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

Annual Securities Report（Article 24-4-7, Paragraph 1 of the Financial Instruments andExchange Act）
Fiscal Year

From January 1, 2023thto December 31, 2023

(66 Fiscal Term)

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

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

Table of Contents[Cover Page]

Part I. Corporate Information .................................................................................................................................................................... 4
Section I. Corporate overview ............................................................................................................................................................... 4
1. Changes in key management indicators............................................................................................................................................. 4
2. History ............................................................................................................................................................................................... 6
3. Description of business...................................................................................................................................................................... 7
4. Information on affiliates .................................................................................................................................................................... 9
5. Employees ....................................................................................................................................................................................... 10
II. Business overview .......................................................................................................................................................................... 12
1. Management policy, management environment and issues to be addressed .................................................................................... 12
2. Sustainability Approach and Measures ............................................................................................................................................ 14
3. Risk factors...................................................................................................................................................................................... 23
4. Management's analysis of financial condition, results of operations and cash flows ....................................................................... 26
5. Important agreements for business .................................................................................................................................................. 31
6. Research and development activities ............................................................................................................................................... 31
III. Information about facilities ........................................................................................................................................................... 32
1. Overview of capital expenditures .................................................................................................................................................... 32
2. Major facilities ................................................................................................................................................................................ 32
3. Planned additions, disposals facilities ............................................................................................................................................. 33
IV. Information about reportable segment ........................................................................................................................................... 34
1. Information about shares ................................................................................................................................................................. 34
2. Acquisition of treasury share ........................................................................................................................................................... 39
3. Dividend policy ............................................................................................................................................................................... 40
4. Corporate governance...................................................................................................................................................................... 41
V. Accounting information .................................................................................................................................................................. 69
1. Consolidated financial statements ................................................................................................................................................... 70
2. Financial Statements (Non-consolidated) ...................................................................................................................................... 136
Ⅵ. Overview of operational procedures for shares ........................................................................................................................... 148
Ⅶ. Reference information about the Company ................................................................................................................................ 149
1. Information about parent company of reportable segment ............................................................................................................ 149
2. Other reference information .......................................................................................................................................................... 149
Part Ⅱ. Information about company which provides guarantee to reportable segment .......................................................................... 150

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

[Cover Page]

Securities Report[Underlying article]

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

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

March 27, 2024

[Fiscal year]

66th fiscal term (from January 1, 2023, to December 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 Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of
the Kanto Local Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments
and Exchange Act of Japan. In the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken
Hokokusho shall prevail.
The Independent Auditor`s report that is included in Yukashoken Hokokusho is not translated to English. Therefore, it is not includedin this English translation.
For the purpose of this Annual Securities Report, unless context indicates otherwise, the “Company,” “we,” and “CCBJH” refer toCoca-Cola Bottlers Japan Holdings Inc., and the “Group” refers to the Company and its subsidiaries.

3

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

Part I. Corporate Information
Section I. Corporate overview
1. Changes in key management indicators(1) Consolidated business indicators
International Financial Reporting Standards
Issuance

62nd

63rd

64th

65th

66th

December 2019 December 2020 December 2021 December 2022 December 2023

Fiscal year

Revenue(Millions of yen)

890,009791,956

785,837

807,430

868,581Net income (loss) for the year before
income taxes(Millions of yen)

(58,922)(12,065)(21,683)(12,491)

3,224

Net income (loss) for the year
attributable to owners of the parent(Millions of yen)

(57,952)(4,715)(2,503)(8,070)

1,871(Millions of yen)

(52,164)(2,214)780(5,005)2,209(Millions of yen)

505,999

501,643492,320476,216

469,847(Millions of yen)

952,444939,603

867,111826,737

844,832

Equity attributable to owners of theparent(Yen)

2,821.27

2,797.03

2,745.12

2,655.38

2,618.49

Earnings (Losses) per share(Yen)(322.22)(26.29)(13.96)(45.00)10.43

Diluted earnings per share

(Yen)

－

－

－

－

10.36

Ratio of equity attributable to owners of
the parent

(%)

53.1

53.4

56.8

57.6

55.6

Ratio of income to equity attributable ofthe parent(%)(10.7)

(0.9)

(0.5)

(1.7)

0.4

(Times)(8.7)(61.2)(94.6)(31.9)

194.2

Cash flows from operating activities(Millions of yen)

42,62943,71635,982

42,717

59,102

Cash flows from investing activities(Millions of yen)

(68,308)(52,076)

15,271(23,090)(14,287)

Cash flows from financing activities(Millions of yen)

73,994

20,912(67,134)(46,050)(15,229)

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

113,825

126,378

110,497

84,074

113,660

16,95916,27415,083

14,48414,010[3,578][4,008][3,777][3,416][3,163]Comprehensive income(loss) attributableto owners of the parent
Equity attributable to owners of theparentTotal assets

PER

Number of the employees[Average number of temporary workers](Note)

1.
2.
3.
4.
5.

(People)Diluted earnings per share through 63rd fiscal years are not shown in the above table, as there are no residual shares. Diluted earnings per share is not presented,
as the effects of dilutive share on earnings per share are anti-dilutive in the 64th and 65th fiscal year.
The above indicators are based on the consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”).
Fractions of one million yen are rounded to the nearest million, and percentages are rounded to the nearest unit.
In the 63rd fiscal year, the businesses of Q’sai and its subsidiaries were classified as discontinued operations as a result of the decision made in December 2020
to sell all shares in Q’sai Co. Ltd. held by the Company. Accordingly, the Revenue and the Profit before income tax for the 62nd fiscal year have been reclassified
to the amounts for continuing operations excluding discontinued operations.
We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust from 66th fiscal year. The Company shares held by these trusts are includedin the treasury shares to be deducted from end of years’ shares and the average number of shares during the year for calculating the amount of Equity attributableto owners of the parent per share, Earnings (Losses) per share, and Diluted earnings per share.

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

(2) Management indicators of the Company
Fiscal term

62nd

63rd

64th

65th

66th

Fiscal year-end

December 2019

December 2020

December 2021

December 2022

December 2023

Operating revenue(Millions of yen)

26,517

19,202

5,797

5,640

6,052

Recurring income(Millions of yen)

20,273

14,345

1,201

1,869

1,301

Net income(Millions of yen)

20,702

15,742

18,395

1,562

1,349

Capital share(Millions of yen)

15,232

15,232

15,232

15,232

15,232

Total number of issued
shares(Thousands of

206,269

206,269

206,269

206,269

206,269

Net assets(Millions of yen)

331,139

342,391

351,812344,402336,844

Total assets(Millions of yen)

549,683

587,306

543,410

502,941

498,355(Yen)

1,846.32

1,909.09

1,961.66

1,920.38

1,877.26

50.00

25.00

50.00

50.00

50.00

(25.00)(－)(25.00)(25.00)(25.00)Net assets per share

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

Net profit per share(Yen)

115.11

87.77

102.578.71

7.52

Diluted earnings per
share

(Yen)

－

－

102.33

8.68

7.47

Ratio of equity to asset

(%)

60.2

58.3

64.7

68.5

67.6

Ratio of return on
equity

(%)

6.2

4.7

5.3

0.4

0.4

(Times)

24.2

18.3

12.9

164.9

269.3

(%)

43.4

28.5

48.7

573.9

664.9

－

－

－

－

－

[－]

[－]

[－]

[－]

[－]

(%)

70.3

42.1

36.3

40.4

68.5

(%)

[99.2][106.6][120.2][117.2][178.9]Highest share price

(Yen)

3,490

3,070

2,131

1,655

2,186

Lowest share price

(Yen)

2,157

1,462

1,236

1,311

1,267

PER
Dividend payout ratio
Number of theemployees[Average number of
temporary workers]
Total Shareholder
Return[Comparative index:
TOPIX Net Total
Return Index](Note)

1.
2.
3.
4.
5.
6.

(People)Diluted earnings per share through 63rd fiscal years are not shown in the above table, as there are no residual shares.
The figures of less than one million yen have been rounded off to the nearest million yen.
The number of employees has been omitted since we are holding company.
The highest and lowest share prices are from Tokyo Stock Exchange Prime Market since April 4th,2022.
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) and others were applied from the
beginning of the 65th fiscal year. There is no impact on key management indicators for the 65th term.
We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust. The Company shares held by these trusts areincluded in the treasury shares to be deducted from end of years’ shares and the average number of shares during the year for
calculating the amount of net assets per share, net profit per share, and diluted earnings per share.

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

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

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

Jun. 1962

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

Jul. 1962

Began sales

Mar. 1963

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

Apr. 1963

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

Sep. 1972

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

Jul. 1973

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

Jun. 1994

Listed on the Fukuoka Share Exchange

Nov. 1996

Listed on the second section of Tokyo Stock Exchange

Jun. 1998

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

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

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

Jul. 1999

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

Apr. 2001

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

Feb. 2002

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

Apr. 2002

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

Jul. 2002

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

Oct. 2002
Jan. 2005

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

Jul. 2006

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

Apr. 2007

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

Jan. 2008
Apr. 2008
Jan. 2009

Oct. 2010
Apr. 2013

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

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

Jan. 2010

May. 2015

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

Apr. 2017

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

Jan. 2018
Feb. 2021

6

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

3. Description of business
The Group’s corporate group consists of the Company, 9 subsidiaries, 1 affiliate with Beverage business as its primary
operations. In addition, The Coca-Cola Company is an affiliated company. The following diagram sets out the positioning andbusiness of each company in the Coca-Cola Bottlers Japan Holdings Group’s (the “Group”) principal business activities. Businesscategories correspond to segment categories.
Please Note that the Company is a specified listed company as defined in Article 49, Paragraph 2 of the Cabinet Office Order on
Restrictions on Securities Transactions. Thus, the criteria for assessing the material facts under the insider trading regulations are
determined based on consolidated figures.
Beverage business(Manufacture and sale of Coca-Cola and beverages)
a. Sales of beverages
Coca-Cola Bottlers Japan Inc., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Coca-Cola Bottlers Japan
Business Services Inc., etc.
b. Manufacture of beverages
Production of beverages is engaged by Coca-Cola Bottlers Japan Inc.,(Business related to vending machines)
It is engaged by Coca-Cola Bottlers Japan Inc., etc.
(Procurement of ingredients and materials)
It is engaged by Coca-Cola Bottlers Japan Inc.
(Development, maintenance, and operations of information systems)
They are engaged by Coca-Cola Bottlers Japan Inc.
The Coca-Cola Company engages in sales of beverages (including beverage base).

7

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

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

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

4. Information on affiliates(1) Consolidated Subsidiaries
CommonsharesPrincipal businesses(Millions ofyen)% Of voting
rights interests

Name

Address

Relation

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

Minato-ku,
Tokyo

100

Manufacture and saleof beverages and
foods

100.0

Interlocking directorate: yes
Leasing of facilities: yes

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

Shinjukuku,
Tokyo

80

Operation of vending
machines

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

Toshima-ku,
Tokyo

100

Sale of beverages
and foods

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

Minato-ku,
Tokyo

80

On-siteadministration
related with sales ofbeverage/food

100.0(100.0)――――

Other 5 companies(Note)

1.
2.
3.

The figures in parentheses for the % of voting rights interests column indicates the % of indirect voting interests, which is a part of
the total voting interest.
It applicable to significant subsidiaries.
As for Coca-Cola Bottlers Japan Inc., the proportion of net sales (excluding internal sales among consolidated companies) toconsolidated sales exceeds 10%.

Major income statement information.
(JGAAP)(1) Net revenues(2) Recurring income(3) Net income(4) Net assets(5) Total assets

824,001
7,338
14,267419,249
695,982

million yen
million yen
million yen
million yen
million yen(2) Equity Method Affiliates
Name
Resources Co., Ltd.
(Note)(Note)

Address

Common shares(Millions of yen)Takamatsu-shi,
Kagawa40

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

Relation

44.0(44.0)――――

The figures in parentheses for the % of voting rights interests column indicates the % of indirect voting interests, which is a part of thetotal voting interest.

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

(3) Other Affiliated Companies
Name

Address

The Coca-Cola Company(Note) 1, 2AtlantaGeorgia
U.S. A(Note)

1.
2.

% of voting rights
Common shares(Millions of Principal businesses interests in the
Relationdollars
Company（%）
Sales ofbeverages
18.55
1,760
Interlocking directorate: yes(including(18.55)concentrate)

The figures in parentheses for the % of voting rights owned are indirect ownership percentage.
“Yukashoken Todokedesho” (Securities Registration Statement) or “Yukashoken Hokokusho” (Annual Securities Report) has been
submitted.

5. Employees(1) Consolidated Basis
As of December 31, 2023
Segment

Number of employees

Beverage business
Total(Note)

1.
2.

14,010[3,163]14,010[3,163]The number of employees excludes employees seconded from the Group to outside the Group and includes employees who are seconded
from outside the Group to the Group and the number of temporary employees is shown separately in parentheses as the average number
over one year.
Temporary employees include part-timers and casual workers, but not workers dispatched by staffing companies.

(2) Parent-alone Basis
Descriptions are omitted because the Company is a holding company(3) Labor Unions
The Group has the Coca-Cola Bottlers Japan Group East Labor Union and the Coca-Cola Bottlers Japan Group West Labor
Union, in addition to labor unions formed in certain subsidiaries, and the total number of members of the labor unions was
12,202 as of December 31, 2023. The Labor Union-management relations have remained cordial.

(4) Female Manager Ratio, Percentage of Male Employees Taking Childcare Leave, and Gender Wage Gap
Consolidated (The Company and Major Consolidated Subsidiaries) *1
Gender Wage Gap (%) *2,4
Female Manager Ratio (%)*2

Percentage of Male
Employees Taking Childcare
Leave (%) *3

All Employees

Permanent Employees

Non-permanent
Employees

2021

2022

2023

2021

2022

2023

2021

2022

2023

2021

2022

2023

2021

2022

2023

6.1

6.6

7.4

60.2

67.5

83 3

71.6

71.7

73 1

84 1

84.0

84 2

86 1

87 2

88.7

Female Manager Ratio
The Group recognizes that a key issue in increasing the female manager ratio is the development of an environment that
fosters female managers and has been working to resolve this issue. In 2021, we launched the “Female People Development
Forum”, a forum for discussion on the discovery and development of the next generation of female leaders, set target ratiosof female managers for each function, and as a follow-up action, launched training programs for each level of division head,section head, and non-managerial positions, thereby enhancing our efforts on the institutional side. Furthermore, starting in
2023, we have established the internal “International Women's Week” to coincide with International Women's Day (March8), and have hosted sessions featuring female managers and speakers from other industries. We thereby encourage not only
female employees themselves but also the executive leadership teams and employees including division heads to discuss
women's careers and work styles, as well as the importance of promoting women to manager positions., Through these
efforts, significant progress has been made, including establishing the first female managers in organizations that previously
had no female managers. As a result, the Group's female manager ratio is increasing every year.
10This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In
the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Percentage of Male Employees Taking Childcare Leave
Based on the results of an internal survey that revealed male employees find it difficult to take childcare leave, the Grouphas been making efforts both in institutions and in the workplace environment. As for institutions, the deadline for taking
paid spousal childbirth leave was extended from within three months to within one year after childbirth. We inform eligible
employees and department members about such leave and encourage them to take it. As for the workplace environment, wehave distributed "Papa Aprons" to supervisors of male employees whose spouses are expecting a child and are working tofoster a culture where employees are simultaneously congratulated and encouraged to take leave during team meetings. In
addition, articles were published on our internal website featuring interviews with male employees who have taken leave fora month or longer and their supervisors. These interviews relate specific examples of what they considered important when
taking leave and what efforts were made to enable leave for longer periods. Through these efforts, we are working to raiseawareness among both male employees and their supervisors regarding the need to take childcare leave. As a result, thepercentage of male employees taking childcare leave is increasing every year.
Gender Wage Gap
The Group has an evaluation and compensation system that is commensurate with the roles and achievements of each
employee, which is to ensure that there is no wage gap due to gender among employees with the same role and the sameachievements. The numerical gap mainly comes from the difference in the composition of jobs and roles between genders. In
order to further close the gender wage gap, we will continue the aforementioned efforts to increase the number of female
managers.
Consolidated Subsidiaries Required Disclosure *6

2021

2022

2023

Percentage of Male
Employees Taking
Childcare Leave (%)
*3
2021
2022
2023

6.1

65

7.3

67.7

76.0

93.0

68.4

69.0

69.8

77.5

78.7

78.7

76.1

78.4

77 9

0.0

0.0

0.5

50.0

57.3

75.2

56.8

69.0

68.4

78.7

78.7

79.1

94.8

108.6

108.5

0.0

25

2.6

―
(※5)

100.0

―
(※5)

50.5

49.5

51.2

71.6

69.2

64.5

95.4

94.8

97 1

14.2

14.5

15.8

78.9

76.9

75.0

78.6

69.9

70.5

88.5

84.7

84.2

91.1

89.9

99 3

Female Manager Ratio(%) *2Coca-Cola
Bottlers
Japan Inc.
Coca-Cola
Bottlers
Japan
Vending Inc.
FV JapanCo., Ltd.
Coca-Cola
Bottlers
Japan
Business
Services Inc.
(Note)

1.
2.
3.

4.
5.

6.

Gender Wage Gap (%) *2,4

2021

2022

2023

2021

2022

2023

Non-permanent
Employees
2021
2022
2023

All Employees

Permanent Employees

The data for “Consolidated (The Company and Major Consolidated Subsidiaries)” is calculated including Coca-Cola Bottlers Japan
Inc., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Coca-Cola Bottlers Japan Business Services Inc., Coca-Cola
Bottlers Japan Benefit, and Coca-Cola Customer Marketing Co , Ltd , in addition to the Company.
Data regarding the female manager ratio and the gender wage gap are calculated and disclosed based on the provisions of the Act on
the Promotion of Women’s Active Engagement in Professional Life (Act No. 64 of 2015).
The percentage of male employees taking childcare leave is calculated according to the method stipulated in Article 71-4, Item 2 of
the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers
Caring for Children or Other Family Members (Ordinance of the Ministry of Labor No. 25 of 1991), based on the provisions of the
Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family
Members（Act No. 76 of 1991）.
Part-time workers are converted to a full-time worker equivalent based on their scheduled working hours.
FV Japan Co., Ltd. has no persons who are eligible for disclosure of the percentage of male employees taking childcare leave;
therefore, its data is shown as "－".
The data for the Company is not shown as it is a holding company and not in the scope of mandatory public announcement based on
the provisions of the Act on the Promotion of Women’s Active Engagement in Professional Life and the Act on Childcare Leave,
Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members.

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

II. Business overview
1. Management policy, management environment and issues to be addressed(1) Fundamental Management Policy of The Company
The CCBJH Group has established a corporate philosophy encompassing its ‘Mission,’ ‘Vision,’ and ‘Values.’
Our Mission is what we are in business for
Deliver happy moments to everyone while creating value
Our Vision illustrates what we want to be・ We are the preferred partner for our customers
・ We win in the market through sustainable growth・ We lead a learning culture with a commitment to grow・ We are the best place to work with pride for Coca-Cola
Our Values reflect what we keep in mind in our daily activities to realize our Mission and Vision
・Learning
・Agility
・Result-orientation
・Integrity
In 2023, we developed our corporate message, “We bottle happy moments.” to convey our core values and future aspirations
in a straightforward manner. At the same time, we announced “Vision 2028”, a strategic business plan that outlines ourbusiness goals to be achieved over the next five years and the measures to be implemented.
We strive to achieve "Vision 2028," our strategic business plan, by implementing activities based on our corporate
philosophy.
Corporate Message(2) Main targets
In our 5-year strategic business plan “Vison 2028” announced on August 9, 2023, we have set the following goals in orderto achieve sustainable profitable growth.

Revenue Growth: +2~3% CAGRBusiness Income Margin: 5%+, 45~50 billion yen
Transformation savings :25~35 billion yen
ROIC:5%+
In 2024, we aim to achieve further profit growth based on the strong results of 2023 and will work to implement a top-line
growth strategy centered on maximizing profits, promote further reforms, and build a business foundation that supports
profit growth.
Therefore, we expect consolidated revenue in fiscal year 2024 will be 882,400 million yen, an increase of 1.6% versus 2023
with benefits from price revisions, due to sales volume growth +0.5% versus previous year and improvements in mix andwholesale revenue per case. Consolidated business income is expected to be 10,000 million yen, an increase of 393.8%
versus previous year. Consolidated operating income is expected to be 11,900 million yen, an increase of 245.8% versus
previous year. Net income attributable to the owners of the parent is expected to be 6,900 million yen, an increase of 268.8%
versus previous year.

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

(3) Issues to be addressed by the Company
Regarding outlook for the total domestic NARTD beverage market, although the increase in traffic is expected to continue
to contribute to an increase in demand for beverages, the market will be affected by the cycling of the heat wave in 2023 anda decline in consumer sentiment due to domestic inflation, including price revisions for beverages, we expect a slightdecrease from 2023 on a volume basis in the beverage market in 2024. In addition, the outlook for commodity and utility
prices, package material prices, and exchange rates remains uncertain, so due to these external factors expected to increase
cost pressures, we expect the environment to remain challenging.
Under these circumstances, we have positioned 2024 as "a year to strongly build up profit," as the first year of the strategic
business plan "Vision 2028," announced in August 2023, and we will work on top-line growth strategy focused on profit
maximization, cost saving by promoting company-wide transformation and further strengthening the business foundation.
In the commercial area, we will focus on initiatives aimed at profitable top line growth, through investing in core
categories, strengthening our product portfolio through innovation, further transformation of vending channels leveraging
technology, thoroughly conducting commercial activities that emphasize profitability including price revisions andstrengthening strategic partnerships with key customers. Regarding initiatives by channel, in the important vending channel,
we will continue to push ahead with our key transformation initiatives such as placing new vending machines focusing on
investment efficiency, implement various measures to increase sales revenue per vending machine and investing intechnology foundation that will lead to future growth. In the over the counter channel, we will implement initiatives tailoredto the industry and characteristics of our customers, such as product development and sales floor expansion to meet
consumer needs and disciplined commercial activities including optimization of marketing investments. In the food service
channel, we will continue to work on expanding the line of our products by customers and optimization of sales equipment
and product lineup with emphasis on profitability. In January 2024, we implemented a reorganization centered on these threechannels, with the aim of speeding up decision-making and improving the driving force of each channel's growth strategy inthe commercial organization. In addition, as a strong partnership that will drive growth, we will continue to strengthen ourpartnership with Coca-Cola (Japan) Co., Ltd.
In the supply chain area, we will strive to further optimize our supply chain network by leveraging the strong infrastructure
built to date. Specifically, by increasing manufacturing capacity through improved plant productivity, building a flexible
manufacturing system, and optimizing the logistics network, we will promote a "local production for local consumption
model," manufacturing products in factories close to the place of consumption, pursue total optimization of the end-to-end
process, and reduce transport distance per case to reduce costs and address social issues. Also, by improving the accuracy of
the Sales and Operations Planning(S&OP) process and leveraging our mega-DCs, we aim for stable and low-cost supply. We
will also work to improve asset turnover through consolidation of sales and distribution centers, effective utilization ofexisting facilities, and reduction of product inventories by improving the accuracy of inventory management.
In the field of back office and IT, as part of our digital transformation (DX), we will further standardize and automate
business processes using technology, integrate various IT systems and data, and promote data-driven management. In
addition, we will improve ROIC (return on invested capital) as stated in "Vision 2028" by improving capital efficiency
through appropriate management of capital investment and improvement of the balance sheet. We will also focus onpromoting sustainability strategies and human capital management that contribute to sustainable growth.

13

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

2. Sustainability Approach and Measures
The Group's approach to sustainability and its initiatives are as follows.
Forward-looking statements are based on the Group's judgment as of the end of the current fiscal year under review.
(1)

GovernanceIn 2023 January, we established a Sustainability Committee to strengthen the system for developing policies and strategies

related to various issues including climate change and biodiversity, in line with our CSV Goals. On this committee, the executive
leadership teams discuss sustainability issues then communicate the decided direction and strategies to ensure all divisions carryout sustainable activities efficiently and comprehensively. In 2023, items such as environmental action plans, TCFD werediscussed. In addition, measures to address sustainability-related risks are an important priority for our Board of Directors, andwe take risk selection and growth potential into account when establishing management policies.
(Sustainability Committee promotion system in our group)(2)

Strategy
The mission of the CCBJH Group is to deliver happy moments to everyone while creating value. To achieve this, we have madecreating shared value (CSV) a cornerstone of management. This means enhancing both economic value through business growthand social value through the resolution of social issues. This is the basis of our sustainability strategy.
While promoting the Sustainability Framework agreed upon in the Coca-Cola System in Japan in 2019, we have also
determined that we need to respond to further changes in the social environment and have identified our own 13 materiality in
2023. These are mapped by materiality based on the degree of importance to stakeholders and the Company and organized into
"Key Themes in Sustainable Value Provision," "Key Themes in Sustainable Society," and "Key Themes in Sustainable
Organizational Management.” We are delivering initiatives throughout the value chain to resolve the materiality.

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

The CCBJH Group’s material issue and definitions
Key Themes in Sustainable Value Provision
Packaging and Recycling (Circular
Economy)Mitigation of and Adaptation to Climate
ChangeEmployee Development & Wellbeing

To achieve the Coca-Cola Company’s 2030 Global Vision World Without Waste, wewill work on activities such as light-weighting, horizontal recycling, and waste
reduction through the three pillars of design, collection, and partnerships. By doing
so, we contribute to the promotion of recycling of plastic and other materials in Japan.
To mitigate and adapt to climate change, we aim to reduce our environmental impact
through initiatives throughout the value chain, including the reduction of ourgreenhouse gas emissions.
We believe that employees are important assets in conducting sustainable business.
Therefore, in our human resource development system, we work to create a workplaceenvironment that maximizes and develops the potential of each employee. We focus
on our employee’s safety and their physical and mental well-being by measures suchas enhancing their work-life balance.

