Creat future of beverage businessAnnual Review

2008

Coca-Cola West Company, Limited
Canal City Business Center Building
1-2-25, Sumiyoshi, Hakata-ku, Fukuoka 812-8649, Japan
Investor Relations Tel: +81-92-283-5724
http://www.ccwest.co.jp/english/

Cert no.SGS-COC-2935(*Will be moved to the address below on July 1, 2009)

7-9-66, Hakozaki, Higashi-ku, Fukuoka 812-8650, Japan
Investor Relations Tel: +81-92-641-8590

Coca-Cola West Annual Review 2008 is printed with soy ink on paper
originating from FSC-certified and managed forests, and was printed
using a waterless method that does not generate toxic liquid waste
during printing.

Printed in Japan

Coca-Cola West Company, Limited

表2

P1

Coca-Cola System
JAPAN’S COCA-COLA SYSTEM CONSISTS OF COCA-COLA (JAPAN) CO., LTD., 12 BOTTLINGCOMPANIES (BOTTLERS) THAT MANUFACTURE AND SELL COCA-COLA PRODUCTS IN THE
DIFFERENT REGIONS OF THE COUNTRY AND OTHER COMPANIES.

Coca-Cola West Co., Ltd. started
on January 1, 2009
Coca-Cola West Holdings Co., Ltd., Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola BottlingCo., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd. merged as of January 1, 2009 aiming atfurther promotion of efforts to one of the World’s Leading Bottlers, and Coca-Cola West Co.,
Ltd. (CCW) was started.
Contents(As of January 1, 2009)

Company Name
COCA-COLA WEST COMPANY, LIMITED

4 Special Feature 1:
To the leading bottler in the world- Toward achieving the effect of management integration

8 Special Feature 2:
Expansion and Efficiency Improvement Efforts- Key issues for 2008

nationwide by distribution car, which is called “route truck.”
Additionally, in consideration of consumer convenience,
approx. 980,000 vending machines have been installed in a
broad range of useful locations. These manufacturing,
distribution and sales activities are closely linked to thecommunity - and growing together with community is
Coca-Cola’s own system.

About What Coca-Cola West Co., Ltd.
Corporate Data

C-2 Corporate Data
Coca-Cola System
To Our Shareholders and Other Investors

Coca-Cola (Japan) Co., Ltd. manufactures Coca-Cola andother concentrates and supplies these to Bottlers (12 bottlingcompanies) all over Japan, and Bottlers produce various
types of products at each plant under strict quality controls.
Finished products are distributed nationwide to 515 sales
branches, which function as sales bases for individual
Bottlers, and then directly distributed to 1,150,000 stores

Offices:HEAD OFFICE

Coca-Cola West Company, Limited is the largest bottler in Japan, with an operating area in
Western Japan, and also a leading bottler in world.
As the largest bottler in Japan, and a top-ranking one from a global perspective, Coca-Cola West Co., Ltd. isacting as a Strategic Leading Partner with The Coca-Cola Company and Coca-Cola (Japan) Co., Ltd. In thiscapacity, it is playing a leading role in the transformation of the Coca-Cola System in Japan by engaging in
product development, test marketing and other collaborative activities that go beyond the traditional scopeof a bottler.

7-9-66 Hakozaki, Higashi-ku, Fukuoka
812-8650, Japan

Coca-Cola (Japan) Co., Ltd.
(Tokyo)Coca-Cola West Co., Ltd.
(Fukuoka)FUKUOKA OFFICE
Canal City Business Center Building
1-2-25 Sumiyoshi, Hakata-ku, Fukuoka

14 Number of vending machines installed
Sales volume breakdown by brand/channel/package

The Coca-Cola Company(Atlanta)

812-8649, JapanOSAKA OFFICE
Nissei Dowa Sompo Phonex Tower

Minami Kyushu Coca-Cola Bottling Co., Ltd. (Note 1)

Strategic partner

4-15-10 Nishitenma, Kita-ku, Osaka

16 Toward being a Reliable Corporation
Quality Assurance
What We Can Do to Save an Irreplaceably Valuable Resource
What We Can Do for Local Communities through Our Business Activities
Contributions to Local Communities
Environmental Activities

530-0047, JapanDATE OF ESTABLISHMENT:
December 20, 1960

Coca-Cola West Co., Ltd.
Fukuoka/Osaka/Shiga/Nara/Wakayama/Kyoto/Hyogo/
Okayama/Tottori/Hiroshima/Shimane/Yamaguchi/
Saga/Nagasaki

PAID-IN CAPITAL:EMPLOYEES:
8,197 (Consolidated)
FISCAL YEAR-END:

Coca-Cola (Japan) Co., Ltd. (CCJC) (Note 2)
Engaged in marketing, planning, and manufacturing
of Coca-Cola and other concentrates in Japan.
(Note 2) Coca-Cola (Japan) Co., Ltd. (100% invested by The
Coca-Cola Company)

COCA-COLA SYSTEM

ROLES¥15,231 million

22 Overview of Fiscal 2008 Operating Results
24 Consolidated Balance Sheets
26 Consolidated Statements of Income
27 Consolidated Statements of Changes in Shareholders’ Equity
28 Consolidated Statements of Cash Flows
29 Trends in Principal Consolidated Financial Data

(Note 1) Minami Kyushu Coca-Cola Bottling Co., Ltd. is an affiliate of Coca-Cola West Co., Ltd. under the equity
method.

Bottlers (12 bottling companies)
There are 12 bottling companies for each sales territory, and eachmanufactures and distributes products

December

Risk information
Corporate GovernanceManagement
Stock Information
Information on Preferential Treatment System for Shareholders
History
Main Products

Planning

PRIMARY BUSINESS ACTIVITIES:

Research& Development

Concentrate
Manufacturing

Product
Manufacturing

Distribution

Sales

Collection

Recycling

Manufacturing and sales of Coca-Cola
and other soft drinks

FORWARD-LOOKING STATEMENTS
This annual review contains statements regarding the Company’s future plans, projected performance and outlook. These forward-looking
statements are not historical facts, but represent management’s opinions and beliefs based on information available at the time of writing.
Readers are cautioned that any number of risks and factors beyond the Company’s control could cause actual results to differ materiallyfrom those projected by management. These include, but are not limited to, economic trends, intensifying competition in the soft drink
industry, market supply and demand, and changes in taxation and other applicable laws and regulations.

Coca-Cola, GEORGIA, Aquarius, Sokenbicha and their Japanese-character counterparts are all trademarks of The Coca-Cola Company.

Coca-Cola Tokyo Research& Development Co., Ltd (CCTR&D)
R&D for products and packaging

Coca-Cola Customer Marketing
Company, Limited (CCCMC)
Responsible for business negotiations with major
retailers, such as nationwide convenience stores andsupermarket chains, as well as developing proposals
for sales promotions and storefront activities.

FV Corporation (FVC)
Sells vending machines to customers over a widearea.

Annual Review 2008

30
31
33
34
35
36
37

01

表2

P1

Coca-Cola System
JAPAN’S COCA-COLA SYSTEM CONSISTS OF COCA-COLA (JAPAN) CO., LTD., 12 BOTTLINGCOMPANIES (BOTTLERS) THAT MANUFACTURE AND SELL COCA-COLA PRODUCTS IN THE
DIFFERENT REGIONS OF THE COUNTRY AND OTHER COMPANIES.

Coca-Cola West Co., Ltd. started
on January 1, 2009
Coca-Cola West Holdings Co., Ltd., Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola BottlingCo., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd. merged as of January 1, 2009 aiming atfurther promotion of efforts to one of the World’s Leading Bottlers, and Coca-Cola West Co.,
Ltd. (CCW) was started.
Contents(As of January 1, 2009)

Company Name
COCA-COLA WEST COMPANY, LIMITED

4 Special Feature 1:
To the leading bottler in the world- Toward achieving the effect of management integration

8 Special Feature 2:
Expansion and Efficiency Improvement Efforts- Key issues for 2008

nationwide by distribution car, which is called “route truck.”
Additionally, in consideration of consumer convenience,
approx. 980,000 vending machines have been installed in a
broad range of useful locations. These manufacturing,
distribution and sales activities are closely linked to thecommunity - and growing together with community is
Coca-Cola’s own system.

About What Coca-Cola West Co., Ltd.
Corporate Data

C-2 Corporate Data
Coca-Cola System
To Our Shareholders and Other Investors

Coca-Cola (Japan) Co., Ltd. manufactures Coca-Cola andother concentrates and supplies these to Bottlers (12 bottlingcompanies) all over Japan, and Bottlers produce various
types of products at each plant under strict quality controls.
Finished products are distributed nationwide to 515 sales
branches, which function as sales bases for individual
Bottlers, and then directly distributed to 1,150,000 stores

Offices:HEAD OFFICE

Coca-Cola West Company, Limited is the largest bottler in Japan, with an operating area in
Western Japan, and also a leading bottler in world.
As the largest bottler in Japan, and a top-ranking one from a global perspective, Coca-Cola West Co., Ltd. isacting as a Strategic Leading Partner with The Coca-Cola Company and Coca-Cola (Japan) Co., Ltd. In thiscapacity, it is playing a leading role in the transformation of the Coca-Cola System in Japan by engaging in
product development, test marketing and other collaborative activities that go beyond the traditional scopeof a bottler.

7-9-66 Hakozaki, Higashi-ku, Fukuoka
812-8650, Japan

Coca-Cola (Japan) Co., Ltd.
(Tokyo)Coca-Cola West Co., Ltd.
(Fukuoka)FUKUOKA OFFICE
Canal City Business Center Building
1-2-25 Sumiyoshi, Hakata-ku, Fukuoka

14 Number of vending machines installed
Sales volume breakdown by brand/channel/package

The Coca-Cola Company(Atlanta)

812-8649, JapanOSAKA OFFICE
Nissei Dowa Sompo Phonex Tower

Minami Kyushu Coca-Cola Bottling Co., Ltd. (Note 1)

Strategic partner

4-15-10 Nishitenma, Kita-ku, Osaka

16 Toward being a Reliable Corporation
Quality Assurance
What We Can Do to Save an Irreplaceably Valuable Resource
What We Can Do for Local Communities through Our Business Activities
Contributions to Local Communities
Environmental Activities

530-0047, JapanDATE OF ESTABLISHMENT:
December 20, 1960

Coca-Cola West Co., Ltd.
Fukuoka/Osaka/Shiga/Nara/Wakayama/Kyoto/Hyogo/
Okayama/Tottori/Hiroshima/Shimane/Yamaguchi/
Saga/Nagasaki

PAID-IN CAPITAL:EMPLOYEES:
8,197 (Consolidated)
FISCAL YEAR-END:

Coca-Cola (Japan) Co., Ltd. (CCJC) (Note 2)
Engaged in marketing, planning, and manufacturing
of Coca-Cola and other concentrates in Japan.
(Note 2) Coca-Cola (Japan) Co., Ltd. (100% invested by The
Coca-Cola Company)

COCA-COLA SYSTEM

ROLES¥15,231 million

22 Overview of Fiscal 2008 Operating Results
24 Consolidated Balance Sheets
26 Consolidated Statements of Income
27 Consolidated Statements of Changes in Shareholders’ Equity
28 Consolidated Statements of Cash Flows
29 Trends in Principal Consolidated Financial Data

(Note 1) Minami Kyushu Coca-Cola Bottling Co., Ltd. is an affiliate of Coca-Cola West Co., Ltd. under the equity
method.

Bottlers (12 bottling companies)
There are 12 bottling companies for each sales territory, and eachmanufactures and distributes products

December

Risk information
Corporate GovernanceManagement
Stock Information
Information on Preferential Treatment System for Shareholders
History
Main Products

Planning

PRIMARY BUSINESS ACTIVITIES:

Research& Development

Concentrate
Manufacturing

Product
Manufacturing

Distribution

Sales

Collection

Recycling

Manufacturing and sales of Coca-Cola
and other soft drinks

FORWARD-LOOKING STATEMENTS
This annual review contains statements regarding the Company’s future plans, projected performance and outlook. These forward-looking
statements are not historical facts, but represent management’s opinions and beliefs based on information available at the time of writing.
Readers are cautioned that any number of risks and factors beyond the Company’s control could cause actual results to differ materiallyfrom those projected by management. These include, but are not limited to, economic trends, intensifying competition in the soft drink
industry, market supply and demand, and changes in taxation and other applicable laws and regulations.

Coca-Cola, GEORGIA, Aquarius, Sokenbicha and their Japanese-character counterparts are all trademarks of The Coca-Cola Company.

Coca-Cola Tokyo Research& Development Co., Ltd (CCTR&D)
R&D for products and packaging

Coca-Cola Customer Marketing
Company, Limited (CCCMC)
Responsible for business negotiations with major
retailers, such as nationwide convenience stores andsupermarket chains, as well as developing proposals
for sales promotions and storefront activities.

FV Corporation (FVC)
Sells vending machines to customers over a widearea.

Annual Review 2008

30
31
33
34
35
36
37

01

To Our Shareholders and Other Investors
We appreciate your continuing support
for Coca-Cola West Co., Ltd.
I am pleased to report our operating results for the fiscal
year ended December 31, 2008, and provide an overview
of our Group policies and business strategies.

2007-2009 Medium-term Management Plan

Greenhouse Effect Gas Reduction Project for the overall Group
as a global warming measure, and promote the activities in aGroup-wide effort.
In addition to the activities as mentioned in the above, in order
to execute a flexible capital structure policy according tochanges in the business environment, and, in the interest ofraising capital efficiency, we repurchased 6,165thousand
Company shares for ¥14,401million in this fiscal term. We arealso working toward reduction of assets by repaying loaned
moneys, etc., and, as a result total, assets as of end of fiscal
2008 decreased by ¥37,976 million compared to the previous
term-end.
Future Outlook
As we move forward, we expect the business environment tobecome increasingly tough, as share prices drop, the price ofraw materials and crude oil fluctuate violently, and consumer
sentiment decline.
Given this situation, we will address the various innovations
towards achieving the goals of our medium-term management
plan “,” which runs for the 2007–2009 period. This
consumer-centric plan is designed to provide value that always
exceeds that of the competition, based on the principle that allvalue starts with the consumer. The aim is to maintain growthover the next several decades.
Specifically, we will transform our old sales strategy, which was

COCA-COLA WEST GROUP CORPORATE MISSION

To the leading bottler in the worldWing:
We “will flap” forcibly with 10 years,
20 years, and 30 years●Growth exceeding competition

West + ing:
“CCWG” always develops and continues
evolving
We + ing:“Each of us” always develops andcontinues evolving
Win:“Win” for fighting with competitors on
consumer view

Create future of beverage businessoverwhelmingly●Establishment of a steadfast profit base

based on areas, to sales strategy based on channels, andextend marketing activities based on research and analysis ofconsumer purchasing activities, and meanwhile change fromthe old nationwide supply-demand management system to aWestern Japan area supply-demand management systemcentered on CCW, which will allow us to respond to changes in
the market flexibly, so that we can build a supply chain withhigh-level competitiveness both in quality and cost. Moreover,
we will move forward efficiency improvements of business andquality, with thoroughgoing reductions and slimming of indirect
costs.
Furthermore, we will push ahead with our CSR (Corporate Social
Responsibility) program (centered on the environment) as we makeall efforts possible to earn the trust of all our stakeholders.
Dividends
In our Corporate Mission, we emphasize “respond toshareholders’ expectations and trust by sustainable growth.”
Our basic stance is to continue providing stable dividends to ourshareholders and carrying out active return of profits.
As our dividend policy, we place the utmost priority on stabledividends, and carrying this out twice yearly–as interim dividend
and year-end dividend–after taking into account comprehensively
corporate performance and internal reserves.
Taking into consideration the results from throughout the year
and the future management environment, the year-end dividend
applicable to 2008 will be ¥22 per share. As a result, thefull-year dividend, which includes the interim dividend, comesto ¥43 per share, the same amount as the previous year.
I look forward to your continued support and understanding.
March 2009
Annual Review 2008

Annual Review 2008

Initiatives in fiscal 2008
First of all, in order to bring about the effect of management
integration with Kinki Coca-Cola Bottling Co., Ltd. in July 2006,
we integrated functionally similar companies that had formerly
been separated by area. As of January 1, 2008, the twocompanies that had been in charge of manufacturing in ourGroup were integrated, and Coca-Cola West Products Co., Ltd.
was started as a new company. Then, as of April 1, 2008, thecompanies and divisions that were in charge of maintenanceservices of the vending machines in our Group were integrated
and Coca-Cola West Equipment Services Co., Ltd. was started.
Additionally, in order to establish an even more solidmanagement base and promote enhanced operations and sales
functions and to reduce indirect costs, Coca-Cola West
Holdings, Co., Ltd., Coca-Cola West Japan Co., Ltd., Kinki
Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co.,
Ltd. merged and the new company Coca-Cola West Co., Ltd.,was started as of January 1, 2009.
In addition, accompanying the transfer to Coca-Cola Bottlers ofthe manufacturing and logistics business that used to be
performed by Coca-Cola National Beverages Co., Ltd., which
was established through joint investment by nationwide
Coca-Cola Bottlers and Coca-Cola (Japan) Co., Ltd., in theWestern Japan area, the Company will be a center of action for
the achievement of handling flexibility in changes of supply anddemand, and reduction of manufacturing and logistics costs
through development of a new supply-demand system.
On the marketing side, we exploited promotional campaigns
making use of our advantages as Beijing Olympic Games
worldwide partner to bolster our core brands of Coca-Cola,
Georgia, Sokenbicha, and Aquarius.
In our CSR promotional activities, from April 2008 we started
operations at our old vending machines recycling facility, which
we had been preparing toward the creation of arecycling-oriented society. Moreover, we formulated theWe
Change to the “Consumer View”

The strong confidential relation of
employee and company• offer products and services welcomed by consumers• respect each employee’s motivation and personal life
• respond to shareholders’ expectations and trust by
sustainable growth• nurture the relationships with society and environment

TO OUR SHAREHOLDERS AND OTHER INVESTORSTO OUR SHAREHOLDERS AND OTHER INVESTORS

02

Business Overview and Operating Results
In fiscal 2008, the year ended December 31, 2008, theJapanese economy fell into a serious recession–as steep rises
in crude oil and grain prices strained corporate earnings andincome in the first half, and then in the second half, with thedrastic decline of exports, restraint of capital investment andstagnation of personal consumption–under assault from theworld-wide scale financial and economic crisis stemming fromthe financial crisis in the US.
In the Japanese soft drink industry, sales competition among
soft drink producers intensified during the past year as personal
consumption was depressed, and in this difficult businessenvironment, was even more severely affected by the rapidly
rising prices of crude oil and other raw materials.
Against this challenging market backdrop, we took a variety of
initiatives as a Group towards achieving the goals of our
medium-term management plan “.” This plan identifies
consumers as the basis for all value, and serves as a blueprint
for striving to always offer more value than our competitors sothat we can achieve growth over the next several decades.
As a result of these efforts, CCW reported consolidated net
revenues of ¥395,556 million, down 3.4% from the previous
year. Incomes were affected by unfavorable weather anddepressed consumption due to aggravation of the economic
circumstances, and operating income fell 34.5% year on year to¥10,521 million, while recurring income decreased 36.8% to¥11,048 million. Net income decreased by 98.6% year on yearto ¥129 million, as there is the cost of making efforts toward
reorganization of the Group in order to bring about the effect ofmanagement integration, and also losses on devaluation of
investment securities booked due to the decline of market
value of the domestic shares held by CCW.

Norio Sueyoshi
Representative Director & CEO

03

To Our Shareholders and Other Investors
We appreciate your continuing support
for Coca-Cola West Co., Ltd.
I am pleased to report our operating results for the fiscal
year ended December 31, 2008, and provide an overview
of our Group policies and business strategies.

