This is an English translation of the original Annual Securities Report (“Kukushkin Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Annual Securities Report(Report Pursuant to Article 24, Paragraph 1 of the Financial
Instruments and Exchange Act)
Fiscal Year
From January 1, 2022
(65th Fiscal Term)to December 31, 2022

Coca-Cola Bottlers Japan Holdings Inc.
（Formerly Coca-Cola Bottlers Japan Inc.）(E00417）

This is an English translation of the original Annual Securities Report (“Kukushkin Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Table of Contents[Cover Page]

Part I. Corporate Information .................................................................................................................................................................... 2
I. Overview ............................................................................................................................................................................................ 2
1. Summary of business results ............................................................................................................................................................. 2
2. History ............................................................................................................................................................................................... 5
3. Description of business...................................................................................................................................................................... 6
4. Information on affiliates .................................................................................................................................................................... 8
5. Employees ....................................................................................................................................................................................... 10
II. Business overview .......................................................................................................................................................................... 11
1. Management policy, management environment and issues to be addressed .................................................................................... 11
2. Risk factors...................................................................................................................................................................................... 13
3. Management's analysis of financial condition, results of operations and cash flows ....................................................................... 16
4. Important agreements for business .................................................................................................................................................. 22
5. Research and development activities ............................................................................................................................................... 22
III. Information about facilities ........................................................................................................................................................... 23
1. Overview of capital expenditures .................................................................................................................................................... 23
2. Major facilities ................................................................................................................................................................................ 23
3. Planned additions, retirements of facilities ...................................................................................................................................... 24
IV. Information about reportable segment ........................................................................................................................................... 25
1. Information about shares ................................................................................................................................................................. 25(1) Total number of shares ........................................................................................................................................................... 25(2) Share acquisition rights .......................................................................................................................................................... 25(3) Exercises of moving strike convertible bonds ........................................................................................................................ 26(4) Changes in number of issued shares, stated capital ................................................................................................................ 26(5) Shareholding by shareholder category ................................................................................................................................... 26(6) Major shareholders................................................................................................................................................................. 27(7) Voting rights ........................................................................................................................................................................... 28(8) Details of executive and employee share ownership schemes ............................................................................................... 28
2. Acquisition of treasury stock ........................................................................................................................................................... 29(1) Acquisitions by resolution of shareholders’ meeting .............................................................................................................. 29(2) Acquisitions by resolution of board of directors’ meeting...................................................................................................... 29(3) Acquisitions not based on resolution of shareholders’ meeting or the resolution of board of directors’ meeting ................... 29(4) Disposals and holding of acquired treasury stock .................................................................................................................. 29
3. Dividend policy ............................................................................................................................................................................... 30
4. Corporate governance...................................................................................................................................................................... 31(1) Explanation about corporate governance ............................................................................................................................... 31(2) Information about officers...................................................................................................................................................... 39(3) Audit Status ............................................................................................................................................................................ 45(4) Officer compensation, etc. ..................................................................................................................................................... 47(5) The Company's shareholding status ....................................................................................................................................... 53
V. Accounting information .................................................................................................................................................................. 58
1. Consolidated financial statements ................................................................................................................................................... 59(1) Consolidated financial statements .......................................................................................................................................... 59(2) Other information ................................................................................................................................................................ 126

This is an English translation of the original Annual Securities Report (“Kukushkin Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

2. Financial Statements (Non-consolidated) ...................................................................................................................................... 127(1) Financial statements (Non-consolidated) ............................................................................................................................. 127(2) Components of major assets and liabilities .......................................................................................................................... 138(3) Other information ................................................................................................................................................................ 138
Ⅵ. Overview of operational procedures for shares ........................................................................................................................... 139
Ⅶ. Reference information about the Company ................................................................................................................................ 140
1. Information about parent company of reportable segment ............................................................................................................ 140
2. Other reference information .......................................................................................................................................................... 140
Part Ⅱ. Information about company which provides guarantee to reportable segment .......................................................................... 141

This is an English translation of the original Annual Securities Report (“Kukushkin Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

[Cover Page]

Securities Report[Underlying article]

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

Director-General of the Kanto Local Finance Bureau[Submission date]

March 29, 2023

[Fiscal year]

65th fiscal term (from January 1, 2022 to December 31, 2022)[Company name]Coca-Cola Bottlers Japan Holdings Inc.

[Name and position of representative]

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

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

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

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

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

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of
the Kanto Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments
and Exchange Act of Japan. In the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken
Hokokusyo shall prevail.
The Independent Auditor`s report that is included in Yukashoken Hokokusho is not translated to English. Therefore, it is not included inthis English translation.
For the purpose of this Annual Securities Report, unless context indicates otherwise, the “Company”, “we”, and “CCBJH” refer to CocaCola Bottlers Japan Holdings Inc., and the “Group” refers to the Company and its subsidiaries.

1This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Part I. Corporate Information
I. Overview
1. Summary of business results(1) Business results of the GroupInternational Financial Reporting Standards
Fiscal term
Fiscal year-end

61st

62nd

63rd

64th

65th

December 2018

December 2019

December 2020

December 2021

December 2022

Revenue(Millions of yen)

927,307890,009791,956

785,837

807,430

Income (Loss) for the year before
income tax(Millions of yen)

14,767(58,922)(12,065)(21,683)(12,491)(Millions of yen)

10,117(57,952)(4,715)(2,503)(8,070)(Millions of yen)

3,152

(52,164)(2,214)780(5,005)Equity attributable to owners of theparent(Millions of yen)

580,448505,999

501,643492,320476,216

Total assets(Millions of yen)

877,472

952,444939,603

867,111826,737(Yen)

3,163.63

2,821.27

2,797.03

2,745.12

2,655.38

Earnings per share

(Yen)

52.68

(322.22)(26.29)(13.96)(45.00)

Diluted earnings per share

(Yen)

－

－

－

－

－

Ratio of equity attributable to ownersof the parent

(%)

66.2

53.1

53.4

56.8

57.6

(%)

1.6

(10.7)

(0.9)

(0.5)

(1.7)

(Times)

62.4

(8.7)

(61.2)(94.6)(31.9)Cash flows from operating activities(Millions of yen)

51,244

42,62943,71635,982

42,717

Cash flows from investing activities(Millions of yen)

(48,628)(68,308)(52,076)

15,271(23,090)

Cash flows from financing activities(Millions of yen)

(55,835)

73,994

20,912(67,134)(46,050)(Millions of yen)

65,510113,825

126,378

110,497

84,074

17,10016,95916,27415,083

14,484[3,957][3,578][4,008][3,777][3,416]

Net income (loss) attributable toowners of the parent
Comprehensive income(loss)
attributable to owners of the parent

Equity attributable to owners of theparent per share

Ratio of income to equity attributableof the parent
PER

Cash and cash equivalents at the endof the year
Number of the employees[Average number of temporary
workers](People)(NOTE) 1. Diluted net income per share through 63rd fiscal years are not shown in the above table, as there are no residual
shares. Diluted earnings per share is not presented, as the effects of dilutive stock on earnings per share are antidilutive in the 64th and 65th fiscal year.
2. The consolidated financial statements are disclosed in accordance with the International Financial ReportingStandards ("IFRS").
3. Figures are rounded to the nearest million yen.
4. In the fiscal year ended 31 December 2020, the businesses of Q’sai and its subsidiaries were classified as discontinued
operations as a result of the decision made in December 2020 to sell all shares in Q’sai Co. Ltd. held by the Company.
Accordingly, the Revenue and the Profit before income tax for the 63rd fiscal year have been reclassified to theamounts for continuing operations excluding discontinued operations. Refer to “V. Financial information, 1.
Consolidated financial statements, (1) Notes to consolidated financial statements, 9. Discontinued operations” for thereclassified amounts of the Revenue and Profit before income tax of the discontinued operations.
2This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Japanese GAAP

Fiscal term

61st

Fiscal year-end

December 2018

Sales revenue(Millions of yen)

968,439

Recurring income(Millions of yen)

26,011

Net profit attributable to owners(Millions of yen)of the parent

10,948Comprehensive income(Millions of yen)440

Net assets(Millions of yen)

550,775

Total assets(Millions of yen)

833,915

Net assets per share(Yen)

2,999.40

Net profit per share

(Yen)

57.01

Diluted earnings per share

(Yen)

－

Ratio of equity to asset

(%)

66.0

Ratio of return on equity

(%)

1.9

(Times)57.6(Millions of yen)

50,768Cash flows from investing
activities(Millions of yen)

(48,621)

Cash flows from financing
activities(Millions of yen)

(55,366)(Millions of yen)

65,510Price-earnings ratio
Cash flows from operating
activities

Cash and cash equivalents are
the beginning of the year
Number of the employees[Average number of temporary

17,100(People)[3,957]

workers](NOTE)

1. Diluted earnings per share is not disclosed because there are no residual shares.
2. The figures for the 61st fiscal year under Japanese GAAP have not been subjected to an audit which is required inaccordance with the provisions of Article 193-2, Paragraph 1 of the Financial Instrument and Exchange Act.
3. Figures are rounded to the nearest million yen.

3

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) Management indicators of the Company
Fiscal term
Fiscal year-end
Operating revenue
Recurring income

61st

62nd

63rd

64th

December 2018 December 2019 December 2020 December 2021 December 2022

(Millions ofyen)(Millions ofyen)

10,37526,517

19,202

5,224

20,273

14,345

Net income(Millions of
yen)

4,395

20,702

15,742

Capital stock(Millions ofyen)

15,232

15,232

15,232

206,269

206,269

206,269

332,507

331,139

342,391(Millions ofyen)

478,484

549,683

587,306(Yen)

1,812.27

1,846.32

1,909.09

50.00

50.00

25.00

(25.00)(25.00)(－)

Total number ofissued shares
Net assets
Total assets
Net assets per share(Thousands ofshares)(Millions ofyen)

Dividends paid per
share(Interim dividends
paid per share)(Yen)

Net profit per share

(Yen)

22.89

115.11

87.77

(Yen)

－

－

－

(%)

69.5

60.2

58.3

(%)

1.2

6.2

4.7

Price-earnings ratio(Times)

143.5

24.2

18.3

Dividend payout ratio

(%)

218.4

43.4

28.5

－

－

－

[－]

[－]

(%)

81.0

(%)

Diluted earnings per
share
Ratio of equity to
asset
Ratio of return on
equityNumber of theemployees[Average number of
temporary workers]
Total Shareholder
Return[Comparative index:
TOPIX Net Total
Return Index]
Highest stock price
Lowest stock price

65th

5,797

5,640

1,201

1,869

18,395

1,562

15,232

15,232

206,269

206,269

351,812344,402543,410

502,941

1,961.66

1,920.38

50.00

50.00

(25.00)25.00

102.578.71

102.33

8.68

64.7

68.5

5.3

0.4

12.9

164.9

48.7

573.9

－

－

[－]

[－]

[－]

70.3

42.1

36.3

40.4

[84.0][99.2][106.6][120.2][117.2]

(Yen)

4,815

3,490

3,070

2,131

1,655

(Yen)

2,793

2,157

1,462

1,236

1,311

(People)(NOTE)
1. Diluted net income per share through 63rd fiscal years are not shown in the above table, as there are no residual shares.
2. The figures of less than one million yen have been rounded off to the nearest million yen.
3. The number of employees has been omitted since we are holding company.
4. The highest and lowest stock prices are from Tokyo Stock Exchange Prime Market since April 4th,2022.
5. The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others were applied
from the beginning of the 65th fiscal year. There is no impact on key management indicators for the 65th term.

4This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

2. History
Month and Year
Dec. 1960
Jul. 1961

Summary
Nichibei Inryo Co., Ltd. established with 50 million yen in capital at 1-5 Nagahama-cho, Fukuoka City for manufacture and sale of softdrinksHeadquarters move to 92 Tenjin-cho, Fukuoka City

Jun. 1962

Agreement on the manufacture and sale of Coca-Cola and Fanta concluded with The Coca-Cola Company and the Coca-Cola (Japan)
Company, Limited. granting the right to manufacture and sell Coca-Cola and Fanta in Fukuoka, Saga, and Nagasaki Prefectures

Jul. 1962

Began sales

Mar. 1963

Corporate name changed to Nichibei Coca-Cola Bottling Co., Ltd.

Apr. 1963

Headquarters move to 4127-29 Aza Ashitsugaura, Ohaza Hakozaki, Fukuoka City (now 7-9-66, Hakozaki, Higashi-ku, Fukuoka City)

Sep. 1972

Amended the previous agreements with The Coca-Cola Company and the Coca-Cola (Japan) Company, Limited and newly concluded alicense agreement with the Coca-Cola (Japan) Co., Ltd.

Jul. 1973

Corporate name changed to Kitakyushu Coca-Cola Bottling Co., Ltd.

Jun. 1994

Listed on the Fukuoka Stock Exchange

Nov. 1996

Listed on the second section of Tokyo Stock Exchange

Jun. 1998

Listed on the first section of the Tokyo Stock ExchangeFeb. 1999

Kitakyushu Coca-Cola Sales Co., Ltd. establishedJun. 1999

Some business transferred to Kitakyushu Coca-Cola Sales Co., Ltd.

Jul. 1999

Consolidated with Sanyo Coca-Cola Bottling Co., Ltd. and corporate name changed to Coca-Cola West Japan Co., Ltd.
With the consolidation, Sanyo Coca-Cola Bottling’s subsidiary Sanyo Coca-Cola Sales Co., Ltd. became a subsidiary of the Company
Listed on the first section of Osaka Securities Exchange and Hiroshima Stock Exchange

Apr. 2001

Acquired Mikasa Coca-Cola Bottling Co., Ltd. stock, making it a subsidiary

Feb. 2002

West Japan Products Co., Ltd. (later Coca-Cola West Japan Products, Co., Ltd.) established.

Apr. 2002

Some business transferred to Coca-Cola West Japan Products Co., Ltd. (now Coca-Cola West Products, Co., Ltd.)
Merged with both Sanyo Coca-Cola Sales Co., Ltd. and Kitakyushu Coca-Cola Sales Co., Ltd.

Jul. 2002

Four subsidiaries running vending business integrated to establish Nishinihon Beverage Co., Ltd. (made defunct through merger dated
January 1, 2010)
Amended the previous agreement with Coca-Cola (Japan) Company, Limited, and newly concluded a bottler’s agreement with
The Coca-Cola Company and Coca-Cola (Japan) Company, Limited.

Oct. 2002
Jan. 2005

Amended the previous agreements with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited, and newly concluded amanufacturing agreement and a distributorship agreement with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited.

Jul. 2006

Corporate name changed to Coca-Cola West Holdings Co., Ltd. and performed a demerger in which rights related to the sales of beverages
and food products were succeeded by the newly established Coca-Cola West Japan Co., Ltd.
Implemented share exchange making Kinki Coca-Cola Bottling Co., Ltd. a wholly-owned subsidiary
With the share exchange, Kinki Coca-Cola Bottling’s subsidiary Kansai Beverage Service Co., Ltd. (later Nishinihon Beverage Co., Ltd.)
became a subsidiary of the Company

Apr. 2007

Invested in Minami Kyushu Coca-Cola Bottling Co., Ltd., and made it an equity-method affiliate

Jan. 2008
Apr. 2008
Jan. 2009

Oct. 2010
Apr. 2013

Integrated two subsidiaries running manufacturing business to establish Coca-Cola West Products Co., Ltd.
Integrated subsidiaries running sales equipment service business to establish Coca-Cola West Equipment Service Co., Ltd.
Merged with Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd. and changed
the corporate name to Coca-Cola West Company, Limited
Amended the previous agreements with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited, and newly concluded abottler’s agreement with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited.
Reorganized three subsidiaries running sales to establish West Vending Co., Ltd. (later Coca-Cola Bottlers Japan Vending Inc.),
Nishinihon Beverage Co., Ltd. and Coca-Cola West Retail Service Co., Ltd. (Coca-Cola Bottlers Japan Business Services Inc.)
Acquired Q’SAI CO., LTD. stock, making it a wholly-owned subsidiary
Implemented share exchange making Minami Kyushu Coca-Cola Bottling Co., Ltd. a wholly-owned subsidiaryJan. 2014

Merged with Minami Kyushu Coca-Cola Bottling Co., Ltd.

Jan. 2010

May. 2015

Acquired Shikoku Coca-Cola Bottling Co., Ltd. stock, making it a subsidiary

Apr. 2017

Implemented share exchange making Coca-Cola East Japan Co., Ltd. later Coca-Cola Bottlers Japan Inc.a wholly-owned subsidiary
Company name changed to Coca-Cola Bottlers Japan Inc.
In order to transition to a holding company structure, an absorption-type split was conducted in which businesses other than the GroupManagement Business and the Asset Management Business were transferred to New CCW Establishment Preparation Co., Ltd..
Corporate name changed to Coca-Cola Bottlers Japan Holdings Inc.
Transferred all shares of Q’sai.CO., LTD.

Jan. 2018
Feb. 2021

5

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

3. Description of business
The Group’s corporate group consists of the Company, 9 subsidiaries, one affiliate with Beverage business as its primary operations.
In addition, The Coca-Cola Company is an affiliated company. The following diagram sets out the positioning and business of eachcompany in the Coca-Cola Bottlers Japan Holdings Group’s (the “Group”) principal business activities. Business categories
correspond to segment categories.
Please note that the Company is a specified listed company as defined in Article 49, Paragraph 2 of the Cabinet Office Order on
Restrictions on Securities Transactions. Thus, the criteria for assessing the material facts under the insider trading regulations are
determined based on consolidated figures.
Beverage business(Manufacture and sale of Coca-Cola and beverages)
a. Sales of beverages
Coca-Cola Bottlers Japan Inc., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Coca-Cola Bottlers Japan
Business Services Inc., etc.
b. Manufacture of beverages
Production of beverages is engaged by Coca-Cola Bottlers Japan Inc.,(Business related to vending machines)
It is engaged by Coca-Cola Bottlers Japan Inc., etc.
(Procurement of ingredients and materials)
It is engaged by Coca-Cola Bottlers Japan Inc.
(Development, maintenance, and operations of information systems)
They are engaged by Coca-Cola Bottlers Japan Inc.
Note that The Coca-Cola Company engages in sales of beverages (including beverage base).

6This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Business Flow Diagram)
The matters described above are shown in the business flow diagram below.

7This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

4. Information on affiliates(1) Consolidated Subsidiaries
Name

Address

Commonstock(millions ofyen)

Coca-Cola Bottlers Japan
Inc.
(Note) 2,3

Minato-ku,
Tokyo

100

Manufacture and saleof beverages and
foods

100.0

Interlocking directorate: yes
Leasing of facilities: yes

Coca-Cola Bottlers Japan
Vending Inc.
(Note) 1

Minato-ku,
Tokyo

80

Operation of vending
machines

100.0(100.0)――――FV Japan Co., Ltd.
(Note) 1

Toshima-ku,
Tokyo

100

Sale of beverages
and foods

100.0(100.0)――――Coca-Cola Bottlers Japan
Business Services Inc.
(Note) 1

Minato-ku,
Tokyo

80

On-siteadministration
related with sales ofbeverage/food

100.0(100.0)――――Principal businesses% of voting
rights interests

Relation

Other 5 companies(Notes)1.
2.
3.

The figures in parentheses for the % of voting rights interests column indicates the % of indirect voting interests, which is apart of the total voting interest.
It applicable to significant subsidiaries.
As for Coca-Cola Bottlers Japan Inc., the proportion of net sales (excluding internal sales among consolidated companies) toconsolidated sales exceeds 10%.
Major income statement information.
(1) Net revenues
768,594 million yen(JGAAP)(2) Recurring income(loss)(12,277) million yen(3) Net income(loss)(4,608) million yen(4) Net assets
406,655 million yen(5) Total assets
663,024 million yen

8This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) Equity Method Affiliates
Name

Address

Commonstock(millions ofyen)

Resources Co., Ltd.
(Note)

Takamatsu-shi,
Kagawa40

Principal
businesses
Vending
machine-related
business% of voting rights
interests

Relation

44.0(44.0)――――(Note)
The figures in parentheses for the % of voting rights interests column indicates the % of indirect voting interests, which is a partof the total voting interest.
(3) Other Affiliated Companies
Name

Address

The Coca-Cola Company(Note) 1, 2AtlantaGeorgia
U.S.A% of voting rights
Common stock(millions of Principal businesses interests in the
Relationdollars
Company（％）
Sales ofbeverages
18.88
1,760
Interlocking directorate: yes(including(18.88)concentrate)(Note)
1. The figures in parentheses for the % of voting rights owned are indirect ownership percentage.
2.
“Yukashoken Todokedesho” (Securities Registration Statement) or “Yukashoken Hokokusho” (Annual Securities
Report) has been submitted.

9This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act ofJapan. In the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

5. Employees(1) Consolidated Basis
As of December 31, 2022
Segment

Number of employees

Beverage businessTotal

14,484[3,416]

14,484[3,416](Notes)1. The number of employees excludes employees seconded from the Group to outside the Group and includes employees who areseconded from outside the Group to the Group and the number of temporary employees is shown separately in parentheses as
the average number over one year.
2. Temporary employees include part-timers and casual workers, but not workers dispatched by staffing companies.
(2) Parent-alone Basis
Descriptions are omitted because the Company is a holding company(3) Labor Unions
The Group has the Coca-Cola Bottlers Japan Group East Labor Union and the Coca-Cola Bottlers Japan Group West Labor
Union, in addition to labor unions formed in certain subsidiaries, and the total number of members of the labor unions was
12,693 as of December 31, 2022. The Labor Union-management relations have remained cordial.

10This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act ofJapan. In the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

II. Business overview
1. Management policy, management environment and issues to be addressed(1) Fundamental Management Policy of The Company
CCBJH Group has established its corporate philosophy “Mission,” “Vision” and “Values” summarized as “Paint it RED!”.
As our Mission states, we will “deliver happy moments to everyone while creating values" through our business.
As our Vision, we depict an ideal status that leads us to the Mission.
・ We are the preferred partner for our customers
・ We win in the market through sustainable growth・ We lead a learning culture with commitment to grow・ We are the best place to work with pride for Coca-Cola
In order to realize the Mission and Vision, we defined four Values that we must always keep in mind and respect in ourdaily activities
・Learning
・Agility
・Result-orientation
・Integrity
We aim to achieve sustainable growth through our day-to-day business based on Mission, Vision and Values.

(2) Main targets
The future beverage market and business environment are expected to remain uncertain due to increasing prices ofcommodity and utility as well as the impact of exchange rate fluctuations. In order to cope with the worsening profitability
due to such cost pressures, we will take the following actions.


Implementing price revisions

Sales activities focused on profitability and investment efficiency

Reduce costs and strengthen business foundation

11

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act ofJapan. In the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(3) Issues to be addressed by the Company
Regarding the outlook for the overall domestic NARTD beverage market, as the transition to a new phase of post-COVID
progresses, although the increase in traffic and revitalization economic activity will lead to an increase in demand forbeverages, the market trend is expected to be impacted by decline in consumer sentiment due to continuing impact ofdomestic inflation, beverage price revisions and the cycling of the heat wave in the previous year is expected to have an
impact. Additionally, continued volatility in the commodity, forex, and utility is expected, which will make it a challenging
environment for profitability.
Under these circumstances, in 2023, we will prioritize improving profitability. As part of this, in order to respond to cost
increases caused by external factors and to strengthen our earnings foundation base, we will revise the prices of someproducts, such as can and large PET, effective from May 1 shipment. In addition, we will work to thoroughly implement a
sales strategy that emphasizes profitability and investment efficiency and promote further transformation to realize stable
and low-cost operations.
In the commercial area, in order to steadily recover sales revenue and establish a profit structure to achieve sustainablegrowth, we will work top priority to improving the price per case through an appropriate pricing strategy centered on theimplementation of price revisions. Regarding sales volume, although we expect the negative impact on sales volume byprice revision, we will implement strategies focusing on core categories, expand our product portfolio based on innovation,and implement marketing investments that emphasize effectiveness and efficiency. Regarding our important vending channel,
we will work by developing new locations that emphasize investment efficiency and by utilizing digital platforms such as
the smartphone app “Coke ON”. In the over-the-counter channel, we will actively develop new products, expand sales floors,
implement appropriate pricing and marketing strategies, and strengthen customer engagement. Furthermore, we willcontinue to strengthen our partnership with Coca-Cola (Japan) Co., Ltd.
In the supply chain area, we will work to build a supply chain network that realizes high quality, low cost, and stable supply.
In addition to focusing on stable operation of the S&OP process that was revamped in 2022, we will further strengthen thecooperation between the commercial (planning / sales) and the supply chain to work on the timely and low-cost supply of
products in line with changes in the environment. In terms of manufacturing, we will work to improve manufacturing
capacity by operating a new manufacturing line at the Ebina Plant, promote efficiency in manufacturing processes, and build
a flexible manufacturing system. In terms of logistics, we will work to optimize the logistics network through the stable
operation at "Akashi Mega DC" which started operation in 2022, consolidation of sales centers and the reduction and optimal
distribution of product inventory. In 2023, procurement costs are expected to continue to increase significantly due to soaring
prices of commodity and utility, fluctuations in exchange rates, we will strive to mitigate the impact of cost increases
throughout the value chain by implementing all improvement activities centered on stable and low-cost operations.
As the foundation of the entire business, we aim to further accelerate the standardization of business processes and theefficiency improvement by digital transformation (DX), and to establish a robust cost structure that can counteract thechanging environment with agility. We will also focus on improving our balance sheet from the perspective of appropriate
management of capital. Additionally, we will implement a people strategy based on our company’s “Mission, Vision andValues”, we will continue to promote activities to realize ESG targets based on creating shared value, with society such as
initiatives aiming for a zero-waste society, reducing greenhouse gas (GHG) emissions, and activities that contribute to local
communities through business.

12This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

2. Risk factors
This section outlines the major risks identified by the management as having the potential to have significant negative impact
on the financial conditions, business performance and cash flow of the consolidated companies.
The future-outlook and assumptions described in this section are those determined by the CCBJH Group as of the date ofsubmission of the Securities Report.
(1) Risk management structure of the CCBJH GroupThe CCBJH Group has implemented an overarching business resilience program that integrates the way in which we
manage risk and opportunity to enable profitable growth; protect our people and assets; enhance our capabilities to respondin a crisis; and the way we use insurance to respond to certain risks.
The program encompasses our enterprise risk management (ERM), crisis response, security, business continuity andinsurance strategies and is led by the Head of Risk Management (HRM). Our ERM PDCA framework is based on COSO andISO31000 and provides a framework to drive profitable growth by leveraging opportunities and promoting appropriate riskbased decision-making, as well as fostering strong capabilities in the identification and response to foreseeable risks. The
HRM is tasked with maintaining a wide-angled view of all business streams for emergent risks and opportunities and, throughregular reporting, ensures that risk visibility is provided to the Executive and our Board. The ERM team works in close
collaboration with the risk owners across functions in assessing and managing business risks.
The Board retains overall accountability and responsibility for our risk management and internal control systems, and has
defined the Group’s risk appetite, and, through the Audit and Supervisory Committee, reviews the effectiveness of thesesystems. During the year, the Board was provided full visibility of and actively considered our reportable risks, which arethose risks that have the potential to impact the ability of the Group to achieve its strategic objectives.
During this fiscal year, we continued to focus on increasing the involvement of management in the ERM processes.
Functional risk review sessions were held with senior leaders across the business with risk interviews conducted with themembers of the leadership team. The team also collaborated with Coca-Cola system stakeholders to build a structure thatstrengthens the risk management process by also considering the major risks affecting the entire Coca-Cola system.
The identified risks are assessed from the perspective of the level of impact and the likelihood of occurrence. The majorrisks and opportunities to the business were determined through discussion and evaluation by the Executive Leadership Team
Under the leadership of the executive team, risk owners are assigned to the risks and the actions to be taken to address theserisks are finalized.
The ERM program incorporates a variety of processes which include alignment to our business strategies, objectives andprinciples; integration in our Group statements on strategic direction, ethics and values; integration into the business planning
cycle; continual monitoring of our internal and external environment for factors that may change our risk profile and create
opportunities; establishment of training to increase risk management knowledge across all functions to develop informed
risk-taking leaders; and an annual evaluation of the type and amount of insurance purchased to ensure adequate financial
protection is in place.
Our ERM activities include monthly risk discussions by the executive leadership team to identify risks to our operational
plans with a formal process, to identify the broader risks and opportunities, being conducted annually. These regular
discussions and the formal cyclic process provide CCBJH with the opportunity to grasp the latest risk trends and review the
major risks. To realize the Group's growth strategy, the actions to address the major risks are incorporated into the annual
business plan of each function. The ERM process is subject to internal audit against global best practices with the Head ofAudit making improvement recommendations as required.

13

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) Major risks
The major risks that may have a material impact on the CCBJH Group’s financial condition, business performance and cash
flow are listed in the table below priority order. During the year commodity pricing and people talent have emerged as key risks
driven by changes to the operational and macro environments. Additionally, risks associated with climate change continual toevolve and are in focus by the Group. The risks listed in this table do not necessarily cover all the risks to the business and we
may be affected in the future by new and unexpected risks or other risks that are currently considered less important or of a lower
operational priority.
Risk category
Commodity
Pricing

Description and Potential Impacts
Risk of procurement costs increasing due to, such as,
fluctuations in exchange rates, raw material shortages,
and commodity prices.

Key mitigations
 Mitigate the impact of exchange rate and product price fluctuations
through the uses of derivative transactions
 Procure raw materials at lower costs through collective multi systemcompany purchases leveraging Coca-Cola system Increased cost base Reduced product supply
 Limitations to product portfolio
Macroeconomic

Risk of volatile and challenging macro-economic
conditions caused by key global events including
conflict, inflation, and foreign currency fluctuations.
 Deterioration of financial conditions
 Reduced consumption spending Changes in consumer spending patterns

Cyber Security
and System
Availability

Risk of business activities being suspended, andconfidential information leaking caused by system
failures or cyber incidents
 Losing trust from consumers and customers
 Deterioration of financial conditions

Changing
Consumer
MindsetPeople Talent(Attraction andRetention)

Risk of changes in consumer preferences caused by
COVID19, growing concerns over sugar consumption
and increased health awareness Acquisition or loss of consumer base Winning or losing trust from consumer
 Discriminatory taxation
Risk of not being able to secure, retain and develop
enough human resources and build constructive
relationships with labor unions due to poor businessperformanceandacompetitive
employment
environment.
 Slowdown or suspension of business activities
 Slowdown or suspension of supply chain operations
 Inability to achieve growth plans

NaturalDisasters

Evolving
Commercial andCompetitive
Landscape

Risk of death and injury of employees and damage tobusiness facilities for production, logistics and sales
operations caused by severe natural disasters, such as,
earthquakes and floods
 Slowdown or suspension of business activities
 Slowdown or suspension of supply chain operations
 Reduced sales opportunities
 Additional costs required for recovery
Risk of changes in the retail market environment led bya surge in online ordering and a change in spending
behavior driven by the external macro environment.
 Acquisition or loss of consumer base Winning or losing trust from consumers
 Reduced sales profit
 Reduced portfolio availability

GrowthStrategies

Risk of failing to implement measures to improve ourcompetitive advantage and grow the business (such as,
through business integration, capital investments,
product development, etc.).
 Deterioration of financial conditions caused by loss due
to impairment
 Losing trust from shareholders

14 Enhanced strategic and operational risk identification enabling thegroup to grasp the changes in macroeconomic landscape more
quickly and prepare better for the future by improving the ability to
predict the future demand and trends more accurately
 Monitoring and responding to changes in status to customers’
business operations
 Strong crisis response practices that focus on employee, customer
and consumer safety
 Prepare the response plans to mitigate the damages caused bysystem failures (such as, by setting up backup sites overseas) Improving and strengthening system security by proactive threat
identification and conducting simulation tests of cyberattacks
 Complying with laws and regulations on information management
 Establishing internal regulations related to information security
supported by related employee training programs
 Develop and maintain a system workforce with the ability to respondto cyber incidents
 Focus on product innovation and portfolio expansion
 Strengthen range of low and no calorie beverages.
 Diversification in pack sizes Promote active lifestyles through consumer engagement program Implement strategic people development plans and develop a newsalary payment structure Recruit diverse talent and commitment to people development（including overseas）
 Implement unmanned plant operations, online transactions, andoutsourcing of shipping operations
 Enhance the workplace environment to improve employee
satisfaction
 Strengthen communication between top management andemployees
 Strong Business Continuity Plan (BCP) and crisis response
capabilities enabling structured and streamlined responses
 Regular crisis and disaster response training and simulations
 Identified alternative shipping locations and secure transportation
capacity in preparation for a disaster that damages the logistics
centers
 Secure earthquake coverage
 Redesign of DCHQ model to enable enhanced regional response andspeed of response Enhancing the product portfolio and accelerated productivity
further to deliver products that meet the needs of the retailers
 Enhancing Right Execution Daily (RED) to drive operational
excellence Expanding the online channels to respond to the surge in Internet
mail orders

 Building a robust system that enables the group to respond readily
and flexibly to various circumstances Formulate business integration strategies that take multiple
scenarios into consideration
 Supervision by Board of Directors and Executive Officers

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.
Risk category
Financial Risks

Description and Potential Impacts
Risk of deterioration in financial conditions cause by anincrease in funding costs and retirement benefit
obligations.

Key mitigations
 Promote growth of cash flow through sales activities to maintain andimprove creditworthiness Establish Pension Governance Committee to strengthen themonitoring function of retirement benefit obligations

 Increased cost base Loss of stakeholder trust
Sustainability

Quality andFood Safety

Regulatory
Compliance andEthicsRisk of increased stakeholder concerns caused by the
consumers’ negative sentiment over the use of plastics
and the toughening of government regulations onplastics.
 Acquisition or loss of consumer base Winning or losing trust from shareholders
 Increase of costs for responding to environmental andsocial issues
Discriminatory Taxation
The risk of product related quality and food safetyincidents.
 Losing trust from consumers
 Decline in earnings due to product recall or massdisposal of defective products
 Loss of opportunities due to customer penalties
Risk of violations of laws, internal regulations, and ourcode of ethical conducts.
 Loss of customer and consumer trust Damage to brand and corporate reputation
 Regulatory penalties
 Economic loss through fraud

Manufacturing,
Logistics &Infrastructure

Risk of the stable supply of goods being impeded due toissues in production and logistics operations, or changes
in weather and consumer behaviors
 Drop in sales volume and revenue
 Losing trust from customers

Climate Change

Risk of raw material shortages including water andagricultural products or operational impacts due toadverse weather associated with climate change.
 Reduced commodity availability and product supply Increase of production costs
 Limitations to product portfolio Impact to operations (e.g. damage to facilities)
 Discriminatory taxation

Health and
SafetyThe risk of serious work-related health and safetyincidents (i.e. serious injury or death) includingtransportation accidents.

