This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Quarterly Report（Article 24-4-7, Paragraph 1 of the Financial Instruments andExchange Act）
Fiscal Year
From January 1, 2023
（The 1st Quarter of the 66th Term）
To March 31, 2023

Coca-Cola Bottlers Japan Holdings Inc.

（E00417)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Table of Contents[Cover Page]
Part I Corporate information ..................................................................................................................................................................... 1
Section 1. Corporate overview .............................................................................................................................................................. 1
1. Summary of business results ......................................................................................................................................................... 1
2. Business content ............................................................................................................................................................................ 1
Section 2. Business situations................................................................................................................................................................ 2
1. Risk of Business ............................................................................................................................................................................ 2
2. Management's analysis of financial condition, results of operations and cash flows ..................................................................... 2
3. Significant management contracts ................................................................................................................................................. 7
Section 3. Status of the filing company ................................................................................................................................................. 8
1. Status of Shares ............................................................................................................................................................................. 8
2. Status of Officers ........................................................................................................................................................................... 9
Section 4 Accounting status................................................................................................................................................................. 10
1. Condensed Quarterly Consolidated Financial Statements and Notes .......................................................................................... 11
2. Others .......................................................................................................................................................................................... 26
Part II Information of guarantor companies of the filing company ......................................................................................................... 27

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

【Cover Page】[Documents to be submitted]

Quarterly Report[Underlying article]

Article 24-4-7, Paragraph 1 of the Financial Instruments andExchange Act[Recipient]

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

May 15, 2023

[Fiscal year]

66th fiscal term (from January 1, 2023 to March 31, 2023)[Company name]Coca-Cola Bottlers Japan Holdings Inc.

[Name and position of representative]

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

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

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

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

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

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) filed with the Director-General of the Kanto
Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments andExchange Act of Japan. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki
Hokokusho shall prevail.
For the purpose of this Quarterly Report, unless context indicates otherwise, the “Company”, “we”, and “CCBJH” refer to Coca-Cola
Bottlers Japan Holdings Inc., and the “Group” refers to the Company and its subsidiaries.

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part I Corporate information
Section 1. Corporate overview
1. Summary of business results
Issuance

The 65th Term
Consolidated
First Quarter

The 66th Term
Consolidated
First Quarter

The 65th Term

Accounting period

From
January 1, 2022
toMarch 31, 2022

From
January 1, 2023
toMarch 31,2023

FromJanuary 1, 2022
toDecember 31, 2022

Revenue(Millions of yen)

168,853

182,063

807,430

Loss for the period before tax benefits(Millions of yen)

(10,031)(9,151)(12,491)

Net loss for the period attributable to owners(Millions of yen)of the parent(6,568)(6,459)(8,070)Comprehensive loss attributable to ownersof the parent(Millions of yen)

(5,330)(6,355)(5,005)Equity attributable to owners of the parent(Millions of yen)

482,379

465,238

476,216

Total Assets(Millions of yen)

865,012819,494

826,737

Loss per share(Yen)(36.62)(36.02)(45.00)

Diluted earnings per share

(Yen)

－

－

－

Ratio of equity attributable to owners of theparent to total assets

(%)

55.8

56.8

57.6

Cash flows from operating activities(Millions of yen)

12,964

8,062

42,717

Cash flows from investing activities(Millions of yen)

(5,619)(8,062)(23,090)

Cash flows from financing activities(Millions of yen)

(6,632)(6,295)(46,050)

Cash and cash equivalents at the end of the(Millions of yen)period111,210

77,77984,074

Notes:

1. Because the Company prepares condensed quarterly consolidated financial statements, changes in the key management indications for the filingcompany are not described.
2. Diluted earnings per share is not presented, as the effects of dilutive stock on earnings per share are anti-dilutive.
3. The above indicators are based on the condensed quarterly consolidated financial statements and consolidated financial statements prepared inaccordance with International Financial Reporting Standards ("IFRS").
4. Fractions of one million yen are rounded to the nearest million.

2. Business content
There were no significant changes in the businesses that the Group (the Company and its subsidiaries) is engaged in during
the First quarter of 2023.

－1－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 2. Business situations
1. Risk of Business
During the first quarter of the current fiscal year (January 1, 2023, to March 31, 2023), there were no new business risks orsignificant changes in the business risks that were described in the Annual Securities Report for the previous fiscal year.
The company will continue to actively monitor our environment for new, current, and over the horizon risks and respondproactively.

