NOTICE OF THE ORDINARY
GENERAL MEETING OF
SHAREHOLDERS

On Attending the
Virtual-Only General
Meeting of Shareholders

FOR THE FISCAL YEAR ENDEDDECEMBER 31, 2023

This general meeting of shareholders will
be held exclusively on the Internet, using
the virtual-only shareholders’ meeting
method. Shareholders who wish toparticipate on the day of the Meeting arerequested to attend the Meeting virtually.
See the “Instructions on How to Log In to
the Virtual-Only General Meeting of
Shareholders” on Page 7.

Table Contents
Date and Time

March 26,2024 (Tuesday)
at 10:00 a.m.

(Log in possible from 9:30 a.m.)
Instructions on How to Log In
to the Virtual-Only General
Meeting of Shareholders

Page

7

Notice of the Ordinary General Meeting of
Shareholders for the Fiscal Year Ended
December 31, 2023 
4
Reference Materials for General Meeting of
Shareholders 
12Proposal No. 1 Appropriation of surplus
Proposal No. 2 Election of five (5) Directors(excluding Directors servingon the Audit andSupervisory Committee)
Business Report 
22
Consolidated Financial Statements 59
Financial Statements 
80
Audit Report 
88
Securities code: 2579

[Corporate Philosophy : Mission, Vision, Values][Corporate Message]

From the fiscal year ending December 31, 2020, the year-end “To Our Shareholders” will be integrated into the Notice of Convocation,and “To Our Shareholders” will be issued only for the interim period.
Please take advantage of our website, where you can obtain major IR information.

https://en.ccbj-holdings.com/ir/

Coca-Cola Bottlers Japan IR

1

SearchTo my fellow Shareholders,Thank you for your ongoing support and interest in our company.
2023 was a good year with several achievements. As “The Year of profit focus,” we targeted initiatives driving profitability,transformation, and implementing key business activities. As a result, I am delighted to announce that we have returned tofull-year profit ahead of our 2024 target, with a significant business income increase of 16.5 billion yen over the previous
year. We are confident that we have made great progress towards sustainable profit growth.
As the key initiatives of 2023, we revised product pricing and conducted disciplined sales activities to increase profitability
and investment efficiency. Additionally, to capitalize on the traffic recovery, we made efforts to grow sales revenue by
introducing new products, executing efficient and effective marketing activities, enhancing customer engagement, boostingsales volumes, and optimizing price-per-case. Furthermore, we focused on ensuring the stable operation of the Sales andOperations Planning process, building a supply system for each area and utilizing our automated mega-DCs.
We have made good progress in our Environmental, Social and Governance activities. We collaborated with both customers
and local government to reduce environmental impact. This collaboration aims to create a recycling-oriented society andexpand business opportunities through water resource conservation and greater PET bottle recycling. As a result of these
efforts, we achieved the highest A List rating in both the Climate Change and Water Security categories in the 2023
sustainability survey conducted by international non-profit organization CDP. Moreover, we have been selected as acomponent of the DJSI Asia Pacific, a leading global ESG investment index, for six consecutive years.
In August 2023, we announced our strategic business plan “Vision 2028,” which runs until 2028. This plan established key
targets for annual revenue growth of 2% to 3%, a business income margin of at least 5% and a return on invested capital of atleast 5% by 2028. Additionally, it outlines key strategies and commitments to achieve the plan.
We have positioned 2024 as “The year of strong profit built up.” Our objective is to accelerate the strong momentum andachieve our ambitious target of 10 billion yen in business profit, five times that of last year. To achieve this, our strategic
focus is on top-line growth with profit maximization. We will implement further transformation to strengthen our businessfoundation with company-wide cost savings and investment in tech infrastructure. Furthermore, in the Commercial area, we
initiated an organizational restructuring at year’s outset around three channels. This reorganization
aims to expedite decision making within the Commercial function and improve each channel’sability to advance growth strategies.
We will continue to provide a high-quality supply of products while meeting the evolving
needs of our customers. In order to continue as the preferred partner for decades to come,
we are committed to making great strides forward toward sustainable growth andimproved corporate value by delivering happy moments to everyone while creating
value.
Your continued support and guidance is greatly appreciated. We sincerely wish
you the best of health.

Calin Dragan
Representative Director & President2Consolidated Financial Highlights (IFRS)Sales Revenue

Business Income (loss)

Operating Income (loss)

868.6 billion yen

2.0 billion yen

3.4 billion yen

billion yen
900

807.4

868.6

600

billion yen
20billion yen
20

10

10

0
300

2.0

(14.4)-10

FY2022-20
FY2022

FY2023

FY2023Net Income (loss) attributableto owners of parent

Dividend per Share

1.9 billion yen

50 yenbillion yen
10

0

1.9

FY2022 actual

50

40

-10
FY2023

40

Brands0
FY2022

Number of
Brands
about

20

-5

Annual Sales
Volumemillion cases

50
(8.1)

FY2022

500

yen
60

5

3.4

-10

-20

0

(11.5)

0

FY2022

FY2023*Business profit is a measure of the recurring performance of a business and is calculated bysubtracting cost of sales and selling, general and administrative expenses from revenue, andadding or subtracting other income and other expenses that are incurred on a recurring
basis.

3

Number of
Products
more than600
products

FY2023

This document is a summary translation of the Japanese language original version. In the event of any discrepancy, errors and/or omissions, theJapanese language version shall prevail.

Securities Code: 2579
March 4, 2024
(Start date of electronic provisioning measures: February 26, 2024)



NOTICE OF THE ORDINARY GENERAL MEETING OF SHAREHOLDERS
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2023

Dear Shareholders,
You are hereby notified of the Ordinary General Meeting of Shareholders for the fiscal year ended December 31, 2023 of
Coca-Cola Bottlers Japan Holdings Inc. (the “Company”), which will be held as described hereunder.
The Company has adopted an electronic method of providing the Notice of Convocation of the Ordinary General Meeting of
Shareholders for the fiscal year 2023. For the convenience of shareholders, some of the items are provided in writing, but theentire items are posted on the following website as the “Notice of Convocation of the 2023 Ordinary General Meeting of
Shareholders.”
The Company’s website:

https://en.ccbj-holdings.com/ir/stockholder/meeting.php

In addition to the above, the information is also available on the following website on the Internet
TSE website (TSE-listed company information service):https://www2.jpx.co.jp/tseHpFront/JJK020030Action.do* Please access the above TSE website, enter or search for the issue name (company name) or securities code, and select“Basic information” followed by “Documents for public inspection/PR information” to confirm the information.

If you are unable to attend the Meeting in person, you may exercise your voting rights either by writing (by postal mail) or
via the Internet, etc. When exercising your voting rights in advance either by writing or via the Internet, etc., please review
the Reference Materials for Ordinary General Meeting of Shareholders listed in the matters of Electronic Provisioning
Measures and exercise your voting rights by 5:45 p.m., March 25 (Monday), 2024.
Sincerely yours,

Calin Dragan

Representative Director & President

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

Matters Related to the Exercise of Voting Rights in Writing or via the Internet, etc.
Exercise of voting rights by

writing (by postal mail) in advance

Exercise of voting rights via theInternet, etc. in advance

Please review the attached Reference Materials for the
General Meeting of Shareholders, indicate your approval ordisapproval to the proposals on the enclosed proxy voting
form, and return it without affixing a postage stamp.

Please review the “Instructions on
Exercising Voting Rights Via theInternet, etc.” and exercise yourvoting rights by the deadline.

Voting form must be

Attendance on the day of the Meeting
Exercise of voting rights at theVirtual-Only General Meeting of Shareholders
Review the section “On Attending the
Virtual-Only General Meeting of
Shareholders” and attend theOrdinary General Meeting of
Shareholders on the day.

Voting By 5:45 p.m.,deadline March 25 (Monday), 2024
March 25 (Monday), 2024
If no indication of approval or disapproval is made on the voting form for a proposal, it will be treated as an indication of
approval.
If you exercise your voting rights duplicate in advance, both by writing and via the Internet, etc., the voting via the Internet,
etc. shall prevail. In case of multiple voting via the Internet, etc. in advance or both through the personal computer andsmartphone, etc. in advance, the last voting shall prevail.
Votingdeadline arrived by 5:45 p.m.,

4

Date
and
Time

NOTES
March 26, 2024 (Tuesday) at 10:00 a.m. (log in possible from 9:30 a.m.)* In the unlikely event that the Ordinary General Meeting of Shareholders cannot be held on the above date andtime due to communication problems or other reasons, the General Meeting of Shareholders will be
postponed to 1:00 p.m., March 27 (Wednesday), 2024.
This
Ordinary General Meeting of Shareholders will be held as a general meeting of shareholders without a
Meetingdefinedlocation (virtual-only general meeting) in accordance with the provisions of the law and theFormatArticles of Incorporation of the Company.
Please attend through our designated website. See the “Instructions on How to Log In to the Virtual-Only
General Meeting of Shareholders” described on Page 7 for further information and instructions on attending theMeeting.
The Meeting will be held entirely online using only the Internet. There will be no physical venue forshareholders to attend the Meeting in person.

1. Business report and consolidated financial statements for the fiscal
year ended December 31, 2023 (January 1 to December 31, 2023);
and audit reports of consolidated financial statements by Accounting
Auditors and the Audit and Supervisory Committee
2. Non-consolidated financial statements for the fiscal year ended
December 31, 2023 (January 1 to December 31, 2023)
Items
Proposal No. 1 Appropriation of surplus
to beProposal No. 2 Election of five (5) Directors (excluding Directors
proposedserving on the Audit and Supervisory Committee)

Agenda Items

to bereported● Please review the “Outline of the policy addressing considerations for the interests of shareholders who have difficulties using
the Internet” on Page 10.
● In the event of any modifications to the matters of Electronic Provisioning Measures, we will post the modifications on therespective websites where the information is posted.
● The following matters are posted on the websites of both the Company and the TSE as the matters to be provided electronically.
They are not included in the document describing matters to be provided electronically, which is sent to shareholders who haverequested delivery of the document in accordance with laws and ordinances and Article 16 of the Articles of Incorporation of theCompany.
(1) “Main Businesses”, “Major Locations, etc.”, “Status of Employees” and “Major Financial Institutions providing loans to theCompany” within “Current Status of the Coca-Cola Bottlers Japan Holdings Group” in the Business Report(2) “Accounting Auditor”, “The system to ensure business adequacy” and “Basic Policies on the Control of the Joint-Stock
Company” under “Current status of the Company” in the Business Report(3) “Consolidated Statements of Changes in Equity” and “Notes to Consolidated Financial Statements” in Consolidated Financial
Statements.
(4) “Non-consolidated Statement of Changes in Shareholders’ Equity” and “Notes to Non-consolidated Financial Statements” inNon-consolidated Financial Statements.
Therefore, the contents described in the document on the matters of Electronic Provisioning Measures are part of theConsolidated Financial Statements and Non-consolidated Financial Statements audited by the independent auditor when
preparing the Independent Auditor’s Report. Furthermore, they are part of the Business Report, Consolidated Financial
Statements and Non-consolidated Financial Statements audited by the Audit & Supervisory Committee in preparing the Audit
Report.

The Company’s Website

https://en.ccbj-holdings.com/
5

On Attending the Virtual-Only General Meeting of Shareholders
This general meeting of shareholders will be held exclusively on the Internet, using the virtual-only
shareholders’ meeting method. Shareholders who wish to participate on the day of the Meeting arerequested to attend the Meeting virtually. See the “Instructions on How to Log In to the Virtual-Only
General Meeting of Shareholders” on the next page.
(1) Date and time:
March 26, 2024 (Tuesday) at 10:00 a.m.
(Log in possible from 9:30 a.m.)
Please note that communication problems, such as distorted images and sound or temporary
disconnections of the livestream, may arise due to the communication environment.
If the Company determines that the impact of such telecommunications failures and other problems
will make it difficult to hold the Ordinary General Meeting of Shareholders, then the Meeting may be
postponed or continued on a later date as described on page 5 of this Notice of Convocation.
In the unlikely event that it becomes difficult to hold this Ordinary General Meeting of Shareholders,the Company will promptly notify shareholders via the Company’s website (https://en.ccbj-holdings.
com/).
Any other changes to the operation of this Ordinary General Meeting of Shareholders will also beannounced on the Company’s website (https://en.ccbj-holdings.com/).
(2) Information required to log in (ID and Password)
In order to view the Meeting, you will need to enter your ID and Password. Please review theenclosed notice. (Refer to the following pages for other required information.)
Log in ID and password
ID
Password
In order to view the Meeting, you will need toenter your ID and Password. Please review theenclosed notice.

6Instructions on How to Log In to the Virtual-Only General Meeting of Shareholders
1. Date and time: March 26, 2024 (Tuesday) at 10:00 a.m.
(Log in possible from 9:30 a.m.)
2. How to log in(1) Use the following URL or QR code to access the livestream site
https://web.lumiagm.com/771179505* Meeting ID: 771-179-505(2) Set the language to “Japanese” or “English”(3) Read the “Notice regarding attendance at the Virtual General Meeting of Shareholders” to theend, check the “I agree to all of the above terms and conditions” box, and click “Accept.”(4) Enter your ID and password : Please review the enclosed notice.
IDs and passwords are different for each shareholder.
If you have lost your enclosed notice, please contact the contact listed in 6.
Please note that we can reissue the “Notice with ID and Password”, but you must apply for it by
5:00 p.m. on Monday, March 18, 2024. Please note that we will not be able to reissue the enclosed
notice or provide a verbal response after the deadline has passed.

Please enter your ID and password described in theenclosed notice.

Log in ID
Log in password[Attend Virtual General Meeting of Shareholders](5) Enter your log in ID and password, and then click “Attend Virtual General Meeting of Shareholders.”
Wait until the start time of March 26, 2024 (Tuesday) at 10:00 a.m.