2007-2009 Medium-term Management Plan

Greenhouse Effect Gas Reduction Project for the overall Group
as a global warming measure, and promote the activities in aGroup-wide effort.
In addition to the activities as mentioned in the above, in order
to execute a flexible capital structure policy according tochanges in the business environment, and, in the interest ofraising capital efficiency, we repurchased 6,165thousand
Company shares for ¥14,401million in this fiscal term. We arealso working toward reduction of assets by repaying loaned
moneys, etc., and, as a result total, assets as of end of fiscal
2008 decreased by ¥37,976 million compared to the previous
term-end.
Future Outlook
As we move forward, we expect the business environment tobecome increasingly tough, as share prices drop, the price ofraw materials and crude oil fluctuate violently, and consumer
sentiment decline.
Given this situation, we will address the various innovations
towards achieving the goals of our medium-term management
plan “,” which runs for the 2007–2009 period. This
consumer-centric plan is designed to provide value that always
exceeds that of the competition, based on the principle that allvalue starts with the consumer. The aim is to maintain growthover the next several decades.
Specifically, we will transform our old sales strategy, which was

COCA-COLA WEST GROUP CORPORATE MISSION

To the leading bottler in the worldWing:
We “will flap” forcibly with 10 years,
20 years, and 30 years●Growth exceeding competition

West + ing:
“CCWG” always develops and continues
evolving
We + ing:“Each of us” always develops andcontinues evolving
Win:“Win” for fighting with competitors on
consumer view

Create future of beverage businessoverwhelmingly●Establishment of a steadfast profit base

based on areas, to sales strategy based on channels, andextend marketing activities based on research and analysis ofconsumer purchasing activities, and meanwhile change fromthe old nationwide supply-demand management system to aWestern Japan area supply-demand management systemcentered on CCW, which will allow us to respond to changes in
the market flexibly, so that we can build a supply chain withhigh-level competitiveness both in quality and cost. Moreover,
we will move forward efficiency improvements of business andquality, with thoroughgoing reductions and slimming of indirect
costs.
Furthermore, we will push ahead with our CSR (Corporate Social
Responsibility) program (centered on the environment) as we makeall efforts possible to earn the trust of all our stakeholders.
Dividends
In our Corporate Mission, we emphasize “respond toshareholders’ expectations and trust by sustainable growth.”
Our basic stance is to continue providing stable dividends to ourshareholders and carrying out active return of profits.
As our dividend policy, we place the utmost priority on stabledividends, and carrying this out twice yearly–as interim dividend
and year-end dividend–after taking into account comprehensively
corporate performance and internal reserves.
Taking into consideration the results from throughout the year
and the future management environment, the year-end dividend
applicable to 2008 will be ¥22 per share. As a result, thefull-year dividend, which includes the interim dividend, comesto ¥43 per share, the same amount as the previous year.
I look forward to your continued support and understanding.
March 2009
Annual Review 2008

Annual Review 2008

Initiatives in fiscal 2008
First of all, in order to bring about the effect of management
integration with Kinki Coca-Cola Bottling Co., Ltd. in July 2006,
we integrated functionally similar companies that had formerly
been separated by area. As of January 1, 2008, the twocompanies that had been in charge of manufacturing in ourGroup were integrated, and Coca-Cola West Products Co., Ltd.
was started as a new company. Then, as of April 1, 2008, thecompanies and divisions that were in charge of maintenanceservices of the vending machines in our Group were integrated
and Coca-Cola West Equipment Services Co., Ltd. was started.
Additionally, in order to establish an even more solidmanagement base and promote enhanced operations and sales
functions and to reduce indirect costs, Coca-Cola West
Holdings, Co., Ltd., Coca-Cola West Japan Co., Ltd., Kinki
Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co.,
Ltd. merged and the new company Coca-Cola West Co., Ltd.,was started as of January 1, 2009.
In addition, accompanying the transfer to Coca-Cola Bottlers ofthe manufacturing and logistics business that used to be
performed by Coca-Cola National Beverages Co., Ltd., which
was established through joint investment by nationwide
Coca-Cola Bottlers and Coca-Cola (Japan) Co., Ltd., in theWestern Japan area, the Company will be a center of action for
the achievement of handling flexibility in changes of supply anddemand, and reduction of manufacturing and logistics costs
through development of a new supply-demand system.
On the marketing side, we exploited promotional campaigns
making use of our advantages as Beijing Olympic Games
worldwide partner to bolster our core brands of Coca-Cola,
Georgia, Sokenbicha, and Aquarius.
In our CSR promotional activities, from April 2008 we started
operations at our old vending machines recycling facility, which
we had been preparing toward the creation of arecycling-oriented society. Moreover, we formulated theWe
Change to the “Consumer View”

The strong confidential relation of
employee and company• offer products and services welcomed by consumers• respect each employee’s motivation and personal life
• respond to shareholders’ expectations and trust by
sustainable growth• nurture the relationships with society and environment

TO OUR SHAREHOLDERS AND OTHER INVESTORSTO OUR SHAREHOLDERS AND OTHER INVESTORS

02

Business Overview and Operating Results
In fiscal 2008, the year ended December 31, 2008, theJapanese economy fell into a serious recession–as steep rises
in crude oil and grain prices strained corporate earnings andincome in the first half, and then in the second half, with thedrastic decline of exports, restraint of capital investment andstagnation of personal consumption–under assault from theworld-wide scale financial and economic crisis stemming fromthe financial crisis in the US.
In the Japanese soft drink industry, sales competition among
soft drink producers intensified during the past year as personal
consumption was depressed, and in this difficult businessenvironment, was even more severely affected by the rapidly
rising prices of crude oil and other raw materials.
Against this challenging market backdrop, we took a variety of
initiatives as a Group towards achieving the goals of our
medium-term management plan “.” This plan identifies
consumers as the basis for all value, and serves as a blueprint
for striving to always offer more value than our competitors sothat we can achieve growth over the next several decades.
As a result of these efforts, CCW reported consolidated net
revenues of ¥395,556 million, down 3.4% from the previous
year. Incomes were affected by unfavorable weather anddepressed consumption due to aggravation of the economic
circumstances, and operating income fell 34.5% year on year to¥10,521 million, while recurring income decreased 36.8% to¥11,048 million. Net income decreased by 98.6% year on yearto ¥129 million, as there is the cost of making efforts toward
reorganization of the Group in order to bring about the effect ofmanagement integration, and also losses on devaluation of
investment securities booked due to the decline of market
value of the domestic shares held by CCW.

Norio Sueyoshi
Representative Director & CEO

03

TO THE LEADING BOTTLER
IN THE WORLDSpecial Feature

Toward achieving the effect of management integration
IN THE MIDST OF A SEVERE MANAGEMENT ENVIRONMENT, WE ARE WORKING AT VARIOUS
ACTIVITIES TO PROVIDE VALUE THAT WILL CONSTANTLY OUTSTRIP THAT OF THE COMPETITION, AND
TO MAINTAIN GROWTH OVER THE NEXT SEVERAL DECADES BASED ON THE PRINCIPLE THAT ALL
VALUE STARTS WITH THE CUSTOMER.

1
Reorganization of the Group
Reform of Sales
Reform of Supply-Demand Management System

REORGANIZATION OF THE GROUP
Integration of Manufacturing Companies (January 1, 2008)
Coca-Cola West Japan Products Co., Ltd.

Coca-Cola West Products Co., Ltd.
Kinki Coca-Cola Products Co., Ltd.

Integration of Vending Machine Maintenance Services(April 1, 2008)
Coca-Cola West Japan Customer Service Co., Ltd.
Kansai Beverage Service Co., Ltd. Rex Techno business unit

Coca-Cola West Equipment Services Co., Ltd.

Mikasa Service Co., Ltd.

Integration of Holdings and sales companies by area (January 1, 2009)

Coca-Cola West Holdings Co., Ltd.
Coca-Cola West Japan Co., Ltd.

Coca-Cola West Co., Ltd.
Kinki Coca-Cola Bottling Co., Ltd.
Mikasa Coca-Cola Bottling Co., Ltd.

Purposes of Reorganizationof the Group❶ Further enhancement of management base
❷ Enhancement of operational and sales functions❸ Reduction of indirect costs

Annual Review 2008

Annual Review 2008

CONTINUED INCREASE OF CORPORATE VALUE

SPECIAL FEATURE 1 To the leading bottler in the world

SPECIAL FEATURE 1 To the leading bottler in the world04*In order to focus business resources on the soft drink business even further, we sold all the shares of TAKAMASAMUNE Co., Ltd., which is engaged in production andsales of alcoholic beverages, and C&C Co., Ltd,. and Ange de Virge Co., Ltd., which are engaged in restaurant and retail businesses, and closed the business of NichibeiCo., Ltd., which was engaged in the manufacture of processed foods.

05

TO THE LEADING BOTTLER
IN THE WORLDSpecial Feature

Toward achieving the effect of management integration
IN THE MIDST OF A SEVERE MANAGEMENT ENVIRONMENT, WE ARE WORKING AT VARIOUS
ACTIVITIES TO PROVIDE VALUE THAT WILL CONSTANTLY OUTSTRIP THAT OF THE COMPETITION, AND
TO MAINTAIN GROWTH OVER THE NEXT SEVERAL DECADES BASED ON THE PRINCIPLE THAT ALL
VALUE STARTS WITH THE CUSTOMER.

1
Reorganization of the Group
Reform of Sales
Reform of Supply-Demand Management System

REORGANIZATION OF THE GROUP
Integration of Manufacturing Companies (January 1, 2008)
Coca-Cola West Japan Products Co., Ltd.

Coca-Cola West Products Co., Ltd.
Kinki Coca-Cola Products Co., Ltd.

Integration of Vending Machine Maintenance Services(April 1, 2008)
Coca-Cola West Japan Customer Service Co., Ltd.
Kansai Beverage Service Co., Ltd. Rex Techno business unit

Coca-Cola West Equipment Services Co., Ltd.

Mikasa Service Co., Ltd.

Integration of Holdings and sales companies by area (January 1, 2009)

Coca-Cola West Holdings Co., Ltd.
Coca-Cola West Japan Co., Ltd.

Coca-Cola West Co., Ltd.
Kinki Coca-Cola Bottling Co., Ltd.
Mikasa Coca-Cola Bottling Co., Ltd.

Purposes of Reorganizationof the Group❶ Further enhancement of management base
❷ Enhancement of operational and sales functions❸ Reduction of indirect costs

Annual Review 2008

Annual Review 2008

CONTINUED INCREASE OF CORPORATE VALUE

SPECIAL FEATURE 1 To the leading bottler in the world

SPECIAL FEATURE 1 To the leading bottler in the world04*In order to focus business resources on the soft drink business even further, we sold all the shares of TAKAMASAMUNE Co., Ltd., which is engaged in production andsales of alcoholic beverages, and C&C Co., Ltd,. and Ange de Virge Co., Ltd., which are engaged in restaurant and retail businesses, and closed the business of NichibeiCo., Ltd., which was engaged in the manufacture of processed foods.

05

TOWARD ACHIEVING THE EFFECT OF MANAGEMENT INTEGRATION● REFORM OF SALES● REFORM OF SUPPLY-DEMAND MANAGEMENT SYSTEM

Introduction of trade marketing functions*

CCW reexamined the unification of its supply-demand management system in the nationwide Coca-Cola System and made aggressive
efforts to build a new supply-demand management system for Western Japan, centering on the CCW Group, and started a system torealize provision of swift and high-quality services rooted in the local area from January 2009.

Trade Marketing Headquarters and Sales Headquarters for each channel have been set up in order to specialize in formulation ofstrategies and market execution, and to create a management system that emphasizes operational quality.

Reform of sales from “Area-based” to “Channel-based”
Based on strategies by channel formulated by Trade Marketing Headquarters, each channel Sales Headquarters makes execution-levelstrategies and executes without fail.

Realization of streamlined system from procurement, manufacturing, logistics, sales and services
in line with CCW intentions*Trade marketing function means brand marketing expansion at sales sites, that is, to build sales site strategy to lead improvements in the number of product purchases by consumers and ofpurchase value, making use of knowledge linked to consumers and customers.

Sales based on Area

Sales based on Channels(2008 and before)(2009 and thereafter)

Product development

OLD BUSINESS MODEL

price negotiations,contracting

MARKETING BASED ON PURCHASER INFORMATION(complicated communications, lack of consistency or integrity of strategy)

Consumersin Mikasa area

execution

execution

execution

Coca-Cola WestJapan Co., Ltd.
(CCWJ)

Kinki Coca-Cola
Bottling Co., Ltd.

planning

planning

ReformVending
machines

Food and liquor
shops,
restaurant, etc.

execution

execution

execution

Chain stores

Vending
machines

General retail/Food service

Individual Channel Sales Headquarters(formulation and execution of execution-level strategies)

Action plan
(image of success)

Planning

Feedback ofcustomer information

Coca-Cola (Japan)
Co., Ltd.

Trade Marketing Headquarters

Coca-Cola West Holdings Co., Ltd.

(collaboration with new salesorganization of CCW)

Formulation of brand strategy
based on consumer

Services

2003-2008
Coca-Cola West Holdings Co., Ltd.

(joint investment)New
procurement
organization

Marketing & Sales

branches

after 2009 Coca-Cola West Co., Ltd.

(jointinvestment)

New supply-demand management system in Western Japan region
Based on supply-demand management at the managerial judgment of individual Bottler company, a supply-demand management systemcentering on CCW will be built in the Western Japan region.
●

Centering on CCW, which has many manufacturing lines, optimal
supply network will be built in Western Japan (production andlogistics plan)●

For logistics, efficiency improvements of logistics will be promoted
through collective management by CCW subsidiary, Coca-Cola
West Logistics Co., Ltd.

(formulation of strategies by channel)

Coca-Cola West Co., Ltd.

plants anddistribution centersorder

Coca-Cola National Beverages Co., Ltd.

(collaboration with CCW)

Coca-Cola (Japan)
Co., Ltd.

Logistics

Manufacturing

Coca-Cola West Co., Ltd.

Feedback of market information

Shikoku Coca-Cola Bottling Co., Ltd.

Coca-Cola (Japan) Co., Ltd.
Okinawa Coca-Cola Bottling Co., Ltd.

Optimal Supply-Demand Management System
in Western Japan overall*Minami Kyushu Coca-Cola Bottling Co., Ltd. is an affiliate of Coca-Cola West Co., Ltd under the equity method.

Annual Review 2008

Annual Review 2008

Minami Kyushu Coca-Cola Bottling Co., Ltd.*

Coca-Cola (Japan) Co., Ltd.

SPECIAL FEATURE 1 To the leading bottler in the world

SPECIAL FEATURE 1 To the leading bottler in the world06

planning

Mikasa Coca-Cola
Bottling Co., Ltd.

Supermarket/convenience
stores, etc.

Marketing based on purchaser information

Consumersin Kinki area

Marketing based on purchaser information

CONSUMERS
Consumersin CCWJ Area

Procurement

07

TOWARD ACHIEVING THE EFFECT OF MANAGEMENT INTEGRATION● REFORM OF SALES● REFORM OF SUPPLY-DEMAND MANAGEMENT SYSTEM

Introduction of trade marketing functions*

CCW reexamined the unification of its supply-demand management system in the nationwide Coca-Cola System and made aggressive
efforts to build a new supply-demand management system for Western Japan, centering on the CCW Group, and started a system torealize provision of swift and high-quality services rooted in the local area from January 2009.

Trade Marketing Headquarters and Sales Headquarters for each channel have been set up in order to specialize in formulation ofstrategies and market execution, and to create a management system that emphasizes operational quality.

Reform of sales from “Area-based” to “Channel-based”
Based on strategies by channel formulated by Trade Marketing Headquarters, each channel Sales Headquarters makes execution-levelstrategies and executes without fail.

Realization of streamlined system from procurement, manufacturing, logistics, sales and services
in line with CCW intentions*Trade marketing function means brand marketing expansion at sales sites, that is, to build sales site strategy to lead improvements in the number of product purchases by consumers and ofpurchase value, making use of knowledge linked to consumers and customers.

Sales based on Area

Sales based on Channels(2008 and before)(2009 and thereafter)

Product development

OLD BUSINESS MODEL

price negotiations,contracting

MARKETING BASED ON PURCHASER INFORMATION(complicated communications, lack of consistency or integrity of strategy)

Consumersin Mikasa area

execution

execution

execution

Coca-Cola WestJapan Co., Ltd.
(CCWJ)

Kinki Coca-Cola
Bottling Co., Ltd.

planning

planning

ReformVending
machines

Food and liquor
shops,
restaurant, etc.

execution

execution

execution

Chain stores

Vending
machines

General retail/Food service

Individual Channel Sales Headquarters(formulation and execution of execution-level strategies)

Action plan
(image of success)

Planning

Feedback ofcustomer information

Coca-Cola (Japan)
Co., Ltd.

Trade Marketing Headquarters

Coca-Cola West Holdings Co., Ltd.

(collaboration with new salesorganization of CCW)

Formulation of brand strategy
based on consumer

Services

2003-2008
Coca-Cola West Holdings Co., Ltd.

(joint investment)New
procurement
organization

Marketing & Sales

branches

after 2009 Coca-Cola West Co., Ltd.

(jointinvestment)

New supply-demand management system in Western Japan region
Based on supply-demand management at the managerial judgment of individual Bottler company, a supply-demand management systemcentering on CCW will be built in the Western Japan region.
●

Centering on CCW, which has many manufacturing lines, optimal
supply network will be built in Western Japan (production andlogistics plan)●

For logistics, efficiency improvements of logistics will be promoted
through collective management by CCW subsidiary, Coca-Cola
West Logistics Co., Ltd.

(formulation of strategies by channel)

Coca-Cola West Co., Ltd.

plants anddistribution centersorder

Coca-Cola National Beverages Co., Ltd.

(collaboration with CCW)

Coca-Cola (Japan)
Co., Ltd.

Logistics

Manufacturing

Coca-Cola West Co., Ltd.

Feedback of market information

Shikoku Coca-Cola Bottling Co., Ltd.

Coca-Cola (Japan) Co., Ltd.
Okinawa Coca-Cola Bottling Co., Ltd.

Optimal Supply-Demand Management System
in Western Japan overall*Minami Kyushu Coca-Cola Bottling Co., Ltd. is an affiliate of Coca-Cola West Co., Ltd under the equity method.

Annual Review 2008

Annual Review 2008

Minami Kyushu Coca-Cola Bottling Co., Ltd.*

Coca-Cola (Japan) Co., Ltd.

SPECIAL FEATURE 1 To the leading bottler in the world

SPECIAL FEATURE 1 To the leading bottler in the world06

planning

Mikasa Coca-Cola
Bottling Co., Ltd.

Supermarket/convenience
stores, etc.

Marketing based on purchaser information

Consumersin Kinki area

Marketing based on purchaser information

CONSUMERS
Consumersin CCWJ Area

Procurement

07

EXPANSION AND
EFFICIENCY IMPROVEMENT EFFORTS
Special Feature

KEY ISSUES
FOR 2008

2
1 Reinforcement of coffee drinks

Sales Overview
THE SOFT DRINK MARKET IN 2008 WAS AFFECTED BY UNSEASONABLE WEATHER, PRODUCT SUPPLYSHORTAGES AND DECLINING EXPENDITURES DUE TO WORSENING OF ECONOMIC CIRCUMSTANCES,TERMED THE WORST IN 100 YEARS, AND SALES VOLUME WAS DOWN BY 1% YEAR-ON-YEAR. AT
CCW, SALES BY VENDING MACHINE CHANNEL IN PARTICULAR BROADLY DECLINED, WHILE OVERALLSALES VOLUME WAS UP SLIGHTLY FROM THE PREVIOUS YEAR, BY 0.1%.

2 Reinforcement of carbonated beverages
3 Expansion and efficiency improvements of vending machine business
4 Expansion of market share
5 Reduction of total assets and improvement of capital efficiency

Sales by Quarter(Thousands of cases)
Sales volume(Composition ratio)

39,487

YoY change
volumepercent

21.2%

+379

+1.0%

47,254

25.3%

-174

-0.4%

55,894

30.0%

+480

+0.9%

43,867

23.5%

-420

-0.9%

Total........................ 186,502

100.0%

+265

+0.1%

Q1 ..........................
Q2 ..........................
Q3 ..........................
Q4 ..........................

Sales by Brand

21.2%

23.5%
BREAKDOWNOFSALES VOLUME

Q3

Q2

30.0%

25.3%

(Thousands of cases)
Sales volume(Composition ratio)

YoY change
volumepercent

Coca-Cola

9.7%

Coca-Cola ................ 18,152

9.7％+1,179+6.9％Georgia .................... 42,216

22.6％

-157

-0.4％

Other

Sokenbicha .............. 14,268

7.7％-1,391

-8.9％

49.8%

Aquarius .................. 19,103

10.2％

-314

-1.6％

Other ....................... 92,763

49.8％

+948

+1.0％

Aquarius

Total........................ 186,502

100.0％

+265

+0.1％

10.2%

Sales by Channel

Georgia
BREAKDOWNOFSALES VOLUME

22.6%
Sokenbicha

7.7%(Thousands of cases)
Sales volume(Composition ratio)

YoY change
volumepercent

Other

Vending machines ..... 57,795

31.0％-1,207

-2.0％

13.2%

Chain stores ............. 42,037

22.5％+2,668+6.8％

Food service

Convenience stores ... 19,176

10.3％

+575

+3.1％

Retail stores ............. 24,350

13.1％-1,475-5.7％

Food service ............. 18,418

9.9％

+47

+0.3％

Other ....................... 24,726

13.2％

-344

-1.4％

Total........................ 186,502

100.0％

+265

+0.1％

9.9%
Retail stores

Vending machines

31.0%
BREAKDOWNOFSALES VOLUME

13.1%
Convenience stores

10.3%

Chain stores

22.5%

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

08

Q1

Q4

09

EXPANSION AND
EFFICIENCY IMPROVEMENT EFFORTS
Special Feature

KEY ISSUES
FOR 2008

2
1 Reinforcement of coffee drinks

Sales Overview
THE SOFT DRINK MARKET IN 2008 WAS AFFECTED BY UNSEASONABLE WEATHER, PRODUCT SUPPLYSHORTAGES AND DECLINING EXPENDITURES DUE TO WORSENING OF ECONOMIC CIRCUMSTANCES,TERMED THE WORST IN 100 YEARS, AND SALES VOLUME WAS DOWN BY 1% YEAR-ON-YEAR. AT
CCW, SALES BY VENDING MACHINE CHANNEL IN PARTICULAR BROADLY DECLINED, WHILE OVERALLSALES VOLUME WAS UP SLIGHTLY FROM THE PREVIOUS YEAR, BY 0.1%.

2 Reinforcement of carbonated beverages
3 Expansion and efficiency improvements of vending machine business
4 Expansion of market share
5 Reduction of total assets and improvement of capital efficiency

Sales by Quarter(Thousands of cases)
Sales volume(Composition ratio)

39,487

YoY change
volumepercent

21.2%

+379

+1.0%

47,254

25.3%

-174

-0.4%

55,894

30.0%

+480

+0.9%

43,867

23.5%

-420

-0.9%

Total........................ 186,502

100.0%

+265

+0.1%

Q1 ..........................
Q2 ..........................
Q3 ..........................
Q4 ..........................