Key Themes in Sustainable Society
As a company whose main product ingredient is water, we strive to reduce, reuse,and properly treat water used in manufacturing. We also work with local
Water Stewardshipcommunities to conserve water resources in a sustainable manner to pass onabundant water resources to future generations.
We conserve biodiversity and achieve sustainable business by recognizing andSustainable Conservation of Biologicalreducing the impact on the natural environment and ecosystems whilst making
Resourcesbusiness decisions.
We contribute to consumer wellness by providing high value-added products and
Healthy Products/Services
services that contribute to the maintenance and promotion of health and nutrition.
We foster a culture that respects human rights, diversity, and fairness, and create anenvironment where each individual can maximize their abilities regardless of gender,
Diversity, Equity, and Inclusionage, disability, race, nationality, sexual orientation, gender identity or expression, orother attributes throughout the value chain.
Based on collaboration and communication with local communities and other
Contribution to Local Community
stakeholders, we engage in activities aimed at developing sustainable local
Development
communities and solving social issues. Through our business, we contribute to therevitalization of local economies.
Key Themes in Sustainable Organizational Management
In order to provide safe, high-quality, fresh, and refreshing products and services toour consumers, we implement strict quality systems and processes in all business
Product Quality and Safety
processes, from raw material procurement, manufacturing, distribution andtransportation to sales and service. In this way, we guarantee and improve the safety
and quality of our products.
We strive to build a system and structure that is safe and robust enough to minimize
the impact on our business in the event of any injury to employees and damage to
Resilience to Natural Disasters
facilities for manufacturing, logistics, sales operations, and business sites caused bylarge-scale natural disasters such as earthquakes and typhoons.
We strive to build and maintain a strong corporate governance structure to improve
management soundness and maximize corporate and shareholder value. In accordance
Corporate Governancewith the intent of the Corporate Governance Code, we strive to improve the skill setsof our directors and all employees, pursue an optimal organizational design for ourcompany, and further strengthen our governance.
We build a sustainable supply chain through the stable procurement of materials andSustainable Supply Chain
raw materials, addressing human rights and environmental issues in the supply chain,conducting appropriate transactions and responsible procurement.
We build our relationships with our consumers by ensuring responsible marketing of
our full beverage portfolio, including alcohol, ensuring compliance with all
Responsible Commercial Practicescommercial activities in line with laws and regulations. We provide our stakeholders
with access to useful and sufficient information on the health and nutrition of our
products through easy-to-understand communications.
(3)

Risk management
Risk management of Sustainability Approach and Measures e are described in "3. Risk Factor (1) Risk management structure of

the CCBJH Group ".

15

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

a. Transition risks
Transition risks of high importance

Details

impactTime ofOccurrence

Main mitigation plans

Cost increases due to introductionof carbon pricing■ Cost increase due to introduction ofcarbon tax and strengthening ofemissions trading system, etc.
Increased costs due to price shifting ofcarbon tax at suppliers

Medium
2030
2050

Mid・
Long-term

 Active adoption of recycledmaterials, promotion of weight reduction
 Reduction of raw material
consumption through lighter
containers/packages, etc.

MediumMid・Long-term Reduce dependence on external
power supply by introducing renewableenergy Shift to use of alternative raw
materials (in collaboration with CocaCola Japan)
 Review loading efficiency anddelivery routes, expand adoption of
next-generation vehicles, consider fuels
to green gas, etc.

■ Decrease in sales due to shelf dropand customer defection from retailers,
etc.

MediumShort・Mid

 Expansion of products in accordancewith sustainable procurement
 Promote environmentally friendly
products (e.g., 100% recycled
PET/labelless)■ Increase in procurement costs forrecycled PET resin, etc.

MediumMid・Long-term Shift to use of alternative materials
active use of recycled materials
 Promote lighter containers

Cost increases due to energy
conservation and GHG emission
regulations

Decline in sales due to an
inadequate response to changes incustomer behavior

Cost increases due to tighter
plastics-related regulations
Loss of reputation among investors
and financial institutions due toinadequate response■ Cost increase due to capital
investment for energy conservation andrenewable energy, etc.
■ Increased procurement costs due toincreased production costs at suppliers■ Decrease in stock price and increasein financing costs in case of inadequate
response

Low

Short・Mid

 SBT certification and participation in
RE100 (Under consideration)
 Proactive and continuous disclosureand dissemination of information basedon TCFD・TNFD-related and otherfactors

Details

impactTime ofOccurrence

Main mitigation plansb. Physical risks
Physical risks of high importance
Decrease in manufacturing
efficiency and manufacturing
volumes due to extreme weather
conditions■ Increased quality maintenance costs
due to deteriorating water quality■Increased response costs due toincreased risk of illness

Low

Mid・
Long-term■ Strengthening of BCP response

Business shutdown due to extreme
weather conditions■ Impact of restoration cost and lost sales
due to shutdown of factories and othercompany-owned facilities due tohazardous weather conditions

MediumShort・Mid■ Identify and prioritize wind and flood
risks in manufacturing sites,
sales/distribution sites, and supply chain,and enhance mitigation plans

Scarcity of water-based materials■ Increased procurement costs due tosoaring water prices■Response costs and lost sales due toplant shutdowns caused by drought

Low

Mid・Longterm■ Improvement of WUR■ Strengthening of S&OI response

MediumShort・Mid■ Diversification of procurement sources■ Collaboration with suppliers (e.g.,development of agricultural methods,
TBC)

Raw material procurement risk due■ Increase in procurement costs of
to extreme weather conditions
agricultural produce and other raw
materials

18

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

c. Opportunities
Opportunities of high importance
Customer demand increase for
products that contribute to energy
conservation and GHG reduction

Details■ Increase in sales due toenvironmentally friendly raw materials
and packaging

ImpactTime ofOccurrence

Main mitigation plans

Medium

Mid・Longterm■ Develop and expand environmentallyfriendly products (e.g., 100% recycled
PET bottle, labelless, reusable, packageless)

Mid・Longterm■Installation of manufacturing
equipment equipped with the latest
technology, Continuous improvement of
manufacturing processes and plant
equipment through monitoring■ Further promotion of water source
replenishment capacity improvement■ Review loading efficiency anddelivery routes, expand adoption of
next-generation vehicles, consider fuels
to green gas, etc.

Cost reduction through efficient
supply chain

Changing customer preferences due
to global warming(Note)③■ Reduction of electricity costs and
GHG emissions by introducing
renewable energy and energy-saving
equipment■ Cost reduction through enhanced
water efficiency

Medium■ Increase in sales of heat stroke
prevention and healthy beverages

Low

Mid・Long- ■ Develop and promote heat stroke
prevention and healthy beverage products
term

Impact line: High:10B yen +, Medium: 1-10B yen, Low: below 1B yen

Risk management
Risk management of Sustainability Approach and Measures e are described in "3. Risk Factor (1) Risk
management structure of the CCBJH Group ".
In addition, under this risk management framework, risks that could have a significant impact on our financial
position are identified in terms of likelihood and impact. Therefore, climate change is considered one such majorrisks. We believe that a detailed analysis is necessary regarding climate change and so in 2022 and 2023 we
conducted a scenario analysis on climate change risks to evaluate their impact. Transition risks (policy, reputation,technology, market), physical risks (acute, chronic), and opportunities (products and services, markets, energy
sources, resource efficiency, resilience) are identified and prioritized based on likelihood of occurrence and impact
when they occur.

④

Indicators and targets
Indicators and targets related to climate change are described in "(4) Indicators and targets".

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

(6)

Approach and initiatives for human capital and diversity
We have established People Strategy based on our mission, vision, and values (MVV) and strategic business plan, “Vision2028”, to maximize the value of our human resources. Our People Strategy consists of the four pillars of “attraction,”“development,” “career,” and “reward,” as well as the underlying “Establishing working environments and institutions.” Thanks
to the integration of Japanese bottlers and other developments, we are a company where human resources and cultures espousing
various values coexist. To fully leverage these strengths, we are planning and implementing various initiatives. Our aim is tocreate a comfortable working environment for our employees and develop our human resources to realize sustainable businessgrowth.

①

GovernanceIn our governance related to human capital, issues and solutions on this topic based on the People Strategy havebeen discussed at regular meetings of our executive leadership team, as necessary. In order to further strengthen
our human capital to achieve Vision 2028, we will allocate approximately one-quarter of the regular meetings of
our executive leadership team, or once a month, to human capital discussions. In addition, HR data will be utilized
to monitor KPIs for key initiatives and discuss challenges toward progress.

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

②

Strategy
Leadership development for sustainable organizational growth
In these times of increasing diversity among people and values and upheavals in the business environment,
implementing management strategies swiftly and flexibly to drive transformation is vital. For that to be possible, itis essential to have leaders (key talent) who drive change. We are building a pipeline to secure key talent as part ofinitiatives of “development” and “career,” which are the core of our People Strategy. The pipeline consists of the
key talents who will lead the execution of business strategies and the next-generation leaders who are candidates
to succeed them. We have established Coca-Cola University Japan (CCUJ), an in-house university, as a means ofcontinuously producing key talents for each generation and position, strengthening the pipeline, and cultivating
those talents. In so doing, we are strengthening the development of talents who will lead transformation based on
business strategies.
Initiatives to build capabilities for driving transformation
We are working to improve the capabilities of the entire organization in order to further the transformation. We
have implemented a “Career Journey” program that clarifies career paths for the Commercial, Logistics, andManufacturing divisions to which most of our employees belong. It is designed to make employees aware of theirown career plans and give them more opportunities to experience growth. In addition, in order to help employees,
develop the skills to realize their career plans, we offer a program called “Knowledge Mall.” This selfdevelopment support program enables employees to learn various content in a variety of ways, fostering a culture
in which each employee can learn in a self-directed way. We will also focus on efforts to improve the digital andother necessary skills required for organizational transformation to achieve Vision 2028.
Improving mechanisms with a focus on performanceWith the aim to sustainably develop the organization, we will accelerate the development and career building
process with a greater focus on performance. This is designed to enhance our capabilities as an organization, in thesense that we are a collective of individuals, by further enhancing individual capabilities. We encourage our
employees to consider their own short- and medium-term career plans, as well as action plans for skill
development to achieve these. They are then interviewed by their supervisors. Going forward, we will further link
this system to the improvement of individual employee performance and create an environment that supports theautonomous growth of employees. We will achieve this by encouraging individual growth through regular one-onone dialogue between supervisors and their team members and providing training appropriate to the nature of eachindividual’s job.

21

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

Diversity, equity, and inclusion
We regard diversity, equity, and inclusion (DE&I) as a material issue toward realizing a sustainable society. We
recognize the importance of diversity in meeting the varied needs of our business environment, customers, andpartners, and in driving the sustainable growth of our Group. We aim to create an inclusive workplace where every
employee, regardless of their background and values, can demonstrate their abilities and fulfill their aspirations.
Our management structure places a high value on diversity in all aspects, including nationality, gender, age, andbackground. We are committed to promoting diversity management through discussions, decision-making
processes, and other related activities based on a wide range of perspectives. In order to empower our humanresources with disabilities, in 2019 we established a special-purpose subsidiary to create a work environment
where each person can demonstrate their unique qualities and abilities. We have established a dedicatedorganization in the Human Resources and General Affairs Division leading the planning and promotion of Groupwide DE&I initiatives. Through these efforts, we aim to improve the female manager ratio, the gender wage gap,
the percentage of male employees taking childcare leave, and the percentage of employees with disabilities. With
this, we are committed to creating an environment where everyone, regardless of gender, wants to work and where
they can achieve more diverse work styles than ever before.
Improving employee well-being
We have established institutions and mechanisms that allow employees to choose how they work according totheir lifestyle and work style so that they can perform at their maximum potential. In addition to promoting workfrom home and satellite office work to provide flexible work styles, we are striving to ensure that employees enjoy
work-life balance by establishing institutions that facilitate work. As an example, for our Commercial Division, we
encourage having business meetings online and going straight to clients and back home when possible. It is also an
important management issue to maintain and improve the health of our employees, and we are working to foster ahealth-first corporate culture. We offer a program called “Sawayaka Challenge” to help employees make
improvements in the five areas of exercise, smoking cessation, sleep, diet, and mental health. In this program,
employees are provided with opportunities to consider how and why they should make health improvements andto take concrete action to build habits. In this way, we aim to improve the well-being of each and every one of ouremployees by providing an environment that takes into account their comfort, health, and safety.
③

Risk management
Risk management related to human capital is described in "3. Risk Factor (1) Risk management structure of the
CCBJH Group “.

④

Metrics and Targets *1
Item
Percentage of Employees with
Disabilities *2
Female Manager Ratio
Percentage of male employees
taking childcare leave(Note)

1.
2.

2023 results
2.42%(Statutory employment rate:
2.3%)
7.4%

Target

20.0% (2030)

83.3%

100.0% (2025)

3.0% (2025)

Figures shown correspond to the numerical definitions of "(4) Female Manager Ratio, Percentage of Male Employees Taking
Childcare Leave, and Gender Wage Gap Note 1" in I. Overview, 5. Employees.
Figures listed are from the "Report on the Employment Status of People with Disabilities" (June 1, 2023) submitted to the Directorof the Public Employment Security Office with jurisdiction in the fiscal year 2023.

22

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

3. Risk factors
This section outlines the major risks identified by the management as having the potential to have significant negative impact
on the financial conditions, business performance and cash flow of the consolidated companies.
The future-outlook and assumptions described in this section are those determined by the CCBJH Group as of the date ofsubmission of the Securities Report.
(1) Risk management structure of the CCBJH GroupThe CCBJH Group has implemented an overarching business resilience program that integrates the way in which we
manage risk and opportunity to enable profitable growth; protect our people and assets; enhance our capabilities to respondin a crisis; and the way we use insurance as a risk transfer mechanism to respond to certain risks.
The program encompasses our enterprise risk management (ERM), crisis response, security, business continuity andinsurance strategies which are housed within the Risk Management Senior Group (RMSG) and is led by the Head of Risk
Management (HRM). Our ERM PDCA framework is based on COSO and ISO31000 and provides a process to drive
profitable growth by leveraging opportunities and promoting appropriate risk-based decision-making, as well as fosteringstrong capabilities in the identification and response to foreseeable risks. The HRM is tasked with maintaining a wideangled view of all business streams for emergent risks and opportunities and, through regular reporting, ensures that risk
visibility is provided to the executive leadership teams and our Board. The RMSG team works in close collaboration withthe risk owners across functions in assessing and managing business risks.
The Board retains overall accountability and responsibility for our risk management and internal control systems, andhas defined the Group’s risk appetite, and, through the Audit and Supervisory Committee, reviews the effectiveness of thesesystems. During the year, the Board was provided full visibility of and actively considered our reportable risks, which arethose risks that have the potential to impact the ability of the Group to achieve its strategic objectives.
During this fiscal year, we continued to focus on increasing the involvement of management in the ERM processes. A
quarterly risk management forum, comprising senior leaders convenes to review our operational environment and risk
status. Functional risk review sessions were held with senior leaders across the business with risk interviews conductedwith the executive leadership teams. The team also collaborated with Coca-Cola system stakeholders to build a structurethat strengthens the risk management process by also considering the major risks affecting the entire Coca-Cola system.
The identified risks are assessed from the perspective of the level of impact and the likelihood of occurrence. The majorrisks and opportunities to the business were determined through discussion and evaluation by the executive leadershipteams. Under the leadership of the executive leadership teams, risk owners are assigned to the risks and the actions to betaken to address these risks are finalized.
The ERM program incorporates a variety of processes which include alignment to our business strategies, objectives andprinciples; integration in our Group statements on strategic direction, ethics and values; integration into the businessplanning cycle; continual monitoring of our internal and external environment for factors that may change our risk profileand create opportunities; establishment of training to increase risk management knowledge across all functions to develop
informed risk-taking leaders; and an annual evaluation of the type and amount of insurance purchased to ensure adequate
financial protection is in place.
Our ERM activities include monthly risk discussions by the executive leadership teams to identify risks to ouroperational plans with a formal process, to identify the broader risks and opportunities, being conducted annually. These
regular discussions and the formal cyclic process provide CCBJH with the opportunity to grasp the latest risk trends andreview the major risks. To realize the Group's growth strategy, the actions to address the major risks are incorporated into
the annual business plan of each function. The ERM process is subject to internal audit against global best practices with
the Head of Audit making improvement recommendations as required.

23

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

4. Management's analysis of financial condition, results of operations and cash flows
Financial Summary(1) Overview of Full-Year 2023 Results
Coca-Cola Bottlers Japan Holdings Inc. (“CCBJH,” the “Company,” or “we”) announced the full-year results for the fiscal
year (January 1, 2023, to December 31, 2023).
In this fiscal year, the total domestic nonalcoholic ready-to-drink (NARTD) beverage industry volume is estimated to havegrown by about 1% versus the previous fiscal year. Although demand continued to increase on the back of a recovery intraffic, resumption of economic activity and the heat wave, the negative impact on demand from the price revisions
implemented by beverage companies had an impact. The business environment remained uncertain as the rising commodity,
utility prices, and the yen's depreciation impacted business and consumer behavior.
Under these circumstances, we have positioned 2023 as the “Year of profit focus,” and have prioritized improving
profitability. In commercial activity, we implemented two price revisions as one of the most important initiatives forprofitability improvement with a focus on steady implementation and maintaining shipping prices following the pricerevisions. In addition, we have been thoroughly implementing disciplined commercial activities throughout the year to
maximize the effects of improved profitability and investment efficiency. To capture the increased demand from both therecord breaking heat wave and recovery in traffic, we have worked to grow revenue by growing sales volume and improving
wholesale revenue per case by introducing new products, implementing efficient and effective marketing activities, andstrengthening customer engagement. In the manufacturing and supply chain fields, while faced with rising commodity,
utility prices, and the yen's depreciation, to capture the opportunity of increased demand for sales volume and profit growth,
we have worked on the stable operation of the Sales and Operations Planning process (S&OP), which was revamped in theprevious year, and improved the supply network to ensure stable supply of products and reduction of total manufacturing
and logistics costs. We expanded capacity with a new line at the Ebina Plant and other initiatives to improve manufacturing
processes. We reduced transport distance per case by building a supply network by area and leveraging Mega Distribution
Centers (DCs).
In August, we announced “Vision 2028,” our strategic business plan that runs from 2024 to 2028. KPI targets are annual
revenue growth of 2 to 3%, a business income margin of 5% or higher, and return on invested capital (ROIC) of 5% orhigher by 2028. We have outlined our key strategies and commitments to achieve this plan. Additionally, we are working to
implement key transformation initiatives ahead of schedule. We are executing marketing and human capital investments tofoster growth in 2024 and beyond. This effort aims to start "Vision 2028" with a strong momentum.
We are working to realize ESG targets based on creating shared value with society. We have launched several collaborative
initiatives with our customers and government agencies. These include conserving water resources and enhancing PET
bottle recycling. Through collaboration to foster a recycling-based society, we aim to reduce environmental impact andexpand business opportunities.
To contribute to communities through business activity, we donate products to food banks and deploy vending machinesthat support local activities. As part of our human capital management, we promote Diversity, Equity & Inclusion (DE&I) to
create a friendly working environment for employees with different backgrounds and values. Our ESG initiatives, includingthese efforts, have received high recognition. For the sixth consecutive year, leading global ESG investment index DJSI Asia
Pacific has selected our company as a component of the index.
Details for the fiscal year earnings are as follows.

26

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

Summary of Business Performance(Millions of yen except sales volume)

Full Year (January to December)
Revenue
Sales volume (million cases)
Gross Profit
Selling, General & Administrative Expenses
Other income (Recurring)
Other expenses (Recurring)
Investment income (loss) on equity method
Business Income (Loss)
Other income (non-recurring)
Other expenses (non-recurring)Operating Income (Loss)Net Income (Loss) Attributable to Owners of Parent

2022

2023

807,430478
351,755
365,295
974
1,924
46
(14,443)
8,338
5,408
(11,513)868,581492
384,216
381,022
728
1,890
(7)
2,025
4,429
3,012
3,441

Change
(%)
7.6
3
9.2
4.3
(25.3)(1.8)－－(46.9)(44.3)－(8,070)1,871－(For reference) The fourth quarter (October to December)
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(Note)

1.
2.

2022

2023

195,109112
84,43986,973280
982(11)(3,247)900
2,114(4,460)(2,876)

204,756
113
89,621
93,062194588(8)(3,842)
2,252
1,089(2,680)(1,991)

Change
(%)
4.9
1
6.1
7.0
(30.9)(40.1)－－
150.1(48.5)－－“Business income(loss)” is measure of our recurring business performance. “Business income(loss)” deduct costof sales and selling, general and administrative expenses from revenue, and includes other income and expenses
which we believe are recurring in nature.
Sales volume in 2022 is revised retroactively due to changes of counting segmentation and scope in someproducts.

Consolidated revenue was 868,581 million yen (an increase of 61,150 million yen or 7.6% from the previous year). Despite
the negative impact on volume following price revisions, sales volume increased by 3% versus the previous year. This wasachieved with the introduction of new products, effective marketing activities captured demand opportunity from recovering
traffic, and the heat wave. Efforts were also made to strengthen customer engagement. Since 2022 we have implemented aseries of price revisions. Our efforts to enhance and maintain revised shipping prices of products have improved wholesalerevenue per-case in all channels, with revenue growth exceeding the sales volume growth rate.
Consolidated business income improved by 16,468million yen and was 2,025 million yen (14,443 million-yen loss inprevious fiscal year). This improvement is attributed to profit contributions from top-line growth, sales volume, and wholesalerevenue per case. A reduction in marketing expense, achieved through cost-effectiveness, also played a role. Lower logistics
costs from supply chain improvements were also a factor. Despite the impact of higher commodity and utility prices, and yen
depreciation, profitability improved. Commercial activities captured growth opportunities from the heat wave. The steady
implementation of key transformation initiatives to improve profitability generated benefits ahead of plan. Full-year businessincome returned to profit and exceeded the plan that was revised upwards in November 2023.

27

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

Consolidated operating income improved by 14,954million yen and was 3,441 million yen (11,513 million-yen loss inprevious fiscal year). In addition to business income growing versus the previous year being the primary reason, there was acycling impact of gains from Government subsidies for temporary leave recorded in the previous year which lowered otherincome (non-recurring). Other income (non-recurring) includes 4,401 million yen in gains on sales and disposals of property,
plant, and equipment, which was realized in the process of improving the balance sheet this year. Other expenses (nonrecurring) include 2,491 million yen in business structure improvement expenses related to the implementation of fundamental
transformation.
Net income attributable to owners of the parent improved by 9,941 million yen with operating income growing from theprevious fiscal year and was 1,871 million yen (8,070 million-yen loss in previous fiscal year).

Sales volume trends (% change from previous year)
Sales volume grew by 3% for the full year. As a benefit of the price revisions, wholesale revenue per case improved bymore than double digits versus the previous year in all channels. For the fourth quarter (October 1, 2023, to December 31,2023), although impacted by a decrease in volume from the October price revisions for large PET bottles, sales volume
increased by 1% with the cycling of the price revisions for small packages implemented in the previous fiscal year.
By channel, sales volume declined by 4% in supermarkets despite campaigns and product launches to capture opportunities
for increased demand driven by recovering traffic and the heat wave. In the main this was due to a decrease in volume
following the series of price revisions implemented since 2022. Sales volume at drugstores and discounters despite being
impacted by price revisions increased by 2% with sales volume growth in large and medium PET bottles, reflecting market
expansion in this channel as consumers become more cost-conscious. Vending sales volume grew by 1%, supported by themarket share base we have built to date and by campaigns implemented through the Coke ON smartphone app, contributing tocapturing demand from the heat wave and traffic recovery. The price revision of small PET bottle and can products continued
to impact vending volume. Wholesale revenue per case in vending improved greatly from the previous year with the pricerevisions. In CVS, although the competitive environment remained severe, efforts aimed at expanding our mainstay products
carried at customer stores, expanding shelf space, and strengthening customer engagement, have started to show results fromthe third quarter onwards resulting in a 5% increase in sales volume for the full year. In retail & food, sales volume increasedby 10% with the traffic returning to restaurants and amusement facilities. In online, volume grew by 12% despite theintensifying competitive environment, strengthened product lineup and tie-up promotions implemented together with
contributions from major online customers.
By beverage category performance, sparkling sales volume grew by 3%, with volume growth centered around Coca-Cola atvending and restaurants with the recovery in traffic, and contributions from product renewals such as Sprite. Sales volume oftea products declined by 1% due to impact from the price revisions, despite the contributions from Yakan no Mugicha fromSokenbicha which continues to enjoy sales growth since its launch and from the heat wave driving demand. Coffee sales
volume increased by 2%, supported by the new Georgia THE Black, launched together with the Georgia rebranding. Medium
PET bottle products captured at-home demand, despite volume being impacted from the price revisions. In sports, sales
volume decreased by 4% due to the price revision impact, despite the contribution from new product Aquarius NEWATER.
Water sales volume grew by 13% with demand driven by the heat wave and contributions from the I LOHAS Natural Water
with the 2022 renewed bottle design and I LOHAS Peach. Juice sales volume increased by 13% with the recovery atrestaurants as well as contributions from new product Minute Maid Gyutto! Fruits.
In the alcohol category, despite the contributions from new products such as Jack Daniel's & Coca-Cola, and non-alcoholic
beverages such as Yowanai Lemon-dou which has been performing well since its launch, sales volume was impacted by theprice revisions and declined by 12%.

28

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

(2) Cash Flow
The cash flow conditions for the current fiscal year are as follows:<Cash Flows from Operating Activities >Net cash generated from operating activities was 59,102 million yen (42,717 million yen generated from operating activities
in the previous fiscal year). This is mainly due to an income before income taxes of 3,224 million yen, “Depreciation andamortization” and an “Increase in trade and other payables” were recorded.
<Cash Flows from Investing Activities>
Net cash used for investing activities was 14,287million yen (23,090 million yen used for investment activities in theprevious fiscal year). This is mainly due to “Payments for acquisitions of property, plant, and equipment and intangible
assets,” while “Proceeds from sales of property, plant and equipment and intangible assets” and “Proceeds from sale of otherfinancial assets” through the progress made in balance sheet optimization were recorded.
<Cash Flows from Financing Activities>
Net cash used for financing activities was 15,229 million yen (46,050 million yen used for financing activities in theprevious fiscal year). This is mainly due to “Dividends paid.”
As a result of these activities, cash and cash equivalents at the end of the year were 113,660 million yen, an increase of
29,586 million yen compared to the end of the previous fiscal year.
Overview of production, orders received and sales(1) Production results
Production results by business segment for the current fiscal year are as follows:
Segment nameBeverage business(Note)

Millions of yen
532,428

Year-to-year comparison (%)
101.1

Amounts primarily constitute production costs.

(2) Procurement results
Procurement results by segment for the current fiscal year are as follows:
Segment nameBeverage business(Note)

Millions of yen
67,541Year-to-year comparison (%)
107.6

Amounts are based on purchase prices.