7Preliminary Arrangements (Submitting Preliminary Questions and Attending by Proxy)
1. Submitting preliminary questions
Questions related to the points on the Meeting Agenda can be submitted in advance. Agenda items
that draw significant interest from shareholders will be addressed at the Ordinary General Meeting of
Shareholders.
To submit questions in advance, refer to the “Instructions on How to Log In to the Virtual-Only General
Meeting of Shareholders” on the previous page and log in during the Period for Accepting Preliminary
Questions indicated below.
After logging in, you can submit questions using the “Preliminary Questions” tab from among the
buttons on the screen.
You may also submit preliminary questions in writing. Write down your preliminary questions and send
them to the postal address given below.
(Period for Accepting Preliminary Questions)
From March 4, 2024 (Monday) at 10:00 a.m. to March 19, 2024 (Tuesday) at 5:45 p.m.
(Postal address)
General Meetings of Shareholders Secretariat
Coca-Cola Bottlers Japan Holdings Inc.
Tokyo Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo 107-6211
2. Attending by proxy
Shareholders who wish to attend the Ordinary General Meeting of Shareholders by proxy arerequested to delegate one (1) other shareholder with voting rights to attend the Meeting inaccordance with laws and ordinances and Articles of Incorporation of the Company.
If you wish to attend the Meeting by proxy, you will need to send a “document verifying the delegationof voting rights (letter of proxy)” or similar document to the Company prior to the Meeting. The
document should be sent to the contact details given below.
If you would like to download a letter of proxy form, see the “Instructions on How to Log In to the
Virtual-Only General Meeting of Shareholders” on the previous page and log in.
After logging in, you can download a letter of proxy form from the “Documents” tab at the far right ofthe buttons at the top of the screen.
(Submission deadline)
The letter of proxy must have reached us by 5:45 p.m. on March 19, 2024 (Tuesday)(Send to)E-mail:BJH_AGM@ccbji.co.jp
Postal address: General Meetings of Shareholders Secretariat
Coca-Cola Bottlers Japan Holdings Inc.
Tokyo Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo 107-6211

8

Important Notes, Etc.

1. Exercising your voting rights(1) How to exercise your voting rights on the day of the Ordinary General Meeting of Shareholders
After logging in to the livestream page on the day of the Meeting, follow the Chairperson’s
instructions and use the “Exercise of Voting Rights” tab to indicate your approval or disapproval of
the agenda items.
(2) Exercising voting rights in advance vs. exercising voting rights on the day of the Ordinary General
Meeting of Shareholders
If a shareholder who has exercised his/her voting rights in writing (by postal mail) or via the Internet,
etc. in advance attends the virtual meeting on the day of the Ordinary General Meeting of
Shareholders, the prior exercise of voting rights will be deemed invalid when the vote on the day isconfirmed.
If you exercise your voting rights in advance and attend the virtual meeting on the day of theOrdinary General Meeting of Shareholders but the Company is unable to confirm your vote on the
day of the Meeting, the Company will treat your prior exercise of voting rights as valid.
2. Questions and motions
Shareholders who attend the Virtual-Only General Meeting of Shareholders may submit questions andmotions online (registration is carried out by entering text on the website designated by theCompany).
Due to the limited time available for questions and to ensure the smooth progression of the
Meeting, we ask that each participant submit no more than three questions, at a length of no morethan 1,000 characters.
Time constraints and other considerations may make it impossible to answer all questions. In that case,meeting organizers will focus on questions that both relate to the Meeting Agenda of the Ordinary
General Meeting of Shareholders and do not overlap with other questions.
Please note that in order to ensure the smooth progression of the Meeting, motions should be limited
to 1,000 characters or less per proposal.
3. Policy on measures to counteract communication failures(1) As a measure to counteract communication failures, the Company will use an IT system that offers ahigh degree of both safety and convenience to shareholders at the time of the Meeting, forexample by using more-than-sufficient capacity.
In addition, the Company will allocate specialized staff capable of responding to communication
failures on the day of the Ordinary General Meeting of Shareholders.
(2) As a measure to counteract communication and other failures, the Company will prepare backup
solutions such as additional connections.
In the event of a communication or other failure, the Meeting will swiftly be moved to such an
additional connection, depending on the severity of the failure.

9(3) To prepare for the event that a communication failure causes a significant disruption in theproceedings, the Company will consult with the Chairperson at the beginning of the Ordinary
General Meeting of Shareholders about a resolution to entrust the Chairperson with the authority
to postpone the Meeting or continue it at a later date.
If, based on such a resolution, the Chairperson decides to postpone or continue the Meeting at alater date, such information will promptly be posted on the Company’s website (https://en.ccbjholdings.com/) to inform shareholders.
(4) In preparation for possible communication failures, etc., the Company has prepared specificresponse scenarios, including policies for responding to communication failures, decision-making
procedures, and the means of informing shareholders.
In the event of a significant communication failure, the Company will respond based on thesescenarios to ensure the smooth operation of the Ordinary General Meeting of Shareholders.
4. Outline of the policy addressing considerations for the interests of shareholders who havedifficulties using the Internet as a means of communication to send and receive information on theagenda of this Ordinary General Meeting of Shareholders
Shareholders who wish to exercise their voting rights but have difficulties using the Internet arerequested to exercise their voting rights in writing in advance.
In addition, shareholders who have difficulties using the Internet will be able to follow the proceedings
by calling the dedicated number for the teleconference system and receiving the audio transmission.
Those who want to use the teleconference system will need to register in advance. Please note thatthe teleconference system will only allow users to listen to the audio transmission and does not enable
the exercise of voting rights. Shareholders who wish to exercise their voting rights are requested to do
so in writing in advance.
Please note that telecommunication charges related to the audio transmission are to be borne by theshareholder.
[How to register to use the teleconference system]
Registrations are accepted by telephone or e-mail.
Those who wish to use the teleconference system should call the telephone number below andrequest to do so, providing shareholder number and name as given on their voting form.
The General Meetings of Shareholders Secretariat will contact them by phone separately to provide
additional details.
Registration period: From March 4, 2024 (Monday) at 10:00 a.m. to March 19, 2024 (Tuesday) at 5:45 p.m.
Telephone:+81 120-245-022 (Virtual-Only General Meeting of Shareholders Help Desk)
E-mail:BJH_AGM@ccbji.co.jp

105. Other notes
Although the Company will take all reasonable precautions to counteract communications disruptions
during the holding of this Ordinary General Meeting of Shareholders, there may be cases where ashareholder is unable to virtually attend the Meeting or exercise their voting rights, etc. due tomalfunctions with the personal computer or smartphone used by the shareholder or disruptions to theshareholder’s Internet connection.
Please note that the Company shall not be liable for any disadvantages incurred by shareholders as aresult of such communication problems.
Please refrain from filming, recording, archiving, or posting the content of the livestream on social
media or elsewhere.
This Ordinary General Meeting of Shareholders will be livestreamed in both Japanese and English.
Shareholders will be able to switch between Japanese and English on the livestream by listening tosimultaneously interpreted audio.
Shareholders will be responsible for all expenses and telecommunications equipment necessary toattend the meeting.
The recommended environments for attending the Virtual-Only General Meeting of Shareholders are as follows.
ComputerSmartphone

Windows

Mac

AndroidiOS

OS

Windows 11
Windows 10

Latest version ofmacOS

Android 5 or higher

iOS11 or higher

Browser

Microsoft Edge
Google Chrome
Mozilla Firefox

Safari

ChromeSafari* Use the latest version of your browser.
* A stable internet connection with a minimum speed of 1 Mbps is required. A high-speed Internet
connection of at least 5 Mbps is recommended for streaming high-quality video.
6. Contact
For inquiries regarding attendance at this Ordinary General Meeting of Shareholders, information
on how to ask questions, the system for exercising voting rights, etc.
Virtual-Only General Meeting of Shareholders Help Desk Telephone Number: +81 120-245-022<<Office Hours>>
9:00 a.m. to 5:00 p.m. on weekdays between March 4, 2024 (Monday) and March 25, 2024 (Monday)* Closed on Saturdays, Sundays, and holidays
From 9:00 a.m. until the end of the livestream on the day of the Ordinary General Meeting of Shareholders
Inquiries about re-issuance of “Notice of ID / Passward” required for log in
Sumitomo Mitsui Trust Bank Virtual General Meeting of Shareholders Support Number: +81 120-782-041<<Office Hours>>
9:00 a.m. to 5:00 p.m. on weekdays between March 4, 2024 (Monday) and March 25, 2024 (Monday)* Closed on Saturdays, Sundays, and holidays
From 9:00 a.m. until the end of the livestream on the day of the Ordinary General Meeting of Shareholders

11Reference Materials for General Meeting of Shareholders
Proposal No. 1:

Appropriation of surplus

We place the highest priority on paying stable dividends and thus propose the appropriation of surplus as described below.
Year-end dividends

	Type of assets to be
distributed

Cash	Allotment of assets tobe distributed and thetotal amount

We propose to pay 25 yen per share of the Company’s common stock.
In this case, the dividends will total 4,562,111,025 yen.
As a result, including interim dividends, annual dividends per share will be
50 yen per share.

 ffective date of theEdividends of surplus

We propose March 28, 2024 as the effective date of the dividends ofsurplus.

Reference

Interim

Dividends
50

50

25

25

Year-end

(Yen)

50
25
(Forecast)

25

25

25

FY2021

FY2022

FY2023

Dividend Policy
Regarding dividends, the Company sets its basic policy to carry out active redistribution of profits while placing thehighest priority on paying stable dividends, by comprehensively reviewing the Company’s business performance andlevel of retained earnings. The Company has set a payout ratio target of 30% or more of net profit for the year attributableto owners of the parent and pays interim and year-end dividends of surplus.

12

Proposal No. 2:

Election of five (5) Directors (excluding Directors serving on the Audit
and Supervisory Committee)

All five (5) Directors (excluding Directors serving on the Audit and Supervisory Committee) will complete their terms at theend of this Ordinary General Meeting of Shareholders.
Therefore, we would like to request the election of five (5) Directors (excluding Directors serving on the Audit andSupervisory Committee).
The candidates for Directors (excluding Directors serving on the Audit and Supervisory Committee) are as follows:
No.

Name

Current Position and Responsibility in the Company
Position
Responsibility

Attributes

1

Calin Dragan

Reelection

Representative
Director

President

2

Bjorn Ivar Ulgenes

Reelection

Representative
Director

Vice President
Chief Financial Officer(Head of Finance)

3

Hiroko Wada

Reelection

OutsideIndependent

Outside Director–

4

Hirokazu Yamura

Reelection

OutsideIndependent

Outside Director–

5

Celso Guiotoko

Reelection

OutsideIndependent

Outside Director–

Reference: Guidelines and Procedures for the Nomination of Candidates for Directors● In nominating Internal Director candidates for the Company, the Company’s Board of Directors makes decisions byappropriately evaluating the degree of their contribution and future potential, etc. based on the Company’s evaluation
system from an independent and objective perspective.
● In nominating Outside Director candidates, the Company’s Board of Directors nominates those who are deemed likely tomake a significant contribution to enhancing the Company’s corporate value from an independent and objective perspective.
● In addition, in nominating candidates for Directors who will be Audit and Supervisory Committee members, the Company
makes sure that it nominates at least one (1) candidate who has appropriate knowledge of finance and accounting.
● As for the current procedures for nominating Director candidates, the report of the Audit and Supervisory Committee thatconsists of only Outside Directors, half of whom are Independent Outside Directors, is respected, and decisions are madeby the Board of Directors, the majority of whom are constituted by Independent Outside Directors. Thus, the Company
believes that transparency and fairness are ensured.

13

Candidate

No. 1 Calin Dragan

Reelection

Date of birth: October 24, 1966, 57 years old

Relationship of special
interest in the Company

None

No. of Company Shares
Owned

Attendance at Board of
Directors meetings*As of December 31, 2023

*Attendance rate: 100%

8,332

8/8

Brief Personal Profile, Position and Responsibility in the Company, and Significant Concurrent Positions
June
January
January
July
March
July
May
January
MarchJanuary

1993 Joined Coca-Cola Leventis
2000 Joined Coca-Cola Hellenic Bottling Company S.A.
2005 General Manager and Administrator in charge of Romania and Mordovian Republic,
Coca-Cola Hellenic Bottling Company S.A.
2011 Executive Corporate Officer, Coca-Cola West Co., Ltd.
2012 Representative Director, Coca-Cola West Co., Ltd.
Vice President, Coca-Cola West Co., Ltd.
2013 Representative Director & President, Coca-Cola East Japan Co., Ltd.
2017 Regional Director, The Coca-Cola Company Bottling Investments GroupRegional Director, Coca-Cola Far East Limited
2018 President, The Coca-Cola Company Bottling Investments Group2019 Executive Officer, Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer, Coca-Cola Bottlers Japan Inc.
Representative Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
President, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Representative Director, Coca-Cola Bottlers Japan Inc. (incumbent)
President, Coca-Cola Bottlers Japan Inc.
2022 President & Chief Executive Officer, Coca-Cola Bottlers Japan Inc. (incumbent)
Significant Concurrent Positions
Representative Director, President & Chief Executive Officer, Coca-Cola Bottlers Japan Inc.

Reasons for nomination as candidate for Director
The Company requests the election of Calin Dragan as a Director because of his considerable experience as theRepresentative Director & President of Coca-Cola Bottling companies within Japan and gained at The Coca-Cola
Company, his global business knowledge of Coca-Cola business operations, and how he has exercised leadership in his
present position as a Senior General Manager of Business of the Company and Group, to utilize his ability andexperience, etc. in the management of the Group.