 Achieving CSV goals contributing to the development of asustainable society
 "World Without Waste" initiatives including, increasing the use rateof recycled PET resin, developing more light-weighted packages andcollecting used PET bottles more effectively
 Proactive response in line with ESG and TCFD reporting
requirements.

 Supplier quality audits and quality certifications
 Employee awareness of quality control in all processes frommanufacturing to sales
 Enhance the quality control and reporting system so that
consumer/customer complaints receive a timely response Robust identification and response programs that enable us toquickly and efficiently deal with quality/food safety issues
 Strong Tone from the Top and continued internal communication on
corporate behaviors
 Ethics & Compliance Committee meetings held regularly
 Minimizing employee frau opportunities by rebuilding the businessprocesses, organizational structure and IT systems

 Building a flexible supply system to respond to changes in the market
environment
 Investment in infrastructure (production lines, etc.) that will enable
the group to respond to the increase in demand during the peakseasons more readily
 Systems enhancements to enable timely sharing of inventory status Strengthen supplier management and supervision
 Focus on sustainable procurement.
 Engagement with stakeholders
 Sourcing alternative suppliers, and strengthening the selection of
suppliers and their management by utilizing the performance data
 Adjust the amount of raw materials that are difficult to procure, andshift to other raw materials when necessary Crisis response and business continuity planning Risk engineering in support of insurance coverage Continue ISO45001 (Occupational Health and Safety)
Certification/Internal Audit (Occupational Health and Safety)
strategies.
 Continue implementing mental health survey.

 Death or serious Injury
 Reputation damage
 Prosecution and fines
Franchiserelationships

Risk related to our high dependency on, or changes toour relationship with TCCC and CCJC as trademark
owners in respect to contract / relationship terms andrenewals, concentrate pricing, support for productpromotions.
 Decrease in sales from any suspension in the use of TM
rights and/or decline in product development
capabilities and brand power.
 Increased COGS due to concentrate price.
 Increased sales promotion expenses in event of any
decrease in sales support.

15

 Maintaining and improving cooperative relationships with The
Coca-Cola Company and Coca-Cola (Japan) Company

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

3. Management's analysis of financial condition, results of operations and cash flows
Overview of financial results(1) Overview of Full-Year 2022 Results
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH,” the “Company,” or “we”) have announced full-year results for the
fiscal year (January 1, 2022, to December 31, 2022).
In this fiscal year, the total domestic nonalcoholic ready-to-drink (NARTD) beverage industry volume is estimated to havegrown by 4% versus the previous fiscal year. This was due to demand being supported by recovery in the number of people
returning to the streets of Japan with the easing of COVID restrictions, revitalization of economic activity, and a recordbreaking heat wave contributing to volume growth, while the price revisions implemented by various beverage companies
impacted demand. On the other hand, the business environment remained uncertain and challenging as the severe competitiveenvironment continued and rising commodity and utility prices, as well as the rapid acceleration of the yen's depreciation
impacted business and consumer behaviors.
Under these circumstances, we positioned 2022 as "The year of building a foundation for sustainable growth" and worked
to build a foundation for steady and sustainable growth, as well as promote further transformation. In commercial activities,
we grew sales volume and sales revenue by introducing new products, responding to diversifying consumer needs, andexecuting effective campaigns to capture opportunities for the recovery in traffic. In addition, to respond to current costpressures and to strengthen the earnings foundation for the future, we revised prices for our products ahead of the industry
despite the continued severe competitive environment. For the price revisions, we have carefully negotiated with customers
and made efforts to reflect revised prices as soon as possible, particularly for vending machines. In manufacturing and supply
chain fields, while faced with rising commodity and utility prices, we have built a supply chain that can flexibly respond tosudden changes in demand by revamping our Sales and Operations Planning process and leveraging our Saitama and Akashi
Mega Distribution Centers, two of the largest automated distribution centers in Japan by storage and shipping capacities.
Although we experienced a surge in demand during the summer -the period of peak demand- coinciding with a recovery intraffic and the heat wave, our efforts resulted in a stable supply of products. We also worked to reduce costs through efficientuse of manufacturing facilities and reviewing our distribution network.
We are realizing ESG targets that are based on creating shared value with society. To achieve our 2030 Package Vision,
which aims for a World Without Waste, we have been working on the design aspects of product packaging, such as expanding
the use of 100% recycled PET bottles and establishing a recycling scheme in collaboration with local governments and partnercompanies for the steady collection of high-quality packages. In addition, for further recycling of resources, we haveestablished the CAN to CAN horizontal recycling system of aluminum cans and started manufacturing and selling products
produced from recycled materials. To reduce greenhouse gas (GHG) emissions, we have enhanced our climate-related
financial disclosure and promoted activities based on the recommendations of the Task Force on Climate-related Financial
Disclosure (TCFD). In other efforts to contribute to local communities through business, we have implemented water source
conservation activities, donated products to food banks, and placed vending machines to support local activities. As part ofour efforts to promote diversity, we have worked to raise understanding of LGBTQ through internal and external awarenessraising opportunities to create a better working environment. Such ESG initiative have been positively appraised, and for thefifth consecutive year we have been selected as a component of the DJSI Asia Pacific, a leading global ESG investment index.
Details for the fiscal year earnings are as follows.

16

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Summary of Consolidated Financial Results(In million JPY except sales volume)
Change(%)

Full year (January to December)

2021

2022

Revenue

785,837

807,430

2.7

467

480

3

Gross Profit

350,505

351,755

0.4

Selling, General & Administrative Expenses

363,750

365,295

0.4

Other income (Recurring)

887

974

9.8

Other expenses (Recurring)

2,142

1,924

(10.2)

Investment gain(loss) on equity method

(162)

46

－

(14,662)(14,443)－

Other income (Non-recurring)

9,251

8,338

(9.9)

Other expenses (Non-recurring)

15,5605,408(65.2)

Operating Loss

(20,971)(11,513)－

Net Loss Attributable to Owners of Parent(2,503)(8,070)－Q4 (October to December)

2021

2022

Revenue

196,306

195,109

(0.6)

116

113

(3)

Gross Profit

89,68284,439(5.8)

Selling, General & Administrative Expenses

89,882

86,973(3.2)

Other income (Recurring)

237

280

18.2

Other expenses (Recurring)

635

982

54.7

Investment gain (loss) on equity method

(41)

(11)

－

Business Loss

(639)

(3,247)－

Other income (Non-recurring)

3,667

900

(75.4)

Other expenses (Non-recurring)

4,021

2,114

(47.4)

Operating Loss

(993)

(4,460)－

Net Loss Attributable to Owners of Parent(968)(2,876)－

Sales volume (million cases)

Business Income (Loss)

Sales volume (million cases)

Change(%)* 1. “Business Income (loss)” is a measure of our underlying or recurring business performance. Business Income (loss) deducts cost of
goods and selling, general and administrative expenses from revenue, and includes other income and expenses which we believe arerecurring in nature.
2 Net Income (Loss) Attributable to Owners of Parent for 2021 is a total of continuing operation and discontinued operation results.
3. Sales volume in 2021 is revised retroactively due to changes of counting segmentation and scope in some products.

17

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Consolidated revenue was 807,430 million yen (2.7% increase of 21,594 million yen from the same period of the previousyear). Although there was a negative impact on sales volume following the price revisions, sales volume increased by 3% versus
the previous year. This was due to the introduction of new products and channel-specific efforts to meet diversifying consumer
needs, which supported capturing the opportunity of traffic recovery and increased demand due to the heat wave. Volume growthin the profitable vending channel and the improvement in wholesale revenue per case through price revisions contributed to theincrease in revenue. In the fourth quarter (October 1, 2022 to December 31, 2022), with the price revisions implemented in
October for small packages, wholesale revenue per case increased in all channels.
Consolidated business loss was 14,443 million yen (14,662 million yen loss in prior year period) and improved versus theprevious year. We have achieved profit improvement of about 20 billion yen in areas that are under our control, such as volume
growth, price revisions, and cost savings through improved manufacturing, logistics efficiency and acceleration oftransformation. However, external factors such as commodities, yen depreciation and higher utility costs had significant impact
on our business.
Consolidated operating loss was 11,513 million yen (20,971 million yen loss in prior year period). In addition to businessincome improving versus the previous year, operating income improved versus the previous year due to gains on sales of fixed
assets and a decrease in temporary paid leave expenses. Other income (non-recurring) for the fiscal year includes gains on salesof property, plant, and equipment of 4,561 million yen and 3,329 million yen in government subsidies for employment
adjustment. Other expenses (non-recurring) include 2,168 million yen in temporary paid leave expenses, 1,298 million fortransformation related expense, 1,104 million yen in special retirement allowances related to the voluntary employee retirement
programs, and 812 million yen in losses on sales and disposals of property, plant, and equipment.
Net income attributable to owners of the parent was a loss of 8,070 million yen (2,503 million yen loss in prior year period).
While operating income improved from the previous period, income attributable to owners of the parent company got worse dueto the absence of a gain on transfer of shares of subsidiary Q'sai Co., Ltd. Recorded in discontinued operations in the previous
year being recorded in discontinued operations.

18

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Beverage volume performance
Full-year sales volume increased by 3% with the recovery in traffic and increased demand from the heat wave, despite theprice revisions having a negative volume impact. By channel, supermarkets, drugstores, and discounters were impacted by theprice revisions and from the severe competition, despite the execution of campaigns to capture the traffic recovery and active
introduction of new products. As a result, sales volume at supermarkets declined by 5%, while sales volume at drugstores anddiscounters increased by 1%, partly due to an easing trend from the impact of volume declines of large PET following the pricerevisions. Vending volume increased by 3%, despite the volume impact from the price revisions in October for small packages,
the market share base we have built and the implementation of campaigns through the Coke ON smartphone app contributed tocapturing the traffic recovery and demand from the heat wave. In addition, vending machine placement activities -one of our
key initiatives- progressed at a faster pace than planned throughout the year. The number of operating vending machines
increased by more than 10,000 units from last year, contributing to growth in both volume and value share. CVS sales decreased
by 1% due to the continued severe competitive environment and with volume being impacted by the price revisions, despite
efforts to strengthen activities to acquire sales space for core and new products, and efforts to implement campaigns incollaboration with customers. In retail & food, volume increased by 18% with the recovery in customer traffic returning to dineat restaurants. In online, volume grew by 23%, supported by growth in all categories, achieved even during the period of traffic
recovery by capturing demand for at-home consumption with the high convenience it offers. Offerings of label-less products,
tie-up promotions with major online customers, and the acquisition of subscription type consumers supported the growth.
By beverage category performance, sparkling sales volume grew by 1%, despite the volume impact from the price revisions,volume growth centered around Coca-Cola at vending and restaurants with the recovery in traffic, and contributions from new
products such as Fanta Premier Lemon. Sales volume of tea products decreased by 1% due to the price revision impact, despite
the tailwind from the traffic recovery and heat wave, contributions from Yakan no Mugicha from Hajime which continues toenjoy steady sales growth since its launch in the previous year and new products such as Ayataka Cafe Hojicha Latte. Coffee
sales volume increased by 2%, supported by new products such as Georgia Black, strengthening of the Costa Coffee lineup, andgrowth in bottle can packages in the immediate consumption channels. Sports grew by 7%, with restrictions being lifted on
events and other activities, also benefiting from the heat wave. Water sales volume grew by 8% with the traffic recovery and theheat wave, the launch of the new I LOHAS Natural Water with the renewed bottle design for the first time in 13 years andcapturing at-home consumption demand.
In the alcohol category, renewals for the Lemon-dou brand and expanding the product offerings, launch of the non-alcoholic
beverage Yowanai Lemon-dou, and introduction of the Lemon-dou Uchiwari Lemon to capture new demand contributed to sales
volume. However, the cycling impact of new products launches in the previous year and of the at home-drinking demand thatgrew with COVID had an impact and volume decreased by 15%.
(2) Cash Flow
The cash flow conditions for the full year are as follows:<The Cash Flows from Operation Activities>
Net cash generated from operating activities was 42,717 million yen (35,982 million net cash generated in the previous year
period). This results mainly from the 12,491 million yen net loss before tax, “Depreciation and amortization”, “Increase in otherliabilities”, etc. alongside “Gain on sale of property, plant and equipment” and “Increase in other liabilities” etc.
<The Cash Flows from Investing Activities>
Net cash used in from investing activities was 23,090 million yen (15,271 million yen outflow in the previous year period),This results mainly from “Acquisitions of property, plant and equipment and intangible assets” etc., as a result of strategic,
investments that will serve as a foundation for growth, alongside “Proceeds from sales of property, plant and equipment andintangible assets” as part of the efforts to optimize its balance sheet.
<The Cash Flows from Financing Activities>
Net cash used in financing activities was 46,050 million yen (67,134 million yen net cash used in the previous year period),
driven by “Payments for bond redemption” and “Dividends paid”.
As a result of these activities, cash, and cash equivalents at the end of the year was 84,074 million yen, a decrease of 26,422
million yen from the end of the prior fiscal year-end.

19

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Overview of production, orders received and sales(1) Production results
Production results by business segment for the current fiscal year are as follows:
Segment nameMillions of yen

Beverage business

526,554

Year-to-year comparison (%)
104.2(NOTE) Amounts primarily constitute production costs.
(2) Procurement results
Procurement results by segment for the current fiscal year are as follows:
Segment nameMillions of yen

Beverage business

62,785Year-to-year comparison (%)
104.4(NOTE) Amounts are based on purchase prices.
(3) Orders received
Order status is omitted as the Group mainly engages in prospective production.
(4) Sales results
Sales results by segment for the current fiscal year are as follows:
Segment nameMillions of Yen

Beverage business

807,430

Year-to-year comparison (%)
102.7(NOTE) Information on sales by major customer is omitted, as there are no counterparties with whom the ratio to overall sales exceeds 10%

20

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Analysis of financial condition, results of operations and cash flows(1) Significant accounting policies and estimates
The consolidated financial statements of the Group are prepared in accordance with IFRS. In preparing these consolidated
financial statements, certain items, including provisions, are based on estimates made by the Group. These estimates are basedon the Group’s historical results and matters that are deemed reasonable considering the future plans. The accounting standards
are described in 1. Consolidated financial statements, (1) Notes to Consolidated financial statements, (Significant accounting
policies) and (Significant accounting judgments, estimates and assumptions) under 5. Financial information.
(2) Analysis of financial position at the end of the fiscal year
The ratio of the Group's equity attributable to owners of the parent to total assets at the end of the fiscal year was 57.6%, andwe believe that our financial position remains sound.
Major factors of changes from the end of the previous fiscal year for each major item in the consolidated statement of financial
position are as follows:(Assets)
Assets at the end of the year were 826,737million yen, a decrease of 40,375 million yen to compared with the end of the priorfiscal year-end period. This is mainly due to a decrease in "cash and cash equivalents" resulting from redemption of bonds, anda decrease in "property, plant and equipment" as a result of balance sheet improvement through consolidation of sales centers,
while the Akashi Mega DC was newly established.
(Liabilities)
Liabilities at the end of the year were 350,378 million yen which decreased by 24,282 million yen from the end of the prior year
period. This is mainly due to a decrease in “Bonds and debts” under current liabilities upon the redemption of bonds.
(Equity)
Equity at the end of the year was 476,358 million yen, a decrease of 16,093 million yen from the end of the prior year period.
This is mainly due to a decrease in “Retained earnings” as a result of dividend payments.
Cash and cash equivalents at the end of this year was 84,074 million yen, a decrease of 26,422 million yen (23.9%). See theconsolidated statements of cash flows in " Overview of financial results, (2) Cash flows” for more details.
(3) Analysis of results of operation for the current fiscal year
An overview of results of operation for the fiscal year is as described in "Overview of financial results, (1) Results ofoperations." Major changes from the previous fiscal year for each major item in the consolidated statements of profit or loss are
as follows: Net loss for the current fiscal year and Net Income (Loss) Attributable to Owners of Parent is a total of continuing
operation and discontinued operation results.
(Revenue)
Revenue for the current fiscal year increased 807,430 million yen, or 2.7%, from the previous fiscal year to 21,594 million
yen.
(Operating loss)
Operating loss for the current fiscal year decreased 11,513 million yen, from the previous fiscal year to 9,458 million yen(The previous year's operating loss was 20,971 million yen).
(Net loss for the current fiscal year)
Net loss for the current fiscal year for the fiscal year increased 5,535 million yen, or from the previous fiscal year to 8,059
million yen. (The previous fiscal year's net loss was 2,525 million yen)
(Net loss for the current fiscal year attributable to owners of the parent)
Net loss for the current year attributable to owners of the parent for the fiscal year incraesed 5,567 million yen, from theprevious fiscal year to 8,070 million yen. (The previous year's Net income for the year attributable to owners of the parent was
2,503 million yen.)(4) Factors affecting financial position and results of operations
Factors that have could significantly impact the Group's financial position and results of operations are described in "2.
Business risks."

21

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

4. Important agreements for business
The Bottler’s Agreement
We have concluded the Bottler’s Agreement with The Coca-Cola Company and Coca-Cola (Japan) Company Limited for the
manufacture and sale of Coca-Cola, Fanta, Sprite, Real Gold, Georgia, Aquarius, Qoo, Sokenbicha, Huang, and Kochakaden,etc. and for the use of trademarks in Tokyo, Osaka, Kyoto, and 35 prefectures, including the South Tohoku, Kanto, Koshinetsu,
Chubu, Kinki, Chugoku, Shikoku, and Kyushu regions. Under this agreement, we have entered into the Delegation of
Manufacturing and Distribution Rights under Bottler’s Agreement with The Coca-Cola Company and Coca-Cola (Japan)
Company Limited to entrust the bottling business to Coca-Cola Bottlers Japan Inc.

5. Research and development activities
There are no specific items to state here.

22This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

III. Information about facilities
1. Overview of capital expenditures
The Group implemented capital expenditures totaling 42,540 million yen during the current fiscal year. The main contents of thisinvestment were the introduction of vending machines and other products to the market to strengthen sales capabilities,
improvement of manufacturing efficiency, acquisition of facilities for new products, and investment in the "Akashi Mega DC" tooptimize the logistics network. Capital expenditures include the amounts for property, plant and equipment, Right-of-use assets andintangible assets.

2. Major facilities
Major facilities in the Group are as follows: The carrying amount is presented in accordance with IFRS.
(1) Segment breakdown
As of December 31, 2022
Carrying amount
Name of reporting segment

Buildings andstructures(Millions of yen)

89,146Beverage business

Machinery andVending
vehiclesmachines(Millions of yen) (Millions of yen)

102,136

Land(Millions of
yen)

Other
(Millions of
yen)

Total
(Millions of yen)

139,065

40,967

460,553

89,239Number of
employees(People)14,484[3,316](2) The reportable segments
As of December 31, 2022
Carrying amount
Name of office(Location)

Head-office and others(Minato-ku, Tokyo,)

Name ofreportingsegment

Details offacilities

Beveragebusiness

Overallmanagement,
production,
sales, logistics
bases, etc.

Buildings and Machinery
Vending
structuresand vehicles machines(Millions of (Millions of (Millions of
yen)
yen)
yen)

Land
(Millions ofyen)(Squarefootage: inthousands of
m2)－

47,912(1,430)17,206

9(NOTE) The number of employees is omitted since we are a holding company.

23

Number of
employees
Other
Total
(Millions of (Millions of (People)
yen)
yen)

3,867

68,994－

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(3) Domestic subsidiaries
As of December 31, 2022
Carrying amount
Name ofreportingsegment

Name(Location)

Coca-Cola Bottlers

Beverage

Japan Inc.

business(Minato-ku, Tokyo)

Details offacilities

Buildings and Machinery
structuresand vehicles(Millions of (Millions of
yen)
yen)

Vending
machines(Millions of
yen)

Land
(Millions ofyen)[Squarefootage: inthousands ofm2]

Production,

70,705sales, logistics

71,809102,124

75,840(2,115)bases, etc.

FV Japan Co., Ltd.

Beverage

Vending(Toshima-ku, Tokyo)

businessmachines, etc.

Number of
employees
Other
Total
(Millions of (Millions of (People)
yen)
yen)

37,095357,572

0

14,136

[139]
496
47

2

13,590

(9)
[5]

7,656
[1,187]261[129](NOTE) 1. "Other" in "Carrying amount" consists of "Construction in progress" in property, plant and equipment, right-of-use
aseets and "Software" in intangible assets.
2. Figures in [ ] of land (Square footage: in thousands of m2) are the area of leased land (Square footage: in thousands ofm2) and are not included in each figure.
3. Figures in [ ] of number of employees are the number of temporary workers and are not included in each figure.

3. Planned additions, retirements of facilities
The Group's capital expenditures are planned based on our budget formulation policy.
In principle, each company formulates its own facility plans, however, the reportable segment makes adjustments.
The Group's significant plans for the construction, renovation, etc. of facilities as of the end of the current fiscal year are as follows:
We have no plans to sell or retire any significant assets.
Name ofcompany
Coca-Cola
Bottlers
Japan Inc.

Name of office(Location)

Each branch(-)

Name ofreportingsegment
Beveragebusiness

Details of
Facilities

Total planned
expenditures(Millions ofyen)Amount paid
(Millions ofyen)

Vending
machines andcooler, etc.

20,602－24

Way offinancing

Own fundScheduledstart dateJan. 2023

Scheduledcompletiondate

Dec 2023

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

IV. Information about reportable segment
1. Information about shares(1) Total number of shares① Total number of shares
Type

Total number of authorized shares (shares)

Common stock

500,000,000
Total

500,000,000② Issued shares

Class

Number of issued sharesat the end of the fiscal year
(shares)(As of December 31, 2022)

Number of issued sharesat the filing date(shares)(As of March 29, 2023)

206,268,593

206,268,593

206,268,593

206,268,593

Commonstock
Total(2) Share acquisition rights① Details of the stock option plan
Not applicable.
② Description of rights plan
Not applicable.
③ Other share acquisition rights
Not applicable.

25

Listed financial
instrument name ofexchange or registeredauthorized financial
instrument name ofassociation of trading
firmsContent

Tokyo Stock Exchange

Number of shares per(Prime Section)

share unit: 100 shares－－

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(3) Exercises of moving strike convertible bonds
Not applicable.
(4) Changes in number of issued shares, stated capital
Outstanding of
Change in number
total number ofof issued shares
Dateissued shares(Thousands of(Thousands ofshares)shares)April 1, 2017
(NOTE)

95,143

Change in the
Balance of stated Change in capital Balance ofamount of statedcapitalsurpluscapital surplus
capital(Millions of yen) (Millions of yen) (Millions of yen)
(Millions of yen)－

206,269－

15,232

108,167(NOTE) Share exchange with Coca-Cola East Japan Co., Ltd. (Exchange ratio: 0.75 shares of ordinary share per common stock of
Coca-Cola East Japan Co., Ltd.)(5) Shareholding by shareholder category
As of December 31, 2022
Status of shares (number of shares constituting one unit: 100 shares)
Category

National andlocal
governments

Financial
Other
service
corporations
providers

Financial
institutions

Number of shareholders(people)

－

41

33

Number of shares held
(units)－358,920

Percentage of shareholdings
(%)

－

17.47

Foreigners

Individuals
and others

Total

Number ofshares lessthan one unit
(Shares)

Other than
individual

Individuals

695

294

163

59,27560,501－73,713658,321408,909562

554,473 2,054,898

778,793

3.59

32.04

19.90

0.03

26.98

100.00－(NOTE) 1. "Individuals and Others" and "Shares less than one unit" column include 269,284 units and 78 shares of treasury stock
owned by the Company, respectively.
2. "Other corporations" and "Shares less than one unit" include 23 units and 60 shares in the name of Japan Securities
Depository Center, Inc., respectively.

26

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(6) Major shareholders
As of December 31, 2022

Name

Address

Number ofshares held
(thousands ofshares)Percentage of thenumber of shares
held to the total
number of issued
shares (excluding
treasury stock) (%)

Coca-Cola (Japan) Company, Limited

4-6-3, Shibuya, Shibuya-ku, Tokyo

27,956

15.59

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

2-11-3, Hamamatsucho, Minato-ku, Tokyo

19,404

10.82

Custody Bank of Japan, Ltd. (Trust Account)

1-8-12, Harumi, Chuo-ku, Tokyo

5,755

3.21

Ichimura Foundation of New Technology

1-26-10, Kitamagome, Ota-ku, Tokyo

5,295

2.95

Satsuma Shuzo Co., Ltd.

26 Kamimotocho, Makurazaki-shi,
Kagoshima

4,736

2.64

Senshusha Co., Ltd.

339 Noda, Noda-shi, Chiba

4,088

2.28

Coca-Cola Holdings West Japan Inc.
(Standing proxy: Coca-Cola (Japan) Company,
Limited)1013 Wilmington Center Road, U.S.A.
Delaware
(4-6-3 Shibuya, Shibuya-ku, Tokyo)

4,075

2.27

Mitsubishi Heavy Industries Machinery Systems,

1-1-1, Wadazakicho, Hyogo-ku, Kobe-shi,

Ltd.

Hyogo

3,912

2.18

MCA Holdings, Co., Ltd.

7-10-16, Ginza, Chuo-ku, Tokyo

3,408

1.90

3,192

1.78

81,82145.62

VERTIGO BUILDING- POLARIS 2-4 RUE
ＢＮＹＭＳＡＮＶ ＡＳ ＡＧＥＮＴ／ＣＬＩＥＮＴＳ ＬＵＸ ＵＣＩＴＳ ＮＯＮ

EUGENE PUPPERT L-2453
LUXEMBOURG GRAND DUCHY OF

ＴＲＥＡＴＹ １

LUXEMBOURG(2-7-1, Marunouchi, Chiyoda-ku, Tokyo,(Standing proxy: MUFG Bank, Ltd.)

Japan, Settlement dept)
Total

－

(Notes) 1. 26,928 thousand treasury shares are not included in the status of major shareholders above because they do not have voting
rights.

27

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(7) Voting rights① Issued shares
As of December 31, 2022
Number of shares(Shares)Number of voting rights(Units)Description

Shares with no voting rights

－

－

－

Shares with restricted voting rights(treasury stock, etc.)

－

－

－

Shares with restricted voting rights (other)

－

－

－

－

－

Category

Shares with full voting rights (treasury
stock, etc.)
Shares with full voting rights (other)

Commonstock
Commonstock

26,928,400
178,561,400

CommonShares less than one unit

1,785,614－

778,793－－

Number of issued and outstanding shares

206,268,593－－

Number of voting rights of all shareholders

－

stock

1,785,614－(NOTE) "Shares with voting rights (others)" includes 2,300 shares (23 voting rights) held in the name of Japan Securities Depository
Center, Inc.
② Treasury stock

Number ofshares held insomeone else’s
nameNumber ofshares held in
own names

As of December 31, 2022
Percentage of thenumber of shares
Total number
held to the totalof shares heldnumber of issued
shares (%)

Name of shareholder

Address ofshareholder

Coca-Cola Bottlers
Japan Holdings Inc.

9-7-1, Akasaka,
Minato-ku, Tokyo

26,928,400－

26,928,400

13.06

－

26,928,400－

26,928,400

13.06

Total

(8) Details of executive and employee share ownership schemes(Directors' Compensation BIP Trust)
1) Outline of the System
The Company has introduced a long-term incentive (stock-based compensation) system for the Company's executive
directors using a directors’ compensation BIP trust structure in accordance with the resolution at the 2022 Annual
General Meeting of Shareholders hold on March 28, 2023.
The Board Incentive Plan (BIP) Trust is a stock-based compensation plan under which the trust established by theCompany acquires the Company's shares with money contributed by the Company, and the Company's shares aredelivered to the executive directors.
An overview of this system is provided in "4. Corporate Governance, etc. (4) Compensation, etc., of Directors andCorporate Auditors.
2)

Total number or total amount of shares to be acquired by the executive directors
The Company will contribute up to 2,880 million yen as compensation to the executive directors during the initial
trust period (from May 2023 to May 2026). The maximum number of points to be granted to executive directors fromthe BIP Trust shall be 1,800,000 points (1 point = 1 share of common stock) per three fiscal years.

3)

Scope of persons entitled to beneficial interests and other rights under the plan
Executive directors of the Company who satisfy the requirements for beneficiaries.

28

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

2. Acquisition of treasury stock
Classes of shares: Acquisitions of common stock falling under Article 155 Paragraph 7 of the Companies Act.
(1) Acquisitions by resolution of shareholders’ meeting
Not applicable.
(2) Acquisitions by resolution of board of directors’ meeting
Not applicable.
(3) Acquisitions not based on resolution of shareholders’ meeting or the resolution of board of directors’ meeting
Acquisition of shares less than one unit pursuant to the provisions of Article 192, Paragraph 1 of the Companies Act
Category

Number of shares (Shares)

Acquired treasury stock during the fiscal year
Acquired treasury stock during the period (January 1, 2023 to
the filing date of this report)

Total amount (Yen)

3,972

5,728,334

274

377,127(NOTE) "Acquired treasury stock during the period" does not include shares acquired due to requests for purchase of shares less than
one unit from March 1st, 2023 to the filing date.
(4) Disposals and holding of acquired treasury stock
The fiscal year
Category

Acquired treasury stock for which subscribers
have been solicited
Disposals of acquired treasury stock by
cancellation
Acquired treasury stock transferred due tomerger, share exchange, Share issue, orNumber of shares(Shares)

Total disposed
amount(Yen)

The period (January 1, 2023 to thefiling date of this report)
Total disposed
Number of sharesamount(Shares)
(Yen)

－

－

－

－

－

－

－

－

－

－

－

－

125

397,669－－

26,928,478－

26,928,752－

company split
Other(Sale by request for the purchase of odd-lot
shares)(Note 1)
Number of treasury stock held (Note 2)(NOTE) 1. "Other (Sale by request for the purchase of odd-lot shares)" column in "The period" does not include shares sold due torequest for sale of shares less than one unit from March 1st, 2023 to the filing date.
2. "Number of treasury stock held" column in "The period" does not include shares sold in response to requests for thepurchase of odd-lot shares from March 1st, 2023 to the filing date and requests for the sale of odd-lot shares.

29This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

3. Dividend policy
We periodically review its capital structure and dividend payout ratio to maximize shareholder returns while maintaining
flexibility to pursue growth opportunities. We seek to use retained earnings to fund investment for sustainable growth for ourbusiness and further enhancement of corporate value.
We set its basic policy regarding dividends, which includes active redistribution of profits while placing the highest priority
on paying dividends in a stable manner, by comprehensively reviewing the business performance and level of retained earnings.
In addition, we have set a payout ratio target of 30% or more for net income attributable to owners of the parent. We pay interim
and year-end dividends.
We paid an interim dividend of 25 yen per share and a year-end dividend of 25 yen per share, 2022, for a total annual dividendof 50 yen per share to pay. In the fiscal year ending December 31, 2022, despite the fact that the business environment remained
as challenging as the previous fiscal year due to the significant impact of rising commodity and utility prices on businessactivities, we decided to pay above dividend based on our basic policy on stable dividend payment
For the fiscal year ending December 31, 2023, we expect rising commodity and utility prices to continue to have a significant
impact on our business. We seek to maintain its basic policy on stable dividend payment by setting the dividend forecast ofannual total of 50 yen per share paid as interim dividend and another 25 yen per share as year-end dividend, which is sameamount as in the fiscal year ending December 31, 2022
On future shareholder returns, we stay committed by comprehensively reviewing its business performance trends and financial
conditions and examining the best approaches that could be taken by including the share repurchase program.
Dividends from retained earnings for the current fiscal year are as follows:
Amount of dividend
Total dividend
Date of resolution
per share(Millions of yen)
(Yen)
August 10,2022
Board of Directors

4,484

25

March 28, 2023
Resolution of the Ordinary
General Meeting of
Shareholders

4,484

25

30

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

4. Corporate governance(1) Explanation about corporate governance① Basic stance on corporate governanceOur basic stance on corporate governance is to seek improvement of management soundness, transparency and efficiency andincrease mid-to-long-term corporate value and shareholder value.
We have established the Audit and Supervisory Committee to further strengthen our governance system. The Audit andSupervisory Committee, which takes a lead role in audits, is composed entirely of outside directors (Audit and Supervisory
Committee members), including multiple independent outside directors. The Audit and Supervisory Committee members, who
are outside directors, have voting rights at the Board of Directors meetings and the rights to express opinions on directors'
nominations and compensation at the General Meeting of Shareholders. As a result, our management oversight functions havebeen further strengthened.
In addition, we have adopted the executive officer system to separate decision-making and management oversight functions
from business execution functions. Certain important business execution decisions are entrusted to directors, so that the Board of
Directors can deliberate on matters of particular importance. For other matters, we place emphasis on speed of management
decisions by the Executive Leadership Team.
② Corporate governance structure and the reason for adopting this structure
We have established the Audit and Supervisory Committee to further strengthen our governance system. The Audit andSupervisory Committee, which takes a lead role in audits, is composed entirely of outside directors (Audit and Supervisory
Committee members), including multiple independent outside directors. The Audit and Supervisory Committee members, who
are outside directors, have voting rights at the Board of Directors meetings and the rights to express opinions on directors'
nominations and compensation at the General Meeting of Shareholders. As a result, our management oversight functions havebeen further strengthened. In addition, we have adopted the executive officer system to separate decision-making and management
oversight functions from business execution functions. Certain important business execution decisions are entrusted to directors,
so that the Board of Directors can deliberate on matters of particular importance. For other matters, we place emphasis on speedof management decisions by the Executive Leadership Team.
We believe that the following corporate governance structure can improve management efficiency and transparency, andaccordingly, we have adopted this structure.
a. Board of Directors
The Board of Directors is composed of nine directors, including multiple independent outside directors. The Periodic Meetingof the Board of Directors shall be held once in three months in principle and may be held as needed. The Board of Directors shallresolve items prescribed by laws and the Articles of Incorporation and other items relating to important business matters such as
basic managerial policies and shall receive the Directors’ report on their execution of the duties. Certain important businessexecution decisions are entrusted to directors, so that the Board of Directors can deliberate on matters of particular importance.
For other matters, we place emphasis on speed of management decisions by the Executive Leadership Team.
b. Audit and Supervisory Committee
The Audit and Supervisory Committee is composed of four outside directors (Audit and Supervisory Committee members),
including multiple independent outside directors. Meetings of the Audit and Supervisory Committee shall be held once every threemonths in principle and may be held as necessary. The directors who are members of the Audit and Supervisory Committee
conduct audits aimed at checking the status of business execution by the directors, executive officers and employees in accordancewith related laws and regulations, the article of incorporation, and the audit standards and guidelines established for and by the
Audit and Supervisory Committee, by participating in the Board of Directors meeting and reviewing the results of the audits
conducted by the Internal Audit Office and Accounting Auditor.
A system to ensure sufficient oversight of business execution by executive officers is established, which include the regularexchange of opinions between the Representative Director and the members of the Audit and Supervisory Committee on the resultsof the aforesaid audit activities.