(3) Orders received
Order status is omitted as the Group mainly engages in prospective production.
(4) Sales results
Sales results by segment for the current fiscal year are as follows:
Segment nameBeverage business(Note)

Millions of Yen
868,581Year-to-year comparison (%)
107.6

Information on sales by major customer is omitted, as there are no counterparties with whom the ratio to overall sales exceeds 10%29This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In
the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Analysis of financial condition, results of operations and cash flows(1) Materials accounting policies and estimates
The consolidated financial statements of the Group are prepared in accordance with IFRS. In preparing these consolidated
financial statements, certain items, including provisions, are based on estimates made by the Group. These estimates are basedon the Group’s historical results and matters that are deemed reasonable considering the future plans. The accounting standards
are described in 1. Consolidated financial statements, (1) Notes to Consolidated financial statements, 4. Significant accounting
judgments, estimates and assumptions under 5. Financial information.
(2) Analysis of financial position at the end of the fiscal year
The ratio of the Group's equity attributable to owners of the parent to total assets at the end of the fiscal year was 55.6%, andwe believe that our financial position remains sound.
Major factors of changes from the end of the previous fiscal year for each major item in the consolidated statement offinancial position are as follows:(Assets)
Assets at the end of the year were 844,832 million yen, an increase of 18,096 million yen from the end of the previous fiscal
year. This is mainly due to an increase in “Cash and cash equivalents” and “Trade and other receivables,” while a decrease in“Property, plant, and equipment” through the progress made in balance sheet optimization.
(Liabilities)
Liabilities at the end of the year were 374,812 million yen, an increase of 24,434million yen from the end of the previous
fiscal year. This is mainly due to an increase in “Trade and other payables” and “Income taxes payables.”(Equity)
Equity at the end of the year was 470,021 million yen, a decrease of 6,338 million yen. This mainly reflects a decrease in“Retained earnings” due to dividend payments, while net income for the year was recorded.
Cash and cash equivalents at the end of this year was 113,660 million yen, an increase of 29,586 million yen (35.2%). See
the consolidated statements of cash flows in “Overview of financial results, (2) Cash flows” for more details.
(3) Analysis of results of operation for the current fiscal year
An overview of results of operation for the fiscal year is as described in “Overview of financial results, (1) Results ofoperations.” Major changes from the previous fiscal year for each major item in the consolidated statements of profit or loss
are as follows:(Revenue)
Revenue for the current fiscal year increased 61,150 million yen( 7.6% from the previous fiscal year) to 868,581 million yen.
(Operating income)Operating loss for the current fiscal year increased 14,954 million yen from the previous fiscal year to 3,441 million yen (Theprevious year's operating loss was 11,513 million yen).
(Net income for the current fiscal year)
Net income for the current fiscal year for the fiscal year increased 9,962 million yen from the previous fiscal year to 1,903
million yen. (The previous fiscal year's net loss was 8,059 million yen)
(Net income for the current fiscal year attributable to owners of the parent)
Net income for the current year attributable to owners of the parent for the fiscal year increased 9,941 million yen, from theprevious fiscal year to 1,871 million yen. (The previous year's Net loss for the year attributable to owners of the parent was
8,070 million yen.)(4) Factors affecting financial position and results of operations
Factors that have could significantly impact the Group's financial position and results of operations are described in “3. Risk
factors.”30

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

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

6. Research and development activities
Not applicable.

31

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

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

Name of office(Location)

Each branch(-)

Name ofreportingsegment
Beveragebusiness

Details of
Facilities

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

Vending
machines andcooler, etc.

17,181－33

Way offinancing

Own fundScheduledstart dateJan. 2024

Scheduledcompletiondate

Dec. 2024

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

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

Total number of authorized shares

Common shares

500,000,000
Total

500,000,000② Issued shares
Name of listed shareexchange or registeredauthorized financial
instruments firms`
association

Details

206,268,593

Tokyo Stock Exchange（Prime Market）

100 per unit shares

206,268,593--

Number of issued sharesat the end of the fiscal year
(As of December 31, 2023)

Number of issued sharesat the filing date
(As of March 27, 2024)

Commonshares206,268,593

Total

206,268,593

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

34

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

(6) Major shareholders
As of December 31, 2023

Name

Address

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

Coca-Cola (Japan) Co., Ltd.

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

27,956

15.32

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

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

21,163

11.60

GOLDMAN SACHS INTERNATIONAL

Plumtree Court, 25 Shoe Lane, London EC4A
4AU, U.K.

7,282

3.99

(Standing proxy: Goldman Sachs Japan)(6-10-1 Roppongi, Minato-ku, Tokyo)

Custody Bank of Japan, Ltd. (Trust Account)

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

6,895

3.78

Ichimura Foundation for New Technology

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

5,295

2.90

J.P. Morgan

Tokyo Building, 7-3, Marunouchi 2-chome,
Chiyoda-Ku, Tokyo

4,734

2.59

Satsuma Shuzo Co., Ltd.

26 Kamimotocho, Makurazaki-shi,
Kagoshima

4,406

2.41

Senshusha Co., Ltd.

339 Noda, Noda-shi, Chiba

4,088

2.24

Coca-Cola Holdings West Japan Inc.

1013 Wilmington Center Road, U.S.A.

(Standing proxy: Coca-Cola (Japan) Company,
Limited)Delaware
(4-6-3 Shibuya, Shibuya-ku, Tokyo)

4,075

2.23

Mitsubishi Heavy Industries Machinery
Systems, Ltd.

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

3,912

2.14

89,806

49.21

－

Total
(Note)The treasury shares (23,784 thousand shares) are excluded from the list above and from the calculation of ratio of shareholding
because they do not have voting rights. Also, the treasury shares do not include the Company shares held by Executive reward BIP
Trust are and Stock-granting ESOP Trust.

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

(7) Voting rights① Issued shares
As of December 31, 2023
Class

Number of shares

Number of voting rights

Details

－

－

－

－

－

－

－

－

－

－

－

Non-voting shares
Shares with restricted voting right(Treasury Shares)
Shares with restricted voting right(Others)
Shares with full voting rights (Treasury
Shares)Common23,784,100

sharesShares with full voting rights (Others)

Commonshares181,742,800

Odd lot shares

Commonshares741,693

Total number of issued shares

206,268,593

Voting rights of all shareholders－(Note)

1.
2.

1,817,428－－－－

1,817,428－“Shares with voting rights (others)” includes 2,300 shares (23 voting rights) held in the name of Japan Securities Depository Center,
Inc.
Common shares in the column “Shares with full voting rights (other)” includes 1,260,900 shares (number of voting rights: 12,609)
held by Executive reward BIP Trust and 1,789,100 shares (number of voting rights: 17,891) held by Stock-granting ESOP Trust.

② Treasury share

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

As of December 31, 2023
Ratio of shares
Total number
owned against totalof shares
no. of issued shares
owned
(%)

Name of owner

Address of owner

Coca-Cola Bottlers
Japan Holdings Inc.

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

23,784,100－

23,784,100

11.53

－

23,784,100－

23,784,100

11.53

Total
(Note)The Company shares held by Executive reward BIP Trust, and Stock-granting ESOP Trust are not included in the above numberof shares owned.

37

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

(8) Details of executive and employee share ownership schemes(Executive reward BIP Trust)① Outline of the System
The Company has introduced a long-term incentive (share-based compensation) system for the Company's executive
directors using the Executive reward BIP trust structure in accordance with the resolution at the 2023 Annual General
Meeting of Shareholders hold on March 28, 2023.
The Board Incentive Plan (BIP) Trust is a share-based compensation plan under which the trust established by theCompany acquires the Company's shares with money contributed by the Company, and the Company's shares are delivered
to the executive directors.
An overview of this system is provided in 4. Corporate Governance, etc. (4) Compensation, etc., of Directors andCorporate Auditors.
② Total number or total amount of shares to be acquired by the executive directors
The Company will contribute up to 2,880 million yen as compensation to the executive directors during the initial trust
period (from May 2023 to May 2026). The maximum number of points to be granted to executive directors from the ESOP
Trust shall be 1,800,000 points (1 point = 1 share of Common shares) per 3 fiscal years.
③ Scope of persons entitled to beneficial interests and other rights under the plan
Executive directors of the Company who satisfy the requirements for beneficiaries.
(Stock-granting ESOP Trust)① Outline of the System
Based on the resolution of the Board of Directors meeting held on May 12, 2023, the Company introduced the Employee
Stock Ownership Plan (ESOP) Trust (the "ESOP Trust") (the "Plan"), an employee incentive plan for executive officers of
the Company, employees recognized by the Company and executive officers and employees of group subsidiaries
determined by the Company (the "Executive Officers, etc.").
This plan is an incentive plan for employees based on the ESOP plan in the U.S., under which the Company's sharesacquired by the ESOP Trust are delivered to executive officers, etc. who satisfy certain requirements in accordance withpredetermined stock compensation rules.
The purpose of this plan is to increase the willingness of executive officers, etc. subject to this plan to contribute to themedium- and long-term improvement of the corporate value of our group companies and to the increase in stock prices, tostrengthen the competitiveness of recruitment and retention of excellent human resources with rich diversity in terms ofnationality, experience, etc., and to share the awareness of profits with our shareholders and to further increase the incentive
to improve the corporate value. The purpose of this plan is to further increase the incentive to share the awareness of profits
with shareholders and to improve corporate value.
② Total number or total amount of shares to be acquired by the executive directors
The Company will contribute up to 2,798 million yen as compensation to the executive directors during the initial trust
period (from May 2023 to May 2026).
③ Scope of persons entitled to beneficial interests and other rights under the plan
Executive officers of the Company and its group companies who satisfy the requirements for beneficiaries

38

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

3. Dividend policy
We periodically review its capital structure and dividend payout ratio to maximize shareholder returns while maintaining
flexibility to pursue growth opportunities. We seek to use retained earnings to fund investment for sustainable growth for ourbusiness and further enhancement of corporate value.
We set its basic policy regarding dividends, which includes active redistribution of profits while placing the highest priority
on paying dividends in a stable manner, by comprehensively reviewing the business performance and level of retained
earnings. In addition, we have set a payout ratio target of 30% or more for net income attributable to owners of the parent. We
pay interim and year-end dividends. For the fiscal year ending December 31, 2023, we paid an interim dividend of 25 yen per
share and plan to pay year-end dividend of 25 yen per share, for a total annual dividend of 50 yen per share to pay. For the
fiscal year ending December 31, 2024, we seek to maintain its basic policy on stable dividend payment by setting the dividend
forecast of annual total of 50 yen per share paid (25 yen per share as interim dividend and 25 yen per share as year-end
dividend), which is same amount as in the fiscal year ending December 31, 2023.
On future shareholder returns, we stay committed by comprehensively reviewing its business performance trends andfinancial conditions and examining the best approaches that could be taken by including the share repurchase program.
Dividends from retained earnings for the current fiscal year are as follows:
Amount of dividend
Total dividend
Date of resolution
per share(Millions of yen)
(Yen)
August 9,2023
Board of Directors

4,562

25

March 26, 2024
Resolution of the Ordinary
General Meeting of
Shareholders

4,562

25

40

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

4. Corporate governance(1) Explanation about corporate governance① Basic stance on corporate governanceOur basic stance on corporate governance is to seek improvement of management soundness, transparency and efficiency andincrease mid-to-long-term corporate value and shareholder value.
We have established the Audit and Supervisory Committee to further strengthen our governance system. The Audit andSupervisory Committee, which takes a lead role in audits, is composed entirely of outside directors (Audit and Supervisory
Committee members), including multiple independent outside directors. The Audit and Supervisory Committee members, who
are outside directors, have voting rights at the Board of Directors meetings and the rights to express opinions on directors'
nominations and compensation at the General Meeting of Shareholders. As a result, our management oversight functions havebeen further strengthened.
In addition, we have adopted the executive officer system to separate decision-making and management oversight functions
from business execution functions. Certain important business execution decisions are entrusted to directors, so that the Board of
Directors can deliberate on matters of particular importance. For other matters, we place emphasis on speed of management
decisions by the executive leadership teams.
② Corporate governance structure and the reason for adopting this structure
We have established the Audit and Supervisory Committee to further strengthen our governance system. The Audit andSupervisory Committee, which takes a lead role in audits, is composed entirely of outside directors (Audit and Supervisory
Committee members), including multiple independent outside directors. The Audit and Supervisory Committee members, who
are outside directors, have voting rights at the Board of Directors meetings and the rights to express opinions on directors'
nominations and compensation at the General Meeting of Shareholders. As a result, our management oversight functions havebeen further strengthened. In addition, we have adopted the executive officer system to separate decision-making andmanagement oversight functions from business execution functions. Certain important business execution decisions are
entrusted to directors, so that the Board of Directors can deliberate on matters of particular importance. For other matters, weplace emphasis on speed of management decisions by the Executive Leadership Team.
We believe that the following corporate governance structure can improve management efficiency and transparency, andaccordingly, we have adopted this structure.
a. Board of Directors
The Periodic Meeting of the Board of Directors shall be held once in three months in principle and may be held as needed.
The Board of Directors shall resolve items prescribed by laws and the Articles of Incorporation and other items relating toimportant business matters such as basic managerial policies and shall receive the Directors’ report on their execution of theduties. Certain important business execution decisions are entrusted to directors, so that the Board of Directors can deliberate on
matters of particular importance. For other matters, we place emphasis on speed of management decisions by the executive
leadership teams.
(a). Composition of the Board of Directors
The Company’s Board of Directors consists of no more than 10 Directors (excluding Directors who are Audit andSupervisory Committee members) and no more than 7 Directors who are Audit and Supervisory Committee members,
which are the limits set as the number of respective members under the Articles of Incorporation.
The Board of Directors, as a whole, consists of an appropriate balance of members with a wide range of knowledge
and expertise on corporate management, financial strategies, risk management and legal compliance, etc. In light of theimportance of the function of Outside Directors in corporate governance, the Company shall appoint, for the Directors,
Outside Directors who are independent based on the Company’s independence standards and qualification, in a numberthat constitutes at least one third of the Directors and which shall include at least 1 person who has management
experience at another company.
The Board of Directors currently consists of nine directors, including a majority of independent outside directors.
The Company has prepared a Skill Matrix in which the above-mentioned knowledge, experience, and skills, etc. arelisted.

41

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

(b). Activities of the Board of Directors
In the current fiscal year, we held the Board of Directors’ Meetings eight times. The main items for deliberation are as
follows.
Business Strategy

GovernanceRisk Management
Financial Statements

・Strategic Business Plan
・M&A of Operating Companies
・Business Execution Status Report
・Sustainability Strategy and People strategy
・Election of Candidates for Directors, Selection of Representative Directors, and Personnel
Changes of Executive Officers
・Matters related to the Ordinary General Meeting of Shareholders
・Matters related to remuneration for Directors and Executive Officers
・Internal Control Evaluation Report
・Business Resilience Report
・Cybersecurity Report・Appropriation of Surplus
・Financial Statements and Earnings Presentation

The attendance of individual directors was as follows.
Position
Name
Attendance
Representative Director
Calin Dragan
8 / 8 (100%)
Representative Director
Bjorn Ivar Ulgenes
8 / 8 (100%)
Outside Director
Hiroko Wada
8 / 8 (100%)
Outside Director
Hirokazu Yamura
8 / 8 (100%)
Outside Director
Celso Guiotoko
8 / 8 (100%)
Outside Director (Audit and Supervisory Committee Member)
Hiroshi Yoshioka
8 / 8 (100%)
Outside Director (Audit and Supervisory Committee Member)
Nami Hamada
8 / 8 (100%)
Outside Director (Audit and Supervisory Committee Member)
Stacy Apter
6 / 6 (100%)
Outside Director (Audit and Supervisory Committee Member)
Sanket Ray
6 / 6 (100%)
Outside Director (Audit and Supervisory Committee Member)
Irial Finan
2 / 2 (100%)
Outside Director (Audit and Supervisory Committee Member)
Vamsi Mohan Thati
2 / 2 (100%)
Stacy Apter and Sanket Ray were elected at the 66th Ordinary General Meeting of Shareholders held on March 28, 2023
and attended all 6 times of the Board of Directors’ Meetings held after their election in the fiscal year ending 31 December
2023.
Irial Finan and Vamsi Mohan Thati resigned at the 66th Ordinary General Meeting of Shareholders held on March 28,2023 and attended all 2 times of the Board of Directors’ Meetings held during the fiscal year ending 31 December 2023 until
their resignations.
b. Audit and Supervisory Committee
The Audit and Supervisory Committee is composed of four outside directors (Audit and Supervisory Committee members),
including multiple independent outside directors. Meetings of the Audit and Supervisory Committee shall be held once every
three months in principle and may be held, as necessary. The directors who are members of the Audit and Supervisory
Committee conduct audits aimed at checking the status of business execution by the directors, executive officers and employees
in accordance with related laws and regulations, the article of incorporation, and the audit standards and guidelines established
for and by the Audit and Supervisory Committee, by participating in the Board of Directors meeting and reviewing the results of
the audits conducted by the Internal Audit Office and Accounting Auditor.
A system to ensure sufficient oversight of business execution by executive officers is established, which include the regularexchange of opinions between the Representative Director and the members of the Audit and Supervisory Committee on the
results of the aforesaid audit activities.

42

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

(Main institutions)
Institution
Purpose and authority
Board of(a) The Board of Directors shall
Directors
resolve items prescribed by laws
and the Articles of Incorporationand other items relating toimportant business matters suchas basic managerial policies.
(b) The Board of Directors shallreceive Directors’ report on their
execution of the duties.

Audit andSupervisory
Committee(a) Audit of the performance of thedirector’s duties and preparationof audit reports.
(b) Determination of the contents ofproposals regarding the election,
dismissal, or disapproval ofreappointment of accounting
auditors.
(c) Determination of opinion of the
Audit and Supervisory
Committee regarding theelection, dismissal or resignationof directors and remuneration,etc. (excluding directors who are
Audit and Supervisory
Committee Members.).
(d) Other duties provided for inapplicable laws and regulations
and the articles of incorporation,
etc.

Chairperson
Calin Dragan
Representative
Director

Hiroshi Yoshioka(Outside Director,
Independent
Director),

43

MemberCalin Dragan,
Bjorn Ivar Ulgenes,
Hiroko Wada (Outside Director, Independent
Director),
Hirokazu Yamura (Outside Director,
Independent Director),
Celso Guiotoko (Outside Director,
Independent Director),
Hiroshi Yoshioka (Outside Director,
Independent Director),
Nami Hamada (Outside Director, Independent
Director),
Stacy Apter (Outside Director),
Sanket Ray (Outside Director)
Hiroshi Yoshioka (Outside Director,
Independent Director),
Nami Hamada (Outside Director, Independent
Director),
Stacy Apter (Outside Director),
Sanket Ray (Outside Director)

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

(The system to ensure business adequacy)
In order to establish the system to ensure that the jobs conducted by the Directors comply with the laws and regulations andthe Articles of Incorporation, and other systems to ensure appropriateness of operation (to be referred to as “internal control”
hereinafter), the Company has made a resolution on “the Internal Control System Basic Policy” at the Board of Directors
Meeting.
The Internal Control System Basic Policy is as shown below.
a. System to ensure that performance of duties by Directors and employees of the CCBJH Group conforms to laws andregulations and the Articles of Incorporationa) The “Code of Conduct” shall be established in order to ensure that all the Directors, Executive Officers, and employees of
the Group comply with laws and regulations and the Articles of Incorporation to act in conformity with social norms. The
Risk Management Committee shall be convened periodically in order to reinforce the compliance system and to prevent
non-compliance.
b) An internal whistle-blowing system against non-compliance, namely, a reporting and consultation contact separate from thereporting line to immediate managers, shall be set up.
c) The oversight function of the Board of Directors shall be reinforced by adopting the company system where the Audit andSupervisory Committee is established in order to ensure auditing by the Audit and Supervisory Committee where all of theconstituent members are External Directors.
d) The department in charge of internal auditing shall be established in order to audit whether business activities are
conducted appropriately and effectively in conformity with laws and regulations, the Articles of Incorporation, Company
Rules, and Regulations, etc.
e) The Company clearly identifies a firm stance against anti-social forces and organizations that cause threats to the order andsafety of civil society and that the Company never associates with such entities. The Company shall never accede to any
illegal request and deal with any such request in cooperation with the police, lawyers, etc.

44

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

b. System to retain and manage information related to Directors’ performance of their dutiesa) The Company shall record information regarding minutes of General Shareholders meetings, minutes of Board of Directors
meetings, documents and other materials related to important decision-makings and Directors’ performance of their duties indocuments or electronic media and retain it in accordance with the Rules of Documentation Handling and Information
Security Policy in a manner similar to that for statutory documents.
b) The Company’s Directors may inspect such documents, etc. at any time.
c. Regulations and other systems concerning loss risk management of the Groupa) In accordance with the Group policy on responding to material business risks and from the viewpoint of management ofother risks, significant items shall be reported to the main meetings dealing with risk management, and the main meetings
shall determine policies to deal with risks as required.
b) The Company establishes rules, guidelines, etc. and maintains an organization to execute effective responses to material
risks, and ensure the matters to be passed down by implementing training for the entire Group, etc.
c) The department in charge of risk management in the Company or its subsidiaries is to monitor the condition of companywide risks and to take appropriate measures on a group-wide basis. The Company promptly designates who is in charge ofthe response to new risks that arise.
d. System to ensure efficiency of performance of duties by the CCBJH Group Directorsa) The Company’s Board of Directors shall determine Group-wide management policy and goals shared by the Directors,
Executive Officers, employees, and others of the Group, and determine the efficient method to achieve the goals including
the allocation of authority based on the group’s decision-making rules.
b) In addition to Board of Directors Meetings, appropriate forums, such as the Management Meeting, shall be organized todeliberate significant matters affecting the entire Group, thereby ensuring that decisions are reached based on considerationsof multi-dimensional aspects.
e. System to ensure appropriateness of operations in a corporate group, which consists of the Company and its subsidiaries
The Company shall ensure management integration of the Group through establishment of a corporate philosophy,
management policy, the Code of Ethics and Conduct and Chart of Authority common throughout the Group and supervise andmanage the performance of the subsidiaries’ operations.
f. Matters concerning employees assisting the Audit and Supervisory Committee to execute the duties if the Audit andSupervisory Committee request the assignment of such employees, matters concerning the independence of such employees
from directors (excluding directors serving on the Audit and Supervisory Committee) and matters related to ensuring theeffectiveness of instructions given by the Audit and Supervisory Committee to such employees
The Company shall assign employees to assist the Audit and Supervisory Committee. Such employees shall execute theduties under the instructions given by the Audit and Supervisory Committee in assisting executions of duties by the Audit andSupervisory Committee and shall not receive instructions from directors (excluding directors serving on the Audit andSupervisory Committee).
g. System for reporting by Directors and employees of the CCBJH Group to the Audit and Supervisory Committee and systems toensure that reporting parties do not receive disadvantageous treatment as a result of such reportsa) Upon discovery of any incident that could cause the Group substantial damage, such as acts in violation of laws andregulations, the Directors (excluding Directors serving on the Audit and Supervisory Committee), Executive Officers,
employees and others of the Company shall immediately report the matter to the Audit and Supervisory Committee.
b) The Internal Audit Department and the Risk Management Committee shall regularly report internal audit results and thestatus of other activities in the Group to the Audit and Supervisory Committee.
c) The department in charge of compliance shall regularly report the status of whistleblowing in the Group to the Audit andSupervisory Committee.
d) The Company shall prohibit unjust treatment of the reporter to the Audit and Supervisory Committee and ensure that thismatter will be informed to all the executives and employees of the group.
h. Matters concerning procedures for advance payment or reimbursement of expenses incurred in the course of performance of
duties by Directors serving on the Audit and Supervisory Committee and policies related to processing expenses or liabilities
arising from performance of duties by Directors serving on the Audit and Supervisory Committee
The Company establishes enough budget for Directors serving on the Audit and Supervisory Committee each year to fulfill theperformance of their duties.

45

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

i. other systems to ensure that the Audit and Supervisory Committee’s audit is conducted effectivelya) The Representative Director and the Audit and Supervisory Committee shall hold a meeting on a regular basis to exchange
opinions in order to communicate with each other.
b) The Representative Director shall prepare an environment so that the Audit and Supervisory Committee is able tocooperate with external experts, such as lawyers and certified public accountants, in the course of its duties whenever it
deems it necessary.
c) The Audit and Supervisory Committee shall regularly provide opportunities for the exchange of opinions with the Internal
Audit Department and accounting auditors.
(Design of risk management system)
The Company has developed Group Rules for Risk Management and is proactively working on preventing the occurrenceof various risks that may arise for the Company together with ensuring that in the event of a risk occurrence, that response
strategies exist that allow us to respond in a prompt and adequate manner thereby minimizing the damage and businessdisruption. Furthermore, in order to minimize damage and business impacts caused by natural disasters, etc., crisis training,disaster drills and safety confirmation drills are being held regularly thereby testing our business continuity plans in response
to a large-scale disaster.”In addition, we have developed Code of Ethics to conduct for officers and employees of the Group, which shows theGroup's corporate stance of “complying with all laws and regulations, acting in good faith in society, and enhancing corporate
value by earning the trust of all stakeholders,” and have been thoroughly communicating it to all officers and employees.
③ Company organizations
a. Number of directors
The Articles of Incorporation stipulate that the number of the directors who are not members of the Audit and Supervisory
Committee shall be ten or less, and the directors who are members of the Audit and Supervisory Committee shall be seven or
less.
b. Requirements for election of directors
The Articles of Incorporation stipulate that the directors who are not members of the Audit and Supervisory Committee andthe directors who are members of the Audit and Supervisory Committee shall be elected by a majority of the vote attended by
the shareholders holding at least one-third of the voting rights of the shareholders who are entitled to exercise their voting
rights, and that they shall not be elected by cumulative voting.
c. Decision-making body for acquisition of treasury shares
The Articles of Incorporation stipulate that treasury shares may be repurchased through market transactions, etc. by aresolution of the Board of Directors without a resolution of the General Meeting of Shareholders, in accordance with theprovisions of Article 165, Paragraph 2 of the Companies Act. The purpose of this is to improve capital efficiency and to
implement flexible capital policies in response to changes in the business environment through authorizing the Board of
Directors to make a decision for the acquisition of treasury shares.
d. Decision-making body for interim dividends
The Articles of Incorporation stipulate that interim dividend defined in Article 454, Paragraph 5 of the Companies Act may
be paid by the resolution of the Board of Directors without a resolution of the General Meeting of Shareholders. The purposeof this is to flexibly return profits to shareholders through authorizing the Board of Directors to make a decision for interim
dividends.
e. Requirements for the special resolution at the General Meeting of Shareholders
The Articles of Incorporation stipulate that the special resolution at the General Meeting of Shareholders defined in Article
309, Paragraph 2 of the Companies Act shall be made by two-thirds of the vote attended by the shareholders holding at least
one-third of the voting rights of the shareholders who are entitled to exercise their voting rights. The purpose of this is tofacilitate the operation of the General Meeting of Shareholders through easing the quorum for the special resolution at theGeneral Meeting of Shareholders.