2. Management's analysis of financial condition, results of operations and cash flows
Note that matters related to future developments that are mentioned in this section are judgments of the Group that were madeas of the date of quarterly securities report submission.
(1) Qualitative Information on Consolidated Financial Results
In this first quarter (January 1, 2023 to March 31, 2023), the total domestic nonalcoholic ready-to-drink (NARTD) beverageindustry volume is estimated to have grown slightly versus the same period of the previous fiscal year. Despite the negative
impact on demand from the price revisions by beverage companies in the previous fiscal year, demand increased on the back ofa recovery in traffic and resumption of economic activity, as well as a recovery from the impact of the restrictions due tocoronavirus infection ("COVID-19") in the same period of the previous fiscal year. On the other hand, the business environment
remained uncertain and challenging as the rising commodity and utility prices and yen's depreciation impacted business andconsumer behaviors.
Under these circumstances, we have positioned 2023 as the “Year of profit focus”, and we have given top priority to improving
profitability. In commercial activities, we have focused on implementing and maintaining the prices of our products after the
price revisions implemented in the previous fiscal year and worked to improve wholesale revenue per case. In addition, we haveworked to grow sales revenue by introducing new products, expanding sales space at key customer storefronts, and implementing
effective marketing activities in order to capture increased demand from the traffic recovery. Furthermore, we have been
conducting negotiations with customers for the price revisions of can products and large PET bottle products from shipments on
May 1, which is an important initiative to further improve profitability. In the manufacturing and supply chain fields, while facedwith rising commodity and utility prices, and yen's depreciation, we have been working to reduce manufacturing and distribution
costs by further improving our Sales and Operations Planning (S&OP) process and supply network. These activities include theuse of the Saitama Mega DC (Distribution Center) and Akashi Mega DC, automated distribution centers with the largest storage
and shipping capacity in Japan. We have also prepared for achieving stable operations for the summer, the season with the highest
demand.
We are working to realize Environmental, Social and Governance (ESG) targets based on creating shared value with society.
Specifically, we have launched several collaborative initiatives with customers and government agencies to promote Sustainable
Development Goals (SDGs) and enhance PET bottle recycling. We have been working to reduce our environmental impact
through fostering a recycling-based society and expanding business opportunities through collaboration. In other efforts tocontribute to local communities through our business, we have implemented water source conservation activities and donatedproducts to food banks. Such ESG initiatives have been positively appraised, and we have been certified as an "Eco-First
Company" by the Ministry of the Environment, as well as selected as a "Supplier Engagement Leader," the highest rating in the"2022 Supplier Engagement Assessment" by CDP, an international non-profit organization.
Details for the first quarter are as follows.

－2－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Summary of Consolidated Financial Results(Millions of yen except sales volume)

Year-to-date Q1 (January to March)2022

In million JPY
Revenue
Sales volume (million cases)
Gross Profit
Selling, General & Administrative Expenses
Other income (Recurring)
Other expenses (Recurring)
Investment loss on equity method
Business Loss
Other income (Non-recurring)
Other expenses (Non-recurring)Operating Loss
Net Loss Attributable to Owners of Parent

168,853100
72,011
84,892298
189
22(12,749)
5,690
2.611
(9,670)(6,568)2023
182,063
104
78,74188,002186369
8(9,437)
1,123
846(9,160)(6,459)Change
(%)
7.8
4
9.3
3.7
(37.6)
95.5(66.3)－(80.3)(67.6)－－* 1. “Business Loss” is a measure of our underlying or recurring business performance. Business Loss deducts cost of goods and selling, generaland administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.
2. Sales volume in 2022 is revised retroactively due to changes of counting segmentation and scope in some products.

Consolidated revenue was 182,063 million yen (7.8% increase of 13,210 million from the same period in the prior year).
Despite the initial negative impact on volume following the price revisions, sales volume increased by 4% versus the same
period in the previous year. This was due to the introduction of new products and expansion of sales space among key customers.
We have also implemented effective marketing activities which helped capture the demand opportunity from traffic recovery.
The price revisions implemented in the previous fiscal year are delivering benefits as planned with wholesale revenue per caseincreasing and contributing to revenue growth.
Consolidated business loss improved by 3,312 million yen (loss reduced) and was a loss of 9,437 million yen (12,749 million
yen loss in prior year period). Profitability improved by approximately 5 billion yen in the areas under our control, including
profit contributions from top-line growth, sales volume growth, wholesale revenue per case improvement, and logistics cost
reductions through supply chain improvements. Profitability improvement was achieved despite the impact of cost increases due
to external factors such as higher commodity and utility prices and yen depreciation, as well as the cycling of temporary costsavings implemented in the same period of the previous year.
Consolidated operating loss improved by 510 million yen (loss reduced) and was a loss of 9,160 million yen (9,670 million
yen loss in prior year period). In addition to business loss improving versus the previous year (loss reduced) being the primaryreason, there was a cycling impact of gains from sales and disposals of property, plant, and equipment that was recorded in thesame period of the previous year which decreased other income (non-recurring). Other income (non-recurring) in the first quarter
includes 1,116 million yen in gain on sales and disposals of property, plant, and equipment, which was realized in the processof improving the balance sheet. Other expenses (non-recurring) include 787 million yen in business structure improvement
expenses related to the implementation of fundamental transformation.
Net loss attributable to owners of the parent improved by 109 million yen (loss reduced). With operating loss improving fromthe previous period, it was a loss of 6,459 million yen (6,568 million yen loss in prior year period).