31

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Main institutions)
Institution
Board ofDirectors

Purpose and authority(a) The Board of Directors shall

Chairperson

MemberCalin Dragan

Calin Dragan,

resolve items prescribed by laws

Representative

Bjorn Ivar Ulgenes,

and the Articles of Incorporation

Director

Hiroko Wada (Outside Director, Independentand other items relating to

Director),

important business matters such

Hirokazu Yamura (Outside Director,

as basic managerial policies.

Independent Director),(b) The Board of Directors shall

Celso Guiotoko (Outside Director,

receive Directors’ report on their

Independent Director),

execution of the duties.

Hiroshi Yoshioka (Outside Director,
Independent Director),
Nami Hamada (Outside Director, Independent
Director),Sanket Ray (Outside Director),
Stacy Apter (Outside Director)

Audit and(a) Audit of the performance of theHiroshi Yoshioka

Hiroshi Yoshioka (Outside Director,

Supervisory

director’s duties and preparation(Outside Director,

Independent Director),

Committee

of audit reports.

Independent Director),

Nami Hamada (Outside Director, Independent(b) Determination of the contents of

Director),

proposals regarding the election,

Sanket Ray (Outside Director),dismissal, or disapproval of

Stacy Apter (Outside Director)

reappointment of accounting
auditors.
(c) Determination of opinion of the
Audit and Supervisory
Committee regarding theelection, dismissal or resignationof directors and remuneration,etc. (excluding directors who are
Audit and Supervisory
Committee Members.).
(d) Other duties provided for inapplicable laws and regulations
and the articles of incorporation,
etc.

32

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

33

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(The system to ensure business adequacy)
In order to establish the system to ensure that the jobs conducted by the Directors comply with the laws and regulations and the
Articles of Incorporation, and other systems to ensure appropriateness of operation (to be referred to as “internal control”
hereinafter), the Company has made a resolution on “the Internal Control System Basic Policy” at the Board of Directors
Meeting.
The Internal Control System Basic Policy is as shown below.
a. System to ensure that performance of duties by Directors and employees of the CCBJH Group conforms to laws and regulations
and the Articles of Incorporationa) The “Code of Conduct” shall be established in order to ensure that all the Directors, Executive Officers, and employeesof the Group comply with laws and regulations and the Articles of Incorporation to act in conformity with social norms. The
Risk Management Committee shall be convened periodically in order to reinforce the compliance system and to prevent noncompliance.
b) An internal whistle-blowing system against non-compliance, namely, a reporting and consultation contact separate from thereporting line to immediate managers, shall be set up.
c) The oversight function of the Board of Directors shall be reinforced by adopting the company system where the Audit andSupervisory Committee is established in order to ensure auditing by the Audit and Supervisory Committee where all of theconstituent members are External Directors.
d) The department in charge of internal auditing shall be established in order to audit whether business activities are conducted
appropriately and effectively in conformity with laws and regulations, the Articles of Incorporation, Company Rules andRegulations, etc.
e) The Company clearly identifies a firm stance against anti-social forces and organizations that cause threats to the order andsafety of civil society and that the Company never associates with such entities. The Company shall never accede to any illegal
request and deal with any such request in cooperation with the police, lawyers, etc.
b. System to retain and manage information related to Directors’ performance of their dutiesa) The Company shall record information regarding minutes of General Shareholders meetings, minutes of Board of Directors
meetings, documents and other materials related to important decision-makings and Directors’ performance of their duties indocuments or electronic media and retain it in accordance with the Rules of Documentation Handling and Information Security
Policy in a manner similar to that for statutory documents.
b) The Company’s Directors may inspect such documents, etc. at any time.
c. Regulations and other systems concerning loss risk management of the Groupa) In accordance with the Group policy on responding to material business risks and from the viewpoint of management ofother risks, significant items shall be reported to the main meetings dealing with risk management, and the main meetings
shall determine policies to deal with risks as required.
b) The Company establishes rules, guidelines, etc. and maintains an organization to execute effective responses to material risks,and ensure the matters to be passed down by implementing training for the entire Group, etc.
c) The department in charge of risk management in the Company or its subsidiaries is to monitor the condition of companywide risks and to take appropriate measures on a group-wide basis. The Company promptly designates who is in charge of the
response to new risks that arise.
d. System to ensure efficiency of performance of duties by the CCBJH Group Directorsa) The Company’s Board of Directors shall determine Group-wide management policy and goals shared by the Directors,
Executive Officers, employees, and others of the Group, and determine the efficient method to achieve the goals including theallocation of authority based on the group’s decision-making rules.
b) In addition to Board of Directors Meetings, appropriate forums, such as the Management Meeting, shall be organized todeliberate significant matters affecting the entire Group, thereby ensuring that decisions are reached based on considerationsof multi-dimensional aspects.
e. System to ensure appropriateness of operations in a corporate group, which consists of the Company and its subsidiaries
The Company shall ensure management integration of the Group through establishment of a corporate philosophy,
management policy, the Code of Ethics and Conduct and Chart of Authority common throughout the Group and supervise andmanage the performance of the subsidiaries’ operations.

34

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

f. Matters concerning employees assisting the Audit and Supervisory Committee to execute the duties if the Audit and Supervisory
Committee request the assignment of such employees, matters concerning the independence of such employees from directors(excluding directors serving on the Audit and Supervisory Committee) and matters related to ensuring the effectiveness of
instructions given by the Audit and Supervisory Committee to such employees
The Company shall assign employees to assist the Audit and Supervisory Committee. Such employees shall execute the duties
under the instructions given by the Audit and Supervisory Committee in assisting executions of duties by the Audit andSupervisory Committee and shall not receive instructions from directors (excluding directors serving on the Audit andSupervisory Committee).
g. System for reporting by Directors and employees of the CCBJH Group to the Audit and Supervisory Committee and systems toensure that reporting parties do not receive disadvantageous treatment as a result of such reportsa) Upon discovery of any incident that could cause the Group substantial damage, such as acts in violation of laws andregulations, the Directors (excluding Directors serving on the Audit and Supervisory Committee), Executive Officers,
employees and others of the Company shall immediately report the matter to the Audit and Supervisory Committee.
b) The Internal Audit Department and the Risk Management Committee shall regularly report internal audit results and thestatus of other activities in the Group to the Audit and Supervisory Committee.
c) The department in charge of compliance shall regularly report the status of whistleblowing in the Group to the Audit andSupervisory Committee.
d) The Company shall prohibit unjust treatment of the reporter to the Audit and Supervisory Committee and ensure that thismatter will be informed to all the executives and employees of the group.
h. Matters concerning procedures for advance payment or reimbursement of expenses incurred in the course of performance of
duties by Directors serving on the Audit and Supervisory Committee and policies related to processing expenses or liabilities
arising from performance of duties by Directors serving on the Audit and Supervisory Committee
The Company establishes enough budget for Directors serving on the Audit and Supervisory Committee each year to fulfill theperformance of their duties.
i. Other systems to ensure that the Audit and Supervisory Committee’s audit is conducted effectivelya) The Representative Director and the Audit and Supervisory Committee shall hold a meeting on a regular basis to exchange
opinions in order to communicate with each other.
b) The Representative Director shall prepare an environment so that the Audit and Supervisory Committee is able to cooperatewith external experts, such as lawyers and certified public accountants, in the course of its duties whenever it deems it necessary.
c) The Audit and Supervisory Committee shall regularly provide opportunities for the exchange of opinions with the Internal
Audit Department and accounting auditors.
(Design of risk management system)
The Company has developed Group Rules for Risk Management and is proactively working on preventing the occurrence ofvarious risks that may arise for the Company together with ensuring that in the event of a risk occurrence, that response strategies
exist that allow us to respond in a prompt and adequate manner thereby minimizing the damage and business disruption.
Furthermore, in order to minimize damage and business impacts caused by natural disasters, etc., crisis training, disaster drills
and safety confirmation drills are being held regularly thereby testing our business continuity plans in response to a large-scaledisaster.”In addition, we have developed Code of Ethics to conduct for officers and employees of the Group, which shows the Group's
corporate stance of "complying with all laws and regulations, acting in good faith in society, and enhancing corporate value by
earning the trust of all stakeholders", and have been thoroughly communicating it to all officers and employees.
③ Company organizations
a. Number of directors
The Articles of Incorporation stipulate that the number of the directors who are not members of the Audit and Supervisory
Committee shall be ten or less, and the directors who are members of the Audit and Supervisory Committee shall be seven or
less.
b. Requirements for election of directors
The Articles of Incorporation stipulate that the directors who are not members of the Audit and Supervisory Committee andthe directors who are members of the Audit and Supervisory Committee shall be elected by a majority of the vote attended by
the shareholders holding at least one-third of the voting rights of the shareholders who are entitled to exercise their voting rights,
and that they shall not be elected by cumulative voting.

35

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

c. Decision-making body for acquisition of treasury stocks
The Articles of Incorporation stipulate that treasury stocks may be repurchased through market transactions, etc. by aresolution of the Board of Directors without a resolution of the General Meeting of Shareholders, in accordance with theprovisions of Article 165, Paragraph 2 of the Companies Act. The purpose of this is to improve capital efficiency and to
implement flexible capital policies in response to changes in the business environment through authorizing the Board of
Directors to make a decision for the acquisition of treasury stocks.
d. Decision-making body for interim dividends
The Articles of Incorporation stipulate that interim dividends defined in Article 454, Paragraph 5 of the Companies Act may
be paid by the resolution of the Board of Directors without a resolution of the General Meeting of Shareholders. The purposeof this is to flexibly return profits to shareholders through authorizing the Board of Directors to make a decision for interim
dividends.
e. Requirements for the special resolution at the General Meeting of Shareholders
The Articles of Incorporation stipulate that the special resolution at the General Meeting of Shareholders defined in Article
309, Paragraph 2 of the Companies Act shall be made by two-thirds of the vote attended by the shareholders holding at least
one-third of the voting rights of the shareholders who are entitled to exercise their voting rights. The purpose of this is tofacilitate the operation of the General Meeting of Shareholders through easing the quorum for the special resolution at theGeneral Meeting of Shareholders.
f. Business execution and management oversight
The Representative Director monitors and supervises the business activities executed by the executive officers andemployees of the operating companies by participating in major meetings and other meetings held in the operating companies.
The directors who are members of the Audit and Supervisory Committee conduct audits aimed at checking the status ofbusiness execution by the directors, executive officers and employees in accordance with related laws and regulations, thearticle of incorporation, and the audit standards and guidelines established for and by the Audit and Supervisory Committee,
by participating in the Board of Directors meeting and reviewing the results of the audits conducted by the Internal Audit
Office and Accounting Auditor.
A system to ensure sufficient oversight of business execution by executive officers is established, which include the regularexchange of opinions between the Representative Director and the members of the Audit and Supervisory Committee on the
results of the aforesaid audit activities.

36

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

④ Basic Policies on the Control of the Joint-stock Company
a. Details of Basic Policy
The Company believes that the persons and/or entities (hereinafter referred as “Persons”) who control decisions on the
Company’s financial and business policies need to understand the source of the Company’s corporate value and will make itpossible to continually and persistently ensure and enhance the Company’s corporate value and, in turn, the common interestsof its shareholders. The Company believes that a decision on any proposed acquisition that would involve a change of corporate
control of the Company should ultimately be made based on the intent of its shareholders as a whole. Also, the Company
would not reject a large-scale acquisition of the shares in the Company if it would contribute to the corporate value of theCompany and, in turn, the common interests of its shareholders.
However, there are some forms of large-scale acquisition of shares that benefit neither the corporate value of the target
company nor the common interests of its shareholders: those with a purpose that would obviously harm the corporate value ofthe target company and, in turn, the common interests of its shareholders; those with the potential to substantially coerce
shareholders into selling their shares; those that do not provide sufficient time or information for the target company’s boardof directors and shareholders to consider the terms of the large-scale acquisition of shares, or for the target company’s boardof directors to present a business plan or an alternative proposal; and those that require the target company to discuss ornegotiate with the acquirer in order to procure more favorable terms for shareholders than those presented by the acquirer.
The Company believes that the Persons who control decisions on the Company’s financial and business policies need to be
Persons who (A) fully understand the importance of (i) providing freshness and refreshment to people around the world andembedding the “Coca-Cola” brand, which is now a part of our life style, in local communities; (ii) striving aggressively to win
in the market as the customers’ preferred partner with a deep understanding of the Company’s corporate philosophy; (iii)appreciating employees who have a strong sense of responsibility to thoroughly pursue customer satisfaction, and proactively
working on building a workplace environment that can make each and every employee feel rewarded, motivated and proud of
being a member of the Coca-Cola family; and (iv) contributing to local communities and proactively dealing withenvironmental issues with a strong sense of responsibility as a corporate citizen that continues to strive to assist in therealization of an affluent society, (B) preserve relationships of mutual trust with customers, business partners, shareholders
and employees and perform to their expectations, and (C) make it possible to continually and persistently ensure and enhance
the Company’s corporate value and, in turn, the common interests of its shareholders from a mid- to long-term perspective.
Therefore, the Company believes that Persons who would make a large-scale acquisition of the shares in the Company in amanner that does not contribute to the corporate value of the Company and, in turn, the common interests of its shareholders
would be inappropriate to become Persons who would control decisions on the Company’s financial and business policies.
The Company believes that it is necessary to ensure and enhance the corporate value of the Company and, in turn, thecommon interests of its shareholders by taking the necessary and reasonable countermeasures against a large-scale acquisitionof the shares in the Company by such Persons.

37This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming the Coca-Cola business in Japan by deploying various joint
initiatives such as product development and test marketing with The Coca-Cola Company and Coca-Cola (Japan) Company,
Limited (100% subsidiary of The Coca-Cola Company) as a strategic partner, but also strives to become a company trusted
by the stakeholders of consumers, customers, shareholders and employees.
Soft drink industry volume growth in Japan is expected to be muted, given the developed nature of the market as a whole,and the business environment surrounding the Company is projected to stay competitive as multiple players compete in themarket.
Under such circumstances, the Group aims at becoming the preferred partner of our customers and consumers in all
drinking occasions by establishing a robust and sustainable operating model, pursuing success in high-priority areas, anddrastically transforming the business to ensure growth.
The Company also made a transition to a company with an Audit and Supervisory Committee in order to further reinforce
the governance system. The Audit and Supervisory Committee serves as the auditing body of the Company that is comprised
exclusively of external directors, including multiple independent external directors. To strengthen the management oversightfunction, these external directors that serve as members of the Audit and Supervisory Committee have each been grantedwith a voting right in the Board of Directors meetings, in addition to the right to state their opinions in shareholders’ meetings
on matters pertaining to the designation of board members and their remuneration, among others. In order to separate thedecision-making, business management and business execution functions, the Company is implementing a corporate
executive officer system. In addition to the foregoing, for more fruitful deliberations of highly important matters in the
Board of Directors meetings, the Company is delegating the authority to make decisions on certain important matters that
require prompt business executions to specific directors as well as facilitating speedy decision making of other matters.
(b) Outline of measures to prevent inappropriate Persons from controlling the finance and business policy decisions of theCompany in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives to proactively collect and timely disclose
information in order to ensure and improve the corporate value of the Company and the common interest of shareholders
as well as make appropriate measures as needed under the scope permitted by laws and regulations and the Articles ofIncorporation.
When Board Meeting determines it necessary to apply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into consideration of the future trend of
the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the Articles ofIncorporation for decision of the implementation.
c. Decisions of the Company’s Board of Directors regarding specific measures and reasons therefor
The measure described in the previous b. (a) was introduced as a specific measure to continuously and sustainably improvethe corporate value of the Company and the common interest of shareholders, and is consistent with the Company’s basic
policy.
In addition, the measure described in the previous b. (b) was introduced as a specific measure to ensure and improve thecorporate value of the Company and the common interest of shareholders as needed under the scope permitted by laws andregulations and the Articles of Incorporation focusing on the intention of shareholders, and it is not intended to undermine theshareholders’ common interests or preserve the positions of the Company officers.

38

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) Information about officers
Males: 6 people, Females: 3 people (Ratio of females to total directors: 33.3%)
Position

Name

Representative
Calin Dragan
Director,
President

Representative
Director,
Vice
President,
Bjorn Ivar
Chief
Ulgenes
Financial
Officer (Headof Finance

Date of birth

Brief history

June 1993 Joined Coca-Cola Leventis
January 2000 Joined Coca-Cola Hellenic Bottling Company S.A
January 2005 General Manager and Administrator in charge ofRomania and Mordovian Republic, Coca-Cola
Hellenic Bottling Company S.A
July 2011
Executive Corporate Officer, Coca-Cola West Co.,Ltd.
March 2012 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.
May 2017 Regional Director, The Coca-Cola Company
Bottling Investments Group
October 24,
Regional Director, Coca-Cola Far East Limited
1966
January 2018 President, The Coca-Cola Company Bottling
Investments Group
March 2019 Executive Officer, Vice President, Coca-Cola
Bottlers Japan Holdings Inc.
Executive Officer, Vice President, Coca-Cola
Bottlers Japan Inc.
March 2019 Representative Director, President, Coca-Cola
Bottlers Japan Holdings Inc. (incumbent)
Representative Director, President, Coca-Cola
Bottlers Japan Inc. (incumbent)
January 2022 Representative Director, President and CEO,Coca-Cola Bottlers Japan Inc. (incumbent)
July, 1997 Joined The Coca-Cola Company
August 2005 Finance Director North & West Africa Business
Unit, The Coca-Cola Company
May 2008 Finance Director & Executive Assistant to theBusiness Unit President, North & West Africa
Business Unit, The Coca-Cola Company
June 2009 GM Innovation & EA, North & West Africa
Business Unit, The Coca-Cola Company
February
Senior Vice President Finance, The Coca-Cola
2010(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 2018Senior Executive Officer, Head of Finance, CocaCola Bottlers Japan Holdings Inc.
Senior Executive Officer, Head of Finance, CocaCola Bottlers Japan Inc.
November Representative Director & President, Senior
2018
Executive Officer, Head of Finance, Coca-Cola
Bottlers Japan Sales Support Inc.
January 2019 Representative Director & President, Senior
Executive Officer, Head of Finance, Coca-Cola
April 5, 1968
Bottlers Japan Business Services Inc. (incumbent)
February
Executive Officer, Head of Finance, Coca-Cola
2019
Bottlers Japan Holdings Inc.
Executive Officer, Head of Finance, Coca-Cola
Bottlers Japan Inc.
March 2019 Representative Director, Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)
Vice President, Chief Financial Officer (Head ofFinance, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
Representative Director, Coca-Cola Bottlers Japan
Inc. (incumbent)
Vice President, Chief Financial Officer (Head ofFinance, Coca-Cola Bottlers Japan Inc.
December Chairman and Representative Director, Q’SAI
2019
CO., LTD
January 2022 Vice President and Chief Financial Officer (Headof Finance)
Representative Director, Vice President, and CFO
of Coca-Cola Bottlers Japan Inc. (incumbent)
March 2022 Representative Director & Chairman, Coca-Cola
Bottlers Japan Business Services Inc.
November Representative Director, Chairman and President,
2022
Coca-Cola Bottlers Japan Business Services Inc.
(incumbent)

39

Term of office

One yearfrom theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023

One yearfrom theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023

Number ofshares held(Thousands ofshares)73This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.
Position

Name

Date of birth

Brief history
April 1977

Director

Director

Director

Hiroko Wada

Hirokazu
YamuraCelso
Guiotoko

January 3,
1959

Number ofshares held(Thousands ofshares)

One yearfrom theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023－

One yearfrom theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023－

One yearfrom theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023－

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 Representative, Office WaDa (incumbent)
May 4, 1952
2004
May, 2009 Outside Director, Aderans Holdings Co., Ltd.
June 2016 Outside Director, Shimadzu Corporation(incumbent)
March 2019 Outside Director, Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)
March 2019 Outside Director (Audit & Supervisory
Committee member), Unicharm Corporation(incumbent)
October 2006Joined Michinoku Coca-Cola Bottling Co., Ltd

September
28, 1977

Term of officeFebruary
Director, Michinoku Coca-Cola Bottling Co., Ltd
2009
March 2012 Managing Director, Michinoku
Coca-Cola Bottling Co., Ltd.
March 2013 Senior Managing Director, Michinoku Coca-Cola
Bottling Co., Ltd
March 2014 Representative Director & President, Michinoku
Coca-Cola Bottling Co.,
Ltd. (incumbent)
March 2020 Outside Director, Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)
December Joined Banco Bradesco SA
1983
January 1985 Senior Manager, Arthur Andersen (Accenture)
March 1996 System Director, Toshiba America Electronic
Components, Inc.
December Solution Service Vice President, i2 Technologies
1997
Japan, Inc.
May 2004 Vice President & CIO (Chief Information Officer),
Nissan Motor Co., Ltd.
April 2006 Corporate Vice President & CIO, Nissan MotorCo., Ltd.
April 2014 Senior Corporate Vice President & CIO, Nissan
Motor Co., Ltd.
June 2017 Statutory Auditor, Nissan Motor Co., Ltd.
March 2019 Outside Director (Audit & Supervisory
Committee member), Coca-Cola Bottlers Japan
Holdings Inc.
Executive Officer, Global Chief Digital Officer,
Nishimoto Co., Ltd.
March 2020 Director, Global Chief Digital Officer, NishimotoCo., Ltd. (incumbent)
March 2020 Outside Director, Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)

40This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.
Position

Director(Audit &Supervisory
Committee
member)Name

Hiroshi
Yoshioka

Date of birth

Brief history

Term of office

Number ofshares held(Thousands ofshares)

October 26,
1952

April 1975 Joined Japan Radio Co., Ltd.
January 1979 Joined Sony Corporation
October 2001Representative Director and President, Sony
Ericsson Mobile Communications Corporation
April 2003 CVP, Sony Ericsson Mobile Communications
Corporation AB
November Corporate Executive, SVP, Sony Corporation
2005
April 2008 Corporate Executive, EVP, Sony Corporation
April 2009 Executive Deputy President Officer, Sony
Corporation
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.
March 2023 Outside Director (Audit & Supervisory
Committee member), Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)

Two years
from theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023

3

Two years
from theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023－

July 1992
Joined Lehman Brothers Holdings Inc.
October 1996Vice President, Lehman Brothers Japan Inc.
June 1999
May 2004

Director(Audit &Supervisory
Committee
member)Nami Hamada

August 3,
1964

Senior Vice President, Lehman Brothers JapanInc.
Representative Director, HDH Advisors Japan
Limited.
Principal, HDH Capital Management Pte Ltd.

December
2006
March 2009 Founder, Managing Director, Mile High Capital
Inc. (incumbent)
August 2017 Director, Ecoplexus Japan K. K
February
Chief Operating Officer, Vesper Group Japan K.K.
2019
March 2019 Outside Director (Audit & Supervisory
Committee member), Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)
May 2020 Outside Director (Audit Committee Member),
MetLife Insurance K.K.
June 2022 Outside Director (Audit Committee Member,
Nominating committee member, Compensationcommittee member), MetLife Insurance K.K.
(incumbent)
June 2022 Outside director, Shimadzu Corporation(incumbent)

41This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.
Position

Name

Date of birth

Brief history

Number ofshares held(Thousands ofshares)Two years
from theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023－

Two years
from theOrdinary
GeneralMeeting of
Shareholders
held onMarch 2023

－

2004
2005

Director(Audit &Supervisory
Committee
member)Director(Audit &Supervisory
Committee
member)Sanket Ray

Stacy Apter

April 25,
1973

July 14,
1966

Joined The Coca-Cola Company
Joined HINDUSTAN COCA-COLA
BEVERAGES PRIVATE LIMITED (INDIA)
August 2016 CEO, COCA-COLA BEVERAGES VIETNAM
LIMITED
January 2019 Chief Operating Officer for mainland China, The
Coca-Cola Company
November President of India and Southwest Asia, The Coca2020
Cola Company (incumbent)
March 2023 Outside Director (Audit & Supervisory
Committee member), Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)
2005
Joined The Coca-Cola Company
May 2018 Director, Treasury, The Coca-Cola Company
July 2018
Assistant Treasurer, The Coca-Cola Company
October 2018Chief of Staff to the Chairman and CEO, The
Coca-Cola Company
January 2021 Deputy Treasurer, The Coca-Cola Company
March 2021 Vice President & Treasurer, The Coca-Cola
Company
October 2022 Vice President, Treasurer and Corporate Finance,
The Coca-Cola Company (incumbent)
March 2023 Outside Director (Audit & Supervisory
Committee member), Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)

Term of office

Total

13

(NOTE) 1. Hiroko Wada, Hirokazu Yamura, Celso Guiotoko, Hiroshi Yoshioka, Nami Hamada, Sanket Ray and Stacy Apter are
Outside Directors.
2. The Group has introduced a corporate executive officer system to accelerate the execution of business and clarify
responsibilities. The total number of executive officers is 12, including representative directors.

42

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Information of outside directors
Currently, three of the five directors (excluding directors who are members of the Audit and Supervisory Committee) and all
four directors who are members of the Audit and Supervisory Committee are outside directors.
a. Appointment of outside directors
Category

OutsideDirector

OutsideDirector

OutsideDirector

Name

Relationship with the Company

Status of appointment

The Company has appointed Hiroko Wada as a Director (Outside Director) in order for her to utilize,
for the management of the Company, the considerable experiences and global knowledge she has
gained thus far as officer at The Procter & Gamble Company and as Representative Director at
Hiroko Wada －Toys”R”Us Japan Ltd.
There is no relationship of special interest between her and the Company, and no risk that conflictsof interest with general shareholders. Therefore, the Company has designated her as an independent
director.
Hirokazu
Yamuraisthe The Company has appointed Hirokazu Yamura as a Director (Outside Director) in order for him toRepresentative Director and utilize, for the management of the Company, the considerable experiences and knowledge he has
President of Michinoku Coca- gained thus far as the Representative Director and President of Michinoku CCBC.
Cola Bottling Company, Co., Ltd. The Company also has transactions with the group companies of Michinoku CCBC, but the(hereafter “Michinoku CCBC),” transaction volume is very small. In addition, the trading prices and other terms and conditions
which is a trading partner of the applied to these transactions are fair and consistent with the trading prices and other terms andGroup. The amount of sale of conditions applied to transactions with other trading partners. We therefore believe that these group
Hirokazu
products, etc. to Michinoku companies of Michinoku CCBC pose no risk of obstruction of our free and fair business activities.
YamuraCCBC is equivalent to 0.4% of the The Company has designated Hirokazu Yamura as an independent director based on our judgment
Company’s consolidated net that the current transactional ties with Michinoku CCBC and its group companies do not have any
revenue, and the amount of significant impact on our business, and that there is no relationship of special interest between him
purchase of products, etc. from and the Company, and no risk of causing any conflict of interest with general shareholders.
Michinoku CCBC is equivalent to
0.3% of the consolidated revenueof Michinoku CCBC.
The Company has appointed Celso Guiotoko as a Director (Outside Director) in order for him toutilize, for the management of the Company, the considerable experiences and global knowledge hehas gained thus far as Nissan Motor Co., Ltd. (“Nissan”) as well as Nishimoto Co., Ltd.
Celso
There is no relationship of special interest between him and the Company, and no risk that conflicts－
Guiotokoof interest with general shareholders. Therefore, the Company has designated him as an independent
director.

OutsideDirector(Audit &HiroshiSupervisory Yoshioka
Committee
member)OutsideDirector(Audit &Nami
Supervisory Hamada
Committee
member)OutsideDirector(Audit &Sanket Ray
Supervisory
Committee
member)OutsideDirector(Audit&
Stacy Apter
Supervisory
Committee
member)Hiroshi Yoshioka has considerable experiences and global knowledge gained at the Coca-Colabottling company within Japan and Sony Corporation. Based on his extensive experience as acorporate executive, he is expected to provide advice on all areas including decision making related
to important managerial decisions, handling of expected risks and the internal control system, and－the Company hereby requests the election of Yoshioka as a Director serving on the Audit andSupervisory Committee (Outside Director).
There is no relationship of special interest between him and the Company, and no risk that conflictsof interest with general shareholders. Therefore, the Company has designated him as an independent
director.
Nami Hamada has considerable experiences on Finance and Accounting gained as a proprietor ofher own finance consulting company and considerable experiences and global expertise gained as acorporate executive at Lehman Brothers Japan Inc. and possesses management supervisory
experience as Statutory Auditor at Shimadzu Corporation and MetLife Insurance K.K. Based on her
extensive experience as a corporate executive and her expertise in the field of finance, she isexpected to provide advice as a Director serving on the Audit and Supervisory Committee on all－areas including decision making related to important managerial decisions, handling of expectedrisks and the internal control system, and the Company has appointed Hamada as a Director servingon the Audit and Supervisory Committee (Outside Director).
There is no relationship of special interest between her and the Company, and no risk that conflictsof interest with general shareholders. Therefore, the Company has designated her as an independent
director.
Sanket Ray is President of India Sanket Ray is President of India and Southwest Asia, The Coca-Cola Company, who has
and Southwest Asia, The Coca- demonstrated strong leadership in mainly commercial at The Coca-Cola Company and has
Cola Company. The Company has considerable management experiences as a manager at business units in the Asia region. Based onentered into contracts for his extensive experience as a global corporate executive, he is expected to provide advises as amanufacturing and sales of Coca- Director serving on the Audit and Supervisory Committee on all areas including decision making
Cola and other products and use of related to important managerial decisions, handling of expected risks and the internal control
trademarks, etc. with The Coca- system, and the Company has appointed Ray as a Director serving on the Audit and Supervisory
Cola Company.
Committee (Outside Director).
Stacy Apter is Vice President,
Stacy Apter is Vice President, Treasurer and Corporate Finance, The Coca-Cola Company, who has
Treasurer and Corporate Finance, demonstrated strong leadership and support to the Board of Directors, particularly in a variety of
The Coca-Cola Company. The
fields such as global financial risk oversight and enterprise risk management at The Coca-Cola
Company has entered into
Company. Based on her extensive experience as a global corporate executive, she is expected tocontracts for manufacturing and provide advises as a Director serving on the Audit and Supervisory Committee on all areas including
sales of Coca-Cola and otherdecision making related to important managerial decisions, handling of expected risks and the
products and use of trademarks, internal control system, and the Company has appointed Apter as a Director serving on the Audit
etc. with The Coca-Colaand Supervisory Committee (Outside Director).
Company.

43

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

b. Criteria or policies for independence when appointing an outside director
We consider our outside director (including candidates) sufficiently independent when all of following criteria are found tobe irrelevant to him/her as a result of our reasonably possible range of investigation:(a) Currently and in the past 10 years, the person works/worked in the Company or its subsidiary.
(b) Currently and in the past one year, the person is/was a major business partner (the Group accounts for 2% or more ofwhose consolidated net sales in the most recent fiscal year) or works/worked in the business partner.
(c) Currently and in the past one year, the person is/was a major business partner (which accounts for 2% or more of ourconsolidated net sales in the most recent fiscal year) or works/worked in the business partner.
(d) Currently and in the past one year, the person is/was a consultant, a certified public accountant, an attorney, or otherreceiving annual compensation of 10 million yen or more from the Company, in addition to officers' compensation.
(e) Currently and in the past one year, the person is/was a recipient of donations of 10 million yen or more per year from theCompany, or works/worked in the recipient entity; and(f) Relatives within the second degree of kinship of those falling under (a) to (e) above.
c. Functions and roles of outside directors in corporate governance
The Audit and Supervisory Committee is composed entirely of outside directors, so that the system to monitor the executionof duties by directors has been established. We receive appropriate advice from outside directors (excluding directors who aremembers of the Audit and Supervisory Committee) who are knowledgeable other than our Group, and outside director who aremembers of the Audit and Supervisory Committee in a third-party perspective.
d. Collaboration of outside directors' supervision or audit with internal audits and external accounting audits, as well as its
relationship with internal control department
Outside directors who are not members of the Audit and Supervisory Committee receive reports and express their opinion oninternal audit, external accounting audit and internal controls at the Board of Directors meetings. Also, outside directors who
are members of the Audit and Supervisory Committee receive reports and express their opinion on them at the meetings ofBoard of Directors and the Audit and Supervisory Committee.
e. Outline of Limited Liability Agreements
In its Articles of Incorporation, the Company has established provisions concerning limited liability agreements with Directors(excluding those who is not an Executive Director, etc.) in order to ensure that Directors (excluding those who is not an
Executive Director, etc.) can demonstrate the roles expected of them and the Company can invite and select competent persons
as Directors (including, not limited to, Outside Directors).
The Company has entered into limited liability agreements with seven Directors to limit their liability for damages in the eventthat he/she fails to perform his/her duties stipulated in Article 427, Paragraph 1 of the Companies Act. The limit of liability in
the Agreement shall be equal to the minimum liability limit stipulated by laws and ordinances.
f. Outline of the Directors’ and officers’ Liability Insurance Policy
In order to ensure that directors (including those who are members of the Audit and Supervisory 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 stipulated in
Article 430-3, Paragraph 1 of the Companies Act 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, Hiroko Wada, Hirokazu Yamura, Celso Guiotoko, Hiroshi Yoshioka, Nami Hamada, Sanket Ray and Stacy Apter and,as well as the executive officers of the Group, as insured, in the event of claims for damages by shareholders, the Company,
employees or other third parties arising from acts in the course of their duties as directors and officers of the Company during
the term of the policy.
g. Assignment of support staff for outside directors
Outside directors (excluding who are not members of the Audit and Supervisory Committee) are supported by staff from thecorporate governance department, and outside directors who are members of the Audit and Supervisory Committee members
are supported by secretariat of the Audit and Supervisory Committee (assistant employees).