14

Candidate

No. 2 Bjorn Ivar Ulgenes Reelection
Date of birth: April 5, 1968, 55 years old

Relationship of special
interest in the Company

None

No. of Company Shares
Owned

Attendance at Board of
Directors meetings*As of December 31, 2023

*Attendance rate: 100%

3,332

8/8

Brief Personal Profile, Position and Responsibility in the Company, and Significant Concurrent Positions
July
AugustMay

1997 Joined The Coca-Cola Company
2005 Finance Director, North & West Africa Business Unit, The Coca-Cola Company
2008 Finance Director & Executive Assistant to the Business Unit President, North & West Africa Business
Unit, The Coca-Cola Company
June2009 GM Innovation & EA, North & West Africa Business Unit, The Coca-Cola Company
February 2010 Senior Vice President Finance, The Coca-Cola (Japan) Co., Ltd.
January
2013 Finance Director, Central, East & West Africa Group, The Coca-Cola Company
April2016 Deputy Finance Director, Europe, Middle East & Africa (EMEA) Group, The Coca-Cola Company
October
2018 Senior Executive Officer, Head of Finance, Coca-Cola Bottlers Japan Holdings Inc.
Senior Executive Officer, Head of Finance, Coca-Cola Bottlers Japan Inc.
November 2018 Representative Director & President, Coca-Cola Bottlers Japan Sales Support Inc.
January
2019 Representative Director & President, Coca-Cola Bottlers Japan Business Services Inc.
February 2019 Executive Officer, Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer, Coca-Cola Bottlers Japan Inc.
March
2019 Representative Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Vice President, Chief Financial Officer (Head of Finance), Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
Representative Director, Coca-Cola Bottlers Japan Inc. (incumbent)
Vice President, Chief Financial Officer (Head of Finance), Coca-Cola Bottlers Japan Inc.
December 2019 Representative Director & Chairman, Q’SAI CO., LTD.
January2022 Vice President & Chief Financial Officer and Head of Finance, Coca-Cola Bottlers Japan Inc. (incumbent)March2022 Representative Director & Chairman, Coca-Cola Bottlers Japan Business Services Inc.
November 2022 Representative Director, Chairman and President, Coca-Cola Bottlers Japan Business Services Inc.
(incumbent)
January2024 Representative Director, NeoArc Inc. (incumbent)
Significant Concurrent Positions
Representative Director, Vice President, Chief Financial Officer and Head of Finance, Coca-Cola Bottlers Japan Inc.
Representative Director, Chairman and President of Coca-Cola Bottlers Japan Business Service Inc.
Representative Director, NeoArc Inc.
Reasons for nomination as candidate for Director
The Company requests the election of Bjorn Ivar Ulgenes as a Director because of his considerable experience as theRepresentative Director, Vice President, Chief Financial Officer (Head of Finance) of the Company and gained at The
Coca-Cola Company, his global business knowledge of Coca-Cola business operations, and because of how he has
exercised leadership in his present position as a Senior General Manager of Business of the Company and Group, toutilize his ability and experience, etc. in the management of the Group.

15

Candidate

No. 3 Hiroko Wada

Reelection
OutsideDate of birth: May 4, 1952, 71 years old

Relationship of special
interest in the Company

None

Independent

No. of Company Shares
Owned

Attendance at Board of
Directors meetings*As of December 31, 2023

*Attendance rate: 100%-

8/8

Brief Personal Profile, Position and Responsibility in the Company, and Significant Concurrent Positions
April
1977
January
1998
March
2001
April
2004
November 2004
May
2009
June
2016
March
2019

Joined Procter & Gamble Sunhome Co., Ltd.
Vice President, In charge of Corporate New Ventures, Asia, The Procter & Gamble Company (U.S.)
Representative Director & President, Dyson Ltd.
Representative Director, President & COO, Toys”R”Us-Japan, Ltd.
Representative, Office WaDa (incumbent)
Outside Director, Aderans Holdings Co., Ltd.
Outside Director, Shimadzu Corporation (incumbent)
Outside Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Outside Director (Audit & Supervisory Committee Member), Unicharm Corporation
Significant Concurrent Positions
Representative, Office WaDa
Outside Director, Shimadzu Corporation

Reasons for nomination as candidate for Outside Director and overview of expected roles
The Company requests the election of Hiroko Wada as a Director (Outside Director) in the expectation that she will
utilize, for the management of the Company, the considerable experience and global knowledge she has gained thus far
as officer at The Procter & Gamble Company and as Representative Director at Dyson Ltd. and Toys”R”Us-Japan Ltd.

16

Candidate

No. 4 Hirokazu Yamura
Date of birth: September 28, 1977, 46 years old

Relationship of special
interest in the Company

Hirokazu Yamura is
Representative Director &President of Michinoku
Coca-Cola Bottling Co., Ltd.
The Company has business
relations in product trading,etc. with Michinoku CocaCola Bottling Co., Ltd. (Sales
etc. 0.5% of the Company’s
net sales; Purchases etc. 1.9%of the net revenues ofMichinoku Coca-Cola
Bottling Co., Ltd.)

No. of Company Shares
Owned

Reelection
OutsideIndependent

Attendance at Board of
Directors meetings-

8/8*As of December 31, 2023

*Attendance rate: 100%

Brief Personal Profile, Position and Responsibility in the Company, and Significant Concurrent Positions
October
February
March
March
March
March

2006
2009
2012
2013
2014
2020

Joined Michinoku Coca-Cola Bottling Co., Ltd.
Director, Michinoku Coca-Cola Bottling Co., Ltd.
Managing Director, Michinoku Coca-Cola Bottling Co., Ltd.
Senior Managing Director, Michinoku Coca-Cola Bottling Co., Ltd.
Representative Director & President, Michinoku Coca-Cola Bottling Co., Ltd. (incumbent)
Outside Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Significant Concurrent Positions
Representative Director & President, Michinoku Coca-Cola Bottling Co., Ltd.

Reasons for nomination as candidate for Outside Director and overview of expected roles
The Company requests the election of Hirokazu Yamura as a Director (Outside Director) in expectation that he will
utilize, for the management of the Company, the considerable experience and knowledge he has gained in management
and as Representative Director & President at Michinoku Coca-Cola Bottling Co., Ltd.

17

Candidate

No. 5 Celso Guiotoko

Reelection
OutsideDate of birth: January 3, 1959, 65 years old

Relationship of special
interest in the Company

None

Independent

No. of Company Shares
Owned

Attendance at Board of
Directors meetings*As of December 31, 2023

*Attendance rate: 100%-

8/8

Brief Personal Profile, Position and Responsibility in the Company, and Significant Concurrent Positions
December 1983
January
1985
March
1996
December 1997
May
2004
April
2006
April
2014
June
2017
March
2019
March
March
January

Joined Banco Bradesco SA
Senior Manager, Arthur Andersen (Accenture)
System Director, Toshiba America Electronic Components, Inc.
Solution Service Vice President, i2 Technologies Japan, Inc.
Vice President & CIO (Chief Information Officer), Nissan Motor Co., Ltd.
Corporate Vice President & CIO, Nissan Motor Co., Ltd.
Senior Corporate Vice President & CIO, Nissan Motor Co., Ltd.
Statutory Auditor, Nissan Motor Co., Ltd.
Outside Director (Audit & Supervisory Committee Member), Coca-Cola Bottlers Japan Holdings Inc.
Executive Officer and Global Chief Digital Officer, Nishimoto Co., Ltd.
2020 Director and Global Chief Digital Officer, Nishimoto Co., Ltd.
2023 Outside Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Senior Advisor, Nishimoto Co., Ltd. (incumbent)
2024 Director, NeoArc Inc. (incumbent)
Significant Concurrent Positions
Director, NeoArc Inc.
Senior Advisor, Nishimoto Co., Ltd.

Reasons for nomination as candidate for Outside Director
The Company requests the election of Celso Guiotoko as a Director (Outside Director) in the expectation that he will
utilize, for the management of the Company, the considerable experience and global knowledge he has gained thus far at
Nissan Motor Co., Ltd. (“Nissan”) as well as Nishimoto Co., Ltd.

18

Notes:1. Company names listed in the personal profile reflect business names at time of employment.
2.	The Company has entered into officers’ liability insurance agreements with Calin Dragan, Bjorn Ivar Ulgenes, Hiroko Wada, Hirokazu
Yamura and Celso Guiotoko as insureds, whose insurance premiums are fully borne by the Company, and if their elections are approved,
said agreements shall be renewed. The agreement will outline that, in the event of a claim for damages by a shareholder, the Company, an
employee or another third party during the insurance period arising from an act done by the insureds in relation to their work as theCompany’s officers, such compensation for damages and legal expenses, etc. shall be compensated.
3.	The Company has entered into agreements for limitation of liability with Hiroko Wada, Hirokazu Yamura and Celso Guiotoko, and if theirelections are approved, said agreements shall remain in effect. The agreement will outline that in cases where the Directors (excluding
Executive Directors, etc.) have caused damages to the Company due to non-performance of their duties and yet they are bona fide andthere is no gross negligence from them in performing their duties, they shall be liable for the damages to the limit of minimum liability set
forth in Article 425, Paragraph 1 of the Companies Act.
4.	Hiroko Wada, Hirokazu Yamura and Celso Guiotoko are candidates for Outside Director.
(1)	Shimadzu Corporation, for which Hiroko Wada serves as an Outside Director, announced that its subsidiary Shimadzu Medical Systems
Corporation had been found to have engaged in inappropriate conduct related to maintenance and inspection services for X-ray
equipment installed at medical institutions with which the company does business in September 2022. In February 2023, the Company
announced that it would promptly formulate and implement specific measures to prevent recurrence, based on an analysis of the causes
and recommendations regarding the measures to prevent recurrence from an external investigation committee. Subsequently, in August
2023, the Company announced that the Kyushu Branch Kumamoto Office of Shimadzu Medical Systems Corporation had received abusiness improvement order from Kumamoto Prefecture.
			 Hiroko Wada has fulfilled her responsibilities such as by providing regular suggestions from the standpoint of legal compliance at theBoard of Directors meetings, etc. In addition, after becoming aware of these problems, she has fulfilled her responsibilities such as byproviding suggestions of ensuring legal compliance and making recommendations as appropriate for efforts to prevent recurrence.
(2)	Celso Guiotoko will assume the Senior Managing Executive Officer, Chief Information Officer and Chief Information Security Officer
of JERA Co., Inc., effective April 1, 2024.
(3)	Hiroko Wada, Hirokazu Yamura and Celso Guiotoko are incumbent Outside Directors of the Company. At the conclusion of this
General Meeting of Shareholders, Hiroko Wada and Celso Guiotoko have assumed the office as Outside Director for five (5) years, andHirokazu Yamura has assumed the office as Outside Director for four (4) years.
(4) The Company has submitted a notice to Tokyo Stock Exchange, Inc., on which the Company is listed, that Hiroko Wada, Hirokazu
Yamura and Celso Guiotoko are “Independent Directors” in accordance with the rules, etc. of the said securities exchange. If theirelections are approved, they will continue to be Independent Directors.

19

<Reference> Skill Matrix- If proposals No. 2 is approved and resolved as originally proposed, the attributes, expertise and experience of the members constituting theCompany’s Board of Directors are as stated below. The Company believes that its Board of Directors has necessary skills as a whole.
- The Skill Matrix does not represent all the skills possessed by each candidate for Director.

Attributes ofmembers
constituting theBoard of Directors

Executive
Directors

OutsideDirectors

Independent
Outside Directors

Outside Directors
in the Audit andSupervisory Committee

Female Directors

Nationalities

2

7

5

4

3

6

22%

78%

56%

100%

33%

Name

Current Status andResponsibility, etc. in the
Company

Calin Dragan

Representative Director &President

Bjorn Ivar Ulgenes

Representative Director,
Vice President, Chief
Financial Officer(Head of Finance)

Hiroko Wada

Outside Director(Independent Officer)

Hirokazu Yamura

Outside Director(Independent Officer)

Celso Guiotoko

Outside Director(Independent Officer)

Hiroshi Yoshioka

Nami Hamada

Stacy Apter
Sanket Ray

70’s
22%
60’s
11%

Age

59

40’s
11%

50’s
56%

Expertise
Corporate
Management

Global BusinessOutside Director(Audit and Supervisory
Committee member)(Independent Officer)
Outside Director(Audit and Supervisory
Committee member)(Independent Officer)
Outside Director(Audit and Supervisory
Committee member)
Outside Director(Audit and Supervisory
Committee member)

20

Food andFinance / Audit
Beverage Industry

Sustainability /CSVReference: Criteria for Directors’ Skills- The Company shall make decisions on the expertise and experiences of Directors based on the following criteria.
Category
Corporate Management
Global Business
Food and Beverage Industry
Finance / Audit
Sustainability / CSVApplicable Criteria for Expertise to be Indicated byin the Above Chart- A person who has experience as a Representative (CEO, etc.) or a Chief Operating Officer (COO, etc.).
- A person who has knowledge in global business as a person holding a managerial position equivalent to or higher than Department Manager
or a person who has similar knowledge thereto.
- A person who has experience holding a position equivalent to or higher than Department Manager at a company handling food and beverage
or a person who has knowledge similar thereto.
- A person who has experience holding a position equivalent to or higher than Department Manager in a Finance and Accounting Department,
or a person who has knowledge similar thereto.
- A person who has a national qualification for finance or accounting, etc., such as a certified public accountant.
- A person who has experience holding a position equivalent to or higher than Department Manager of Sustainability or CSV Department, or aperson who has knowledge similar thereto.

21

Business Report(From January 1 to December 31, 2023)

1. Current Status of the Coca-Cola Bottlers Japan Group(1) Business Progress and 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, wehave 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 andlogistics 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% or higher
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.

22

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 and expand
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.

23

<Reference>
Business income(loss) is measure of our recurring business performance. Business income (loss) deduct cost of sales andselling, general and administrative expenses from revenue, and includes other income and expenses which we believe arerecurring in nature. The corresponding figures for operating income (loss) are as follows.
Sales volume in 2022 is revised retroactively due to changes of counting segmentation and scope in certain products.
FY2022
Revenue
Sales volume
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)(Millions of yen)
(Million case)(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)
(Millions of yen)

807,430478
351,755
365,295
974
1,924
46
(14,443)
8,338
5,408
(11,513)

FY2023
868,581492
384,216
381,022
728
1,890
(7)
2,025
4,429
3,012
3,441

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 in prioryear period). 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.