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

f. Business execution and management oversight
The Representative Director monitors and supervises the business activities executed by the executive officers andemployees of the operating companies by participating in major meetings and other meetings held in the operatingcompanies. The directors who are members of the Audit and Supervisory Committee conduct audits aimed at checking thestatus of business execution by the directors, executive officers and employees in accordance with related laws andregulations, the article of incorporation, and the audit standards and guidelines established for and by the Audit andSupervisory Committee, by participating in the Board of Directors meeting and reviewing the results of the audits conductedby the Internal Audit Office and Accounting Auditor.
A system to ensure sufficient oversight of business execution by executive officers is established, which include the regularexchange of opinions between the Representative Director and the members of the Audit and Supervisory Committee on the
results of the aforesaid audit activities.
④ Basic Policies on the Control of the Joint-share Company
a. Details of Basic Policy
The Company believes that the persons and/or entities (hereinafter referred as “Persons”) who control decisions on the
Company’s financial and business policies need to understand the source of the Company’s corporate value and will make itpossible to continually and persistently ensure and enhance the Company’s corporate value and, in turn, the common
interests of its shareholders. The Company believes that a decision on any proposed acquisition that would involve a changeof corporate control of the Company should ultimately be made based on the intent of its shareholders as a whole. Also, theCompany would not reject a large-scale acquisition of the shares in the Company if it would contribute to the corporate
value of the Company 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 valueof the 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 ① fully understand the importance of 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; ②striving aggressively to
win in the market as the customers’ preferred partner with a deep understanding of the Company’s corporate philosophy; ③appreciating employees who have a strong sense of responsibility to thoroughly pursue customer satisfaction, andproactively working on building a workplace environment that can make each and every employee feel rewarded, motivatedand proud of being a member of the Coca-Cola family; and ④ contributing to local communities and proactively dealing
with environmental issues with a strong sense of responsibility as a corporate citizen that continues to strive to assist in therealization of an affluent society, preserve relationships of mutual trust with customers, business partners, shareholders andemployees and perform to their expectations, and make it possible to continually and persistently ensure and enhance theCompany’s corporate value and, in turn, the common interests of its shareholders from a mid- to long-term perspective.
Therefore, the Company believes that Persons who would make a large-scale acquisition of the shares in the Company in amanner that does not contribute to the corporate value of the Company, and, in turn, the common interests of its shareholders
would be inappropriate to become Persons who would control decisions on the Company’s financial and business policies.
The Company believes that it is necessary to ensure and enhance the corporate value of the Company and, in turn, thecommon interests of its shareholders by taking the necessary and reasonable countermeasures against a large-scaleacquisition of the shares in the Company by such Persons.

47

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

b. Initiatives to realize the basic policies(a) Summary of special initiatives that contribute to realizing the basic policies
The Group not only assumes a leading role in transforming the Coca-Cola business in Japan by deploying various joint
initiatives such as product development and test marketing with The Coca-Cola Company and Coca-Cola (Japan)
Company, Limited (100% subsidiary of The Coca-Cola Company) as a strategic partner, but also strives to become acompany trusted by the stakeholders of consumers, customers, shareholders, and employees.
Soft drink industry volume growth in Japan is expected to be muted, given the developed nature of the market as awhole, and the business environment surrounding the Company is projected to stay competitive as multiple players
compete in the market.
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 thatis comprised exclusively of external directors, including multiple independent external directors. To strengthen the
management oversight function, these external directors that serve as members of the Audit and Supervisory Committee
have each been granted with a voting right in the Board of Directors meetings, in addition to the right to state theiropinions in shareholders’ meetings on matters pertaining to the designation of board members and their remuneration,
among others. In order to separate the decision-making, business management and business execution functions, theCompany is implementing a corporate executive officer system. In addition to the foregoing, for more fruitfuldeliberations of highly important matters in the Board of Directors meetings, the Company is delegating the authority tomake decisions on certain important matters that require prompt business executions to the executive leadership teams aswell as facilitating speedy decision making of other matters.
(b) Outline of measures to prevent inappropriate Persons from controlling the finance and business policy decisions of theCompany in light of the basic policy
Upon any substantial acquisition of the Company shares, the Company strives to proactively collect and timely disclose
information in order to ensure and improve the corporate value of the Company and the common interest of shareholders
as well as make appropriate measures as needed under the scope permitted by laws and regulations and the Articles ofIncorporation.
When Board Meeting determines it necessary to apply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into consideration of the future trend of
the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the Articles ofIncorporation for decision of the implementation.
c. Decisions of the Company’s Board of Directors regarding specific measures and reasons therefor
The measure described in the previous b. (a) was introduced as a specific measure to continuously and sustainably
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.

48

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

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

Name

Brief history

Date of birthTerm of office

Number ofshares held(Thousandsof shares)June 1993 Joined Coca-Cola Leventis
January 2000 Joined Coca-Cola Hellenic Bottling Company S.A.
January 2005 General Manager and Administrator in charge of Romania andMordovian Republic, Coca-Cola Hellenic Bottling Company S.A.
July 2011
Executive Corporate Officer, Coca-Cola West Co., Ltd.
March 2012 Representative Director, Coca-Cola West Co , Ltd.
Vice President, Coca-Cola West Co., Ltd.
July 2013
Representative Director & President, Coca-Cola East Japan Co., L

Representative
Calin Dragan
Director,
President

Representative
Director,
Vice
President,
Bjorn Ivar
Chief
Ulgenes
Financial
Officer (Headof FinanceOne year from
Regional Director, The Coca-Cola Company Bottling Investments the Ordinary
GeneralGroup
October 24,
Meeting ofRegional Director, Coca-Cola Far East Limited
1966
January 2018 President, The Coca-Cola Company Bottling Investments Group Shareholders
held on March
March 2019 Executive Officer, Vice President, Coca-Cola Bottlers Japan Holdi 2024
Inc.
Executive Officer, Vice President, Coca-Cola Bottlers Japan Inc.
March 2019 Representative Director, President, Coca-Cola Bottlers Japan
Holdings Inc. (incumbent)
Representative Director, President, Coca-Cola Bottlers Japan Inc.
(incumbent)
January 2022 Representative Director, President and CEO, Coca-Cola Bottlers
Japan Inc. (incumbent)
July, 1997 Joined The Coca-Cola Company
August 2005 Finance Director North & West Africa Business Unit, The CocaCola Company
May 2008 Finance Director & Executive Assistant to the Business Unit
President, North & West Africa Business Unit, The Coca-Cola
Company
June 2009 GM Innovation & EA, North & West Africa Business Unit, The
Coca-Cola Company
February
Senior Vice President Finance, The Coca-Cola (Japan) Co , Ltd.
2010
January 2013 Finance Director, Central, East & West Africa Group, The CocaCola Company
April 2016 Deputy Finance Director, Europe, Middle East &Africa (EMEA)Group, The Coca-Cola Company
October 2018Senior Executive Officer, Head of Finance, Coca-Cola Bottlers
Japan Holdings Inc.
Senior Executive Officer, Head of Finance, Coca-Cola Bottlers
Japan Inc.
November Representative Director & President, Senior Executive Officer,
One year from2018
Head of Finance, Coca-Cola Bottlers Japan Sales Support Inc.
the Ordinary
January 2019 Representative Director & President, Senior Executive Officer,
GeneralHead of Finance, Coca-Cola Bottlers Japan Business Services
April 5, 1968
Meeting ofInc. (incumbent)
February
Executive Officer, Head of Finance, Coca-Cola Bottlers Japan
Shareholders
2019
Holdings Inc.
held on March
Executive Officer, Head of Finance, Coca-Cola Bottlers Japan
2024
Inc.
March 2019 Representative Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
Vice President, Chief Financial Officer (Head of Finance, CocaCola Bottlers Japan Holdings Inc. (incumbent)
Representative Director, Coca-Cola Bottlers Japan Inc.
(incumbent)
Vice President, Chief Financial Officer (Head of Finance, CocaCola Bottlers Japan Inc.
December Chairman and Representative Director, Q’SAI CO., LTD
2019
January 2022 Vice President and Chief Financial Officer (Head of Finance)
Representative Director, Vice President, and CFO of Coca-Cola
Bottlers Japan Inc. (incumbent)
March 2022 Representative Director & Chairman, Coca-Cola Bottlers Japan
Business Services Inc.
November Representative Director, Chairman and President, Coca-Cola
2022
Bottlers Japan Business Services Inc. (incumbent)
January 2024 Representative Director, NeoArc Inc. (incumbent)

May 201749

93

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

Name

Date of birth

Brief history
April 1977

Director

Director

Director

Hiroko Wada

Hirokazu
YamuraCelso
Guiotoko

January 3,
1959

Number of shares
held(Thousands ofshares)

One year fromthe Ordinary
GeneralMeeting of
Shareholders
held on March2024－

One year fromthe Ordinary
GeneralMeeting of
Shareholders
held on March2024－

One year fromthe Ordinary
GeneralMeeting of
Shareholders
held on March
2024－

Joined Procter & Gamble Sunhome Co., Ltd.

January 1998 Vice President, In charge of Corporate New Ventures, Asia,
The Procter & Gamble Company (U.S.)
March 2001 Representative Director & President, Dyson Ltd.
April 2004 Representative Director, President & COO, Toys “R” UsJapan, Ltd.
May 4, 1952 November Representative, Office WaDa (incumbent)
2004
May, 2009 Outside Director, Aderans Holdings Co., Ltd.
June 2016 Outside Director, Shimadzu Corporation (incumbent)
March 2019 Outside Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
March 2019 Outside Director (Audit & Supervisory Committee member),Unicharm Corporation
October 2006Joined Michinoku Coca-Cola Bottling Co., Ltd

September
28, 1977

Term of officeFebruary
Director, Michinoku Coca-Cola Bottling Co., Ltd
2009
March 2012 Managing Director, Michinoku
Coca-Cola Bottling Co , Ltd.
March 2013 Senior Managing Director, Michinoku Coca-Cola BottlingCo., LtdMarch 2014 Representative Director & President, Michinoku Coca-Cola
Bottling Co.,
Ltd. (incumbent)
March 2020 Outside Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
December Joined Banco Bradesco SA
1983
January 1985 Senior Manager, Arthur Andersen (Accenture)
March 1996 System Director, Toshiba America Electronic Components,
Inc.
December Solution Service Vice President, i2 Technologies Japan, Inc.
1997
May 2004 Vice President & CIO (Chief Information Officer), Nissan
Motor Co., Ltd.
April 2006 Corporate Vice President & CIO, Nissan Motor Co., Ltd.
April 2014 Senior Corporate Vice President & CIO, Nissan Motor Co.,Ltd.
June 2017 Statutory Auditor, Nissan Motor Co., Ltd.
March 2019 Outside Director (Audit & Supervisory Committee
member), Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer, Global Chief Digital Officer, NishimotoCo., Ltd.
March 2020 Director, Global Chief Digital Officer, Nishimoto Co., Ltd.
March 2023 Outside Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
Director, Senior Advisor, Nishimoto Co., Ltd. (incumbent)
January 2024 Director, NeoArc Inc. (incumbent)

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

Name

Date of birth

Brief history
April 1975 Joined Japan Radio Co., Ltd.
January 1979 Joined Sony Corporation
October 2001Representative Director and President, Sony Ericsson Mobile
Communications Corporation
April 2003 CVP, Sony Ericsson Mobile Communications Corporation AB

Director(Audit &Supervisory
Committee
member)Hiroshi
Yoshioka

October 26,
1952

November
2005
April 2008
April 2009

Corporate Executive, SVP, Sony Corporation
Corporate Executive, EVP, Sony Corporation
Executive Deputy President Officer, Sony Corporation
Outside Director, Coca-Cola East Japan Co., Ltd.
Outside Director, Coca-Cola Bottlers Japan Inc.
Outside Director, Coca-Cola Bottlers Japan Holdings Inc.

July 2013
April 2017
January 2018
March 2023 Outside Director (Audit & Supervisory Committee member),Coca-Cola Bottlers Japan Holdings Inc. (incumbent)

Term ofofficeNumber ofshares held(Thousandsof shares)

Two years
from theOrdinary
GeneralMeeting of
Shareholders held on
March 2023

4

Two years
from theOrdinary
GeneralMeeting of
Shareholders held on
March 2023－

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

Director(Audit &Supervisory
Committee
member)Nami Hamada

August 3,
1964

Senior Vice President, Lehman Brothers Japan Inc.
Representative Director, HDH Advisors Japan Limited.

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

51

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

Director(Audit &Supervisory
Committee
member)Director(Audit &Supervisory
Committee
member)Name

Stacy Apter

Sanket Ray

Date of birth

July 14,
1966

April 25,
1973

Brief history
2005
Joined The Coca-Cola Company
May 2018 Director, Treasury, The Coca-Cola Company
July 2018
Assistant Treasurer, The Coca-Cola Company
October 2018Chief of Staff to the Chairman and CEO, The Coca-Cola
Company
January 2021 Deputy Treasurer, The Coca-Cola Company
March 2021 Vice President & Treasurer, The Coca-Cola Company
October 2022 Vice President, Treasurer and Corporate Finance, The
Coca-Cola Company
March 2023 Outside Director (Audit & Supervisory Committee
member), Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
April 2023 Director Synovus Financial Inc. (incumbent)
January 2024 Senior Vice President and Treasurer, Head of Corporate
Finance, The Coca-Cola Company (incumbent)
2004
Joined The Coca-Cola Company
2005
Joined HINDUSTAN COCA-COLA BEVERAGESPRIVATE LIMITED (INDIA)
August 2016 CEO, COCA-COLA BEVERAGES VIETNAM
LIMITED
January 2019 Chief Operating Officer for mainland China, The CocaCola Company
February
President of India and Southwest Asia, The Coca-Cola
2020
Company (incumbent)
March 2023 Outside Director (Audit & Supervisory Committee
member), Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
Total(Note)

1.
2.

Term of office

Number ofshares held(Thousands ofshares)Two years
from theOrdinary
GeneralMeeting of
Shareholders
held on March2023－

Two years
from theOrdinary
GeneralMeeting of
Shareholders
held on March
2023

－

16

Hiroko Wada, Hirokazu Yamura, Celso Guiotoko, Hiroshi Yoshioka, Nami Hamada, Stacy Apter and Sanket Ray are Outside
Directors.
The Group has introduced a corporate executive officer system to accelerate the execution of business and clarify responsibilities.
The total number of executive officers is 10, including representative directors.

52

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

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

OutsideDirector

OutsideDirector

OutsideDirector

Name

Relationship with the Company

Status of appointment

The Company has appointed Hiroko Wada as a Director (Outside Director) in order for her toutilize, for the management of the Company, the considerable experiences and global knowledge
she has gained thus far as officer at The Procter & Gamble Company and as Representative
Hiroko Wada －Director at Toys “R” Us Japan Ltd.
There is no relationship of special interest between her and the Company, and no risk that conflictsof interest with general shareholders. Therefore, the Company has designated her as anindependent director.
Hirokazu Yamura is the
The Company has appointed Hirokazu Yamura as a Director (Outside Director) in order for him toRepresentative Director andutilize, for the management of the Company, the considerable experiences and knowledge he has
President of Michinoku Cocagained thus far as the Representative Director and President of Michinoku CCBC.
Cola Bottling Company, Co., Ltd The Company also has transactions with the group companies of Michinoku CCBC, but the(hereafter “Michinoku CCBC),” transaction volume is very small. In addition, the trading prices and other terms and conditions
which is a trading partner of the applied to these transactions are fair and consistent with the trading prices and other terms andGroup. The amount of sale ofconditions applied to transactions with other trading partners. We therefore believe that these
Hirokazu
products, etc. to Michinoku
group companies of Michinoku CCBC pose no risk of obstruction of our free and fair business
YamuraCCBC is equivalent to 0.5% ofactivities.
the Company’s consolidated net The Company has designated Hirokazu Yamura as an independent director based on our judgment
revenue, and the amount ofthat the current transactional ties with Michinoku CCBC and its group companies do not have any
purchase of products, etc. fromsignificant impact on our business, and that there is no relationship of special interest between him
Michinoku CCBC is equivalent and the Company, and no risk of causing any conflict of interest with general shareholders.
to 1.9% of the consolidated
revenue of Michinoku CCBC.
The Company has appointed Celso Guiotoko as a Director (Outside Director) in order for him toutilize, for the management of the Company, the considerable experiences and global knowledge
he has gained thus far as Nissan Motor Co., Ltd. (“Nissan”) as well as Nishimoto Co., Ltd.
Celso
There is no relationship of special interest between him and the Company, and no risk that－
Guiotokoconflicts of interest with general shareholders. Therefore, the Company has designated him as anindependent director.

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

53

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

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

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

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

44Nami Hamada

5

5

Stacy Apter

4

4

Sanket Ray

44

Hiroshi Yoshioka, Stacy Apter, and Sanket Ray were elected at the 66th Ordinary General Meeting of Shareholders held on
March 28, 2023 and attended all 4 times of the Audit and Supervisory Committee held after their election in the fiscal year
ending 31 December 2023.
The matters mainly handled by the Audit and Supervisory Committee during the fiscal year under review were as follows.
Agenda items

Description
Formulation of audit policy, preparation of audit reports, reappointment ofMatters to beaccounting auditors, agreement on the remuneration of accounting auditors,
resolved
formation of opinions on appointment and remuneration of directors, etc.
Matters for
Remuneration of Audit and Supervisory Committee members,
discussion
Prior approval of non-assurance engagement by the independent auditor, etc.
Confirmation of the development and operation of the internal audit system (status
Matters to beof activities related to internal audit, finance governance, business systems, risk
reported
management, ethics, and compliance, etc.), reports from the accounting auditor on
the results of the accounting audit, etc.
The members of the Audit and Supervisory Committee use their broad knowledge and extensive experience to express
objective audit opinions from an independent and neutral standpoint and to present candid opinions at the Board of Directors
Meetings and Audit and Supervisory Committee Meetings.
b. Internal Audit Status(a) Internal audit organization, members, and procedures
The Group's internal audits are conducted from an independent and objective standpoint to ensure the Company's
compliance with laws and regulations, proper activities and operations, preservation of assets, effectiveness and efficiency ofoperations, and financial reliability. Management audits and operational audits of operating organizations and affiliatedcompanies are conducted in accordance with its annual audit policies and plans. The Internal Audit Office has been
established as an internal audit department composed of 14 members as of December 31, 2023.
(b) Collaboration between Internal Audit office, Audit and Supervisory Committee and accounting auditors, and therelationship between these audit bodies and Internal Control Division
The Internal Audit Office collaborates with the Audit and Supervisory Committee and the accounting auditors to further
enhance the effectiveness of audits. As for the annual audit policy and audit plan of the Internal Audit Office, prior approval
from the Audit and Supervisory Committee are obtained, and opinions are exchanged regularly with the Audit andSupervisory Committee that receives reports on the results of audits conducted by the Internal Audit Office. In addition, theAudit and Supervisory Committee and the Internal Audit Office receive explanations of the audit plan from the external
accounting auditor at the beginning of the fiscal year, and request explanations and reports from time to time regarding the
progress status of the audits during the fiscal year and the results of year-end audits, among others. Furthermore, close
collaboration with the Internal Control Division is maintained by holding regular meetings to exchange opinions andinformation. Specific details of collaboration between the Internal Audit Office and the Board of Directors, Audit &Supervisory Committee, accounting auditors, and Internal Control Division are as follows.

55

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

Department

Name of meeting

Board of Directors

ReportAudit and Supervisory
Committee

ReportAccounting auditors
Internal Control
Division

Summary
Report on evaluation of internal control overfinancial reporting
Report on the annual activity plan for internal
auditsReportReport on the results of internal audits

Exchange of informationand opinions
Exchange of informationand opinions
Exchange of informationand opinions

Exchange of opinions pertaining to the reportson the results of internal audits
Exchange of opinions on evaluation ofinternal control over financial reporting
Exchange of opinions on evaluation ofinternal control over financial reporting

PeriodFebruary
February
May, August,NovemberMay, August,NovemberMonthlyMonthly(c) Initiatives to ensure the effectiveness of internal audits
In order to fully demonstrate the independent function of internal audit to ensure its effectiveness, a dual reporting
relationship is maintained, which consists of a direct reporting route to the Board of Directors and to the Audit andSupervisory Committee as described above, in addition to the reporting route to the CEO, who serves as the head of thebusiness execution body of the Group.
c. Accounting Audit Status(a) Name of audit firm
Ernst & Young ShinNihon LLC(b) Continuous audit period
6 years(c) The certified public accountants who performed the accounting audit
Certified public accountant who performed the accounting audits
Designated Limited Liability Partner

Engagement Partner

Makoto Matsumura

Designated Limited Liability Partner

Engagement Partner

Keita Tsujimoto

Designated Limited Liability Partner

Engagement Partner

Keisuke Kishi(d) Composition of assistants involved in audit work
11 certified public accountants and 38 others were involved as audit assistants.
(e) Audit firm selection policy and reasons(Evaluation of the audit firm by Audit & Supervisory Committee)
The Audit and Supervisory Committee evaluates the accounting auditor’s quality control structure, global auditing
system, and appropriateness, independence, etc. of the audit comprehensively, confirms that the audit by Ernst & Young
ShinNihon LLC is appropriate and reasonable, and passes a resolution for its reappointment
In the case that it is determined that the accounting auditor falls under any of the dismissal events listed in the items of
Article 340, Paragraph 1 of the Companies Act, the Audit and Supervisory Committee will remove the accounting
auditor with the consent of all members. In this case, a committee member selected by the Audit and Supervisory
Committee will disclose the removal and its reason at the Meeting of Shareholders convened for the first time after theremoval.
Additionally, concerning dismissal or non-reappointment of the accounting auditor, the Audit and Supervisory
Committee shall decide contents of a proposed resolution they submit to the General Meeting of Shareholders, in theevent they determine that it is necessary to do so in cases such as where the accounting auditor is recognized to havedifficulty in properly fulfilling its auditing duties.

56

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

(f) Evaluation of the Accounting Auditor by the Audit and Supervisory Committee
The Audit and Supervisory Committee evaluates the accounting auditor’s quality control structure, global auditing
system, and appropriateness, independence, etc. of the audit comprehensively, confirms that the audit by Ernst & Young
ShinNihon LLC is appropriate and reasonable, and passes a resolution for its reappointment.
(g) Details of remuneration to independent auditors①Compensation for auditing certified public accountants
Previous fiscal year
Category

The Company
Consolidated
subsidiaries
Total

Remuneration for on
audit assurance services(Millions of yen)

Current fiscal year

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

Remuneration for on
audit assurance services(Millions of yen)

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

71

－

68

－

116

10

115

1

187

10

183

1

Non-audit services to consolidated subsidiaries for previous fiscal year was assistance for preparation of integrated report. Nonaudit services to consolidated subsidiaries for current fiscal year was an advisory service for Integrated report disclosing
information on Science Based Targets.
②Remuneration for organizations belonging to the same network as auditing certified public accountants (excluding ①.)
Previous fiscal year
Category

The Company
Consolidated
subsidiaries
Total

Remuneration for on
audit assurance services(Millions of yen)

Current fiscal year

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

Remuneration for on
audit assurance services(Millions of yen)

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

－

－

－

－

2

15

3

12

2

15

3

12

Non-audit services provided by the same network of certified public accountants (EY Strategy and Consulting Co., Ltd.) was anadvisory service for disclosing information on climate change risks.
③Other material remuneration to independent auditors
Previous fiscal year (January 1, 2022, to December 31, 2022) and current fiscal year (January 1, 2023, to December 31,
2023)
Not applicable.

57

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

④Details of non-audit services rendered by independent auditors
Previous fiscal year (January 1, 2022, to December 31, 2022)
Not applicable.
Current fiscal year (January 1, 2023, to December 31, 2023)
Not applicable.
⑤Reason for the Audit and Supervisory Committee to Have Agreed the Amount of Renumeration Payable to the
Accounting Auditor, etc.
The Audit and Supervisory Committee confirmed and reviewed the appropriateness and adequacy of the audit plans,
audit hours, implementation status and grounds for the estimate of the remuneration as submitted by the accounting
auditor before granting approval to the remuneration payable to the accounting auditor.
(4) Officer compensation, etc.
①Compensation policy and process for determining the policya. Policy and Method of Determination of Remuneration, etc. for Directors(a). Basic policy on compensation for Executive Directors and Executive Officers(i) Compensation level and structure that enable hiring and retaining high-quality talents from the perspective of diverse
nationalities and experiences.
(ii) Compensation composition ratio emphasizing performance-linked compensation, resulting in providing sufficientincentives for profitable growth.
(iii) Introduce the system to further improve mid- to long-term corporate value and reinforce alignment of interests with theshareholders.
(b). Supervisory Officers (Directors serving on the Audit and Supervisory Committee and Outside Directors not serving on the
Audit and Supervisory Committee)
The compensation level and structure that is appropriate as roles in managerial supervision and audit.
(c). Process for determining the policy
The policy for determining compensation for Officers, etc. shall be determined upon deliberation by the Audit andSupervisory Committee and approval by the Board of Directors.
The current policy (policy for determining compensation for Directors, etc.) has been resolved by the Board of Directors
on February 9, 2023, and February 14, 2024.

58

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

(ii) Activities of the Audit & Supervisory Committee
Activities of the Audit & Supervisory Committee concerning the determination of Officer compensation for FY2023 are as
follows.
(1) Number of meetings of the Audit and Supervisory Committee held over one year from January 2023 to December 2023: 5(2) Main subjects discussed by the Audit & Supervisory Committee concerning Officer compensation and Officer
compensation structure in FY2023:
・Payment of 2022 Annual Incentive and Non-vesting of 2020 Long term Incentive for Directors and Executive Officers
・FY2022 Retention measures
・FY2023 Executive Compensation Proposal
・FY2023 Compensation for Audit and Supervisory Committee Members
・FY2023 special RSU
・FY2023 Individual Objectives of Directors and Executive Officers
・Compensation for retired Executive Officers
・Establishment of trusts for stock-based compensation(c). Compensation level
Compensation is decided according to the responsibilities by utilizing data from compensation surveys performed byexternal research organizations and taking into account the level of compensation provided at companies such as domestic andoverseas companies of similar scale in similar industries with the intent to provide a level of compensation that enables
recruitment and retention of talented people who are highly diverse in terms of nationality, experience, etc.
Image of compensation structure (in case of Representative Director)③Guidelines and procedures for determining compensation for Supervisory Officers
The compensation for Supervisory Officers (Directors who are Audit & Supervisory Committee Members and Outside
Directors who are not Audit & Supervisory Committee Members) is composed of basic compensation only in view of their role assupervisors and auditors of CCBJI business. Compensation levels are set according to the role of the Director by utilizing datafrom compensation surveys performed by external research organizations and taking into account the level of compensation
provided at domestic companies of similar scale.
The individual compensation for Directors serving on the Audit and Supervisory Committee is proposed to the Audit andSupervisory Committee and determined upon consultation with Directors serving on the Audit and Supervisory Committee within
the total amount determined by the resolution of the General Meeting of Shareholders. The compensation for Outside Directors
not serving on the Audit and Supervisory Committee shall be delegated to a Representative Director (Calin Dragan) upon
resolution by the Board of Directors, and the amount shall be determined by the Representative Director in accordance with the“Policy for Determining Compensation for Directors, etc.” approved by the Board of Directors after the terms of compensation
are deliberated by the Audit and Supervisory Committee. The reason for delegating these authorities to the President andRepresentative Director is that the President and Representative Director is considered to be the most appropriate person toevaluate the responsibilities of each Director. To ensure that such authority is appropriately exercised by the President andRepresentative Director, decisions on the details of compensation for outside directors who are not members of the Audit andSupervisory Committee are made after deliberation by the Audit and Supervisory Committee. Therefore, the Board of Directors
deems that the content of these remunerations is in line with the above decision-making policy.