44This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(3) Audit Status
a. Audit and Supervisory Committee Audit Status
The Audit and Supervisory Committee serves as the auditing body of the Company that is comprised exclusively of external
directors, including multiple independent external directors. To strengthen the management oversight function, these external
directors that serve as the member of the Audit and Supervisory Committee have been granted with a voting right in the Boardof Directors meetings, in addition to the right to state their opinions in shareholders’ meetings on matters pertaining to thedesignation of board members and their remuneration, among others.
The four directors who are members of the Audit and Supervisory Committee audit the execution of duties by directors andexecutive officers based on relevant laws and regulations, the Articles of Incorporation, and the audit standards for our Audit
and Supervisory Committee, through periodic meetings with representative directors and reports on the results of audits
conducted by the Audit Office. One of four directors who is a member of the Audit and Supervisory Committee runs a financeconsulting company herself and has extensive experience in finance and accounting, and therefore possesses considerable
knowledge of finance and accounting.
In the current fiscal year, we held the Audit and Supervisory Committee Meetings five times with the following attendanceof each member.

Name

Number of times held

Number of attendances

Irial Finan
Celso Guiotoko

5
5

5
5

Nami Hamada

5

5

Vamsi Mohan Thati

55Main matters discussed by the Audit and Supervisory Committee include the development of audit policies, confirmationthat the internal control system is put in place and properly operated, preparation of audit reports, reappointment of accounting
auditors, approval regarding the remuneration of accounting auditors, formation of opinions concerning the election andremuneration of directors, etc.
The members of the Audit and Supervisory Committee use their broad knowledge and extensive experience to express
objective audit opinions from an independent and neutral standpoint and to present candid opinions at the Board of Directors
Meetings and Audit and Supervisory Committee Meetings.
b. Internal Audit Status
We have established the Audit Office (15 members) as an internal audit department to ensure compliance with laws andregulations, appropriate activities and operations, protection of assets, and reliability of financial reporting.
As for the annual audit policy and audit plan of the Audit Office, the prior consultation with the Audit and Supervisory
Committee shall be held, and the Audit and Supervisory Committee shall receive reports on the results of audits conducted by
the Audit Office from time to time.
In addition, the Audit and Supervisory Committee and the Audit Office receive explanations of the audit plan from theexternal accounting auditor at the beginning of the fiscal year, and request explanations and reports from time to time regarding
the status of the audit during the fiscal year and the results of year-end audit.
c. Accounting Audit Status(a) Name of audit firm
Ernst & Young ShinNihon LLC(b) Continuous audit period
5 years45

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(c) The certified public accountants who performed the accounting audit
Certified public accountant who performed the accounting audits
Designated Limited

Engagement

Liability Partner

Partner

Designated Limited

Engagement

Liability Partner

Partner

Designated Limited
Liability Partner

Engagement
Partner

Tokuya Takizawa
Makoto Matsumura
Keita Tsujimoto(d) Composition of assistants involved in audit work
13 certified public accountants and 48 others were involved as audit assistants.
(e) Audit firm selection policy and reasons(Evaluation of the audit firm by Audit & Supervisory Committee)
The Audit and Supervisory Committee evaluates the accounting auditor’s quality control structure, global auditing
system, and appropriateness, independence, etc. of the audit comprehensively, confirms that the audit by Ernst & Young
ShinNihon LLC is appropriate and reasonable, and passes a resolution for its reappointment
In the case that it is determined that the accounting auditor falls under any of the dismissal events listed in the items of
Article 340, Paragraph 1 of the Companies Act, the Audit and Supervisory Committee will remove the accounting auditor
with the consent of all members. In this case, a Committee member selected by the Audit and Supervisory Committee will
disclose the removal and its reason at the Meeting of Shareholders convened for the first time after the removal.
Additionally, concerning dismissal or non-reappointment of the accounting auditor, the Audit and Supervisory
Committee shall decide contents of a proposed resolution they submit to the General Meeting of Shareholders, in the event
they determine that it is necessary to do so in cases such as where the accounting auditor is recognized to have difficulty
in properly fulfilling its auditing duties.
(f) Evaluation of the Accounting Auditor by the Audit and Supervisory Committee
The Audit and Supervisory Committee evaluates the accounting auditor’s quality control structure, global auditing
system, and appropriateness, independence, etc. of the audit comprehensively, confirms that the audit by Ernst & Young
ShinNihon LLC is appropriate and reasonable, and passes a resolution for its reappointment.
(g) Details of remuneration to independent auditors①Compensation for auditing certified public accountants
Previous fiscal year

Current fiscal year

Category

Remuneration for on
audit assurance services(Millions yen)

Remuneration for on
non-audit assurance
services (Millions yen)

Remuneration for on
audit assurance services(Millions yen)

Remuneration for on
non-audit assurance
services (Millions yen)

The Company

75

－

71

－

Consolidated
subsidiaries

147

－

116

10

Total

222

－

187

10

Non-audit services to consolidated subsidiaries was assistance for preparation of integrated report.

46

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

②Remuneration for organizations belonging to the same network as auditing certified public accountants (excluding ①.)
Not applicable.
Previous fiscal year

Current fiscal year

Category

Remuneration for on
audit assurance services(Millions yen)

Remuneration for on
non-audit assurance
services (Millions yen)

Remuneration for on
audit assurance services(Millions yen)

Remuneration for on
non-audit assurance
services (Millions yen)

The Company

－

－

－

－

－

2

2

15

－

2

2

15

Consolidated
subsidiaries
Total

Non-audit services provided by the same network of certified public accountants (EY Strategy and Consulting Co., Ltd.) was anadvisory service for disclosing information on climate change risks.
③Other material remuneration to independent auditors
Previous fiscal year (January 1, 2021 to December 31, 2021) and current fiscal year (January 1, 2022 to December 31,
2022)
Not applicable.
④Details of non-audit services rendered by independent auditors
Previous fiscal year (January 1, 2021 to December 31, 2021)
The Company paid the Accounting Auditor remuneration, etc., for the preparation of comfort letters in connection with
the issuance of corporate bonds in services other than those described in Article 2, Paragraph 1 of the Certified Public
Accountants Act (non-audit services).
Current fiscal year (January 1, 2022 to December 31, 2022)
Not applicable.
⑤Reason for the Audit and Supervisory Committee to Have Agreed the Amount of Renumeration Payable to the Accounting
Auditor, etc.
The Audit and Supervisory Committee confirmed and reviewed the appropriateness and adequacy of the audit plans,
audit hours, implementation status and grounds for the estimate of the remuneration as submitted by the accounting
auditor before granting approval to the remuneration payable to the accounting auditor.
(4) Officer compensation, etc.
①Compensation 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 talents from the perspective of diverse
nationalities and experiences.
(ii) Compensation composition ratio emphasizing performance-linked compensation, resulting in providing sufficientincentives for profitable growth.
(iii) Introduce the system to further improve mid- to long-term corporate value and reinforce alignment of interests with theshareholders.
(b). Supervisory Officers (Directors serving on the Audit and Supervisory Committee and Outside 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 upon deliberation by the Audit andSupervisory 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
February 9, 2023.

47

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

② Details and procedures on compensation for Executive Directors and Executive Officersa.
Compensation structure

Base salaryRetirement payments



Fixed compensationAnnual bonus








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 a
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.

Variable compensation*2 Long-term incentives







(1) PSU(Performance
Share Units)

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
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 (Special RSU).
Granted as an incentive for achieving medium tolong term performance targets.
The number of shares to be issued shall be
48

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)*1 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 allowance,etc.
The portion of thecompensation
shown on the left
provided to
Directors will not
exceed thefollowing amount.
Compensation limit
for Directors(excluding
Directors servingon the Audit andSupervisory
Committee):
Maximum amountof 180,000,000

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) RSU (Restricted Stock
Units)



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).

shares per 3 years
multiplied by themarket value at thetime of issue(approved byresolution no. 4 of2023 Annual
General Meeting of
Shareholders) (fivein number at thetime of theresolution,
excluding Directors
serving on the
Audit andSupervisory
Committee)*1, Regarding fringe benefits, to support the execution of assignments outside the home country, compensation for difference in tax rates
between other countries and Japan, housing allowance, etc. are provided in accordance with the internal regulations approved at theBoard of Directors Meeting through deliberations by the Audit and Supervisory Committee.
*2, In the Proposal No. 5 of the 65th Company's Annual General Meeting of Shareholders for the fiscal year 2023 to held on March 28,2023 (hereinafter referred to as the "Annual General Meeting"), it was approved to introduce a new long-term incentive (stock-based
compensation) plan under which a trust established by the Company will acquire the Company's shares and deliver them to the
executive directors, the maximum amount of the new plan is 2,880 million yen in total for three fiscal years and the maximum numberof shares is 1,800,000 shares for three fiscal years. The number of directors at the conclusion of this General Meeting of Shareholders
is 5 (including 2 executive directors), excluding directors who are members of the Audit and Supervisory Committee.

b.

Process for determining compensation
Approval of compensation including the amount of performance-linked compensation for Executive Directors shall bedelegated 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 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 and objectivity of procedures for determining compensation.
The reason for the delegation is that the Representative 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 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 inline with the above decision-making policy.

49

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(a) Activities of the Board of Directors
The Board of Directors' activities concerning the determination of Officer compensation for FY2022 are as follows:(1) Number of meetings of the Board of Directors held over one year from January 2022 to December 2022: 7(2) Main subjects discussed by the Board of Directors concerning Officer compensation and Officer compensation
structure in FY2022:
・Payment of 2021 annual incentive and non-vesting of 2019 long-term incentive for Directors and Executive
Officers
・2021 special award
・Revision of internal regulations regarding fringe benefits
・FY2022 compensation for directors (excluding Directors serving on Audit and Supervisory Committee) and
Executive Officers
・Report on the number of share units to be granted to the Directors and Executive Officers in FY2022
・2022 special RSU
・Vesting scheme for stock-based compensation(b) Activities of the Audit & Supervisory Committee
Activities of the Audit & Supervisory Committee concerning the determination of Officer compensation for FY2022
are as follows.
(1) Number of meetings of the Audit and Supervisory Committee held over one year from January 2022 to December
2022: 5(2) Main subjects discussed by the Audit & Supervisory Committee concerning Officer compensation and Officer
compensation structure in FY2022:
・Payment of 2021 annual incentive and non-vesting of 2019 long-term incentive for Directors and Executive Officers
・2021 special award
・2022 Executive compensation proposal
・Revision of internal regulations regarding fringe benefits
・FY2022 Compensation for Audit and Supervisory Committee members
・2022 special RSU
・2022 Executive individual objectives
・Vesting scheme for stock-based compensationc.

Compensation level
Compensation is decided according to the responsibilities by utilizing data from compensation surveys performed byexternal research organizations and taking into account the level of compensation provided at companies such as
domestic and overseas companies of similar scale in similar industries with the intent to provide a level of compensationthat enables recruitment and retention of talented people who are highly diverse in terms of nationality, experience, etc.

Image of compensation structure (in case of Representative Director & President)

50This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

③ 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 assupervisors and auditors of CCBJI business. Compensation levels are set according to the role of the Director by utilizing datafrom compensation surveys performed by external research organizations and taking into account the level 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 andSupervisory 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 accordancewith 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 delegating these authorities to the
President and Representative Director is that the President and Representative Director is considered to be the most appropriate
person to evaluate the responsibilities 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.
④Details of compensation for Officers for FY2022
a.

Total amount of compensation, etc. by position, total amount of compensation, etc. by category and headcount of Officers
Total amount by category of compensation, etc. (million yen)
Total
Headcount of
BasicLong-term
Positioncompensation
Retirement Annual
Other
Officers(people)incentives(million yen) compensation payments
bonus
Note 6:Note 4:Note 5:
Directors (excluding
Directors serving on the
Audit and Supervisory
Committee)

1,013
(43)

540
(43)

21
(－)

181
(－)

250
(－)

21
(－)

5
(3)

72
(72)

72
(72)

－

－

－

－

(－)

(－)

(－)

(－)

4
(4)

(of which Outside Directors)
Directors (serving on the
Audit and Supervisory
Committee)(of which Outside Directors)
21
181
250
21
1,085
611
9
Total
(115)
(115)
(7)
(－)
(－)
(－)
(－)
(of which Outside Directors)
Note 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 andSupervisory 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 of compensation for Directors serving on the Audit and Supervisory
Committee (five at the time of the resolution) shall be 100 million yen per year.
Note 2: Separately, in accordance with the resolution taken at the 65th Annual General Meeting of Shareholders held on March 28, 2023,
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” and “RSU”) to Executive Directors shall beannual amount not exceeding in total the value of 180,000,000 shares multiplied by the market value of the monetarycompensation receivables and cash at the time of issue within 3years.
Note 3: Basic compensation includes an amount equivalent to fringe benefits (compensation for difference in tax rates between othercountries and Japan, housing allowances, etc.), etc.
Note 4: Long-term incentives include PSU, RSU and Special RSU.
Note 5: Other is retention award (refer to e. Others).

51

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

b.

Total amount of compensation, etc. for those whose total compensation, etc. amounts to 100 million yen or more
Total amount by category of compensation, etc. (million yen)
Total
Company
Positioncompensation
Basic
Long-termcategory
Retirement
AnnualOther(million yen)compensation
incentives
payments
bonus
Note:3
Note:1
Note 2Name

Calin Dragan
Bjorn Ivar Ulgenes

Representative

FilingDirectorcompany

Representative

FilingDirectorcompany

317

14

127

182

14

655

179

7

53

68

7

315

Note 1: Basic compensation includes an amount equivalent to fringe benefits (compensation for difference in tax rates between othercountries and Japan, housing allowances, etc.), etc.
Note 2: Long-term incentives include PSU, RSU and Special RSU.
Note 3: Other is retention award (refer to e. Others).
c.

Significant employee salary received by the officer concurrently serving as an employee
Not applicabled.

Payment rate, etc. of incentive compensation(a) 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 predetermined targets and actual achievement, weighted average achievement for FY2022.
The achievement level of the company's business performance for the period under review was 109%, despite the continuing
difficult business environment, due to the contribution of improved profitability resulting from price revisions, especially interms of sales volume, sales revenue, and market share. The individual performance evaluation-based payout rate for Executive
Directors was 100%. Based on the company performance and individual performance evaluation, the Audit and Supervisory
Committee discussed and reviewed the final payout rate (rate of actual annual incentive paid against target payout) for FY2022.
As a result, it was determined that 105% is reasonable.
(b) PSU granted in 2020 is subject to a 3-year performance period from 2020-2022 and assessed using the corporate performance
metrics of consolidated ROE and consolidated sales growth rate. Performance was assessed against predetermined targets andactual achievement for 2020-2021, weighted average achievement for 3-year period was -193%. The vesting rate of PSU granted
against target value fluctuates between 0 - 150% depending on achievement levels of performance targets. Based on the abovementioned result, the payout rate of the PSU (rate of PSU’s granted against target) is 0%.
For the 2021 PSU, the vesting rate is expected to be 0%, as the challenging business environment is expected to continue in
2023, the final year of the evaluation period.
The vesting rate of PSU granted in 2022 is calculated based on ROE for the final fiscal year of the relevant performance period
and the annual average sales growth rate for the relevant performance period. Therefore, it is not possible to estimate the payout
rate reasonably at this time.

e.

Others
A total of 21 million yen was paid in cash in March 2023 as a retention award for FY2022 to maintain the motivation to leadthe change, taking into account the disadvantages caused by differences between Japan and the other countries due to the levelof compensation in each country, rising prices, and the rapid depreciation of the yen.
The Audit and Supervisory Committee deliberated on the decision to grant this retention award and determined that it wasappropriate.

52

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(5) The Company's shareholding status① Standards and concept applied to the classification of investment shares
The Company holds shares of other companies (hereafter “investment shares”) either for the purpose of pure investment or otherpurpose that is strictly not for pure investment and classifies them separately according to this difference. The shares classified
as shares for pure investment are held for the purpose of gaining benefit when they are sold at the timing the stock price fluctuatesfavorably or when the company that issued the shares pays the dividend to the shareholders. The Company also holds shares inother companies that are not strictly for pursuing such returns from investment.
② Shareholding status of Coca-Cola Bottlers Japan Inc.
Among the Company and its consolidated subsidiaries, the company that records the largest amount of investment shares in thebalance sheet (the largest shareholding company) is Coca-Cola Bottlers Japan Inc. (hereafter “CCBJI”), and its shareholding
status is as follows:a. Investment shares that are not held for pure investment purpose(a) The policy of shareholding, method of verifying the rationality of holding the shares, and the result of the verification by
the Board of Directors, etc. on the validity of holding the shares of individual company brands
In principle, the Company has a policy of not owning the so-called crossholding shares.
However, there are cases in which the Company acquires and holds such shares to create business opportunities andmaintain and strengthen its relationships with business partners and local communities. The Company shall evaluate andreport on the cost of holding major cross-shareholdings and the return on investment thereof in Board Meeting, and workon reducing the cross-shareholdings based on such evaluation.
(b) Number of company brands and the amount recorded in the balance sheet
Number of
Total amount recorded on thecompany brands
balance sheet (in million yen)(Brand)Unlisted shares stock

105

2,909

Shares other than unlisted
shares45

8,358(Brands that the Company increased the number of shares in this fiscal year)
Number of
Total amount spent tocompany brands increase the number of
Reason for increasing the number of shares(Brand)shares held (in million yen)
Unlisted shares

-

-

-

Shares other than unlisted
shares13

17

The Company increased the number ofshares of this company brand as it is amember of the shareholding association of
the counterparty company.

(Brands that the Company decreased the number of shares in this fiscal year)
Total amount received fromNumber of
selling and decreasing thecompany brands
number of shares (in million(Brand)yen)
Unlisted shares

5913

Shares other than unlisted
shares111,422(c) Information on specified investment shares, the number of shares of each brand of deemed holding shares, amountrecorded in the balance sheet, etc.

53

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Specified investment shares
Current fiscal year

Previous fiscal year

Whether the
Purpose and quantitative effect of holding the shares,
Number of shares
Number of sharescounterparty company is
Brand
Amount recorded in Amount recorded in and reason for increasing the number of shares
holding the Company’s(Note1)
the balance sheet
the balance sheet
shares or not(in million yen)(in million yen)
The Company is holding the shares of this company
400,000
400,000 brand for the purpose of creating new beverage
Nishi-Nippon
business opportunities with this company, as well as
Yes
Railroad Co., Ltd.
for the purpose of building, maintaining or
988
1,044 strengthening the relationship with the local
economy.
Central Japan
54,10054,100 The Company is holding the shares of this company
Railway
brand for the purpose of creating new beverageNo877
830 business opportunities with this company.
Company
East Japan
115,000
115,000 The Company is holding the shares of this company
Railway
brand for the purpose of creating new beverageNo865
813 business opportunities with this company.
Company
231,320
231,320 The Company is holding the shares of this company
IZUMI Co., Ltd.
brand for the purpose of creating new beverageNo691
746 business opportunities with this company.
The Company is holding the shares of this company
34,19034,085 for the purpose of creating new beverage business
Oriental Land
opportunities with this company.
No
Co., Ltd.
The Company increased the number of shares of this655
661 company as it is a member of the shareholding
association of the counterparty company.
Japan Airport
100,000
100,000 The Company is holding the shares of this company
Terminal Co.,brand for the purpose of creating new beverageNo653
480 business opportunities with this company.
Ltd.
14,084
14,084 The Company is holding the shares of this company
McDonald's
brand for the purpose of creating new beverage
No
Corporation
487
434 business opportunities with this company.
The Company is holding the shares of this company
90,00090,000Mitsubishi Heavybrand for the purpose of building, maintaining orNoIndustries, Ltd.
strengthening the relationship with the company(Note 2)471
239
brand as an important business partner.
248,262
244,366 The Company is holding the shares of this company
brand for the purpose of creating new beveragebusiness opportunities with this company. In thecurrent fiscal year, due to the share exchange
Fuji Co., Ltd.
between Fuji Co., Ltd and MAXVALU NISINIHON Yes
454
477 CO., LTD, the number of shares of Fuji Co., Ltd
allocated to the shares of MAXVALU NISINIHON
CO., LTD increased compared to the shares held by
MAXVALU NISINIHON CO., LTD.
247,000
247,000 The Company is holding the shares of this company
Seibu Holdings
brand for the purpose of creating new beverage
No
Inc.
356
266 business opportunities with this company.
The Company is holding the shares of this company
111,826
111,595 for the purpose of creating new beverage business
opportunities with this company.
AEON CO., LTD.
No
The Company increased the number of shares of this311
302 company as it is a member of the shareholding
association of the counterparty company.
The Company is holding the shares of this company
116,800
116,800
AEON KYUSHU
brand for the purpose of creating new beverageNoCO., LTD.
283
259 business opportunities with this company.
West Japan
42,00042,000 The Company is holding the shares of this company
Railway
brand for the purpose of creating new beverageNo241
202 business opportunities with this company.
Company
58,37958,379 The Company is holding the shares of this company
Axial Retailingbrand for the purpose of creating new beverage
No
Inc.
198
197 business opportunities with this company.

54

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Brand

Current fiscal year

Previous fiscal year

Number of shares

Number of shares

Purpose and quantitative effect of holding the shares, and reason forincreasing the number of shares
Amount recorded in Amount recorded in(Note 1)the balance sheet
the balance sheet(in million yen)(in million yen)

89,50584,326H2O RETAILIG
Corporation

Valor Holdings
Co., Ltd.
DAISYOCORPORATIONLIFE
CORPORATION

115

68

31,20031,20057

67

48,10048,100504718,213

17,47948

60

18,384

18,198Bronco Billy Co.,
Ltd.
45

43

Hankyu Hanshin
Holdings, Inc.

10,80010,80042

35

FukuokaFinancial Group,Inc.

13,882

13,8824227

22,65521,94039

40

United Super
Market Holdings
Inc.
GREENLANDRESORT Co.,Ltd.

32,78032,780373564,20064,20035

26

Daiichi Kotsu
Sangyo Co., Ltd.

44,00044,00033

31

16,00016,00032

29

YAOKO CO.,
LTD.

4,400

4,400

30

31

COLOWIDE Co.,Ltd.

14,238

14,238

25

23

4,400

4,400

25

25

Misumi Co., Ltd.

WDI Corporation.

Belc CO., LTD.

Whetherthecounterp
arty
companyisholdingtheCompany’s
shares ornot

The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company increased the number of shares of this company
brand as it is a member of the shareholding association of thecounterparty company.

No

The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.

No

The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company increased the number of shares of this company
brand as it is a member of the shareholding association of thecounterparty company.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company increased the number of shares of this company
brand as it is a member of the shareholding association of thecounterparty company.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of building, maintaining or strengthening the relationshipwith this company and the local economy.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company increased the number of shares of this company
brand as it is a member of the shareholding association of thecounterparty company.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
The Company is holding the shares of this company brand for the
purpose of creating new beverage business opportunities with thiscompany.
55

No

No

No

No

No
(Note 2)

No

No
No
Yes
No
No
No
No

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Current fiscal year

Previous fiscal year

Purpose and quantitative effect of holding the shares, andNumber of shares
Number of shares
Amount recorded in Amount recorded in reason for increasing the number of shares(Note 1)the balance sheet
the balance sheet(in million yen)(in million yen)
The Company is holding the shares of this company brand
238,931214,851 for the purpose of creating new beverage business
DYNAM JAPAN
opportunities with this company.
HOLDINGS Co.,The Company increased the number of shares of thisLtd.
24
22 company brand as it is a member of the shareholding
association of the counterparty company.
The Company is holding the shares of this company brand
35,75933,514 for the purpose of creating new beverage business
Mr Max Holdings
opportunities with this company.
Ltd.
The Company increased the number of shares of this24
20 company brand as it is a member of the shareholding
association of the counterparty company.
The Company is holding the shares of this company brand
136,430
135,842 for the purpose of creating new beverage business
POPLAR. CO.,opportunities with this company.
LTD.
The Company increased the number of shares of this19
21 company brand as it is a member of the shareholding
association of the counterparty company.
6,000
6,000 The Company is holding the shares of this company brand
HALOWS CO.,for the purpose of creating new beverage businessLTD.
17
17 opportunities with this company.
36,00012,000 The Company is holding the shares of this company brand
ROUND ONEfor the purpose of creating new beverage businessCorporation
17
16 opportunities with this company. The number of shares
increased due to a stock split in the current fiscal year.
33,96633,966 The Company is holding the shares of this company brand
YAMADAHOLDINGS CO.,for the purpose of creating new beverage business
16
13 opportunities with this company.
LTD.

Brand

KICHIRIHOLDINGS &Co., Ltd.

24,00024,000

13

10

TOKYU
CORPORATION

7,500

7,500

12

11

ATOM
CORPORATION

14,64014,6401111

KAWACHI
LIMITED

2,000

2,000

4

4

RETAILPARTNERS CO.,LTD.
KANNANMARUCORPORATION

3,000

3,000

4

4

8,000

8,000

3

4

Maruyoshi Center
Inc.

1,000

1,000

3

3

Keisei Electric
Railway Co., Ltd.

714

871

3

2

Maxvalu TokaiCo., Ltd.

715

715

2

2

Kyusyu ElectricPower Company,
Inc

365

365

0

0

Seven & i
Holdings Co.,Ltd.

－

148,010－748

The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company is holding the shares of this company brandfor the purpose of creating new beverage business
opportunities with this company.
The Company has been holding the shares of this company
brand for the purpose of creating new beverage business
opportunities with this company but sold all of these sharesin 2022.
56

Whether thecounterparty
company isholding theCompany’s sharesor not

No

No

No

No

No

No

No

No
No
No
No
No
No
No
No
No

No

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Current fiscal year

Previous fiscal year

Purpose and quantitative effect of holding the shares, and reason
Number of shares
Number of shares
Amount recorded in Amount recorded in for increasing the number of shares(Note 1)the balance sheet
the balance sheet(in million yen)(in million yen)
The Company has been holding the shares of this company－
176,887
OKUWA Co.,brand for the purpose of creating new beverage businessLtd.
opportunities with this company but sold all of these shares in
－
168
2022.
The Company has been holding the shares of this company－
32,000 brand for the purpose of creating new beverage business
KOBE BUSSAN
Co., Ltd.
opportunities with this company but sold all of these shares in－
143 2022.
The Company has been holding the shares of this company－
113,200 brand for the purpose of creating new beverage business
KANSAI FOOD
MARKET LTD.
opportunities with this company but sold all of these shares in－
121 2022.
The Company has been holding the shares of this company－
ROYAL
31,640 brand for the purpose of creating new beverage business
HOLDINGS Co.,
opportunities with this company but sold all of these shares in－Ltd.
60 2022.
－
31,528 The Company has been holding the shares of this company
brand for the purpose of creating new beverage business
Keikyu－opportunities with this company but sold all of these shares in
Corporation
36 2022.

Brand－
MINISTOP CO.,
LTD.

－
－

MatsukiyoCocokar
a & Co.

23,570
33
7,551

－

32

－

50,630Three F Co., Ltd.

－SUGIHOLDINGS Co.,
LTD.

－
－

15
52
0

The Company has been holding the shares of this company
brand for the purpose of creating new beverage business
opportunities with this company but sold all of these shares in
2022.
The Company has been holding the shares of this company
brand for the purpose of creating new beverage business
opportunities with this company but sold all of these shares in
2022.

Whether thecounterparty
company isholding theCompany’s
shares or not
No

No

No

No

No

No

No

The Company has been holding the shares of this company
brand for the purpose of creating new beverage businessNo
opportunities with this company but sold all of these shares in
2022.
The Company has been holding the shares of this company
brand for the purpose of creating new beverage businessNo
opportunities with this company but sold all of these shares in
2022.
MAXVALU NISHINIHON CO., LTD. became a wholly owned
subsidiary of Fuji Corporation through a share exchange.
No

MAXVALU－
3,896
NISHINIHON－
8CO., LTD.
(Note) 1. The results of the assessment of the quantitative effect of holding the shares of individual company brands are omitted
from this document for the purpose of maintaining confidentiality. The Company, however, is regularly verifying the effectof holding these shares from the standpoint of business interests and costs, etc.
2. The company that issued the shares held by the Company does not cross-hold the Company’s shares, but its groupcompany is holds the Company’s shares.
3. “－” means that the Company does not hold any shares of the brand indicated by this mark.
Deemed holding shares
No shares fall under this category.
b. Investment shares held for the purpose of pure investment
No shares fall under this category.
c. Investment shares initially held for the purpose of pure investment that the Company changed to investment shares held not
for the purpose of pure investment during this fiscal year
No shares fall under this category.
d. Investment shares initially held not for the purpose of pure investment that the Company changed to investment shares held
for the purpose of pure investment during this fiscal year
No shares fall under this category.

57

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

V. Accounting information
1. Preparation of consolidated financial statements and financial statements(1) The Group’s consolidated financial statements has been prepared in accordance with IFRS pursuant to the provisions of Article
93 of the "Ordinance on Terminology, Forms and Preparation Methods of Consolidated Financial Statements" (Ordinance of the
Ministry of Finance No. 28 of 1976; hereinafter referred to as the "Ordinance on Consolidated Financial Statements").
(2) The Company’s financial statements have been prepared in accordance with the "Regulations on Terminology, Forms andPreparation Methods of Financial Statements" (Ordinance of the Ministry of Finance No. 59 of 1963; hereinafter referred to as
the "Ordinance on Financial Statements").
The Company qualifies as a company submitting special financial statements and prepares the financial statements inaccordance with the provisions of Article 127 of the Ordinance on Financial Statements, etc.

2. Note on independent audit
The Company has been audited by Ernst & Young ShinNihon LLC for the consolidated financial statements and the financial
statements as of and for the year ended December 31, 2022 pursuant to the provisions of Article 193-2, Paragraph 1 of the Financial
Instruments and Exchange Act.

3. Remarkable efforts to ensure for presentation of consolidated financial statements, etc. and the establishment ofstructures to appropriately prepare consolidated financial statements, etc. in accordance with IFRSThe Company has been continuing special efforts to ensure the appropriateness of consolidated financial statements and theestablishment of a system to appropriately prepare consolidated financial statements based on IFRS. The details are as follows:(1) In order to properly understand the contents of accounting standards and to establish structures that can respond to changes inaccounting standards, the Company has become a member of the Financial Accounting Standards Foundation and actively
participated in training sessions held by the bodies that set accounting standards.
(2) With respect to the adoption of IFRS, the Company has obtained from time-to-time press releases and statements issued by theInternational Accounting Standards Board and ascertained the current standards.