Sales by Brand

21.2%

23.5%
BREAKDOWNOFSALES VOLUME

Q3

Q2

30.0%

25.3%

(Thousands of cases)
Sales volume(Composition ratio)

YoY change
volumepercent

Coca-Cola

9.7%

Coca-Cola ................ 18,152

9.7％+1,179+6.9％Georgia .................... 42,216

22.6％

-157

-0.4％

Other

Sokenbicha .............. 14,268

7.7％-1,391

-8.9％

49.8%

Aquarius .................. 19,103

10.2％

-314

-1.6％

Other ....................... 92,763

49.8％

+948

+1.0％

Aquarius

Total........................ 186,502

100.0％

+265

+0.1％

10.2%

Sales by Channel

Georgia
BREAKDOWNOFSALES VOLUME

22.6%
Sokenbicha

7.7%(Thousands of cases)
Sales volume(Composition ratio)

YoY change
volumepercent

Other

Vending machines ..... 57,795

31.0％-1,207

-2.0％

13.2%

Chain stores ............. 42,037

22.5％+2,668+6.8％

Food service

Convenience stores ... 19,176

10.3％

+575

+3.1％

Retail stores ............. 24,350

13.1％-1,475-5.7％

Food service ............. 18,418

9.9％

+47

+0.3％

Other ....................... 24,726

13.2％

-344

-1.4％

Total........................ 186,502

100.0％

+265

+0.1％

9.9%
Retail stores

Vending machines

31.0%
BREAKDOWNOFSALES VOLUME

13.1%
Convenience stores

10.3%

Chain stores

22.5%

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

08

Q1

Q4

09

KEY ISSUES FOR 2008

1

Reinforcement of coffee drinks

2

Recovery of Georgia Brand and Sales Expansion

Reinforcement of sparking brands
Expansion of sparking brands centering on the excellent condition of the Coca-Cola TM

New Campaign “Georgia, Surprisingly Good!”

Execution of Three-color Cola Strategy

For Georgia, on February 4, a new campaign for 2008 started,“Georgia, Surprisingly Good!” This phrase emphasizes theexcellent product value of the Georgia Brand and also includes
the message that there is more “good work” in your life than
you think. To strengthen brand value and expand sales volume,the exposure of this campaign was vigorously reinforced at thevarious sales venues.

Through continuous expansion of the three-color Cola strategy,
that is, Coca-Cola, Coca-Cola Zero, Non-calorie Coca-Cola Plus
Vitamin, sales volume continued to improve from the previous
year.
Coca-Cola TM Sales Volume Trends(Thousands of cases)

25 , 000

18 , 152

20 , 000
15 , 000
10 , 000
5 , 000

Renewal of Core Flavors

0

Making use of the asset of “Emerald Mountain,” which is one of
the core flavors of Georgia, in an effort to grow sales volume anew product was added to the growing non-sugar segment on
March 31. And, in an effort to grow sales volume in thevery-low-sugar segment, the basic flavor of “European” wasalso renewed on July 7, not merely the packaging but also thetaste.

+6.9％

2007

2008

Introduction of “Fanta Furu-Furu Shaker,” a New Style of Sparking Brand● Emerald Mountain Blend

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

● Total of Georgia brand● European+

Year-on-year

Emerald Mountain Blend

Emerald Mountain Blend

Standard

Café Au Lait

EuropeanBlack

Very-low-sugar

Trends in Carbonated Beverage Sales Volume(Thousands of cases)

40 , 000

030 , 000
20 , 000-

10 , 000European

1Q

2Q

3Q

4Q

Renewal release
in 1Q

New release
in 1Q

New release
in 1Q

Renewal release
in 3Q

0

Year-on-year+8.4％

29 , 253

2007

31 , 723

2008

Orange flavor

Grape flavor

Lemon flavor

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

Fanta is the No. l flavor in carbonated beverages in Japan, andlast year it celebrated its 50th anniversary from release in1958. From this Fanta brand, a unique product that needs to be“shaken and then drunk” was born, even though usually it isconsidered that carbonated beverages should not be shaken.
With the contribution by the Fanta Furu-Furu Shaker, the sales
volume of carbonated beverages grew still further.

Trends in Georgia Sales Volume

10

Year-on-year

16 , 973

11

KEY ISSUES FOR 2008

1

Reinforcement of coffee drinks

2

Recovery of Georgia Brand and Sales Expansion

Reinforcement of sparking brands
Expansion of sparking brands centering on the excellent condition of the Coca-Cola TM

New Campaign “Georgia, Surprisingly Good!”

Execution of Three-color Cola Strategy

For Georgia, on February 4, a new campaign for 2008 started,“Georgia, Surprisingly Good!” This phrase emphasizes theexcellent product value of the Georgia Brand and also includes
the message that there is more “good work” in your life than
you think. To strengthen brand value and expand sales volume,the exposure of this campaign was vigorously reinforced at thevarious sales venues.

Through continuous expansion of the three-color Cola strategy,
that is, Coca-Cola, Coca-Cola Zero, Non-calorie Coca-Cola Plus
Vitamin, sales volume continued to improve from the previous
year.
Coca-Cola TM Sales Volume Trends(Thousands of cases)

25 , 000

18 , 152

20 , 000
15 , 000
10 , 000
5 , 000

Renewal of Core Flavors

0

Making use of the asset of “Emerald Mountain,” which is one of
the core flavors of Georgia, in an effort to grow sales volume anew product was added to the growing non-sugar segment on
March 31. And, in an effort to grow sales volume in thevery-low-sugar segment, the basic flavor of “European” wasalso renewed on July 7, not merely the packaging but also thetaste.

+6.9％

2007

2008

Introduction of “Fanta Furu-Furu Shaker,” a New Style of Sparking Brand● Emerald Mountain Blend

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

● Total of Georgia brand● European+

Year-on-year

Emerald Mountain Blend

Emerald Mountain Blend

Standard

Café Au Lait

EuropeanBlack

Very-low-sugar

Trends in Carbonated Beverage Sales Volume(Thousands of cases)

40 , 000

030 , 000
20 , 000-

10 , 000European

1Q

2Q

3Q

4Q

Renewal release
in 1Q

New release
in 1Q

New release
in 1Q

Renewal release
in 3Q

0

Year-on-year+8.4％

29 , 253

2007

31 , 723

2008

Orange flavor

Grape flavor

Lemon flavor

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

Fanta is the No. l flavor in carbonated beverages in Japan, andlast year it celebrated its 50th anniversary from release in1958. From this Fanta brand, a unique product that needs to be“shaken and then drunk” was born, even though usually it isconsidered that carbonated beverages should not be shaken.
With the contribution by the Fanta Furu-Furu Shaker, the sales
volume of carbonated beverages grew still further.

Trends in Georgia Sales Volume

10

Year-on-year

16 , 973

11

KEY ISSUES FOR 2008

3

Expansion and efficiency improvementsof vending machine businessAs a worldwide partner of the Beijing Olympic Games, an effort
to expand sales volume was made through intensive sales
activities that made use of the kind of Olympic promotion that
only Coca-Cola can do, along with Georgia promotion. What’ smore, vending machines with on-board IT were introduced in aneffort to reduce sales losses in high season due to selling out or
being out of order.
The number of support-type vending machines, which
reimburse a part of their sales to fund social contribution
projects for the community and activities for events and sports
organizations increased by 411, to 1,742 units.

5

Reduction of total assets and improvementof capital efficiency

In order to execute a flexible capital structure policy according
to changes in the business environment and in the interest ofraising capital efficiency, we repurchased 6,165 thousand
Company shares for ¥14,401million in this fiscal term. We also

Georgia promotion display

worked toward advanced depreciation of assets by repaying
loaned moneys, etc., and, as a result, total assets as of end of
fiscal 2008 decreased by ¥37,976 million compared to theprevious term-end, to ¥277,696 million.

Decreased by¥37,976 million

Olympic display-14,485Loans-12,500

Sales equipment-1,186

Other
Support-type vending machines¥315,672 million+411units

Advanced depreciationof total assets¥277,696 million

Year-on-year

4

Treasury shares

Expansion of market share

FY 2007

In the chain store channel, centering on the Osaka area, with its
large market, in addition to carbonated beverages such as
Coca-Cola and Fanta, the water category, of which the market
scale has been expanding, was reinforced additionally, and, asa result of efforts to expand line items through reinforcement ofrelationships with consumers, we succeeded in growing sales
volume and market share.

Acquisition oftreasury shares
Repayment of loans
Effective activation ofasset holdings

FY 2008[Reference] ACQUISITION OF TREASURY SHARES

2008

January
February① Acquisition of treasury stock up to 1,500,000 shares (4,000 million yen) by resolution of the Board of Directors Meeting of February 7, 2008
Acquisition Period: February 8, 2008 to March 17, 2008
Total number of acquired shares: 1,500,000 shares Total acquisition value: ¥ 3,320,425,000

1,500,000 sharesacquired② Acquisition of treasury stock up to 3,000,000 shares (8,000 million yen) by resolution of the Board of Directors Meeting as of April 24, 2008

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

(Thousands of cases)

50 , 000

April

Acquisition Period: April 25, 2008 to June 30, 2008
Total number of acquired shares: 1,874,500 shares

40 , 000
30 , 000
20 , 000
10 , 000
039 , 369+6.8％

42 , 037
1,874,500 sharesacquiredYear-on-yearMay③ Acquisition of treasury stock up to 2,000,000 shares (5,000 million yen) by resolution of the Board of Directors Meeting as of August 4, 2008
June

2007

Trends in Chain Stores Market Share2008

AugustYoY variance

1,491,400 sharesacquired

September

2Q

3Q

UP

UP

UP

SpliteMinaqua

Acquisition Period: October 30, 2008 to December 11, 2008
Total number of acquired shares: 1,300,000 shares Total acquisition value: ¥ 2,634,330,100

UP

October
1,300,000 sharesacquiredNovember
December

12④ Acquisition of treasury stock up to 1,300,000 shares (3,250 million yen) by resolution of the Board of Directors Meeting as of October 29, 2008

4Q

+0.1pt +1.5pt +0.7pt +1.6pt

Fanta Orange

Acquisition Period: August 5, 2008 to September 30, 2008
Total number of acquired shares: 1,491,400 shares Total acquisition value: ¥ 3,666,770,500

July

1Q

Coca-Cola Zero

Total acquisition value: ¥ 4,779,538,000

As of December 31, 2008
Total issued and outstanding shares: 111,125 thousand shares
Number of treasury shares:
11,148 thousand shares (10%)

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

March

Trends in Chain Stores Channel Sales

13

KEY ISSUES FOR 2008

3

Expansion and efficiency improvementsof vending machine businessAs a worldwide partner of the Beijing Olympic Games, an effort
to expand sales volume was made through intensive sales
activities that made use of the kind of Olympic promotion that
only Coca-Cola can do, along with Georgia promotion. What’ smore, vending machines with on-board IT were introduced in aneffort to reduce sales losses in high season due to selling out or
being out of order.
The number of support-type vending machines, which
reimburse a part of their sales to fund social contribution
projects for the community and activities for events and sports
organizations increased by 411, to 1,742 units.

5

Reduction of total assets and improvementof capital efficiency

In order to execute a flexible capital structure policy according
to changes in the business environment and in the interest ofraising capital efficiency, we repurchased 6,165 thousand
Company shares for ¥14,401million in this fiscal term. We also

Georgia promotion display

worked toward advanced depreciation of assets by repaying
loaned moneys, etc., and, as a result, total assets as of end of
fiscal 2008 decreased by ¥37,976 million compared to theprevious term-end, to ¥277,696 million.

Decreased by¥37,976 million

Olympic display-14,485Loans-12,500

Sales equipment-1,186

Other
Support-type vending machines¥315,672 million+411units

Advanced depreciationof total assets¥277,696 million

Year-on-year

4

Treasury shares

Expansion of market share

FY 2007

In the chain store channel, centering on the Osaka area, with its
large market, in addition to carbonated beverages such as
Coca-Cola and Fanta, the water category, of which the market
scale has been expanding, was reinforced additionally, and, asa result of efforts to expand line items through reinforcement ofrelationships with consumers, we succeeded in growing sales
volume and market share.

Acquisition oftreasury shares
Repayment of loans
Effective activation ofasset holdings

FY 2008[Reference] ACQUISITION OF TREASURY SHARES

2008

January
February① Acquisition of treasury stock up to 1,500,000 shares (4,000 million yen) by resolution of the Board of Directors Meeting of February 7, 2008
Acquisition Period: February 8, 2008 to March 17, 2008
Total number of acquired shares: 1,500,000 shares Total acquisition value: ¥ 3,320,425,000

1,500,000 sharesacquired② Acquisition of treasury stock up to 3,000,000 shares (8,000 million yen) by resolution of the Board of Directors Meeting as of April 24, 2008

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

(Thousands of cases)

50 , 000

April

Acquisition Period: April 25, 2008 to June 30, 2008
Total number of acquired shares: 1,874,500 shares

40 , 000
30 , 000
20 , 000
10 , 000
039 , 369+6.8％

42 , 037
1,874,500 sharesacquiredYear-on-yearMay③ Acquisition of treasury stock up to 2,000,000 shares (5,000 million yen) by resolution of the Board of Directors Meeting as of August 4, 2008
June

2007

Trends in Chain Stores Market Share2008

AugustYoY variance

1,491,400 sharesacquired

September

2Q

3Q

UP

UP

UP

SpliteMinaqua

Acquisition Period: October 30, 2008 to December 11, 2008
Total number of acquired shares: 1,300,000 shares Total acquisition value: ¥ 2,634,330,100

UP

October
1,300,000 sharesacquiredNovember
December

12④ Acquisition of treasury stock up to 1,300,000 shares (3,250 million yen) by resolution of the Board of Directors Meeting as of October 29, 2008

4Q

+0.1pt +1.5pt +0.7pt +1.6pt

Fanta Orange

Acquisition Period: August 5, 2008 to September 30, 2008
Total number of acquired shares: 1,491,400 shares Total acquisition value: ¥ 3,666,770,500

July

1Q

Coca-Cola Zero

Total acquisition value: ¥ 4,779,538,000

As of December 31, 2008
Total issued and outstanding shares: 111,125 thousand shares
Number of treasury shares:
11,148 thousand shares (10%)

SPECIAL FEATURE 2 Expansion and Efficiency Improvement Efforts Annual Review 2008

March

Trends in Chain Stores Channel Sales

13

Operating Performance

NUMBER OF VENDING MACHINESPERCENTAGE OF SALES BY CHANNEL（％）(Machines)

100

300,000
258,955

260,381258,444

253,353

252,940

200,000

The number of machines
installed has declined in
the past several years,
but this is primarily due tothe removal of units withlow sales as part of the
focus on profitability.

80
60
40

12.0%

12.6%

13.2%

13.4%

13.2%

10.2%

10.1%

9.4%

9.9%

9.9%

13.5%

15.7%

14.6%

13.9%

13.1%

10.9%

10.4%

10.3%

10.0%

10.3%

22.1%

19.7%

20.2%

21.1%

22.5%

31.2%

31.4%

32.2%

31.7%

31.0%

100,000

20
0

0

2004

2005

2006

2007

2004

2005

2006

2007

2008

YoY % Change■ Vending machines ..................

58,05559,06258,75859,002

57,795(-2.0%)■ Chain stores............................

41,17437,03436,75639,36942,037(+6.8%)■ Convenience stores ................

20,352

19,534

18,832

18,601

19,176(+3.1%)■ Retails (food and liquor shops) ......

25,05929,53426,65925,82524,350(-5.7%)■ Food service ...........................

19,01818,992

17,131

18,371

18,418(+0.3%)■ Other ......................................

22,41823,746

24,071

25,07024,726(-1.4%)

Total ............................................. 186,076

187,902

182,207

186,237

186,502(+0.1%)(Thousands of cases)

2008(Note) Vending machine numbers above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.

(Notes) Sales figures above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.
Some corrections have been made to sales volume figures for the previous year, which have been reflected in year-on-year comparisons.

PERCENTAGE OF SALES BY BRANDPERCENTAGE OF SALES BY PACKAGE

（％）

（％）

100

100

80

80

49.5%

50.5%

49.9%

26.6%

26.5%

26.1%

37.5%

36.4%

35.1%

33.4%

33.9%

15.3%

15.2%

15.6%

16.2%

17.4%

18.8%
1.5%

20.1%
1.2%

21.6%
1.1%

22.8%
1.1%

21.5%
1.1%

60
8.3%
9.1%

40

9.8%
7.7%

10.6%

10.4%

10.2%

8.1%

8.4%

7.7%

20

23.9%

23.6%

23.4%

22.8%

22.6%

0

9.2%

8.4%

8.0%

9.1%

9.7%

40
20
0

2004

2005

2006

2007

2008

YoY % Change■ Coca-Cola ..........................

17,09615,801

14,635

16,97318,152(+6.9%)■ Bottle .....................................

■ Georgia...............................

44,43344,366

42,66542,37342,216(-0.4%)

2004

2005

2006

2007

2008

YoY % Change

2,312
37,8372,074
39,4452,073
42,4702,082
40,028(+0.4%)■ Small PET bottles (up to 1000ml)① ...

2,881
34,951(-5.7%)

28,45328,51728,34830,25032,508(+7.5%)(Thousands of cases)

17,01814,473

14,711

15,65914,268(-8.9%)

15,47818,401

19,29819,417

19,103(-1.6%)

Total PET bottles(①+②).................

66,28568,66669,86772,72072,536(-0.3%)

Annual Review 2008

■ Aquarius .............................

Total for CCW’s Core Brands..

94,02593,04191,30994,42293,739(-0.7%)■ Cans (including Bottle-Cans) ...............

■ Other ..................................

92,051

94,86190,89891,81592,763(+1.0%)

68,4666,281
44,48963,9286,104
42,30862,262
6,318
42,864

63,211
6,191
42,482(-2.0%)■ Syrup, powder, food ....................

69,856
6,028
43,907

Total ........................................

186,076

187,902

182,207

186,237

186,502(+0.1%)

Total ...........................................

186,076

187,902

182,207

186,237

186,502(+0.1%)

14(Notes) Sales figures above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.
Some corrections have been made to sales volume figures for the previous year, which have been reflected in year-on-year comparisons.

■ Other .....................................

(Notes) Sales figures above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.
Some corrections have been made to sales volume figures for the previous year, which have been reflected in year-on-year comparisons.

(+1.5%)(-0.9%)

Annual Review 2008

■ Sokenbicha ........................

■ Large PET bottles (over 1000 ml)② ...

OPERATING PERFORMANCEOPERATING PERFORMANCE

27.1%

49.8%

49.3%

60

(Thousands of cases)

26.9%

15

Operating Performance

NUMBER OF VENDING MACHINESPERCENTAGE OF SALES BY CHANNEL（％）(Machines)

100

300,000
258,955

260,381258,444

253,353

252,940

200,000

The number of machines
installed has declined in
the past several years,
but this is primarily due tothe removal of units withlow sales as part of the
focus on profitability.

80
60
40

12.0%

12.6%

13.2%

13.4%

13.2%

10.2%

10.1%

9.4%

9.9%

9.9%

13.5%

15.7%

14.6%

13.9%

13.1%

10.9%

10.4%

10.3%

10.0%

10.3%

22.1%

19.7%

20.2%

21.1%

22.5%

31.2%

31.4%

32.2%

31.7%

31.0%

100,000

20
0

0

2004

2005

2006

2007

2004

2005

2006

2007

2008

YoY % Change■ Vending machines ..................

58,05559,06258,75859,002

57,795(-2.0%)■ Chain stores............................

41,17437,03436,75639,36942,037(+6.8%)■ Convenience stores ................

20,352

19,534

18,832

18,601

19,176(+3.1%)■ Retails (food and liquor shops) ......

25,05929,53426,65925,82524,350(-5.7%)■ Food service ...........................

19,01818,992

17,131

18,371

18,418(+0.3%)■ Other ......................................

22,41823,746

24,071

25,07024,726(-1.4%)

Total ............................................. 186,076

187,902

182,207

186,237

186,502(+0.1%)(Thousands of cases)

2008(Note) Vending machine numbers above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.

(Notes) Sales figures above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.
Some corrections have been made to sales volume figures for the previous year, which have been reflected in year-on-year comparisons.

PERCENTAGE OF SALES BY BRANDPERCENTAGE OF SALES BY PACKAGE

（％）

（％）

100

100

80

80

49.5%

50.5%

49.9%

26.6%

26.5%

26.1%

37.5%

36.4%

35.1%

33.4%

33.9%

15.3%

15.2%

15.6%

16.2%

17.4%

18.8%
1.5%

20.1%
1.2%

21.6%
1.1%

22.8%
1.1%

21.5%
1.1%

60
8.3%
9.1%

40

9.8%
7.7%

10.6%

10.4%

10.2%

8.1%

8.4%

7.7%

20

23.9%

23.6%

23.4%

22.8%

22.6%

0

9.2%

8.4%

8.0%

9.1%

9.7%

40
20
0

2004

2005

2006

2007

2008

YoY % Change■ Coca-Cola ..........................

17,09615,801

14,635

16,97318,152(+6.9%)■ Bottle .....................................

■ Georgia...............................

44,43344,366

42,66542,37342,216(-0.4%)

2004

2005

2006

2007

2008

YoY % Change

2,312
37,8372,074
39,4452,073
42,4702,082
40,028(+0.4%)■ Small PET bottles (up to 1000ml)① ...

2,881
34,951(-5.7%)

28,45328,51728,34830,25032,508(+7.5%)(Thousands of cases)

17,01814,473

14,711

15,65914,268(-8.9%)

15,47818,401

19,29819,417

19,103(-1.6%)

Total PET bottles(①+②).................

66,28568,66669,86772,72072,536(-0.3%)

Annual Review 2008

■ Aquarius .............................

Total for CCW’s Core Brands..

94,02593,04191,30994,42293,739(-0.7%)■ Cans (including Bottle-Cans) ...............

■ Other ..................................

92,051

94,86190,89891,81592,763(+1.0%)

68,4666,281
44,48963,9286,104
42,30862,262
6,318
42,864

63,211
6,191
42,482(-2.0%)■ Syrup, powder, food ....................

69,856
6,028
43,907

Total ........................................

186,076

187,902

182,207

186,237

186,502(+0.1%)

Total ...........................................

186,076

187,902

182,207

186,237

186,502(+0.1%)

14(Notes) Sales figures above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.
Some corrections have been made to sales volume figures for the previous year, which have been reflected in year-on-year comparisons.

■ Other .....................................

(Notes) Sales figures above represent the total for Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. and Mikasa Coca-Cola Bottling Co., Ltd.
Some corrections have been made to sales volume figures for the previous year, which have been reflected in year-on-year comparisons.

(+1.5%)(-0.9%)

Annual Review 2008

■ Sokenbicha ........................