24

Consolidated operating income improved by 14,954million yen and was 3,441 million yen (11,513 million yen loss in prioryear period). In addition to business income growing versus the previous year being the primary reason, there was a cycling
impact of gains from Government subsidies for temporary leave recorded in the previous year which lowered other income(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 (non-recurring)
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 theprior year period and was 1,871 million yen (8,070 million yen loss in prior year period).

25

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 by morethan 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
to capturing 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 withthe price revisions. 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 from the third quarter onwards resulting in a 5% increase in sales volume for the full year. In retail & food, sales
volume increased by 10% with the traffic returning to restaurants and amusement facilities. In online, volume grew by 12%26despite the intensifying 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
at vending and restaurants with the recovery in traffic, and contributions from product renewals such as Sprite. Sales volumeof tea 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%27

(2) Status of Capital Investment
Total capital investment undertaken during this consolidated fiscal year amounted to 3.4 billion yen, which was mainly
undertaken for the following elements, all of which were related to the beverage business:a. Acquisition of vending machines, coolers, and other sales equipmentb. Acquisition of equipment to improve manufacturing efficiency and new products correspond(3) Financial Activities
Not applicable.
(4) Trend of Assets and Earnings
Item

FY2020

FY2021

FY2022

FY2023

IFRS

IFRS

IFRS

IFRS

Revenue(MM yen)791,956

785,837

807,430

868,581Business income (loss)(MM yen)169(14,662)(14,443)2,025

Operating income(loss)(MM yen)(11,722)(20,971)(11,513)

3,441

Net income(loss) attributable to owners of the parent (MM yen)

(4,715)(2,503)(8,070)1,871

Earnings(losses) per share(yen)(26.29)(13.96)(45.00)10.43(MM yen)939,603

867,111826,737

844,832

Total assets

Equity attributable to parent owners (MM yen)

501,643492,320476,216

469,847

Equity attributable to parent owners per share (yen)2,797.03

2,745.12

2,655.38

2,618.49

Notes:
1.	Earnings(loss) per share is calculated based on the average number of shares issued during the year while equity attributable to parent owners per
share is calculated based on the total number of shares issued as of the end of the fiscal year (excluding treasury shares).
2.	In the current fiscal year, we have introduced Executive reward BIP Trust and Stock-granting ESOP Trust, and the Company shares held by the trust
are included in the treasury share to be deducted from the number of average shares and end of years’ shares during the period for the purpose of
calculating the amount of earnings(losses) per share and equity attributable to parent owners per share.

(5) Acquisition or Disposal of Shares, Other Equity, or Stock Acquisition Rights, etc. of Other Companies
Not applicable.

28(6) Issues to be address
Regarding outlook for the total domestic NARTD beverage market, although the increase in traffic is expected to continue tocontribute to an increase in demand for beverages, the market will be affected by the cycling of the heat wave in 2023 and a
decline in consumer sentiment due to domestic inflation, including price revisions for beverages, we expect a slight decrease
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 costpressures, 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 and strengthening strategic
partnerships with key customers. Regarding initiatives by channel, in the important vending channel, we will continue to pushahead 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 in technology foundation that will leadto future growth. In the over the counter channel, we will implement initiatives tailored to the industry and characteristics of ourcustomers, 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 January292024, we implemented a reorganization centered on these three channels, with the aim of speeding up decision-making andimproving the driving force of each channel’s growth strategy in the commercial organization. In addition, as a strong partnershipthat will drive growth, we will continue to strengthen our partnership 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.
[Completion Ceremony of Ebina Plant Line No.5][Establishment of “NeoArc Inc.” : Promoting Data-Driven Management](Kick-off held for the establishment of the new joint venture company)

30

TOPICS

Excellent ESG initiatives

Selected as a component of DJSI Asia Pacific
We have been selected as a component of the Dow Jones Sustainability Indices (DJSI) for the Asia Pacific region for the sixth
consecutive year. The DJSI is a world-renowned ESG (Environment, Society, and Governance) investment index.
In 2023, 156 companies (75 of which were from Japan), including our company, were selected out of some 600 major companies
in the region. We received high scores in the Environmental Policy & Management System, Initiatives for
Water, etc. We are committed to evolving CSR in line with ISO26000 standards for organizational social responsibilities. We center Creating Shared Value (CSV) as the core of our business to fulfill both businessgrowth and social sustainability as a single objective. We work to solve social issues with specific actionplans under three Sustainability Frameworks, “Inclusion”, “Communities”, and “Resources”, which has led
us to be selected for DJSI Asia Pacific.

Received the highest rating of Gold in PRIDE Index 2023
for three consecutive years and Rainbow for two consecutive years
Won the Special Company Award in Forbes JAPAN WOMEN AWARD 2023
In November 2023, we received the highest rating of Gold in the PRIDE Index 2023 for three consecutive years
for our LGBTQ efforts. We also won the Rainbow award for two consecutive years in recognition of our cross-sectoral collaboration in promoting the understanding and advocacy of LGBTQ.
At the same time, we received the Special Company Award in Forbes JAPAN WOMEN AWARD 2023, the largest women’s award in Japan, for holding “awareness-raising sessions” for 260 managers engaged in our vending
machine channel.
We have actively made various efforts to address diversity and gender equality as one of our key business challenges. We are determined to further promote the understanding of LGBTQ+ and the empowerment of women
through enlightenment opportunities insideand outside the company in efforts to respect the individuality of each employee andcontinue to create innovation by actively
building on diverse value and ideas.

31

The first phase of “Connecting with Life!
The “Myaku-myaku-ikimono Quest !” - a joint project
for Osaka Kansai Expo Pavilion produced by Shoji Kawamori
The first phase of the joint project, “Connecting with Life! The “Myaku-myaku-ikimono Quest” for the 2025 Japan International Expo, will run until the end of March, 2024.
This project is held jointly with citizens and offers an opportunity to observe and learn about biodiversity throughthe use of “Biome”, an app of a collection of living things provided by Biome Inc. In the project, the three partnercompanies of the pavilion produced by Mr. Shoji Kawamori (our company, Toppan Holdings Inc., and Kura Sushi Inc.)
provide their own unique quests on Biomein relation to their business activities. Anyone can participate free of charge in thisproject that presents information about the
habitats of living creatures and offers enjoyment for both adults and children while
contributing to Nature Positive - the restoration of biodiversity.

32

TOPICS

Contribution to Local Communities

Osaka Kansai Expo
Toward the EXPO 2025 OSAKA, KANSAI, JAPAN (hereinafter, Osaka
Kansai Expo), Coca-Cola Bottlers Japan Inc. aims to contribute tocreating momentum for the event.
In April 2022, it was decided that CCBJI will be a Gold Partner
sponsor of the Signature Pavilion, a themed project for Osaka Kansai
Expo. Furthermore, in July 2022, we began rolling out Expo 2025
Osaka, Kansai, Japan Support Vending Machines. Starting with the
installation of the first unit at the Osaka International Convention
Center (Gran Cube Osaka), the number of units installed has exceeded
500 as of the end of December.
A share of proceeds from this machine will be donated to the Japan
Association for the 2025 World Exposition. Donations will support
various momentum-building activities leading up to the start of the
Expo. This way we hope to bring excitement to the event together withour customers through their drink purchases.
We will continue to implement measures that only the Coca-Colasystem can provide.

The first Expo 2025 Osaka, Kansai, Japan Support Vending
Machine (Osaka International Convention Center)

Expo 2025 Osaka, Kansai, Japan Support Vending
Machine in new wrapping design (Expo ’70 Pavilion
at Expo ’70 Commemorative Park)

Coca-Cola Bottlers Japan Ebino Plant Resumes Plant Tours
On December 2, 2020, CCBJI Ebino Plant (Ebino City,
Miyazaki Prefecture) resumed its plant tours for the firsttime in two years and nine months. The plant began its
plant tours in March 2006, and many visitors, including
local residents of Ebino City, have visited the plant.
However, in order to prevent the spread of COVID-19, theplant tours were suspended from the end of February
2020. Ebino Plant resumed the tours for the following
reasons: The vaccination environment has been put inplace nationwide, the plant is located in Ebino City,
Miyazaki Prefecture, which has relatively few cases ofinfection, and the plant and plant tour facilities are in
separate buildings.

Coca-Cola Bottlers Japan Ebino Plant

33

TOPICS

Environmental Initiatives

Coca-Cola Bottlers Japan Begins CAN to CAN, the Horizontal Recycling of Aluminum Cans
In cooperation with partner companies, Coca-Cola Bottlers Japan Inc. began CAN to CAN, horizontal recyclingof aluminum cans. This initiative is to recycle used aluminum cans collected from recycling boxes next tovending machines managed and operated by CCBJI as containers for can products. Our three products,
Georgia Kaoru Black 400ml, Georgia Kaoru Bito 370ml, and Bonaqua (Nansui) 400ml, which use 100% recycled
aluminum materials including CAN to CAN for the bottle can body, are available from January 2023.
Can products made from 100% recycled aluminum materials are expected to reduce CO2 emissions per can
by approximately 25% compared to aluminum bottles made from virgin ingots, while also maintaining existing
standards for opening and sealing performance. We plans to gradually expand the areas for collecting usedaluminum cans and increase the volume of collected cans to 9,000 tons per year.
With CAN to CAN, the horizontal recycling of aluminum cans, we willcontribute to the promotion of recycling aluminumcans and the reduction of CO2 emissions in Japan.
Outsourced sortingand processing

Raw material
supplyRecycling bin next to
Coca-Cola vending machineIntermediate
Treatment
ProviderUsed aluminum cans arecollected by our company

Press processing ofused aluminum cans

Shinryo Aluminum
Techno Corporation
Collection CenterCollecting pressed
used aluminum cans

MA Aluminum
Manufacture of aluminum
coils from pressed usedaluminum cans

ALTEMIRA
Manufacture Aluminum
Bottles for Beverages

Coca-Cola
Company Plants
Re-processed with
100% recycled
aluminum bottle cans

Vending
Machines andVending Stores
Product Sales

Biodiversity: Coca-Cola Bottlers Japan Joins the 30
by 30 Alliance and TNFD Forum
From July 2022, Coca-Cola Bottlers Japan Inc. joined the “30 by 30 Alliance for Biodiversity” established by
17 industry, private, and public organizations, including the Ministry of the Environment.
We have been engaged in various forest maintenance activities to preserve the water sources in all of our
17 plant areas, achieving over 353% water replenishment rate to return water to nature (actual rate in 2021). We
entered into agreements with local forestry cooperatives and work on activities to bring out the multifunctional
aspect of forests to the fullest. Through such efforts in forest maintenance and our participation in the Alliance,
we will also contribute to the conservation of biodiversity.
And in December 2022, endorsing the initiatives of the Taskforce on Nature-related Financial Disclosures(TNFD), we also joined the TNFD Forum.
CCBJI’s environmental policies define one of our important missions as “using water and other natural
resources that are indispensable for our business activities effectively.” Another important policy is passing the
global environment on to the coming generations in a sustainable manner. Through our participation in thisforum, CCBJI will strengthen our efforts to sustain biodiversity and contribute to the achievement of the
Sustainable Development Goals (SDGs) in our business areas, and aim to realize a sustainable society.

34

(7) Status of Significant Subsidiaries (As of December 31, 2023)
Paid-in
Capital

Names

Percentage of
Voting Rights

Unit: MM yen

Main Businesses

Unit: %

Coca-Cola Bottlers Japan Inc.

100

100.0

FV Japan Co., Ltd.

100

100.0

Coca-Cola Bottlers Japan Vending Inc.

80

100.0

Coca-Cola Bottlers Japan Business Services Inc.

80

100.0

Manufacturing and sales of beverage andfood products
Sales of beverage and food products
Operation of vending machines
Office work related to sales of beverageand food products

Notes:
1. The percentage of voting rights includes the portion of indirect holdings via subsidiaries
2. The status of the Specified Wholly Owned Subsidiary of the Company is as follows as of December 31, 2023:

Name of Specified Wholly Owned Subsidiary

Coca-Cola Bottlers Japan Inc.

Address of Specified Wholly Owned Subsidiary9-7-1, Akasaka, Minato-ku, Tokyo
Book value of shares of Specified Wholly Owned Subsidiary of the Company
342,561 million yen
or Wholly Owned Subsidiary thereof
Total assets of the Company
498,355 million yen(8) Main Business (As of December 31, 2023)
Our Group operates the following businesses:
Beverage BusinessOur group manufactures and sells Coca-Cola, soft drinks, and other beverage products.
The Company has contracts with The Coca-Cola Company and Coca-Cola (Japan) Company that govern the production
and sales of Coca-Cola and other products and the use of trademarks.
Names of segments
Beverage Business

Description
Manufacturing and sales of beverage products, the vending machine-related business, theprocurement of raw materials and materials, the development, maintenance, andoperations of information systems.

35

(9) Major Locations, etc. (As of December 31, 2023)
a. Location of the Company
Headquarters: 9-7-1 Akasaka, Minato-ku, Tokyo
b. Locations of headquarters offices of major subsidiaries:
Names

Locations

Coca-Cola Bottlers Japan Inc.

Minato-ku, TokyoFV Japan Co., Ltd.

Toshima-ku, Tokyo

Coca-Cola Bottlers Japan Vending Inc.

Shinjuku-ku, Tokyo

Coca-Cola Bottlers Japan Business Services Inc.

Minato-ku, Tokyo

c. Major production bases
Beverage business
Zao Plant (Miyagi), Ibaraki Plant (Ibaraki), Iwatsuki Plant (Saitama), Saitama Plant (Saitama), Tama Plant (Tokyo),
Ebina Plant (Kanagawa), Hakushu Plant (Yamanashi),
Tokai Plant (Aichi), Kyoto Plant (Kyoto), Akashi Plant (Hyogo), Daisen Plant (Tottori), Hiroshima Plant (Hiroshima),
Komatsu Plant (Ehime), Kiyama Plant (Saga), Tosu Plant (Saga), Kumamoto Plant (Kumamoto), Ebino Plant(Miyazaki)d. Sales bases
Beverage business
A variety of locations in 38 prefectures within Southern Tohoku, Kanto, Koshinetsu, Chubu, Kinki, Chugoku, Shikoku
and Kyushu areas(10) Status of Employees (As of December 31, 2023)
Names of segments

Number of employees

Beverage businessYear-on-year change

14,010Note: The number of employees above shows the number of persons on active service activity.