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

d.

Payment rate, etc. of incentive compensation(a) In alignment with the strategic business plan and the goal of achieving it, business income, sales volume and net sales are
set as proper performance metrics of Annual Bonus to measure company performance of the Company in the previous years.
Performance is calculated based on predetermined targets and actual achievement, weighted average achievement for
FY2023. The achievement level of the company's business performance for the period under review was 132%. Sales volume
grew and both sales and income increased due to the success of sales activities to seize opportunities for increased demandagainst the backdrop of a recovery in the workforce, revitalization of economic activities, and the extremely hot summer, etc.
The effects of cost reduction efforts were realized ahead of schedule, and the impact of soaring raw material, material, andenergy prices, etc. was suppressed. The individual performance evaluation-based payout rate for Executive Directors was
120%. Based on the company performance, individual performance evaluation and the status of payment of bonuses to
employees, the Audit and Supervisory Committee discussed and reviewed the final payout rate (rate of actual annual incentive
paid against target payout) for FY2023. As a result, it determined that 136% is reasonable.
(b) The PSUs for FY2021 were evaluated for the three-year period from 2021 to 2023. The consolidated ROE andconsolidated sales revenue growth rate were selected as performance evaluation indicators, and performance was evaluatedbased on the degree of achievement of these targets, and the performance achievement, which is the weighted average of thedegree of achievement of each indicator target for the relevant period, was 29.1%. The vesting rate of PSU granted against
target value fluctuates between 0 - 150% depending on achievement levels of performance targets. Based on the abovementioned result, the payout rate of the PSU (rate of PSU’s granted against target) is 0%. The vesting rate of PSU granted in
2022 and 2023 are calculated based on ROE for the final fiscal year of the relevant performance period and the annual
average sales growth rate for the relevant performance period. Therefore, we are making a reasonable estimate based on ourearnings forecast at this time.

63

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

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

89

2,778

Shares other than nonlisted shares

17

4,513

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

-

-

-

Shares other than nonlisted shares

5

10

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

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

16

303

Shares other than nonlisted shares

29

4,928

64

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

Deemed holding shares
Not applicable.
b. Investment shares held for the purpose of pure investment
Not applicable.
c. Investment shares initially held for the purpose of pure investment that the Company changed to investment shares held not
for the purpose of pure investment during this fiscal year
Not applicable.
d. Investment shares initially held not for the purpose of pure investment that the Company changed to investment shares held
for the purpose of pure investment during this fiscal year
Not applicable.

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

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

2. Note on independent audit
The Company has been audited by Ernst & Young ShinNihon LLC for the consolidated financial statements and the financial
statements as of and for the year ended December 31, 2023, pursuant to the provisions of Article 193-2, Paragraph 1 of the
Financial Instruments and Exchange Act.

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

69

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

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

Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

AssetsCurrent assets
Cash and cash equivalents

6,30

84,074

113,660

Trade and other receivables
Inventories

7,30
8

103,346
71,051

120,069
71,651Other financial assets
Other current assets

30
12

542
13,10888
8,288

272,122

313,7569425,009401,687

9,16
10

21,841
65,86523,89463,819

322

310

30

15,888

11,89827

20,581

25,222

12

5,110

4,245

554,615531,077

826,737

844,832

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

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

(Millions of yen)
Notes

Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Liabilities and equity
Liabilities
Current liabilities:
Trade and other payables

13,30

108,254

116,612

Bonds and debts

15,30

1,000

40,979Lease liabilities

16,30

5,122

5,267

Other financial liabilities

30

Income taxes payable
Other current liabilities

654
1,272

1,111
4,176

18

20,33929,297

136,641

197,443

15,30
16,30

155,701
18,146

114,802
20,34930
17

817,81715
19,856

14

1,761

1,781

Deferred tax liabilities

27

17,157

16,757

Other non-current liabilities

18

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

Total non-current liabilities
Total liabilities

3,147

3,809

213,737

177,369

350,378

374,812EquityCapital share
Capital surplus

19
19

15,232451,264

15,232
451,389

Retained earnings
Treasury share

19
19

94,209(85,667)

88,365(85,362)

Accumulated other comprehensive
income(loss)

19

1,177

223

476,216

469,847142

174

476,358

470,021826,737

844,832

Equity attributable to owners of the parent
Non-controlling interests
Total equity
Total liabilities and equity

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

②【Consolidated Statements of Income】
Notes
Revenue
Cost of sales
Gross profit
Selling and general administrative expenses
Other income
Other expenses
Investment income(loss) on equity method
Operating income (loss)
Financial revenue
Financial expense
Income (Loss) for the year before income taxes
Income tax expense (benefit)
Net income (loss) for the year

5,22

23
25
25

26
26
27

Net income (loss) for the year attributable to
Owners of the parent
Non-controlling interests
Earnings (Losses) per share (yen)Diluted earnings per share (yen)

34
34

72

For the year ended
December 31, 2022
807,430
455,675
351,755
365,295
9,312
7,332
46
(11,513)264
1,242(12,491)(4,432)(8,059)For the year ended
December 31, 2023
868,581484,364
384,216
381,022
5,156
4,902
(7)
3,441
535
753
3,224
1,321
1,903

(8,070)
11

1,871
32

(45.00)
-

10.43
10.36

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

③ 【Consolidated statements of comprehensive income】

Notes
Net income (loss) for the period
Other comprehensive income
Items that will not be reclassified subsequently toincome or loss:
Remeasurements of defined benefit plans
Net change in financial assets measured at fair value
through other comprehensive income
Subtotal
Items that may be reclassified subsequently to income
or loss:
Cash flow hedges

For the year ended
December 31, 2022
(8,059)(Millions of yen)
For the year ended
December 31, 2023
1,903

1,523

33

292

893

1,815

926

1,250

(587)
(587)

28

Subtotal
Total other comprehensive income for the period
Total comprehensive income for the period

1,250
3,065
(4,994)338
2,241

Comprehensive income attributable to:
Owners of parent
Non-controlling interests(5,005)
11

2,209
32

73

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

④ 【Consolidation statements of changes in equity】
The previous fiscal year ended December 31, 2022
(Millions of yen)

Notes

Balance as of January 1, 2022
Comprehensive income for the period
Net loss for the period
Other comprehensive income
Total comprehensive income for theperiodTransactions with owners
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares
Transactionsofshare-based
payment
Reclassification from accumulated
other comprehensive income toretained earnings
Reclassification from accumulated
other comprehensive income tonon-financial assets
Total transactions with owners
Balance as of December 31, 2022

Capitalstock
15,232Equity attributable to owners of the parent
Accumulated
CapitalRetained Treasury
othersurplusearnings
sharescomprehensiveincome450,832
109,273(85,661)
2,644

Total

Noncontrollinginterests

Total

492,320131

492,451－－－－(8,070)
－

－
－

－
3,065

(8,070)
3,065

11
－

(8,059)
3,065

－

－

(8,070)－

3,065(5,005)

11(4,994)

21
19
19

－
－
－

－
－
(0)

(8,967)
－
－

－
(6)
0

－
－
－

(8,967)
(6)
0

－
－
－

(8,967)
(6)
0

20

－

432

－

－

－

432

－

432

19

－

－

1,974

－

(1,974)

－

－

－

19

－

－

－

－

(2,558)(2,558)－(2,558)－15,232432
451,264(6,993)
94,209(5)(85,667)(4,532)
1,177(11,099)476,216－142(11,099)476,358

28

The current fiscal year ended December 31, 2023
(Millions of yen)
Equity attributable to owners of the parent

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares

15,232451,264

94,209(85,667)

Accumulated
othercomprehensiveincome
1,177

－
－

－
－

1,871
－

－
－

－
338

1,871
338

32
－

1,903
338

－

－

1,871

－

338

2,209

32

2,241

21
19
19

－
－
－

－
－
(149)

(8,967)
－
－

－
(5)
310

－
－
－

(8,967)
(5)
162

－
－
－

(8,967)
(5)
162

20

－

273

－

－

－

273

－

273

19

－

－

1,252

－

(1,252)

－

－

－

19

－

－

－

－

(41)

(41)

－

(41)

－
15,232

125451,389(7,715)88,365

305(85,362)(1,293)223(8,579)469,847－
174(8,579)470,021Notes
Balance as of January 1, 2023
Comprehensive income for the period
Net income for the period
Other comprehensive income
Total comprehensive income for theperiodTransactions with owners
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares
Transactionsofshare-based
payment
Reclassification from accumulated
other comprehensive income toretained earnings
Reclassification from accumulated
other comprehensive income tonon-financial assets
Total transactions with owners
Balance as of December 31, 2023

28

74

Total

Noncontrollinginterests

Total

476,216142

476,358

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

⑤ 【Consolidated statements of cash flows】(Millions of yen)Notes

For the year ended
December 31, 2022

For the year ended
December 31, 2023

(12,491)

3,224

45,786
20
(655)
(237)
750

46,460
288
(29)
(178)
660

(46)

7

(4,587)(4,425)

2,111

1,258

2,603
(3,450)
2,611
1,379
2,541
4,910
2,521
43,7670237(654)(4,820)4,187
42,717(16,711)
(600)
2,475
10,8402,089
10,0395,768
61,1640
178(577)(3,627)
1,964
59,1029,10(32,674)(31,624)

9,10

7,127

11,806

(25)
2,432
51
(23,090)

(21)
5,542
11

Cash flows from operating activities
Income (loss) before income taxes
Adjustments for:
Depreciation and amortization
Impairment loss
Decrease in allowance for doubtful accounts
Interest and dividends income
Interest expenses
Shares of loss (income) of entities accounted forusing equity method
Gain on sale of property, plant, and equipment
Loss on disposal and sale of property, plant andequipment and intangible assets(Increase) Decrease in trade and other receivables
Increase in inventories
Decrease in other assets
Increase in trade and other payables
Increase in net defined benefit liabilities
Increase in other liabilities
OthersSubtotalInterest received
Dividends received
Interest paid
Income taxes paid
Income taxes refund
Net cash generated from operating activities

11

Cash flows from investing activities
Payments for acquisitions of property, plant andequipment and intangible assets
Proceeds from sales of property, plant and equipment
and intangible assets
Payments for purchases of other financial assets
Proceeds from sale of other financial assets
OthersNet cash used for investing activities

75(14,287)

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

Notes
Cash flows from financing activities
Decrease in short-term loans payable
Repayments of long-term loans payable
Payments for bond redemption
Dividends paid
Proceeds from disposal of treasury shares
Payments for purchases of treasury shares
Repayments of lease liabilities
Net cash used for financing activities

29
29
29
21

29

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

676

For the year ended
December 31, 2022

For the year ended
December 31, 2023

(38)
(1,065)(30,000)(8,967)0(6)(5,974)(46,050)－(1,000)－(8,967)162(5)(5,418)(15,229)(26,422)
110,497

29,586
84,074
113,660

84,074

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

【Notes to consolidated financial statements】
1. Introduction of reporting company
The Company is a holding company domiciled in Japan and is listed on the Tokyo Stock Exchange Prime Market.
Under the Coca-Cola brand, the Company, and its subsidiaries (collectively, the “Group”) engage in purchases, sales,bottling, packaging, distribution and marketing of carbonated beverages, coffee beverages, tea-based beverages, mineralwater, and other soft drinks in Japan. After 1999, we have integrated our operations with five Coca-Cola bottlers, andbecame a Coca-Cola bottler with a business covering approximately 45 million people in 22 prefectures in the Kinki,
Chugoku, Shikoku, and Kyushu regions. In April 2017, the Company entered into a share exchange contract whereby
Coca-Cola West Co., Ltd. became the sole parent company and Coca-Cola East Japan Co., Ltd. became a wholly owned
subsidiary. Coca-Cola West Co., Ltd. changed its trade name to Coca-Cola Bottlers Japan Inc., and its entire business,
excluding the group operational management business and assets management business, was inherited by its whollyowned subsidiary “New CCW Establishment Preparation Company Co., Ltd.” (whose trade name changed to Coca-Cola
West Co., Ltd.), and Coca-Cola West Co., Ltd. had its corporate form transferred to a holding company. In January 2018,
Coca-Cola Bottlers Japan Inc. was renamed Coca-Cola Bottlers Japan Holdings Inc. to clarify its role as a holding
company.
The Group’s consolidated financial statements consist of the Company, subsidiaries, and associates. The consolidated
financial statements were approved by our Representative Director & President, Calin Dragan and our Representative
Director Vice President and Chief Financial Officer (Treasurer), Bjorn Ivar Ulgenes on March 27, 2024, and areconsidering the events after the reporting period to that date (see Notes 36, “Subsequent events”).
2. Basis of preparation(1) Framework for application of financial reporting
The Group’s consolidated financial statements have been prepared in accordance with the IFRS established byInternational Accounting Standards Board. The Group meets all of the requirements of a designated international
accounting standard specified company as set forth in Article 1-2 of the consolidated financial statements Regulations,so the provisions of Article 93 of the said Regulations are applied.
(2) Functional currency and presentation currency
Consolidated financial statements are stated in Japanese yen, the currency of the Company's principal economic
environment (“functional currency”). All consolidated financial information is rounded to the nearest million yen unlessotherwise stated.

77

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

3. Material accounting policies
The material accounting policies and the basis of measurement used by the Group for the preparation of theconsolidated financial statements is as follows: Unless otherwise indicated, these accounting policies are applied
continuously for all reporting periods presented.
(1) The basis of consolidation(a) Subsidiary
Consolidated financial statements consist of the financial statements of the Company and companies controlled by
the Company's groups (“subsidiary”). The Group controls an investee when the Group has power over the investee,
has exposure or rights to change returns arising from its involvement with the investee, and has the ability to affectthose returns through its power in the investee. If any of these events or changes in the environment occur, theCompany will reassess the control of the investee.
Transactions with non-controlling interest that do not involve a loss of our control are accounted for as equity
transactions. The difference between the fair value of consideration paid and the amount equivalent to the acquisition
or loss equity in the carrying amount of subsidiary's net assets is recognized in equity. If the Group loses control ofthe subsidiary, the remaining interest in the entity is remeasurement at the fair value of the date of loss of control, andall changes in carrying amount are recognized in profit or loss.
All intercompany transactions, outstanding and unrealized gains have been eliminated in consolidation.
(b) Investment in associate accounted for using equity method
In consolidated financial statements, investments in associate are accounted for using the equity method. Under
equity method, investments in associate are initially recognized at cost, and subsequently, the Group's share of profit
or loss after the associate share acquisition is recognized in profit or loss, while changes in the Group's share of
associate's other comprehensive income are recognized in other comprehensive income. Dividend income ordividends receivable from associate is deducted from carrying amount of its investments.
(2) Business Combination
For each business combination, the Group recognizes non-controlling interest of acquiree in either fair value or a
proportionate share of acquiree's identifiable net assets. If the sum of the consideration transferred, the non-controllinginterest of acquiree and the fair value in the acquisition date of the previously owned equity interest in acquiree exceeds
the fair value of identifiable net assets, the difference is recognized as goodwill in assets.
(3) Foreign currency translation
Foreign currency transaction is translated into the work functional currency of each group company at the exchange
rate of the transaction date.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of eachcompany at the exchange rate of the reporting date. Non-monetary assets and liabilities denominated in foreign
currencies for measurement in fair value are translated at the exchange rate on the date determined by fair value. Nonmonetary items denominated in foreign currencies and measured at cost are translated at the exchange rate of thetransaction date. Foreign currency translation gains and losses are recognized in profit or loss.
(4) Business segments information
Operating segment is reported in a manner consistent with the internal reporting presented to the chief operating
decision maker. The chief operating decision maker is responsible for allocating resources and evaluating theperformance of the operating segment. The Board of Directors is positioned as the chief operating decision maker in theGroup.
(5) Cash and cash equivalents
Cash and cash equivalents consist of cash, demand deposits, and short-term investments with a maturity of threemonths or less from acquisition date, which are readily convertible into cash and bear insignificant risks of changes invalue.
(6) Inventories
Inventories are measured at the lower cost and net realizable value. Discounts, rebates, other similar items andinterest rates until the par value is reached are deducted from its cost. Manufacturing costs include direct materials,
direct labor, and manufacturing overhead. Net realizable value is calculated at estimated selling prices less estimatedselling costs and estimated selling expenses.
The Group typically calculates the cost of inventories based on the weighted-average method. If the net realizablevalue of inventories is less than its cost, the difference is recognized as expense in the consolidated statements of profit
or loss.

78

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

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

2 - 603 - 20

Sales equipment

2 – 11

Depreciation methods, estimated useful life, and estimated residual values are reviewed at the end of each fiscal year,
and any changes are applied prospectively as a change in accounting estimate.
Gains and losses from the sale or disposal of asset are measured as the difference between carrying amount and salevalue in "Other income" or "Other expense" in the consolidated statements of profit or loss.
(8) Intangible assets
Intangible assets are initially recognized at cost or manufacturing cost. Subsequent to initial recognition, intangible
assets are measured at cost less accumulated amortization and impairment losses. The Group evaluates intangible
asset's useful life to determine whether it is finite or indefinite and, if it is finite, evaluates useful life based on the
expected usable period.
The principal intangible asset with finite useful life is software, and amortization is calculated using the straight-line
method over the estimated useful life (5-10 years).
The amortization method, estimated useful life, and estimated residual value are reviewed at the end of each fiscal
year and applied prospectively as a change in accounting estimate in the event of any change.
Contract related intangible asset
In connection with the acquisition of the former Coca-Cola East Japan Co., Ltd., the Group's contract related
intangible asset is concluded with The Coca-Cola Company. This contract relates to the exclusive rights to manufacture,
distribute, and sell the Coca-Cola brand products in certain areas.
The contract is for 10 years and will be renewed without consideration of renewals or extensions.
The Group accounts for contract related intangible asset attributable to bottling contract as an intangible asset withindefinite useful life. The Group believe that it is unlikely that we will not renew or extend the contract due to ourhistorical relationship with The Coca-Cola Company and the possible adverse impact on our franchisors from thenonrenewal of the contract. Therefore, it is difficult to predict the periods during which assets may generate net cash
flows.
Contract related intangible assets are not amortized but are assessed for impairment annually and whenever events orchanges in circumstances indicate a potential impairment may occur.
(9) Leases (as a lessee)
The Group recognizes Right-of-use assets and lease liabilities at the commencement date of the lease. Right-of-use
assets are measured at cost on the commencement date. After the commencement date, the Right-of-use assets aremeasured at cost less any accumulated depreciation and any accumulated impairment losses using a cost model. The
lease period of the right-of-use asset is estimated as the non-cancellable lease period, together with both periods
covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and periods coveredby an option to terminate the lease if the lessee is reasonably certain not to exercise that option. Right-of-use assets are
depreciated by using the straight-line method, generally over 15 years from the commencement date.
Lease liabilities are measured on the commencement date at the present value of the lease payments that have notbeen made as of that date. After the commencement date, the carrying amount of the lease liabilities are adjusted toreflect the interest rate on the lease liabilities and the lease payments made. If the lease liabilities are revised or theterms of the lease are changed, the lease liabilities will be remeasured, and the Right-of-use asset will be revised.

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

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

80

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

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

81

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

(e) Derivative and hedge accounting
Derivative is initially recognized at the fair value of the date the derivative contract is concluded, and after initialrecognition, it is remeasured at fair value on the reporting date. Recognition of gains or losses resulting fromremeasurement depends on whether the derivative is designated as hedging instrument and, if specified as hedging
instrument, the nature of the hedged item. The Group designates certain derivatives as hedging instruments for cash
flow hedges (certain risks related to asset or liability, or highly probable forecast transaction hedges).
At the inception of the hedging relationships, the Group documents the relationships between hedging instrument andhedged item, as well as our risk management objectives and strategies for executing these hedging transactions. The
Group also documents the assessment, at the hedge's inception and on an ongoing basis, of whether the derivative
used in the hedge transaction is effective to offset changes in the cash flows of the hedged item.
The Group evaluates the hedge effectiveness on an ongoing basis and judges that it is effective when all of thefollowing conditions are met “there is the economic relationship between hedged item and hedging instrument,” “theimpact of credit risk is not materially superior to changes in value arising from economic relationships,” and “thehedge ratio of hedging relationships is the same as the ratio resulting from the volume of hedged item and hedging
instrument actually being hedged.”
The effective portions of changes in the fair value of derivative which is designated and qualifying as a hedging
instrument for cash flow hedge are recognized in other comprehensive income. Gains or losses on the ineffective
portion are recognized in profit or loss immediately.
Accumulated gains or losses recognized in other comprehensive income are reclassified to profit or loss in the
period in which the cash flows arising from the hedged item affects profit or loss. However, if the forecast
transaction which is a hedged item results in the recognition of a non-financial asset (e.g., inventories), the gain orloss previously recognized in other comprehensive income is reclassified into the measurement of the initial cost of
the related asset. Such amounts are ultimately recognized as the cost of goods sold in the case of inventories.
Hedge accounting is discontinued prospectively if the hedge relationship no longer meets the qualifying criteria
due to the extinction or sale of hedging instrument. If the hedged cash flows are expected to be incurred in the future,
the accumulated gains or losses recognized in other comprehensive income will continue to be recognized as anaccumulated other comprehensive income. If a forecast transaction is no longer expected to occur, the cumulative
gains or losses recognized in other comprehensive income is reclassified to profit or loss.
(12) Provision and contingent liabilities
Provision is measured at the present value of the best estimate of the amount that would be required to pay or transfer
the obligation, taking into account probability that event occurs and its impact. The reversal of the discount by passageof time is recognized as financial expense.

82

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

(13) Employee benefits(a) Short-term employee benefits
Short-term employee benefit is recorded as expense when the related services are rendered.
(b) Defined contribution plans
Contributions to the defined contribution plans are recognized as expenses in the period in which the employee
renders the services.
(c) Defined benefit plans
The Group’s net obligation related to defined benefit plans is calculated for each plan by estimating the number of
future benefits earned by employees prior to the current period, discounting the amount to the present value, anddeducting the fair value of plan asset.
Defined benefit plans obligations are calculated annually by actuaries using the projected unit credit method.
Remeasurement of defined benefit obligations, consisting of the actuarial gains and losses, return on plan asset(excluding interest) and impact of asset ceiling, is recognized in other comprehensive income, and immediately
reclassified from accumulated other comprehensive income to retained earnings. The Group calculates net interest
expense (income) for the fiscal year by multiplying the discount rate used to measurement the defined benefit plansobligation (asset) at the beginning of the fiscal year by the defined benefit plans obligation (asset) and the plan asset
at the beginning of the period.
Defined benefit plans obligations at the beginning of the fiscal year take into account all changes in defined benefit
plans obligations (asset) during the fiscal year due to contributions and benefit payments. Net interest expense andother expenses related to defined benefit plans are recognized in profit or loss.
(d) Other long-term employee benefits
The Group’s long-term employee benefits is calculated by discounting the estimated future benefit to its present
value.
The discount rate is determined based on the market yield on AA-rated corporate bonds at the reporting date,
which approximates the average remaining service period.

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

(14) Income taxes
Tax expenses consist of current tax and deferred tax. These are recognized in profit or loss except for items related tobusiness combination and items recognized directly in equity or other comprehensive income.
If income taxes relate to items that are directly recognized in equity or other comprehensive income, such taxes arealso recognized directly in other comprehensive income.
(a) Current tax
Current tax is the estimated amount of income tax payable or refund receivable in respect to the current taxable
income or loss, adjusted for income taxes payable and refund receivable through the previous year. The amount of
current tax is due to our best estimate of the amount of taxes reflecting uncertainties related to income taxes. Current
tax also includes taxes arising from dividends.
(b) Deferred tax
Deferred tax is recognized for the temporary differences between the carrying amount of asset and liability inconsolidated financial statements and its tax basis. Deferred tax assets and liability are recognized for the temporary
differences between the carrying amount of asset and liability and their tax bases at the reporting date, thecarryforward of unused tax losses and the carryforward of unused tax credits. The amounts are calculated based on
the tax rates expected to apply to the period in which the asset is realized or the liability is settled.
Deferred tax is not recognized in the following cases:
・ temporary differences related to the initial recognition of asset or liability in a transaction other than businesscombination that does not affect either accounting or tax basis;・ temporary differences related to investments in subsidiary, the associate and the joint arrangement, which theGroup will be able to control the timing of the reversal of the temporary difference and which it is probable thatthe temporary differences will not reverse in the foreseeable future; or・ taxable temporary differences arising from initial recognition of goodwill.
Deferred taxes are recognized in the following cases:
・ temporary differences arising from investments in consolidated subsidiary and associate is recognized to theextent that it is probable that it will be reversed and taxable income will be available.
Deferred tax assets are recognized as unused tax losses, unused tax credits and deductible temporary difference tothe extent future taxable income is available. Future taxable income is calculated based on business plans forindividual subsidiary in the Group. Deferred tax assets are reviewed at each reporting date and reduced for the
portion that is no longer probable that the tax benefit will be realized. Such reductions are reversed when thelikelihood of earning sufficient taxable income improves.
Unrecognized deferred tax assets are reviewed at each reporting date and recognized to the extent that they areprobable to be available for future taxable income. Deferred taxes are measured using the tax rates expected to apply
when the temporary differences are reversed under laws enacted or substantively enacted at the reporting date.
Deferred tax asset and liability are offset if there is a legally enforceable right to offset current tax asset against
current tax liability and deferred tax assets and liability are related to income taxes levied by the same taxing
business by the same taxing authority.