■ Large PET bottles (over 1000 ml)② ...

OPERATING PERFORMANCEOPERATING PERFORMANCE

27.1%

49.8%

49.3%

60

(Thousands of cases)

26.9%

15

TOWARD BEING
A RELIABLE CORPORATIONCSR Promotional Activities

CSR Promotional Activities

Quality Assurance

What We Can Do to Save an Irreplaceably Valuable Resource

THE COCA-COLA WEST GROUP REGARDS QUALITY AS OUR TOP PRIORITY.
WE CONSISTENTLY PROVIDE FRESH PRODUCTS THAT ARE ALWAYS SAFE AND SECURE,
AND WE TAKE THE INITIATIVE TO CONTINUALLY IMPROVE QUALITY TO EARN CONSUMER TRUST.

What We Can Do for Local Communities through Our Business Activities

Efforts to maintain the highest quality

Quality Assurance

Contributions to Local Communities

We have instituted a range of activities designed to maintain the highest quality through every step from the plant to the consumer.

Environmental Activities

IMPROVEMENT ACTIVITIES BASED ON CONSUMER FEEDBACK
consumers

Coca-Cola West Group is working hard at CSR activities with an aim at
becoming a corporation that is trusted by all stakeholders.
We would like to report on our CSR promotional activities in daily
operations based on our Corporate Mission.

PlantsWarehouses■ Risk management through traceability

Branches

Stores / Vending machines■ Quality control using in-house standards

Highest quality

Efforts at our Plants
We acquired ISO9001 certification, the international standard for quality assurance, atan early stage and have been implementing strict quality control in our manufacturing
operations.
We have also introduced the world-class Coca-Cola Quality Management System,
independently formulated by the Coca-Cola System, and are producing products that
customers can enjoy with peace of mind, by incorporating HACCP-based control andtaking other necessary measures.
HACCP:A method of food hygiene control developed in the US in the1960s to ensure the safety of foodprepared for astronauts

ISO9001 Certificate
of Registration

Coca-Cola Quality Management System Certificate
of Registration

Quality Standards
In every aspect of our business−at plants,
warehouses, logistics facilities, sales storesand vending machines−we not only comply
with laws and regulations but also impose
our own strict quality standards to ensurethat all employees fulfill their responsibility
to provide customers with only the highest
quality products.

Management System

Improvement Efforts
A management sys tem prepared to handle
unexpec tedcontingencies is an impor tantelement in remaining as a company that canbe trusted. We have strengthened our risk
management (crisis management) andtraceability (trace management), and havedeveloped a system enabling us to respondpromptly to risks that might arise.

With the aim of “enabling consumers toenjoy fresh products without anxiety,” wehave made every effort to put in place afreshness control system that reduces thenumber of inventory days and puts productsin the hands of customers as soon as
possible. We are arranging deliveries of
products to stores in line with the volume
sold, while our sales personnel provide
appropriate warehouse management ofvending machine goods.
We utilize consumer feedback to guide ourefforts in delivering produc t s of the highes
t qual i ty. We refer to submi t tedcomments in our review of day-to-day
activities and vigorously pursue
improvements to our operations.

Coca-Cola West Products Co., Ltd.

Hiroyuki Fukuyone

During production, we pay particular attention to the condition of nozzles in the sterilization and cleansing of
PET bottles and for any leakage around liquid product tubes. We will continue these efforts with the firm
belief that early detection of problems is the key for delivering safe products to our customers.

Annual Review 2008

Annual Review 2008

We want to deliver safe products.

CSR PROMOTIONAL ACTIVITIESCSR PROMOTIONAL ACTIVITIES16Freshness Control

17

TOWARD BEING
A RELIABLE CORPORATIONCSR Promotional Activities

CSR Promotional Activities

Quality Assurance

What We Can Do to Save an Irreplaceably Valuable Resource

THE COCA-COLA WEST GROUP REGARDS QUALITY AS OUR TOP PRIORITY.
WE CONSISTENTLY PROVIDE FRESH PRODUCTS THAT ARE ALWAYS SAFE AND SECURE,
AND WE TAKE THE INITIATIVE TO CONTINUALLY IMPROVE QUALITY TO EARN CONSUMER TRUST.

What We Can Do for Local Communities through Our Business Activities

Efforts to maintain the highest quality

Quality Assurance

Contributions to Local Communities

We have instituted a range of activities designed to maintain the highest quality through every step from the plant to the consumer.

Environmental Activities

IMPROVEMENT ACTIVITIES BASED ON CONSUMER FEEDBACK
consumers

Coca-Cola West Group is working hard at CSR activities with an aim at
becoming a corporation that is trusted by all stakeholders.
We would like to report on our CSR promotional activities in daily
operations based on our Corporate Mission.

PlantsWarehouses■ Risk management through traceability

Branches

Stores / Vending machines■ Quality control using in-house standards

Highest quality

Efforts at our Plants
We acquired ISO9001 certification, the international standard for quality assurance, atan early stage and have been implementing strict quality control in our manufacturing
operations.
We have also introduced the world-class Coca-Cola Quality Management System,
independently formulated by the Coca-Cola System, and are producing products that
customers can enjoy with peace of mind, by incorporating HACCP-based control andtaking other necessary measures.
HACCP:A method of food hygiene control developed in the US in the1960s to ensure the safety of foodprepared for astronauts

ISO9001 Certificate
of Registration

Coca-Cola Quality Management System Certificate
of Registration

Quality Standards
In every aspect of our business−at plants,
warehouses, logistics facilities, sales storesand vending machines−we not only comply
with laws and regulations but also impose
our own strict quality standards to ensurethat all employees fulfill their responsibility
to provide customers with only the highest
quality products.

Management System

Improvement Efforts
A management sys tem prepared to handle
unexpec tedcontingencies is an impor tantelement in remaining as a company that canbe trusted. We have strengthened our risk
management (crisis management) andtraceability (trace management), and havedeveloped a system enabling us to respondpromptly to risks that might arise.

With the aim of “enabling consumers toenjoy fresh products without anxiety,” wehave made every effort to put in place afreshness control system that reduces thenumber of inventory days and puts productsin the hands of customers as soon as
possible. We are arranging deliveries of
products to stores in line with the volume
sold, while our sales personnel provide
appropriate warehouse management ofvending machine goods.
We utilize consumer feedback to guide ourefforts in delivering produc t s of the highes
t qual i ty. We refer to submi t tedcomments in our review of day-to-day
activities and vigorously pursue
improvements to our operations.

Coca-Cola West Products Co., Ltd.

Hiroyuki Fukuyone

During production, we pay particular attention to the condition of nozzles in the sterilization and cleansing of
PET bottles and for any leakage around liquid product tubes. We will continue these efforts with the firm
belief that early detection of problems is the key for delivering safe products to our customers.

Annual Review 2008

Annual Review 2008

We want to deliver safe products.

CSR PROMOTIONAL ACTIVITIESCSR PROMOTIONAL ACTIVITIES16Freshness Control

17

CSR PROMOTIONAL ACTIVITIESWhat We Can Do to Save an Irreplaceably Valuable Resource

What We Can Do for Local Communities through Our Business Activities

Expanding our efforts to conserve watershed protection forests

Installing vending machines to support local communities

As an enterprise that uses the irreplaceably valuable resource ofwater, the Coca-Cola West Group recognizes that water resource
conservation is a key social responsibility. In 2008 we concluded
joint management agreements encompassing a total of 17
hectares with local governments in Mihara in Hiroshima Prefecture
and Ono in Hyogo Prefecture, in addition to our standing
agreements with local governments in Tosu in Saga Prefecture,
Houki in Tottori Prefecture, Ujitawara in Kyoto Prefecture and Aisho
in Aichi Prefecture. We refer to these forests, which are in six
locations covering a total of 62 hectares, as Sawayaka
Shizen-no-Mori. We are actively conserving these areas aswatershed protection forests through conservation activities andnature schools involving employees and their families as well asother stakeholders.

The Coca-Cola West Group installs vending machines that support
local communities. Our support vending machines, such as“community contribution vending machines” and “disaster-response

vending machines,” represent one way in which we are assisting
local communities and helping to ensure the safety and security of
local residents.

“Community contribution vending machines”
for the local community

Offering security in times of emergency with“disaster-responsive vending machines”

Under the concept of vending machines as donation boxes, aportion of the sales revenues is returned to the local community tofund social contribution activities and civic events or to provide
operating funds for sports organizations as a collaborative effort
with customers.
We became the first to introduce these community contribution
vending machines in 2001. In 2008, we added 411 moremachines, bringing the cumulative total to more than 1,700.
Beyond increasing the number of such machines, we have also
expanded the purposes for which they can be used, granting thema wider range of roles. For example, in October 2008, 13
community contribution vending machines
were installed at Toyota Buhin Fukuoka
Kyohan Co., Ltd. A portion of their sales
was donated to the local traffic safety
association to purchase child seats and to
fund safe-driving campaigns.

Disaster-responsive vending machines provide free soft drinks toresidents in the event that supply lines are severely disrupted byearthquakes or other disasters and are controlled remotely fromlocal government offices. These machines are also outfitted withdigital displays that can provide real-time information on
emergency evacuation sites and maps. In
2008, 10 machines were installed, bringing
the cumulative total to 147 and further
strengthening our contribution to the safety
and security of local residents. While wecertainly hope that no such disasters happen,
we are preparing to offer assistance for those
who need it when the event occurred.

Agreement for Hiroshima
Sawayaka Shizen-no-MoriTree thinning

I hope efforts of the Coca-Cola West Groupbuild momentum for forest conservation.
Deputy general manager Mihara Agriculture, Forestry and Fisheries Division

Inauguration ceremony for Hyogo
Sawayaka Shizen-no-Mori

Signboard at Hyogo
Sawayaka Shizen-no-Mori■ Area of Sawayaka Shizen-no-Mori（ha）

Kouichi Ikeda
Although forests offer significant bounties, our changing
lifestyles have led to a neglect of the forests, which were once
close to us. I hope activities at the Hiroshima Sawayaka
Shizen-no-Mori will build momentum in forest conservation.

I’ve come to realize how precious nature really is.

70

62

60

Hyogo

45

50

Hiroshima
Tottori
Shiga

40

Karatsu Branch, Coca-Cola West Co., Ltd.

30

Natsuki Ooba

20

What I realized was the immense challenge of protecting
nature. I felt a need to work with others to create what would be
too difficult for anyone alone. I intend to actively participate inpreserving the environment, publicly and privately, through such
efforts as conserving the resources we tend to use carelessly,
such as paper.

10
0

Kyoto

17

Tosu

2006

2007

the effective use of resources by sorting and recycling the resulting
materials. We are the first beverage manufacturer to begin
operating a large-scale, in-house waste disposal facility. We plan
to recycle 16,000 machines annually.

Local government
Purchases at community
Consumers contribution
vending machines

Local information, flash news and other such data are transmitted.
Information on disaster and other messages can be conveyed inreal time during emergencies and free drinks can be provided.

Consumers
Sales revenues generated■ Retired Vending Machine Recycling Process

Separation

RetiredVending Machines

Iron

2008

Number of Retired Vending Machines(Units)

31,44530,91529,313

Of which, number recycled at our Recycling Center

ー

ー

8,033

6,698

6,426

6,197

Glass

ー

ー

2,238

Plastic

Business Clients
RetiredVending Machine
Press

CopperSorting

Stainless steel

Collection/destruction

Fluorescent lamps

Recycling

NiCd batteries

Recycling

での品質保証への取り組み
Drink supply(Free drinks provided)

Disasterinformation

Local social contribution projects, activity
funding for events and sports organizations,purchase of child seats, etc.

Aluminum

CFC gases

Portion of sales revenues

To ironmanufacturers,etc.

We pursue deeply rooted community
contributions from all employees.

We seek to ensure our vending machines areclosely connected with the community.

Deputy Manager, General A airs Group, Toyota Buhin Fukuoka Kyohan Co., Ltd.

Vending Promotion Section, Coca-Cola West Co., Ltd.

Noriaki Mouri

Shiho Tanaka

As we were looking for ways in which all our employees could
contribute to society as part of our 40th anniversary, Coca-Cola
West approached us with the idea of community contribution
vending machines. Employees who work at sites with thesemachines have shown growing enthusiasm for providing assistancein their communities, and so we intend to continue similar efforts
deeply rooted in community.

We install support vending machines in our aspiration to return partof our sales revenues to the public through funding social
contributions and to provide locals with disaster information in an
emergency. We and our customers feel we fulfill an important part ofour responsibility every day we clearly communicate a sense of
security to the public.

Annual Review 2008

Annual Review 2008

2007

Of which, amount collected at our Recycling Center

Damage to lifelines due to a major earthquake or other disaster

CSR PROMOTIONAL ACTIVITIESCSR PROMOTIONAL ACTIVITIES

18

Community Contribution Vending Machines

2006

CFC gas collected (kg)Disaster-response vending machine(Okawa, Fukuoka Pref.)Community contribution
vending machine■ Scheme to Support Local Activities through■ Number of Retired Vending Machines and Amountof CFC Gas Collecte

disaster-response vending machines
DISASTER STRIKE

2008

Launched the recycling of retired vending machines
We constructed a specialized facility for the disposal of retired
vending machines on the site of the Kitakyushu Eco Town in
Hibiki-machi, Wakamatsu-ku, Kitakyushu City, and subsequently
launched full-scale operations in April 2008. This Retired Vending
Machine Recycling Center enables us to disassemble and processused vending machines on our own, instead of outsourcing thisrole to a privately operated disposal facility, and to further promote■ Special characteristics of19

CSR PROMOTIONAL ACTIVITIESWhat We Can Do to Save an Irreplaceably Valuable Resource

What We Can Do for Local Communities through Our Business Activities

Expanding our efforts to conserve watershed protection forests

Installing vending machines to support local communities

As an enterprise that uses the irreplaceably valuable resource ofwater, the Coca-Cola West Group recognizes that water resource
conservation is a key social responsibility. In 2008 we concluded
joint management agreements encompassing a total of 17
hectares with local governments in Mihara in Hiroshima Prefecture
and Ono in Hyogo Prefecture, in addition to our standing
agreements with local governments in Tosu in Saga Prefecture,
Houki in Tottori Prefecture, Ujitawara in Kyoto Prefecture and Aisho
in Aichi Prefecture. We refer to these forests, which are in six
locations covering a total of 62 hectares, as Sawayaka
Shizen-no-Mori. We are actively conserving these areas aswatershed protection forests through conservation activities andnature schools involving employees and their families as well asother stakeholders.

The Coca-Cola West Group installs vending machines that support
local communities. Our support vending machines, such as“community contribution vending machines” and “disaster-response

vending machines,” represent one way in which we are assisting
local communities and helping to ensure the safety and security of
local residents.

“Community contribution vending machines”
for the local community

Offering security in times of emergency with“disaster-responsive vending machines”

Under the concept of vending machines as donation boxes, aportion of the sales revenues is returned to the local community tofund social contribution activities and civic events or to provide
operating funds for sports organizations as a collaborative effort
with customers.
We became the first to introduce these community contribution
vending machines in 2001. In 2008, we added 411 moremachines, bringing the cumulative total to more than 1,700.
Beyond increasing the number of such machines, we have also
expanded the purposes for which they can be used, granting thema wider range of roles. For example, in October 2008, 13
community contribution vending machines
were installed at Toyota Buhin Fukuoka
Kyohan Co., Ltd. A portion of their sales
was donated to the local traffic safety
association to purchase child seats and to
fund safe-driving campaigns.

Disaster-responsive vending machines provide free soft drinks toresidents in the event that supply lines are severely disrupted byearthquakes or other disasters and are controlled remotely fromlocal government offices. These machines are also outfitted withdigital displays that can provide real-time information on
emergency evacuation sites and maps. In
2008, 10 machines were installed, bringing
the cumulative total to 147 and further
strengthening our contribution to the safety
and security of local residents. While wecertainly hope that no such disasters happen,
we are preparing to offer assistance for those
who need it when the event occurred.

Agreement for Hiroshima
Sawayaka Shizen-no-MoriTree thinning

I hope efforts of the Coca-Cola West Groupbuild momentum for forest conservation.
Deputy general manager Mihara Agriculture, Forestry and Fisheries Division

Inauguration ceremony for Hyogo
Sawayaka Shizen-no-Mori

Signboard at Hyogo
Sawayaka Shizen-no-Mori■ Area of Sawayaka Shizen-no-Mori（ha）

Kouichi Ikeda
Although forests offer significant bounties, our changing
lifestyles have led to a neglect of the forests, which were once
close to us. I hope activities at the Hiroshima Sawayaka
Shizen-no-Mori will build momentum in forest conservation.

I’ve come to realize how precious nature really is.

70

62

60

Hyogo

45

50

Hiroshima
Tottori
Shiga

40

Karatsu Branch, Coca-Cola West Co., Ltd.

30

Natsuki Ooba

20

What I realized was the immense challenge of protecting
nature. I felt a need to work with others to create what would be
too difficult for anyone alone. I intend to actively participate inpreserving the environment, publicly and privately, through such
efforts as conserving the resources we tend to use carelessly,
such as paper.

10
0

Kyoto

17

Tosu

2006

2007

the effective use of resources by sorting and recycling the resulting
materials. We are the first beverage manufacturer to begin
operating a large-scale, in-house waste disposal facility. We plan
to recycle 16,000 machines annually.

Local government
Purchases at community
Consumers contribution
vending machines

Local information, flash news and other such data are transmitted.
Information on disaster and other messages can be conveyed inreal time during emergencies and free drinks can be provided.

Consumers
Sales revenues generated■ Retired Vending Machine Recycling Process

Separation

RetiredVending Machines

Iron

2008

Number of Retired Vending Machines(Units)

31,44530,91529,313

Of which, number recycled at our Recycling Center

ー

ー

8,033

6,698

6,426

6,197

Glass

ー

ー

2,238

Plastic

Business Clients
RetiredVending Machine
Press

CopperSorting

Stainless steel

Collection/destruction

Fluorescent lamps

Recycling

NiCd batteries

Recycling

での品質保証への取り組み
Drink supply(Free drinks provided)

Disasterinformation

Local social contribution projects, activity
funding for events and sports organizations,purchase of child seats, etc.

Aluminum

CFC gases

Portion of sales revenues

To ironmanufacturers,etc.

We pursue deeply rooted community
contributions from all employees.

We seek to ensure our vending machines areclosely connected with the community.

Deputy Manager, General A airs Group, Toyota Buhin Fukuoka Kyohan Co., Ltd.

Vending Promotion Section, Coca-Cola West Co., Ltd.

Noriaki Mouri

Shiho Tanaka

As we were looking for ways in which all our employees could
contribute to society as part of our 40th anniversary, Coca-Cola
West approached us with the idea of community contribution
vending machines. Employees who work at sites with thesemachines have shown growing enthusiasm for providing assistancein their communities, and so we intend to continue similar efforts
deeply rooted in community.

We install support vending machines in our aspiration to return partof our sales revenues to the public through funding social
contributions and to provide locals with disaster information in an
emergency. We and our customers feel we fulfill an important part ofour responsibility every day we clearly communicate a sense of
security to the public.

Annual Review 2008

Annual Review 2008

2007

Of which, amount collected at our Recycling Center

Damage to lifelines due to a major earthquake or other disaster

CSR PROMOTIONAL ACTIVITIESCSR PROMOTIONAL ACTIVITIES

18

Community Contribution Vending Machines

2006

CFC gas collected (kg)Disaster-response vending machine(Okawa, Fukuoka Pref.)Community contribution
vending machine■ Scheme to Support Local Activities through■ Number of Retired Vending Machines and Amountof CFC Gas Collecte

disaster-response vending machines
DISASTER STRIKE

2008

Launched the recycling of retired vending machines
We constructed a specialized facility for the disposal of retired
vending machines on the site of the Kitakyushu Eco Town in
Hibiki-machi, Wakamatsu-ku, Kitakyushu City, and subsequently
launched full-scale operations in April 2008. This Retired Vending
Machine Recycling Center enables us to disassemble and processused vending machines on our own, instead of outsourcing thisrole to a privately operated disposal facility, and to further promote■ Special characteristics of19

CSR PROMOTIONAL ACTIVITIESContributions to Local Communities

Environmental Activities

WE SUPPORT THE HEALTHY DEVELOPMENT OF YOUTH AND ENCOURAGE CLOSER COMMUNICATIONWITH TARGET REGIONS IN FOUR MAJOR AREAS OF ACTIVITY: COMMUNITY WELFARE, SPORTS
ACTIVITIES, CULTURAL EVENTS AS WELL AS EDUCATIONAL PROGRAMS, AND MAJOR REGIONALEVENTS.

Donation of Educational
Materials to Special Schools

Donation of Unicycles
to Elementary Schools

School Biotope Creation

School Forestation Support

As par t of our community welfare efforts,
we donate information devices such as per
sonal computer s and peripherals as
educational equipment to special schools to
help children gain self-reliance. In 2008, we
donated educational equipments to 20
schools.

Members of the Coca-Cola West Red Sparks
rugby club teach rugby basics to high school
students as an activity that fosters good
health. In 2008, clinics were held in
Fukuoka and Hiroshima Prefectures, with a
total participation of about 400 students.

As a part of our support of sports activities,
we support the healthy development ofyouth by donating unicycles to public
elementary schools. Unicycles form a part of
the Ministry of Education, Culture, Sports,
Sci e nce a nd Te chno l o gy cur r i cul um
guidelines In 2008, 2,000 unicycles were
donated to 200 elementary schools.

This initiative is intended to share the wonder and preciousness of thenatural environment. Using their own design drawings, children workwith their teachers, parents and local residents to construct a small
ecological community (biotope) over half a year. In 2008, 15 schools
participated, bringing the total to 64 schools.

Under the common slogan, “Let’s create an oak tree forest,” children
become foster parents for oak seedlings, which they sprout and thenplant. In 2008, 930 children participated by planting seedlings they
had nurtured with hope that the trees would grow with vigor in theirnatural surroundings and help prevent global warming.