－3－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Sales volume trends (% change from same period of previous year)
Sales volume grew by 4% in the first quarter. This was the result of efforts to minimize the impact of volume decline resulting
from price revisions implemented in the previous fiscal year, such as implementing commercial activities to capture
opportunities for increased demand with the recovery in traffic. As a result of the price revisions, wholesale revenue per caseimproved by more than double-digits versus the same period previous year in all channels. By channel, supermarkets, drugstores,
and discounters were impacted by the price revisions, despite the introduction of new products and activities to expand the sales
space. As a result, sales volume at supermarkets declined by 3%, while sales volume at drugstores and discounters increased by
3%, partly due to the volume of large PET bottle products which had been sluggish after the price revisions turning to a positive
versus the same period in the previous year. Vending volume increased by 1%, despite the impact of the price revisions. The
market share base we have built to date and the implementation of campaigns through the Coke ON smartphone app contributed
to capturing the traffic recovery demand. As for the price revisions in vending machines, the market execution division's agileand quick response resulted in the early completion of price reflections which led to a significant improvement in the wholesalerevenue per case. CVS sales decreased by 1%, despite efforts to strengthen activities to expand sales space, new product launches,
efforts to implement campaigns in collaboration with customers, the continued severe competitive environment and volume
impact by the price revisions all had an impact. In retail & food, volume increased by 23% with the recovery in customer traffic
returning to dine at restaurants. In online, volume grew by 3%, despite the competitive environment becoming increasingly
challenging and even in the phase of recovering traffic. We strengthened our product lineup including the label-less products
and implemented tie-up promotions with major online customers.
By beverage category performance, sparkling sales volume grew by 6%, volume growth centered around Coca-Cola atvending and restaurants with the recovery in traffic, and contributions from new products such as Fanta Premier Torokeru Momo.
Sales volume of tea products decreased by 5% due to impact from the price revisions, despite the contributions from Yakan no
Mugicha from Hajime which continues to enjoy sales growth since its launch and new products such as Ayataka Koi Ryokucha
which was renewed with an official Food with Nutrient Function Claims labelling. Coffee sales volume increased by 2%,
supported by the launch of Georgia THE Black and Georgia THE Latte, launched together with the Georgia rebranding, and thestrengthening of the Costa Coffee lineup contributed to the sales increase. In Sports, volume decreased by 8% due to the pricerevision impact and intensified competition within the category. Water sales volume grew by 20% by capturing at-homeconsumption demand which led to both small PET and large PET growth, and contributions from the new I LOHAS Natural
Water with the renewed bottle design for the first time in 13 years.
In the alcohol category, Lemon-dou, despite campaigns to support Samurai Japan, Japan’s national baseball team, volume
declined by 33% due to cycling of new product launches in the same period of the previous year and of the at-home drinking
demand that increased during COVID-19. On April 10, we launched Jack Daniel's & Coca-Cola, an alcohol beverage that mixes
Coca-Cola and the Tennessee whiskey brand Jack Daniel's, we will strengthen sales to revitalize the alcohol category.

(2) Qualitative Information on Consolidated Financial Position
Assets at the end of the quarter were 819,494 million yen, a decrease of 7,243million yen from the end of the prior year period.
This is mainly due to a decrease in “Cash and cash equivalents”, and “Trade and other receivables” an increase in “Inventories.”
Liabilities at the end of the quarter were 354,108 million yen, an increase of 3,730 million yen from the end of the prior year
period. This is mainly due to the decrease in “Lease liabilities” and an increase in “Trade and other payables.”Equity at the end of the quarter was 465,385 million yen, a decrease of 10,973 million yen. This mainly reflects a decrease in“Retained earnings” as a result of dividend payments.

－4－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Qualitative Information on Consolidated Statements of Cash Flow
The cash flow conditions for the first quarter of the current year are as follows:< Cash Flows from Operating Activities >Net cash generated from operating activities was 8,062 million yen (12,964 million yen generated from operating activities
in the prior year period). This results from “Depreciation and amortization” and “increase of the trade and other receivables”
offset by a “loss before income taxes.”<Cash Flows from Investing Activities>
Net cash used for investing activities was 8,062 million yen (5,619 million yen generated from investment activities in theprior year period) due to “Acquisitions of property, plant and equipment and intangible assets.”<Cash Flows from Financing Activities>
Net cash used for financing activities was 6,295 million yen (6,632 million yen in the prior year period), driven by mainly
cash spent for “dividends paid.”
As a result of those activities, cash and cash equivalents at the end of first quarter were 77,779 million yen, a decrease of 6,295
million yen in comparison to the end of the previous period.
(4) Business and financial challenges to be addressed
1. Issues to be addressed
There are no material changes regarding the issues that the Group needs to address during the consolidated first quarter ofthe current year.