(11) Major Financial Institutions Providing Loans to the Company (As of December 31, 2023)
Names of institutions

Amount of loans

MUFG Bank, Ltd.

3,688 million yen

Sumitomo Mitsui Banking Corporation

2,312 million yen

36

474 decrease2. Current Status of the Company(1) Status of Shares (As of December 31, 2023)
a. Total number of authorized shares: 500,000 thousandb. Total number of issued shares: 179,434 thousand
Note: The treasury shares (23,784 thousand shares) are excluded from the total number of issued shares. Also, the Company shares held by
Executive reward BIP Trust (1,261 thousand shares) and Stock-granting ESOP Trust(1,789 thousand shares) are excluded from the total
number of issued shares.

c. Number of shareholders: 67,097
d. Major shareholders (top 10)
Number ofshares held

Names of shareholders(Unit: thousand)Ratio ofshareholding(Unit: %)Coca-Cola (Japan) Co., Ltd.

27,956

15.32

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

21,163

11.60

GOLDMAN SACHS INTERNATIONAL

7,282

3.99

Custody Bank of Japan, Ltd. (Trust Account)

6,895

3.78

Ichimura Foundation for New Technology

5,295

2.90

J.P. Morgan

4,734

2.59

Satsuma Shuzo Co., Ltd.

4,406

2.41

Senshusha Co., Ltd.

4,088

2.24

Coca-Cola Holdings West Japan Inc.

4,075

2.23

Mitsubishi Heavy Industries Machinery Systems, Ltd.

3,912

2.14

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(1,261 thousand shares)
are and Stock-granting ESOP Trust(1,789 thousand shares).

(2) Shares issued to corporate officers as compensation for the execution of their duties during the fiscal year (as ofDecember 31, 2023)
Not applicable.

373. Company’s Officers(1) Status of the Company’s Officers
a. Status of Directors (As of December 31, 2023)
Position
Representative
Director
Representative
Director

Name
Calin Dragan
Bjorn Ivar Ulgenes

Director

Hiroko Wada

Director

Hirokazu Yamura

Director
Director (Audit &Supervisory
Committee Member)
Director (Audit &Supervisory
Committee Member)

Celso Guiotoko
Hiroshi Yoshioka

Director (Audit &Supervisory
Committee Member)
Director (Audit &Supervisory
Committee Member)

Stacy Apter

Nami Hamada

Sanket Ray

Areas of responsibility and important concurrent positions
President
Representative Director, President and CEO, Coca-Cola Bottlers Japan Inc.
Vice President and Chief Financial Officer (Head of Finance)
Representative Director, Vice President, CFO, and Head of Finance ofCoca-Cola Bottlers Japan Inc.
Representative Chairman and President, Coca-Cola Bottlers Japan Business
Services Inc.
Representative, Office WaDa
Outside Director, Shimadzu Corporation
Representative Director & President, MICHINOKU COCA-COLA BOTTLING
CO., LTD.
Senior Advisor, Nishimoto Co., Ltd.

Co-Founder, Managing Director, Mile High Capital Inc.
Outside Director (Audit committee member, nominating committee member,Compensation committee member), MetLife Insurance K.K.
Outside Director, Shimadzu Corporation
Vice President and Treasurer, Head of Corporate Finance,
The Coca-Cola Company
Synovus Financial Corp., Director
President of India and Southwest Asia, The Coca-Cola Company

Notes:
1. Transfers of Directors during the fiscal year under review as follows:(1) Celso Guiotoko has retired from the post of Director (Audit & Supervisory Committee Member) effective from the conclusion of the fiscal year
2022 Ordinary General Meeting of Shareholders held on March 28, 2023, and he was newly elected and assumed office as Directors at the fiscal
year 2022 Ordinary General Meeting of Shareholders held on March 28, 2023.
(2) Yoshioka Hiroshi has retired from the post of Director (excluding Directors serving on the Audit and Supervisory Committee) effective from theconclusion of the fiscal year 2022 Ordinary General Meeting of Shareholders held on March 28, 2023, and he was newly elected and assumed
office as Directors (Audit & Supervisory Committee Member) at the fiscal year 2022 Ordinary General Meeting of Shareholders held on March
28, 2023.
(3) Stacy Apter and Sanket Ray were newly elected and assumed office as Directors (Audit & Supervisory Committee Members) at the fiscal year
2022 Ordinary General Meeting of Shareholders held on March 28, 2023.

38

(4) Irial Finan and Vamsi Mohan Thati have retired from the post of Director (Audit & Supervisory Committee Member) effective from theconclusion of the fiscal year 2022 Ordinary General Meeting of Shareholders held on March 28, 2023.
2.	Directors Hiroko Wada, Hirokazu Yamura, and Celso Guiotoko and Directors (Audit & Supervisory Committee Members) Hiroshi Yoshioka, Nami
Hamada, Stacy Apter, and Sanket Ray are Outside Directors.
3.	Directors Hiroko Wada, Hirokazu Yamura, and Celso Guiotoko and Directors (Audit & Supervisory Committee Members) Hiroshi Yoshioka andNami Hamada have been notified to the Tokyo Stock Exchange on which the Company is listed, as “Independent Officers” as defined in the rules of
the Tokyo Stock Exchange.
4.	Director (Audit & Supervisory Committee Member) Nami Hamada has accumulated a wealth of experience in finance and accounting by runningher own financial consulting company and is therefore highly knowledgeable about finance and accounting.
5.	The organizational audits conducted through an internal control system under the lead of the Audit & Supervisory Committee, the Company does
not need to appoint full-timers, and has therefore not appointed any full-time members to the Audit & Supervisory Committee.
6. Effective January 4, 2024, the Company has changed the responsibilities of Directors at important concurrent positions as follows.

Position
Representative
Director

Name
Bjorn Ivar Ulgenes

Director

Celso Guiotoko

Areas of responsibility and important concurrent positions
Vice President and Chief Financial Officer (Head of Finance)
Representative Director, Vice President, CFO and Head of Finance of CocaCola Bottlers Japan Inc.
Representative Chairman and President, Coca-Cola Bottlers Japan Business
Services Inc.
Representative Director, NeoArc Inc.
Director, NeoArc Inc.
Senior Advisor, Nishimoto Co., Ltd.

b. Outline of Limited Liability Agreements
In its Articles of Incorporation, the Company has established allowances concerning limited liability agreements with
Directors (excluding those who are not Executive Directors, etc.) in order to ensure that Directors (excluding those whoare not Executive Directors, etc.) can demonstrate the roles expected of them and the Company can invite and selectcompetent persons as Directors (including, not limited to, Outside Directors).
The Company has entered into limited liability agreements with Directors Hiroko Wada, Hirokazu Yamura, Celso
Guiotoko, Hiroshi Yoshioka, Nami Hamada, Stacy Apter and Sanket Ray to limit their liability for damages in the eventthat he/she fails to perform his/her duties stipulated in Article 427, Paragraph 1 of the Companies Act. The limit ofliability in the Agreement shall be equal to the minimum liability limit stipulated by laws and ordinances.
c. 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 with an insurance company and the Company bears the entire premium.

39

The policy, which insures the nine members of the Board of Directors, namely Representative Directors Calin Dragan
and Bjorn Ivar Ulgenes, and Directors Hiroko Wada, Hirokazu Yamura, Celso Guiotoko, Hiroshi Yoshioka, Nami
Hamada, Stacy Apter, and Sanket Ray, as well as the executive officers of the Group, covers damages and legal expenses
incurred by shareholders, the Company, employees, or other third parties during the insurance period in the event ofclaims for damages arising from the insured’s conduct in the course of his or her duties as an officer of the Company.
(2) Officer compensation, etc.
a. Compensation policy and process for determining the policy(a). Basic policy on compensation for Executive Directors and Executive Officers(i)	Compensation level and structure that enable hiring and retaining high-quality talents from the perspective of
diverse nationalities and experiences.
(ii)	Compensation composition ratio emphasizing performance-linked compensation, resulting in providing sufficientincentives for profitable growth.
(iii)	Introduce the system to further improve mid- to long-term corporate value and reinforce alignment of interests
with the shareholders.
(b). Supervisory Officers (Directors serving on the Audit and Supervisory Committee and Outside Directors not servingon 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.

40

b. Details and procedures on compensation for Executive Directors and Executive Officers(a). Compensation structure
Base salary

Fixed compensation

Retirement payments

Annual bonus

Variable compensation●	Monthly payment of an amount determined based on
responsibilities.
●	10% of annual base salary is retained, and the accumulated
amount is calculated and paid upon their retirement.
●	This payment may be reduced or withheld altogether if therecipient has caused significant damage to the CCBJHGroup or been subject to disciplinary action. It may also
be specially increased where the recipient has given
particularly distinguished contribution. Any reduction,
withholding, or special increase will be decided at theBoard of Directors Meeting, based on deliberation by the
Audit and Supervisory Committee.
●	Provided at a certain point in the year as an incentive forachieving performance targets for each fiscal year.
●	The target amount is set in the range of 30% to 85% ofbase salary, depending on their responsibilities.
●	The amount of payment varies in the range of 0% to 150%of the target amount depending on the achievement of
performance targets in each fiscal year (companywide
performance and individual evaluations)●	To provide motivation to achieve profitable growth,business income, sales volume, and net sales have been
adopted as measures for evaluating companywide
performance, based on the Company’s policy regarding thedetermination of compensation, etc. for Directors, etc.
●	The amount to be paid may be adjusted if the Audit andSupervisory Committee deliberated it necessary to do so,taking into consideration the status of payment of bonuses
to employees.

41

The portion of thecompensation shown on
the left provided to
Directors will not exceed
the following amount.
Compensation limit for
Directors (excluding
Directors serving on the
Audit and Supervisory
Committee): 850 million
yen per year (approvedby resolution no. 5 of2019 Annual General
Meeting of Shareholders)(five in number at thetime of the resolution,
excluding Directors
serving on the Audit andSupervisory Committee)* In case where the Audit
and Supervisory
Committee hasdeliberated and deemed
it necessary, payments
within 850 million yen
may be made for fringe
benefits such ascompensation for
exchange rate
fluctuation between
other countries andJapan, housing
allowance, etc.

Long-term incentives

Variable compensation(1) PSU(Performance Share
Units)(2) RSU(Restricted Stock
Units)●	Two types of stock-based compensation systems, (1) PSU
and (2) RSU, are adopted as long-term incentives.
●	The basic amount of all long-term incentives (1) PSU +(2) RSU is set in the range of 15% to 100% of base salary
based on the responsibilities. 50% of this basic amount is
set as the basic PSU amount, and 50% is set as the basic
RSU amount.
●	With regard to (2) RSU, additional grants for the purposeof retention, etc. may be made in addition to the abovementioned basic RSU amount and in case for Directors, up
to the compensation limit detailed on the right if deemednecessary by the Audit and Supervisory Committee(Special RSU).
●	Granted as an incentive for achieving medium to long term
performance targets.
●	The number of shares to be issued shall be determined within
the range of 0% to 150% of the basic PSU amount dependingon the achievement of performance targets (only considering
companywide performance) over the three years after theshare units have been granted.
●	A part of the shares to be issued shall be paid in cash for the
purpose of allocating funds for the payment of tax obligations,etc.
●	To provide motivation to enhance corporate value over the
mid to long term, consolidated ROE and consolidated sales
growth rate have been adopted as measures for evaluating
performance, based on the Company’s policy regarding thedetermination of compensation for Directors, etc.
●	Granted for the purpose of aligning interests withshareholders, creating incentives to increase corporate
value, and strengthening retention of talented people.
●	A predetermined number of shares are issued at retirement.
●	A part of the shares to be issued shall be paid in cash forthe purpose of allocating funds for the payment of tax
obligations, etc.

The portion of thecompensation shown on
the left provided to
Directors will not exceed
the following amount.
Compensation limit for
Directors (excluding
Directors serving on the
Audit and Supervisory
Committee):
The maximum numberof shares is2,880 million yen and
1,800,000 shares forthree fiscal years(approved by resolution
no. 5 of 2022 Annual
General Meeting of
Shareholders) (five in
number at the time of theresolution, excluding
Directors serving on the
Audit and Supervisory
Committee)* Regarding fringe benefits, to support the execution of assignments outside the home country, compensation for exchange rate fluctuation between
other countries and Japan, housing allowance, etc. are provided in accordance with the internal regulations approved at the Board of Directors
Meeting through deliberations by the Audit and Supervisory Committee.

42

(b). Process for determining compensation
Approval of compensation including the amount of performance-linked compensation for Executive Directors shall bedelegated to a Representative Director (Calin Dragan) upon resolution by the Board of Directors, and the amount shallbe determined by the Representative Director in accordance with the “Policy for Determining Compensation for
Directors, etc.” approved by the Board of Directors within the total amount determined by the resolution of theGeneral Meeting of Shareholders after the terms of compensation are deliberated by the Audit and Supervisory
Committee composed solely of Outside Directors in order to enhance the transparency and objectivity of proceduresfor determining compensation. The reason for the delegation is that the Representative Director is deemed appropriate
to determine the performance results of each Director while taking into account the overall performance of theCompany. In order for the Representative Director to exercise such authority appropriately, the decision on this has
been made after deliberations by the Audit & Supervisory Committee. The compensation for Executive Officers shallalso be determined through deliberations by the Audit and Supervisory Committee. Therefore, the Board of Directors
deems that the content of these compensations is in line with the above decision-making policy.
(i)

Activities of the Board of Directors

The Board of Directors’ activities concerning the determination of Officer compensation for FY2023 are as follows.
(1) Number of meetings of the Board of Directors held over one year from January 2023 to December 2023: 8(2) Main subjects discussed by the Board of Directors concerning Officer compensation and Officer compensation
structure in FY2023:• Payment of FY2022 Annual Incentive and Non-vesting of FY2020 Long term Incentive for Directors andExecutive Officers• FY2022 Retention measures• FY2023 Compensation for Directors (Excluding Directors Serving on Audit and Supervisory Committee)
and Executive Officers• Report on the number of share units to be granted to the Directors and Executive Officers in FY2023• FY2023 special RSU• Compensation for retired Executive Officers• Establishment of trusts for stock-based compensation

43

(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• 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 and overseas companies of similar scale in similar industries with the intent to provide a level ofcompensation that enables recruitment and retention of talented people who are highly diverse in terms of nationality,
experience, etc.