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

(15) Equity(a) Ordinary share
Ordinary shares are classified as equity. The incremental costs directly attributable to the issuance of ordinary
shares are deducted from equity, net of tax.
(b) Purchase and disposal of ordinary share (treasury share)
When the Group acquires treasury share, the consideration paid including direct transaction costs (net of tax) is
recognized as a deduction of shareholders' equity under the presentation of “Treasury share.” When the Group sells
treasury share, the difference between the sales price and the carrying amount is recognized as “Capital surplus.”(16) Dividends
Dividends to the Company’s owners is recognized as a liability of the period in which it is approved by theCompany’s owners.
(17) Revenue recognition
Revenue is recognized for the contract with customer under IFRS 15 excluding interest and dividends income by
applying the following five steps
Step 1: Identifying contract with customer
Step 2: Identifying performance obligation in contract
Step 3: Determining the transaction price
Step 4: Allocating the transaction price to performance obligation in contract
Step 5: Recognizing revenue when (or as) performance obligation is met
The Group sells soft drinks such as carbonated beverages, coffee beverages, tea-based beverages and mineral water,
and alcohol. For sales of these products, revenue is recognized primarily at the time of delivery as the customer has
obtained control over the products and believes that the performance obligation is satisfied.
In addition, revenue is measured at consideration promised in the contract with customer, less discounts, rebates,
returns and other items. In addition, the Company has a point system for its customers, whereby points awarded for thepurchase of products can be used for future purchases of the Company's products. The Company identifies points as aperformance obligation and allocates the transaction price based on the earned sales price, taking into account the
expected use and execution of the points, and recognizes revenue when the points are used. The transaction priceallocated to the point performance obligation is recorded as "Other current liabilities" in the consolidated statement offinancial position.
(18) Stock-based compensation
We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust for its directors (excluding directors
who are members of the Audit and Supervisory Committee and outside directors), executive officers, and employees forthe purpose of sharing the benefits and risks of stock price fluctuations with shareholders and to increase their
willingness to contribute to medium- to long-term improvement in corporate value and stock price appreciation. The
Company's shares held by the trust are recognized as treasury shares. The remuneration calculated under the plans is
recognized as an expense and the corresponding amount is recognized as an increase in equity.

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

4. Critical accounting judgments, estimates and assumptions
In preparing the consolidated financial statements in accordance with IFRS, management is required to makejudgments, 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 environment. Accounting estimates are based on
the most appropriate information at the time the consolidated financial statements are filed, but if any estimates in further
into the future changes, the impact of the revises is recognized in the consolidated statements of profit or loss andconsolidated statements of comprehensive income subsequent to the reporting period in which they are revised.
Information regarding assumptions and estimates that have a significant impact on the amounts recognized in the
consolidated financial statements is as follows:(a) Useful lives of property, plant and equipment and intangible assets
Property, plant, and equipment are depreciated over the estimated useful lives, which is the period over which the
future economic benefits of the asset are expected. If property and equipment is obsolescent in the future or reused forother purposes, depreciation expense may increase, and the estimated useful life may be shorter. Details of useful life
are provided in Notes 3(7) “Property, plant and equipment.”
The right-of-use asset is estimated for the lease term with a non-cancellable period plus a reasonably certain periodof time to exercise the option to extend or not to cancel the lease. Details of the useful life are described in note 3(9)“Leases (as a lessee)”.
Intangible assets are evaluated whether the useful life is definite or indefinite, based on the analyzing of all relevant
factors and predictability of the period over which such intangible asset is expected to result in cash inflows. Intangible
assets with definite useful life are amortized using the estimated useful life, which is the period over which the future
economic benefits are expected. Amortization expense is subject to risks that may increase as a result of changes in theestimated useful life caused by external factors, such as changes in business conditions. Details of useful life areprovidedin Notes 3(8) “Intangible assets.”(b) Impairment test of non-financial assets, including property, plant and equipment, goodwill, and intangible asset
In performing impairment tests, the recoverable amount of a cash-generating unit is calculated based on its value in
use. Value in use is mainly estimated by discounting the estimated cash flows to its present value. Key assumptions inestimating recoverable amounts include future cash flows, discount rates, and long-term average growth rates. Midterm plans, which are the basis for future cash flows, are based on sales and cost plans for the relevant period. While
such assumptions are based on management's best estimates and judgments, these assumptions may also be affected bychanges in economic conditions that have a significant impact on future consolidated financial statements. Details of
cash-generating unit's and recoverable amount's decisions are provided in Notes 3 (10) “Impairments of property, plantand equipment, intangible asset, goodwill and lease asset” and Notes 11 “Impairment of non-financial assets.”(c) Provision
In the consolidated statements of financial position, the Group recognizes mainly provision on asset retirement
obligations and environmental measures provision. Provision is measured based on the best estimate of theexpenditures required to settle the obligation. Expenditures required to settle obligations are calculated by considering
all factors affecting future results but may be affected by unforeseeable events and changes in the environment
assumed.
The accounting policies and reported amounts of provision are described in Notes 3(12) “Provision and contingent
liabilities” and Notes 14 “Provisions,” respectively.
(d) Recoverability of deferred tax assets
At recognition of deferred tax assets, the Group estimates the timing and amount of future taxable income based on
the Group’s mid-term plans. Estimates of future taxable income are based on mid-term plans. The main assumptions are
the sales plan and cost plan for the period. In assessing the recoverability of deferred tax assets, the Company considers
the expected reversal of deferred tax liabilities, projected future taxable income, and tax planning including assets sales
etc. While such assumptions are based on management's best estimates and judgments, these assumptions may also beaffected by changes in economic conditions that have a significant impact on future consolidated financial statements86This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In
the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Further information regarding the recoverability of deferred tax assets is provided in Notes 3(14), “Income taxes” andNotes 27, “Income taxes.”(e) Measurement of defined benefit plans obligation
The Groups adopts a variety of retirement benefit plans, including defined benefit plans. The present value andservice cost of defined benefit obligations for all plans are based on actuarial projections. Actuarial projections require
estimates and judgments related to variable factors such as discount rates, rates of salary increase and inflation. The
Group is advised by external actuaries as to the adequacy of actuarial projections, including these variable factors.
While actuarial projections are determined based on management's best estimates and judgments, they may be affectedby changes in uncertain future economic conditions and the establishment and revise of related laws and regulations
that could have a material effect on future consolidated financial statements.
Further information on the actuarial projections for the measurement of defined benefit obligations is provided in
Notes 17 “Post-employment benefits”.
(f) Measurement of financial instrument without quoted prices in active market
The Group applies valuation techniques that use unobservable inputs in the market to evaluate the fair value offinancial instruments without quoted prices in an active market. Unobservable inputs may be impacted by uncertain
future changes in economic conditions that could have a material impact on future consolidated financial statements.
Details related to the assessment of financial assets are provided in Notes 30, “Financial instruments (7) Fair value offinancial instruments.”

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

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

Principal Products and Services
Purchase, manufacture, sale, bottling, packaging, distribution, and marketing of

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

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

6. Cash and cash equivalents
The breakdown of cash and cash equivalents for the previous fiscal year and the current fiscal year are as follows:
Previous fiscal year
(As of December 31, 2022)(Millions of yen)
Current fiscal year
(As of December 31, 2023)

84,074

113,660

84,074

113,660

Cash and demand deposits
Total

The balance of “cash and cash equivalents” in the consolidated statements of financial position for the previous fiscal year and thecurrent fiscal year coincides with the balance of “Cash and cash equivalents” in the consolidated statements of cash flows.
7. Trade and other receivables
Trade and other receivables for the previous fiscal year and the current fiscal year are as follows:
Previous fiscal year
(As of December 31, 2022)(Millions of yen)
Current fiscal year
(As of December 31, 2023)

Accounts and Notes receivable

77,10579,994

Accounts receivable - other
Allowance for credit losses

26,382(141)

40,225(151)

103,346

120,069

Total

8. Inventories
The breakdown of inventories for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Raw materialWork in progress

3,977
18

5,104
3

Merchandise and finished products
Supplies

61,187
5,869

59,254
7,291

71,051

71,651Total

The amount of inventory recorded in “Cost of goods sold” for the previous fiscal year and the current fiscal year was
455,662 million yen and 484,353 million yen, respectively. Of this amount, the amount of write-down of inventory assets
in the previous fiscal year and the current fiscal year was 234 million yen and 250 million yen, respectively.

89

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

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

Right-ofuse assets

9,436

801,916

41,543－

4,527

31,883

6,869(7,740)(3,174)－(18,493)(10,503)

5,146

－

－

(8,071)

－

－

331

689

(290)

(341)

(469)

(80)

2,184

179,771

243,478245,700

140,8545,423

815,226

40,093Acquisition

1,993

6,083

13,75256

788

22,6718,529

Disposal and saleTransfer fromconstruction inprogress(1,084)(5,132)(10,798)(6,212)(9)(23,234)(2,974)

1,364

3,418

－

－

(4,782)

－

－

4

(35)

6

－

(490)

(514)

0

182,049

247,811248,660

134,699930

814,149

45,648

Buildings
andstructures

MachineryandvehiclesVending
machineLand

Constructionin progress

176,989

233,940

237,182

144,370

Acquisition

3,777

7,030

16,548

Disposal and sale

(4,251)(3,328)2,925

Balance on January 1, 2022

Transfer fromconstruction inprogress
Other
Balance on December 31,
2022

Other
Balance on December 31,
2023

Accumulated depreciation and impairment losses(Millions of yen)
Property, Plant and Equipment

Balance on January 1, 2022
Depreciation

Total

Right-ofuse assets－(366,922)(16,398)－－(36,822)(5,502)

(20)

－

(20)

－

Buildings
andstructures

MachineryandvehiclesVending
machineLand(87,021)(128,504)(149,490)(1,907)(7,077)(15,390)(14,355)

(1)

－

－

Constructionin progress

Impairment losses
Disposal and sale

3,718

3,151

7,098

89

－

14,057

8,335

Other

(245)

(597)

285

48

－

(509)

(4,686)(90,626)(141,341)(156,462)(1,789)－(390,217)(18,252)(6,920)(15,145)(15,693)－－(37,758)(5,196)

Impairment losses

(91)

－

－

(197)

－

(288)

－

Disposal and sale

886

4,765

10,07479－

15,804

1,679

Other

(27)

6

－

20

－

(1)

15

(96,778)(151,715)(162,081)(1,887)－(412,462)(21,754)

Balance on December 31,
2022
Depreciation

Balance on December 31,2023Note) Other are transfers of subjects, etc.
90This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In
the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

Carrying amount(Millions of yen)
Property, Plant and Equipment

December 31, 2022
December 31, 2023

Buildings
andstructures

MachineryandvehiclesVending
machineLand

89,14685,271102,136
96,09689,23986,579139,065
132,811

Total

Right-ofuse assets

425,009401,687

21,841
23,894

Constructionin progress
5,423
930

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

91

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

10. Goodwill and intangible asset
Changes in the cost, accumulated amortization and accumulated impairment losses and carrying amounts of goodwill
and intangible asset for the previous fiscal year and the current fiscal year are as follows:
Acquisition cost
(Millions of yen)

Goodwill

Balance on January 1, 2022
Acquisition
Disposal and sale
Other
Balance on December 31, 2022
Acquisition
Disposal and sale
Other
Balance on December 31, 2023

Intangible
assets withindefinite
useful lives
Contract
relatedintangible
asset

Intangible assets with finite useful
lives
Intangible
asset totals
SoftwareOher

61,859－52,050－24,905
3,788

368
－

77,323
3,788

－
－

－
－

(1,317)
(48)

(1)
0

(1,318)(48)

61,859－52,050－27,327
2,467

367
－

79,745
2,467

－
－

－
－

(2,454)(187)－－(2,454)(187)

61,85952,05027,154367

79,57192

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

Accumulated amortization and impairment losses(Millions of yen)

Goodwill

Intangible
assets withindefinite
useful lives
Contract
relatedintangible
asset

Intangible assets with finite useful
lives
Intangible
asset totals
SoftwareOther－(10,916)(188)(11,104)

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

Disposal and sale
Other

－
－

－
－

700
(15)

1
(1)

701
(16)

－

(13,624)(256)(13,880)

Depreciation
Impairment losses(61,859)－－－－(3,440)－(65)－(3,505)－

Disposal and sale
Other

－
－

－
－

1,633
(1)

－
1

1,633
－

(61,859)－(15,431)(320)(15,752)

Goodwill

Intangible
assets withindefinite
useful lives
Contract
relatedintangible
asset

Balance on January 1, 2022

Balance on December 31, 2022

Balance on December 31, 2023
Carrying amount(Millions of yen)
Intangible assets with finite useful
lives
Intangible
asset totals
Software

Other

December 31, 2022－

52,05013,703112

65,865

December 31, 2023－

52,05011,72247

63,819Software at the end of the previous fiscal year and the end of the current fiscal year includes internally generated
intangible assets of 431 million yen and 345 million yen, respectively.
Amortization of intangible assets is included in “Cost of goods sold” and “Selling, general and administrative
expenses” in the consolidated statements of profit or loss.
Individually significant goodwill was mainly due to the business integration with Coca-Cola East Japan Co., Ltd., andthe resulting consolidation of associates as consolidated subsidiaries in the 2017 but an impairment loss was recognized inprevious fiscal year.
Details of the contract related intangible assets are included in Note 3 (8) “Intangible assets”.

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

11. Impairment of non-financial assets(1) Impairment losses
The impairment losses recognized for the previous fiscal year and the current fiscal year by the Group were as
follows:
The impairment losses are recorded in “Other expense” in the consolidated statements of profit or loss.
(Millions of yen)
For the year ended
December 31, 2022
Property, plant, and equipment
Buildings and structures
Land
Total

For the year ended
December 31, 2023
1

91

20

197

20

288

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

94

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

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

Intangible assets withindefinite useful lives

Reportable segments

Cash-generating
unit or cashgenerating unit
group

Beverage business

Beverage(Contract related
intangible asset)

Total

Previous fiscal year
(As of December
31, 2022)

Current fiscal year
(As of December
31, 2023)

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

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

Growth rate

Current fiscal year
(As of December 31, 2023)
Discount rate

Growth rate

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

95

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

(3) Sensitivity analysis
The following table shows the values where each of the key assumptions has been independently replaced to match therecoverable amount to the book value.
For Beverage, the recoverable amount exceeded the book value of 149,269 million yet in the current fiscal year.
However, if the discount rate is greater than 7.4 % or the growth rate is less than (1.4) %, an impairment loss may
occur.

Cash-generating unit or cashgenerating unit groups

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

Beverage

Current fiscal year
(As of December 31, 2023)

Growth rate

7.2%

Discount rate(1.1) %

Growth rate

7.4%(1.4)%

12. Other current assets and other non-current assets
Other current assets and other non-current assets for the previous fiscal year and the current fiscal year are as follows(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

6,835

7,070
－

Current
Prepaid expense
Income tax receivable
Consumption tax receivable

1,940
3,989

Other

947

345

271

Total

13,108

8,288

Non-current
Long-term prepaid expenses

4,622

4,196

487

50

5,110

4,245

Other
Total

96

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

13. Trade and other payables
Trade and other payables for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Trade payables

37,541

41,523

Accounts payable - otherAccrued expenses

66,7993,915

70,335
4,754

108,254

116,612Total
14. Provisions
Changes in provision for the current fiscal year were as follows:(Millions of yen)

Balance on December 31, 2022
Provision
Decrease during the fiscal year (intended
use)
Reversal
Increase due to passage of time and change
in discount rate
Other
Balance on December 31, 2023
Current
Non-current
Total

Asset retirement
obligations

Environmental
measuresprovision

1,743
43

17
2

1,761
45

(3)

(2)

(5)

(19)

－

(19)

4

－

4

(5)

－

(5)

1,763

17

1,781

－

－

－

1,763

17

1,781

1,763

17

1,781

Total

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

97

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

15. Bonds and loans payable
Bonds and loans payable for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31,
2022)

Current fiscal year
(As of December
31, 2023)

Averageinterest
rate
(%)

－

39,979

0.10

-

1,000

1,000

0.15

-

－

－

1,000

40,979149,701

109,802

0.23

2026 to 2029

6,000

5,000

0.15

2025 to 2026

Maturity

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

155,701

114,802

Total

156,701

155,781

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

Name of bondThe

1st unsecured

Companybond

TheCompany

2nd unsecured
bond

The
Company

3rd unsecuredbondDate of
issue

Issue
amountPrevious fiscal year
(As of December 31,
2022)

Current fiscal year
(As of December
31, 2023)

Interest rate
(%)

Colla
teral

The due datefor
redemption

Sep 19,2019

40,00039,95039,979(39,979)

0.10

None

Sep 19, 2024

Sep 19,2019

60,00059,88859,9180.20

None

Sep 18, 2026

50,00049,86349,884

0.27

None

Sep 19, 2029

149,701

149,781

Sep 19,
2019

Total

(Note) 1. The amount in parentheses is the redemption amount due within one year.
2. All interest rates are fixed rates.

98

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

16．Leases
The Group mainly rents offices and other facilities in the beverage business, and leases buildings and structures related toit. The contract term for the lease is mainly 15 years. There are no special restrictions on lease contracts (such as restrictions
on dividends, additional borrowings, and additional leases).
The breakdown of profits and losses related to leases for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Depreciation of Right-of-use assets
Buildings and structures

5,502

5,196

5,502

5,196

Interest expense on lease liabilities

238

245

Total cash outflows related to leases(5,974)(5,418)Total

The breakdown of the books of Right-of-use assets for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Right-of-use assets
Buildings and structures
Land
Total

21,21923,324622

570

21,841

23,894The increase in Right-of-use assets for the end of the previous fiscal year and the end of the current fiscal year was 6,869
million yen and 8,529 million yen

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

17. Retirement benefits
Regarding retirement benefit plans for employees of the Group, some subsidiaries are to adopt defined contribution
pension plans and defined benefit pension plans, which calculate the number of contributions and benefits based on theirposition, years of services and other factors. However, as of April 1, 2019, the beverage business was unified into a
defined contribution pension plan and a lump-sum retirement plan, and the conventional defined benefit plan was frozen.
The frozen defined benefit pension liability is calculated based on the retirement benefits determined at the time of thefreeze and is recognized as a defined benefit obligation until the employee is paid a pension or lump-sum payment upon
future retirement.
(1) Defined benefit plans(a) Increase (decrease) in present value of a defined benefit obligation
Changes in present value of a defined benefit obligation for the previous fiscal year and the current fiscal year are
as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

118,007
3,456

103,370
2,890

1,067

2,021

Actuarial gains arising from changes indemographic assumptions－－

Actuarial gains arising from changes infinancial assumptions(11,779)

378

Experience adjustment
Benefit payments(132)(7,250)16(7,490)

Balance at the end of the year

103,370

101,185

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

The weighted-average lives of defined benefit plans obligations at the end of the previous fiscal year and the endof the current fiscal year were 10.0 years and 10.0 years, respectively.
(b) Changes in fair value of plan asset
Changes in the fair value of plan asset for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

Balance at the beginning of the year
Interest revenue

106,183932

92,198
1,746

Remeasurement:
Return on plan asset(8,770)Contributions by employer
Benefit payments

92(6,239)5,376－(6,284)

Balance at the end of the year

92,19893,036100

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

(c) Change in adjustment due to asset ceiling
Changes in adjustments due to asset ceiling for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

5,781

6,644

811

4,933

52

130

6,644

11,706

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

Adjustments due to asset ceiling are adjustments that made due to a partial limitation on the amount recorded as asset, although theamounts which the plan asset exceeds present value of a defined benefit obligation under “Employee Benefits” (IAS 19) arerecognized as “Defined benefit asset”.
(d) Adjustments of defined benefit plans Obligations and Plan asset
The relationships between defined benefit plans obligations and plan asset and net defined benefit liability andasset recorded in the consolidated statements of financial position for the previous fiscal year and the current fiscal
year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Defined benefit plans obligations (funded)

85,554

81,329Plan assets

92,19893,036

Net deficit of funded defined benefit plans
Adjustments due to asset ceiling(6,644)
6,644(11,706)
11,706

Subtotal
Defined benefit plans obligations (unfunded)－－

17,817

19,856

17,817

19,856

17,817－

19,856－

17,817

19,856Total
Net defined benefit liabilities
Net defined benefit assets
Net defined benefit liabilities recognized in the
consolidated statements of financial position

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

(e) Major items of plan asset
The plan assets of the Group's retirement benefit plans include marketable equity securities and receivables and are
exposed to share price and interest rate and foreign exchange risks. The investment of plan asset management aims tomaximize the value of the plan assets over the medium-to-long term in order to ensure that defined benefit plans
beneficiaries receive future benefits within acceptable risks. The plan asset diversifies its investments into a variety
of domestic and international equities and bonds based on asset allocation targets to reduce risks. With regard to asset
allocation, the Group has set medium-to-long term allocation targets based on forecasts of returns, long-term risks,and past performance. The asset allocation targets are reviewed as appropriate in the event of a significant change inthe operational environment of the plan asset.
The major categories of plan asset for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)
With quoted
prices inactivemarketWithout
quotedprice inactivemarketCurrent fiscal year
(As of December 31, 2023)

Total

With quoted
prices inactivemarketWithout
quoted inactivemarket

Total

Equity instrument
Domestic
securities

－

6,387

6,387

－

6,612

6,612

Foreignsecurities－

15,111

15,111－

16,335

16,335

－

4,642

4,642

－

3,512

3,512

－

17,893

17,893－

17,915

17,915General account－

27,79827,798－27,98927,989Alternative
Other

－

20,135232－

020,135232

127

20,419127

20,419
253

Total

0

92,19892,198127

92,90993,036

Debt instrument
Domesticbonds
Foreign bonds

The majority of plan assets are managed through commingled funds. Commingled funds are pool of assets that aregathered to benefit from professional management and economies of scale. Investors have interest in the funds andmeasure the fair value of its interests based on the net asset value of the investments provided by the fundadministrators. The plan assets managed by the funds are invested in marketable securities, such as domestic or
foreign shares and debts in active markets. Alternatives include investments in funds of funds, etc.
There is no estimated amount of contribution to the plan assets in the next consolidated fiscal year because theplan assets exceed the minimum required reserve amount.
(f) Significant actuarial assumptions
Significant actuarial assumptions for the previous fiscal year and the current fiscal year are as follows:
Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

1.96%
2.00%

1.92%
2.00%

Discount rate
Rate of salary increase

102

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

(g) Sensitivity analysis
The following table presents the monetary impact of changes in significant actuarial assumptions on defined
benefit plans obligations for the previous fiscal year and the current fiscal year.
(Millions of yen)Previous fiscal year
(As of December 31, 2022)
Increasing
Discount rate
0.25% decrease

Reduction

2,606－

0.25% increase
Rate of salary increase－

0.5% decrease
0.5% increase

Current fiscal year
(As of December 31, 2023)

192

Increasing－

Reduction
－

2,478
－

2,502

2,381

－

180
－

200
－

214

The sensitivity analysis in the table above assumes that all actuarial assumptions other than the assumptions underwhich the analysis was performed remain constant. This sensitivity analysis represents the changes in the defined
benefit obligation as of the end of the previous fiscal year and the end of the current fiscal year and is the result ofchanges in actuarial assumptions that we believe are reasonable. This analysis is based on provisional calculations
and actual results may differ from the analysis.
(2) Defined contribution plans
Expenses for the defined contribution plans of the Group for the previous fiscal year and current fiscal years were
10,112 million yen and 10,004 million yen, respectively.
18. Other current liabilities and other non-current liabilities
Other current liabilities and other non-current liabilities for the previous fiscal year and the current fiscal year are as
follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Deposit received
Accrued paid leave

4,345
4,996

4,241
5,073

Consumption tax payable
Accrued bonuses

1,458
7,626

1,395
14,876

Current

Other

1,914

3,712

Total

20,33929,297

Non-current
Long-term deposits received

976

1,054

1,760
411

1,893
862

3,147

3,809

Other long-term employee benefits obligations
Other
Total

103

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

19. Equity(1) Capital share
Changes in the number of shares authorized and outstanding for the previous fiscal year and the current fiscal year
are as follows:(Thousands of shares)
Previous fiscal year
(From January 1, 2022
to December 31, 2022
Number of shares authorized
Ordinary share with no-par value

Current fiscal year
(From January 1, 2023
to December 31, 2023

500,000

500,000

Increase during the fiscal year
Decrease during the fiscal year

206,269－－

206,269－－

Outstanding at the end of the fiscal year

206,269

206,269

Number of issued shares (ordinary share)
Outstanding at the beginning of the fiscal year

(2) Capital surplus
Capital surplus represents surplus that is derived from capital transactions and includes capital legal reserve which is
not designated as stated capital. Under the Companies Act of Japan (“the Companies Act”), at least one-half of the issue
price of shares is required to be accounted for as capital share, and the remainder of the paid-in capital is accounted for
as capital surplus. The Companies Act also permits companies to transfer a portion of capital surplus to the capital shareby resolution of the shareholders’ meeting.
(3) Retained earnings
Retained earnings consist of legal reserve and other retained earnings. The Companies Act stipulates that one-tenthof the amount of surplus reduced by the dividends of surplus shall be set aside as capital legal reserve or earned legal
reserve until the sum of capital legal reserve and earned legal reserve equals one-fourth of the amount of stated capital.
The earned legal reserve may be used to reduce or eliminate a deficit by resolution of the shareholders meeting.
(4) Treasury share
Changes in treasury share for the previous fiscal year and the current fiscal year are as follows:(Thousands of shares)
Previous fiscal year
(From January 1, 2022
to December 31, 2022

Current fiscal year
(From January 1, 2023
to December 31, 2023

Number of treasury share
Outstanding at the beginning of the fiscal year
Increase during the fiscal year

26,925
4

Decrease during the fiscal year
Outstanding at the end of the fiscal year
(Note)

1．
2．
3．
4．

26,928
3

(0)

(98)

26,92826,834The beginning balance of the previous consolidated fiscal year and the current consolidated fiscal year, and theending balance of the previous consolidated fiscal year does not include Executive reward BIP Trust and Stockgranting ESOP Trust.
The ending balance of the current consolidated fiscal year include 1,261 thousand shares of Executive reward BIP
Trust, and 1,789 thousand shares of Stock-granting ESOP Trust.
The increase in the previous consolidated fiscal year and the current consolidated fiscal year are due to the acquisitionof shares less than one unit.
The decrease in the previous consolidated fiscal year is due to the additional purchase of shares less than one unit,
and the decrease in the current consolidated fiscal year is mainly due to disposal of treasury shares.