－5－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

2. Basic Policies on the Control of the Joint-stock Company
a. Descriptions of basic policies
The Company believes that the persons and/or entities (hereinafter referred as “Persons”) who control decisions on the
Company’s financial and business policies need to understand the source of the Company’s corporate value and will make itpossible to continually and persistently ensure and enhance the Company’s corporate value and, in turn, the common interestsof its shareholders. The Company believes that a decision on any proposed acquisition that would involve a change of corporate
control of the Company should ultimately be made based on the intent of its shareholders as a whole. Also, the Company
would not reject a large-scale acquisition of the shares in the Company if it would contribute to the corporate value of theCompany and, in turn, the common interests of its shareholders.
However, there are some forms of large-scale acquisition of shares that benefit neither the corporate value of the target
company nor the common interests of its shareholders: those with a purpose that would obviously harm the corporate value ofthe target company and, in turn, the common interests of its shareholders; those with the potential to substantially coerce
shareholders into selling their shares; those that do not provide sufficient time or information for the target company’s boardof directors and shareholders to consider the terms of the large-scale acquisition of shares, or for the target company’s boardof directors to present a business plan or an alternative proposal; and those that require the target company to discuss ornegotiate with the acquirer in order to procure more favorable terms for shareholders than those presented by the acquirer.
The Company believes that the Persons who control decisions on the Company’s financial and business policies need to be
Persons who (A) fully understand the importance of (i) providing freshness and refreshment to people around the world andembedding the ”Coca-Cola” brand, which is now a part of our life style, in local communities; (ii) striving aggressively to
win in the market as the customers’ preferred partner with a deep understanding of the Company’s corporate philosophy; (iii)appreciating employees who have a strong sense of responsibility to thoroughly pursue customer satisfaction, and proactively
working on building a workplace environment that can make each and every employee feel rewarded, motivated and proud of
being a member of the Coca-Cola family; and (iv) contributing to local communities and proactively dealing withenvironmental issues with a strong sense of responsibility as a corporate citizen that continues to strive to assist in therealization of an affluent society, (B) preserve relationships of mutual trust with customers, business partners, shareholders
and employees and perform to their expectations, and (C) make it possible to continually and persistently ensure and enhance
the Company’s corporate value and, in turn, the common interests of its shareholders from a mid- to long-term perspective.
Therefore, the Company believes that Persons who would make a large-scale acquisition of the shares in the Company in amanner that does not contribute to the corporate value of the Company and, in turn, the common interests of its shareholders
would be inappropriate to become Persons who would control decisions on the Company’s financial and business policies. We
must secure the Company’s corporate value and, in turn, the common interests of its shareholders by taking necessary andreasonable countermeasures against a large-scale acquisition of the Company’s shares by such Persons.
b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming the Coca-Cola business in Japan by deploying various joint
initiatives such as product development and test marketing with The Coca-Cola Company and Coca-Cola (Japan) Company,
Limited (100% subsidiary of The Coca-Cola Company) as a strategic partner, but also strives to become a company trusted
by the stakeholder groups of consumers, customers, shareholders and employees.
Soft drink industry volume growth in Japan is expected to be muted, given the developed nature of the market as a whole,and the business environment surrounding the Company is projected to become even more intense with further accelerationof the industry’s restructuring for survival, such as the expansion of business tie-ups between beverage manufactures.
Under such circumstances, the Group aims at becoming the preferred partner of our customers and consumers in all
drinking occasions by establishing a robust and sustainable operating model, pursuing success in high-priority areas, anddrastically transforming the business to ensure growth.
The Company also made a transition to a company with an Audit and Supervisory Committee in order to further reinforce
the governance system. The Audit and Supervisory Committee serves as the auditing body of the Company that is comprised
exclusively of external directors, including multiple independent external directors. To strengthen the management oversight－6－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

function, these external directors that serve as members of the Audit and Supervisory Committee have each been granted
voting rights in Board of Director meetings, in addition to the right to state their opinions in shareholders’ meetings on
matters pertaining to the designation of board members and their remuneration, among others. In order to separate thedecision-making, business management and business execution functions, the Company is implementing a corporate
executive officer system. In addition to the foregoing, for more productive discussions in highly important matters in the
Board of Directors meetings, the Company is delegating the authority to make decisions on certain important matters that
require prompt business executions to specific directors as well as facilitating speedy decision making of other matters.
(b) Outline of measures to prevent inappropriate persons from controlling the finance and business policy decisions of theCompany in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives to proactively collect and timely disclose
information in order to ensure and improve the corporate value of the Company and the common interest of shareholders
as well as make appropriate measures as needed under the scope permitted by laws and regulations and the Articles ofIncorporation.
When a Board Meeting determines it necessary to reapply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into consideration of the future trend of
the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the Articles ofIncorporation for decision of the implementation.
c. Decisions of the Board of Directors of the Company on the specific measures and the reasons
The measure described in the previous b. (a) was introduced as a specific measure to continuously and sustainably
improve the corporate value of the Company and the common interest of shareholders and is consistent with the Company’s
basic policy.
In addition, the measure described in the previous b. (b) was introduced as a specific measure to ensure and improve thecorporate value of the Company and the common interest of shareholders as needed under the scope permitted by laws andregulations and the Articles of Incorporation focusing on the intention of shareholders, and it is not intended to undermine
the shareholders’ common interests or preserve the positions of the Company officers.
(5) Research and development activities
Not applicable.

(6) Major facilities
The new installation of the important facilities that had been planned as of the end of the prior year and completed during theconsolidated first quarter of the current year are as listed below.

Name of company
Coca-Cola Bottlers Japan Inc.

Name of office / site (location) Name of business segment
Branches / (-)

Beverage business

Facility description
Vending machines/coolers

Amount(millions of yen)
4,184

Completed in
March 2023

Note: Consumption tax is not included in the above amounts.

3. Significant management contracts
There was no decisions or conclusions for significant management contracts in the first quarter of the current fiscal year.

－7－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 3. Status of the filing company
1. Status of Shares(1) Total number of shares① Total number of shares
Class

Total Number of Authorized Shares

Common shares

500,000,000

Total

500,000,000② Issued shares
No. of issued shares as of endof First Quarter（March 31,2023）

Class

No. of issued shares as offiling date
（May 15, 2023）

Name of listed stock
exchange or registeredauthorized financial
instruments firms`
association

Details

Commonshares206,268,593

206,268,593

Tokyo Stock Exchange（Prime Market）

100 per unit shares

Total

206,268,593

206,268,593--(2) Status of stock acquisition rights① Status of share options
Not applicable.
② Other stock acquisition rights
Not applicable.
(3) Status of exercised moving strike convertible bonds
Not applicable.
(4) Total number of issued shares, transition of capital
Date

Increase/decrease in total
no. of issued shares(thousand share)

January 1, 2023 –March 31,2023－

Balance of total no. Increase/ decrease of
Capital balanceof issued shares
capital(Millions of yen）
(thousand share） (Millions of yen)
206,269－(5) Major shareholder status
Not applicable as this is the first quarter of the current year.