44

Image of compensation structure (in case of Representative Director)

Maximum
Fixed: 30% / Variable: 70%
TargetFixed: 37% / Variable: 63%

Variable
Compensation

Minimum
Fixed: 69% / Variable: 31%

FixedCompensation
Base Salary & Retirement payments

RSU

Annual Bonus & PSU at Target

45

Annual Bonus & PSU at Maximum

c. Guidelines and procedures for determining compensation for Supervisory Officers
The compensation for Supervisory Officers (Directors who are Audit & Supervisory Committee Members and Outside
Directors who are not Audit & Supervisory Committee Members) is composed of basic compensation only in view of
their role as supervisors and auditors of CCBJI business. Compensation levels are set according to the role of the
Director by utilizing data from 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
and Supervisory 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 determinedby 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 and Representative Director is that the President
and Representative Director is considered to be the most appropriate person to evaluate the responsibilities of each
Director. To ensure that such authority is appropriately exercised by the President and Representative Director, decisions
on the details of compensation for outside directors who are not members of the Audit and Supervisory Committee are
made after deliberation by the Audit and Supervisory Committee. Therefore, the Board of Directors deems that thecontent of these remunerations is in line with the above decision-making policy.

46

d. Details of compensation for Officers for FY2023(a). Total amount of compensation, etc. by position, total amount of compensation, etc. by category and headcount of
Officers
Types of remuneration

Positions

Total
remuneration(Million yen)

Directors (excluding Directors
serving on the Audit andSupervisory Committee)(of which Outside Directors)

1,076
(44)

490
(44)

Directors (serving on the Audit
and Supervisory Committee)(of which Outside Directors)

71
(71)

Total
(of which Outside Directors)

1,147
(115)

Headcount of
Officers(people)Annual bonuses

Long-term
incentives(Note 5)

23
(–)

271
(–)

292
(–)

6
(4)

71
(71)

–
(–)

–
(–)

–
(–)

7
(7)

561
(115)

23
(–)

271
(–)

292
(–)

13
(11)

Basic
compensation(Note 4)Retirement
payments

Note 1: In accordance with the resolution passed at the 62nd Annual General Meeting of Shareholders held on March 26, 2020, the upper limit ofcompensation for Directors (five in number at the time of the resolution, excluding Directors serving on the Audit and Supervisory Committee)
shall be 850 million yen per year (of which 50 million yen per year for Outside Directors (two in number at the time of the resolution); in
accordance with the resolution passed at the 58th Annual General Meeting of Shareholders held on March 23, 2016, the upper limit ofcompensation for Directors serving on the Audit and Supervisory Committee (five at the time of the resolution) shall be 100 million yen per
year.
Note 2: The above table includes remuneration, etc. paid to one director (excluding directors who are members of the Audit and Supervisory
Committee) and 3 directors who retired due to the expiration of their terms of office at the conclusion of the FY2022 Ordinary General
Meeting of Shareholders held on March 28, 2023.
Note 3: Apart from Note 1 above, the amount of remuneration, etc. to be paid to directors (excluding directors who are members of the Audit andSupervisory Committee) The total amount of monetary compensation claims and cash to be delivered to executive directors as stock-based
compensation (PSUs and RSUs) is determined by resolution of the 65th Company’s Annual General Meeting of Shareholders held on March
28, 2023 as the amount of compensation, etc. for directors (excluding directors who are members of the Audit Committee), not exceeding
2,880 million yen and 1,800,000 shares for three fiscal years.
Note 4: Basic compensation includes an amount equivalent to fringe benefits (compensation for exchange rate fluctuation between other countries andJapan, housing allowance, etc.), etc.
Note 5: Long-term incentives include PSU, RSU and Special RSU.

47

(b). Significant employee salary received by the officer concurrently serving as an employee
Not applicable(c) Payment rate, etc. of incentive compensation(i)Annual Incentive	In alignment with the mid-term management plan and the goal of achieving it, business income, sales volume andnet sales are set as proper performance metrics of Annual Bonus to measure company performance of theCompany 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 businessperformance for the period under review was 132%. Sales volume grew and both sales and income increased dueto the success of sales activities to seize opportunities for increased demand against 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, and energy
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 ofbonuses to employees, the Audit and Supervisory Committee discussed and reviewed the final payout rate (rate ofactual annual incentive paid against target payout) for FY2023. As a result, it determined that 136% is reasonable.
(ii) PSU	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
evaluated based on the degree of achievement of these targets, and the performance achievement, which is theweighted average of the degree 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 achievementlevels of performance targets. Based on the above-mentioned 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 therelevant performance period and the annual average sales growth rate for the relevant performance period.
Therefore, we are making a reasonable estimate based on our earnings forecast at this time.

48

(3) Outside Officers
a. Matters relating to Outside Officers(a) Positions held concurrently as Directors with executive authority over operations, etc. at other corporations, etc. andOutside Officers, etc. at other corporations, etc. (As of December 31, 2023)
Position
Outside Director

Name
Hiroko Wada

Outside Director

Hirokazu Yamura

Outside Director
Outside Director(Audit & Supervisory
Committee Member)
Outside Director(Audit & Supervisory
Committee Member)

Celso Guiotoko
Hiroshi Yoshioka

Outside Director(Audit & Supervisory
Committee Member)
Outside Director(Audit & Supervisory
Committee Member)

Stacy Apter

Nami Hamada

Sanket Ray

Important concurrent positions
Representative, Office WaDa
Outside Director, Shimadzu Corporation
Representative Director & President, MICHINOKU COCA-COLA
BOTTLING CO., LTD.
Senior Advisor, Nishimoto Co., Ltd.

Co-Founder, Managing Director, Mile High Capital Inc.
Outside director (Audit committee member, Nominating committee member,Compensation committee member), MetLife Insurance K.K.
Outside director, Shimadzu Corporation.
Vice President and Treasurer, Head of Corporate Finance,
The Coca-Cola Company
Synovus Financial Corp., Director
President of India and Southwest Asia, The Coca-Cola Company

Note: The Company’s relationships with other corporations where the Company’s Outside Officers serve concurrently as Directors with executive
authority over operations, etc. are as follows:(1) There is no business relationship to be disclosed between the Company and Office WaDa.
(2) There is no business relationship to be disclosed between the Company and Shimadzu Corporation.
(3) The Company and our group’s companies and MICHINOKU COCA-COLA BOTTLING CO., LTD. have a trading relationship (sales, 0.5%of consolidated sales revenue of the Company and our group’s companies; purchases,1.9% of consolidated sales revenue of MICHINOKU
COCA-COLA BOTTLING CO., LTD.
(4) There is no business relationship to be disclosed between the Company and Nishimoto Co., Ltd.
(5) There is no business relationship to be disclosed between the Company and Mile High Capital Inc.
(6) There is no business relationship to be disclosed between the Company and MetLife Insurance K.K.
(7) THE COCA-COLA COMPANY is an “Other Related Company” of the Company, and the Company has entered into agreements with itconcerning the manufacture and sale of Coca-Cola and other products and the use of its trademarks.
(8) There is no business relationship to be disclosed between the Company and Synovus Financial Corp.

49

(b) Main activities during the fiscal year under review
Position

Name

Main activities

Outside Director

Hiroko Wada

She attended all the 8 Board of Directors’ meetings held during the fiscal year
under review and provided advice as appropriate based on her considerable
experience and global knowledge gained as officer at The Procter & Gamble
Company and as Representative Director at Dyson Ltd. and Toys”R”UsJapan Ltd.

Outside Director

Hirokazu Yamura

He attended all the 8 Board of Directors’ meetings held during the fiscal year
under review after he assumed Director of the Company and provided advice
as appropriate based on his considerable experience and knowledge gained inmanagement and as Representative Director & President at Michinoku CocaCola Bottling Co., Ltd..

Outside Director

Celso Guiotoko

He attended all the 8 Board of Directors’ meetings held during the fiscal year
under review and provided advice as appropriate based on his considerable
experiences and global expertise gained at Nissan Motor Co., Ltd. (“Nissan”)
as well as Nishimoto Co., Ltd.

Outside Director(Audit & Supervisory
Committee Member)

Hiroshi Yoshioka

He attended all the 8 Board of Directors’ meetings and 4 Audit & Supervisory
Committee’s meetings held during the fiscal year under review after heassumed Director (Audit & Supervisory Committee Member) of theCompany and provided advice as appropriate based on his considerable
experience and global knowledge gained at the Coca-Cola bottling companies
as an outside director in Japan and Sony Corporation.

Outside Director(Audit & Supervisory
Committee Member)

Nami Hamada

She attended all the 8 Board of Directors’ meetings and 5 Audit &Supervisory Committee’s meetings held during the fiscal year under review
and provided advice as appropriate based on her considerable experiences on
Finance and Accounting gained as a proprietor of her own finance consulting
company and her considerable experiences and global knowledge gained as acorporate executive at Lehman Brothers Japan Inc..

Outside Director(Audit & Supervisory
Committee Member)

Stacy Apter

She attended all the 6 Board of Directors’ meetings and 4 Audit &Supervisory Committee’s meetings held during the fiscal year under review
after she assumed Director (Audit & Supervisory Committee Member) of theCompany and provided advice as appropriate based on her considerable
experience and global knowledge on Finance and Risk Management gained
as a Senior Vice President and Treasurer, Head of Corporate Finance of The
Coca-Cola Company.

Outside Director(Audit & Supervisory
Committee Member)

Sanket Ray

He attended all the 6 Board of Directors’ meetings and 4 Audit & Supervisory
Committee’s meetings held during the fiscal year under review after heassumed Director (Audit & Supervisory Committee Member) of theCompany and provided advice as appropriate based on his considerable
experience and global knowledge gained as a President of India andSouthwest Asia, The Coca-Cola Company.

50

4. Company Structure and Policies(1) Accounting Auditor
a. NameErnst & Young ShinNihon LLC
b. Amount of Remuneration
Categories

Amount paid

Remuneration for services stipulated in Article 2, Paragraph 1 of theCertified Public Accountants Act

68 million yen

Remuneration for services other than those stipulated in Article 2,
Paragraph 1 of the Certified Public Accountants Act– million yen

Remuneration by the Company and/or its subsidiaries to the
Accounting Auditor

Remarks(Note)

182 million yen

Notes:
1.	The audit contract between the Company and the accounting auditor does not distinguish between remuneration paid for the audit conducted inaccordance with the Companies Act and remuneration paid for the audit conducted in accordance with Financial Instruments and Exchange Act.
Accordingly, the amount above is the aggregate amount.
2.	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.

c. Policy on Decisions on Dismissal or Non-Reappointment of Accounting Auditor
In the case that it is reasonably judged that the accounting auditor falls under any of the dismissal events listed in theitems of Article 340, Paragraph 1 of the Companies Act, the Audit and Supervisory Committee will remove theaccounting auditor with the consent of all members. In this case, a Committee member selected by the Audit andSupervisory Committee will disclose the removal and its reason at the Meeting of Shareholders convened for the firsttime after the removal.
Additionally, concerning dismissal or non-reappointment of the accounting auditor, the Audit and Supervisory
Committee shall decide contents of a proposed resolution they submit to the General Meeting of Shareholders, in theevent they judge it necessary to do so in cases such as where the accounting auditor is recognized to have difficulty inproperly fulfilling its auditing duties.

51

(2) The System to Ensure Business Adequacya. Overview of the system to ensure business adequacy
In order to establish the system to ensure that the jobs conducted by the Directors comply with the laws and regulations
and the Articles of Incorporation, and other systems to ensure appropriateness of operation (to be referred to as “internal
control” hereinafter), the Company has made a resolution on “the Internal Control System Basic Policy” at the Board of
Directors Meeting.
“The Internal Control System Basic Policy” is as shown below.
(a) System to ensure that performance of duties by Directors and employees of the Group conforms to laws andregulations and the Articles of Incorporation
The “Code of Conduct” shall be established in order to ensure that all the Directors, Executive Officers, andemployees of the Group comply with laws and regulations and the Articles of Incorporation to act in conformity
with social norms. The Ethics & Compliance Committee shall be convened periodically in order to reinforce thecompliance system and to prevent non-compliance.
An internal whistle-blowing system against non-compliance, namely, a reporting and consultation contact separate
from the reporting line to immediate managers, shall be set up.
The oversight function of the Board of Directors shall be reinforced by adopting the company system where Audit
and Supervisory Committee is established in order to ensure auditing by the Audit and Supervisory Committee,
which is comprised exclusively of Outside Directors.
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.
The Company clearly identifies the firm stance against anti-social forces and organizations that cause threats to theorders and safety of civil society and that the Company never ties with such entities. The Company shall neveraccede to any illegal request and deal with any such request in cooperation with the police, lawyers, etc.
(b) System to retain and manage information related to Directors’ performance of their duties
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 in documents or electronic media and retain it in accordance with the Rules ofDocumentation Handling and Information Security Policy in a manner similar to that for statutory documents.
The Company’s Directors may inspect such documents, etc. at any time.