58This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

1. Consolidated financial statements(1) Consolidated financial statements① Consolidated statement of financial position(Millions of yen)
Notes

Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

AssetsCurrent assets
Cash and cash equivalents

6,31

110,497

84,074

Trade and other receivables
Inventories

7,31
8

105,320
67,583103,346
71,051Other financial assets
Other current assets

31
13

1,320
16,275542
13,108300,995

272,12210

434,994

425,00910,17
11

25,144
66,21921,841
65,865

281

322

31

19,511

15,88828

13,96020,581

13

6,006

5,110

566,116554,615

867,111826,737

Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Investments accounted for using the equity
methodOther financial assets
Deferred tax assets
Other non-current assets
Total non-current assets
Total assets

59This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Millions of yen)
Notes

Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables

14,31

103,260

108,254

Bonds and debts

16,31

30,9901,000

Lease liabilities

17,31

5,122

Other financial liabilities

31

4,050
－

Income taxes payable
Provisions

1,139
9
16,085

20,339155,535

136,641

16,31

156,622

155,70117,31
31

22,462－

18,146
8

Provisions

18
15

17,6052,137

17,817
1,761

Deferred tax liabilities

28

17,37917,157

Other non-current liabilities

19

Other current liabilities

15
19

654
1,272
－

Total current liabilities
Non-current liabilities:
Bonds and debts
Lease liabilities
Other non-current financial liabilities
Net defined benefit liabilities

Total non-current liabilities
Total liabilities
EquityCapital stock

2,920

3,147

219,125

213,737

374,660

350,378

20

15,232

15,232

Capital surplus
Retained earnings

20
20

450,832
109,273451,264
94,209Treasury share
Accumulated other comprehensive

20(85,661)(85,667)

20

2,644

1,177

Equity attributable to owners of the parent
Non-controlling interests

492,320131

476,216
142

Total equity

492,451

476,358

867,111826,737

income(loss)

Total liabilities and equity

60This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

②【Consolidated statements of profit or loss】(Millions of yen)
Notes

Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Continuing operations
Revenue
Cost of goods sold

5,23

Gross profit

785,837
435,332

807,430
455,675

350,505

351,755

363,750

365,295

Other income

24
26

10,138

9,312

Other expenses

26

17,702

7,332

(162)

46

Operating Income(loss)
Financial revenue

27(20,971)377(11,513)
264

Finance expense

27

1,089

1,242

(21,683)(12,491)(6,653)(4,432)(15,029)(8,059)12,505－Net Income(loss) for the year

(2,525)(8,059)Net income (loss) for the year attributable to
Owners of parent
Income (Loss) from continuing operations
attributable to owners of parent(15,008)(8,070)12,505

－

(21)

11

(83.68)69.72(45.00)－(13.96)(45.00)

Selling, general and administrative expenses

Investment income(loss) on equity method

Income (Loss) for the year before income
taxes
Income tax expense(benefit)

28

Net income(loss) for the year fromcontinuing operations
Discontinued operations
Net income(loss) for the year fromdiscontinued operations

9

Income (Loss) from discontinued operations
attributable to owners of parent
Non-controlling interests
Earnings (loss) per share (yen)Continuing operations
Discontinued operations
Earnings (Loss) per share

35

61

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

③ 【Consolidated statements of comprehensive income】(Millions of yen)
Notes

Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Net Income(loss) for the year

Current fiscal year
(From January 1, 2022
to December 31, 2022)(2,525)(8,059)Remeasurements of defined benefit plans

(395)

1,523

Share of other comprehensive income of equity
method investees

(12)

－

Net change in financial assets measured at fairvalue through other comprehensive income

854

292

Subtotal

448

1,815

2,836

1,250

Other comprehensive income(loss)

29

Items that will not be reclassified subsequently toincome or loss:

Items that may be reclassified subsequently toincome or loss:
Cash flow hedges
Subtotal
Total other comprehensive income (loss) for the
year

2,836

1,250

3,283

3,065

Total comprehensive income (loss) for the year759

(4,994)780(5,005)(21)

11

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

62

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

④ 【Consolidation statements of changes in equity】
For the year ended December 31, 2021
(Millions of yen)

Note
Balance as of January 1, 2021
Comprehensive income(loss)
for the year
Net loss for the year
Other comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.
Dividends of surplus
Purchase of treasury stock
Disposal of treasury stock
Transactions of sharebased payment
Reclassification fromaccumulated othercomprehensive
income(loss) to retained
earnings
Reclassification fromaccumulated othercomprehensive
income(loss) to nonfinancial assets
Changes due to loss
control

Total transactions withowners etc.
Balance as of December 31,
2021

Capitalstock
15,232Equity attributable to owners of the parent company
Accumulated otherAccumulatedcomprehensive
otherincome of disposal
Share Retained Treasury comprehensive groups classified aspremium earnings Sharesincomeheld for sale
Total
450,605 120,473 (85,654)
1,095(107) 501,643

Noncontrollinginterests
450

Total
502,093－－(2,503)－－－(2,503)(21)(2,525)

－

－

－

－

3,283

－

3,283

－

3,283

－

－

(2,503)

－

3,283

－

780

(21)

759

22
20
20

－
－
－

－
－
(0)

(8,967)
－
－

－
(8)
1

－
－
－

－
－
－

(8,967)
(8)
0

－
－
－

(8,967)
(8)
0

21

－

227

－

－

－

－

227

－

227

20

－

－

378

－

(378)

－

－

－

－

20

－

－

－

－

(1,356)－(1,356)－(1,356)

－

－

△107

－

－

107

－

△297

△297

－

227

(8,697)(7)(1,734)

107(10,103)(297)(10,400)

15,232450,832

109,273(85,661)2,644－

492,320131

492,451

63

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

For the year ended December 31, 2022
(Millions of yen)

Note
Balance as of January 1,
2022(Before restatement)
Comprehensive income forthe year
Net income (loss) for theyear
Other comprehensive
income (loss)
Total comprehensive income(loss) for the year
Transactions with owners,
etc.
Dividends of surplus
22

Equity attributable to owners of the parent company
Accumulated
other
CapitalShare
Retained Treasury comprehensive
stock
premium
earnings
sharesincomeTotal

15,232450,832

109,273(85,661)2,644

492,320131

492,451－－(8,070)－－(8,070)11(8,059)

－

－

－

－

3,065

3,065

－

3,065

－

－

(8,070)－

3,065(5,005)

11(4,994)

Noncontrollinginterests

Total

－

－

(8,967)－－(8,967)－(8,967)Purchase of treasury stock

20

－

－

－

(6)

－

(6)

－

(6)

Disposal of treasury stock

20

－

(0)

－

0

－

0

－

0

Transactions of sharebased payment

21

－

432

－

－

－

432

－

432

Reclassification fromaccumulated othercomprehensive income toretained earnings

20

－

－

1,974

－

(1,974)－－－

Reclassification fromaccumulated othercomprehensive income tonon-financial assets

20

－

－

－

－

(2,558)(2,558)－(2,558)－432(6,993)(5)(4,532)(11,099)－(11,099)

15,232451,264

94,209(85,667)

1,177

476,216142

476,358

Total transactions withowners, etc.
Balance as of December 31,
2022

64

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

⑤ 【Consolidated statements of cash flows】
Note

For the year ended
December 31, 2021

(Millions of yen)
For the year ended
December 31, 2022

(21,683)(12,491)

12,841－

57,160744(12,841)
(708)
235
(261)
928
162
(1,519)45,786
20
－
－
(655)
(237)
750
(46)
(4,587)

1,604

2,111

(9,320)
597
3,568
9,426
2,126
749
(74)
43,7351
259(844)(10,122)
2,953

2,603
(3,450)
2,611
1,379
2,541
4,910
2,521
43,7670237(654)(4,820)4,187

35,982

42,717(39,263)(32,674)

4,377

7,127

7,400

－

(53)
7,614
34,490
705

(25)
2,432
－
51

15,271(23,090)

Cash flows from operating activities
Income (Loss) before income taxes from continuing
operations
Income (Loss) before income taxes from discontinued
operations
Adjustments for:
Depreciation and amortization
Impairment loss
Gain on sales of subsidiaries’ stock
Gain on sales of stocks of subsidiaries and affiliates
Change in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Investment gain(loss) on equity method
Gain on sale of property, plant and equipment
Loss on disposal and sale of property, plant and equipment
and intangible assets
Decrease (increase) in trade and other receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase(decrease) in trade and other payables
Increase (decrease) in net defined benefit liabilities
Increase (decrease) in other liabilities
Other operating activities
SubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Income taxes refund

12
9
26

Net cash provided by operating activities
Cash flows from investing activities
Acquisitions of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment andintangible assets
Proceeds from collection of loans receivable resulting fromsales of stock in subsidiaries
Purchases of other financial assets
Proceeds from sale of other financial assets
Proceeds from sale of stock of subsidiaries
Other investing activities
Net cash used in investing activities

65

10

9

9

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Millions of yen)
For the year ended
December 31, 2021
Cash flows from financing activities
Increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Bond redemption
Dividends paid
Proceeds from disposal of treasury stock
Purchases of treasury stock
Repayments of lease liabilities
Net cash used in provided by financing activities

30
30
30
22

30

Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year

666

For the year ended
December 31, 2022

(50,000)(1,072)－(8,967)0(8)(7,088)(67,134)(38)(1,065)(30,000)(8,967)0(6)(5,974)(46,050)(15,881)
126,378(26,422)
110,497

110,497

84,074

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

【Notes to consolidated financial statements】
1. Introduction of reporting company
The Company is a holding company domiciled in Japan and is listed on the Tokyo Stock Exchange Prime Market. Under
the Coca-Cola brand, the Company, and its subsidiaries (collectively, the "Group") engage in purchases, sales, bottling,
packaging, distribution and marketing of carbonated beverages, coffee beverages, tea-based beverages, mineral water andother soft drinks in Japan. After 1999, we have integrated our operations with five Coca-Cola bottlers, and became a CocaCola bottler with a business covering approximately 45 million people in 22 prefectures in the Kinki, Chugoku, Shikoku
and Kyushu regions. In April 2017, the Company entered into a share exchange contract whereby Coca-Cola West Co., Ltd.
became the sole parent company and Coca-Cola East Japan Co., Ltd. became a wholly-owned subsidiary. Coca-Cola West
Co., Ltd. changed its trade name to Coca-Cola Bottlers Japan Inc., and its entire business, excluding the group operational
management business and assets management business, was inherited by its wholly-owned subsidiary “New CCW
Establishment Preparation Company Co., Ltd.” (whose trade name changed to Coca-Cola West Co., Ltd.), and Coca-Cola
West Co., Ltd. had its corporate form transferred to a holding company. In January 2018, Coca-Cola Bottlers Japan Inc. wasrenamed Coca-Cola Bottlers Japan Holdings Inc. to clarify its role as a holding company.
The Group’s consolidated financial statements consist of the Company, subsidiaries and associates. The consolidated
financial statements were approved by our Representative Director & President, Calin Dragan and our Representative
Director Vice President and Chief Financial Officer (Treasurer), Bjorn Ivar Ulgenes on March 25, 2023 and are considering
the events after the reporting period to that date (see notes 37, "events after the reporting period").
2. Basis of preparation(1) Framework for application of financial reporting
The Group’s consolidated financial statements have been prepared in accordance with the IFRS established byInternational Accounting Standards Board. The Group meets all of the requirements of a designated international
accounting standard specified company as set forth in Article 1-2 of the consolidated financial statements Regulations,so the provisions of Article 93 of the said Regulations are applied.
(2) Measurement basis
Consolidated financial statements have been prepared on the basis of cost except for measurement at fair value suchas financial instruments described in notes 3, "Significant accounting policies."(3) Functional currency and presentation currency
Consolidated financial statements are stated in Japanese yen, the currency of the Company's principal economic
environment ("functional currency"). All consolidated financial information is rounded to the nearest million yen unlessotherwise stated.

67

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

3. Significant accounting policies
The significant accounting policies and the basis of measurement used by the Group for the preparation of theconsolidated financial statements is as follows: Unless otherwise indicated, these accounting policies are applied
continuously for all reporting periods presented.
(1) The basis of consolidation(a) Subsidiary
Consolidated financial statements consist of the financial statements of the Company and companies controlled by
the Company's groups ("subsidiary"). The Group controls an investee when the Group has power over the investee,
has exposure or rights to change returns arising from its involvement with the investee, and has the ability to affectthose returns through its power in the investee. If any of these events or changes in the environment occur, the Company
will reassess the control of the investee.
Subsidiary's financial statements are included within the scope of consolidation from the date the Company acquired
control of subsidiary and are excluded from the scope of consolidation on the date the Company loses control.
Non-controlling interest of subsidiary’s income and share are presented in "non-controlling interest" in the
consolidated statements of profit or loss and the consolidated statements of financial position.
Transactions with non-controlling interest that do not involve a loss of our control are accounted for as equity
transactions. The difference between the fair value of consideration paid and the amount equivalent to the acquisition
or loss equity in the carrying amount of subsidiary's net assets is recognized in equity. If the Group loses control of thesubsidiary, the remaining interest in the entity is remeasurement at the fair value of the date of loss of control, and allchanges in carrying amount are recognized in profit or loss.
All intercompany transactions, outstanding and unrealized gains have been eliminated in consolidation. Unrealized
losses are also eliminated unless there is evidence that the related asset has been impaired.
(b) Investment in associate accounted for using equity method
Associate is a company that is not controlled by the parent but has a significant influence. Normally, an investee'sinterest of 20% to 50% of the voting rights (directly or indirectly) is considered to be influential.
In consolidated financial statements, investments in associate are accounted for using the equity method. Under
equity method, investments in associate are initially recognized at cost, and subsequently, the Group's share of profit
or loss after the associate share acquisition is recognized in profit or loss, while changes in the Group's share of
associate's other comprehensive income are recognized in other comprehensive income. Dividends income ordividends receivable from associate is deducted from carrying amount of its investments. To the extent that the Group’s
interest in associate is equal to or exceeds the initial investment including long-term receivables, companies do notrecognize any further losses unless a liability arises, or the Group pays on behalf of other companies.
Unrealized gains on transactions between the Group and associate are eliminated to the extent of the interest in
associate. Unrealized losses are also eliminated unless there is evidence that the related asset has been impaired.
The impairment loss related to investments in associate is measured by comparing the recoverable amount withcarrying amount-of investments. Impairment loss is recognized in profit or loss and reversed if there are changes in theassumptions used to determine the recoverable amount of investments.

68This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) Business Combination
Business combination is accounted for using the acquisition method. Acquisition date is the date of acquisition ofcontrol of acquiree. The consideration paid for the acquisition was determined on acquisition date as the sum of the asset
transferred in exchange for control of acquiree, the liability assumed and the fair value of the acquisition date of equity
instrument issued by the Company. Other acquisition-related costs, such as brokerage commissions, legal fees, due
diligence, and other professional compensation, do not constitute consideration of business combination and are expensed
in the consolidated statements of profit or loss as incurred.
For each business combination, the Group recognizes non-controlling interest of acquiree in either fair value or a
proportionate share of acquiree's identifiable net assets. If the sum of the consideration transferred, the non-controllinginterest of acquiree and the fair value in the acquisition date of the previously owned equity interest in acquiree exceeds
the fair value of identifiable net assets, the difference is recognized as goodwill in assets. If the sum of the considerationtransferred, the non-controlling interest of acquiree, and the fair value in the acquisition date of the previously held equity
interest in acquiree is less than the net assets of the acquired subsidiary, the difference is immediately recognized in the
consolidated statements of profit or loss as a gain on negative goodwill.
(3) Foreign currency translation
Foreign currency transaction is translated into the work functional currency of each group company at the exchange
rate of the transaction date.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of eachcompany at the exchange rate of the reporting date. Non-monetary assets and liabilities denominated in foreign currencies
for measurement in fair value are translated at the exchange rate on the date determined by fair value. Non-monetary
items denominated in foreign currencies and measured at cost are translated at the exchange rate of the transaction date.
Foreign currency translation gains and losses are recognized in profit or loss.
(4) Business segments information
Operating segment is reported in a manner consistent with the internal reporting presented to the chief operating
decision maker. The chief operating decision maker is responsible for allocating resources and evaluating the performanceof the operating segment. The Board of Directors is positioned as the chief operating decision maker in the Group.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits, and short-term investments with a maturity of threemonths or less from acquisition date, which are readily convertible into cash and bear insignificant risks of changes invalue.
(6) Inventories
Inventories are measured at the lower cost and net realizable value. Discounts, rebates, other similar items and interest
rates until the par value is reached are deducted from its cost. Manufacturing costs include direct materials, direct labor,
and manufacturing overhead. Net realizable value is calculated at estimated selling prices less estimated selling costs andestimated selling expenses.
The Group typically calculates the cost of inventories based on the weighted-average method. If the net realizablevalue of inventories is less than its cost, the difference is recognized as expense in the consolidated statements of profit
or loss.
(7) Assets held for sale and discontinued operations
Non-current assets or discontinued groups whose carrying amount will be recovered primarily through a saletransaction, rather than through continuous use, are classified as held for sale. To be classified as held for sale, a company
must be available for immediate sale in its current state and the probability of such a sale must be very high, provided
that the Group’s management is committed to implementing the sale plan and that the sale is generally expected to becompleted within one year. Once classified as held for sale, they are measured at the lower of carrying amount or fairvalue less costs to sell and are not depreciated or amortized
Discontinued operations include those components of an entity that have been disposed of or classified as held for saleand are classified as such if they comprise one of the Group’s businesses or geographical areas and there are plans todispose of that one business or geographical area.

69

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(8) Property, plant and equipment
After initial recognition, property, plant and equipment is measured at cost less accumulated depreciation andimpairment losses. Expenditures incurred to expand, improve, or improve asset productivity, allowances, or efficiencies,
or to extend the useful life of an asset are included in cost of the related asset as capital expenditures, while repairs andadministrative expenses are recognized as expenses when incurred.
Depreciable amount is the cost of asset less estimated residual value. Depreciation is principally calculated using thestraight-line method over the estimated useful life for each item of property, plant and equipment as follows:
Estimated useful life (Years)
Buildings and structures
Machinery and vehicles

2 - 603 - 20

Sales equipment

2 – 11

Depreciation methods, estimated useful life, and estimated residual values are reviewed at the end of each fiscal year,
and any changes are applied prospectively as a change in accounting estimate. Land and construction in progress are notdepreciated.
Gains and losses from the sale or disposal of asset are measured as the difference between carrying amount and salevalue in "Other income" or "Other expense" in the consolidated statements of profit or loss.
(9) Goodwill
Goodwill generated by business combination is not amortized but is measured at cost less accumulated impairment
losses after initial recognition. Goodwill annually also tests for impairment whenever events or changes in circumstancesindicate a potential impairment may occur.
To test for impairment, the goodwill generated by the business combination is allocated to the respective cashgenerating unit or cash-generating unit group that are expected to benefit from business combination synergies. Cashgenerating unit is the smallest identifiable group of assets that generates cash inflows independently. The cash-generating
unit or cash-generating unit group to which goodwill is allocated are the smallest levels within the enterprise where thegoodwill is monitored for internal control purposes.
If the recoverable amount of a cash-generating unit or cash-generating unit group is less than it is carrying amount asa result of the impairment test, the difference is recognized as an impairment loss. Impairment loss first reduces the
carrying amount of the goodwill allocated to the cash-generating unit or cash-generating unit group, and then allocatesand reduces it to asset other than the goodwill on a pro rata basis based on the carrying amount of each asset within the
cash-generating unit or cash-generating unit group. Impairment loss for goodwill has not been reversed in recognized inreporting periods after it is recognized.

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This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(10) Intangible assets
An Intangible asset is an identifiable non-monetary asset that does not have any physical reality to provide economic
benefits in the future. Intangible assets are initially recognized at cost or manufacturing cost. Subsequent to initialrecognition, intangible assets are measured at cost less accumulated amortization and impairment losses. The Groupevaluates intangible asset's useful life to determine whether it is finite or indefinite and, if it is finite, evaluates useful life
based on the expected usable period.
Intangible assets acquired separately are initially measured at cost. If the intangible asset acquired from businesscombination meets the definition of intangible asset, is identifiable, and the fair value can measure reliably, it is identified
separately from the goodwill and measured at the fair value of the acquisition date. Expenditures incurred in acquiring
software are recognized as an intangible asset. Development cost of internally produced software is recognized as anintangible asset when it is technically feasible and is more likely than not that the software will benefit in the future.
The principal intangible asset with finite useful life is software, and amortization is calculated using the straight-line
method over the estimated useful life (5-10 years).
The amortization method, estimated useful life, and estimated residual value are reviewed at the end of each fiscal year
and applied prospectively as a change in accounting estimate in the event of any change.
Contract related intangible asset
In connection with the acquisition of the former Coca-Cola East Japan Co., Ltd., the Group's contract related intangible
asset is concluded with The Coca-Cola Company. This contract relates to the exclusive rights to manufacture, distribute,and sell the Coca-Cola brand products in certain areas.
The contract is for 10 years and will be renewed without consideration of renewals or extensions.
The Group accounts for contract related intangible asset attributable to bottling contract as an intangible asset withindefinite useful life. The Group believe that it is unlikely that we will not renew or extend the contract due to ourhistorical relationship with The Coca-Cola Company and the possible adverse impact on our franchisors from the nonrenewal of the contract. Therefore, it is difficult to predict the periods during which assets may generate net cash flows.
Contract related intangible assets are not amortized but are tested for impairment annually and whenever events orchanges in circumstances indicate a potential impairment may occur.
(11) Leases (as a lessee)
When concluding a contract, the Group determines whether the contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange
for consideration.
The Group recognizes Right-of-use assets and lease liabilities at the commencement date of the lease. Right-of-use
assets are measured at cost on the commencement date. After the commencement date, the Right-of-use assets aremeasured at cost less any accumulated depreciation and any accumulated impairment losses using a cost model. The lease
period of the right-of-use asset is estimated as the non-cancellable lease period, together with both periods covered by anoption to extend the lease if the lessee is reasonably certain to exercise that option; and periods covered by an option toterminate the lease if the lessee is reasonably certain not to exercise that option. Right-of-use assets are depreciated byusing the straight-line method, generally over 15 years from the commencement date.
Lease liabilities are measured on the commencement date at the present value of the lease payments that have not been
made as of that date. After the commencement date, the carrying amount of the lease liabilities are adjusted to reflect theinterest rate on the lease liabilities and the lease payments made. If the lease liabilities are revised or the terms of thelease are changed, the lease liabilities will be remeasured, and the right-of-use asset will be revised.

71This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(12) Impairments of property, plant and equipment, intangible asset and Right-of-use asset
The Group performs impairment tests for intangible assets with indefinite useful life annually or for events or changes
in circumstances that may indicate a potential impairment. Other non-monetary assets are tested for impairment when
there is an indication that the carrying amount of asset or cash-generating unit exceeds recoverable amount.
The recoverable amount of individual asset or cash-generating unit is the higher of fair value less costs of disposal orvalue in use. Value in use is determined as the present value of the future cash flows expected to be generated by the
related asset. If the recoverable amount of an individual asset cannot be estimated, the recoverable amount of the cashgenerating unit to which the asset belongs is estimated. The discount rate reflects the current market valuation of the timevalue of money and the risks inherent in the asset. In determining fair value less costs of disposal, the Group also considers
recent market transactions conditions. If such transactions are not identifiable, an appropriate valuation model is used todetermine the fair value less costs of disposal.
If the carrying amount of asset or cash-generating unit exceeds recoverable amount, the carrying amount is reduced to
its recoverable amount and the impairment loss is recognized in profit or loss. The impairment loss of cash-generating
unit is allocated based on the carrying amount of each relevant asset. Impairment loss is recognized as "Other expense."
At each reporting date, the Group assesses whether there is any indication that the impairment loss recognized in prioryears will decrease or cease to exist. If there is an indication of reversal of impairment and the estimate used in calculating
recoverable amount changes, an impairment loss is reversed. Impairment loss is reversed up to the amount not exceeding
the carrying amount after deducting the required depreciation or amortization from the carrying amount in the event the
impairment loss is not recognized. Reversal of impairment loss is recognized as "Other income."(13) Financial instruments(a) Financial asset and financial liability - recognition and derecognition
The Group initially recognizes trade and other receivables on the date they are incurred. Other financial assets andfinancial liability are initially recognized on the transaction date on which they become contract parties.
The financial asset is derecognized if the contract rights to the cash flows arising from the financial asset expire, if
the financial asset is transferred and substantially all the risks and rewards of ownership of the financial asset aretransferred, or if control over the asset of transfer loses. Financial assets created or retained by the Group are
derecognized and recognized as a separate asset or liability.
Financial liability is derecognized from contract obligations upon discharge, cancellation, or expiration. Financial
asset and financial liability are offset and presented on a net basis in the consolidated statements of financial position
only if they have a legally enforceable right to offset the recognized amounts and intend to settle on a net basis or tosimultaneously cash the asset and settle the liability.
(b) Classification and measurement of financial asset
At initial recognition, financial assets are classified as subsequently measured at amortized cost or fair value.
Financial assets measured at fair value through profit or loss are initially measured at fair value. Financial assets
measured at fair value through other comprehensive income and financial assets measured at amortized cost are initiallymeasured at fair value plus transaction costs directly attributable to the acquisition.
The Group's classification under IFRS 9 is based on facts and circumstances, and the Group designates equity
instrument as an equity instrument measured at fair value through other comprehensive income.
(i) Financial assets measured at amortized cost
Financial asset is classified as measured at amortized cost if both of the following conditions are met:
- if the objective of our business model is to hold financial asset in order to collect contractual cash flows; and- if, by contract terms, the condition that a cash flows that is solely payment of principal and interest on the principal
amount outstanding gives rise on a specified date.
(ii) Financial assets measured at fair value
If any of the above two conditions are not met, the financial asset is classified as measured at fair value. For
financial assets measured at fair value, the Group decided whether to make an irrevocable designation for eachfinancial instrument, except for the equity instrument held for trading purposes that must be measured at fair value
through the profit or loss, or at fair value through other comprehensive income.
For derivatives, see "(e) Derivative and hedge accounting."

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This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Financial asset are classified into the following categories for subsequent measurement.
(i) Financial asset measured at amortized cost
They are measured amortized cost based on effective interest method and if any, impairment loss is deducted.
Gains or losses arising from effective interest method or derecognition are recognized in profit or loss.
(ii) Financial asset measured at fair value
They are measured at fair value as of the reporting date. Changes in fair value are recognized in profit or loss orother comprehensive income, depending on the classification of the financial asset. Dividends income arising fromthe equity instrument designated as measured at fair value through other comprehensive income is recognized in
profit or loss. In addition, in the event the derecognition of equity instrument designated as measured at fair value
through other comprehensive income, the cumulative changes in fair value recorded in accumulated othercomprehensive income are reclassified to retained earnings.
(c) Classification and measurement of financial liability
At initial recognition, financial liability is classified as financial liability that is subsequently measured at fair value
through profit or loss or at amortized cost. Financial liability measured at fair value through profit or loss is initiallymeasured at fair value, but financial liability measured at amortized cost is initially measured at the fair value less costs
directly attributable to the acquisition.
Financial liability is classified into the following categories for subsequent measurement.
(i) Financial liability measured at fair value through profit or loss
They are measured at fair value as of the reporting date. Changes in fair value are recognized in profit or loss.
Derivative liability is classified as the financial liability measured at fair value through profit or loss. At initialrecognition, no irrevocable designation is made as a financial liability measured at fair value through profit or loss.
For derivative, see "(e) Derivative and hedge accounting."(ii) Financial liabilities measured at amortized cost
They are measurement at amortized cost based on effective interest method. Gains or losses arising from effective
interest method or derecognition are recognized in profit or loss.
(d) Impairment
The Group makes expected credit loss estimates on the reporting date basis on the recoverability of financial assets
measured at amortized cost. For financial instruments whose credit risk has not increased significantly since initialrecognition, an expected credit loss of 12 months is recognized as allowance for credit loss. For financial instruments
whose credit risk has increased since initial recognition, lifetime expected credit loss is recognized as allowance for
credit loss. However, allowance for credit loss for trade receivables is always measured at an amount equal to thelifetime expected credit losses.
For financial assets whose credit risk has increased significantly, if there is evidence of credit impairment, interest
income is measured multiplied by effective interest rate by the net amount of carrying amount less allowance for credit
loss.
The indicators used by the Group in determining if objective evidence of impairment exists include the following:・ significant financial difficulty of the issuer or the borrower;
・ a breach of contract, such as a default or past due event;・ the lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty,
having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;・it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or・the disappearance of an active market for that financial asset because of financial difficulties.
If the Group does not have a reasonable expectation of collecting the entire or a portion of the financial asset, theamount is deducted directly from the carrying amount of the financial asset (write-off). If the credit risk is subsequently
reduced and clearly distinguishable from events that occurred after direct write-offs (e.g., improved credit ratings ofthe obligor), the reversal of write-offs is recognized in profit or loss.

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This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(e) Derivative and hedge accounting
Derivative is initially recognized at the fair value of the date the derivative contract is concluded, and after initialrecognition, it is remeasured at fair value on the reporting date. Recognition of gains or losses resulting fromremeasurement depends on whether the derivative is designated as hedging instrument and, if specified as hedging
instrument, the nature of the hedged item. The Group designates certain derivatives as hedging instruments for cash
flow hedges (certain risks related to asset or liability, or highly probable forecast transaction hedges).
At the inception of the hedging relationships, the Group documents the relationships between hedging instrument
and hedged item, as well as our risk management objectives and strategies for executing these hedging transactions.
The Group also documents the assessment, at the hedge's inception and on an ongoing basis, of whether the derivative
used in the hedge transaction is effective to offset changes in the cash flows of the hedged item.
The Group evaluates the hedge effectiveness on an ongoing basis and judges that it is effective when all of thefollowing conditions are met:
・ there is the economic relationship between hedged item and hedging instrument;・ the impact of credit risk is not materially superior to changes in value arising from economic relationships; and・ the hedge ratio of hedging relationships is the same as the ratio resulting from the volume of hedged item andhedging instrument actually being hedged.
The effective portions of changes in the fair value of derivative which is designated and qualifying as a hedging
instrument for cash flow hedge are recognized in other comprehensive income. Gains or losses on the ineffective
portion are recognized in profit or loss immediately.
Accumulated gains or losses recognized in other comprehensive income are reclassified to profit or loss in the period
in which the cash flows arising from the hedged item affects profit or loss. However, if the forecast transaction which
is a hedged item results in the recognition of a non-financial asset (e.g., inventories or property, plant and equipment),
the gain or loss previously recognized in other comprehensive income is reclassified into the measurement of the initialcost of the related asset. Such amounts are ultimately recognised as the cost of goods sold in the case of inventories
and as depreciation in the case of property, plant and equipment.
Hedge accounting is discontinued prospectively if the hedge relationship no longer meets the qualifying criteria dueto the extinction or sale of hedging instrument. If the hedged cash flows are expected to be incurred in the future, theaccumulated gains or losses recognized in other comprehensive income will continue to be recognized as anaccumulated other comprehensive income. If a forecast transaction is no longer expected to occur, the cumulative gains
or losses recognized in other comprehensive income is reclassified to profit or loss.

(14) Provision and contingent liabilities
Provision is recognized when the Group has a present legal or constructive obligation as a result of historical events,
it is probable that an outflow of economic resources will occur to settle such obligation and a reliable estimate of theamount of such obligation can be made. Contingent liabilities are not recognized in consolidated financial statements,
but the Group notes them unless there is the possibility of an outflow of resources due to payments.
Provision is measured at the present value of the best estimate of the amount that would be required to pay or transfer
the obligation, taking into account probability that event occurs and its impact. The reversal of the discount by passageof time is recognized as financial expense.

74This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(15) Employee benefits(a) Short-term employee benefits
Short-term employee benefit is recognized as expense when the related services are rendered. When the Group haspresent legal and constructive obligation to be paid as consideration for past service of employees and the amount canbe estimated reliably, the estimated amount of payment is recognized as a liability.
(b) Defined contribution plans
Contributions to the defined contribution plans are recognized as expenses in the period in which the employee
renders the services.
(c) Defined benefit plans
The Group’s net obligation related to defined benefit plans is calculated for each plan by estimating the amount of
future benefits earned by employees prior to the current period, discounting the amount to the present value, anddeducting the fair value of plan asset.
Defined benefit plans obligations are calculated annually by actuaries using the projected unit credit method.
Remeasurement of defined benefit obligations, consisting of the actuarial gains and losses, return on plan asset(excluding interest) and impact of asset ceiling, is recognized in other comprehensive income and immediately
reclassified from accumulated other comprehensive income to retained earnings. The Group calculates net interest
expense (income) for the fiscal year by multiplying the discount rate used to measurement the defined benefit plansobligation (asset) at the beginning of the fiscal year by the defined benefit plans obligation (asset) and the plan asset atthe beginning of the period.
Defined benefit plans obligations at the beginning of the fiscal year take into account all changes in defined benefit
plans obligations (asset) during the fiscal year due to contributions and benefit payments. Net interest expense andother expenses related to defined benefit plans are recognized in profit or loss.
In the event of a change or curtailment in defined benefit plans benefits, the portion of the change in benefits related
to prior service or the gain or loss on curtailment is recognized immediately in profit or loss. When a defined benefit
plan is liquidated, the gain or loss on the settlement is recognized in profit or loss.
(d) Other long-term employee benefits
Long-term employee benefits other than post-employment benefits are recognized as a liability when the Group has
a present legal and constructive obligation to be paid as consideration for employees’ service rendered in the prior year
and the current year, and the amount can be estimated reliably. The Group’s long-term employee benefits is calculatedby discounting the estimated future benefit to its present value.
The discount rate is determined based on the market yield on AA-rated corporate bonds at the reporting date, whichapproximates the average remaining service period.

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This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(16) Income taxes
Tax expenses consist of current tax and deferred tax. These are recognized in profit or loss except for items related tobusiness combination and items recognized directly in equity or other comprehensive income.
If income taxes relate to items that are directly recognized in equity or other comprehensive income, such taxes arealso recognized directly in equity or other comprehensive income.
(a) Current tax
Current tax is the estimated amount of income tax payable or refund receivable in respect to the current taxable
income or loss, adjusted for income taxes payable and refund receivable through the previous year. The amount of
current tax is due to our best estimate of the amount of taxes reflecting uncertainties related to income taxes. Current
tax also includes taxes arising from dividends.
(b) Deferred tax
Deferred tax is recognized for the temporary differences between the carrying amount of asset and liability inconsolidated financial statements and its tax basis. Deferred tax assets and liability are recognized for the temporary
differences between the carrying amount of asset and liability and their tax bases at the reporting date, the carryforward
of unused tax losses and the carryforward of unused tax credits. The amounts are calculated based on the tax rates
expected to apply to the period in which the asset is realized or the liability is settled.
Deferred tax is not recognized in the following cases:
・ temporary differences related to the initial recognition of asset or liability in a transaction other than businesscombination that does not affect either accounting or tax basis;・ temporary differences related to investments in subsidiary, the associate and the joint arrangement, which theGroup will be able to control the timing of the reversal of the temporary difference and which it is probable thatthe temporary differences will not reverse in the foreseeable future; or・ taxable temporary differences arising from initial recognition of goodwill.
Deferred taxes are recognized in the following cases:
・ temporary differences arising from investments in consolidated subsidiary and associate is recognized to theextent that it is probable that it will be reversed and taxable income will be available.
・ for transactions that recognize both asset and liability at the same amount from a single transaction, deferred tax
liability for temporary differences on the recognized asset and deferred tax asset for temporary differences on
the recognized liability are recorded.
Deferred tax assets are recognized as unused tax losses, unused tax credits and deductible temporary difference tothe extent future taxable income is available. Future taxable income is calculated based on business plans for individual
subsidiary in the Group. Deferred tax assets are reviewed at each reporting date and reduced for the portion that is nolonger probable that the tax benefit will be realized. Such reductions are reversed when the likelihood of earning
sufficient taxable income improves.
Unrecognized deferred tax assets are reviewed at each reporting date and recognized to the extent that they areprobable to be available for future taxable income. Deferred taxes are measured using the tax rates expected to apply
when the temporary differences are reversed under laws enacted or substantively enacted at the reporting date.
Deferred tax asset and liability are offset if there is a legally enforceable right to offset current tax asset against
current tax liability and deferred tax assets and liability are related to income taxes levied by the same taxing businessby the same taxing authority.