－8－

15,232

Increase/decrease ofcapital reserve(Millions of yen)

Capital reservebalance(Millions of yen)－

108,167

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(6) Status of voting rights① Issued shares
As of March 31,2023
Class

Number of shares

Number of votes

Details

Non-voting shares

－

－

－

Shares with restricted voting right (Treasury Shares)

－

－

－

Shares with restricted voting right (Others)

－

－

－

－

－

Shares with full voting rights (Treasury Shares)

Common shares

26,929,100

Shares with full voting rights (Others)

Common shares

178,560,600

Odd lot shares

Common shares

778,893－－

206,268,593－－

Total number of issued shares

1,785,606－

Voting rights of all shareholders

1,785,606－－(Note): “Shares with full voting rights (Others)” includes 2,300 shares in JASDEC’s name (23 voting rights).

② Treasury Shares
As of March 31,2023
Name of owner

Coca-Cola Bottlers
Japan Holdings Inc.

Address of owner

No. of shares
owned under own
nameNo. of shares
owned underothers’ name

Total number ofshares owned

Ratio of shares owned
against total no. of issued
shares (%)

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

26,929,100－

26,929,100

13.06

－

26,929,100－

26,929,100

13.06

Total

2. Status of Officers
Not applicable.

－9－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Section 4 Accounting status
1. Preparation of Accounting methods for the quarterly consolidated financial statements
The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting" based on the Ordinance on the Terminology, Forms, and Preparation
Methods of Quarterly Consolidated Financial Statements Article 93 (Cabinet Office Ordinance No. 64 of 2007).

2. Audit certification
The Company’s condensed quarterly consolidated financial statements for the first quarter of the current year (January 1, 2023
to March 31, 2023) and the first three-month period of the current year (January 1, 2023 to March 31, 2023) have been reviewed
by Ernst & Young ShinNihon LLC based on the provisions of Article 193-2 Paragraph 1 of the Financial Instruments and Exchange
Act.

－10－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

1. Condensed Quarterly Consolidated Financial Statements and Notes(1) Condensed Quarterly Consolidated Statement of Financial Position
Notes

AssetsCurrent assets:
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Other current assets
Total current assets
Non-current assets:
Property, plant and equipment
Right-of-use assets
Intangible assets
Investments accounted for using the equity
methodOther financial assets
Deferred tax assets
Other non-current assets

99Total non-current assets
Total assets－11－(Millions of yen)
As ofMarch 31,2023

As ofDecember 31, 2022

84,074
103,346
71,051
542
13,10877,77997,921
76,830131
14,035272,122

266,696

425,009
21,841
65,865

420,829
20,69965,285322

324

15,88820,581
5,110
554,615

16,50324,398
4,760
552,798

826,737

819,494

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

As ofDecember 31, 2022

(Millions of yen)
As ofMarch 31,2023

Liabilities and equity
Liabilities
Current liabilities:
108,254
1,000
5,122
654
1,272
20,339136,641

115,212
1,000
4,960
457
1,048
18,784141,462

155,701
18,146
8
17,817
1,761
17,157
3,147
213,737

155,221
17,128－18,286
1,761
17,082
3,167
212,646

Total liabilities

350,378

354,108

Equity:Capital stock
Capital surplus
Retained earnings
Treasury shares
Accumulated other comprehensive income

15,232451,264
94,209(85,667)
1,177

15,232
451,386
83,266(85,668)
1,022

476,216142

465,238147

476,358
826,737

465,385
819,494

Trade and other payables
Bonds and debts
Lease liabilities
Other financial liability
Income taxes payable
Other current liabilities
Total current liabilities
Non-current liabilities:
Bonds and debts
Lease liabilities
Other financial liability
Net defined benefit liabilities
Provisions
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities

9
9

9
9

6

Equity attributable to owners of parent
Non-controlling interests
Total equity
Total liabilities and equity－12－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(2) Condensed Quarterly Consolidated Statements of Income【First three -months period of this fiscal year】(Millions of yen)
Notes

Revenue
Cost of sales
Gross profit
Selling and general administrative expenses
Other income
Other expenses
Investment income on equity method
Operating loss
Financial income
Finance expenses
Loss for the period before income taxes
Income tax benefit
Net loss for the period

788Net loss for the period attributable to
Owners of parent
Non-controlling interests
Loss per share

10

－13－

Three months ended
March 31, 2022

Three months ended
March 31,2023

168,853
96,84272,011
84,892
5,988
2,800
22
(9,670)20
381(10,031)(3,467)(6,564)

182,063
103,32278,74188,002
1,309
1,214
8
(9,160)170
162(9,151)(2,697)(6,454)(6,568)5(6,459)5(36.62)(36.02)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(3) Condensed Quarterly Consolidated Statements of Comprehensive Income【First Three -months period of this fiscal year】(Millions of yen)
Notes

Net loss for the period
Other comprehensive income:Items that will not be reclassified subsequently to income orloss:
Net changes in financial assets measured at fair value throughother comprehensive income

Three months ended
March 31, 2022

Three months ended
March 31,2023(6,564)(6,454)