Sawayaka Classic Concerts

Sawayaka Family Musicals

Ichimura Nature School in Kyushu

Coca-Cola Ecology School

Local Community Cleanups

We invite local residents to attend concertsfeaturing the finest classical mus ic. Concer
t s were held in six locations in 2008 and inc
luded impressive performances by the Solisti
Filarmonici Italiani.

We invite children and their parents to musicalperformances as part of our support for cul
tural event s and educational programs. In
2008, we helped them experience thetheatrical world of fantasy created by powerfulperformances in the timeless masterpiece
Cinderella, which was staged at five locations.

As part of our cultural and educational
efforts, about 30 boys and girls from fourth
grade elementary school to second grade
junior high school lived together for roughlynine months and learned about the forces oflife through farming and nature activities.

This event for upper-grade elementary school students is designed tofoster a deep sensitivity and awareness of environmental conservation
through interaction with the natural environment. In 2008, 170
children participated in a two-day, one-night program, which offeredenvironmental studies that cannot be experienced in a classroom.

Once every month, the Coca-Cola West Group conducts a cleanup ofroads and public spaces near its offices and plants. We also work
closely with local governments in their cleanup initiatives. We
contribute to local beautification projects to express our gratitude as acompany that develops side by side with local communities.

Local Environmental Measures Reserve FundThe company annually allocates 300 million yen from surplus earnings to a Local Community Contribution Reserve Fund to actively
encourage contributions to local communities. The money set aside has been used to fund donations of unicycles to elementary
schools, the Sawayaka Classic Concerts, as well as other activities.

The Company allocates 150 million yen each year from surplus earnings to a Local Environmental Measures Reserve Fund topromote environmental conservation. The money has been used to fund activities such as the School Biotope Creation program andthe Coca-Cola Ecology School.

Annual Review 2008

Annual Review 2008

Local Community Contribution Reserve Fund

CSR PROMOTIONAL ACTIVITIESCSR PROMOTIONAL ACTIVITIES

20

Sawayaka Rugby Clinic

IN ADDITION TO SUPPORTING THE ENVIRONMENTAL EDUCATION ACTIVITIES OF LOCALCOMMUNITIES, WE ALSO TAKE PART IN FORESTATION AND BEAUTIFICATION PROJECTS TOREVITALIZE LOCAL SURROUNDINGS.

21

CSR PROMOTIONAL ACTIVITIESContributions to Local Communities

Environmental Activities

WE SUPPORT THE HEALTHY DEVELOPMENT OF YOUTH AND ENCOURAGE CLOSER COMMUNICATIONWITH TARGET REGIONS IN FOUR MAJOR AREAS OF ACTIVITY: COMMUNITY WELFARE, SPORTS
ACTIVITIES, CULTURAL EVENTS AS WELL AS EDUCATIONAL PROGRAMS, AND MAJOR REGIONALEVENTS.

Donation of Educational
Materials to Special Schools

Donation of Unicycles
to Elementary Schools

School Biotope Creation

School Forestation Support

As par t of our community welfare efforts,
we donate information devices such as per
sonal computer s and peripherals as
educational equipment to special schools to
help children gain self-reliance. In 2008, we
donated educational equipments to 20
schools.

Members of the Coca-Cola West Red Sparks
rugby club teach rugby basics to high school
students as an activity that fosters good
health. In 2008, clinics were held in
Fukuoka and Hiroshima Prefectures, with a
total participation of about 400 students.

As a part of our support of sports activities,
we support the healthy development ofyouth by donating unicycles to public
elementary schools. Unicycles form a part of
the Ministry of Education, Culture, Sports,
Sci e nce a nd Te chno l o gy cur r i cul um
guidelines In 2008, 2,000 unicycles were
donated to 200 elementary schools.

This initiative is intended to share the wonder and preciousness of thenatural environment. Using their own design drawings, children workwith their teachers, parents and local residents to construct a small
ecological community (biotope) over half a year. In 2008, 15 schools
participated, bringing the total to 64 schools.

Under the common slogan, “Let’s create an oak tree forest,” children
become foster parents for oak seedlings, which they sprout and thenplant. In 2008, 930 children participated by planting seedlings they
had nurtured with hope that the trees would grow with vigor in theirnatural surroundings and help prevent global warming.

Sawayaka Classic Concerts

Sawayaka Family Musicals

Ichimura Nature School in Kyushu

Coca-Cola Ecology School

Local Community Cleanups

We invite local residents to attend concertsfeaturing the finest classical mus ic. Concer
t s were held in six locations in 2008 and inc
luded impressive performances by the Solisti
Filarmonici Italiani.

We invite children and their parents to musicalperformances as part of our support for cul
tural event s and educational programs. In
2008, we helped them experience thetheatrical world of fantasy created by powerfulperformances in the timeless masterpiece
Cinderella, which was staged at five locations.

As part of our cultural and educational
efforts, about 30 boys and girls from fourth
grade elementary school to second grade
junior high school lived together for roughlynine months and learned about the forces oflife through farming and nature activities.

This event for upper-grade elementary school students is designed tofoster a deep sensitivity and awareness of environmental conservation
through interaction with the natural environment. In 2008, 170
children participated in a two-day, one-night program, which offeredenvironmental studies that cannot be experienced in a classroom.

Once every month, the Coca-Cola West Group conducts a cleanup ofroads and public spaces near its offices and plants. We also work
closely with local governments in their cleanup initiatives. We
contribute to local beautification projects to express our gratitude as acompany that develops side by side with local communities.

Local Environmental Measures Reserve FundThe company annually allocates 300 million yen from surplus earnings to a Local Community Contribution Reserve Fund to actively
encourage contributions to local communities. The money set aside has been used to fund donations of unicycles to elementary
schools, the Sawayaka Classic Concerts, as well as other activities.

The Company allocates 150 million yen each year from surplus earnings to a Local Environmental Measures Reserve Fund topromote environmental conservation. The money has been used to fund activities such as the School Biotope Creation program andthe Coca-Cola Ecology School.

Annual Review 2008

Annual Review 2008

Local Community Contribution Reserve Fund

CSR PROMOTIONAL ACTIVITIESCSR PROMOTIONAL ACTIVITIES

20

Sawayaka Rugby Clinic

IN ADDITION TO SUPPORTING THE ENVIRONMENTAL EDUCATION ACTIVITIES OF LOCALCOMMUNITIES, WE ALSO TAKE PART IN FORESTATION AND BEAUTIFICATION PROJECTS TOREVITALIZE LOCAL SURROUNDINGS.

21

Overview of Fiscal 2008 Operating Results
Analysis of Operating Performance
Net Revenues
Consolidated net revenues decreased ¥13,965 million, or 3.4%,
year-on-year to ¥395,556 million, due to the impact of various
factors, such as the decrease in retail sales via vending machines
and increase of wholesaling to supermarkets, etc., and in addition
reduction of consolidated subsidiaries as a result of a sale ofshares of subsidiaries, although sales volumes increased slightly.
Operating Income
Operating income decreased ¥5,534 million, or 34.5%, year-on-yearto ¥10,521 million, affected by cost increases resulting from thespiraling crude oil price and other factors, and reduction of net
revenues.
Recurring Income
Recurring income decreased ¥6,444 million, or 36.8%, year-on-yearto ¥11,048 million, due to loss incidental to reorganization of
Coca-Cola National Beverage Co., Ltd.
Net Income
Net income decreased ¥9,245 million, or 98.6%, year-on-year to¥129 million, as there was the expense of making efforts toward
reorganization of the Group in order to bring about the effect ofmanagement integration, and also losses on devaluation of
investment securities booked due to the decline of market value ofdomestic share holdings.
Dividends
Taking into consideration the results from throughout the year andthe future management environment, the year-end dividend
applicable to 2008 will be ¥22 per share. As a result, the full-year
dividend, which includes the interim dividend of ¥21, comes to ¥43
per share, the same amount as the previous year. Consequently,
the payment ratio was 74.9% and dividends on net assets was
1.9%.

NET REVENUES

450,000

360,000(millions of yen)409,521 395,556※The above plan is based on performance forecast announced as of May 1, 2009.

OPERATING INCOME (millions of yen)

RECURRING INCOME (millions of yen)

NET INCOME

20,00020,00010,00015,00012,321

270,000

Fixed assets
Fixed assets decreased ¥28,830 million, or 12.8% to ¥195,622
million, compared to the end of fiscal 2007. Property, plant andequipment decreased ¥6,027 million, or 4.2% year on year, to¥136,005 million, primary due to a reduction of new capital
investment in such things as vending machines and efforts toward
effective activation of retained assets. Investments and other assets
decreased ¥22,532 million, or 29.0%, to ¥55,166 million, due to a
drastic decline of investment securities caused by the decline of
the market value of domestic stock holdings.
Liabilities
Liabilities decreased ¥18,472 million, or 30.0% year-on-year, to¥43,174 million. This decrease was primarily attributable to therepayment of the entire amount of borrowings of us and ourconsolidated subsidiary Kinki CCBC.
Net assets
Net assets fell ¥19,503 million, or 7.7%, to ¥234,521 million,
compared to the end of the previous fiscal year, mainly due to theacquisition of treasury stock, which we carried out with an aim at
improving capital efficiency and flexible capital measures in
response to changes in the management environment.

TOTAL ASSETS

350,000(millions of yen)

300,000
315,672

300,000

7,570

NET ASSETS

250,463 254,025
277,696

250,000

234,521

13,225
11,048

10,521
10,000(millions of yen)

6,000

250,000

200,000

4,000

200,000

150,000

150,000

100,000

10,000180,000

6,900

6,500
5,000

5,000

1,900

2,000
129

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

0

Cash Flows From Operating Activities
Operating activities provided net cash of ¥16,180 million, down
¥16,819 million, or 51.0%, year-on-year.
Factors included a decrease in income before income taxes andminority interests caused by a decline in net revenue, and anincrease of advance payment pertaining to purchase of products.
Cash Flows From Investing Activities
Investing activities provided net cash of ¥2,153 million, an increaseof ¥25,459 million, year-on-year (in fiscal 2007, investing activities
used net cash of ¥23,306 million).
Revenues increased as a result of sale of marketable securities andinvestment securities holdings, to use as source for repayment ofborrowings and acquisition of treasury stock. Moreover, as a resultof investment in Minami Kyushu Coca-Cola Bottling in the previous
fiscal year, expenditures decreased in this fiscal year.
Cash Flows From Financing Activities
Financing activities used net cash of ¥31,486 million, a decreaseof ¥35,072 million, year-on-year (in fiscal 2007, investing activities
provided net cash of ¥3,586 million).
The main factor in the change included repayment of the entire
amount of borrowings of us and our consolidated subsidiary Kinki
CCBC, in our efforts for advanced depreciation of assets andacquisition of treasury stock, aiming at improving capital efficiency
and flexibility in capital measures in response to changes in the
management environment.
As a result of the above, cash and cash equivalents at end of theyear stood at ¥22,412 million, a decrease of ¥13,152 million, or
37.0%, compared to fiscal 2007.

Outlines of Capital Investments
The CCW Group carried out a total of ¥18,032 million in capital
investment centering on our primary business type segment,
Manufacturing and Marketing of Beverages & Foods, in fiscal
2008.
In the Manufacturing and Marketing of Beverages & Foods
business, we provided vending machines and other things to themarket to enhance our sales capacity (¥10,359 million). In
addition, aiming at standardization of operations and improvementof operational quality, we built an integrated core business system(total amount: ¥472 million).
In other businesses, we carried out capital investments totaling ¥56
million.
Please note that the amount of capital investment includes
intangible software assets (including software development inprogress), in addition to property, plant and equipment.

Annual Review 2008

Annual Review 200822

Current assets
Current assets decreased ¥9,146 million, or 10.0% to ¥82,074
million, compared to the end of fiscal 2007. The change wasmainly attributable to a decrease of funds which were being
employed in short-term investment, due to repayment ofborrowings and acquisition of treasury stock.

304,907
8,000

Cash FlowsThe equity ratio of the Coca-Cola West Group as of end of fiscal
2008 is 84.4%, and the entire amount of borrowings was repaid infiscal 2008; therefore, we believe the soundness of our financial
strength will continue to be secure. Compared to the end of theprevious fiscal year, total assets decreased by ¥37,976 million, or
12.0% to ¥277,696 million. Primary causes and other factors in
the increase or decrease compared to the end of previous fiscal
year for each major item in the consolidated balance sheet are as
below.

16,05615,00090,000(millions of yen)

9,375

17,493

387,200

327,821

OutlookFor fiscal 2008, we are expecting consolidated net revenues todecrease 2.1% year-on-year to ￥387,200 million. Operating
income is expected to decrease 38.2% to ￥6,500 million. The
forecast for recurring income is ￥6,900 million, down 37.5%. Net
income is projected at ￥1,900 million.

Analysis of Financial Position

FINANCIAL INFORMATIONFINANCIAL INFORMATION

Operating Results by Segment● Manufacturing and Marketing of Beverages & Foods
In terms of brand strategy, the segment continuously worked
toward strengthening its core brands—Coca-Cola, Georgia,
Sokenbicha and Aquarius. Under the Georgia brand, proactive
brand strengthening measures were carried out, as the Emerald

Mountain Blend was renewed and Emerald Mountain Blend Blackand Emerald Mountain Blend Café Au Lait were launched
additionally. As for the Aquarius brand, we introduced theno-calories Aquarius Zero, and also made efforts for sales andexpansion of market share, including sales promotion measures
making use of our advantage of being a worldwide partner of the
Beijing Olympic Games. What’s more, we introduced a new style ofcarbonated drink in the Fanta Furu-Furu Shaker, and broadly
developed the sales of carbonated beverages.
Furthermore, in order to ensure the continued growth of the
Coca-Cola business, in partnership with The Coca-Cola Company
and Coca-Cola (Japan) Co., Ltd., we pushed ahead with initiatives
such as top-level management meetings and marketing forums
and a collaborative project to improve the sales system
continuously.
As a result of these efforts, the Manufacturing and Marketing of theBeverages & Foods segment reported a 1.6% decrease in revenues
to ¥390,930 million before the elimination of intersegment
transactions. Operating income was ¥22,141 million, a decrease of
16.9%.
● Other Businesses
Major business in this segment are insurance agency, leasing, realestate, and restaurant businesses.
In order to focus business resources on the soft drink businesseven further, we sold all the shares of TAKAMASAMUNE CO., LTD.,
which is engaged in production and sales of alcoholic beverages,
and C&C Co., Ltd,. and Ange de Virge Co., Ltd., which are engaged
in restaurant and retail businesses, and closed the business of
Nichibei Co., Ltd., which was engaged in the manufacture ofprocessed foods.
As a result, the segment recorded a decrease in revenue of 61.1%
to ¥4,918 million before the elimination of intersegment
transactions. Operating income decreased 38.1% to ¥417 million.

’06

’07

’08

23

Overview of Fiscal 2008 Operating Results
Analysis of Operating Performance
Net Revenues
Consolidated net revenues decreased ¥13,965 million, or 3.4%,
year-on-year to ¥395,556 million, due to the impact of various
factors, such as the decrease in retail sales via vending machines
and increase of wholesaling to supermarkets, etc., and in addition
reduction of consolidated subsidiaries as a result of a sale ofshares of subsidiaries, although sales volumes increased slightly.
Operating Income
Operating income decreased ¥5,534 million, or 34.5%, year-on-yearto ¥10,521 million, affected by cost increases resulting from thespiraling crude oil price and other factors, and reduction of net
revenues.
Recurring Income
Recurring income decreased ¥6,444 million, or 36.8%, year-on-yearto ¥11,048 million, due to loss incidental to reorganization of
Coca-Cola National Beverage Co., Ltd.
Net Income
Net income decreased ¥9,245 million, or 98.6%, year-on-year to¥129 million, as there was the expense of making efforts toward
reorganization of the Group in order to bring about the effect ofmanagement integration, and also losses on devaluation of
investment securities booked due to the decline of market value ofdomestic share holdings.
Dividends
Taking into consideration the results from throughout the year andthe future management environment, the year-end dividend
applicable to 2008 will be ¥22 per share. As a result, the full-year
dividend, which includes the interim dividend of ¥21, comes to ¥43
per share, the same amount as the previous year. Consequently,
the payment ratio was 74.9% and dividends on net assets was
1.9%.

NET REVENUES

450,000

360,000(millions of yen)409,521 395,556※The above plan is based on performance forecast announced as of May 1, 2009.

OPERATING INCOME (millions of yen)

RECURRING INCOME (millions of yen)

NET INCOME

20,00020,00010,00015,00012,321

270,000

Fixed assets
Fixed assets decreased ¥28,830 million, or 12.8% to ¥195,622
million, compared to the end of fiscal 2007. Property, plant andequipment decreased ¥6,027 million, or 4.2% year on year, to¥136,005 million, primary due to a reduction of new capital
investment in such things as vending machines and efforts toward
effective activation of retained assets. Investments and other assets
decreased ¥22,532 million, or 29.0%, to ¥55,166 million, due to a
drastic decline of investment securities caused by the decline of
the market value of domestic stock holdings.
Liabilities
Liabilities decreased ¥18,472 million, or 30.0% year-on-year, to¥43,174 million. This decrease was primarily attributable to therepayment of the entire amount of borrowings of us and ourconsolidated subsidiary Kinki CCBC.
Net assets
Net assets fell ¥19,503 million, or 7.7%, to ¥234,521 million,
compared to the end of the previous fiscal year, mainly due to theacquisition of treasury stock, which we carried out with an aim at
improving capital efficiency and flexible capital measures in
response to changes in the management environment.

TOTAL ASSETS

350,000(millions of yen)

300,000
315,672

300,000

7,570

NET ASSETS

250,463 254,025
277,696

250,000

234,521

13,225
11,048

10,521
10,000(millions of yen)

6,000

250,000

200,000

4,000

200,000

150,000

150,000

100,000

10,000180,000

6,900

6,500
5,000

5,000

1,900

2,000
129

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

’09
(expected)

0

’06

’07

’08

0

Cash Flows From Operating Activities
Operating activities provided net cash of ¥16,180 million, down
¥16,819 million, or 51.0%, year-on-year.
Factors included a decrease in income before income taxes andminority interests caused by a decline in net revenue, and anincrease of advance payment pertaining to purchase of products.
Cash Flows From Investing Activities
Investing activities provided net cash of ¥2,153 million, an increaseof ¥25,459 million, year-on-year (in fiscal 2007, investing activities
used net cash of ¥23,306 million).
Revenues increased as a result of sale of marketable securities andinvestment securities holdings, to use as source for repayment ofborrowings and acquisition of treasury stock. Moreover, as a resultof investment in Minami Kyushu Coca-Cola Bottling in the previous
fiscal year, expenditures decreased in this fiscal year.
Cash Flows From Financing Activities
Financing activities used net cash of ¥31,486 million, a decreaseof ¥35,072 million, year-on-year (in fiscal 2007, investing activities
provided net cash of ¥3,586 million).
The main factor in the change included repayment of the entire
amount of borrowings of us and our consolidated subsidiary Kinki
CCBC, in our efforts for advanced depreciation of assets andacquisition of treasury stock, aiming at improving capital efficiency
and flexibility in capital measures in response to changes in the
management environment.
As a result of the above, cash and cash equivalents at end of theyear stood at ¥22,412 million, a decrease of ¥13,152 million, or
37.0%, compared to fiscal 2007.

Outlines of Capital Investments
The CCW Group carried out a total of ¥18,032 million in capital
investment centering on our primary business type segment,
Manufacturing and Marketing of Beverages & Foods, in fiscal
2008.
In the Manufacturing and Marketing of Beverages & Foods
business, we provided vending machines and other things to themarket to enhance our sales capacity (¥10,359 million). In
addition, aiming at standardization of operations and improvementof operational quality, we built an integrated core business system(total amount: ¥472 million).
In other businesses, we carried out capital investments totaling ¥56
million.
Please note that the amount of capital investment includes
intangible software assets (including software development inprogress), in addition to property, plant and equipment.

Annual Review 2008

Annual Review 200822

Current assets
Current assets decreased ¥9,146 million, or 10.0% to ¥82,074
million, compared to the end of fiscal 2007. The change wasmainly attributable to a decrease of funds which were being
employed in short-term investment, due to repayment ofborrowings and acquisition of treasury stock.

304,907
8,000

Cash FlowsThe equity ratio of the Coca-Cola West Group as of end of fiscal
2008 is 84.4%, and the entire amount of borrowings was repaid infiscal 2008; therefore, we believe the soundness of our financial
strength will continue to be secure. Compared to the end of theprevious fiscal year, total assets decreased by ¥37,976 million, or
12.0% to ¥277,696 million. Primary causes and other factors in
the increase or decrease compared to the end of previous fiscal
year for each major item in the consolidated balance sheet are as
below.

16,05615,00090,000(millions of yen)

9,375

17,493

387,200

327,821

OutlookFor fiscal 2008, we are expecting consolidated net revenues todecrease 2.1% year-on-year to ￥387,200 million. Operating
income is expected to decrease 38.2% to ￥6,500 million. The
forecast for recurring income is ￥6,900 million, down 37.5%. Net
income is projected at ￥1,900 million.