52

(c) Regulations and other systems concerning loss risk management of the GroupI n accordance with the Group policy on responding to material business risks and from the viewpoint ofmanagement of other 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.
The Company establishes rules, guidelines, etc. and maintains an organization to execute effective response tomaterial risks, and ensure the matters to be passed down by implementing training for the entire Group, etc.
The department in charge of risk management in the Company or its subsidiaries is to monitor the condition ofcompany-wide risks and to take appropriate measures on a group-wide basis. The Company promptly designates
who is in charge of the response to new risks that arise.
(d) System to ensure efficiency of performance of duties by the Group Directors
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.
In addition to Board of Directors meetings, appropriate forums, such as the main meetings held within theoperating companies, shall be organized to deliberate significant matters affecting the entire Group, thereby
ensuring that decisions are reached based on considerations of 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 Business Conduct & Ethics and Chart of Authority common throughout the Groupand supervise and manage the performance of the subsidiaries’ operations.
(f) Matters concerning employees assisting the Audit and Supervisory Committee to execute the duties if the
Audit and Supervisory Committee request the assignment of such employees, matters concerning theindependence of such employees from Directors (excluding Directors serving on the Audit and Supervisory
Committee) and matters related to ensuring the effectiveness of instructions given by the Audit and Supervisory
Committee to such employees
The Company shall assign employees assisting the Audit and Supervisory Committee. Such employees shall executethe duties under the instructions given by the Audit and Supervisory Committee in assisting executions of duties by
the Audit and Supervisory Committee and shall not receive instructions from Directors (excluding Directors servingon the Audit and Supervisory Committee).

53

(g) System for reporting by Directors and employees of the Group to the Audit and Supervisory Committee andsystems to ensure that reporting parties do not receive disadvantageous treatment as a result of such reports
Upon discovery of any incident that could cause the Group substantial damage, such as acts in violation of laws
and regulations, 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.
The Internal Audit Department shall regularly report internal audit results and the status of other activities in theGroup to the Audit and Supervisory Committee.
The department in charge of compliance shall regularly report the status of whistle-blowing in the Group to the
Audit and Supervisory Committee.
The Company shall prohibit unjust treatment of the reporter to the Audit and Supervisory Committee, and ensurethat this matter would be informed to all the Executive Officers 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 toprocessing expenses or liabilities arising from performance of duties by Directors serving on the Audit andSupervisory Committee
The Company establishes enough budget for Directors serving on the Audit and Supervisory Committee each year
to fulfill the performance of their duties.
(i) Other systems to ensure that the Audit and Supervisory Committee’s audit is conducted effectively
The Representative Director and the Audit and Supervisory Committee member shall hold meetings on a regularbasis to exchange opinions in order to communicate with each other.
The Representative Director shall prepare an environment so that the Audit and Supervisory Committee members
are able to cooperate with external experts, such as lawyers and certified public accountants, in the course of its
duties whenever the Audit and Supervisory Committee members deem it necessary.
The Audit and Supervisory Committee shall regularly provide opportunities for the exchange of opinions with theInternal Audit Department and accounting auditor.
b. Overview of the operational status of the system to ensure business adequacy(a) Initiative for ensuring compliance
The Company has developed its corporate philosophy and Code of Business Conduct & Ethics for the entire Group sothat all officers and employees will comply with laws and regulations and the Articles of Incorporation to act inconformity with social norms, and notifications are being ensured.

54

Additionally, CCBJH Group Ethics & Compliance Committee, chaired by the President, is held to work upon
reinforcement of the compliance structure and prevention of occurrence of non-compliance cases.
Furthermore, Regulations for Handling Whistleblowing have been developed, and an internal whistle-blowing
system is being operated by establishing Ethics & Compliance Reporting Hotline internally and at an external law
office and specialized agencies to work upon early detection and improvement of non-compliance cases.
(b) Initiative on loss risk management
The Company has developed CCBJH Group Rules of Risk Management and is working upon preventing theoccurrence of various risks that may arise for the Company. At the same time, the Company has formulated a response
strategy implemented in the eventuality of risk materialization and developed a system to minimize damage andconfusion for business by responding to the risk promptly and adequately.
Furthermore, in order to minimize damage and impact on business caused by natural disasters, etc., the Company
periodically holds risk management drills, disaster response drills and safety confirmation drills, verifying theeffectiveness of its business continuity plan that helps to deal with large-scale disasters.
(c) Initiative on ensuring adequacy and efficiency of the jobs conducted
The Company has established the Audit and Supervisory Committee in order to further enrich deliberation on matterswith particular importance at the Board of Directors Meeting, whereas determination on conduct of other businesses is
entrusted to the Directors.
Additionally, authority is delegated to Executive Officers and Heads of Functions / Departments so that decisions
are made regarding business conduct based on the approval authority standard in accordance with the Group
operational structure to ensure acceleration and streamlining of management decisions made by the management
members.
(d) Initiative on ensuring that audit by the Audit and Supervisory Committee be conducted in an effective manner
The Audit and Supervisory Committee members audit the status of business conduct by the Directors, Executive
Officers, and employees in accordance with relevant laws and regulations, the Articles of Incorporation, and theRegulations of the Audit & Supervisory Committee prepared by the Audit and Supervisory Committee by attending
the Board of Directors meeting, and by referring to the audit results, etc. provided by the department in charge ofinternal audit and the accounting auditor.
The Audit and Supervisory Committee members periodically exchange opinions regarding such audit results with
the Representative Directors.

55

(3) Basic Policies on the Control of the Stock Company
Basic Policies on the Control of the Stock Company as follows.
a. Details of Basic Policy
The Company believes that the persons who control decisions on the Company’s financial and business policies need tounderstand the source of the Company’s corporate value to make it possible to continually, persistently ensure andenhance 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 change of corporate control of the Company should
ultimately be made based on the intent of its shareholders as a whole. In addition, the Company would not reject a largescale 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
value of the target company and, in turn, the common interests of its shareholders; those with the potential tosubstantially coerce shareholders into selling their shares; those that do not provide sufficient time or information for thetarget company’s board of directors and shareholders to consider the terms of the large-scale acquisition of shares, or forthe target company’s board of directors to present a business plan or an alternative proposal; and those that require thetarget company to discuss or negotiate with the acquirer in order to procure more favorable terms for shareholders thanthose 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 fully understand the importance of (i) providing freshness and refreshment to people around the worldand embedding the “Coca-Cola” brand, which is now a part of our life style, in local communities; (ii) striving
aggressively to win in the market as the customers’ preferred partner with a deep understanding of the Company’s
corporate philosophy; (iii) appreciating employees who have a strong sense of responsibility to thoroughly pursue
customer satisfaction, and proactively working on building a workplace environment that can make each and every
employee feel rewarded, motivated and proud of being a member of the Coca-Cola family; and (iv) contributing to local
communities and proactively dealing with environmental issues with a strong sense of responsibility as a corporate
citizen that continues to strive to assist in the realization of an affluent society, preserve relationships of mutual trust withcustomers, business partners, shareholders and employees and perform to their expectations, and make it possible tocontinually and persistently ensure and enhance the Company’s corporate value and, in turn, the common interests of its
shareholders from a mid- to long-term perspective.

56

Therefore, the Company believes that a person who would make a large-scale acquisition of the shares in the
Company in a manner that does not contribute to the corporate value of the Company and, in turn, the common interestsof its shareholders would be inappropriate to become a person 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 a person.
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% funded by The Coca-Cola Company) as a business strategic partner, but also strives tobecome a company trusted by the stakeholders of consumers, customers, shareholders and employees.
While major growth of the soft drink industry cannot be expected as the market has already matured, the businessenvironment surrounding is projected to become harsher as competition intensifies among soft drink companies.
Under such circumstances, the Group aims to become 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,and drastically transforming the business to ensure growth.
In addition, the Company has adopted the company system with an Audit and Supervisory Committee in order tofurther reinforce the governance system. The Audit and Supervisory Committee serves as the auditing body of theCompany that is comprised exclusively of external directors, including multiple independent external directors. To
strengthen the management oversight function, these external directors that serve as the member of the Audit andSupervisory Committee have each been granted a voting right in the Board of Directors meetings, in addition to theright to state their opinions in shareholders’ meetings on matters pertaining to the designation of board members andtheir remuneration, among others. In order to separate the decision-making, business management and businessexecution functions, the Company is implementing a corporate executive officer system. In addition to the foregoing,
for more fruitful deliberations of highly important matters in the Board of Directors meetings, the Company isdelegating the authority to make decisions on certain important matters that require prompt business executions to
specific directors as well as facilitating speedy decision making of other matters.

57

(b) Outline of measures to prevent inappropriate persons from controlling the finance and business policy decisions of
the Company 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 ofshareholders as well as make appropriate measures as needed under the scope permitted by laws and regulations andthe Articles of Incorporation.
When Board Meeting determines it necessary to reapply anti-takeover measures in order to ensure and improve thecorporate value of the Company and the common interest of shareholders, taking into considerations of the future
trend of the society, the Company consults with shareholders at the Meeting of Shareholders as stipulated in the
Articles of Incorporation 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 theCompany’s basic policy.
In addition, the measure described in the previous b. (b) was introduced as a specific measure to ensure and improvethe corporate value of the Company and the common interest of shareholders as needed under the scope permitted bylaws and regulations and the Articles of Incorporation focusing on the intention of shareholders, and it is not intended toundermine the shareholders’ common interests or preserve the positions of the Company officers.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(Note: Amounts, number of shares and ratios in the business report are rounded off to the nearest unit.)

58

Consolidated Statement of Financial Position
As of December 31, 2023
(Millions of yen)

AssetsCurrent assets:

Liabilities
313,756

116,612

Bonds and debts

40,979120,069

Lease liabilities

5,267

Income taxes payable

4,176

71,651Other financial liabilities

1,111

Other current liabilities

29,297

Non-current liabilities:

177,369

Bonds and debts

114,802

Lease liabilities

20,349113,660

Trade and other receivables
Inventories

Other current assets
Non-current assets:

88
8,288

401,687

Right-of-use assets

23,894

Investments accounted for using theequity method
Other financial assets
Deferred tax assets
Other non-current assets
Total assets

Other non-current financial liabilities

531,077

Property, plant, and equipment

Intangible assets

197,443

Trade and other payables

Cash and cash equivalents

Other financial assets

Current liabilities:

Net defined benefit liabilities

19,856

Provisions

1,781

Deferred tax liabilities

16,757

Other non-current liabilities
Total liabilities

63,81915

3,809
374,812EquityEquity attributable to owners of the parent (total)

310
11,89825,222

15,232

Capital surplus

451,389

Retained earnings

88,365

Treasury shares(85,362)

Accumulated other comprehensive income

4,245

Non-controlling interests

844,832

Note: Amounts less than one million yen are rounded.

59

469,847

Capital stock

223
174

Total equity

470,021

Total liabilities and equity

844,832

Consolidated Statement of Income
For the fiscal year ended December 31, 2023
(Millions of yen)

Revenue

868,581

Cost of sales

484,364

Gross profit

384,216

Selling and general administrative expenses

381,022

Other income

5,156

Other expenses

4,902

Investment gain(loss) on equity method(7)

Operating income

3,441

Financial revenue

535

Finance expense

753
3,224

Income for the year before income tax
Income tax benefit

1,321

Net income for the year from continuing operations

1,903

Net income for the year attributable to:
Net income Attributable to Owners of Parent

1,871

Non-controlling interests

32

Note: Amounts less than one million yen are rounded.

60

Consolidated Statement of Changes in Shareholders’ Equity
For the fiscal year ended December 31, 2023
(Millions of yen)

Equity attributable to owners of the parent

Balance as of January 1, 2023
Comprehensive income for the period
Net income for the period
Other comprehensive income
Total comprehensive income for the period
Transactions with owners
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares
Transactions of share-based payment
Reclassification from accumulated othercomprehensive income to retained earnings
Reclassification from accumulated othercomprehensive income to non-financial assets
Total transactions with owners
Balance as of December 31, 2023

Balance as of January 1, 2023
Comprehensive income for the period
Net income for the period
Other comprehensive income
Total comprehensive income for the period
Transactions with owners
Dividends of surplus
Purchase of treasury shares
Disposal of treasury shares
Transactions of share-based payment
Reclassification from accumulated othercomprehensive income to retained earnings
Reclassification from accumulated othercomprehensive income to non-financial assets
Total transactions with owners
Balance as of December 31, 2023

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares

Accumulated
othercomprehensive
income (loss)

Total

15,232451,264

94,209(85,667)

1,177

476,216

–
–
–

–
–
–

1,871
–
1,871

–
–
–

–
338
338

1,871
338
2,209

–
–
–
–

–
–
(149)
273

(8,967)
–
–
–

–
(5)
310
–

–
–
–
–

(8,967)
(5)
162
273

–

–

1,252

–

(1,252)

–

–

–

–

–

(41)

(41)

–
15,232

125451,389(7,715)88,365

305(85,362)(1,293)223(8,579)469,847

Noncontrollinginterests

Total

142

476,358

32
–
32

1,903
338
2,241

–
–
–
–

(8,967)
(5)
162
273

–

–

–

(41)

–
174

(8,579)470,021

Note: Amounts less than one million yen are rounded.