76This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(17) Equity(a) Ordinary share
Ordinary shares are classified as equity. The incremental costs directly attributable to the issuance of ordinary sharesare deducted from equity, net of tax.
(b) Purchase and disposal of ordinary share (treasury stock)
When the Group acquires treasury stock, the consideration paid including direct transaction costs (net of tax) is
recognized as a deduction of shareholders' equity under the presentation of "Treasury stock". When the Group sells
treasury stock, the difference between the sales price and the carrying amount is recognized as “Capital surplus.”(18) Dividends
Dividends to the Company’s owners is recognized as a liability of the period in which it is approved by the Company’sowners.
(19) Revenue recognition
Revenue is recognized for the contract with customer under IFRS 15 excluding interest and dividends income by
applying the following five steps:
Step 1: Identifying contract with customer
Step 2: Identifying performance obligation in contract
Step 3: Determining the transaction price
Step 4: Allocating the transaction price to performance obligation in contract
Step 5: Recognizing revenue when (or as) performance obligation is met
The Group sells soft drinks such as carbonated beverages, coffee beverages, tea-based beverages and mineral water,
and alcohol. For sales of these products, revenue is recognized primarily at the time of delivery as the customer has
obtained control over the products and believes that the performance obligation is satisfied. In addition, revenue ismeasured at consideration promised in the contract with customer, less discounts, rebates, returns and other items.
In addition, the Company has a point system for its customers, whereby points awarded for the purchase of goods andproducts can be used for future purchases of the Company's goods and products. The Company identifies points as aperformance obligation and allocates the transaction price based on the earned sales price, taking into account the
expected use and execution of the points, and recognizes revenue when the points are used. The transaction price allocatedto the point performance obligation is recorded as "Other current liabilities" in the consolidated statement of financial
position.
(20) Government grants
Government grants are measured at fair value when there is reasonable assurance that the conditions attached to them
are met and the grants will be received. Government grants relating to revenue are recognized in profit or loss over theperiod in which the related costs intended to be compensated by the grant are recognized as an expense and are recorded
as other income. Government grants related to an asset are reduced directly when calculating the carrying amount for theasset. Grants are recognized in profit or loss as a reduction of depreciation expense over the useful life of the applicabledepreciation asset.

(21) Stock-based compensation
The Company has introduced a performance-linked stock-based incentive compensation system for the Company’s
directors (excluding members of the Audit and Supervisory Committee and outside directors) as well as for the executive
officers of the Company and its subsidiaries, with the aim of sharing the merits and risks of stock price fluctuations withthe shareholders and further enhancing the motivation of Executive Directors to contribute to increases in the Company’s
stock price and corporate value in the mid to long term. The compensation calculated under the plan is recognized as an
expense and the corresponding increase in equity.

77This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

4. Critical accounting judgments, estimates and assumptions
In preparing the consolidated financial statements in accordance with IFRS, management is required to make judgments,
estimates and assumptions that affect the application of the Group’s accounting policies and the reported amounts of assets,
liabilities, revenue, and expenses. Actual results may differ from these estimates. The estimates and the assumptions
underlying the estimates are continually reviewed and are based on historical experience and other factors, including future
events, which are believed to be reasonable under the environment. Although the impact of COVID-19 infection is expected
to remain uncertain, accounting estimates are based on the assumption that the traffic is recovering gradually. Accounting
estimates are based on the most appropriate information at the time the consolidated financial statements are filed, but if
any estimates in further into the future changes, the impact of the revises is recognized in the consolidated statements ofprofit or loss and consolidated statements of comprehensive income subsequent to the reporting period in which they arerevised.
Information regarding assumptions and estimates that have a significant impact on the amounts recognized in the
consolidated financial statements is as follows:(a) Useful lives of property, plant and equipment and intangible assets
Property, plant and equipment are depreciated over the estimated useful lives, which is the period over which the future
economic benefits of the asset are expected. If property and equipment is obsolescent in the future or reused for otherpurposes, depreciation expense may increase, and the estimated useful life may be shorter. Details of useful life areprovided in notes 3(8)"Property, plant and equipment."
The right-of-use asset is estimated for the lease term with a non-cancellable period plus a reasonably certain period oftime to exercise the option to extend or not to cancel the lease. Details of the useful life are described in note 3(11) “Leases(as a lessee)”.
Intangible assets are evaluated whether the useful life is definite or indefinite, based on the analyzing of all relevant
factors and predictability of the period over which such intangible asset is expected to result in cash inflows. Intangible
assets with definite useful life are amortized using the estimated useful life, which is the period over which the future
economic benefits are expected. Amortization expense is subject to risks that may increase as a result of changes in theestimated useful life caused by external factors, such as changes in business conditions. Details of useful life are provided
in notes 3(10) "Intangible assets."(The Change in useful life of Property, Plant and Equipment)
The group depreciated its sales equipment mainly over a useful life period of 9 years. However, as consumer spending
patterns have been impacted by the pandemic, we have decided to further strengthen the margin & ROI-focus commercial
strategy from 2022 and determined the policy to utilize our sales equipment on a longer-term basis and more efficiently
than in the past. Also, these are to be reflected in our new mid-term business plan which is under development. As a result,the main useful life of sales equipment has been revised to 11 years and it was applied prospectively from the current
fiscal year.
As a result of this change, operating loss and loss before tax for the Current fiscal year decreased by 8,333 million yen,respectively, compared with those based on the previous useful life.
(b) Impairment test of non-financial assets, including property, plant and equipment, goodwill and intangible asset
In performing impairment tests, the recoverable amount of a cash-generating unit is calculated based on its value in
use. Value in use is mainly estimated by discounting the estimated cash flows to its present value. Key assumptions inestimating recoverable amounts include future cash flows, discount rates, and long-term average growth rates. Mid-termplans, which are the basis for future cash flows, are based on sales and cost plans for the relevant period. While suchassumptions are based on management's best estimates and judgments, these assumptions may also be affected by changes
in economic conditions that have a significant impact on future consolidated financial statements. Details of cashgenerating unit's and recoverable amount's decisions are provided in notes 3 (9) “Goodwill” 3 (12) “Impairments ofproperty, plant and equipment, intangible asset, goodwill and lease asset” and notes 12 "Impairment of non-financial
assets."78

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(c) Provision
In the consolidated statements of financial position, the Group recognizes mainly provision on asset retirement
obligations and environmental measures provision. Provision is measured based on the best estimate of the expenditures
required to settle the obligation. Expenditures required to settle obligations are calculated by considering all factors
affecting future results but may be affected by unforeseeable events and changes in the environment assumed.
The accounting policies and reported amounts of provision are described in notes 3(14)"Provision and contingent
liabilities" and notes 15 "Provisions," respectively.
(d) Recoverability of deferred tax assets
At recognition of deferred tax assets, the Group estimates the timing and amount of future taxable income based on
the Group’s mid-term plans. Estimates of future taxable income are based on mid-term plans. The main assumptions are
the sales plan and cost plan for the period. In assessing the recoverability of deferred tax assets, the Company considers
the expected reversal of deferred tax liabilities, projected future taxable income, and tax planning including assets sales
etc. While such assumptions are based on management's best estimates and judgments, these assumptions may also beaffected by changes in economic conditions that have a significant impact on future consolidated financial statements
Further information regarding the recoverability of deferred tax assets is provided in notes 3(16), "Income taxes" andnotes 28, "Income taxes."(e) Measurement of defined benefit plans obligation
The Groups adopts a variety of retirement benefit plans, including defined benefit plans. The present value and service
cost of defined benefit obligations for all plans are based on actuarial projections. Actuarial projections require estimatesand judgments related to variable factors such as discount rates, rates of salary increase and inflation. The Group isadvised by external actuaries as to the adequacy of actuarial projections, including these variable factors. While actuarial
projections are determined based on management's best estimates and judgments, they may be affected by changes in
uncertain future economic conditions and the establishment and revise of related laws and regulations that could have amaterial effect on future consolidated financial statements.
Further information on the actuarial projections for the measurement of defined benefit obligations is provided in notes
18 “Post-employment benefits”.
(f) Measurement of financial instrument without quoted prices in active market
The Group applies valuation techniques that use unobservable inputs in the market to evaluate the fair value of financial
instruments without quoted prices in an active market. Unobservable inputs may be impacted by uncertain future changes
in economic conditions that could have a material impact on future consolidated financial statements.
Details related to the assessment of financial assets are provided in notes 31, "Financial instruments (7) Fair value offinancial instruments."

79This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

5. Business segments Information(1) Reportable segments
Operating segments are defined as the components of the Group for which separate financial information is available
that is evaluated regularly by the chief operating decision maker in making resource allocation decisions and in assessing
performance.
The Group has a single segment as "Beverage Business”.
Reportable segment

Beverage business

Principal Products and Services
Purchase, manufacture, sale, bottling, packaging, distribution and marketing ofcarbonated beverages such as Coca-Cola, coffee and black-tea beverages, mineralwater, alcohol, etc., vending machine-related business in JapanThe Board of Directors evaluates the performance of its segments in comparison to its peers based on operating profit
reported in accordance with generally accepted accounting standards (IFRS). The accounting methods used for operating
segment reported are the same as those described in notes 3 "Significant accounting policies."(2) Information for each product and service
This information is omitted because the same information is disclosed in "(1) Reportable Segments."(3) Information for each region
Sales revenue by geographic region is omitted because the revenue of domestic sales to external customer accounts forthe majority of sales revenue in the consolidated statements of income.
Since the carrying amount of non-current assets in Japan accounts for the majority of non-current assets in the
consolidated statement of financial position, the description of non-current assets by region is omitted.
(4) Major customer
There is no customer to which sales exceed 10% of the Group’s total revenue.

80This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

6. Cash and cash equivalents
The breakdown of cash and cash equivalents is as follows:
Previous fiscal year
(As of December 31, 2021)(Millions of yen)
Current fiscal year
(As of December 31, 2022)

110,497

84,074110,497

84,074

Cash and demand deposits
Cash and cash equivalents in the consolidated statement ofcash flows

The balance of "cash and cash equivalents" in the consolidated statements of financial position for the previous fiscal year and thecurrent fiscal year coincides with the balance of "Cash and cash equivalents" in the consolidated statements of cash flows.
7. Trade and other receivables
Trade and other receivables consisted of the following:
Previous fiscal year
(As of December 31, 2021)(Millions of yen)
Current fiscal year
(As of December 31, 2022)

Accounts and notes receivable
Accounts receivable - other72,52733,194

77,105
26,382

Allowance for credit losses

(401)

(141)

105,320

103,346

Total

8. Inventories
The breakdown of inventories is as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

3,477
－

3,977

Raw materialWork in progress
Merchandise and finished products

58,961

Supplies
Total

18
61,187

5,145

5,869

67,58371,051

The amount of inventory recorded in "Cost of goods sold" for the previous fiscal year and the current fiscal year was
435,319 million yen and 455,662 million yen, respectively. Of this amount, the amount of write-down of inventory assets
in the previous fiscal year and the current fiscal year was 1,946 million yen and 234 million yen, respectively.

81

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

9. Discontinued operations
On December 15, 2020, the Company’s Board of Directors resolved to sell all of the shares of the Company’s consolidated
subsidiary, Q’sai to Q-Partners Co., Ltd., a company formed for this purchase led by investment funds in which Advantage
Partners Inc. provides services, euglena Co., Ltd., and Tokyo Century Corporation, the transfer of all shares in Q’sai wascompleted on February 1 2021.
(1) Profit/loss from discontinued operations
The gain on the sale of all shares of Q’sai for the current fiscal year was 12,841 million yen, and the income tax expense
related to the sale was 337 million yen. Due to immateriality, no gain or loss other than from sale transactions related to
discontinued operations up to the date of loss of control was recognized in the current fiscal year.
The results of discontinued operations are as follows:(Millions of yen)
For the year ended
December 31, 2021
Discontinued operations
Revenue
Cost of goods soldʷ
ʷ
ʷ

Gross profit
Selling,general & administrative expenses
Other income
Other expenses

ʷ
12,841ʷ

Operating income

12,841

Financial revenue
Finance expenseʷ
ʷ
12,841
337

Income for the year before income taxes
Income tax expense
Net income for the year from discontinued
operations

12,505(2) Cash flows from discontinued operations
The results of discontinued operations are as follows:(Millions of yen)
For the year ended
December 31, 2021ʷ
34,490ʷ

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities(Note) Cash flows from investing activities in the previous fiscal year was due to the proceeds from the sale of allshares of Q’sai.

82This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

10. Property, Plant and Equipment and Right-of-use assets
Changes in the cost, accumulated depreciation, and accumulated impairment losses and the carrying amount ofproperty, plant and equipment are as follows:
Acquisition cost
(Millions of yen)
Property, Plant and Equipment
Total

Right-ofuse assets

18,260794,691

46,234636

4,133

27,6189,195(9,578)(3,326)－(19,746)(13,887)

3,599

－

68

(12,311)

－

－

－

－

－

－

(646)

(646)

－

176,989

233,940

237,182

144,370

9,436

801,916

41,543Acquisition

3,777

7,030

16,548－4,527

31,8836,869

Disposal and saleTransfer fromconstruction inprogress(4,251)(3,328)(7,740)(3,174)－(18,493)(10,503)

2,925

5,146

－

－

(8,071)

－

－

331

689

(290)

(341)

(469)

(80)

2,184

179,771

243,478245,700

140,8545,423

815,226

40,093

Buildings
andstructures

MachineryandvehiclesVending
machineLand

Constructionin progress

168,390

223,862

237,187

146,991

Acquisition

2,996

10,2799,573

Disposal and sale

(3,042)(3,800)8,645

Balance at January 1, 2021

Transfer fromconstruction inprogress
Other
Balance at December 31,
2021

Other
Balance at December 31,
2022

83

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Accumulated depreciation and impairment losses
Property, Plant and Equipment
Total

Right-ofuse assets－(334,189)(16,425)－－(47,453)(6,580)

－

－

(744)

－

8,622

412

－

15,362

6,691

－

－

－

102

(85)

(128,504)(149,490)(1,907)－(366,922)(16,398)

Buildings
andstructures

MachineryandvehiclesVending
machineLand(81,998)(115,783)(134,089)(2,319)(7,364)(16,067)(24,023)

(463)

(281)

－

2,784

3,544

19

82

(87,021)

Balance at January 1, 2021
Depreciation.
Impairment losses
Disposal and sale
Other
Balance at December 31,
2021
Depreciation.

Constructionin progress(7,077)(15,390)(14,355)－－(36,822)(5,502)

Impairment losses

(1)

－

－

(20)

－

(20)

－

Disposal and sale

3,718

3,151

7,098

89

－

14,057

8,335

Other

(245)

(597)

285

48

－

(509)

(4,686)(90,626)(141,341)(156,462)(1,789)－(390,217)(18,252)

Balance at December 31,
2022Note) Other are transfers of subjects, etc.
Carrying amount(Millions of yen)
Property, Plant and Equipment

December 31, 2021
December 31, 2022

Buildings
andstructures

MachineryandvehiclesVending
machineLand

89,96889,146

105,436
102,136

87,692
89,239142,463
139,065

Total

Right-ofuse assets

434,994
425,009

25,144
21,841

Constructionin progress
9,436
5,423

Depreciation of property, plant and equipment is included in "Cost of goods sold" and "Selling, general andadministrative expenses" in the consolidated statements of profit or loss.

84

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

11. Goodwill and intangible asset
Changes in the cost, accumulated amortization and accumulated impairment losses and carrying amounts of goodwill
and intangible asset were as follows:
Acquisition cost
(Millions of yen)

Goodwill

Balance at January 1, 2021
Acquisition
Disposal and sale
Other
Balance at December 31, 2021
Acquisition
Disposal and sale
Other
Balance at December 31, 2022

Intangible
assets withindefinite
useful lives
Contract
relatedintangible
asset

Intangible assets with finite useful
lives
Intangible
asset totals
SoftwareOther

61,859－52,050－21,790
3,371

432
－

74,272
3,371

－
－

－
－

(111)
(145)

(64)
－

(175)
(145)

61,859－52,050－24,905
3,788

368
－

77,323
3,788

－
－

－
－

(1,317)
(48)

(1)
0

(1,318)(48)

61,85952,05027,327367

79,74585

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Accumulated amortization and impairment losses(Millions of yen)

Goodwill

Intangible
assets withindefinite
useful lives
Contract
relatedintangible
asset

Intangible assets with finite useful
lives
Intangible
asset totals
SoftwareOther－(7,916)(163)(8,079)Depreciation
Impairment losses(61,859)－－－－(3,058)－(68)－(3,126)－

Disposal and sale
Other

－
－

－
－

58
－

43
－

102
－

－

(10,916)(188)(11,104)

Depreciation
Impairment losses(61,859)－－－－(3,394)－(68)－(3,461)－

Disposal and sale
Other

－
－

－
－

700
(15)

1
(1)

701
(16)

(61,859)－(13,624)(256)(13,880)

Balance at January 1, 2021

Balance at December 31, 2021

Balance at December 31, 2022
Carrying amount(Millions of yen)

Goodwill

Intangible
assets withindefinite
useful lives
Contract
relatedintangible
asset

Intangible assets with finite useful
lives
Intangible
asset totals
Software

Other

December 31, 2021－

52,05013,989180

66,219December 31, 2022－

52,05013,703112

65,865

Software at the end of the previous fiscal year and the end of the current fiscal year includes internally generated
intangible assets of 516 million yen and 431 million yen, respectively.
Amortization of intangible assets is included in "Cost of goods sold" and "Selling, general and administrative expenses"
in the consolidated statements of profit or loss.
Individually significant goodwill was mainly due to the business integration with Coca-Cola East Japan Co., Ltd. and theresulting consolidation of associates as consolidated subsidiaries in the previous fiscal year but an impairment loss wasrecognized in prior years.
Details of the contract related intangible assets are included in Note 3 (10) "Intangible assets".

86This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

12. Impairment of non-financial assets(1) Impairment losses
The impairment losses recognized by the Group were as follows:
The impairment losses are recorded in "Other expense" in the consolidated statements of profit or loss.
(Millions of yen)
For the year ended
December 31, 2021

For the year ended
December 31, 2022

Property, plant and equipment
Buildings and structures

463

Machinery and vehicles
Land

281
－

Subtotal

744

20

－

－

744

20

Right-of-use assets
Total

1
－
20

We group business assets into a unit of each business as defined under the management accounting system tocontinuously keep track of incomes and expenditures of such business assets. As to the lease assets and idle assets, we
determine their potential impairment by grouping individual assets as a minimum unit.
In the previous consolidated fiscal year and current consolidated fiscal year, we reduced the book value of buildings,
structures, and land of idle assets, whose prices are decreasing, to the recoverable amounts and recorded such decreaseas the impairment losses.
The recoverable amount of idle assets, including buildings and structures and land, is measured at fair value lesscosts of disposal. The recoverable amounts of the idle assets are calculated based on the real estate appraisals, etc. The
fair value hierarchy is classified as Level 3. Among such idle assets, the recoverable amount of machinery, equipment
and vehicles and Right-of-use assets is measured by value in use, and the value is set at zero.

87This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) Impairment testing of a cash-generating unit or cash-generating unit group, including intangible assets with indefinite
useful lives
Intangible asset (contract related intangible asset) with indefinite useful lives are allocated to cash-generating unit
or cash-generating unit group for which synergies are expected. Amounts of intangible asset with indefinite useful lives
allocated to cash-generating unit or cash-generating unit group are as follows:(Millions of yen)

Intangible assets with

Reportable segments

Cash-generating
unit or cashgenerating unit
group

Beverage business

Beverage

indefinite useful lives(Contract related

Total

Previous fiscal year
(As of December
31, 2021)

Current fiscal year
(As of December
31, 2022)

52,05052,05052,05052,050intangible asset)
The cash-generating units or groups of cash-generating units to which goodwill or intangible assets are allocated shallbe tested for impairment annually, and in addition, if there are events or changes in circumstances that indicate a potential
impairment which no impairment losses were recognized in the previous or current fiscal years. The recoverable amountof cash-generating unit or cash-generating unit group to which goodwill and intangible assets with indefinite useful life
has been allocated in calculated based on its value in use. Value in use is calculated by discounting future cash flows topresent value. Value in use is calculated by applying the appropriate discount rate to those future cash flows to the present
value. Future cash flows are calculated using the medium-term plan, budget and, for periods after those indicated in theplan, the going value, which takes into account the long-term average growth rate of the market.
When assets are grouped for recoverability assessments, they are used to estimate recoverable amounts, including
future cash flows, discount rates, and long-term average growth rates. However, the medium-term plan, which is the basis
for future cash flows is based on sales and cost plans etc. For the relevant period which with regard to the estimation of
future cash flows, we made estimate with assumption that the traffic is recovering graduallyt.
The amount which is based on these assumptions reflects management's assessment of future trends in the relevant
industries and is based on historical data from both external and internal information.
The discount rate before-tax and growth rates used to calculate the value in use of the cash-generating unit or group of
cash-generating units to which the goodwill and intangible assets were allocated at the end of the previous fiscal year andat the end of the current fiscal year are as follows:
Cash-generating unit or cashgenerating unit group

Previous fiscal year
(As of December 31, 2021)
Discount rate

Growth rate

Current fiscal year
(As of December 31, 2022)
Discount rate

Growth rate

Beverage
5.5%
0.5%
6.0%
0.4%
(NOTE) 1. The discount rate was the pre-tax discount rate, which is adjusted for the risk premium reflecting the increased risk ofinvesting in equity and the market-related risk of the specific cash-generating unit, based on the rate of 10-year
government bonds issued by the Japanese government in the same currency-denominated market as the cash flows(Japanese yen).
2. The Group estimates the cash flows by using growth rates expected from the market and our businesses. The growth rate
was determined based on the long-term average growth rates of the markets consistent with the assumptions assumed
to be used by the market participants.

88This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(3) Sensitivity analysis
The following table shows the values where each of the key assumptions has been independently replaced to match therecoverable amount to the book value.
For Beverage, the recoverable amount exceeded the book value of 127,714 million yet in the current fiscal year. However,if the discount rate is greater than 7.2% or the growth rate is less than -1.1%, an impairment loss may occur.

Cash-generating unit or cashgenerating unit groups

Previous fiscal year
(As of December 31, 2021)
Discount rate

Beverage

Current fiscal year
(As of December 31, 2022)

Growth rate

7.1%

Discount rate(1.4)%

Growth rate

7.2%(1.1)%

13. Other current assets and other non-current assets
Other current assets and other non-current assets consisted of the following:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Prepaid expense
Income tax receivable

8,005
3,827

6,835
1,940

Consumption tax receivable
Other

4,156
287

3,989
345

Total

16,275

13,108Long-term prepaid expenses
Other

5,953
53

4,622
487

Total

6,006

5,110

Current

Non-current

89This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

14. Trade and other payables
Trade and other payables consisted of the following:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Trade payables

34,81437,541

Accounts payable - otherAccrued expenses

65,337
3,110

66,7993,915

103,260

108,254Total
15. Provisions
Changes in provision were as follows:(Millions of yen)

Balance at December 31, 2021
Provision
Decrease during the fiscal year (intendeduse)
Increase due to passage of time and change
in discount rate
Balance at December 31, 2022
Current
Non-current
Total

Asset retirement
obligations

Environmental
measuresprovision

2,121
144

25
2

2,146
146

(459)

(9)

(468)

(77)

－

(77)

14

－

14

1,743

17

1,761

Total

－

－

－

1,743

17

1,761

1,743

17

1,761

Asset retirement obligations
Asset retirement obligations are recognized based primarily on the estimated future expenditures calculated by using
historical experience in cases where the Group has legal obligations in laws or contracts related to remove the fixed assets
for normal use, such as obligations of removal hazardous materials for construction facilities and offices used by the Groupor restoration of the original condition associated with the leased contract. These expenses are expected to be paid in the
future, but the amount paid may change due to future business plans and other factors.
Environmental measures provision
In order to prepare for expenditures related to the disposal of industrial wastes, the estimated amount of expenditure isrecognized as environmental measures provisions. These expenses are expected to be paid in the future, but the amount paid
may change due to future business plans and other factors.

90

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

16. Bonds and loans payable
Bonds and loans payable consisted of the following:(Millions of yen)
Averageinterest
rate(%)

Previous fiscal year
(As of December 31,
2021)

Current fiscal year
(As of December
31, 2022)

29,990

－

1,000

1,000

－

－

30,9901,000

149,622

149,701

0.20

2024 to 2029

7,000

6,000

0.15

2024 to 2026

Subtotal

156,622

155,701

Total

187,612

156,701

Maturity

Current
Current portion of bonds
Current portion of long-termloans payable
Short-term loans payable
Subtotal
Non-current
Bond
Long-term loans payable

0.15

-

The average interest rate is the weighted average interest rate to the balance as of the current fiscal year, and maturity is
the maturity of the balance as of the current fiscal year. The principal terms of the issuance of the debentures were as
follows:(Millions of yen)
Carrying amount
Name

Name of bondDate of
issue

Issue
amountPrevious fiscal year
(As of December 31,
2021)

Current fiscal year
(As of December
31, 2022)

Interest rate
(%)

Colla
teral

The due datefor
redemption

Jun 17,2015

30,00029,990(29,990)

－

0.52

None

Jun 17, 2022

Sep 19,2019

40,00039,921

39,9500.10

None

Sep 19, 2024

Sep 19,2019

60,00059,85859,8880.20

None

Sep 18, 2026

50,00049,84349,863

0.27

None

Sep 19, 2029

Coca-Cola
The
Company

west 3rd
Unsecured

The

bonds
1st unsecured

Companybond

TheCompany

2nd unsecured
bond

The
Company

3rd unsecuredbond

Sep 19,2019

179,612

Total(29,990)(NOTE) 1. The amount in parentheses is the redemption amount due within one year.
2. All interest rates are fixed rates.

91

149,701This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

17．Leases
The Group mainly rents offices and other facilities in the beverage business, and leases buildings and structures related to it.
The contract term for the lease is mainly 15 years. There are no special restrictions on lease contracts (such as restrictions on
dividends, additional borrowings and additional leases).
The breakdown of profits and losses related to leases is as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Depreciation of Right-of-use assets
Buildings and structures

6,580

5,502

－

－

6,580

5,502

Land
Total
Interest expense on lease liabilities

291

238

Total cash outflows related to leases(7,088)(5,974)The breakdown of the books of Right-of-use assets is as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Right-of-use assets
Buildings and structures

24,470

Land
Total

674

622

25,144

21,841

The increase in Right-of-use assets for the end of the previous fiscal year and the end of the current fiscal year was 9,195
million yen and 6,869 million yen

92

21,219

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

18. Retirement benefits
Regarding retirement benefit plans for employees of the Group, some subsidiaries are to adopt defined contribution
pension plans and defined benefit pension plans, which calculate the amount of contributions and benefits based on theirposition, years of services and other factors. However, as of April 1, 2019, the beverage business was unified into a
defined contribution pension plan and a lump-sum retirement plan, and the conventional defined benefit plan was frozen.
The frozen defined benefit pension liability is calculated based on the retirement benefits determined at the time of thefreeze and is recognized as a defined benefit obligation until the employee is paid a pension or lump-sum payment upon
future retirement.
(1) Defined benefit plans(a) Increase (decrease) in present value of a defined benefit obligation
Changes in present value of a defined benefit obligation are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

118,958
3,490

118,007
3,456

1,312

1,067

Actuarial gains arising from changes indemographic assumptions

(184)

－

Actuarial gains arising from changes infinancial assumptions

2,526(11,779)

Transfers to disposal groups held for sale

(337)
(7,757)－(132)(7,250)－

Balance at the end of the year

118,007103,370

Balance at the beginning of the year
Service expense
Interest expense
Remeasurement:

Experience adjustment
Benefit payments

The weighted-average lives of defined benefit plans obligations at the end of the previous fiscal year and the end of
the current fiscal year were 11.0 years and 10.0 years, respectively.
(b) Changes in fair value of plan asset
Changes in the fair value of plan asset were as follows:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

104,952
1,125

106,183
932

Remeasurement:
Return on plan asset

6,303(8,770)Contributions by employer
Benefit payments

353(6,550)92(6,239)Balance at the end of the year

106,183

92,198

Balance at the beginning of the year
Interest revenue

93This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(c) Change in adjustment due to asset ceiling
Changes in adjustments due to asset ceiling were as follows:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

869

5,781

4,902

811

10

52

5,781

6,644

Balance at the beginning of the year
Remeasurement:
Effect of limiting the amount of net plan
assets to the amount of asset ceilingInterest revenue
Balance at the end of the year

Adjustments due to asset ceiling are adjustments that made due to a partial limitation on the amount recorded as asset, although theamounts which the plan asset exceeds present value of a defined benefit obligation under "Employee Benefits" (IAS 19) are recognized
as “Defined benefit asset”.
(d) Adjustments of defined benefit plans Obligations and Plan asset
The relationships between defined benefit plans obligations and plan asset and net defined benefit liability and asset
recorded in the consolidated statements of financial position are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Defined benefit plans obligations (funded)

100,40285,554

Plan assets

106,183

92,198Net deficit of funded defined benefit plans(5,781)(6,644)

Adjustments due to asset ceiling

5,781

6,644

－

－

17,605

17,817

17,605

17,817

17,605－

17,817－

17,605

17,817

Subtotal
Defined benefit plans obligations (unfunded)
Total
Net defined benefit liabilities
Net defined benefit assets
Net defined benefit liabilities recognized in the
consolidated statements of financial position

94This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(e) Major items of plan asset
The plan assets of the Group's retirement benefit plans include marketable equity securities and receivables and are
exposed to stock price and interest rate and foreign exchange risks. The investment of plan asset management aims tomaximize the value of the plan assets over the medium-to-long term in order to ensure that defined benefit plans
beneficiaries receive future benefits within acceptable risks. The plan asset diversifies its investments into a variety ofdomestic and international equities and bonds based on asset allocation targets to reduce risks. With regard to asset
allocation, the Group has set medium-to-long term allocation targets based on forecasts of returns, long-term risks, andpast performance. The asset allocation targets are reviewed as appropriate in the event of a significant change in theoperational environment of the plan asset.
The major categories of plan asset are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)
With quoted
prices inactivemarketWithout
quoted inactivemarketCurrent fiscal year
(As of December 31, 2022)
Total

With quoted
prices inactivemarketWithout
quoted inactivemarket

Total

Equity instrument
Domestic
securities

－

7,806

7,806

－

6,387

6,387

Foreignsecurities－

21,616

21,616－15,111

15,111

－

6,613

6,613

－

4,642

4,642

－

22,402

22,402－

17,893

17,893－27,51727,517－

27,79827,798－Debt instrument
Domesticbonds
Foreign bonds
General account
Alternative
Other

17,932
145

17,932
2,298

－

2,153

0

20,135
232

20,135
232

Total

2,153

104,030

106,183

0

92,19892,198The majority of plan assets are managed through commingled funds. Commingled funds are pool of assets that aregathered to benefit from professional management and economies of scale. Investors have interest in the funds andmeasure the fair value of its interests based on the net asset value of the investments provided by the fund administrators.
The plan assets managed by the funds are invested in marketable securities, such as domestic or foreign stocks anddebts in active markets. Alternatives include investments in funds of funds, etc.
There is no estimated amount of contribution to the plan assets in the next consolidated fiscal year because the plan
assets exceed the minimum required reserve amount.
(f) Significant actuarial assumptions
Significant actuarial assumptions were as follows:
Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

0.90%
2.00%

1.96%
2.00%

Discount rate
Rate of salary increase95

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(g) Sensitivity analysis
The following table presents the monetary impact of changes in significant actuarial assumptions on defined benefit
plans obligations.
(Millions of yen)Previous fiscal year
(As of December 31, 2021)
Increasing
Discount rate
0.25% decrease

Reduction

3,292－

0.25% increase
Rate of salary increase－

0.5% decrease
0.5% increase

Current fiscal year
(As of December 31, 2022)

184

Increasing

－

2,606
－

3,150

Reduction
－
2,502

－

197
－

180
－

192

The sensitivity analysis in the table above assumes that all actuarial assumptions other than the assumptions underwhich the analysis was performed remain constant. This sensitivity analysis represents the changes in the defined
benefit obligation as of the end of the previous fiscal year and the end of the current fiscal year and is the result ofchanges in actuarial assumptions that we believe are reasonable. This analysis is based on provisional calculations andactual results may differ from the analysis.
(2) Defined contribution plans
Expenses for the defined contribution plans of the Group for the previous fiscal year and current fiscal years were
10,352 million yen and 10,112 million yen, respectively.
19. Other current liabilities and other non-current liabilities
Other current liabilities and other non-current liabilities consisted of the following:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Current
Deposit received

3,941

4,345

Accrued paid leave
Consumption tax payable

5,170
1,718

4,996
1,458

Accrued bonuses
Other

4,520
736

7,626
1,914

16,085

20,339

884
1,645

976
1,760

Total
Non-current
Long-term deposits received
Other long-term employee benefits obligations
Other
Total

96

391

411

2,920

3,147

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

20. Equity(1) Capital stock
Changes in the number of shares authorized and outstanding are as follows:(Thousands of shares)
Previous fiscal year
(From January 1, 2021
to December 31, 2021

Current fiscal year
(From January 1, 2022
to December 31, 2022

Number of shares authorized
Ordinary share with no-par value
Number of issued shares (ordinary share)
Outstanding at the beginning of the fiscal year
Increase during the fiscal year
Decrease during the fiscal year
Outstanding at the end of the fiscal year

500,000

500,000

206,269－

206,269－－－

206,269

206,269(2) Capital surplus
Capital surplus represents surplus that is derived from capital transactions and includes capital legal reserve which is notdesignated as stated capital. Under the Companies Act of Japan (“the Companies Act”), at least one-half of the issue priceof shares is required to be accounted for as capital stock, and the remainder of the paid-in capital is accounted for as
capital surplus. The Companies Act also permits companies to transfer a portion of capital surplus to the capital stock byresolution of the shareholders’ meeting.
(3) Retained earnings
Retained earnings consist of legal reserve and other retained earnings. The Companies Act stipulates that one-tenth of theamount of surplus reduced by the dividends of surplus shall be set aside as capital legal reserve or earned legal reserve
until the sum of capital legal reserve and earned legal reserve equals one-fourth of the amount of stated capital. The
earned legal reserve may be used to reduce or eliminate a deficit by resolution of the shareholders meeting.
(4) Treasury stock
Changes in treasury stock were as follows:(Thousands of shares)
Previous fiscal year
(From January 1, 2021
to December 31, 2021
Number of treasury stock
Outstanding at the beginning of the fiscal year
Increase during the fiscal year
Decrease during the fiscal year
Outstanding at the end of the fiscal year

Current fiscal year
(From January 1, 2022
to December 31, 2022

26,92026,925

5
(0)

4
(0)

26,92526,928The increase in the previous consolidated fiscal year and the current consolidated fiscal year are due to theacquisition of shares less than one unit, while the decrease is due to the additional purchase of shares less than one unit.