Analysis of Financial Position

FINANCIAL INFORMATIONFINANCIAL INFORMATION

Operating Results by Segment● Manufacturing and Marketing of Beverages & Foods
In terms of brand strategy, the segment continuously worked
toward strengthening its core brands—Coca-Cola, Georgia,
Sokenbicha and Aquarius. Under the Georgia brand, proactive
brand strengthening measures were carried out, as the Emerald

Mountain Blend was renewed and Emerald Mountain Blend Blackand Emerald Mountain Blend Café Au Lait were launched
additionally. As for the Aquarius brand, we introduced theno-calories Aquarius Zero, and also made efforts for sales andexpansion of market share, including sales promotion measures
making use of our advantage of being a worldwide partner of the
Beijing Olympic Games. What’s more, we introduced a new style ofcarbonated drink in the Fanta Furu-Furu Shaker, and broadly
developed the sales of carbonated beverages.
Furthermore, in order to ensure the continued growth of the
Coca-Cola business, in partnership with The Coca-Cola Company
and Coca-Cola (Japan) Co., Ltd., we pushed ahead with initiatives
such as top-level management meetings and marketing forums
and a collaborative project to improve the sales system
continuously.
As a result of these efforts, the Manufacturing and Marketing of theBeverages & Foods segment reported a 1.6% decrease in revenues
to ¥390,930 million before the elimination of intersegment
transactions. Operating income was ¥22,141 million, a decrease of
16.9%.
● Other Businesses
Major business in this segment are insurance agency, leasing, realestate, and restaurant businesses.
In order to focus business resources on the soft drink businesseven further, we sold all the shares of TAKAMASAMUNE CO., LTD.,
which is engaged in production and sales of alcoholic beverages,
and C&C Co., Ltd,. and Ange de Virge Co., Ltd., which are engaged
in restaurant and retail businesses, and closed the business of
Nichibei Co., Ltd., which was engaged in the manufacture ofprocessed foods.
As a result, the segment recorded a decrease in revenue of 61.1%
to ¥4,918 million before the elimination of intersegment
transactions. Operating income decreased 38.1% to ¥417 million.

’06

’07

’08

23

Consolidated Balance Sheets(As of December 31, 2006, 2007 and 2008)

2006

2007

(Millions of yen)(Thousands of U.S. dollars)*1

2008

2008

ASSETS¥ 16,311¥ 19,567¥ 18,592$ 206,577

Trade notes and accounts receivable

22,28023,064

21,527239,188

Marketable securities

10,66819,407

4,559

50,655Inventories

11,778

11,721

12,638140,422

Deferred tax assets

2,200

2,143

2,664

29,600

Other current assets

15,031

15,42022,208

246,755

(97)

(103)

(116)

(1,288)78,17391,22082,074

911,933

Allowance for doubtful accounts
Total current assets

Fixed assets:
Property, plant and equipment:
Buildings and structures

35,61735,19233,271

369,677

Machinery, equipment and vehicles

20,134

20,181

17,553

195,033

Sales equipment

30,85727,28526,099289,988Land

57,36656,70956,082

623,133

56

672

1,097

12,188Other property, plant and equipment

2,211

1,992

1,900

21,111

Total property, plant and equipment

146,243

142,033

136,005

1,511,166

Construction in progress

Intangible assets(Thousands of U.S. dollars)*1

2008

2007

2008

Current liabilities:
Trade notes and accounts payable
Short-term debt
Current portion of long-term debt
Accrued income taxes
Other accounts payable
Notes payable for equipment
Other current liabilities
Total current liabilities¥ 3,828
–
2,300
2,674
13,866702
7,059
30,431¥ 5,222
10,5002,000
3,270
13,63887
7,380
42,099¥ 3,765––
2,769
13,97788
5,164
25,767Long-term liabilities:
Long-term debt
Deferred tax liabilities
Allowance for employees’ retirement benefits
Liabilities for directors’ and corporate auditors’ retirement benefits
Negative goodwill
Other long-term liabilities
Total long-term liabilities
Total liabilities

2,000
11,122
4,770
249
1,867
4,002
24,01254,444

–
9,040
5,180
65
1,452
3,809
19,54861,647

–
7,446
5,394
7
1,037
3,522
17,40743,174–82,73359,93377
11,522
39,133
193,411479,711

15,231109,072
135,623(11,229)
248,697

15,231109,074
140,432(11,271)
253,467

15,231109,073
136,067(25,756)
234,616

169,233
1,211,922
1,511,855(286,177)
2,606,844

1,604
106
1,710

488
4
492

(165)
–
(165)

(1,833)–(1,833)$

41,833––30,766
155,300
977
57,377286,300

NET ASSETS
Shareholders’ equity:
Common stock
Additional paid-in capital
Retained earnings
Treasury stock (at cost)
Total shareholders’ equity

4,719

4,449

49,433

Investment securities

53,27755,79432,136

357,066

Deferred tax assets

4,703

3,596

3,465

38,500

Advanced payments for retirement expenses

10,406

12,732

13,307

147,855

Other assets

6,967

6,147

6,779

75,322

Allowance for doubtful accounts

(594)

(572)

(522)

(5,800)Total investments and other assets

74,76077,69855,166

612,955

Minority interests

54

64

71

788

Total fixed assets

226,734

224,452

195,6222,173,577

Total net assets

250,463

254,025

234,5212,605,788

Total assets¥304,907¥315,672¥277,696$3,085,511

Total liabilities and net assets¥304,907¥315,672¥277,696$3,085,511*1 U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥90.00=US$1.00 (figures less than one unit are rounded).

Valuation and translation adjustments:
Net unrealized gains on other marketable securities
Gain on deferred hedges
Total valuation and translation adjustments

FINANCIAL INFORMATION

5,730

Investments and other assets:

FINANCIAL INFORMATION

2006

LIABILITIESCurrent assets:
Cash and deposits(Millions of yen)

*1 U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥90.00=US$1.00 (figures less than one unit are rounded).

Annual Review 2008

Annual Review 2008

24

25

Consolidated Balance Sheets(As of December 31, 2006, 2007 and 2008)

2006

2007

(Millions of yen)(Thousands of U.S. dollars)*1

2008

2008

ASSETS¥ 16,311¥ 19,567¥ 18,592$ 206,577

Trade notes and accounts receivable

22,28023,064

21,527239,188

Marketable securities

10,66819,407

4,559

50,655Inventories

11,778

11,721

12,638140,422

Deferred tax assets

2,200

2,143

2,664

29,600

Other current assets

15,031

15,42022,208

246,755

(97)

(103)

(116)

(1,288)78,17391,22082,074

911,933

Allowance for doubtful accounts
Total current assets

Fixed assets:
Property, plant and equipment:
Buildings and structures

35,61735,19233,271

369,677

Machinery, equipment and vehicles

20,134

20,181

17,553

195,033

Sales equipment

30,85727,28526,099289,988Land

57,36656,70956,082

623,133

56

672

1,097

12,188Other property, plant and equipment

2,211

1,992

1,900

21,111

Total property, plant and equipment

146,243

142,033

136,005

1,511,166

Construction in progress

Intangible assets(Thousands of U.S. dollars)*1

2008

2007

2008

Current liabilities:
Trade notes and accounts payable
Short-term debt
Current portion of long-term debt
Accrued income taxes
Other accounts payable
Notes payable for equipment
Other current liabilities
Total current liabilities¥ 3,828
–
2,300
2,674
13,866702
7,059
30,431¥ 5,222
10,5002,000
3,270
13,63887
7,380
42,099¥ 3,765––
2,769
13,97788
5,164
25,767Long-term liabilities:
Long-term debt
Deferred tax liabilities
Allowance for employees’ retirement benefits
Liabilities for directors’ and corporate auditors’ retirement benefits
Negative goodwill
Other long-term liabilities
Total long-term liabilities
Total liabilities

2,000
11,122
4,770
249
1,867
4,002
24,01254,444

–
9,040
5,180
65
1,452
3,809
19,54861,647

–
7,446
5,394
7
1,037
3,522
17,40743,174–82,73359,93377
11,522
39,133
193,411479,711

15,231109,072
135,623(11,229)
248,697

15,231109,074
140,432(11,271)
253,467

15,231109,073
136,067(25,756)
234,616

169,233
1,211,922
1,511,855(286,177)
2,606,844

1,604
106
1,710

488
4
492

(165)
–
(165)

(1,833)–(1,833)$

41,833––30,766
155,300
977
57,377286,300

NET ASSETS
Shareholders’ equity:
Common stock
Additional paid-in capital
Retained earnings
Treasury stock (at cost)
Total shareholders’ equity

4,719

4,449

49,433

Investment securities

53,27755,79432,136

357,066

Deferred tax assets

4,703

3,596

3,465

38,500

Advanced payments for retirement expenses

10,406

12,732

13,307

147,855

Other assets

6,967

6,147

6,779

75,322

Allowance for doubtful accounts

(594)

(572)

(522)

(5,800)Total investments and other assets

74,76077,69855,166

612,955

Minority interests

54

64

71

788

Total fixed assets

226,734

224,452

195,6222,173,577

Total net assets

250,463

254,025

234,5212,605,788

Total assets¥304,907¥315,672¥277,696$3,085,511

Total liabilities and net assets¥304,907¥315,672¥277,696$3,085,511*1 U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥90.00=US$1.00 (figures less than one unit are rounded).

Valuation and translation adjustments:
Net unrealized gains on other marketable securities
Gain on deferred hedges
Total valuation and translation adjustments

FINANCIAL INFORMATION

5,730

Investments and other assets:

FINANCIAL INFORMATION

2006

LIABILITIESCurrent assets:
Cash and deposits(Millions of yen)

*1 U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥90.00=US$1.00 (figures less than one unit are rounded).

Annual Review 2008

Annual Review 2008

24

25

Consolidated Statements of Income(Years ended December 31, 2006, 2007 and 2008)

FINANCIAL INFORMATION
Annual Review 2008

26

(Millions of yen)(Thousands of U.S. dollars)*1

2006

2007

2008

2008

Net revenues
Cost of goods sold
Gross profit¥327,821
186,265
141,556¥409,521
234,313
175,208¥395,556
231,624
163,931$4,395,066
2,573,600
1,821,455

Selling, general and administrative expenses
Operating income

129,235
12,321

159,151
16,056

153,409
10,521

1,704,544
116,900

Non-operating income
Interest income
Dividends
Amortization of negative goodwill
Equity in earnings of affiliates
Property rental income
Other non-operating income
Non-operating expenses
Interest expenses
Equity in loss of affiliates
Loss on disposal of property, plant and equipment
Property rental costs
Other non-operating expenses
Recurring income

1,836
399
248
256
–
110
822
932
38
18
593
38
242
13,225

2,433
427
269
414
602
149
569
996
114
–
586
56
238
17,493

1,531
207
282
414
–
122
504
1,004
34
215
408
44
301
11,04817,011
2,300
3,133
4,600
–
1,355
5,600
11,155
377
2,388
4,533
488
3,344
122,755

Extraordinary income
Gain on sales of property, plant and equipment
Gain on sales of investment securities
Gain on sales of shares of subsidiaries
Gain on sales of shares of affiliates
Proceeds from government assistance grants
Extraordinary losses
Loss on sales of property, plant and equipment
Impairment loss
Loss from typhoon damage
Loss on disposals of property, plant and equipment
Compensation for retirement of fixed assets
Loss on sales of investment securities
Loss on sales of shares of subsidiaries
Write-down of investment securities
Write-down of golf club memberships
Expense related to integration of operational management
Group restructuring expenses
Expense for earthquake precautions
Expense for provision for sales equipment installation
Quality problem countermeasure losses
Income before income taxes, minority interests and other adjustments
Income taxes
Income tax deferred
Minority interests

1,569
954
586
–
–
28
1,686
95
–
48
–
120
60
–
19
–
1,131
–
74
–
137
13,108
3,237
2,389
(89)

671
277
57
–
–
336
3,910
–
282
–
–
289
–
–
2,252
57
–
279
555
–
193
14,254
5,034
(167)
12

732
241
262
196
1
31
9,379
237
–
–
703
140
97
335
4,509
–
–
1,385
–
1,968
–
2,402
3,887
(1,627)
12

8,133
2,677
2,911
2,177
11
344
104,211
2,633
–
–
7,811
1,555
1,077
3,722
50,100––15,388–21,866–
26,68843,188(18,077)
133

Net income¥ 7,570¥

9,375*1 U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥90.00=US$1.00 (figures less than one unit are rounded).

¥

129

$

1,433

Consolidated Statements of Changes in Shareholders’ Equity(Millions of yen)
Shareholders’ equity

Fiscal Year ended December 31, 2007
(from January 1, 2007 to December 31, 2007)

Valuation and translation adjustments
Total
net assets

Minority
interests

Net unrealized
gains on othermarketablesecurities

Gain (loss)
on deferredhedgesTotal valuationand translation
adjustments¥248,697¥1,604¥106¥1,710¥ 54¥250,463–(4,566)

–

–

–

–

(4,566)

Total
Treasury stock
shareholders’(at cost)
equityCommonstock

CapitalsurplusRetainedearnings¥15,231¥109,072¥135,623 (¥ 11,229)

Distribution of dividends––(4,566)

Net income

–

–

9,375

–

9,375

–

–

–

–

9,375

Acquisition of treasury stock

–

–

–

(56)

(56)

–

–

–

–

(56)

Cancellation of treasury stock

–

2

–

14

16

–

–

–

–

16

shareholders’ equity during the fiscal year

–

–

–

–

–

(1,115)(102)(1,218)9(1,208)

Total changes during the fiscal year

–

2

4,809

(41)

4,769

(1,115)(102)(1,218)9

3,561

Balance as of December 31, 2007

¥15,231¥109,074¥140,432 (¥ 11,271)¥253,467

¥ 488

¥ 4

¥ 492

¥ 64

¥254,025

Balance as of December 31, 2006
Changes during the consolidated fiscal year

Net changes in items other than(Millions of yen)
Shareholders’ equity

Fiscal Year ended December 31, 2008
(from January 1, 2008 to December 31, 2008)

Balance as of December 31, 2007

Valuation and translation adjustments

Commonstock

CapitalsurplusRetainedearnings¥15,231¥109,074¥140,432 (¥ 11,271)––(4,494)Total
net assets

Minority
interests

Net unrealized
gains on othermarketablesecurities

Gain (loss)
on deferredhedgesTotal valuationand translation
adjustments¥253,467

¥ 488

¥4

¥ 492

¥ 64

¥254,025(4,494)

–

–

–

–

(4,494)

Total
Treasury stock
shareholders’(at cost)
equityChanges during the consolidated fiscal year
Distribution of dividends–

Net income

–

–

129

–

129

–

–

–

–

129

Acquisition of treasury stock

–

–

–

(14,510)(14,510)

–

–

–

–

(14,510)Cancellation of treasury stock
Net changes in items other than

–

(0)

–

25

24

–

–

–

–

24

shareholders’ equity during the fiscal year

–

–

–

–

–

(654)

(4)

(658)

6

(652)

Total changes during the fiscal year–

(0)(4,365)(14,485)(18,851)

(654)

(4)

(658)

6

(19,503)

Balance as of December 31, 2008

¥15,231¥109,073¥136,067 (¥ 25,756)¥234,616(¥ 165)–(¥ 165)¥ 71¥234,521(Thousands of U.S. dollars)*1

Balance as of December 31, 2007

Valuation and translation adjustments
Total
Treasury stock
shareholders’(at cost)
equityNet unrealized
gains on othermarketablesecurities

Gain (loss)
on deferredhedgesTotal valuationand translation
adjustments＄169,233 ＄1,211,933 ＄1,560,355 (＄125,233) ＄2,816,300＄ 5,422＄44＄ 5,466

Commonstock

CapitalsurplusRetainedearnings

Total
net assets

Minority
interests＄711 ＄2,822,500

FINANCIAL INFORMATION

Shareholders’ equity

Fiscal Year ended December 31, 2008
(from January 1, 2008 to December 31, 2008)

Changes during the consolidated fiscal year––

(49,933)–(49,933)

–

–

–

–

(49,933)

–

–

1,433

–

1,433

–

–

–

–

1,433

Acquisition of treasury stock

–

–

–

(161,222)(161,222)

–

–

–

–

(161,222)

Cancellation of treasury stock

–

(0)

–

277

266

–

–

–

–

266

Net changes in items other thanshareholders’ equity during the fiscal year

–

–

–

–

–

(7,266)(44)(7,311)

66(7,244)

Total changes during the fiscal year–(0)

(48,500) (160,944) (209,455)(7,266)(44)(7,311)66 (216,700)– (＄ 1,833)＄788 ＄2,605,788

Balance as of December 31, 2008

＄169,233 ＄1,211,922 ＄1,511,855 (＄ 286,177) ＄2,606,844 (＄ 1,833)*1 U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥90.00=US$1.00 (figures less than one unit are rounded).

Annual Review 2008

Distribution of dividends
Net income27Consolidated Statements of Cash Flows

Trends in Principal Consolidated Financial Data

(Years ended December 31, 2006, 2007 and 2008)

Cash flows from operating activities:
Income before income taxes, minority interests and other adjustments
Depreciation and amortization
Impairment gains
Amortization of negative goodwill
Decrease in liabilities for directors’ and corporate auditors’ retirement benefits
Increase in liabilities for retirement benefits
Increase in advanced payments for retirement expenses
Interest and dividend income
Interest expense
Equity in earnings (losses) of affiliates
Loss on sales of marketable and investment securities
Loss on sales of shares of subsidiaries
Loss on sales of shares of affiliates
Write-down of marketable and investment securities
Loss on sales of fixed assets
Loss on disposals of fixed assets
Increase (decrease) in accounts receivable
Decrease (increase) in inventories
Increase (decrease) in other assets
Increase (decrease) in accounts payable
Decrease (increase) in other liabilities
Payment of directors’ bonuses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

2008

2008

13,10819,571
−
(256)
(115)
104
(3,660)(647)
38
18( 577)
−
−
19
(850)
448
827
193
(1,711)(3,027)
949
(46)
(234)
24,153638(37)(2,949)21,806

14,254
22,533
282
(414)
(181)
410
(2,326)
(696)
114
(602)
(52)
−
−
2,252
(265)
564
(828)
56
1,196
1,407
(553)
−
145
37,297738(115)(4,920)33,0002,402
21,741
−
(414)
(54)
271
(575)
(489)
34
215
(175)
139
(1)
4,509
2
820
494
(1,543)(4,549)
(932)
390
−
286
22,572543(34)(6,900)16,18026,688
241,566−(4,600)(600)
3,011(6,388)(5,433)377
2,388(1,944)
1,544(11)
50,100
22
9,111
5,488
(17,144)(50,544)(10,355)
4,333
−
3,177
250,800
6,033(377)(76,666)
179,777(2,876)
8,420(23,327)
3,392
(652)
−
−
−
63
−
−
(20)
30
14
(14,956)

(53)
6,239
(20,238)
1,947−−(11,016)
−
−
(202)
17
(40)
38
2
(23,306)(1,390)22,661(19,920)
1,435
(808)
872
−
2
−
(704)
12
(20)
40
(27)
2,153

(15,444)251,788(221,333)
15,944(8,977)
9,688
−
22
−
(7,822)
133
(222)
444
(300)
23,922(3,410)(2,223)(73)
345(3,867)(15)(9,244)(2,394)
20,2384,440
22,284

10,495(2,300)(56)
16(4,566)(2)
3,586
13,28022,284−35,564(10,500)( 2,000)(14,510)24(4,494)(5)(31,486)(13,152)
35,564−
22,412(116,666)(22,222)(161,222)
266(49,933)(55)(349,844)(146,133)
395,155−
249,022*1 U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥90.00=US$1.00 (figures less than one unit are rounded).