76

36

76

36

Subtotal
Total other comprehensive income for the period
Total comprehensive income (loss) for the period

1,162
1,162
1,239
(5,325)68
68
104(6,350)Comprehensive income (loss) attributable to:
Owners of parent
Non-controlling interests(5,330)5(6,355)
5

Subtotal
Items that may be reclassified subsequently to income:Cash flow hedges－14－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(4) Condensed Quarterly Consolidated Statements of Changes in Equity
Three months ended March 31,2022(Millions of yen)
Equity attributable to owners of the parent

Notes
Balance as of January 1, 2022

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares

Accumulated othercomprehensive
income (loss)

Noncontrollinginterests

15,232450,832

109,273(85,661)2,644

492,320131

492,451－－(6,568)－－(6,568)

5(6,564)

－

－

－

－

1,239

1,239

－

1,239

－

－

(6,568)－

1,239(5,330)5(5,325)－－(4,484)－－(4,484)－(4,484)

－

－

－

(1)

－

(1)

－

(1)

－

125

－

－

－

125

－

125

－

－

3

－

(3)

－

－

－

－

－

－

－

(252)

(252)

－

(252)

－

125

(4,480)

(1)

(256)

(4,611)－(4,611)

15,232450,958

98,224(85,662)3,627

482,379136

482,515

Total

Total

Comprehensive income (loss) for the period
Net loss for the period
Other comprehensive income
Total comprehensive income (loss) for the period
Transactions with owners
Dividends of surplus

6

Purchase of treasury stock
Transactions of share-based payment
Reclassification from accumulated othercomprehensive income to retained earnings
Reclassification from accumulated othercomprehensive income (loss) to non-financial
assetsTotal transactions with owners
Balance as of March 31, 2022

Three months ended March 31, 2023
(Millions of yen)
Equity attributable to owners of the parent

Notes
Balance as of January 1, 2023

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares

Accumulated othercomprehensive
income (loss)

Noncontrollinginterests

15,232451,264

94,209(85,667)

1,177

476,216142

476,358－－(6,459)－－(6,459)5(6,454)

－

－

－

－

104

104

－

104

－

－

(6,459)－104(6,355)

5(6,350)－－(4,484)－－(4,484)－(4,484)

－

－

－

(1)

－

(1)

－

(1)

－

121

－

－

－

121

－

121

－

－

(1)

－

1

－

－

－

－

－

－

－

(260)

(260)

－

(260)

－

121

(4,484)

(1)

(259)

(4,623)－(4,623)

15,232

451,386

83,266(85,668)

1,022

465,238147

465,385

Total

Total

Comprehensive income (loss) for the period
Net loss for the period
Other comprehensive income
Total comprehensive income (loss) for the period
Transactions with owners
Dividends of surplus
Purchase of treasury stock
Transactions of share-based payment
Reclassification from accumulated othercomprehensive income to retained earnings
Reclassification from accumulated othercomprehensive income (loss) to non-financial
assetsTotal transactions with owners
Balance as of March 31, 2023

6

－15－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(5) Condensed Quarterly Consolidated Statements of Cash Flows(Millions of yen)Three months ended
March 31, 2022

Notes

Three months ended
March 31,2023

Cash flows from operating activities
Loss for the period before income tax benefit(10,031)(9,151)

Adjustments for:
Depreciation and amortization

11,40911,415

－

7

(222)

(51)

(10)

(6)

217

160

Impairment loss
Change in allowance for doubtful accounts(decrease)
Interest and dividends income
Interest expenses
Share of loss(income) of entities accounted for using
equity method
Gain on sale of property, plant and equipment
Loss on disposal and sale of property, plant andequipment(Increase) Decrease in trade and other receivables

(22)

(8)

(3,680)(1,128)78263

15,0495,436(Increase) Decrease in inventories(3,888)(5,779)(Increase) Decrease in other assets

954

(53)

3,230

10,504(Decrease) Increase in trade and other payables(Decrease) Increase in net defined benefit liabilities

488

470

(Decrease) Increase in other liabilities

796(2,576)

Others399(20)

14,766

9,483

0

1

SubtotalInterest received
Dividends received

10

6

(225)

(216)

(1,588)(1,213)0

112,964

8,062(10,388)(10,002)

4,794

1,938

Purchases of other financial assets

(6)

(5)

Proceeds from sale of other financial assets

167Interest paid
Income taxes paid
Income taxes refund
Net cash (used in) generated from operating activities

Cash flows from investing activities
Acquisitions of property, plant and equipment andintangible assets
Proceeds from sales of property, plant and equipment
and intangible assets

Other
Net cash (used in) generated from investing activities

－16－

(35)

1

(5,619)(8,062)

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(Millions of yen)
Notes

Three months ended

Three months ended

March 31, 2022

March 31,2023

Cash flows from financing activities(38)(Decrease) Increase in short-term loans payable
Repayments of long-term loans payable
Dividends paid

6

Purchases of treasury stock

－

(565)

(500)

(4,484)(4,484)(1)(1)

Repayments of lease liabilities(1,544)(1,311)

Net cash used in financing activities(6,632)(6,295)713(6,295)