97This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(5) Accumulated other comprehensive income
Changes in accumulated other comprehensive income were as follows:(Millions of yen)

Remeasureme
nt of defined
benefit plans

Net changes infinancialassetsmeasured atfair value
through othercomprehensive
incomeCash flow
hedgesShare ofothercomprehensi
ve income ofequitymethodinvestees

－

1,430

(335)

－

1,095

(395)

854

2,836

(12)

3,283

395

(784)

－

12

(378)

－

－

(1,356)－(1,356)

Balance at December 31, 2021

－

1,499

1,145

－

2,644

Amount arising during the year

1,523

292

1,250

－

3,065

(1,523)

(451)

－

－

(1,974)－－(2,558)－(2,558)

－

1,341

(163)

－

1,177

Balance at January 1, 2021
(After Restatement)
Amount arising during the year
Changes in owners’ interest in
subsidiaries

Total

Reclassification from accumulated
other comprehensive income toretained earnings

Reclassification from accumulated
other comprehensive income toretained earnings
Reclassification from accumulated
other comprehensive income tonon-financial asset
Balance at December 31, 2022
All amounts above are net of taxes.

98This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

21. Stock-based compensation
The Group has introduced a performance-linked stock-based incentive compensation system for the Company’s directors(excluding members of the Audit and Supervisory Committee and outside directors) and the executive officers of theCompany and its subsidiaries ("directors") since the current fiscal year.
1. Performance-linked stock-based incentive compensation system (“LTI”)(1) Outline of the LTI
The Company's common stock ("the Company's stock") and cash will be paid under the performance-linked stockcompensation plans consisting of the Performance Share Unit ("PSU") plan and the Restricted Stock Unit ("RSU")
plan for the evaluation periods of January 1, 2021 to December 31, 2023 and January 1, 2022 to December 31, 2024,
respectively. The purpose of LTI is to share the benefits and risks of stock price fluctuations with shareholders and to
motivate the Target Company's employees more than ever to contribute to the enhancement of the Company's
corporate value over the medium to long term and to the increase in the Company's stock price.
(2) Vesting conditions(PSU)
・The number of shares to be issued shall be determined within the range of 0% to 150% of the basic PSU amount
depending on the achievement of performance targets (only considering companywide performance) over thethree years after the share units have been granted (half of the shares 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 and consolidated
sales growth rate have been adopted as measures for evaluating performance, based on the Company’s policy
regarding the determination of compensation for Executive Directors and Executive Officers, etc.
(RSU)
・Provided for the purpose of aligning interests with shareholders, creating incentives to increase corporate value,and strengthening retention of talented people.
・A predetermined number of shares are issued at retirement (half of the shares to be issued shall be paid in cash
for the purpose of allocating funds for the payment of tax obligations).
(3) Fair value and fair value measurement methods
The fair value on the grant date of this plan for the previous consolidated fiscal year and the current consolidated
fiscal year were as follows:
Previous fiscal year
Current fiscal year
(As of December 31, 2021)(As of December 31, 2022)
PSU
RSU

1,858

(Note) 1

1,858
1,684

(Note) 1(Note) 2

1,317
1,317
1,318
1,420

(Note).1.Fair value for RSU covering employees.
2. Fair value related to special RSU
2. Share compensation Expenses
For the previous and current fiscal year, expenses of share-based payment included in "Selling, general andadministrative expenses" in the consolidated statements of profit or loss are 227 million yen and 482million yen.

99

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

22. Dividends
Dividends payments were as follows:
For the year ended December 31, 2021
Resolution
March 25, 2021
Ordinary General
Meeting of Shareholders
August 11, 2021
Board of Directors

Type of shares

Total amount ofdividends paid
(Millions ofyen)

Dividends per
share
(Yen)

Dividend record
date

Effective dateOrdinary share

4,484

25

December 31,
2020

March 26, 2021

Ordinary share

4,484

25

June 30, 2021

September 1,
2021

Total amount ofdividends paid
(Millions ofyen)

Dividends per
share
(Yen)

Dividend record
date

Effective date

4,484

25

4,484

25

For the year ended December 31, 2022
Resolution
March 24, 2022
Ordinary General

Type of shares

Ordinary

Meeting of
Shareholders

share

August 11, 2022
Board of Directors

Ordinary
share

December 31,
2021

June 30, 2022

March 25, 2022

September 1,
2022

Among the dividends whose record date belongs to the current fiscal year, those whose effective date falls in thefollowing fiscal year are as follows:
Total amount
Dividends perType ofof dividends
Dividends
Dividend record
Resolution
share
Effective dateshares(Millions ofresources
date
(Yen)
yen)
March 28,
2023
Ordinary
GeneralOrdinary
share

4,484

Retainedearnings

Meeting of
Shareholders

100

25

December 31,
2022

March 29, 2023

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

23. Revenue Decomposition(1) Revenue
The Group's organizational structure is based on Beverage segments. These two businesses are components for which
discrete financial information is available, and whose operating results are regularly reviewed by the entity’s chief operating
decision maker to make decisions about resources to be allocated to the segment and assess its performance. Therefore, therevenue in these two businesses is presented as “Revenue” in the consolidated financial statement of profit or loss. In the
Beverage business, the Group purchases, manufactures, and sells carbonated beverages such as Coca-Cola, coffee beverages,
black tea beverages, mineral water, alcohol, and other beverages in Japan.
Revenue for sales of these products is recognized primarily at the time of delivery as customer has obtained control overthe products and the performance obligation is satisfied.
Payments relating to such performance obligation are received generally within two months of delivery. The contracts
with customers do not include any material financial elements.
(Millions of yen)
Current fiscal year
(From January 1, 2022
to December 31, 2022)

Previous fiscal year
(From January 1, 2021
to December 31, 2021)
Revenue
Other revenue arising from customers and contracts
Beverage

785,455

807,402382

29785,837

807,430

Other
Total

(2) Contract balances
The Group’s contract balance are as follows.

Previous fiscal year
(From January 1, 2021
To December 31, 2021)(Millions of yen)
Current fiscal year
(From January 1, 2022
To December 31, 2022)

72,527

77,10572,527

77,105

Receivables arising from contracts with customers
Accounts and notes receivable
Total(3) Transaction price allocated to the remaining performance obligation
Information regarding the remaining performance obligation is omitted as there are no significant transactions in which theestimated individual contract periods exceed one year in the Group. In addition, there are no significant amounts of consideration
arising from contracts with customers that are not included in the transaction price.

(4) Assets recognized from the costs of obtaining or performing contracts with customers
The contracts with customer do not include any material financial elements.

101This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

24. Selling, general, and administrative expenses
Selling, general and administrative expenses comprise the following(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Depreciation
Amortization

38,557
3,085

27,752
3,391

Sales commissions and promotional expenses
Employee benefits expenses

104,965
95,373

108,910
103,977

Shipping and commissions
Maintenance fee

77,964
14,321

76,035
15,331

Other
Total

102

29,48629,898363,750

365,295

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

25. Employee benefits expenses
Employee benefits expenses consisted of the following:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Cost of goods
soldSelling, generalandadministrative
expenses

Cost of goods
soldSelling, generalandadministrative
expenses

Salaries and wages

9,106

60,4509,719

65,316

Welfare and legal welfare expenses
Bonus

1,074
1,733

8,674
13,839

1,120
2,240

8,175
18,134Retirement benefit costs

1,507

12,411

1,576

12,351

Total

13,42095,373

14,656

103,977

26. Other income and other expense
Other income and other expense consisted of the following:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Other income
Gains on sales of property, plant and equipment
Rent income

1,519
310

4,587
276

Government subsidies (Note 1)
Gain on sales of stocks of subsidiaries and

6,447

3,729

708

－

1,154

720

10,1389,312

affiliates (Note 2)
Other
Total
Other expense
Impairment losses

744

20

Losses on sales and disposals of property, plant andequipment

2,102

2,564

Transformation-related expenses (Note 3)
Special retirement allowance (Note 4)

1,600
2,437

1,298
1,104

Temporary paid leave expenses (Note 5)
System failure-related costs (Note 6)

9,001
1,322

2,168
－

496

179

17,702

7,332

Other
Total

(NOTE) 1. Government subsidies are grants to cover employee’s temporary leave cost due to the spread of COVID-19.
2. Gain on sales of stocks of subsidiaries and affiliates represents the gain on sales of all stocks of Apex Nishi-Nihon
Corporation, an equity-method affiliate of the Company.
3. Transformation related expenses are expenses related to measures aimed at building an efficient new system with the aimof creating more value and further improving productivity for the sustainable growth of the Group.
4. Special retirement allowances are allowances and outplacement support expenses incurred in the implementation of thevoluntary retirement program.
5. Temporary paid leave expenses are the allowance associated with employee’s temporary leave due to the spread of COVID19. The expenses are reclassified 656 million yen and 92 million yen from cost of goods sold and 8,345 million yen and
2,076 million yen from Selling, general and administrative expenses to other expenses, respectively.
6. System failure-related costs are expenses incurred to recover the system failures that occurred in the core system used by theGroup.
103

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

27. Financial income and financial expense
Financial income and finance expense consisted of the following:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Financial income
Interest income
Financial assets measured at amortized cost
Dividends income

1

0

259

237

117

27

Total

377

264

Interest expenses
Financial liabilities measured at amortized cost.

928

750

Foreign exchange losses
Other

111
50

468
25

1,089

1,242

Financial assets measured at fair value through othercomprehensive income
Other

Finance expense

Total

104

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

28. Income taxes(1) Deferred tax assets and deferred tax liabilities
The breakdown of major causes of deferred tax assets and deferred tax liabilities in the previous fiscal year and thecurrent fiscal year is as follows:(Millions of yen)
The consolidated statement of financial position

Consolidated statement of profit or loss

Previous fiscal year
(As of December 31,
2021)

Current fiscal year
(As of December 31,
2022)

Previous fiscal year
(From January 1,
2021
to December 31,
2021

Current fiscal year
(From January 1,
2022
to December 31,
2022

5,246

4,709

(283)

(537)

Lease

7,162

6,418

(3,335)(744)

Financial assets

1,313

1,126

37

(288)

Employeebenefits

9,992

12,001

1,285

2,814

Inventories
Carryforwards

2,184

1,530

295

(654)

of unused tax
losses13,893

19,422

6,014

5,529

Other

3,642

2,324

(418)

(1,318)43,43247,529

3,595

4,802

(34,319)(33,788)

1,522

531

Lease
Financial assets(6,983)(3,619)(6,217)(2,612)

3,176
302

766
541

Other

(1,930)(1,487)809

443(46,851)(44,105)

5,809

2,280

－

－

9,404

7,082

(3,419)3,424

Deferred tax
assetsProperty, plantand equipment
and intangible
asset

Subtotal
Deferred tax
liabilities
Property, plantand equipment
and intangible
asset

Subtotal
Total deferred tax
expenseTotal deferred
taxes

105

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

The Group evaluates the recoverability of deferred tax assets by considering the possibility that some or all ofdeductible temporary differences or carryforwards of unused tax losses will be available to future taxable income. Basedon historical trends in taxable income and projected future taxable income for the periods in which deferred tax assets arerecognized, the Group believes that it is more likely than not that the tax benefits of these deferred tax assets will be
realized at the end of the previous and current fiscal years.
In Company incurred special retirement previous and current fiscal years, then benefits and the effects of the newcoronavirus infection. The Company has incurred a loss carried forward for tax purposes. The loss carried forward fortax purposes mainly resulted from a consolidated subsidiary, Coca-Cola Bottlers Japan Inc., which is a consolidated
subsidiary of the Company. Deferred tax assets of 19,279 million yen were recognized for the tax loss carryforwards.
Note 4 "Critical Accounting Judgments, Estimates, and as described in "Assumptions and Liabilities", in recognizing
deferred tax assets, the Group has recognized deferred tax assets based on the medium-term plan. The timing and amountof the accrual are estimated. Estimates of future taxable income are based on the medium-term plan, and the main
assumptions used are as follows the sales plan and cost plan for the relevant period are used as the basis for the calculation.
In assessing the recoverability of deferred tax assets, the Company considers the planned reversal of deferred tax liabilities,
future taxable income, and tax planning including asset sales. In addition, Although the impact of COVID-19 infection is
expected to remain uncertain, accounting estimates are based on the assumption that the traffic is recovering gradually.
We believe that changes in the economic environment surrounding the Group, market conditions and other factors will
increase the uncertainty of our estimates of future taxable income.
Details of changes in deferred tax assets and deferred tax liabilities (net) in the previous fiscal year and the current
fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021
Balance at the beginning of the fiscal year (after
restatement) (liabilities)

Current fiscal year
(From January 1, 2022
to December 31, 2022

(12,309)(3,419)Amounts recognized in deferred tax expense
Amounts recognized in other comprehensive income

9,404
(514)

7,082
(239)

Balance at the end of the year (liabilities)(3,419)3,424(2) Unrecognized deferred tax assets and deferred tax liabilities
As a result of our assessment of the recoverability of the deferred tax assets described above, the Group does notrecognize the deferred tax assets for a portion of deductible temporary differences. The amounts of deductible temporary
difference and carryforwards of unused tax losses for which no deferred tax assets has been recognized as of the end of
the previous fiscal year and the end of the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

15,545－

14,997－

15,545

14,997

Deductible temporary differences
Carryforwards of unused tax losses
Total

Taxable temporary differences regarding investments in subsidiaries and associates for which deferred tax liabilities
was not recognized at the end of the previous fiscal year and at the end of the current fiscal year is as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

38,724

22,141

Investments in subsidiaries and associates

106This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(3) Income tax expenses
Income tax expenses for the previous fiscal year and the current fiscal year consisted of the following.
(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Current tax expenses
Deferred tax expenses (profit)

3,005(9,658)2,650(7,082)

Total(6,653)(4,432)

The above deferred tax expenses were primarily due to the origination and reversal of temporary differences.
(4) Reconciliation of effective tax rate
A reconciliation of the statutory tax rate to the applicable tax rate in the consolidated statements of profit or loss forthe previous fiscal year and the current fiscal year is as follows:
Previous fiscal year
(From January 1, 2021
to December 31, 2021)
Statutory tax rate
Items which are not taxable or deductible
Changes in unrecognized deferred tax assets (Note)
Tax rate difference between the Company andCurrent fiscal year
(From January 1, 2022
to December 31, 2022)

31.46%
22.54%

31.46％(0.49)％

0.41%

1.45％

2.47%

1.59％

subsidiaries
Tax expense related to the sale of shares of a subsidiary(23.95)%

－％

Other

(2.24)%

1.46％

30.68%

35.48％

Applicable tax rate
Note:

See Note 9, " Discontinued Operations," for more information on the tax expense related to the sale of shares in subsidiaries.

107

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

29. Other comprehensive income
The components of other comprehensive income and related tax effects (including non-controlling interest) are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Items that will not be reclassified to profit or loss
Remeasurement of defined benefit plans:
Amount arising during the year

(603)

2,329

Tax effect

208

(806)

Net of tax

(395)

1,523

Amount arising during the year
Tax effect

(12)
－

－
－

Net of tax

(12)

－

1,396

418

Tax effect

(542)

(126)

Net of tax

854

292

448

1,815

Share of other comprehensive income in equity method
investees:

Financial asset measured at fair value through othercomprehensive income:Amount arising during the year

Subtotal
Cash flow hedge:
Amount arising during the year

4,335

1,910

Tax effect(1,499)(661)

Net of tax

2,836

1,250

Subtotal

2,836

1,250

Total other comprehensive income

3,283

3,065

108

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

30. Reconciliation of changes in liabilities related to cash flows arising from financing activities
Changes in liabilities related to financing activities were as follows:(Millions of yen)
Short-term loans
payableLong-term loans
payable (Note)

Changes without cash flows

50,000(50,000)－

Balance at December 31, 2021

Bonds (Note)

Lease liabilities

9,072(1,072)－

179,514－

31,405(7,088)

99

2,196

－

8,000

179,61226,512

Changes with cash flows(38)(1,065)(30,000)(5,974)

Changes without cash flows

38
－

65

89

2,730

7,000

149,701

23,269Balance as of January 1, 2021
Changes with cash flows

Balance at December 31, 2022

(NOTE) These include amounts of long- term loan and bond due within one year.
31. Financial instruments(1) Financial risk management
The Groups are exposed to the following risks arising from financial instruments:
・Credit risk
・Liquidity risk
・Market risk
The Group faces a variety of financial risks (credit risk, liquidity risk and market risk (equity price risk, interest raterisk, currency risk and commodity price risk) in the course of conducting business and manages risks in accordance withcertain policies to avoid and mitigate these financial risks. The Group's risk management policies are formulated after
identifying and analyzing the risks faced by the Group with the aim of appropriately identifying risks and controls andmonitoring risks and complying with controls. Risk management policies and systems are reviewed periodically to reflectmarket conditions and the Group's business activities. The Group conducts training and develops manuals and procedures
to maintain a control environment in which all employees understand their roles and disciplines.
Based on our risk management policies, the group utilizes derivative transactions to hedge certain risk exposures. The
Group's policy is to utilize derivative transactions to hedge foreign currency exchange and commodity price risks and not
to engage in speculative transactions. Our finance division identifies, evaluates and hedges financial risk.
(2) Credit risk
Credit risk is the risk that one party to the financial instrument will be unable to fulfil its obligations and another party
will incur financial losses. In the course of our business, the Group is exposed to counterparty credit risk with respect totrade and other receivables and other financial assets (including deposits, securities and other receivables). The carrying
amount after impairment for financial assets presented in the consolidated financial statements is the maximum exposureof the Group of financial assets to credit risk, without taking into account of any collateral held. In addition, the Group
has no significant credit risk exposure to any particular counterparty and has no excessive concentration of credit risk
with specific managements.
In order to manage credit risk, the Group manages payment due dates and outstanding for each customer in accordancewith our internal customer control regulations and monitors the credit standing of our major customer on a regular basis.
In order to mitigate the credit risk of derivative transactions, in principle, transactions are limited to financial institutions
with high credit ratings.
In addition, the Group calculates allowance for credit loss by classifying receivables based on credit risk characteristics.
For trade and lease receivables, the Group always measures allowance for credit loss at the same amount as lifetime
expected credit losses. Receivables other than trade and lease receivables, in principle, are measured the allowance for
credit loss at the same amount as the 12-month expected credit losses. However, if credit risk increases significantly fromthe initial recognition date, the Group recognizes the allowance for credit losses at the same amount as the lifetime
expected credit losses. The Group determines whether or not the credit risk has increased significantly based on
fluctuations in the risk of default, and consideration of the passage of time and deterioration in the financial condition of
the obligor. All receivables other than trade receivables for which the Group measures the allowance for credit loss at thesame amount as the 12-month expected credit losses are measured on a collective basis.
The amount of expected credit losses related to trade receivables is calculated based on simplified approaches byclassifying receivables according to the credit risk characteristics of the counterparty and multiplying by the provision109This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

rate reflected historical credit loss rate calculated for each category and forecasts of future economic conditions.
The amount of expected credit losses related to receivables other than trade receivables whose credit risk has notincreased significantly is calculated based on the principle approach by multiplying by provision rate reflected thehistorical rate of credit loss of the same type of asset by its carrying amount. The amount of expected credit losses related
to asset whose credit risk has been increased significantly and credit-impaired financial asset is calculated as thedifference between the present value of estimated future cash flows discounted by the asset's initial effective interest rateand carrying amount.
(a) Credit risk exposure
The Group's credit risk exposure is as follows:
Trade and other receivables
The Group evaluates the credit risk of trade and other receivables based on past due information.
As of December 31, 2021
(Millions of yen)
Financial asset
assessed by
12-month
expected
credit losses
Unexpired33,149Within 60 days of the due dateMore than 60 days from the due date
Total

17
－
33,166

Financial asset
assessed by anamount equal
to lifetime
expected
credit losses
98－

Financial assetof applying
simplified
approaches

Total

67,796

101,043

8

4,611
43

4,628
51

106

72,450105,721

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a creditimpairment financial asset.
As of December 31, 2022
(Millions of yen)
Financial asset
assessed by
12-month
expected
credit losses
Unexpired

26,322

Within 60 days of the due dateMore than 60 days from the due date
Total

37
－
26,358Financial asset
assessed by anamount equal
to lifetime
expected
credit losses
25－

Financial assetof applying
simplified
approaches

Total

70,53796,883

34

6,533
―

6,570
34

59

77,070103,487

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a creditimpairment financial asset.
Other financial assets
The Group evaluates the credit risk of other financial assets according to the credit risk rating grades of the otherparty. The credit risk rating grades of financial asset assessed by an amount equal to lifetime expected credit losses
is relatively low compared to the credit risk rating grades of financial asset's expected credit losses, which assessedby a 12-month expected credit losses, and the credit risk rating grades of financial assets in the same category is
generally the same.

110This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

None of the other financial assets past due have significant credit risk exposures.
As of December 31, 2021
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses
Other financial asset

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

4,714

Total

1,204

5,918

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a credit-impairment
financial asset.
As of December 31, 2022
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses
Other financial asset

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

3,572

Total

894

4,467

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a creditimpairment financial asset.
(b) Allowance for credit losses
Changes in allowance for credit losses were as follows:
Trade and other receivables
For the year ended December 31, 2021
(Millions of yen)
Financial asset
assessed by
12-month
expected
credit losses

Financial asset
assessed by anamount equal
to lifetime
expected
credit losses

Financial assetof applying
simplified
approaches

Balance at January 1, 2021
Provision

42
51

216
51

134
298

392
401

Reduction during the period (reversal)

(42)

(216)

(134)

(392)

Balance at December 31, 2021

51

51

298

401

Financial asset
assessed by
12-month
expected
credit losses

Financial asset
assessed by anamount equal
to lifetime
expected
credit losses

Financial assetof applying
simplified
approaches

Balance at January 1, 2022

51

51

298

401

Provision
Reduction during the period (purpose use)

32
－

23
－

86
(190)

141
(190)

Reduction during the period (reversal)

(51)

(51)

(108)

(211)

Balance at December 31, 2022

32

23

86

141

Total

For the year ended December 31, 2022
(Millions of yen)

Total

The Group does not anticipate that any cash flows will be collected in the future from trade receivables written
off in the past and not collect any cash flows.

111This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Other financial asset
For the year ended December 31, 2021
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses
Balance at January 1, 2021
Provision

00－Decrease during the period (intended use)
Reduction during the period (reversal)
Balance at December 31, 2021

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

Total

589
1,036

590
1,036

(0)

(68)
(742)

(68)
(742)

0

816

816

For the year ended December 31, 2022
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses
Balance at January 1, 2022
Provision

00－Decrease during the period (intended use)
Reduction during the period (reversal)
Balance at December 31, 2022

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

Total

816
232

816
232

(0)

(246)
(380)

(246)
(381)

0

421

421

(c) Impact of significant changes in the gross carrying amount of financial instrument during the year
There were no significant changes in the gross carrying amount affecting changes in allowance in the previous fiscal
year or the current fiscal year.

112

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(3) Liquidity risk
Liquidity risk is the risk that the Group will be unable to pay its obligations on the due date for repayment in thefinancial liabilities when such obligations become due. The Group manages to secure sufficient funds to meet payment
due dates under any circumstances that do not affect the Group's conditions of loss or reputation. Our financial division
manages our liquidity risk by maintaining adequate levels of net income and cash balances within our line of credit withbanks and by comparing and analyzing actual cash flows and forecast cash flows.
The balances of financial liabilities (including derivative liabilities) by maturity were as follows:
As of December 31, 2021
(Millions of yen)
Carrying
amountCash flows
on contract

Not later than
1 year103,260
187,612103,260
189,920

103,260
31,385Later than 1
year and notlater than 5
years

More than 5
years

Non-derivative financial liabilities
Trade and other payables
Bonds and loans payable
Finance lease liabilities
Total

－

－

108,130

50,40526,51227,502

4,157

11,096

12,249317,385

320,683

138,803119,226

62,654More than 5
years

As of December 31, 2022
(Millions of yen)Non-derivative financial liabilities
Trade and other payables
Bonds and loans payable
Finance lease liabilities
Derivative financial liabilities
Forward exchange contracts

Carrying
amountCash flows
on contract

Not later than
1 yearLater than 1
year and notlater than 5
years

108,254

108,254

108,254－－

156,701
23,269158,535
24,131

1,305
5,322

106,961
10,57750,270
8,232

162

162

153

501

501

501

8
－

－

Commodity swap
Total

288,887

291,583

115,535

117,546

58,502－(4) Market risk
Market risk is the risk of fluctuations in interest rates, stock prices and other market prices that may affect the value of
the Group’s revenue and value of securities held by the Group. While optimizing profits, the Group manages market risk
exposures to acceptable levels.
(a) Interest rate risk
Loans payable and bonds are fixed interest rates. Accordingly, the impact of changes in interest rates on profit orloss is limited and the Group believes that our interest rate risk is insignificant and has not performed sensitivity
analyses such as basis point values.
(b) Stock price risk
The Group is exposed to the risk of fluctuations in stock prices because the Group holds a large number of securities
with quoted market prices. Securities with quoted market prices are held for purposes other than trading and aredesignated primarily as financial assets measured at fair value through the other comprehensive income.
Assuming that all other variables are constant, if the price of listed securities held by the Group as of the end of the
fiscal year increases or decreases by 10%, the impact on the other comprehensive income (before tax effects) is 944
million yen and 870 million yen, respectively, for the previous fiscal year and current fiscal years.

113

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(c) Currency risk
The Coca-Cola Bottlers Japan Co., Ltd., a consolidated subsidiary, purchases raw materials denominated in foreign
currencies and is therefore exposed to currency risk, mainly in U.S. dollars. Currency risk arises from forecast
transactions, such as future purchases, or from assets and liabilities that are already recognized. The Group utilizes
foreign currency forward contracts to hedge its currency risk. Hedge accounting is applied to transactions that meetthe criteria for hedge accounting. Receivables and payables denominated in foreign currencies are exposed to the riskof exchange rate fluctuations, but the impact of this risk is limited as it is offset by forward exchange contracts.
(d) Commodity price risk
The Coca-Cola Bottlers Japan Co., Ltd., a consolidated subsidiary, purchases raw materials that are subject tofluctuations in prices due to weather and natural disasters. As a result, the Group is exposed to the commodity pricerisk of raw materials. The Group enters into commodity swap contracts to hedge the risk of fluctuations in the pricesof these raw materials.
(5) Capital management
The Group’s fundamental capital management policy is to improve capital efficiency through long-term improvements
through business growth while maintaining a stable financial position.
The Group’s indicators for capital management are return on equity attributable to owners of the parent (“ROE”) andreturn on assets (“ROA”). ROE is the ratio of net profit to equity attributable to owners of the parent, and ROA is theratio of profit before tax to total assets. ROE and ROA for the previous and current fiscal years were affected by thecontinuing difficult business environment due to the outbreak of the new coronavirus infection.
Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

ROE(0.50)%(1.67)%

ROA(2.40)%(1.47)%The Group does not have any significant capital controls imposed by external parties.

114

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(6) Classification of financial instruments
Balances by financial assets and financial liabilities classification were as follows:
Financial assets
As of December 31, 2021
(Millions of yen)
Financial
instrument
measured atfair value
through profit
or loss

Financial
instrument
measured atfair value
through othercomprehensiv
e income

Cash and cash equivalents－－

110,497

110,497

Trade and other receivables
Other financial asset (current)－－

105,320

105,320

1,303

－

－

1,303

－

－

5

5

－

－

12

12

－

－

－

－

1,303

－

17

1,320

－

－
－

560
13,726

Derivative assets
Term deposits which mature due within
three months
Current portion of long-term loans
receivable
Other
Subtotal
Other financial asset (non-current)

Financial
instrument
measured atamortized cost

Total

Derivative assets
Securities

560－

Long-term loans receivable－

13,726
－

36

36

Other

－

140

5,049

5,189

Subtotal

560

13,866

5,085

19,511

Total

1,863

13,866

220,919

236,648

115

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

As of December 31, 2022
(Millions of yen)
Financial
instrument
measured atfair value
through profit
or loss

Financial
instrument
measured atfair value
through othercomprehensiv
e income

Financial
instrument
measured atamortized cost

Cash and cash equivalents
Trade and other receivables

－
－

－
－

84,074
103,346

84,074
103,346

Other financial asset (current)
Derivative assets

527

－

－

527

Term deposits which mature due within
three months

－

－

5

5

Current portion of long-term loans
receivable

－

－

10

10

Other

－

－

－

－

527

－

15

542

Derivative assets
Securities

22
－

－

22
11,747Long-term loans receivable－

11,747
－

－
－
27

27

Other

－

89

4,003

4,093

Subtotal

22

11,836

4,030

15,888

Total

548

11,836

191,466

203,851

Subtotal
Other financial asset (non-current)

Total

Financial liabilities
As of December 31, 2021
(Millions of yen)
Financial instrument
measured at fair value
through profit or loss

Financial instrument
measured atamortized cost

Trade and other payables－

103,260

103,260

Bonds and loans payable
Lease liabilities－－

187,61226,512

187,61226,512

Total－

317,385

317,385

116

Total

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

As of December 31, 2022
(Millions of yen)
Financial instrument
measured at fair value
through profit or loss

Financial instrument
measured atamortized cost

Trade and other payables－

108,254

108,254

Bonds and loans payable
Lease liabilities－－

156,701
23,269156,701
23,269Other financial liabilities (current)
Derivative liabilities

654

－

654

654

－

654

8
8

－
－

8
8

662

288,224

288,887

Subtotal
Other financial liabilities (non-current)
Derivative liabilities
Subtotal
Total

Total

Since the Group holds securities for strategic investment purposes, these securities are designated as equity
instruments measured at fair value through the other comprehensive income.
The following is a fair value of the major issues of equity instruments measured at fair value through othercomprehensive income.
(Millions of yen)
Issue

Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

Nishi-Nippon Railroad Co., Ltd.

1,044

988

Central Japan Railway Company
East Japan Railway Company

830
813

877
865

IZUMI Co., Ltd.

Oriental Land Co., Ltd.

746
661

691
655

Japan Airport Terminal Co.,Ltd.

