise Operations and IT
Promote data-driven decision making

A novel JV with Accenture to build industry-leading operations in the businessprocess and in digitalization.
Strengthen business foundation to be cost-efficient and profitable

CREATING VALUEIN BACK-OFFICE AND IT• Unlock potential futuretransformation efforts• Access technology to capture, analyze,
and utilize data

Globaltechnology
expertise

Deep industry
and customer
expertise
Human
CapitalMajority

NEW JV• Leverage insights for enhanced, databased decision making and futurebusiness opportunity identification• Consolidating administrative andback-office services in the JV

Digitalization &data capability
Minority

Corporate Functions & IT
OPERATIONS

A fully integrated Technology Master Plan
across CCBJH group for data-driven decisions in the future

UPCOMING MILESTONES
August 2023

January 2024

Announcement

JV incorporation

17

Financial Foundation

Achieving Business Income Target for 2028
Achieve BI target with revenue growth and transformation
Business Income, B JPY+6 pts.

Drivers of Business Income Growth, B JPY

45-50

Business Income
Margin by 2028

5%+

5%+

-2%

-14

~40%

-1%
-5

IMPACT

~60%

2028E

2023E

45-50

IMPACT

2022-5

Revenue, B JPY

+2-3%
CAGR

Revenue Growth
Supporting Earnings

9001,000+2-3% CAGR
807

847

2023E

Commercial
Excellenceincl. Vending
Transformation

Supply Chain
Optimization

2028E

Back-Office and IT
Optimization

Transformation Cost Saving

25-35 B JPY
2022

2023E

2028E

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Financial Foundation

Initiatives to Improve ROIC and Increase Shareholder Value
ROIC Improvement

Shareholder Return

Business Income Margin
Improvement
Commercial initiatives focused on
profitability

Shareholder Value
Improvement

Transformation initiatives aimed atachieving improved profitability

Target of 5%+ ROIC
by 2028
Capital Efficiency
Improvement
Capex: Controlled to levels below
depreciation and be selective (Annual
average 30-35B yen*)
Balance sheet optimization: Improveasset turnover (incl. inventory, fixed
assets)Optimize leverage: Under consideration
with stable credit ratings*Capex not including IFRS16 non cash items.

Achieve ROIC through improved
capital efficiency contributing
to PBR improvement

Basic policy is to actively return
profits to shareholders, with a targetof 30% payout ratio. Placing highpriority on stable dividend payments
Further initiatives to improveshareholder value underconsideration

Sustainable Growth
Improve Corporate and Shareholder Value
19

ESG

ESG Initiatives to Create a Sustainable Business
TargetResults*2

Scope 1, 2

-50%

-20%

Scope 3

-30%

-25%

Major Initiatives

GHG Emission*1
RESOURCECOMMUNITY(2030)

Water
Replenishment

200%# of Participants ofCommunity
Program

1,000K

Female Manager
Ratio

20%

(2025)*1. Target of GHG is vs 2015 *2. Results are as of December 2022

910K

(2025)

6.6%(2030)

DE & I
LGBTQ+

420%-

Active education to
Stakeholders

20Key KPI

Key Metrics and Picture of Success for 2028
TARGET FOR 2028
REVENUE+2-3% CAGR

Revenue growth above
volume growth

VOLUME+0.5-1% CAGR

Growth aligned with profitabilityfocused commercial strategy

BUSINESSINCOME5%+ margin45-50 B JPY

Aiming for sustainable profit growth.
Return to profitability by 2024

25-35 B JPY

Transformation acrossthe company

5%+

Improved profitability andcapital efficiency

Stable dividends focus

Consider flexible shareholder
value initiatives

TRANSFORMATIONSAVINGSROIC
SHAREHOLDER
RETURN＊Growth target compared to 2023 forecast
announced in Feb 2023

21

Roadmap for Growth

Returning to a Growth Trajectory and Achieving Sustainable Growth

2019 - 2023
Driving transformation in achallenging businessenvironment
Responding to unprecedented
circumstances with agile management
decisions
Accelerating transformation costsavings and building a resilientbusiness foundation
Strengthen earnings foundation withprice revisions

2024 - 2028
Profitable growth and build cost structure
resilient to change

2029 Accelerate growth

ROIC above WACC
Profitability-focused commercial strategy
Supply Chain Optimization

Operation Process Optimization
Financial strategies with ROIC focus
Strengthen ESG and human capital management

Promote digitalization✓ Realize growth on the foundation built✓ Built foundation for growth✓ Achieve historical high business income in 2028

✓ Drive further transformation

Enhanced shareholder
return initiatives,
including enhanced
payout ratio
Strong businessfoundation of sustainablegrowth22

THANK YOU
Investor Relations
Coca-Cola Bottlers Japan Holdings Inc.
ir@ccbji.co.jp
https://en.ccbj-holdings.com/ir/

Forward-looking Statements
The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the managementof Coca-Cola Bottlers Japan Holdings Inc. (CCBJH or Company) in view of data obtained as of the date this material was released. These
forecasts may differ materially from actual performance due to risks and uncertain factors such as those listed below.
Risks and uncertain factors are not limited to the items listed below. They are also included in our annual securities report, or “Yuka Shoken
Houkokusho”.

• Agreements with The Coca-Cola Company and Coca-Cola (Japan) Company Limited.
• The quality and safety of products• Market competition• Natural environment, such as climate, disaster, water resources, etc.
• Legal environment• Leakage or loss of information• Change of economic conditions, such as personal consumption, currency exchange rates, prices of raw materials, fair value of assets, etc.
• Business integration, streamlining and optimization of business processes, etc.
• Uncertain factors other than those above
The information in this presentation is provided for informational purposes and should not be construed as a solicitation of an investment inour securities.
CCBJH undertakes no duty to update any statement in light of new information or future events. You should rely on your own independent
examination of us before investing in any securities issued by our company.
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