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

20. Stock-based compensation
The Group has introduced a performance-linked share-based incentive compensation system for the Company’s
directors (excluding members of the Audit and Supervisory Committee and outside directors) and the executive officers of
the Company and its subsidiaries (“directors”) since the current fiscal year.
1. Performance-linked share-based incentive compensation system (“LTI”)(1) Outline of the LTI
The Company's Common shares (“the Company's share”) and cash will be paid under the performance-linked
share compensation plans consisting of the Performance Share Unit (“PSU”) plan and the Restricted Share Unit(“RSU”) plan for the evaluation periods of January 1, 2021 to December 31, 2023, January 1, 2022 to December 31,
2024, and January 1, 2023 to December 31, 2025. The purpose of LTI is to share the benefits and risks of shareprice fluctuations with shareholders and to motivate the Target Company's employees more than ever to contributeto the enhancement of the Company's corporate value over the medium to long term and to the increase in the
Company's share price.
(2) Vesting conditions(PSU)
・The number of shares to be issued shall be determined within the range of 0% to 150% of the basic PSU amount
depending on the achievement of performance targets (only considering companywide performance) over thethree years after the share units have been granted (half of the shares to be issued shall be paid in cash for the
purpose of allocating funds for the payment of tax obligations).
・To provide motivation to enhance corporate value over the mid to long term, consolidated ROE andconsolidated sales growth rate have been adopted as measures for evaluating performance, based on the
Company’s policy regarding the determination of compensation for Executive Directors and Executive Officers,
etc.
(RSU)
・Provided for the purpose of aligning interests with shareholders, creating incentives to increase corporate value,and strengthening retention of talented people.
・A predetermined number of shares are issued at retirement (half of the shares to be issued shall be paid in cash
for the purpose of allocating funds for the payment of tax obligations).
(3) Fair value and fair value measurement methods
The fair value on the grant date of this plan for the previous consolidated fiscal year and the current consolidated
fiscal year were as follows:(yen)Previous fiscal year
Current fiscal year
(As of December 31, 2022)(As of December 31, 2023)
PSU
RSU(Note) 1(Note) 2

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

(Note) 1(Note) 2

1,237
1,237
1,278
1,237

(Note) 1. Fair value for RSU covering employees.
2. Fair value related to special RSU
2. Share compensation Expenses
For the previous and current fiscal year, expenses of share-based payment included in “Selling, general andadministrative expenses” in the consolidated statements of profit or loss are 482 million yen and 572 million yen.

106

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

21. Dividends
Dividends payments for the previous fiscal year and the current fiscal year are as follows:
For the year ended December 31, 2022
Resolution
March 24, 2022
Ordinary General
Meeting of Shareholders
August 10, 2022
Board of Directors

Type of shares

Total amount ofdividends paid
(Millions ofyen)

Dividends per
share
(Yen)

Dividend record
date

Effective dateOrdinary share

4,484

25

December 31,
2021

March 25, 2022

Ordinary share

4,484

25

June 30, 2022

September 1,
2022

Type of shares

Total amount ofdividends paid
(Millions ofyen)

Dividends per
share
(Yen)

Dividend record
date

Effective dateOrdinary share

4,484

25

Ordinary share

4,562

25

For the year ended December 31, 2023
Resolution
March 28, 2023
Ordinary General
Meeting of
Shareholders
August 9, 2023
Board of Directors

December 31,
2022

June 30, 2023

March 29, 2023

September 1,
2023

Note: The total amount on August 9, 2023, Board of Directors dividends includes 79 million yen for the Company's shares held by
the Executive reward BIP Trust and Stock-granting ESOP Trust.
Among the dividends whose record date belongs to the current fiscal year, those whose effective date falls in thefollowing fiscal year are as follows:
Total amount
Dividends perType ofof dividends
Dividends
Dividend record
Resolution
share
Effective dateshares(Millions ofresources
date
(Yen)
yen)
March 26,
2024
Ordinary
GeneralMeeting ofOrdinary
share

4,562

Retainedearnings

25

December 31,
2023

March 28, 2024

Shareholders
Note: The total amount of dividends includes 76 million yen for the Company's shares held by the Executive reward BIP Trust andStock-granting ESOP Trust.

107

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

22. Revenue Decomposition(1) Revenue
The Group's organizational structure is based on Beverage segments. These two businesses are components for which
discrete financial information is available, and whose operating results are regularly reviewed by the entity’s chief
operating decision maker to make decisions about resources to be allocated to the segment and assess its performance.
Therefore, the revenue in these two businesses is presented as “Revenue” in the consolidated financial statement of profit
or loss. In the Beverage business, the Group purchases, manufactures, and sells carbonated beverages such as Coca-Cola,coffee beverages, black tea beverages, mineral water, alcohol, and other beverages in Japan.
Revenue for sales of these products is recognized primarily at the time of delivery as customer has obtained control
over the products and the performance obligation is satisfied.
Payments relating to such performance obligation are received generally within two months of delivery. The contracts
with customers do not include any material financial elements.
(Millions of yen)
Current fiscal year
(From January 1, 2023
to December 31, 2023)

Previous fiscal year
(From January 1, 2022
to December 31, 2022)
Revenue
Other revenue arising from customers and contracts
Beverage

807,402868,56029

20

807,430

868,581

Other
Total

(2) Contract balances
The Group’s contract balance for the previous fiscal year and the current fiscal year are as follows.
(Millions of yen)Previous fiscal year
(December 31, 2022)

Current fiscal year
(December 31, 2023)

Receivables arising fromcontracts with customers
Accounts and Notes
receivable
Total

77,10579,994

77,10579,994Contract liabilities(Other current liabilities)

1,147

1,135

Note

Contract liabilities are due to the point system. Points expected to be exercised by customers in the future are recognized
as a performance obligation and recorded as a contract liability and are recognized as revenue when the points are used.
The amount of revenue recognized for current fiscal year, which was included in the contract liability balance at the
beginning of the period was 1,147 million yen. The amount of revenue recognized from performance obligations
satisfied in prior periods was not material for current fiscal year.

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

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

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

23. Selling, general, and administrative expenses
Selling, general and administrative expenses comprise for the previous fiscal year and the current fiscal year thefollowing(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

Depreciation
Amortization

27,752
3,391

28,766
3,409

Sales commissions and promotional expenses
Employee benefits expenses

108,910
103,977

110,673
109,344

Shipping and commissions
Maintenance fee

76,035
15,33177,60816,411

Other

29,89834,810365,295

381,022Total

24. Employee benefits expenses
Employee benefits expenses for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

Cost of goods
soldSelling, generalandadministrative
expenses

Cost of goods
soldSelling, generalandadministrative
expenses

Salaries and wages
Welfare and legal welfare expenses

9,719
1,120

65,316
8,175

9,805
1,252

65,785
8,553

Bonus
Retirement benefit costs

2,240
1,576

18,134
12,351

3,018
1,576

23,096
11,909Total

14,656

103,977

15,652

109,344

109

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

25. Other income and other expense
Other income and other expense for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

Other income
Gains on sales of property, plant, and equipment (Note
1)

4,587

4,425

Rent income
Government subsidies (Note 2)

276
3,729

203
－

720

528

Total

9,312

5,156

Impairment losses
Losses on sales and disposals of property, plant, and

20

288

2,564

1,825

1,298

2,491

1,104
2,168

52
－

Other

Other expense

equipment
Transformation-related expenses (Note 3)
Special retirement allowance (Note 4)
Temporary paid leave expenses (Note 5)
Other
Total
(Note)

1.
2.
3.

4.
5.

179

246

7,332

4,902

Gains on sales of property, plant, and equipment represent gains on sales of land and other assets forprevious fiscal year and current fiscal year.
Government subsidies are grants to cover employee’s temporary leave cost due to the spread of COVID19 for previous fiscal year.
Transformation related expenses are consulting expenses related to measures aimed at building an efficient
new system with the aim of creating more value and further improving productivity for the sustainablegrowth of the Group for previous fiscal year and current fiscal year.
Special retirement allowances are allowances for special retirements and outplacement support expenses
incurred in the implementation of early retirement for previous fiscal year and current fiscal year.
Temporary paid leave expenses are the allowance associated with employee’s temporary leave due to the
spread of COVID-19 for previous fiscal year. The expenses are reclassified as 92 million yen from cost of
sales and 2,076 million yen from selling and general administrative expenses to other expenses,
respectively.

110

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

26. Financial income and financial expense
Financial income and finance expense for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

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

0

0

237

178

Foreign exchange profits
Other

－
27

322
35

Total

264

535

Financial liabilities measured at amortized cost.
Foreign exchange losses

750
468

660
－

Financial assets measured at fair value through othercomprehensive income

Finance expense
Interest expenses

Other
Total

111

25

93

1,242

753

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

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

Consolidated statement of profit or loss

Previous fiscal year
(As of December 31,
2022)

Current fiscal year
(As of December 31,
2023)

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

Current fiscal year
(From January 1,
2023
to December 31,
2023

4,709

6,795

(537)

2,086

Lease

6,418

7,308

(744)

890

Financial assets

1,126

1,314

(288)

40

Employeebenefits

12,001

15,431

2,814

3,447

Inventories
Carryforwards

1,530

1,186

(654)

(344)

of unused tax
losses19,422

17,004

5,529(2,418)

Other

2,324

2,546

(1,318)222

47,52951,584

4,802

3,924

(33,788)(32,939)

531

849

Lease
Financial assets(6,217)(2,612)(7,063)(1,751)

766
541

(846)
154

Other

(1,487)(1,365)443

122(44,105)(43,119)

2,280

279

－

－

7,082

4,203

3,424

8,465

Deferred tax
assetsProperty, plantand equipment
and intangible
asset

Subtotal
Deferred tax
liabilities
Property, plantand equipment
and intangible
asset

Subtotal
Total deferred tax
expenseTotal deferredtaxes

The Group evaluates the recoverability of deferred tax assets by considering the possibility that some or all of deductible temporary
differences or carryforwards of unused tax losses will be available to future taxable income. Based on historical trends in taxable
income and projected future taxable income for the periods in which deferred tax assets are recognized, the Group believes that it ismore likely than not that the tax benefits of these deferred tax assets will be realized at the end of the previous and current fiscal years.
In Company incurred special retirement previous and current fiscal years, then benefits and the effects of the new coronavirus
infection. The Company has incurred a loss carried forward for tax purposes. The loss carried forward for tax purposes mainly resulted
from a consolidated subsidiary, Coca-Cola Bottlers Japan Inc., which is a consolidated subsidiary of the Company. Deferred tax assetsof 16,874 million yen were recognized for the tax loss carryforwards. Note 4 “Critical Accounting Judgments, Estimates, and as
described in Assumptions and Liabilities”, in recognizing deferred tax assets, the Group has recognized deferred tax assets based on
112This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In
the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

the medium-term plan. The timing and amount of the accrual are estimated. Estimates of future taxable income are based on themedium-term plan, and the main assumptions used are as follows the sales plan and cost plan for the relevant period are used as thebasis for the calculation. In assessing the recoverability of deferred tax assets, the Company considers the planned reversal of deferred
tax liabilities, future taxable income, and tax planning including asset sales.
We believe that changes in the economic environment surrounding the Group, market conditions and other factors will increase theuncertainty of our estimates of future taxable income.
Details of changes in deferred tax assets and deferred tax liabilities (net) in the previous fiscal year and the current fiscal year are as
follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022

Current fiscal year
(From January 1, 2023
to December 31, 2023

Balance at the beginning of the fiscal year (liabilities)
Amounts recognized in deferred tax expense(3,419)
7,082

3,424
4,203

Amounts recognized in other comprehensive income

(239)

838

Balance at the end of the year (liabilities)

3,424

8,465

(2) Unrecognized deferred tax assets and deferred tax liabilities
As a result of our assessment of the recoverability of the deferred tax assets described above, the Group does notrecognize the deferred tax assets for a portion of deductible temporary differences. The amounts of deductible
temporary difference which no deferred tax assets has been recognized as of the end of the previous fiscal year and theend of the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

14,99715,080

Deductible temporary differences

Taxable temporary differences regarding investments in subsidiaries and associates for which deferred tax liabilities
was not recognized at the end of the previous fiscal year and at the end of the current fiscal year is as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

22,141

31,191

Investments in subsidiaries and associates

113

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

(3) Income tax expenses
Income tax expenses for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

Current tax expenses
Deferred tax expenses (profit)

2,650(7,082)

5,524(4,203)

Total(4,432)

1,321

The above deferred tax expenses were primarily due to the origination and reversal of temporary differences.
(4) Reconciliation of effective tax rate
A reconciliation of the statutory tax rate to the applicable tax rate in the consolidated statements of profit or loss forthe previous fiscal year and the current fiscal year are as follows:
Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

31.46%(0.49) %31.46%
7.02%

1.45%

0.84%

1.59%

5.99%

1.46%

(4.33)%

35.48%

40.98%

Statutory tax rate
Items which are not taxable or deductible
Changes in unrecognized deferred tax assets
Tax rate difference between the Company andsubsidiaries
Other
Applicable tax rate

114

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

28. Other comprehensive income
The components of other comprehensive income and related tax effects (including non-controlling interest) for theprevious fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

2,329

50

Tax effect

(806)

(17)

Net of tax

1,523

33

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

Share of other comprehensive income in equity method
investees:
Amount arising during the year－－

Tax effect－－

Net of tax

－

－

418
(126)

1,353
(460)

Financial asset measured at fair value through othercomprehensive income:Amount arising during the year
Tax effect
Net of tax

292

893

1,815

926

Amount arising during the year
Tax effect

1,910
(661)

(898)
311

Net of tax

1,250

(587)

Subtotal

1,250

(587)

Total other comprehensive income

3,065

338

Subtotal
Cash flow hedge:115

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

rate reflected historical credit loss rate calculated for each category and forecasts of future economic conditions. The
amount of expected credit losses related to receivables other than trade receivables whose credit risk has not increased
significantly is calculated based on the principal approach by multiplying by provision rate reflected the historical rateof credit loss of the same type of asset by it carrying amount.
The amount of expected credit losses related to asset whose credit risk has been increased significantly and creditimpaired financial asset is calculated as the difference between the present value of estimated future cash flows
discounted by the asset's initial effective interest rate and carrying amount.
(a) Credit risk exposure
The Group's credit risk exposure for the previous fiscal year and the current fiscal year are as follows:
Trade and other receivables
The Group evaluates the credit risk of trade and other receivables based on past due information.
As of December 31, 2022
(Millions of yen)
Financial asset
assessed by
12-month
expected
credit losses
Unexpired

26,322

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

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

Financial assetof applying
simplified
approaches

Total

70,53796,883

34

6,533
―

6,570
34

59

77,070103,487

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a creditimpairment financial asset.
As of December 31, 2023
(Millions of yen)
Financial asset
assessed by
12-month
expected
credit losses
Unexpired

40,126

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

81
－
40,208Financial asset
assessed by anamount equal
to lifetime
expected
credit losses
19－

Financial assetof applying
simplified
approaches

Total

74,403

114,548

1

5,570
19

5,651
20

20

79,992120,220

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a creditimpairment financial asset.
Other financial assets
The Group evaluates the credit risk of other financial assets according to the credit risk rating grades of theother party. The credit risk rating grades of financial asset assessed by an amount equal to lifetime expected credit
losses is relatively low compared to the credit risk rating grades of financial asset's expected credit losses, whichassessed by a 12-month expected credit losses, and the credit risk rating grades of financial assets in the same
category is generally the same. No other financial assets that are past due have significant credit risk exposure.

117

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

None of the other financial assets past due have significant credit risk exposures.
As of December 31, 2022
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses
Other financial asset

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

3,572

Total

894

4,467

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a creditimpairment financial asset.
As of December 31, 2023
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses
Other financial asset

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

3,859

Total

873

4,732

Financial asset assessed by an amount equal to lifetime expected credit losses is primarily a creditimpairment financial asset.
(b) Allowance for credit losses
Changes in allowance for credit losses for the previous fiscal year and the current fiscal year are as follows:
Trade and other receivables
For the year ended December 31, 2022
(Millions of yen)
Financial asset
assessed by
12-month
expected
credit losses

Financial asset
assessed by anamount equal
to lifetime
expected
credit losses

Reduction during the period (purpose use)
Reduction during the period (reversal)

51
32
－

51
23
－

(51)

Balance on December 31, 2022

Balance on January 1, 2022
Provision

Financial assetof applying
simplified
approaches

Total

298
86

401
141

(51)

(190)
(108)

(190)
(211)

32

23

86

141

Financial asset
assessed by
12-month
expected
credit losses

Financial asset
assessed by anamount equal
to lifetime
expected
credit losses

Financial assetof applying
simplified
approaches

Reduction during the period (purpose use)
Reduction during the period (reversal)

32
46
－

23
17
－

86
87
－

141
150
－

(32)

(23)

(86)

(141)

Balance on December 31, 2023

46

17

87

150

For the year ended December 31, 2023
(Millions of yen)

Balance on January 1, 2023
Provision

The Group does not anticipate that any cash flows will be collected in the future from trade receivables
written off in the past and not collect any cash flows.
118

Total

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

Other financial asset
For the year ended December 31, 2022
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

Total

Balance on January 1, 2022

0

816

816

Provision
Decrease during the period (intended use)

0
－

232
(246)

232
(246)

Reduction during the period (reversal)

(0)

(380)

(381)

Balance on December 31, 2022

0

421

421

For the year ended December 31, 2023
(Millions of yen)
Financial asset
assessed by 12-month
expected credit losses

Financial asset
assessed by anamount equal tolifetime expectedcredit losses

Total

Balance on January 1, 2023

0

421

421

Provision
Decrease during the period (intended use)

0
－

104
(39)

104
(39)

Reduction during the period (reversal)

(0)

(104)

(104)

Balance on December 31, 2023

0

382

382

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

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

(3) Liquidity risk
Liquidity risk is the risk that the Group will be unable to pay its obligations on the due date for repayment in thefinancial liabilities when such obligations become due. The Group manages to secure sufficient funds to meet payment
due dates under any circumstances that do not affect the Group's conditions of loss or reputation. Our financial division
manages our liquidity risk by maintaining adequate levels of net income and cash balances within our line of credit
with banks and by comparing and analyzing actual cash flows and forecast cash flows.
The balances of financial liabilities (including derivative liabilities) by maturity for the previous fiscal year and thecurrent fiscal year are as follows:
As of December 31, 2022
(Millions of yen)Non-derivative financial liabilities
Trade and other payables
Bonds and loans payable
Finance lease liabilities
Derivative financial liabilities
Forward exchange contracts

Carrying
amountCash flows
on contract

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

108,254

108,254

108,254－－

156,701
23,269158,535
24,131

1,305
5,322

106,961
10,57750,2708,232More than 5
years

162

162

153

501

501

501

8
－

－

Commodity swap
Total

288,887

291,583

115,535

117,546

58,502

Cash flows
on contract

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

－

As of December 31, 2023
(Millions of yen)
Carrying
amountNon-derivative financial liabilities
Trade and other payables

More than 5
years

116,612

116,612

116,612－－

155,781
25,616

157,231
26,62341,3035,550

65,792
11,18250,135
9,891

239

239

223

－

Commodity swap

888

888

888

15
－

Total

299,135

301,593

164,577

76,98960,026

Bonds and loans payable
Finance lease liabilities
Derivative financial liabilities
Forward exchange contracts－(4) Market risk
Market risk is the risk of fluctuations in interest rates, share prices and other market prices that may affect the valueof the Group’s revenue and value of securities held by the Group. While optimizing profits, the Group manages market
risk exposures to acceptable levels.
(a) Interest rate risk
Loans payable and bonds are fixed interest rates. Accordingly, the impact of changes in interest rates on profit orloss is limited and the Group believes that our interest rate risk is insignificant and has not performed sensitivity
analyses such as basis point values.
(b) Share price risk
The Group is exposed to the risk of fluctuations in share prices because the Group holds a large number of
securities with quoted market prices. Securities with quoted market prices are held for purposes other than trading
and are designated primarily as financial assets measured at fair value through the other comprehensive income.
Assuming that all other variables are constant, if the price of listed securities held by the Group as of the end of the
fiscal year increases or decreases by 10%, the impact on the other comprehensive income (before tax effects) is 870
million yen and 454 million yen, respectively, for the previous fiscal year and current fiscal years.
120

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

(c) Currency risk
The Coca-Cola Bottlers Japan Co., Ltd., a consolidated subsidiary, purchases raw materials denominated inforeign currencies and is therefore exposed to currency risk, mainly in U.S. dollars. Currency risk arises fromforecast transactions, such as future purchases, or from assets and liabilities that are already recognized. The Grouputilizes foreign currency forward contracts to hedge its currency risk. Hedge accounting is applied to transactions
that meet the criteria for hedge accounting. Receivables and payables denominated in foreign currencies are exposedto the risk of exchange rate fluctuations, but the impact of this risk is limited as it is offset by forward exchange
contracts.
(d) Commodity price risk
The Coca-Cola Bottlers Japan Co., Ltd., a consolidated subsidiary, purchases raw materials that are subject tofluctuations in prices due to weather and natural disasters. As a result, the Group is exposed to the commodity pricerisk of raw materials. The Group enters into commodity swap contracts to hedge the risk of fluctuations in the pricesof these raw materials.
(5) Capital management
The Group’s fundamental capital management policy is to improve capital efficiency through long-term
improvements through business growth while maintaining a stable financial position.
The Group’s indicators for capital management are return on equity attributable to owners of the parent (“ROE”) andreturn on assets (“ROA”). ROE is the ratio of net profit to equity attributable to owners of the parent, and ROA is theratio of profit before tax to total assets. ROE and ROA for the previous and current fiscal years were as follows due toprofit contributions from top-line growth, sales volume, and wholesale revenue per case, despite the continuing impactof higher commodity and utility prices, and yen depreciation.
Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

ROE(1.67) %

0.40%

ROA

(1.47) %0.39%

The Group does not have any significant capital controls imposed by external parties.

121

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

(6) Classification of financial instruments
Balances by financial assets and financial liabilities classification for the previous fiscal year and the current fiscal
year are as follows:
Financial assets
As of December 31, 2022
(Millions of yen)
Financial
instrument
measured atfair value
through profit
or loss

Financial
instrument
measured atfair value
through othercomprehensiv
e income

Cash and cash equivalents－－

84,074

84,074

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

103,346

103,346

527

－

－

527

－

－

5

5

－

－

10

10

Derivative assets
Term deposits which mature due within
three months
Current portion of long-term loans
receivable
Other

Financial
instrument
measured atamortized cost

Total

－

－

－

－

527

－

15

542

－

－

22

Securities
Long-term loans receivable22－－

11,747－－27

11,747
27

Other

－

89

4,003

4,093

Subtotal

22

11,836

4,030

15,888

Total

548

11,836

191,466

203,851

Subtotal
Other financial asset (non-current)
Derivative assets

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

As of December 31, 2023
(Millions of yen)
Financial
instrument
measured atfair value
through profit
or loss

Financial
instrument
measured atfair value
through othercomprehensiv
e income

Financial
instrument
measured atamortized cost

Cash and cash equivalents
Trade and other receivables

－
－

－
－

113,660
120,069

113,660
120,069

Other financial asset (current)
Derivative assets

80

－

－

80

Term deposits which mature due within
three months

－

－

－

－

Current portion of long-term loans
receivable

－

－

7

7

Other

－

－

－

－

80

－

7

88

Derivative assets
Securities

－
－

－

－
7,463

Long-term loans receivable

－

7,463
－

－
－
17

17

Other

－

92

4,326

4,418

Subtotal

－

7,555

4,343

11,898

Total

80

7,555

238,079

245,715

Subtotal
Other financial asset (non-current)

Total

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

Financial instrument
measured atamortized cost

Trade and other payables－

108,254

108,254

Bonds and loans payable
Lease liabilities－－

156,701
23,269156,701
23,269

654

－

654

654

－

654

8
8

－
－

8
8

662

288,224

288,887

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

123

Total

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

As of December 31, 2023
(Millions of yen)
Financial instrument
measured at fair value
through profit or loss

Financial instrument
measured atamortized cost

Total

Trade and other payables－

116,612

116,612

Bonds and loans payable
Lease liabilities－－

155,781
25,616

155,781
25,616

1,111

－

1,111

1,111

－

1,111

15
15

－
－

15
15

1,127

298,009299,135

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

Since the Group holds securities for strategic investment purposes, these securities are designated as equity
instruments measured at fair value through the other comprehensive income.
The following is a fair value of the major issues of equity instruments measured at fair value through othercomprehensive income.
(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

Central Japan Railway Company

877

969

Nishi-Nippon Railroad Co., Ltd.
Mitsubishi Heavy Industries, Ltd.

988
471

956
742

Japan Airport Terminal Co., Ltd
AEON CO., LTD.

653
311

621
353

IZUMI Co., Ltd.

691

338

Oriental Land Co., Ltd.

655－

East Japan Railway Company

865

－

Issue

Dividends income related to investments held at the reporting date for the previous fiscal year and the current
fiscal year was as follows:(Millions of yen)Previous fiscal year
(From January 1, 2022
to December 31, 2022)
Dividends income

Current fiscal year
(From January 1, 2023
to December 31, 2023)

187

93

The Group disposed a part of the equity instrument designated as measurement at fair value through othercomprehensive income during the fiscal year from the viewpoint of reviewing business relationships. The fair value,
the cumulative gains, or losses (before tax effects) at the time of disposition and the dividends income were as
follows:(Millions of yen)Previous fiscal year
(From January 1, 2022, to December 31, 2022)
Fair value
2,485

Cumulative gain
(Loss)
917

Current fiscal year
(From January 1, 2023, to December 31, 2023)

Dividends
incomeFair value
50

124

5,652

Cumulative gain
(Loss)
2,848

Dividends
income84

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

Cumulative gains or losses recognized in accumulated other comprehensive income are reclassified fromaccumulated other comprehensive income to retained earnings at the time of disposition.
Reference: Note 19. Equity (5) Accumulated other comprehensive income125This is an English translation of the original Annual Securities Report (“Yukashoken Hokokusho”) filed with the Director-General of the Kanto Local
Finance Bureau via Electronic Disclosure for Investors` NETwork (“EDINET”) pursuant to the Financial Instruments and Exchange Act of Japan. In
the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusyo shall prevail.