Cash and cash equivalents at the beginning of the year

110,497

84,074

Cash and cash equivalents at the end of the period

111,210

77,779Net change in cash and cash equivalents－17－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Notes to consolidated financial statements
1. Introduction
Coca-Cola Bottlers Japan Holdings Inc. (hereinafter referred to as “the Company”) is a holding company located in Japanand is listed on the Prime Market of the Tokyo Stock Exchange. Under the Coca-Cola brand, the Company and its subsidiaries(collectively, the "Group") engage in purchases, sales, bottling, packaging, distribution and marketing of carbonated beverages,
coffee beverages, tea-based beverages, mineral water, alcohol and other soft drinks in Japan.
The Group’s consolidated financial statements consist of the Company, subsidiaries and associates. The consolidated
financial statements were approved by our Representative Director & President, Calin Dragan and our Representative Director,
Vice President and Chief Financial Officer (Head of Finance), Bjorn Ivar Ulgenes on May 15, 2023 and take into account events
after the reporting period to that date (see Note 11, "Subsequent events").
2. Basis of preparation
The Company’s condensed quarterly consolidated financial statements have been prepared in accordance with International
Accounting Standards Article 34 "Interim Financial Reporting" based on Article 93 of the Ordinance on the Terminology, Forms,
and Preparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Ordinance No. 64 of 2007), upon
meeting the requirements of a designated international accounting standard specified company as set forth in Article 1-2 of theaforementioned Ordinance.
Condensed quarterly consolidated financial statements should be used in conjunction with consolidated financial statements
for the previous year as they do not include all the information required in the annual consolidated financial statements.
Condensed quarterly consolidated financial statements have been prepared on the basis of cost except for measurement at fairvalue.
Condensed quarterly consolidated financial statements are stated in Japanese yen. All condensed quarterly consolidated
financial information is rounded to the nearest million yen unless otherwise stated.
3. Significant accounting policies
The significant accounting policies applied by the Group in the condensed quarterly consolidated financial statements are thesame as the accounting policies applied in the consolidated financial statements for the previous year.
Income tax benefit for the first quarter of 2023 has been calculated on the basis of the annual estimated effective tax rate.
4. Critical accounting judgments, estimates and assumptions
In preparing the condensed quarterly consolidated financial statements in accordance with IFRS, management is required tomake judgments, estimates and assumptions that affect the application of the Group’s accounting policies and the reported
amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. The estimates and theassumptions underlying the estimates are continually reviewed and are based on historical experience and other factors,
including future events, which are believed to be reasonable under the circumstances. Accounting estimates are based on themost appropriate information at the time the condensed quarterly consolidated financial statements are filed. Although theimpact of COVID-19 infection is expected to remain uncertain, accounting estimates are based on the assumption that traffic is
recovering gradually. If there are changes to any future estimates, the impact of the revision is recognized in the condensed
quarterly consolidated statements of income and condensed quarterly consolidated statements of comprehensive income
subsequent to the reporting period in which they are revised.
Accounting judgments, estimates and assumptions that have a significant impact on the condensed quarterly consolidated
financial statements will be revised based on the same concept as in the consolidated financial statements for the previous
consolidated fiscal year.
5. Segment Information
The Group has a single segment as Beverage Business. Refer to Note 7 Revenue for the products and services of thereported segment.
－18－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

6. Dividends
Dividends paid for the first quarter of the previous fiscal year and the first quarter of the current fiscal year are as follows:First three -month of the prior year (January 1, 2022 – March 31, 2022)
Resolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per
share
(Yen)

Dividend record date

Effective dateOrdinary share

4,484

25

December 31, 2021

March 25, 2022

March 24, 2022
Ordinary General Meetingof Shareholders

First three-month of the current year (January 1, 2023 – March 31,2023)
Resolution

Type of shares

Total amount ofdividends paid
(Millions of yen)

Dividends per share(Yen)

Dividend record date

Effective dateOrdinary share

4,484

25

December 31, 2022

March 29, 2023

March 28, 2023
Ordinary General Meetingof Shareholders

7. Revenue
Disaggregation of revenue
The Group's organizational structure is based on the single beverage business segment. Discrete financial information isavailable for the components of the Group, and operating results are regularly reviewed by the Board of Directors (chief
operating decision maker) to make decisions about the allocation of business resources. As such, the earnings recorded underthe beverage business is presented as Revenue.
In the Beverage business, the Group purchases, manufactures, and sells carbonated beverages such as Coca-Cola, coffee
beverages, black tea beverages, mineral water, alcohol, and other beverages in Japan. Revenue for sales of these products is
recognized primarily at the time of delivery as the customer has obtained control over the products and the performanceobligation is satisfied.
Payments relating to such performance obligation are received generally within two months of delivery. The contracts
with customers do not include any material financial elements.
(Millions of yen)Three months ended
March 31, 2022

Three months ended
March 31, 2023

168,8467

182,059
4

168,853

182,063

Revenue
Revenue from contracts with customers
Beverage
Other
Total

－19－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

8. Other income and other expenses
The breakdown of other income and other expenses are as follows:(Millions of yen)Three months ended
March 31, 2022
Other income
Gains on sales of property, plant and equipment(Note 1)
Rent income

Three months ended
March 31,2023

3,680

1,128

75

55

2,011

－

223

126

Total

5,988

1,309

Impairment loss
Losses on sales and disposals of property, plantand equipment
Transformation related expenses (Note 3)

－

7

180

340

10

787

Special retirement allowance (Note 4)

431

52

Temporary paid leave expenses (Note 5)