2004

2005

2006

2007

2008

Net revenues (Millions of yen)
Growth in revenues (%)

253,2485.2

245,874(2.9)

327,82133.3

409,52124.9

395,556(3.4)

Operating income (Millions of yen)
Operating income/Net revenues (%)

16,860
6.7

11,830
4.8

12,321
3.8

16,056
3.9

10,521
2.7

Recurring income (Millions of yen)
Recurring income margin (%)

17,065
6.7

12,256
5.0

13,225
4.0

17,493
4.3

11,0482.8

Income before income taxes, minority interests and other adjustments (Millions of yen)
Operating income/Income before income taxes, minority interests and other adjustments (%)

14,6595.8

12,201
5.0

13,1084.0

14,254
3.5

2,402
0.6

Net income (Millions of yen)
Return on sales (%)

8,564
3.4

7,305
3.0

7,570
2.3

9,375
2.3

129
0.0

Net income per share (yen)108.80

93.42

82.22

88.29

1.25

Diluted net income per share (yen)108.62

93.27

−

−

−

Return on equity (ROE) (%)

5.2

4.3

3.6

3.7

0.1

Return on assets (ROA) (%)

8.3

5.9

5.1

5.6

3.7

Total assets (Millions of yen)

207,216

208,711

304,907

315,672

277,696

Net assets (Millions of yen)

167,036

173,608

250,463

254,025

234,521

80.6

83.2

82.1

80.5

84.4

2,149.99
1.2

2,228.79
1.2

2,358.05
1.2

2,391.83
1.0

2,345.03
0.8

24.2

29.5

33.5

28.0

1,549.5

Cash flows from operating activities (Millions of yen)

21,502

16,60721,80633,00016,180Cash flows from investing activities (Millions of yen)

(14,592)(15,256)(14,956)(23,306)

2,153

Cash flows from financing activities (Millions of yen)

(6,991)(2,901)( 9,244)3,586(31,486)

Cash and cash equivalents at end of year (Millions of yen)

21,78820,23822,28435,564

22,412

Payout ratio (consolidated) (%)

36.8

42.8

51.1

48.7

3,440.0

Dividend per share (yen)

40.00

40.00

42.00

43.00

43.00

Year-end share price (yen)

2,630

2,755

2,755

2,475

1,945

Capital expenditures (Millions of yen)

15,611

16,19922,02019,951

18,032

Depreciation and amortization (Millions of yen)

14,927

13,86019,571

22,533

21,741Equity ratio (%)*1
Net assets per share*2 (yen)Price book-value ratio (PBR)*3 (times)
Price earnings ratio (PER)*4 (times)

1 Until fiscal 2005, Shareholders' equity ratio=Shareholders' equity ÷ Total assets; from fiscal 2006, Equity ratio = Total equity ÷ Total assets*2 Until fiscal 2005, Shareholders' equity per share = Shareholders' equity ÷ The number of shares outstanding at the end of the period; from fiscal 2006, Net assets per share = Net assets ÷
The number of shares outstanding at the end of the period*3 Until fiscal 2005, Price book-value ratio (PBR) = Market value at the end of the period ÷ Shareholders' equity per share; from fiscal 2006, Price book-value ratio (PBR) = Market value at theend of the period ÷ Net assets per share*4 Price earnings ratio (PER) = Market value at the end of the period ÷ Net income per share

Annual Review 2008

Annual Review 2008

(Thousands of U.S. dollars)*1

2007

FINANCIAL INFORMATIONFINANCIAL INFORMATION

28

Cash flows from investing activities:
Acquisition of marketable and investment securities
Proceeds from sales of marketable and investment securities
Acquisition of fixed assets
Proceeds from sales of fixed assets
Acquisition of shares of subsidiaries
Proceeds from sales of shares of subsidiaries with change in scope of consolidation
Acquisition of shares of affiliates
Proceeds from sales of shares of affiliates
Proceeds from collection of loans to affiliates
Long-term loans
Proceeds from collection of long-term loans
Increase in time deposits
Proceeds from refund of time deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities:
Increase (decrease) in short-term borrowings
Repayment of long-term debt
Payments for acquisition of treasury stock
Proceeds from sales of treasury stock
Dividends paid
Dividends paid to minority interests
Net cash used in (provided by) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of year
Increase in cash and cash equivalents due to change in scope of consolidation
Cash and cash equivalents at end of year

(Millions of yen)

2006

29

Trends in Principal Consolidated Financial Data

2005

2006

2007

2008

Net revenues (Millions of yen)
Growth in revenues (%)

253,2485.2

245,874(2.9)

327,82133.3

409,52124.9

395,556(3.4)

Operating income (Millions of yen)
Operating income/Net revenues (%)

16,860
6.7

11,830
4.8

12,321
3.8

16,056
3.9

10,521
2.7

Recurring income (Millions of yen)
Recurring income margin (%)

17,065
6.7

12,256
5.0

13,225
4.0

17,493
4.3

11,0482.8

Income before income taxes, minority interests and other adjustments (Millions of yen)
Operating income/Income before income taxes, minority interests and other adjustments (%)

14,6595.8

12,201
5.0

13,1084.0

14,254
3.5

2,402
0.6

Net income (Millions of yen)
Return on sales (%)

8,564
3.4

7,305
3.0

7,570
2.3

9,375
2.3

129
0.0

Net income per share (yen)108.80

93.42

82.22

88.29

1.25

Diluted net income per share (yen)108.62

93.27

−

−

−

Return on equity (ROE) (%)

5.2

4.3

3.6

3.7

0.1

Return on assets (ROA) (%)

8.3

5.9

5.1

5.6

3.7

Total assets (Millions of yen)

207,216

208,711

304,907

315,672

277,696

Net assets (Millions of yen)

167,036

173,608

250,463

254,025

234,521

80.6

83.2

82.1

80.5

84.4

2,149.99
1.2

2,228.79
1.2

2,358.05
1.2

2,391.83
1.0

2,345.03
0.8

24.2

29.5

33.5

28.0

1,549.5

Cash flows from operating activities (Millions of yen)

21,502

16,60721,80633,00016,180Cash flows from investing activities (Millions of yen)

(14,592)(15,256)(14,956)(23,306)

2,153

Cash flows from financing activities (Millions of yen)

(6,991)(2,901)( 9,244)3,586(31,486)

Cash and cash equivalents at end of year (Millions of yen)

21,78820,23822,28435,564

22,412

Payout ratio (consolidated) (%)

36.8

42.8

51.1

48.7

3,440.0

Dividend per share (yen)

40.00

40.00

42.00

43.00

43.00

Year-end share price (yen)

2,630

2,755

2,755

2,475

1,945

Capital expenditures (Millions of yen)

15,611

16,19922,02019,951

18,032

Depreciation and amortization (Millions of yen)

14,927

13,86019,571

22,533

21,741Equity ratio (%)*1
Net assets per share*2 (yen)Price book-value ratio (PBR)*3 (times)
Price earnings ratio (PER)*4 (times)

1 Until fiscal 2005, Shareholders' equity ratio=Shareholders' equity ÷ Total assets; from fiscal 2006, Equity ratio = Total equity ÷ Total assets*2 Until fiscal 2005, Shareholders' equity per share = Shareholders' equity ÷ The number of shares outstanding at the end of the period; from fiscal 2006, Net assets per share = Net assets ÷
The number of shares outstanding at the end of the period*3 Until fiscal 2005, Price book-value ratio (PBR) = Market value at the end of the period ÷ Shareholders' equity per share; from fiscal 2006, Price book-value ratio (PBR) = Market value at theend of the period ÷ Net assets per share*4 Price earnings ratio (PER) = Market value at the end of the period ÷ Net income per share

FINANCIAL INFORMATION

2004

Annual Review 2008

29

Risk Information

Business results and other aspects of the Company’s operations
mentioned in this annual review are subject to a variety of risks.
Those risks deemed most likely to have a significant impact on
potential investment decisions are found below. The Coca-Cola
West Group (CCWG) is fully aware of the possibility of these risks
and thus works to avoid them or deal effectively with them should
they arise.
Statements herein regarding future events or assumptions reflect
the judgment of CCWG as of the filing date of Annual Security
Report.

(1) Business agreements with The Coca-Cola Companyof the United States and Coca-Cola (Japan) Co., Ltd.
CCW conducts business activities based on a bottler agreementwith The Coca-Cola Company and Coca-Cola (Japan) Co., Ltd.

(2) Quality assurance
Beverages are the core product of CCWG. The Group makes every
effort to raise employee awareness regarding quality andimplements programs aimed at preventing incidents concerning
quality in order to offer its customers (consumers) high-quality andreliable beverages.
Nevertheless, in the event of an incident related to product quality,
the Company’s brand image could be tarnished, irrespective ofwhether or not CCWG was actually at fault. An incident of thisnature could adversely affect the operating results of CCWG.

(4) Impact of economic conditions
1) Trends in personal consumption
Sales of beverages, CCWG’s core products, are closely linked totrends in personal consumption. A sudden decline in personal
consumption due to worsened economic conditions, however,
could adversely affect the operating results of CCWG.
2) Fluctuations in asset value
Fluctuations in the value of land, marketable securities and otherassets owned by CCWG could potentially impact the Group’s
operating results and financial position. Marketable securities witha fair value, for example, are subject to changes in fair market
value in capital markets because that is how they are valued.

(5) Public regulations
CCWG’s Manufacturing and Marketing of Beverages & Foods
segment is subject to a number of regulations in Japan, including
the Act Against Unjustifiable Premiums and Misleading
Representations (Premiums and Representations Act) and the
Food Sanitation Law. The Group fully complies with these and allother regulations in its commitment to providing safe and reliable
products.
Accordingly, tougher regulations, for example, might incur newcompliance costs, which could potentiallyaffect the operating results of CCWG.

(6) Management of personal information(3) The soft drink industry
OTHER INFORMATION
Annual Review 200830

1) Market competitiveness
Sales of beverages, CCWG’s core products, are readily influenced
by changes in customer (consumer) preference.
In a beverage market of this kind, CCWG strives to continuously
offer appealing products and services. Nevertheless, failure to
amply forecast market changes could potentially affect theoperating results of CCWG.
2) Impact of weather-related factors
Weather conditions tend to have an effect on the sales ofbeverages, CCWG’s core products. Cool summers or warm
winters, for example, often have a significant impact on customer(consumer) demand. Although CCWG makes every effort tominimize the influence of weather-related factors on sales, theGroup offers no guarantee that it can completely eliminate theeffect of such factors.

CCWG holds large volumes of personal information. In handling
this information, the Group works on a unified basis to formulate
and adhere to related guidelines and implement ongoing training
and educational activities.
However, an external leak of personal information could lead to a
deterioration of trust in CCWG and potentially impact the operating
results of CCWG.

(7) Impact of disasters
CCWG has a system in place to minimize the effects of power
outages, as well as other scenarios for which assumptions must
be made, on its business operations. Typhoons, earthquakes andother natural disasters, however, could trigger conditions thatexceed these assumptions. Conditions of this magnitude could
potentially impact the operating results and financial position of
CCWG.

Corporate Governance

CCW’s fundamental stance on corporate governance is to maximize“shareholders value” by improving management efficiency andtransparency.

(1) Corporate Governance System

The Company’s articles of incorporation stipulate that special
resolutions of a general meeting of shareholders, provided for in
Article 309, Paragraph 2 of the Company Law, shall be adopted byan affirmative vote of at least two-thirds of votes, where shareholders holding not less than one-third of the voting rights of shareholders that can exercise voting rights are in attendance.
This is to ensure the smooth running of general meetings ofshareholders by enabling a quorum to pass special resolutions.
● Overview of Committees
In July 2006, the Company established the Management Advisory
Committee as an internal body of the Board of Directors. This
committee allows appropriate advice to be given by experts with thegoals of improving the efficiency and transparency of management
and increasing shareholder value. The committee is responsible foradvising on matters concerning candidates for director andcorporate auditor positions and directors’ and corporate auditors’
remuneration as well as important strategic and other mattersrelated to the general management of the Group.
● Support for Outside Appointments
Outside directors are supported by the General Affairs Department,
while outside corporate auditors are supported by the Audit Office.
● Business Execution and Management Oversight
Outside appointments comprise more than half the members of theBoard of Corporate Auditors. This gives CCW the capacity to
sufficiently monitor the performance of duties by directors and also
allows it to draw on independent third-party advice from external
experts appointed as outside directors. Directors and corporate
auditors also fully monitor how corporate officers execute business
operations. This includes participating in meetings of the executive
committee, which is made up of corporate officers, as well as otherkey company meetings. When questions arise during the course ofbusiness execution, CCW consults attorneys, CPAs and otherspecialists for advice on determining the best way to proceed.
2) Risk Management System
CCW has established the Coca-Cola West Group Risk Management
Committee. The objective of this body is to minimize damage in theevent of a crisis by preventing confusion within the Group andensuring a rapid and appropriate response. The Group believes thatcompliance with all applicable laws and regulations, and the spirit inwhich they are written, is fundamental to its business activities, asis the proper observance of social norms and customary businesspractices. This belief is enshrined in a code of conduct created toencourage a compliance mindset among all Group corporate
officers and employees.

OTHER INFORMATION

3) Audit System● Participating Personnel and Organizations

CCW aims to comply with corporate rules and regulations, carry out
appropriate corporate activities and operational management, andprotect its assets. To help it achieve these goals, CCW has
established an Audit Office within the Internal Audit Department.
The office has 13 members and reports directly to the CEO.

Annual Review 2008

1) Status of Related Internal Bodies● Corporate Auditor System or Company With Committees
System
CCW adopted the Corporate Auditor system in accordance with its
decision to separate decision-making and management oversightfrom business execution through a restructuring of the Board of
Directors and the adoption of the corporate executive officer system
in March 1999. In April 2007, the corporate executive officer
system was extended across the Group in the interests of increasing
the efficiency of Group management and speeding up decisionmaking.
Furthermore, in March 2006, in order to clarify the roles andresponsibilities of directors in each fiscal year and to establish amanagement structure capable of rapid responses to changes inbusiness conditions, the Group shortened the term of office of
directors from two years to one year.
● Number of Directors
The Company’s articles of incorporation stipulate that there shall bea maximum of 15 directors.
● Requirements for Electing Directors
The Company’s articles of incorporation stipulate that election of
directors shall be by a majority of votes, where shareholders holding
at least one-third of the voting rights of shareholders that can
exercise voting rights are in attendance. Resolution for election of
directors shall not be made by cumulative voting.
● Outside Directors and Corporate Auditors
At present, two of CCW’s ten directors and three of its five corporate
auditors are from outside the Group.
The Company has concluded with one outside director and threeoutside corporate auditors agreements limiting liability in case ofneglect of duty, based on the provisions of Article 427, Paragraph 1of the Company Law. Under these agreements, liability is limited tothe minimum amount permissible under the law.
● Acquisition of Treasury Stocks
The Company’s articles of incorporation stipulate that the Company
may, by a resolution of the Board of Directors and without seeking
shareholder approval, buy back its own shares on the market,
pursuant to the provisions of Article 165, Paragraph 2 of theCompany Law. The Board of Directors has been authorized torepurchase Company shares with the aim of allowing them to
execute a flexible capital structure policy according to changes inthe business environment and in the interest of raising capitalefficiency.
● Determination of Interim Dividends
The Company’s articles of incorporation stipulate that the Company
may, by a resolution of the Board of Directors and without seeking
shareholder approval, determine interim dividends, as prescribed by
Article 454, Paragraph 5 of the Company Law. The Board of
Directors has been authorized to determine interim dividends sothat profits can be returned to shareholders when consideredappropriate.

● Special Resolutions of the General Meeting of Shareholders

31

RISK INFORMATION

Corporate auditors attend meetings of the Board of Directors,
executive committee and other important Company meetings. They
also meet a representative director on a regular basis and examine
the results of audits performed by the Audit Office. Using these andother methods, corporate auditors monitor the executive actions of
directors and executive officers in accordance with relevant laws
and regulations, the Company’s own articles of incorporation andinternal auditing standards.
The Audit Office carries out prior discussions with corporate
auditors concerning its auditing policy and plans for each fiscal
year. Corporate auditors also receive reports about the results ofaudits of the Audit Office as needed. In addition, at the start of the
fiscal year, the Company’s independent auditor provides thecorporate auditors with an explanation of its audit plans, and asneeded, supplies information and reports to the auditors during andat the end of the audit process.
● Independent Auditor and Related Personnel

CCW has appointed KPMG AZSA & Co. as its independent auditor.
The names of the firm’s certified public accountants (engagement
and management partners) that audit the Company’s financial
statements are listed as follows.
Name
Tetsuzo Hamashima
Masafumi Tanabe
Junichi Adachi

Auditing Experience
4 years
2 years
1 year

The auditing team has twenty-seven additional members including
four CPAs and one assistant CPA.

COCA-COLA WEST GROUP CRISIS HANDLING SYSTEM

COCA-COLA WEST GROUP RISK MANAGEMENT COMMITTEERISK MANAGEMENT COMMITTEE FOR EACH FUNCTION
Manufacturing,
Sales
Financial
Logistics,
SCM
Planning
Risk
Affairs
Equipment
Risk
Risk
Management
Risk
Risk
Management
Management
Committee
Management
Management
Committee
Committee
Committee
Committee

INITIAL ASSESSMENT TEAM

COCA-COLA WEST GROUP COMPANIES AND DIVISIONS

Individuals Total Remuneration
10¥153 million(3)(¥14 million)
6¥53 million(5)(¥28 million)
16¥207 million(8)(¥42 million)

Directors(Notes) 1. In addition to the above, the 4 directors of the Company who are not outside
directors, received ¥73 million in remuneration from subsidiaries where they
serve concurrently as directors or corporate auditors.
2. Maximum monthly remuneration for directors was set at ¥25 million by aresolution of the general meeting of shareholders on March 22, 1991.

Representative Director

Representative Director

Representative Director

Director

Director

Norio Sueyoshi

Tamio Yoshimatsu

Hijiri Morita

Nobuo Shibata

Shigeki Ota

President & CEO

Executive Vice President& Chief Marketing Officer

Executive Vice President& Chief Planning Officer

Executive Vice President& Chief General Affairs Officer

Executive Corporate Officer
Chief Financial Officer

Director

Director

Director

Director

Director

Hiroyoshi Miyaki

Jiro Wakasa

Masamitsu Sakurai

Michael Coombs

Koukichi Hombou

Executive Corporate Officer
General Manager ofChain Store Sales Dept.

Executive Corporate Officer
Chief SCM Officer

Representative Director& Chairman, Ricoh
Company, Ltd.

Representative Director& Vice President, Coca-Cola(Japan) Company, Limited

Representative Director& Chairman, Minami Kyushu
Coca-Cola Bottling Co., Ltd.

3. Maximum monthly remuneration for corporate auditors was set at ¥7 million
by a resolution of the general meeting of shareholders on March 25, 1994.
4. By a resolution of the general meeting of shareholders on March 24, 2009,
there was a change in the maximum remuneration for directors, which was
set at ¥500 million yearly (of the amount, maximum remuneration for outside
directors was set at ¥50 million yearly), and in the maximum remuneration forcorporate auditors, which was set at ¥100 million yearly.
5. Abovementioned amount includes the amount of remuneration for the two
directors (one is outside director) who retired from office as of conclusion of
the general meeting of shareholders on March 25, 2008, and for one outside
corporate auditor who was deceased on January 2, 2008.
6. The retirement benefits system for directors and corporate auditors wasabolished by a resolution of the general meeting of shareholders on March24, 2006. In accordance with the resolution, it was resolved to make terminal
payments of retirement benefits of ¥117 million to the 10 incumbent directors(of the amount, ¥4 million to 6 outside directors), and of ¥19 million to 5
incumbent corporate auditors (of the amount, ¥6 million to 3 outside
corporate auditors) respectively, for the time they served in their positions
through to the close of that general meeting of shareholders. Said payments
were to be made after retirement. Accordingly, ¥1million was paid to one
outside directors, and ¥4 million was paid to one outside corporate auditor,
respectively, who retired from office in this fiscal year. Note that the amountof retirement benefits was not included in the abovementioned amount of
remuneration.

5) Audit Fees
The Company paid ¥82 million in fees to the independent auditor
KPMG AZSA & Co. for services relevant to the year under review. Of
that amount, ¥79 million was for services pursuant to Article 2-1 of
the Certified Public Accountant Law.

(2) Conflicts of Interest
The Company’s two outside directors are the representative of acompany that has a business relationship with CCW. One of the twooutside director is a representative of a business partner that theCompany treats as an equity-method affiliate for accounting
purposes.
One of the Company’s three outside corporate auditors is a
representative of a partner financial institution. The remaining
outside corporate auditors have no conflicts of interest with theCompany.

Auditors

Management Advisory Committee

Executive Corporate
AuditorTadatsugu HaradaStanding

Chairman

Masamitsu Sakurai

Representative Director & Chairman,
Ricoh Company, Ltd.

Corporate Auditor

Tadamasa Amitsuka Standing

MemberMasahiko Uotani

Director & Chairman,
Coca-Cola (Japan) Company, Limited

Corporate Auditor

Zenji Miura

Director & Executive Corporate Officer,
Ricoh Company, Ltd.

MemberShingo Matsuo

Representative Director & Chairman,
Kyushu Electric Power Co., Inc.

Katsumi Sasaki

MemberKazuhiko Enomoto

Corporate Auditor

Representative Director & Vice President,
The Nishi-Nippon City Bank, Ltd.

Representative Director & Chairman,
Fukuoka Jisho Co., Ltd.
Representative Director & Chairman,
Royal Holdings Co., Ltd.

Corporate Auditor

Yukiko Kyokane

Attorney, Representative of Kyokane Law OfficeMemberToshiaki Hanawa

Representative Director & President,
Mitsubishi Heavy Industries
Food & Packaging Machinery Co., Ltd.

MemberSusumu Ishihara

Representative Director & President,
Kyushu Railway Company

MemberTakashi Matsuzaki

Attorney, Tokunaga, Matsuzaki & Saito Law OfficeMember

Eiji Muto

Director & Chairman, NTT Data Instituteof Management Consulting,Inc.

MemberKunio Ito

Professor, Hitotsubashi University

MemberMichael Coombs

Representative Director & Vice President,
Coca-Cola (Japan) Company, Limited

Annual Review 2008

Annual Review 2008

32

GeneralAffairs
Risk
anagement
Committee

Position
Directors(Outside Directors) (Notes 1, 2 and 5)
Corporate Auditors(Outside Corporate Auditors) (Note 3 and 5)
Total(Outside Appointments)

MANAGEMENT (As of March 24, 2009)

OTHER INFORMATIONOTHER INFORMATION

CEO4) Director and Corporate Auditor Remuneration
Remuneration paid to directors and corporate auditors for the year
under review was as follows.

Board of Directors

33

RISK INFORMATION

Corporate auditors attend meetings of the Board of Directors,
executive committee and other important Company meetings. They
also meet a representative director on a regular basis and examine
the results of audits performed by the Audit Office. Using these andother methods, corporate auditors monitor the executive actions of
directors and executive officers in accordance with relevant laws
and regulations, the Company’s own articles of incorporation andinternal auditing standards.
The Audit Office carries out prior discussions with corporate
auditors concerning its auditing policy and plans for each fiscal
year. Corporate auditors also receive reports about the results ofaudits of the Audit Office as needed. In addition, at the start of the
fiscal year, the Company’s independent auditor provides thecorporate auditors with an explanation of its audit plans, and asneeded, supplies information and reports to the auditors during andat the end of the audit process.
● Independent Auditor and Related Personnel

CCW has appointed KPMG AZSA & Co. as its independent auditor.
The names of the firm’s certified public accountants (engagement
and management partners) that audit the Company’s financial
statements are listed as follows.
Name
Tetsuzo Hamashima
Masafumi Tanabe
Junichi Adachi

Auditing Experience
4 years
2 years
1 year

The auditing team has twenty-seven additional members including
four CPAs and one assistant CPA.

COCA-COLA WEST GROUP CRISIS HANDLING SYSTEM

COCA-COLA WEST GROUP RISK MANAGEMENT COMMITTEERISK MANAGEMENT COMMITTEE FOR EACH FUNCTION
Manufacturing,
Sales
Financial
Logistics,
SCM
Planning
Risk
Affairs
Equipment
Risk
Risk
Management
Risk
Risk
Management
Management
Committee
Management
Management
Committee
Committee
Committee
Committee

INITIAL ASSESSMENT TEAM

COCA-COLA WEST GROUP COMPANIES AND DIVISIONS

Individuals Total Remuneration
10¥153 million(3)(¥14 million)
6¥53 million(5)(¥28 million)
16¥207 million(8)(¥42 million)

Directors(Notes) 1. In addition to the above, the 4 directors of the Company who are not outside
directors, received ¥73 million in remuneration from subsidiaries where they
serve concurrently as directors or corporate auditors.
2. Maximum monthly remuneration for directors was set at ¥25 million by aresolution of the general meeting of shareholders on March 22, 1991.