(7) Fair value of financial instruments(a) Classification by level of the fair value Hierarchy
Financial instruments measured at fair value on a recurring basis after initial recognition are classified into threelevels of the fair value hierarchy, depending on the observability and significance of the inputs used in themeasurement.
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
or indirectly, 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 determinedbased on the lowest level of inputs that is significant to the fair value measurement as a whole. Transfers between
levels of the fair value hierarchy are recognized as having occurred at the beginning of each quarter.
There were no transfers between Level 1, Level 2, and Level 3 during the previous fiscal year and current fiscal
years.
(b) Fair value measurement
Securities are classified as Level 1 of the fair value hierarchy by the measurement of share prices, if any, an active
market for the same asset or liability. If there is no active market share price for the same asset or liability, the Group
uses valuation techniques such as share prices in non-active markets, quoted market prices of similar companies anddiscounted future cash flow models. If significant inputs, such as quoted market prices and discount rates used inmeasurement, are observable, such financial instruments are classified as Level 2, but are classified as Level 3 if
inputs used in its measurement include significant unobservable inputs.
Unlisted securities are classified into Level 3 of the fair value hierarchy using valuation techniques based on
discounted future cash flows, valuation techniques based on quoted market prices of similar companies, valuation
techniques based on net asset value, and other valuation techniques. In the fair value measurement of unlisted
securities, the Group uses unobservable inputs such as discount rates and valuation multiples and considers certain
illiquidity discounts and noncontrolling interest discounts as needed. The measurement methods for such fair value
are determined by the Finance division in accordance with the Group’s accounting policies.
The valuation techniques and significant unobservable inputs used in Level 3 fair value measurement for theprevious fiscal year and the current fiscal year are as follows:
As of December 31, 2022
Type

ValuationtechniqueSignificant unobservable inputs

Interactions between significant
unobservable inputs and fair value
measurement

Comparison

EBIT Multiple: 6.2- 7.9 times
EBITDA Multiple: 8.2 times

Estimated fair value increases (decreases)

Financial
instrument
measured at fairvalue through othercomprehensiveof similar
companies

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

when equity indices of comparable listedcompanies of the target are high (low)income (Securities)
As of December 31, 2023
Type
Financial
instrument
measured at fairvalue through other

ValuationtechniqueComparisonof similar

companies
comprehensive
income (Securities)
EBIT Multiple: Corporate Value/EBIT
EBITDA Multiple: Corporate Value/EBITDA
PER: Price-Earnings Ratio
PBR: Price Book Value Ratio

Significant unobservable inputs

EBIT Multiple:26.8 times
PER: 5.8 – 6.5 times
PBR: 1.1-2.4 times

126

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

(c) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis for the previous fiscal year andthe current fiscal year are 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:
－

548

－

548

－

548

－

548

8,701
－

－

3,046

11,747－89

89

Subtotal

8,701

－

3,135

11,836

Total

8,701

548

3,135

12,385

－

662

－

662

－

662

－

662

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

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

Level 2

Level 3

Total

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

80

－

80

－

80

－

80

4,542
－

－

2,921

7,463

－

92

92

Subtotal

4,542

－

3,013

7,555

Total

4,542

80

3,013

7,635

－

1,127

－

1,127

－

1,127

－

1,127

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

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

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

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 for the previous
fiscal year and the current fiscal year are as follows:(Millions of yen)
Financial assets measured at fair value through othercomprehensive income
Balance on January 1, 2022
Purchase

4,4232

Disposals
Gains or losses recognized in other comprehensive income

(487)
(805)

Other

2

Balance on December 31, 2022

3,135

Purchase
Disposals

3(217)

Gains or losses recognized in other comprehensive income
Other

92
－

Balance on December 31, 2023

3,013

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 for theprevious fiscal year and the current fiscal year 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 December 31, 2023
(Millions of yen)
Carrying amountLong-term loans payable and bonds

155,781

Fair value
154,547

Difference
1,234

Long-term loans payable and bonds include current portion. Cash and cash equivalents, trade and otherreceivables, trade and other payables are not included in the above table because their fair value approximates it
carrying amount because they are collected and settled in a short period of time.
The main valuation techniques used to fair value measurement the financial instruments in the table above are as
follows:
a. Loans payable
Loans payable with variable interest rates are calculated the carrying amount as its fair value because interest
rates are considered to reflect market interest rates in the short term. Loans payable with fixed interest rates iscalculated based on the present value of future cash flows discounted using interest rates adjusted for remaining
term and credit risk. Loans payable with variable interest rates and fixed interest rates are classified into level 2 ofthe 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 the fair value hierarchy and bonds without quoted market prices are classified intolevel 2.
128

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

129

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

(8) Derivatives and hedge accounting
The management of hedge accounting for the risk management of the Group is described in “(1) Financial risk
management”. Derivative transactions are conducted by Coca-Cola Bottlers Japan Inc.
(a) Impacts on the consolidated statements of financial position
The impact of hedging instrument designated as hedges on the consolidated statements of financial position was asfollows: The carrying amount (fair value) of assets related to hedging instrument is included in “Other financial
assets” and the carrying amount (fair value) of liabilities related to hedging instrument is included in “Other financial
liabilities.”
As of December 31, 2022
(Millions of yen)
Hedge typeHedging
instrument

Risk category

Carrying amount (fair value)
AssetsLiabilities

ForwardCurrency
Cash flow hedges

Notional
amountrisk

exchange
contracts

Price risk

Commodity
swap
Total

12,63793

162

15,235456

501

27,872

548

662

The average exchange rate used for forward exchange contracts was 129.15 yen per U.S. dollar.
As of December 31, 2023
(Millions of yen)
Hedge typeHedging
instrument

Risk category

Forwardexchange

Currencyrisk

Cash flow hedges

Notional
amountcontracts
Commodity

Price risk

swap
Total

Carrying amount (fair value)
AssetsLiabilities

7,707

－

239

14,74380888

22,44980

1,127

The average exchange rate used for forward exchange contracts was 142.33 yen per U.S. dollar.
In hedging transactions conducted by the Group, the entire hedged item items are hedged, and there are notransactions to hedge certain risk elements.
The periods of hedge for cash flows movements of foreign currency forward contracts and commodity swaps arefrom January 2024 to December 2024.
Accumulated other comprehensive income related to cash flow hedges was as follows: There were no accumulated
other comprehensive income related to cash flow hedges arising from hedge relationships that discontinued hedge
accounting.
(Millions of yen)Previous fiscal year
(As of December 31, 2022)
Forward exchange contracts
Commodity swap
Total

130

Current fiscal year
(As of December 31, 2023)
(89)
(74)

(219)
(573)

(163)

(792)

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

(b) Impact on the consolidated statements of profit or loss and consolidated statements of comprehensive income
The impacts on profit or loss and other comprehensive income related to hedging instrument designated as cash
flow hedges for the previous fiscal year and the current fiscal year are as follows:
For the year ended December 31, 2022
(Millions of yen)Amounts
reclassified fromaccumulated othercomprehensive
income to profit orloss asreclassification
adjustments

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

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

Currency risk
Price risk

1,056
855

20
－

(69)
(45)

－
－

Total

1,910

20

(114)

－

Risk category

For the year ended December 31, 2023
(Millions of yen)Amounts
reclassified fromaccumulated othercomprehensive
income to profit orloss asreclassification
adjustments

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

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

Currency risk
Price risk

386
(1,284)

39
－

(239)
(808)

－
－

Total

(898)

39

(1,046)－

Risk category

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

131

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

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

Beveragebusiness

Name ofsubsidiary
Coca-Cola
Bottlers JapanInc.

Location of head
officeThe details of
the business

Minato-ku,

Manufactureand sales ofTokyo

FV Japan Co.,

Toshima-ku,

Ltd.

Tokyo

Coca-Cola
Bottlers Japan
Vending Inc.

beverage andfoodSales ofbeverages andShinjuku-ku,
Tokyo

Current fiscal year
(As of December
31, 2023)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

foods
Vending
machineoperation
On-siteadministration

Coca-Cola
Bottlers Japan
Business

Previous fiscal
year(As of December
31, 2022)

Minato-ku,Tokyorelated withsales ofServices Inc.

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

132

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

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

Name of associate

Beverage

Resources Inc.

business

Location of head
officeThe details of
the businessTakamatsu-

Vending
machine-shi, Kagawa

relatedbusiness

Previous fiscal
year(As of December
31, 2022)

Current fiscal year
(As of December
31, 2023)

44.0%

44.0%

(Note) Percentage of voting rights include indirect holdings through subsidiary.
33. Commitment
Purchase commitments
Commitments related to acquisition of property, plant and equipment and intangible asset after the reporting date forthe previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

1,774

2,252

Property, plant, and equipment
Intangible assets
Total

2

1

1,776

2,253

Purchase commitments excluding the above amounts were 8,478 million yen and 4,271 million yen for the previous
fiscal year and the current fiscal year, respectively. Primarily due to the contract of outstanding obligations related to
the gas purchasing contract.
34. Earnings per share
The computation of basic earnings (loss) per share attributable to owners of the parent is based on net profit for the year
attributable to owners of the parent and the weighted-average number of shares of ordinary share outstanding.
Basis for calculation of basic earnings (loss) per share for the previous fiscal year and the current fiscal year are as
follows:
For the year ended
For the year ended
December 31, 2022
December 31, 2023
Income (Loss) attributable to owners of parent (millionsof yen)(8,070)1,871

Weighted-average number of common shares issued (inthousands)

179,342

179,383

Increase in common shares
Share of share-based compensation (in thousands)
Diluted weight average number of shares (in thousands)
Earnings(losses) per share (yen)

1.
2.

1,227

－

180,60910.43(45.00)－

Diluted earnings per share (yen)
Notes

－

10.36

“Diluted earnings per share” is not shown in the previous fiscal year, as 751 thousand shares of share-based
compensation have an antidilutive effect.
We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust. The Company shares heldby these trusts are included in the treasury shares to be deducted from the weighted average number ofcommon shares during the year for calculating the amount of earnings(losses) per share and diluted earnings
per share. The weighted average number of common shares deducted was 26,886 thousand shares for
current fiscal year.

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

35. Related party transactions
Transaction amounts and amounts outstanding with the related parties were as follows: Transactions with subsidiaries
are not disclosed as they have been eliminated in consolidated financial statements.
For the year ended December 31, 2022
(Millions of yen)
Relationship withaffiliated companies

Name

Transaction

The amount of thetransaction

Amount outstanding

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

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

MICHINOKU
COCA-COLABOTTLING CO.,LTD.

rebates of sales
promotion

128,436

18,772

316,898

13,317

Sale of soft drinks

2,860

234

Purchase of softdrinks78

5

Purchase ofconcentrate

For the year ended December 31, 2023
(Millions of yen)
Relationship withaffiliated companies

Name

Transaction

The amount of thetransaction

Amount outstanding

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

associates

rebates of sales
promotion
Purchase ofconcentrate

128,488

31,967

310,428

14,786

An officer of theSale of soft drinks
4,113
288
MICHINOKU
parent company
COCA-COLA
holds a majority of
Purchase of soft
BOTTLING CO.,606
57
the voting rights inLTD.
drinksanother company, etc.
Note 1. The transaction amount does not include consumption taxes, but the amount outstanding includes consumption taxes.
2. Transactions with The Coca-Cola Company's subsidiary, Coca-Cola (Japan) Company, Limited are conducted based on thecontract concluded with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited concerning the manufacture, saleof the Coca-Cola etc. and use of the Coca-Cola trademark.
3. Transactions with Michinoku Coca-Cola Bottling Co., Ltd. are determined in the same way as transactions with other parties
with no association with our company and under the general trading terms and conditions that take into consideration themarket prices, etc.
Compensation for major key management personnel for the previous fiscal year and the current fiscal year are as follows:(Millions of yen)Previous fiscal year
Current fiscal year
(From January 1, 2022
(From January 1, 2023
to December 31, 2022
to December 31, 2023
Remuneration

611

561

Share-based compensation
Bonus
Compensation upon retirement

250
181

292
271

21
21

23
－

1,085

1,147

Other
Total
36. Subsequent events
Not applicable.

134

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

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

2nd quarter3rd quarter

Current fiscal year

(Yen)

182,063404,109

663,825

868,581(Yen)(9,151)(6,580)

5,947

3,224

owners of the parent for the quarter or
year

(Yen)

(6,459)(3,947)

8,862

1,871

Profit and Loss per share(Yen)(36.02)(22.01)

21.53

10.43

Net Profit and loss before income taxes
and minority interests for the quarter oryear
Net Profit and loss in attributable to

1st quarter(Quarter-to-date)
Earnings (losses) per share(Yen)(36.02)135

2nd quarter
14.01

3rd quarter
43.52

4th quarter(11.09)

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

Previous fiscal year
(As of December 31, 2022)(Millions of yen)
Current fiscal year
(As of December 31, 2023)

－
347
3
5,622
7
181
647
241
7,048

40,000
284
3
8,526
13
271
601
161
49,859150,000
2
－
926
449
115
151,492
158,540

110,000
2
21
668
813
147
111,651
161,510

15,232

15,232

108,167
158,783
266,949

108,167
153,438
261,604

3,317

3,317

675
110,388
33,507
147,887(85,667)
344,402344,402502,941674
110,388
25,811
140,190(80,182)
336,844336,844498,355

Liabilities
Current liabilities
Current portion of bonds payable
Accounts payable
Accrued expenses
Deposits
Bonus provision
Provision of directors' bonuses
Income tax payable
Other
Total current liabilities
Non-current liabilities
Bonds
Allowance for retirement benefit
Deferred tax liabilities
Asset retirement obligations
Performance-linked compensation provision
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital share
Capital surplus
Legal capital reserve
Other capital surplus
Total capital surplus
Retained earnings
Legal reserve
Other retained earnings
Excess tax depreciation reserve
General reserve
Retained earnings brought forward
Total retained earnings
Treasury ShareTotal shareholders' equity
Total net assets
Total liabilities and net assets

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

② Statements of profit or loss
Previous fiscal year
(From January 1, 2022
to December 31, 2022
Operating revenue
Operating expenses
Operating profit
Non-operating income
Interest and dividends income
Compensation for expropriation
Other
Total non-operating income
Non-operating expenses
Interest expense
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Impairment losses
Total extraordinary losses
Income before income tax
Income taxes
Income tax adjustments
Total income taxes
Net profit

138(Millions of yen)
Current fiscal year
(From January 1, 2023
to December 31, 2023

5,640
3,713
1,927

6,052
4,504
1,548

149
168
14
331

116
－
7
123

368
21
388
1,869

296
75
370
1,301

615
615

1,083
1,083

15
15
2,469
743
163
906
1,562

103
103
2,281
890
42
932
1,349

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

Supplemental Notes of the statement of changes in equity(Note) Breakdown of other retained earnings
Previous fiscal year (From January 1, 2022, to December 31, 2022)
Other retained earnings
Advanced
Other voluntary
depreciation
reserve fundreserve fund(Millions of(Millions of
yen)
yen)
Balance on January 1

Deferred
retainedearnings(Millions ofyen)

Total otherearnings(Millions of
yen)

676

110,388

40,911

151,975

Dividend of surplus－－(8,967)(8,967)

Net income

－

－

1,562

1,562

Reversal of reserve funds

(1)

－

1

－

Purchase of treasury share

－

－

－

－

Disposal of treasury share

－

－

－

－

Changes in items other thanshareholders' equity, net

－

－

－

－

Total changes during the year(1)－

(7,404)(7,405)

Balance on December 31

675

110,388

33,507

144,570

Changes during the year

Current fiscal year (From January 1, 2023, to December 31, 2023)
Other retained earnings
Advanced
Other voluntary
depreciation
reserve fundreserve fund(Millions of(Millions of
yen)
yen)
Balance on January 1

Deferred
retainedearnings(Millions ofyen)

Total otherearnings(Millions of
yen)

675

110,388

33,507

144,570

Dividend of surplus－－(9,046)(9,046)

Net income

－

－

1,349

1,349

Reversal of reserve funds

(1)

－

1

－

Purchase of treasury share

－

－

－

－

Disposal of treasury share

－

－

－

－

Changes in items other thanshareholders' equity, net

－

－

－

－

Total changes during the year(1)－

(7,696)(7,697)

Balance on December 31

674

110,388

25,811

136,873

Changes during the year141

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

【Notes】(Significant accounting policies)
1. Accounting policy for measuring securities(1) Bonds held to maturity
These are measured at amortized cost (straight-line method).
(2) Investment securities of subsidiaries and associates
These are measured at cost determined mainly by the moving-average method(3) Other securities
With market value:
These are measured by the market value method based on market prices as of the end of the fiscal year (valuationdifferences are all included in net assets, and the sold cost of securities is determined by the moving-average method).
Without market value:
These are measured at cost determined principally by the moving-average method.
2. Accounting policy for depreciation of assets(1) Property, plant, and equipment
Depreciation is calculated by the straight-line method. The main useful life is as follows:
Buildings
2 – 50 years(2) Intangibles assets
Amortization is calculated by the straight-line method.
3. Accounting policy for provisions(1) Bonus provision
Bonus provision is recognized at the estimated amount to be paid as of the fiscal year, in order to prepare for thepayment of bonuses to employees.
(2) Provision of directors' bonuses
Provision of directors' bonuses is recognized as the estimated amount to be paid as of the fiscal year, in order toprepare for the payment of bonuses to directors and corporate auditors.
(3) Performance-linked compensation provision
Performance-linked compensation provision is recognized the estimate amount to be paid as of the fiscal year, inorder to prepare for the payment of shares and cash to executive directors and executive officers.
(4) Allowance for retirement benefit
In order to prepare for the payment of retirement benefit, the company records an estimate payment amount as of theend of year. Actuarial gains and losses are amortized from the following fiscal year by the straight-line method over a
fixed number of years within the average remaining service period of employees.
4. Accounting standards for income and expenses
The Company’s operating revenue consists of real estate rents and dividends income from subsidiaries. The main
performance obligation in real estate rents is the provision of goods or services to subsidiaries. Since the performanceobligation is satisfied when control of these promised goods or services is transferred to the customer, revenue isrecognized when the performance obligation is satisfied. Dividends income is recognized as of the effective date ofdividends.
5. Other important matters that form the basis for the preparation of financial statements
Accounting for Retirement Benefits
The method of accounting for unrecognized actuarial differences related to retirement benefits differs from themethod of accounting for these items in the consolidated financial statements.
(Change in accounting policy)
Not applicable.

142

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

(Additional Information)(The Executive reward BIP Trust)
The Company has introduced the board incentive plan “the Executive reward BIP Trust” for the Company's
executive directors.
(1) The outline of transaction
The System is a stock-based compensation plan under which the Company's shares are acquired by a trust
established by the Company with funds contributed by the Company, and the Company's shares are delivered to the
executive directors.
(2) Our shares remaining in the trust
The book value at the end of fiscal year was 1,870 million yen and 1,261 thousand shares.
(Stock-granting ESOP Trust)
The Company has introduced a performance-linked remuneration “Stock-granting ESOP Trust” for executive
officers of the Company, employees recognized by the Company, and executive officers and employees of groupsubsidiaries determined by the Company.
(1) The outline of transaction
The System is a stock-based compensation plan under which a trust established by the Company acquires theCompany's shares with funds contributed by the Company, and the Company's executive officers, employees
recognized by the Company, and executive officers and employees of the Company's group subsidiaries determinedby the Company are granted the Company's shares.
(2) Our shares remaining in the trust
The book value at the end of fiscal year was 2,653 million yen and 1,789 thousand shares.

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

(Notes to Balance Sheet)※1 Amounts related to subsidiaries and associates included in them for the previous fiscal year and the current fiscal year
are as follows:
Previous fiscal year
(As of December 31, 2022)
Short-term monetary receivables
Short-term monetary payables

294 million yen
5,652

Current fiscal year
(As of December 31, 2023)
491 million yen
8,553

2 Contract for overdraft
The Company has entered into overdraft contracts with six banks to efficiently secure working capital. The unused
outstanding of the overdraft contracts as of the end of the previous fiscal year and the current fiscal year are as follows:
Previous fiscal year
(As of December 31, 2022)
Maximum overdraft amount
Used outstanding of loans
Net amountCurrent fiscal year
(As of December 31, 2023)

255,000 million yen－

255,000 million yen－

255,000

255,000(Notes to statement of profit or loss)※1 Transactions with affiliated companies for the previous fiscal year and the current fiscal year are as follows:
Previous fiscal year
(From January 1, 2022
to December 31, 2022)

Current fiscal year
(From January 1, 2023
to December 31, 2023)

Sales revenue and operating revenue

5,640 million yen

6,052 million yen

Sales expense

122

365

Transactions excluding operating transactions

149

116

※2 Major items and amounts of selling, general and administrative expenses and operating expenses for the previous fiscal
year and the current fiscal year are as follows:
Previous fiscal year
(From January 1, 2022
to December 31, 2022)
Depreciation.

1,103 million yen

Taxes and dues
Rents expenses

742
495
－

Insurance expenses
Consignment expenses of business activities

Current fiscal year
(From January 1, 2023
to December 31, 2023)
1,066 million yen
767
493

134

661
180

Directors’ remuneration
Provision for directors' bonus provision

653
181

542
271

Provision for performance-linked
compensation provision

251

364

Advertising expenses
Retirement benefit expenses

9
5

8
9

Bonuses and provision for bonuses provision

13

25※3 The breakdown of gain on sales of non-current assets is as follows:
Previous fiscal year
(From January 1, 2022
to December 31, 2022)
Buildings

147 million yen

Structures
Land
144

Current fiscal year
(From January 1, 2023
to December 31, 2023)
7 million yen

6

0

462

1,077

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

※4 Impairment losses
The Company decides the grouping of assets for business-by-business units for managerial accounting purposes whose
profit or loss is managed on an ongoing basis. In addition, for rental assets and idle assets, the Company identifies eachindividual property as the smallest unit for grouping and assesses the indication of impairment.
For the buildings, structures, and land of the applicable base of the idle assets whose land value has declined, thecarrying amount has been reduced to its recoverable amount, and the amount of such reduction is recorded as impairment
losses.
The recoverable amount of idle asset is calculated based on real estate appraisal value.
Previous fiscal year (From January 1, 2022, to December 31, 2022)
RegionUse

Number of sites

KyushuIdle asset

1

Type
Land
Buildings

Impairment losses
150Current fiscal year (From January 1, 2023, to December 31, 2023)

RegionUse

Number oflocationsType

Impairment loss
（million yen）

Kinki

Idle asset

2

Buildings
Land

0
43

Tyugoku

Idle asset

3

Buildings
Constructions
Land

8
0
51

The Company has divided assets for business use into groups by business unit that generates cash continuously basedon management accounting system. As for rental property and idle assets, each individual property is recognized as thesmallest grouping unit in order to detect and judge any sign of impairment.
For the current fiscal year, of the idle assets of which market value, etc. decreased, the book values of certain piecesof land, buildings, and structures in the target locations are reduced to their recoverable amounts, and the amount of
reduction is recognized as impairment loss.
The recoverable amounts of idle assets are calculated based on the valuation by real estate appraiser, etc.
(Securities)
The market values of shares of subsidiaries and affiliates (the amount on the balance sheets for the previous and current
fiscal years is 342,561 million yen for shares of subsidiaries) are not stated because shares of subsidiaries and affiliates do
not have market prices.

145

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

(Tax effect accounting)
1. The breakdown of major causes of deferred tax assets and deferred tax liabilities
Previous fiscal year
(As of December 31, 2022)

Current fiscal year
(As of December 31, 2023)

1,720 million yen
225

1,679 million yen
249

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

726

779

2,670

2,706

Valuation allowance

(536)

(660)

Total deferred tax assets

2,134

2,046

Deferred tax liabilities
Advanced depreciation reserve fund

(913)

(908)

Difference on revaluation of land
Other

(1,151)(49)(1,115)(45)(2,114)(2,067)21(21)

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

2. Differences between the statutory tax rate and the applicable tax rate after tax effectPrevious fiscal year
(As of December 31, 2022)
Statutory tax rate
Adjustments:

Current fiscal year
(As of December 31, 2023)

30.6%

30.6%

Permanent differences such as entertainment
expense7.8

5.4

Valuation allowance
Other

(2.1)
0.3

5.5
(0.6)

36.7

41.0

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

146

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

④ Annexed detailed schedules【Statement of Property, Plant and Equipment and Intangible Assets】
Category

Asset type

Balance atIncreasetheduring the
beginning ofyear
the yearAccumulated
Decrease Depreciation Balance at
depreciation
during the during the the end of
at the end of
year
year
the yearthe year

Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen Millions of yen

Buildings

64,924－Structures

11,085

－

35

－

Land

47,613－

Total

123,656－

Software5－

Intangible Leasehold
rightassets27
32

Property, Tools,
plant and instruments,
equipment and fixtures

Total

572
(9)

986

64,35253,441

81

10,973

10,257

2

35

29

－

47,006－

1,069

122,366

63,727

5

－

－

－

－

－

－

27

－

－

5

－

27

－

111
(0)
－
607
(94)
1,290
(103)

Notes:
1. Breakdown of main decrease is as follows:Land
Decrease of Yodogawa Sales Center dur to sell

225 million yen

Land

Decrease of Kurume Sales Center due to sell

144 million yen

Buildings and Structures

Decrease of Saga office due to sell

61 million yen

2. The figures in the () in “Decrease during the year” represent the amount of impairment loss recorded.
3. The balance at the beginning of the fiscal year and the balance at the end of the fiscal year are stated based on the acquisition price.
【Statement of Allowance】
Balance at the
beginning of theyear
Millions of yen

Category

Increase during
the year

Decrease during
the year

Balance at the endof the year

Millions of yen

Millions of yen

Millions of yen

7

13

7

13

Allowance for officers’ bonuses

181

271

181

271

Allowance for performance-linked pay

449

813

449

813

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

147

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

Ⅵ. Overview of operational procedures for shares
Accounting period

From January 1 to December 31

Ordinary General
Meeting of Shareholders

March

Record date

December 31

Record date of dividend

June 30
December 31

Number of sharesconstituting one unit

100 shares

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

Administrator of
Shareholders’ Register

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

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

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

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

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

Publication notices
publication method

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

Benefits to shareholders

Not applicable.

(Note) Rights for shares of less than one unit
Pursuant to the Company’s articles of incorporation, shareholders holding shares of less than one unit of shares have no rights otherthan those listed below:- Rights listed in Article 189, Paragraph 2 of the Companies Act.
- The right to make demands pursuant to Article 166, Paragraph 1 of the Companies Act- The right to receive allotment of shares for subscription or share acquisition rights for subscription according to the number of shares
held by the shareholder- The right to demand cash-out of shares of less than one unit of shares

148

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

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

2. Other reference information
The following documents have been submitted between the start date of this fiscal year and the date of submission of the
securities report.
(1) Securities report and its attached documents and confirmation
Business year (65th term) (January 1, 2023, to December 31, 2023) Submitted to Kanto Finance Bureau March 29, 2023
(2) Internal control report
Submitted to Kanto Finance Bureau March 29, 2023
(3) Quarterly report and confirmation(First quarter of the 66th term) (January 1, 2023, to March 31, 2023) Submitted to Kanto Finance Bureau Chief May 15,
2023(Second quarter of the 66th term) (April 1, 2023, to June 30, 2023) Submitted to Kanto Finance Bureau Chief August 10,
2023(Third quarter of the 66th term) (July 1, 2023, to September 30, 2023) Submitted to Kanto Finance Bureau Chief November
10, 2023(4) Extraordinary Report
This is an Extraordinary Report based on Article 19, Paragraph 2, Item 9-2 of the Cabinet Office Ordinance on Disclosure of
Corporate Information, etc. (Results of Exercise of Voting Rights at the General Meeting of Shareholders).
Filed with the Director-General of the Kanto Local Finance Bureau on April 3, 2023
(5) Securities Registration Statement and its attached documents
Securities Registration Statement for Newly Issued Shares by Third-Party Ratio
Filed with the Director-General of the Kanto Local Finance Bureau on May 12, 2023
(6) Amended Securities Registration Statement and its attached documents
Filed with the Director-General of the Kanto Local Finance Bureau on May 15, 2023
(7) Amended issue registration statement and its attached documents
Filed with the Director-General of the Kanto Local Finance Bureau on June 2, 2023

149

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

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

150