2,146

－

34

29

2,800

1,214

Government subsidies (Note 2)
Other

Other expenses

Other
Total

(Note) 1. Gains on sales of property, plant and equipment represent gains on sales of land and other assets for the first quarter of theprevious fiscal year and the first quarter of the current fiscal year.
2. Government subsidies are grants to cover employee’s temporary leave cost, etc. due to the spread of COVID-19 for the firstquarter of the previous fiscal year.
3. Transformation related expenses are consulting expenses related to measures aimed at building an efficient new systemwith the aim of creating more value and further improving productivity for the sustainable growth of the Group for the firstquarter of the previous fiscal year and the first quarter of the current fiscal year.
4. Special retirement allowances are allowances and outplacement support expenses incurred in the implementation of thevoluntary retirement program for the first quarter of the previous fiscal year and the first quarter of the current fiscal year.
5. Temporary paid leave expenses for the first quarter of the previous fiscal year are the allowance associated with employee’s
temporary leave to respond to the impact to our business by the economic contraction and to secure the safety and healthof our employee following the state of emergency declaration due to the spread of COVID-19. The expenses are 90 million
yen from cost of sales and 2,056 million yen transfer from selling and general administrative expenses to other expenses,
respectively.

－20－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

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

－21－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

The valuation techniques and significant unobservable inputs used in Level 3 fair value measurement are as follows:
As of December 31, 2022
Type

Financial instrument measured atfair value through othercomprehensive income(Securities)

Valuation techniqueSignificant unobservable inputs
EBIT Multiple: 6.2-7.9 times

Comparison of

EBITDA Multiple: 8.2 times

similar companies

PER: 6.7 – 32.9 times
PBR: 0.9-2.2 times

Interactions between significant unobservable
inputs and fair value measurement
Estimated fair value increases (decreases)
when equity indices of comparable listedcompanies of the target are high (low)As of March 31,2023
Type

Financial instrument measured atfair value through othercomprehensive income(Securities)

Valuation techniqueSignificant unobservable inputs
EBIT Multiple: 6.2-8.0 times

Comparison of

EBITDA Multiple: 8.7 times

similar companies

PER: 6.7-33.1 times
PBR: 0.9 – 2.2 times

EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDA
PER: Price Earnings Ratio
PBR: Price Book Value Ratio－22－Interactions between significant unobservable
inputs and fair value measurement
Estimated fair value increases (decreases)
when equity indices of comparable listedcompanies of the target are high (low)This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

(c) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis is as follows:
As of December 31, 2022
(Millions of yen)
Level 1

Level 2

Level 3

Total

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

－

548

－

548

－

548

－

548

8,701
－

－
－

3,046

11,74789

89

Subtotal

8,701

－

3,135

11,836

Total

8,701

548

3,135

12,385

－

662

－

662

－

662

－

662

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

Financial liabilities
Financial instrument measured at fair value
through profit or loss:
Derivative liabilities
Total
As of March 31,2023(Millions of yen)
Level 1

Level 2

Level 3

Total

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

121

－

121

－

121

－

121

8,728
－

－
－

3,063
89

11,791
89

Subtotal

8,728

－

3,152

11,880

Total

8,728

121

3,152

12,001

－

457

－

457

－

457

－

457

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

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

－23－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 is as follows:(Millions of yen)
Financial assets measured at fair value through othercomprehensive income
Balance at January 1, 2022

4,423

Disposals
Gains recognized in other comprehensive income

(11)
(554)

Other

2

Balance at March 31, 2022

3,860

Balance at January 1, 2023

3,135

Disposals
Losses recognized in other comprehensive income(8)25

Balance at March 31,2023

3,152

Gains or losses recognized in other comprehensive income are recognized in "Net changes in financial asset
measured at fair value through other comprehensive income" in the consolidated statements of comprehensive income.
(d) Financial instrument measured at amortized cost
The components of carrying amount and fair value of financial instruments measured at amortized cost are as follows:
As of December 31, 2022
(Millions of yen)
Carrying amountLong-term loans payable and bonds

156,701

Fair value

Difference

154,389

2,312

As of March 31,2023(Millions of yen)
Carrying amountLong-term loans payable and bonds

156,221

Fair value
155,143

Difference
1,078

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

－24－This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

10. Earnings per share
The calculation of basic earnings per share attributable to owners of the parent is based on the quarterly net income
attributable to owners of the parent and the weighted average number of common shares issued.
The basis for calculating the basic earnings per share for the First quarter of the current year and prior year is as follows:

Three months ended
March 31, 2022

Three months ended
March 31,2023

Loss attributable to owners of parent (millions of yen)

(6,568)(6,459)Weighted-average shares of ordinary share outstanding (inthousands)

179,344

179,340

Loss per share (yen)(36.62)(36.02)

Note: In the first quarter of the previous fiscal year and the first quarter of the current fiscal year, as 741 thousand and 1,033 thousand
shares of stock-based compensation were accounted for antidilutive “diluted earnings per share” is not shown.
11. Subsequent events
Not applicable.

－25－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

2. Others
Not applicable.

－26－

This is an English translation of the original Quarterly Report (“Shihanki Hokokusho”) ended March 31, 2023 pursuant to the Japanese Financial Instrument andExchange Law. In the event of any discrepancy between Shihanki Hokokusho and this English translation, Shihanki Hokokusho shall prevail.

Part II Information of guarantor companies of the filing company
Not applicable.

－27－