480

653

Dividends income related to investments held at the reporting date was as follows:(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021)
Dividends income

Current fiscal year
(From January 1, 2022
to December 31, 2022)

189

187

The Group disposed a part of the equity instrument designated as measurement at fair value through othercomprehensive income during the fiscal year from the viewpoint of reviewing business relationships. The fair value,
the cumulative gains or losses (before tax effects) at the time of disposition and the dividends income were as follows:(Millions of yen)Previous fiscal year
(From January 1, 2021 to December 31, 2021)
Fair value
7,612

Cumulative gain
(Loss)
1,577

Current fiscal year
(From January 1, 2022 to December 31, 2022)

Dividends
incomeFair value
70

2,485

Cumulative gain
(Loss)

Dividends
income917

Cumulative gains or losses recognized in accumulated other comprehensive income are reclassified fromaccumulated other comprehensive income to retained earnings at the time of disposition.
Reference: Note 20. Equity (5) Accumulated other comprehensive income

117

50

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(7) Fair value of financial instruments(a) Classification by level of the fair value Hierarchy
Financial instruments measured at fair value on a recurring basis after initial recognition are classified into threelevels of the fair value hierarchy, depending on the observability and significance of the inputs used in the measurement.
The fair value hierarchy is defined as follows:
Level 1: fair value (unadjusted) in the active market of the same asset or liability
Level 2: fair value based on inputs other than quoted prices included in Level 1, either directly observable inputs orindirectly, of observable inputs for asset or liability
Level 3: fair value based on unobservable inputs for asset or liability
When more than one input is used to measure the fair value, the level of the fair value hierarchy is determined basedon the lowest level of inputs that is significant to the fair value measurement as a whole. Transfers between levels of
the fair value hierarchy are recognized as having occurred at the beginning of each quarter.
There were no transfers between Level 1 and Level 2 during the previous fiscal year and current fiscal years.
(b) Fair value measurement
Securities are classified as Level 1 of the fair value hierarchy by the measurement of share prices, if any, an active
market for the same asset or liability. If there is no active market stock price for the same asset or liability, the Group
uses valuation techniques such as stock prices in non-active markets, quoted market prices of similar companies anddiscounted future cash flow models. If significant inputs, such as quoted market prices and discount rates used inmeasurement, are observable, such financial instruments are classified as Level 2, but are classified as Level 3 if inputs
used in its measurement include significant unobservable inputs.
Unlisted securities are classified into Level 3 of the fair value hierarchy using valuation techniques based on
discounted future cash flows, valuation techniques based on quoted market prices of similar companies, valuation
techniques based on net asset value, and other valuation techniques. In the fair value measurement of unlisted securities,
the Group uses unobservable inputs such as discount rates and valuation multiples and considers certain illiquidity
discounts and noncontrolling interest discounts as needed. The measurement methods for such fair value aredetermined by the Finance division in accordance with the Group’s accounting policies.
The valuation techniques and significant unobservable inputs used in Level 3 fair value measurement are as follows:
As of December 31, 2021
Type
Financial
instrument
measured at fairvalue through other

ValuationtechniqueSignificant unobservable inputs

Interactions between significant
unobservable inputs and fair value
measurement

Comparison

EBIT Multiple: 5.2- 51.0 times

Estimated fair value increases (decreases)of similar
companies

EBITDA Multiple: 5.9 times
PBR: 0.9 – 2.6 times

when equity indices of comparable listedcompanies of the target are high (low)Significant unobservable inputs

Interactions between significant
unobservable inputs and fair value
measurement

comprehensive
income (Securities)
EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDAPBR: Price Book Value Ratio
As of December 31, 2022
Type

Valuationtechnique

Financial
instrument
measured at fairvalue through othercomprehensive

EBIT Multiple: 6.2-7.9 times
Comparisonof similar

EBITDA Multiple: 8.2 times
PER: 6.7 – 32.9 times

Estimated fair value increases (decreases)
when equity indices of comparable listedcompanies

PBR: 0.9-2.2 times

companies of the target are high (low)income (Securities)
EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDA
PER: PER: Price-Earnings Ratio
PBR: Price Book Value Ratio
118

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(c) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis is as follows:
As of December 31, 2021
(Millions of yen)
Level 1

Level 2

Level 3

Total

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

1,863

－

1,863

－

1,863

－

1,863

9,443
－

－

4,283

13,726

－

140

140

Subtotal

9,443

－

4,423

13,866

Total

9,443

1,863

4,423

15,729

－

－

－

－

－

－

－

－

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

Financial liabilities
Financial instrument measured at fair value
through profit or loss:
Derivative liabilities
Total
As of December 31, 2022
(Millions of yen)
Level 1

Level 2

Level 3

Total

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

548

－

548

－

548

－

548

8,701
－

－

3,046

11,747－89

89

Subtotal

8,701

－

3,135

11,836

Total

8,701

548

3,135

12,385

－

662

－

662

－

662

－

662

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

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

The main valuation techniques used to fair value measurement the financial instruments in the table above are as follows:a. Securities
Listed securities are measured based on quoted market prices and are classified into fair value hierarchy level 1.
b. Derivatives
The fair value of foreign currency forward contracts is calculated by discounting the value calculated using theforward exchange rate as of the end of the reporting period to the present value. As a result, foreign currency forward
contracts are classified into fair value hierarchy level 2.
119This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 is as follows:(Millions of yen)
Financial assets measured at fair value through othercomprehensive income
Balance at January 1, 2021
Purchase

4,6942

Disposals
Gains or losses recognized in other comprehensive income

(27)
(246)

Balance at December 31, 2021
Purchase

4,4232

Disposals
Gains or losses recognized in other comprehensive income

(487)
(805)

Other

2

Balance at December 31, 2022

3,135

Gains or losses recognized in other comprehensive income are recognized in "Net changes in financial asset
measured at fair value through other comprehensive income" in the consolidated statements of comprehensive income.
(d) Financial instrument measured at amortized cost
The components of carrying amount and fair value of financial instruments measured at amortized cost are as
follows:
As of December 31, 2021
(Millions of yen)
Carrying amountLong-term loans payable and bonds

187,612Fair value

Difference

187,982(370)

As of December 31, 2022
(Millions of yen)
Carrying amountLong-term loans payable and bonds

156,701

Fair value
154,389

Difference
2,312Long-term loans payable and bonds include current portion. Cash and cash equivalents, trade and other receivables,
trade and other payables are not included in the above table because their fair value approximates its carrying amountbecause they are collected and settled in a short period of time.
The main valuation techniques used to fair value measurement the financial instruments in the table above are as
follows:
a. Loans payable
Loans payable with variable interest rates are calculated the carrying amount as its fair value because interest rates
are considered to reflect market interest rates in the short term. Loans payable with fixed interest rates is calculated
based on the present value of future cash flows discounted using interest rates adjusted for remaining term and credit
risk. Loans payable with variable interest rates and fixed interest rates are classified into level 2 of the fair value
hierarchy.
b. Bonds
For bonds with quoted market prices, the fair value is estimated based on quoted market prices. For bonds without
quoted market prices, the fair value is calculated based on the present value of future cash flows discounted using
interest rates adjusted for the remaining term and credit risk. Bonds with quoted market prices are classified intolevel 1 of the fair value hierarchy and bonds without quoted market prices are classified into level 2.

120This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(8) Derivatives and hedge accounting
The management of hedge accounting for the risk management of the Group is described in "(1) Financial risk
management". Derivative transactions are conducted by Coca-Cola Bottlers Japan Inc.
(a) Impacts on the consolidated statements of financial position
The impact of hedging instrument designated as hedges on the consolidated statements of financial position was asfollows: The carrying amount (fair value) of assets related to hedging instrument is included in "Other financial assets"
and the carrying amount (fair value) of liabilities related to hedging instrument is included in "Other financial
liabilities".
As of December 31, 2021
(Millions of yen)
Hedge typeHedging
instrument

Risk category

Carrying amount (fair value)
AssetsLiabilities

ForwardCurrency
Cash flow hedges

Notional
amountrisk

exchange
contracts

Price risk

Commodity
swap
Total

10,007

730

－

4,816

1,133

－

14,823

1,863－

The average exchange rate used for forward exchange contracts was 106.17 yen per U.S. dollar.
As of December 31, 2022
(Millions of yen)
Hedge typeHedging
instrument

Risk category

Forwardexchange

Currencyrisk

Cash flow hedges

Notional
amountcontracts
Commodity

Price risk

swap
Total

Carrying amount (fair value)
AssetsLiabilities

12,63793

162

15,235456

501

27,872

548

662

The average exchange rate used for forward exchange contracts was 129.15 yen per U.S. dollar.
In hedging transactions conducted by the Group, the entire hedged item items are hedged, and there are notransactions to hedge certain risk elements.
The periods of hedge for cash flows movements of foreign currency forward contracts and commodity swaps arefrom February 2022 to January 2024 and from January 2022 to January 2023, respectively.
Accumulated other comprehensive income related to cash flow hedges was as follows: There were no accumulated
other comprehensive income related to cash flow hedges arising from hedge relationships that discontinued hedge
accounting.
(Millions of yen)Previous fiscal year
(As of December 31, 2021)
Forward exchange contracts
Commodity swap
Total

121

Current fiscal year
(As of December 31, 2022)
449
696

(89)
(74)

1,145

(163)

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(b) Impact on the consolidated statements of profit or loss and consolidated statements of comprehensive income
The impacts on profit or loss and other comprehensive income related to hedging instrument designated as cash
flow hedges were as follows:
For the year ended December 31, 2021
(Millions of yen)Amounts
reclassified fromaccumulated othercomprehensive
income to profit orloss asreclassification
adjustments

Amount of hedging
gains or losses
recognized in othercomprehensive
incomeHedge
ineffectivenessrecognized in profit
or loss

Changes in fairvalue of hedging
instrument used as
the basis forrecognizing thehedge ineffective

Currency risk
Price risk

965
3,370

5
－

730
1,133

－
－

Total

4,335

5

1,863

－

Risk category

For the year ended December 31, 2022
(Millions of yen)Amounts
reclassified fromaccumulated othercomprehensive
income to profit orloss asreclassification
adjustments

Amount of hedging
gains or losses
recognized in othercomprehensive
incomeHedge
ineffectivenessrecognized in profit
or loss

Changes in fairvalue of hedging
instrument used as
the basis forrecognizing thehedge ineffective

Currency risk
Price risk

1,056
855

20
－

(69)
(45)

－
－

Total

1,910

20

(114)

－

Risk category

Changes in the value of the hedged item used as the basis for recognizing the hedge ineffectiveness approximatechanges in the fair value of hedging instrument.
There are no reclassification adjustments due to discontinuation of hedges, etc. If hedged item is a forecast
transaction, such as acquisition of inventories, accumulated gains, or losses on hedges in "Accumulated othercomprehensive income" are reclassified to cost of inventories and other.
The hedge ineffective portion recognized in profit or loss and the amount reclassified to profit or loss as
reclassification adjustments are included in finance income and finance expenses.
Because the terms between hedged item and hedging instrument are not perfectly matched, the differences in terms
result in the hedge ineffective portion.

122

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

32. Significant subsidiaries
Significant subsidiaries of the Groups are as follows: Unless otherwise indicated, subsidiary's capital consists of ordinary
share directly owned by the Group and its percentage ownership is the same as the percentage of voting power owned by
the Group. The principal business locations are the same as those of the Company.
Percentage of voting rightOperatingsegment

Beveragebusiness

Name ofsubsidiary
Coca-Cola
Bottlers JapanInc.

Location of head
officeThe details of
the business

Minato-ku,

Manufactureand sales ofTokyo

FV Japan Co.,

Toshima-ku,

Ltd.

Tokyo

Coca-Cola
Bottlers Japan
Vending Inc.

beverage andfoodSales ofbeverages andCurrent fiscal year
(As of December
31, 2022)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

foods
Vending

Minato-ku,
Tokyomachineoperation
On-siteadministration

Coca-Cola
Bottlers Japan
Business

Previous fiscal
year(As of December
31, 2021)

Minato-ku,Tokyorelated withsales ofServices Inc.

beverage/food(NOTE) Percentage of voting rights include indirect holdings through subsidiary.

123

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

33. Investments accounted for using the equity method
The primary associates of the Group are as follows: The principal business locations are the same as those of the Company.
There is no individually significant associate.
Percentage of voting rightOperatingsegment

Beverage

Name of associate

Resources Inc.

business

Location of head
officeThe details of
the businessTakamatsu-

Vending
machine-shi, Kagawa

relatedbusiness

Previous fiscal
year(As of December
31, 2021)

Current fiscal year
(As of December
31, 2022)

44.0%

44.0%

(NOTE) Percentage of voting rights include indirect holdings through subsidiary.
34. Commitment
Purchase commitments
Commitments related to acquisition of property, plant and equipment and intangible asset after the reporting date areas follows:(Millions of yen)Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

8,342
－

1,774

8,342

1,796

Property, plant and equipment
Intangible assets
Total

2

Purchase commitments excluding the above amounts were 5,600 million yen and 7,468 million yen for the previous
fiscal year and the current fiscal year, respectively. Primarily due to the contract of outstanding obligations related to thegas purchasing contract.
35. Earnings per share
The computation of basic earnings (loss) per share attributable to owners of the parent is based on net profit for the year
attributable to owners of the parent and the weighted-average number of shares of ordinary share outstanding.
Basis for calculation of basic earnings (loss) per share is as follows:
Previous fiscal year
Current fiscal year
(From January 1, 2021
(From January 1, 2022
to December 31, 2021)
to December 31, 2022)
Loss from continuing operations attributable to owners ofparent (Millions of yen)
Loss from discontinued operations attributable to ownersof parent (Millions of yen)
Weighted-average shares of ordinary share outstanding (inthousands)
Basic earnings(loss) per share (Yen)Continued operations(15,008)(8,070)12,505－

179,346

179,342(83.68)(45.00)Discontinued operations
69.72－
Basic loss per share (Yen)(13.96)(45.00)(NOTE) 1. In the previous fiscal year and the current fiscal year, 415 thousand shares and 751 thousand shares of stock-based
compensation were accounted for antidilutive, "Diluted earnings per share" is not shown.
2. For more information on the Loss from discontinued operations attributable to owners of parent, see Note 9, " Disposalgroups classified as held for sale and discontinued operations about in the previous consolidated fiscal year.

124

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

36. Related party transactions
Transaction amounts and amounts outstanding with the related parties were as follows: Transactions with subsidiaries are
not disclosed as they have been eliminated in consolidated financial statements.
For the year ended December 31, 2021
(Millions of yen)
Relationship withaffiliated companies

Name

Transaction

The amount of thetransaction

Amount outstanding

Income from
Subsidiary of othersubsidiaries andCoca-Cola (Japan)
Company, Limited

associates
An officer of theparent company
holds a majority ofthe voting rights inanother company, etc.

MICHINOKU
COCA-COLABOTTLING CO.,LTD.

rebates of sales
promotion

130,653

25,374

313,590

11,280

Sale of soft drinks

3,109

278

Purchase of softdrinks70

9Purchase ofconcentrate

For the year ended December 31, 2022
(Millions of yen)
Relationship withaffiliated companies

Name

Transaction

The amount of thetransaction

Amount outstanding

Income from
Subsidiary of othersubsidiaries andCoca-Cola (Japan)
Company, Limited

associates

rebates of sales
promotion
Purchase ofconcentrate

128,436

18,772

316,898

13,317

An officer of theSale of soft drinks
2,860
234
MICHINOKU
parent company
COCA-COLA
holds a majority of
Purchase of soft
BOTTLING CO.,78
5
the voting rights inLTD.
drinksanother company, etc.
Note 1. The transaction amount does not include consumption taxes, but the amount outstanding includes consumption taxes.
2. Transactions with The Coca-Cola Company's subsidiary, Coca-Cola (Japan) Company, Limited are conducted based on thecontract concluded with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited concerning the manufacture, saleof the Coca-Cola etc. and use of the Coca-Cola trademark.
3. Transactions with Michinoku Coca-Cola Bottling Co., Ltd. are determined in the same way as transactions with other parties
with no association with our company and under the general trading terms and conditions that take into consideration the market
prices, etc.
Compensation for major key management personnel is as follows:
Previous fiscal year
(From January 1, 2021
to December 31, 2021

(Millions of yen)
Current fiscal year
(From January 1, 2022
to December 31, 2022

Remuneration

489

611

Stock-based compensation
Bonus
Compensation upon retirement

234
120

250
181

21
74

21
21

937

1,085

Other
Total
37. Significant subsequent events after the reporting period
Not applicable125This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(2) Other information
Quarterly Information etc. for the current consolidated fiscal year
1st quarter(Year-to-date)
Revenue

2nd quarter3rd quarter

Current fiscal year

(Yen)

168,853

375,948

612,321807,430(Yen)(10,031)(15,121)(7,947)(12,491)

Net loss in attributable to owners of theparent for the quarter or year

(Yen)

(6,568)(9,899)(5,194)(8,070)Loss per share(Yen)(36.62)(55.20)(28.96)(45.00)Net loss before income taxes andminority interests for the quarter or year

1st quarter(Quarter-to-date)
Earnings (loss) per share(Yen)(36.62)126

2nd quarter(18.57)

3rd quarter
26.24

4th quarter(16.04)

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

2. Financial Statements (Non-consolidated)(1) Financial statements (Non-consolidated)① Balance sheet(Millions of yen)Previous fiscal year
(As of December 31, 2021)
AssetsCurrent assets
Cash and deposits
Prepaid expense
Short-term loans to affiliates
Account receivables - other
Other
Total current assets
Fixed assets
Property, plant and equipment
Buildings
Structures
Machinery, equipment and vehicles
Land
Total property, plant and equipment
Intangibles assets
Leasehold
SoftwareTotal intangibles asset
Investments and other asset
Investment securities of subsidiaries andassociates
Deferred tax assets
Other
Total investments and other assets
Total fixed assets
Total assets

127

Current fiscal year
(As of December 31, 2022)

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

6,285
409
92,555294－
99,543

13,031924
13
48,21662,185

11,938806
947,61360,366

27
1
28

27
0
27

342,561

342,561184
544
343,289405,502543,41021423
343,005
403,398
502,941This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Millions of yen)Previous fiscal year
(As of December 31, 2021)
Liabilities
Current liabilities
Current portion of bonds
Accounts payable
Accrued expenses
Deposits
Bonus provision
Provision of directors' bonuses
Income tax payable
Other
Total current liabilities
Non-current liabilities
Bonds
Allowance for retirement benefit
Asset retirement obligations
Performance-linked compensation provision
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Excess tax depreciation reserve
General reserve
Retained earnings brought forward
Total retained earnings
Treasury Stock
Total shareholders' equity
Total net assets
Total liabilities and net assets

128

Current fiscal year
(As of December 31, 2022)

30,000
333
4
9,722
4
120
―
91
40,274

－
347
3
5,622
7
181
647
241
7,048

150,000
1,039
197
87
151,324
191,598

150,000
2
926
449
115
151,492
158,540

15,232

15,232

108,167
158,783
266,950

108,167
158,783
266,949

3,317

3,317

676
110,388
40,911
155,292(85,661)
351,812351,812543,410675
110,388
33,507
147,887(85,667)
344,402344,402502,941This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

② Statements of profit or loss
(Millions of yen)Previous fiscal year
(From January 1, 2021
to December 31, 2021
Operating revenue
Operating expenses
Operating profit
Non-operating income
Interest and dividends income
Compensation for expropriation
Other
Total non-operating income
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sales of stocks of subsidiaries and affiliates
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Impairment losses
Loss on disposal of fixed assets
Total extraordinary losses
Income before income tax
Income taxes
Income tax adjustments
Total income taxes
Net profit

129

Current fiscal year
(From January 1, 2022
to December 31, 2022

5,797
4,257
1,540

5,640
3,713
1,927

183
―
19
202

149
168
14
331

472
69
541
1,201

368
21
388
1,869

1,359
17,57918,938

615
－
615

33
298
3
333
19,805
1,054
356
1,410
18,395

－
15
－
15
2,469
743
163
906
1,562

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

③ Statements of changes in equity
Previous fiscal year (From January 1, 2021 to December 31, 2021)(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Capital stock
Legal capital reserve Other capital surplus Total capital surplus
Balance at January 1, 2021

Legal reserve

Other retained
earnings

15,232

108,167

158,783

266,950

3,317

142,547

Dividend of surplus

－

－

－

－

－

(8,967)

Net profit

－

－

－

－

－

18,395Purchase of treasury stock

－

－

－

－

－

－

Disposal of treasury stock

－

－

(0)

(0)

－

－

Net changes in items otherthan shareholders' equity

－

－

－

－

－

－

Total changes during the year

－

－

(0)

(0)

－

9,428

Balance at December 31, 2021

15,232

108,167

158,783

266,950

3,317

151,975

Changes during the year

Shareholders' equity
Retained earnings
Total retained
earnings
Balance at January 1, 2021

Total shareholders’equityTreasury stock

Total net assets

145,864(85,654)342,391

342,391

Dividend of surplus(8,967)－(8,967)(8,967)

Net profit

18,395－

18,395

18,395Purchase of treasury stock

－

(8)

(8)

(8)

Disposal of treasury stock

－

1

0

0

Net changes in items otherthan shareholders' equity

－

－

－

－

Total changes during the year

9,428

(7)

9,421

9,421

Balance at December 31, 2021

155,292(85,661)

351,812351,812

Changes during the year130This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Current fiscal year (From January 1, 2022 to December 31, 2022)(Millions of yen)
Shareholders' equity
Capital surplus

Retained earnings

Capital stock
Legal capital reserve Other capital surplus Total capital surplus
Balance at January 1, 2022

Legal reserve

Other retained
earnings

15,232

108,167

158,783

266,950

3,317

151,975

Dividend of surplus

－

－

－

－

－

(8,967)

Net profit

－

－

－

－

－

1,562

Purchase of treasury stock

－

－

－

－

－

－

Disposal of treasury stock

－

－

(0)

(0)

－

－

Net changes in items otherthan shareholders' equity

－

－

－

－

－

－

Total changes during the year

－

－

(0)

(0)

－

(7,405)

Balance at December 31, 2022

15,232

108,167

158,783

266,949

3,317

144,570

Changes during the year

Shareholders' equity
Retained earnings
Total retained
earnings
Balance at January 1, 2022

Total shareholders’equityTreasury Shares

Total net assets

155,292(85,661)

351,812351,812Dividend of surplus(8,967)－(8,967)(8,967)

Net profit

1,562

－

1,562

1,562

Purchase of treasury stock

－

(6)

(6)

(6)

Disposal of treasury stock

－

0

0

0

Net changes in items otherthan shareholders' equity

－

－

－

－

Total changes during the year

(7,405)(5)(7,410)(7,410)

Balance at December 31, 2022

147,887(85,667)

344,402344,402

Changes during the year131

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Supplemental notes of the statement of changes in equity(NOTE) Breakdown of other retained earnings
Previous fiscal year (From January 1, 2021 to December 31, 2021)
Other retained earnings
Advanced
Other voluntary
depreciation
reserve fundreserve fund(Millions of(Millions of
yen)
yen)
Balance at January 1

Deferred
retainedearnings(Millions ofyen)

Total otherearnings(Millions of
yen)

677

110,388

31,482

142,547

Dividend of surplus－－(8,967)(8,967)

Net income－－

18,395

18,395

Reversal of reserve funds

(1)

－

1

－

Purchase of treasury stock

－

－

－

－

Disposal of treasury stock

－

－

－

－

Changes in items other thanshareholders' equity, net

－

－

－

－

Total changes during the year

(1)

－

9,429

9,428

Balance at December 31

676

110,388

40,911

151,975

Changes during the year

Current fiscal year (From January 1, 2022 to December 31, 2022)
Other retained earnings
Advanced
Other voluntary
depreciation
reserve fundreserve fund(Millions of(Millions of
yen)
yen)
Balance at January 1

Deferred
retainedearnings(Millions ofyen)

Total otherearnings(Millions of
yen)

676

110,388

40,911

151,975

Dividend of surplus－－(8,967)(8,967)

Net income

－

－

1,562

1,562

Disposal of treasury stock

(1)

－

1

－

Reversal of reserve funds

－

－

－

－

Purchase of treasury stock

－

－

－

－

Changes in items other thanshareholders' equity, net

－

－

－

－

Total changes during the year(1)－

(7,404)(7,405)675

110,388

33,507

144,570

Changes during the year

Balance at December 31

132

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

【Notes】(Significant accounting policies)
1. Accounting policy for measuring securities(1) Bonds held to maturity
These are measured at amortized cost (straight-line method).
(2) Investment securities of subsidiaries and associates
These are measured at cost determined mainly by the moving-average method(3) Other securities
With market value:
These are measured by the market value method based on market prices as of the end of the fiscal year (valuationdifferences are all included in net assets, and the sold cost of securities is determined by the moving-average method).
Without market value:
These are measured at cost determined principally by the moving-average method.
2. Accounting policy for depreciation of assets(1) Property, plant and equipment
Depreciation is calculated by the straight-line method. The main useful life is as follows:
Buildings
2 – 50 years(2) Intangibles assets
Amortization is calculated by the straight-line method.
3. Accounting policy for provisions(1) Bonus provision
Bonus provision is recognized at the estimated amount to be paid as of the fiscal year, in order to prepare for thepayment of bonuses to employees.
(2) Provision of directors' bonuses
Provision of directors' bonuses is recognized as the estimated amount to be paid as of the fiscal year, in order to prepare
for the payment of bonuses to directors and corporate auditors.
(3) Performance-linked compensation provision
Performance-linked compensation provision is recognized the estimate amount to be paid as of the fiscal year, in orderto prepare for the payment of shares and cash to executive directors and executive officers.
(4) Allowance for retirement benefit
In order to prepare for the payment of retirement benefit, the company records an estimate payment amount as of theend of year. Actuarial gains and losses are amortized from the following fiscal year by the straight-line method over a
fixed number of years within the average remaining service period of employees.
4. Accounting standards for income and expenses
The Company’s operating revenue consists of real estate rents and dividends income from subsidiaries. The main
performance obligation in real estate rents is the provision of goods or services to subsidiaries. Since the performanceobligation is satisfied when control of these promised goods or services is transferred to the customer, revenue isrecognized when the performance obligation is satisfied. Dividends income is recognized as of the effective date ofdividends.
5. Other important matters that form the basis for the preparation of financial statements
Accounting for Retirement Benefits
The method of accounting for unrecognized actuarial differences related to retirement benefits differs from themethod of accounting for these items in the consolidated financial statements.

(Application of Accounting Standard for Revenue Recognition, etc.)"Accounting Standard for Revenue Recognition" (Accounting Standards Board of Japan (ASBJ) Statement No. 29,
March 31, 2020; Hereinafter referred to as "Revenue Recognition Accounting Standard"), etc. is applied from the
beginning of the current fiscal year, and revenue is recognized in the amount expected to be received in exchange forpromised goods or services when control of the goods or services is transferred to a customer.
The application of the standard has no effect on profit and loss for the current fiscal year and the balance of retained
earnings at the beginning of the fiscal year.
In accordance with the transitional treatment stipulated in Paragraph 89-3 of the Revenue Recognition AccountingStandard, notes related to revenue recognition for the previous fiscal year are not presented.
133

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Application of Accounting Standard for Fair Value Measurement, etc.)"Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4, 2019; Hereinafter referred to as"Fair Value Measurement Accounting Standard"), etc. is applied from the beginning of the current fiscal year, and inaccordance with the transitional treatment stipulated in Paragraph 19 of the Fair Value Measurement Accounting Standard
and Paragraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the
new accounting policies prescribed by the Fair Value Measurement Accounting Standard and others are applied
prospectively. This change had no effect on the financial statements for the current fiscal year.

134This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Notes to Balance Sheet)※1 Amounts related to subsidiaries and associates included in them are as follows:
Previous fiscal year
(As of December 31, 2021)
Short-term monetary receivables
Short-term monetary payables

82 million yen
9,757

Current fiscal year
(As of December 31, 2022)
294 million yen
5,652

2 Contract for overdraft
The Company has entered into overdraft contracts with six banks to efficiently secure working capital. The unused
outstanding of the overdraft contracts as of the end of the previous fiscal year and the current fiscal year is as follows:
Previous fiscal year
(As of December 31, 2021)
Maximum overdraft amount
Used outstanding of loans
Net amountCurrent fiscal year
(As of December 31, 2022)

255,000 million yen－

255,000 million yen－

255,000

255,000(Notes to statement of profit or loss)※1 Transactions with affiliated companies
Previous fiscal year
(From January 1, 2021
to December 31, 2021)
Sales revenue and operating revenue

5,797 million yen

Current fiscal year
(From January 1, 2022
to December 31, 2022)
5,640 million yen

Sales expense－

122

Transactions excluding operating transactions

182

149

※2Major items and amounts of selling, general and administrative expenses and operating expenses are as follows:
Previous fiscal year
(From January 1, 2021
to December 31, 2021)
Depreciation.

1,578 million yen

Current fiscal year
(From January 1, 2022
to December 31, 2022)
1,103 million yen

Taxes and dues
Rents expenses

797
682

742
495

Consignment expenses of business activities
Directors’ remuneration

68
572

134
653

Provision for directors' bonus provision
Provision for performance-linked

120

181

103

251

13

9

3
2

5
13

compensation provision
Advertising expenses
Retirement benefit expenses
Bonuses and provision for bonuses provision※3 The breakdown of gain on sales of non-current assets is as follows:
Previous fiscal year
(From January 1, 2021
to December 31, 2021)
Buildings

1,325 million yen

Current fiscal year
(From January 1, 2022
to December 31, 2022)
147 million yen

Structures

33

6

Land

1

462

135

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

※4 The breakdown of loss on sales of non-current assets is as follows:
Previous fiscal year
(From January 1, 2021
to December 31, 2021)

Current fiscal year
(From January 1, 2022
to December 31, 2022)

Buildings

26 million yen－ million yen

Structures

7

－

Land

0

－

※5 Impairment losses
The Company decides the grouping of assets for business-by-business units for managerial accounting purposes whose
profit or loss is managed on an ongoing basis. In addition, for rental assets and idle assets, the Company identifies eachindividual property as the smallest unit for grouping and assesses the indication of impairment.
For the buildings, structures, and land of the applicable base of the idle assets whose land value has declined, the carrying
amount has been reduced to its recoverable amount, and the amount of such reduction is recorded as impairment losses.
The recoverable amount of idle asset is calculated based on real estate appraisal value.
Previous fiscal year (From January 1, 2021 to December 31, 2021)
RegionUse

Number of sites

KyushuIdle asset

1

Type

Impairment losses

Buildings

262

Structures

36

Current fiscal year (From January 1, 2022 to December 31, 2022)
RegionUse

Number of sites

KyushuIdle asset

1

Type

Impairment losses

Land

15

Buildings

0(Securities)
The market values of stocks of subsidiaries and affiliates (the amount on the balance sheets for the previous and current
fiscal years is 342,561 million yen for stocks of subsidiaries) are not stated because stocks of subsidiaries and affiliates do nothave market prices.

136

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(Tax effect accounting)
1. The breakdown of major causes of deferred tax assets and deferred tax liabilities
Previous fiscal year
(As of December 31, 2021)

Current fiscal year
(As of December 31, 2022)

1,775 million yen
323

1,720 million yen
225

Deferred tax assets
Excess of depreciation
Impairment losses
Other
Subtotal deferred tax assets

728

726

2,827

2,670

Valuation allowance

(471)

(536)

Total deferred tax assets

2,356

2,134

Deferred tax liabilities
Advanced depreciation reserve fund

(919)

(913)

Difference on revaluation of land
Other

(1,182)(70)(1,151)(49)(2,171)(2,114)

184

21

Total deferred tax liabilities
Deferred tax assets (liabilities), net

2. Differences between the statutory tax rate and the applicable tax rate after tax effectPrevious fiscal year
(As of December 31, 2021)
Statutory tax rate
Adjustments:
Dividends income
Permanent differences such as entertainment
expenseValuation allowance
Other
Applicable tax rate after tax effectCurrent fiscal year
(As of December 31, 2022)

30.6%

30.6%

(24.6)

－

0.5

7.8

0.6

(2.1)

0.0

0.3

7.1

36.7

(Revenue Recognition)
Information that provides a basis for understanding revenues from contracts with customers is described in note 3,“Significant accounting policies, 4. Accounting standard for income and expense.”(Significant subsequent events after the reporting period)
Not applicable.

137

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

④ Annexed detailed schedules
Annexed detailed schedule of property, plant and equipment(Millions of yen)
Balance at the
beginning of
the year

Increaseduring theyear

Buildings

67,19146

Structures

11,6262

35

Classification

Property, plantand equipment

Type of asset

2,313

1,008

64,924

52,986543

96

11,085

10,278

－

－

4

35

26

48,216

－

603
(15)

－

47,613－127,068

48

1,109

123,656

63,290

Leasehold

27

－

－

－

27

－

Software

5

－

－

1

5

5

32

－

－

1

32

5

Machinery, equipment,
vehicles
Land

Total
Intangible
assetsDecreaseduring theyear

Accumulated
Depreciation
depreciation,
andBalance at end amortizationamortizationof the year andduring theimpairment
year
losses

Total

(0)

3,459
(15)

(NOTE) 1. Breakdown of main decrease is as follows:
Impact of sales ohita-higashi officeLand
Impact of sales kansai-sawayaka training center
Building

Impact of sales IDC ohita office
Impact of sales Fukuoka-sawayaka training center

320 million yen
155 million yen
75 million yen
192 million yen

2.The figures in the ( ) in “Decrease during the year” represent the amount of impairment loss recorded.
3. The balance at the beginning of the fiscal year and the balance at the end of the fiscal year are stated based on theacquisition price.

Annexed detailed schedule of provisions
Account title

Balance at the beginning
Increase during the yearof the year

Allowance for bonuses

Decrease during theyear(Millions of yen)
Balance at the end of the
year

4

7

4

7

Allowance for officers’ bonuses

120

181

120

181

Officer’s compensation

197

449

197

449

(2) Components of major assets and liabilities
This information is omitted because the consolidated financial statements are prepared.
(3) Other information
Not applicable.

138

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Ⅵ. Overview of operational procedures for shares
Accounting period

From January 1 to December 31

Ordinary General
Meeting of Shareholders

March

Record date

December 31

Record date of dividend

June 30
December 31

Number of sharesconstituting one unit

100 shares

Purchase and sales ofshares less than one unit
(Special Account)Handling place

Administrator of
Shareholders’ Register

Sumitomo Mitsui Trust Bank, Limited
Stock Transfer Agency business Planning Department
4-5-33 Kitahama, Chuo-ku, Osaka-shi(Special Account)
Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo

Forward office――――――
Calculate the amount of fee per unit based on the following formula and make this amountproportional to the number of odd-lot shares purchased or purchased.

Purchase or purchaseincrease fee(Calculation formula) Amount of total purchased price or price per purchase multiplied by one unit
share number
Amount less than 1 million yen
1.150％
Amount in excess of 1 million yen and 5 million yen or less
0.900％
Amount of 5 million yen or more and 10 million yen or less
Amount more than 10 million yen and 30 million yen or less0.700％
0.575％

Amount more than 30 million yen and 50 million yen or less
0.375％（If fractional numbers less than the circle are generated, truncation）
However, if the calculated amount per unit is less than 2,500 yen, it shall be 2,500 yen.
New ticket delivery
fee

Free
Electronic public notice on the Company’s website (https://www.ccbj-holdings.com/).

Publication notice
publication method

However, if it is not possible to make public notices by electronic public notice due to an
accident or other unavoidable circumstances, public notices shall be listed in Nihon
Keizai Shimbun.

Benefits to shareholders

Not applicable(Note) Rights for shares of less than one unit
Pursuant to the Company’s articles of incorporation, shareholders holding shares of less than one unit of shares have no rights other thanthose listed below:- Rights listed in Article 189, Paragraph 2 of the Companies Act.
- The right to make demands pursuant to Article 166, Paragraph 1 of the Companies Act- The right to receive allotment of shares for subscription or stock acquisition rights for subscription according to the number of shares
held by the shareholder- The right to demand cash-out of shares of less than one unit of shares

139

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Ⅶ. Reference information about the Company
1. Information about parent company of reportable segment
The Company has no parent company, etc. stipulated in Article 24-7, Paragraph 1 of the Financial Instruments and Exchange Act.

2. Other reference information
The following documents have been submitted between the start date of this fiscal year and the date of submission of the securities
report.
(1) Securities report and its attached documents and confirmation
Business year (64th term) (January 1, 2021 to December 31, 2021) Submitted to Kanto Finance Bureau March 25, 2022
(2) Internal control report
Submitted to Kanto Finance Bureau March 25, 2022
(3) Quarterly report and confirmation(First quarter of the 65th term) (January 1, 2022 to March 31, 2022) Submitted to Kanto Finance Bureau Chief May 13, 2022
(Second quarter of the 65th term) (April 1, 2022 to June 30, 2022) Submitted to Kanto Finance Bureau Chief August 12, 2022
(Third quarter of the 65th term) (July 1, 2022 to September 30, 2022) Submitted to Kanto Finance Bureau Chief November
11, 2022(4) Extraordinary report
Filed with the Director-General of the Kanto Local Finance Bureau on March 29, 2022
Extraordinary Report pursuant to Article 19, Paragraph 2, Item 9-2 (results of voting in the General Meeting of Shareholders)of the Cabinet Office Ordinance on Disclosure of Corporate Affairs, etc.
(5) Amended issue registration statement
Filed with the Director-General of the Kanto Local Finance Bureau on March 29, 2022

140

This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In theevent of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Part Ⅱ. Information about company which provides guarantee to reportable segment
Not applicable141