Representative Director

Representative Director

Representative Director

Director

Director

Norio Sueyoshi

Tamio Yoshimatsu

Hijiri Morita

Nobuo Shibata

Shigeki Ota

President & CEO

Executive Vice President& Chief Marketing Officer

Executive Vice President& Chief Planning Officer

Executive Vice President& Chief General Affairs Officer

Executive Corporate Officer
Chief Financial Officer

Director

Director

Director

Director

Director

Hiroyoshi Miyaki

Jiro Wakasa

Masamitsu Sakurai

Michael Coombs

Koukichi Hombou

Executive Corporate Officer
General Manager ofChain Store Sales Dept.

Executive Corporate Officer
Chief SCM Officer

Representative Director& Chairman, Ricoh
Company, Ltd.

Representative Director& Vice President, Coca-Cola(Japan) Company, Limited

Representative Director& Chairman, Minami Kyushu
Coca-Cola Bottling Co., Ltd.

3. Maximum monthly remuneration for corporate auditors was set at ¥7 million
by a resolution of the general meeting of shareholders on March 25, 1994.
4. By a resolution of the general meeting of shareholders on March 24, 2009,
there was a change in the maximum remuneration for directors, which was
set at ¥500 million yearly (of the amount, maximum remuneration for outside
directors was set at ¥50 million yearly), and in the maximum remuneration forcorporate auditors, which was set at ¥100 million yearly.
5. Abovementioned amount includes the amount of remuneration for the two
directors (one is outside director) who retired from office as of conclusion of
the general meeting of shareholders on March 25, 2008, and for one outside
corporate auditor who was deceased on January 2, 2008.
6. The retirement benefits system for directors and corporate auditors wasabolished by a resolution of the general meeting of shareholders on March24, 2006. In accordance with the resolution, it was resolved to make terminal
payments of retirement benefits of ¥117 million to the 10 incumbent directors(of the amount, ¥4 million to 6 outside directors), and of ¥19 million to 5
incumbent corporate auditors (of the amount, ¥6 million to 3 outside
corporate auditors) respectively, for the time they served in their positions
through to the close of that general meeting of shareholders. Said payments
were to be made after retirement. Accordingly, ¥1million was paid to one
outside directors, and ¥4 million was paid to one outside corporate auditor,
respectively, who retired from office in this fiscal year. Note that the amountof retirement benefits was not included in the abovementioned amount of
remuneration.

5) Audit Fees
The Company paid ¥82 million in fees to the independent auditor
KPMG AZSA & Co. for services relevant to the year under review. Of
that amount, ¥79 million was for services pursuant to Article 2-1 of
the Certified Public Accountant Law.

(2) Conflicts of Interest
The Company’s two outside directors are the representative of acompany that has a business relationship with CCW. One of the twooutside director is a representative of a business partner that theCompany treats as an equity-method affiliate for accounting
purposes.
One of the Company’s three outside corporate auditors is a
representative of a partner financial institution. The remaining
outside corporate auditors have no conflicts of interest with theCompany.

Auditors

Management Advisory Committee

Executive Corporate
AuditorTadatsugu HaradaStanding

Chairman

Masamitsu Sakurai

Representative Director & Chairman,
Ricoh Company, Ltd.

Corporate Auditor

Tadamasa Amitsuka Standing

MemberMasahiko Uotani

Director & Chairman,
Coca-Cola (Japan) Company, Limited

Corporate Auditor

Zenji Miura

Director & Executive Corporate Officer,
Ricoh Company, Ltd.

MemberShingo Matsuo

Representative Director & Chairman,
Kyushu Electric Power Co., Inc.

Katsumi Sasaki

MemberKazuhiko Enomoto

Corporate Auditor

Representative Director & Vice President,
The Nishi-Nippon City Bank, Ltd.

Representative Director & Chairman,
Fukuoka Jisho Co., Ltd.
Representative Director & Chairman,
Royal Holdings Co., Ltd.

Corporate Auditor

Yukiko Kyokane

Attorney, Representative of Kyokane Law OfficeMemberToshiaki Hanawa

Representative Director & President,
Mitsubishi Heavy Industries
Food & Packaging Machinery Co., Ltd.

MemberSusumu Ishihara

Representative Director & President,
Kyushu Railway Company

MemberTakashi Matsuzaki

Attorney, Tokunaga, Matsuzaki & Saito Law OfficeMember

Eiji Muto

Director & Chairman, NTT Data Instituteof Management Consulting,Inc.

MemberKunio Ito

Professor, Hitotsubashi University

MemberMichael Coombs

Representative Director & Vice President,
Coca-Cola (Japan) Company, Limited

Annual Review 2008

Annual Review 2008

32

GeneralAffairs
Risk
anagement
Committee

Position
Directors(Outside Directors) (Notes 1, 2 and 5)
Corporate Auditors(Outside Corporate Auditors) (Note 3 and 5)
Total(Outside Appointments)

MANAGEMENT (As of March 24, 2009)

OTHER INFORMATIONOTHER INFORMATION

CEO4) Director and Corporate Auditor Remuneration
Remuneration paid to directors and corporate auditors for the year
under review was as follows.

Board of Directors

33

Stock Information(As of December 31, 2008)

Stock code:
Authorized shares:
Outstanding shares:
Number of shareholders:Number of shares per trading unit:
Stock exchange listings:

2579
270,000,000
111,125,714
21,886100 shares

Tokyo Stock Exchange (First Section)
Osaka Securities Exchange (First Section)
Fukuoka Stock Exchange

Major shareholders:Numberof shares held(Thousands)

Shareholders

Percentage
of voting shares(%)

Ricoh Company, Ltd. ........................................................................ 16,792
Kirin Holdings Company, Limited ......................................................... 11,626
The New Technology Development Foundation ........................................ 5,294
Coca-Cola Holdings West Japan, Inc. .................................................... 4,074
Mitsubishi Heavy Industries Food & Packaging Machinery Co., Ltd. .............. 3,912
Japan Trustee Services Bank, Ltd. (Trust account)..................................... 3,703
The Nishi-Nippon City Bank, Ltd. ........................................................... 3,703
Japan Trustee Services Bank, Ltd. (Trust account 4G) ............................... 2,957
Japan Master Trust Bank, Ltd. (Trust account).......................................... 2,871
BBH493025 Black Rock Global Allocation................................................ 1,623

16.9
11.7
5.3
4.1
3.9
3.7
3.7
3.0
2.9
1.6

Note: The Company owns 11,148 thousand shares of treasury stock. This shareholding is not shown in the table and has
not been included in the calculation of voting rights (percentage of voting shares).

Number of shares held and percentageof shares held by shareholder category:

Stock price and trends in stock trading volume
NumberofsharesNumberofshareholders(Thousands)■ Financial institutions ..............

64

19,001■ Securities companies .............

33

310

■ Other domestic corporations ....

469

49,012■ Foreign corporations ..............

258

19,826■ Individuals and others .............

21,061

11,826■ Treasury stock .....................

1

11,148TOTAL ...................................

21,886 111,125

Stock price(Yen)

Stock trading volume(Thousands of shares)

3,000

2,500

15,0002,000

12,000

1,500

9,000

1,000

6,000

Composition of shareholders
Treasury stock

10.0%

3,000
Financial institutions

OTHER INFORMATION

17.1%

Individuals and others

10.6%

Securities companies

2006

2005

2007

2008

0.3%

Foreign corporations

17.8%

Other domestic corporations

44.1%

Credit Rating Information
Annual Review 2008

34

2004

2005

2006

2007

2008

Japan Credit Rating Agency, Ltd.
Long-term credit rating

AA-

AA-

AA-

AA-

AA-

Rating and Investment Information, Inc.
Long-term credit rating

A+

A+

A+

A+

A+

Stock Information

Preferential Treatment System for Shareholders(As of December 31, 2008)(As of December 31, 2008)

Stock code:
Authorized shares:
Outstanding shares:
Number of shareholders:Number of shares per trading unit:
Stock exchange listings:

2579
270,000,000
111,125,714
21,886100 shares

Tokyo Stock Exchange (First Section)
Osaka Securities Exchange (First Section)
Fukuoka Stock Exchange

CCW CHANGED THE PREFERENTIAL TREATMENT SYSTEM FOR SHAREHOLDERS TO A POINTS SYSTEM.

Major shareholders:Numberof shares held(Thousands)

Shareholders

Percentage
of voting shares(%)

Ricoh Company, Ltd. ........................................................................ 16,792
Kirin Holdings Company, Limited ......................................................... 11,626
The New Technology Development Foundation ........................................ 5,294
Coca-Cola Holdings West Japan, Inc. .................................................... 4,074
Mitsubishi Heavy Industries Food & Packaging Machinery Co., Ltd. .............. 3,912
Japan Trustee Services Bank, Ltd. (Trust account)..................................... 3,703
The Nishi-Nippon City Bank, Ltd. ........................................................... 3,703
Japan Trustee Services Bank, Ltd. (Trust account 4G) ............................... 2,957
Japan Master Trust Bank, Ltd. (Trust account).......................................... 2,871
BBH493025 Black Rock Global Allocation................................................ 1,623

16.9
11.7
5.3
4.1
3.9
3.7
3.7
3.0
2.9
1.6

Note: The Company owns 11,148 thousand shares of treasury stock. This shareholding is not shown in the table and has
not been included in the calculation of voting rights (percentage of voting shares).

Number of shares held and percentageof shares held by shareholder category:

Stock price and trends in stock trading volume
NumberofsharesNumberofshareholders(Thousands)■ Financial institutions ..............

64

19,001■ Securities companies .............

33

310

■ Other domestic corporations ....

469

49,012■ Foreign corporations ..............

258

19,826■ Individuals and others .............

21,061

11,826■ Treasury stock .....................

1

11,148TOTAL ...................................

21,886 111,125

Stock price(Yen)

CCW has implemented a preferential treatment system for shareholders in appreciation for day-by-day support
from our shareholders and also for the purpose of deepening understanding about us, and to enhance thispreferential treatment system and increase its appeal, we have recently changed the specifics of the system
as below.
We request your continued support and patronage.
Shareholders targeted by this system
Shareholders who own one unit (100 shares) or more of shares who are recorded on the shareholders’ register of CCW as of June 30 and
December 31 each year are the targets of this preferential treatment system. (as in the past)

Details of preferential treatment system for shareholders
BEFORE CHANGE

AFTER CHANGE

Based on the number of shares the shareholder owns, Coca-Cola Gift
Certificates are presented (twice yearly). One Coca-Cola Gift Certificate canbe exchanged for four Coca-Cola products (500 ml PET bottle products(except for some products)).

Based on the number of shares the shareholder owns, Coca-Cola Gift Points
will be presented (twice yearly). Shareholders can exchange points (1 point= ¥60 equivalent) for items such as the Coca-Cola product assortment set,or make a donation to social contribution activities, and other items, fromthe website or product catalog.

Stock trading volume(Thousands of shares)

3,000

NUMBER OF SHARES SHAREHOLDERS OWNBEFORE CHANGE

AFTER CHANGE

2,500

15,000100 to 499 shares

3 Coca-Cola Gift Certificates

30 Coca-Cola Gift Points

2,000

12,000500 to 999 shares

4 Coca-Cola Gift Certificates

40 Coca-Cola Gift Points

1,500

9,000

1,000 to 4,999 shares

6 Coca-Cola Gift Certificates

60 Coca-Cola Gift Points

1,000

6,000

Above 5,000 shares

12 Coca-Cola Gift Certificates

120 Coca-Cola Gift Points

Composition of shareholders
Treasury stock

10.0%

3,000
Financial institutions

Individuals and others

10.6%

Securities companies

2006

2005

2007

Shareholder preferential treatment gift products (examples)
Coca-Cola Product Assortment Set

2008

0.3%

one dozen Coca-Cola set
one dozen Coca-Cola Zero set
one dozen Coca-Cola Plus set
Coca-Cola assortment
Fanta Furu-Furu Shaker assortment, etc.

Foreign corporations

17.8%

Other domestic corporations

44.1%

GOODS

Donation tosocial contribution activities

Bath towelwith Coca-Cola West logo

OTHER INFORMATIONOTHER INFORMATION

17.1%

Credit Rating Information
2005

2006

2007

2008

Japan Credit Rating Agency, Ltd.
Long-term credit rating

AA-

AA-

AA-

AA-

AA-

Rating and Investment Information, Inc.
Long-term credit rating

A+

A+

A+

A+

A+

Period for presentation

Donation to Ichimura
Nature School in Kyushu

Guidebook on Preferential Treatment for Shareholders including descriptions of Coca-Cola Gift Points will be sent to those shareholders who fallunder this treatment in around September of the relevant year for preferential treatment for shareholders based on the record date of June 30,
and around April of the following year for preferential treatment for shareholders based on the record date of December 31.

Annual Review 2008

Annual Review 2008

34

2004

35

Corporate History

Main Products

Going forward into the future

1960

SPARKING BEVERAGES

1960

2001

December

April

Nichibei Inryo Co., Ltd. established at
1-5 Nagahama-cho, Fukuoka City for
manufacture and sale of soft drinks.
Capitalized at 50 million yen.

2002

1962

Bottler Agreement Execution Ceremony

June
Agreement is concluded with The Coca-Cola Company and the
Coca-Cola (Japan) Co., Ltd. with regard to the manufacture and saleof Coca-Cola and Fanta, and the rights to bottle and sell Coca-Colaand Fanta in Fukuoka, Saga, and Nagasaki Prefectures is acquired.

Mikasa Coca-Cola Bottling Co., Ltd. stock is acquired.

April
Merges with both Sanyo Coca-Cola Sales Co., Ltd. and Kitakyushu
Coca-Cola Sales Co., Ltd.

2002

July
Four subsidiaries running vending businessare integrated to establish Nishinihon
Beverage Co., Ltd.
Two subsidiaries running distribution
businesses are integrated to establish
Logicom Japan Co., Ltd. (now Coca-Cola
West Logistics Co., Ltd.)

2006

1962
1963
March
Corporate name changes to Nichibei Coca-Cola Bottling Co., Ltd.

1973

Georgia is released in 1975

July

Georgia Cafe Au Lait
Georgia Original
Georgia Tasty
Georgia Ultra Low Sugar
Georgia Max Coffee

TEA DRINKS

SPORTS DRINKSFRUIT DRINKS

Sokenbicha
Ayataka Jyosencha
Sokenbicha Gokoku
Karada Meguricha
Hajime Saori
Fan
Hajime Chaka
Love Body
Kocha-kaden Royal Milk Tea

Aquarius
Aquarius Vitamin Guard
Aquarius Vitamin Guard (for warmed consumption only)
Aquarius Zero
Aquarius Powder
Aquarius Sports Jelly

Qoo Tottemo Orange
Qoo Tottemo Apple
Purun-purun Qoo
Minutes Maid
Mone Honey Yuzu

ENERGY DRINKS

WATER

OTHER

Real Gold

Aquatherapy Minaqua
Mori-no-mizu-dayori Daisen Sanroku

CocoTeen Zeitaku Sozai Cocoa
CocoTeen Euro Premium Ice Cocoa
Bistrone Corn Potage

Released Soken-bicha in 1992

Investment in Minami Kyushu Coca-Cola Bottling Co., Ltd., which ismade into an affiliate under equity method.

2008
January

OTHER INFORMATIONOTHER INFORMATION

June

Three subsidiaries running logistics businesses are integrated
to establish Coca-Cola West Logistics Co., Ltd.

April

Aquarius is released in 1983

Listing on the Fukuoka Stock Exchange

2007
January

2007

Corporate name changes to
Kitakyushu Coca-Cola BottlingCo., Ltd.

Two subsidiaries running manufacturing businesses are integrated toestablish Coca-Cola West Products Co., Ltd.

November
Listing on the second section of Tokyo Stock Exchange

1998

2008
April

June
Listing on the first section of the Tokyo Stock Exchange

The subsidiary running related to vending machine businesses is
integrated to establish Coca-Cola West Equipment Services Co., Ltd.

1999

2009

Qoo released in 1999 in Japan

July

January

Consolidation with Sanyo Coca-Cola Bottling Co., Ltd. andcorporate name changes to Coca-Cola West Japan Co., Ltd.
Listing on the first section of Osaka Securities Exchange andHiroshima Stock Exchange

Coca-Cola West Co., Ltd. is established.

Annual Review 2008

Annual Review 2008

36

Georgia Emerald Mountain Blend
Georgia Emerald Mountain Blend Black
Georgia Emerald Mountain Blend Cafe Au Lait
Georgia European
Georgia Vintage Label

Joint holding company Coca-Cola West Holdings Co.,
Ltd. is established with Kinki Coca-Cola Bottling andmanagement of the two companies is integrated.

Sales start.

1996

Fanta Orange
Fanta Grape
Fanta Furu-Furu Shaker
Fanta Furu-Furu Charge
Schweppes Tonic Water

July

July

1994

CFC-free vending machine

Coca-Cola
Coca-Cola Zero
Coca-Cola Plus
SpriteCanada Dry Ginger Ale

COFFEE DRINKS

37

Corporate History

Main Products

Going forward into the future

1960

SPARKING BEVERAGES

1960

2001

December

April

Nichibei Inryo Co., Ltd. established at
1-5 Nagahama-cho, Fukuoka City for
manufacture and sale of soft drinks.
Capitalized at 50 million yen.

2002

1962

Bottler Agreement Execution Ceremony

June
Agreement is concluded with The Coca-Cola Company and the
Coca-Cola (Japan) Co., Ltd. with regard to the manufacture and saleof Coca-Cola and Fanta, and the rights to bottle and sell Coca-Colaand Fanta in Fukuoka, Saga, and Nagasaki Prefectures is acquired.

Mikasa Coca-Cola Bottling Co., Ltd. stock is acquired.

April
Merges with both Sanyo Coca-Cola Sales Co., Ltd. and Kitakyushu
Coca-Cola Sales Co., Ltd.

2002

July
Four subsidiaries running vending businessare integrated to establish Nishinihon
Beverage Co., Ltd.
Two subsidiaries running distribution
businesses are integrated to establish
Logicom Japan Co., Ltd. (now Coca-Cola
West Logistics Co., Ltd.)

2006

1962
1963
March
Corporate name changes to Nichibei Coca-Cola Bottling Co., Ltd.

1973

Georgia is released in 1975

July

Georgia Cafe Au Lait
Georgia Original
Georgia Tasty
Georgia Ultra Low Sugar
Georgia Max Coffee

TEA DRINKS

SPORTS DRINKSFRUIT DRINKS

Sokenbicha
Ayataka Jyosencha
Sokenbicha Gokoku
Karada Meguricha
Hajime Saori
Fan
Hajime Chaka
Love Body
Kocha-kaden Royal Milk Tea

Aquarius
Aquarius Vitamin Guard
Aquarius Vitamin Guard (for warmed consumption only)
Aquarius Zero
Aquarius Powder
Aquarius Sports Jelly

Qoo Tottemo Orange
Qoo Tottemo Apple
Purun-purun Qoo
Minutes Maid
Mone Honey Yuzu

ENERGY DRINKS

WATER

OTHER

Real Gold

Aquatherapy Minaqua
Mori-no-mizu-dayori Daisen Sanroku

CocoTeen Zeitaku Sozai Cocoa
CocoTeen Euro Premium Ice Cocoa
Bistrone Corn Potage

Released Soken-bicha in 1992

Investment in Minami Kyushu Coca-Cola Bottling Co., Ltd., which ismade into an affiliate under equity method.

2008
January

OTHER INFORMATIONOTHER INFORMATION

June

Three subsidiaries running logistics businesses are integrated
to establish Coca-Cola West Logistics Co., Ltd.

April

Aquarius is released in 1983

Listing on the Fukuoka Stock Exchange

2007
January

2007

Corporate name changes to
Kitakyushu Coca-Cola BottlingCo., Ltd.

Two subsidiaries running manufacturing businesses are integrated toestablish Coca-Cola West Products Co., Ltd.

November
Listing on the second section of Tokyo Stock Exchange

1998

2008
April

June
Listing on the first section of the Tokyo Stock Exchange

The subsidiary running related to vending machine businesses is
integrated to establish Coca-Cola West Equipment Services Co., Ltd.

1999

2009

Qoo released in 1999 in Japan

July

January

Consolidation with Sanyo Coca-Cola Bottling Co., Ltd. andcorporate name changes to Coca-Cola West Japan Co., Ltd.
Listing on the first section of Osaka Securities Exchange andHiroshima Stock Exchange

Coca-Cola West Co., Ltd. is established.

Annual Review 2008

Annual Review 2008

36

Georgia Emerald Mountain Blend
Georgia Emerald Mountain Blend Black
Georgia Emerald Mountain Blend Cafe Au Lait
Georgia European
Georgia Vintage Label

Joint holding company Coca-Cola West Holdings Co.,
Ltd. is established with Kinki Coca-Cola Bottling andmanagement of the two companies is integrated.

Sales start.

1996

Fanta Orange
Fanta Grape
Fanta Furu-Furu Shaker
Fanta Furu-Furu Charge
Schweppes Tonic Water

July

July

1994

CFC-free vending machine

Coca-Cola
Coca-Cola Zero
Coca-Cola Plus
SpriteCanada Dry Ginger Ale

COFFEE DRINKS

37

Creat future of beverage businessAnnual Review

2008

Coca-Cola West Company, Limited
Canal City Business Center Building
1-2-25, Sumiyoshi, Hakata-ku, Fukuoka 812-8649, Japan
Investor Relations Tel: +81-92-283-5724
http://www.ccwest.co.jp/english/

Cert no.SGS-COC-2935(*Will be moved to the address below on July 1, 2009)

7-9-66, Hakozaki, Higashi-ku, Fukuoka 812-8650, Japan
Investor Relations Tel: +81-92-641-8590

Coca-Cola West Annual Review 2008 is printed with soy ink on paper
originating from FSC-certified and managed forests, and was printed
using a waterless method that does not generate toxic liquid waste
during printing.

Printed in Japan

Coca-Cola West Company, Limited