61

Notes to Consolidated Financial Statements(Notes to significant matters as the basis for preparation of consolidated financial statements)
1. Accounting standards of consolidated financial statements
The consolidated financial statements of the Company Group are prepared in accordance with International Financial
Reporting Standards (IFRS) pursuant to Article 120, Paragraph 1 of the Rules of Corporate Accounting.
For the consolidated financial statements, certain disclosure items required by IFRS have been omitted pursuant to theprovision of the latter part of that paragraph.
2. Matters on the scope of consolidation(1) Number of consolidated subsidiaries: 9 subsidiaries(2) Names of major consolidated subsidiaries
The names of major consolidated subsidiaries are as described in “(7) Status of Significant Subsidiaries” of “1. Current
Status of the Coca-Cola Bottlers Japan Group” in the Business Report.
3. Matters on the application of the equity method(1) Number of affiliates accounted for using the equity method: 1(2) Names of affiliates accounted for using the equity method
Resources Co., Ltd.
4. Matters on accounting standards(1) Measurement of financial assets
a. Classification and measurement of financial assets
At initial recognition, financial assets are classified as subsequently measured at amortized cost or fair value.
Financial assets measured at fair value through profit or loss are initially measured at fair value. Financial assets
measured at fair value through other comprehensive income and financial assets measured at amortized cost are initiallymeasured at fair value plus transaction costs directly attributable to the acquisition.
The Group’s classification under IFRS 9 is based on facts and circumstances, and the Group designates equity
instrument as an equity instrument measured at fair value through other comprehensive income.
(a) 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 objectiveof our business model is to hold financial asset in order to collect contractual cash flows; and - if, by contract terms,
the condition that a cash flows that is solely payment of principal and interest on the principal amount outstanding
gives rise on a specified date.

62

(b) 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 each financial
instrument, except for the equity instrument held for trading purposes that must be measured at fair value through theprofit or loss, or at fair value through other comprehensive income.
For derivatives, see “c. Derivatives and hedging activities.”
Financial assets are subsequently measured as follows according to their classification.
(a) Financial assets measured at amortized cost
They are measured amortized cost based on effective interest method and if any, impairment loss is deducted. Gainsor losses arising from effective interest method or derecognition are recognized in profit or loss.
(b) Financial assets measured at fair value
They are measured at fair value as of the reporting date. Changes in fair value are recognized in profit or loss or othercomprehensive income, depending on the classification of the financial asset. Dividends income arising from theequity instrument designated as measured at fair value through other comprehensive income is recognized in profit orloss. In addition, in the event the derecognition of equity instrument designated as measured at fair value throughother comprehensive income, the cumulative changes in fair value recorded in accumulated other comprehensive
income are reclassified to retained earnings.
b. Impairment
The Group makes expected credit loss estimates on the reporting date basis on the recoverability of financial assets
measured at amortized cost. For financial instruments, whose credit risk has not increased significantly since initialrecognition, an expected credit loss of 12 months is recognized as allowance for credit loss. For financial instruments,
whose credit risk has increased since initial recognition, lifetime expected credit loss is recognized as allowance for
credit loss. However, allowance for credit loss for trade receivables is always measured at an amount equal to 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 the Groupwould 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.

63

If the Group does not have a reasonable expectation of collecting the entire or a portion of the financial asset, theamount is deducted directly from the carrying amount of the financial asset (write-off). If the credit risk is subsequently
reduced and clearly distinguishable from events that occurred after direct write-offs (e.g., improved credit ratings of theobligor), the reversal of write-offs is recognized in profit or loss.
c. Derivative and hedge accounting
Derivative is initially recognized at the fair value of the date the derivative contract is concluded, and after initialrecognition, it is remeasured at fair value on the reporting date. Recognition of gains or losses resulting fromremeasurement depends on whether the derivative is designated as hedging instrument and, if specified as hedging
instrument, the nature of the hedged item. The Group designates certain derivatives as hedging instruments for cash
flow hedges (certain risks related to asset or liability, or highly probable forecast transaction hedges).
At the inception of the hedging relationships, the Group documents the relationships between hedging instrument
and hedged item, as well as our risk management objectives and strategies for executing these hedging transactions.
The Group also documents the assessment, at the hedge’s inception and on an ongoing basis, of whether the derivative
used in the hedge transaction is effective to offset changes in the cash flows of the hedged item.
The Group evaluates the hedge effectiveness on an ongoing basis and judges that it is effective when all of thefollowing conditions are met “there is the economic relationship between hedged item and hedging instrument,” “theimpact of credit risk is not materially superior to changes in value arising from economic relationships,” and “the hedge
ratio of hedging relationships is the same as the ratio resulting from the volume of hedged item 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 isa hedged item results in the recognition of a non-financial asset (e.g., inventories), the gain or loss 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 dueto the extinction or sale of hedging instrument. If the hedged cash flows are expected to be incurred in the future, theaccumulated gains or losses recognized in other comprehensive income will continue to be recognized as anaccumulated other comprehensive income. If a forecast transaction is no longer expected to occur, the cumulative gains
or losses recognized in other comprehensive income is reclassified to profit or loss.

64

(2) Measurement of inventories
Inventories are measured at the lower cost and net realizable value. Discounts, rebates, other similar items and interest
rates until the par value is reached are deducted from its cost. Manufacturing costs include direct materials, direct labor,
and manufacturing overhead. Net realizable value is calculated at estimated selling prices less estimated selling costs andestimated selling expenses. The Group typically calculates the cost of inventories based on the weighted-average method.
If the net realizable value of inventories is less than its cost, the difference is recognized as expense in the consolidated
statements of profit or loss.
(3) Measurement and depreciation or amortization of property, plant and equipment and intangible assets
a. Property, plant, and equipment
After initial recognition, property, plant, and equipment is measured at cost less accumulated depreciation andimpairment losses. Expenditures incurred to expand, improve, or improve asset productivity, allowances, or efficiencies,
or to extend the useful life of an asset are included in cost of the related asset as capital expenditures, while repairs andadministrative expenses are recognized as expenses when incurred.
Depreciation is principally calculated using the straight-line method over the estimated useful life for each item ofproperty, plant and equipment as follows:
Buildings and Structures
Machinery, Equipment and Vehicles
Vending machines

Years of estimated useful lives
2 – 603 – 202 – 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.
b. 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.

65

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.
c. 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.
(4) Criteria for recording significant provisions
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 passage of timeis recognized as financial expense.

66

(5) Employee benefits
a. Short-term employee benefits
Short-term employee benefit is recognized 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 atthe beginning of the period.
Defined benefit plans obligations at the beginning of the fiscal year take into account all changes in defined benefit
plans obligations (asset) during the fiscal year due to contributions and benefit payments. Net interest expense and otherexpenses related to defined benefit plans are recognized in profit or loss.
d. 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, whichapproximates the average remaining service period.

67

(6) Recognition of revenue
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, andalcohol. 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 the purchaseof products can be used for future purchases of the Company’s products. The Company identifies points as a performanceobligation and allocates the transaction price based on the earned sales price, taking into account the expected use andexecution of the points, and recognizes revenue when the points are used. The transaction price allocated to the point
performance obligation is recorded as “Other current liabilities” in the consolidated statement of financial position.
(7) 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 for the
purpose of sharing the benefits and risks of stock price fluctuations with shareholders and to increase their willingness tocontribute 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.

68

5. Critical accounting estimates
In preparing the condensed 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 circumstances. Accounting estimates are based on
the most appropriate information at the time the condensed consolidated financial statements are released.
If there are changes to any future estimates, the impact of the revision is recognized in the condensed consolidated
statements of income and condensed consolidated financial statements of comprehensive income subsequent to thereporting period in which they are revised.
Accounting judgments, estimates and assumptions that have a significant impact on the condensed consolidated financial
statements will be revised based on the same concept as in the consolidated financial statements for the previous
consolidated fiscal year. Information about processes and estimates that have a significant effect on the amounts recognizedin the Consolidated Statement of Financial Position is presented below.
(1) Useful lives of property, plant and equipment and intangible assets
a. Amount recorded in the Consolidated Statement of Financial Position for the current fiscal year
Property, plant, and equipment
401,687 million yen
Right-of-use assets
23,894 million yen
Intangible assets
63,819 million yen
b. Information that contributes to an understanding of the content of accounting estimates
Property, plant, and equipment are depreciated over the estimated useful lives, which is the period over which the future
economic benefits of the asset are expected. If property and equipment is obsolescent in the future or reused for otherpurposes, depreciation expense may increase, and the estimated useful life may be shorter Details of useful life areprovided in notes 4 (3) a. “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 4 (3) c.
“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 areprovided in notes 4 (3) b. “Intangible assets.”69(2) Information that contributes to an understanding of the content of accounting estimatesa. Amount recorded in the Consolidated Statement of Financial Position for the current fiscal year
Property, plant, and equipment
401,687 million yen
Right-of-use assets
23,894 million yen
Intangible assets
63,819 million yen
Other11,266 million yen
b. Information that contributes to an understanding of the content of accounting estimates
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.
(3) Provision and contingent liabilities
a. Amount recorded in the Consolidated Statement of Financial Position for the current fiscal year
Provision (Current)‒ million yen
Provision (Non-current)
1,781 million yen
b. Information that contributes to an understanding of the content of accounting estimates
In the consolidated statements of financial position, the Group recognizes mainly provision on asset retirement
obligations and environmental measures provision. Provision is measured based on the best estimate of the expenditures
required to settle the obligation. Expenditures required to settle obligations are calculated by considering all factors
affecting future results but may be affected by unforeseeable events and changes in the environment assumed. The
accounting policies and reported amounts of provision are described in notes 4 (4) “Accounting standards for significant
provision”(4) Recoverability of deferred tax assets
a. Amount recorded in the Consolidated Statement of Financial Position for the current fiscal year
Deferred tax assets
25,222 million yen

70b. Information that contributes to an understanding of the content of accounting estimates
At recognition of deferred tax assets, the Group estimates the timing and amount of future taxable income based on theGroup’s mid-term plans. Estimates of future taxable income are based on mid-term plans. The main assumptions are thesales plan and cost plan for the period. In assessing the recoverability of deferred tax assets, the Company considers the
expected reversal of deferred tax liabilities, projected future taxable income, and tax planning including assets sales etc.
While such assumptions are based on management’s best estimates and judgments, these assumptions may also beaffected by changes in economic conditions that have a significant impact on future consolidated financial statements.
(5) Measurement of defined benefit plans obligationa. Amount recorded in the Consolidated Statement of Financial Position for the current fiscal year
Retirement benefit liability
19,856 million yen
b. Information that contributes to an understanding of the content of accounting estimates
The Groups adopts a variety of retirement benefit plans, including defined benefit plans. The present value and service
cost of defined benefit obligations for all plans are based on actuarial projections. Actuarial projections require estimatesand judgments related to variable factors such as discount rates, rates of salary increase and inflation. The Group isadvised by external actuaries as to the adequacy of actuarial projections, including these variable factors. Whileactuarial projections are determined based on management’s best estimates and judgments, they may be affected bychanges 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.
(6) Measurement of financial instrument without quoted prices in active market
a. Amount recorded in the Consolidated Statement of Financial Position for the current fiscal year
Other financial assets (Current)
88 million yen
Other financial assets (Non-current)
11,898 million yen
b. Information that contributes to an understanding of the content of accounting estimates
The Group applies valuation techniques that use unobservable inputs in the market to evaluate the fair value of financial
instruments without quoted prices in an active market. Unobservable inputs may be impacted by uncertain futurechanges in economic conditions that could have a material impact on future consolidated financial statements. Details
related to the assessment of financial asset are provided in (Notes regarding financial instruments)(Notes regarding Consolidated Statement of Financial Position)
Accumulated depreciation of property, plant and equipment and right-of-use assets:

71

431,530 million yen

(Notes regarding Consolidated Statement of Income)
Other income includes 4,425 million yen of gain on sale of property, plant, and equipment. Other expenses include 1,825
million yen of loss on sales of tangible fixed assets, 2,491 million yen of transformation-related expenses.
(Notes regarding Consolidated Statement of Changes in Shareholders’ Equity)
1. Matters related to the total number of issued and outstanding shares
Type of shares

Number of shares as ofJanuary 1, 2023

Commonstock

206,269 thousand shares

Number of increased
Number of decreased Number of shares at theshares for the current shares for the current
end of current
consolidated fiscal year consolidated fiscal year consolidated fiscal year–

– 206,269 thousand shares

2. Matters concerning dividends of surplus(1) Dividends paid
Total amountof dividends(million yen)

Dividend
per shareamount (Yen)

Resolution

Type of shares

Reference date

March 28, 2023
Ordinary general
meeting ofshareholders

Common shares

4,484

25 December 31, 2022

March 29, 2023

August 9, 2023
Board of Directors

Common shares

4,562

25

September 1, 2023

June 30, 2023

Effective date

Note: The total amount of dividends includes 79 million yen for the Company shares held by Executive reward BIP Trust and Stock granting ESOP
Trust.

(2) Among the dividends whose reference dates belong to the current consolidated fiscal year, the dividends whose effective
date come after the end of the current consolidated fiscal year.
Resolution

Type of shares

March 26,
2024
Ordinary
Common shares
generalmeeting ofshareholders

Total amountof dividends(million yen)

4,562

Source ofdividends

Dividend
per shareamount (Yen)

Reference date

Effective date

Retainedearnings

25

December 31,
2023

March 28, 2024

Note: The total amount of dividends includes 76 million yen for the Company shares held by Executive reward BIP Trust and Stock granting ESOP
Trust.

72

(Notes regarding revenue)(1) Information disaggregating revenue arising from contracts with customers
The Group’s organizational structure is based on the single beverage business segment. Discrete financial information isavailable for the components of the Group, and operating results are regularly reviewed by the Board of Directors (chief
operating decision makers) to make decisions about the allocation of business resources. As such, the earnings recorded
under the beverage business are presented as Revenue.
In the beverage business, the Group purchases, manufactures, and sells carbonated beverages such as Coca-Cola,coffee beverages, tea-based beverages, mineral water, alcohol, and other beverages in Japan. Revenue for sales of theseproducts is recognized primarily at the time of delivery as the customer has obtained control over the products and theperformance obligation is satisfied.
Payments relating to such performance obligations 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)
Revenue
Goods or services transferred at a point in time
Other revenue arising from customers and contracts
Beverages
OthersTotal

868,581868,56020
868,581(2) Information that forms the basis for understanding revenue from contracts with customers
As stated in notes 4. Significant accounting policies (6) Revenue recognition.
(3) Contract balances
Receivables (accounts and notes receivable) arising from contracts with customers 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)

77,105
77,10579,994
79,994

1,147

1,135

Receivables arising from contracts with customers
Accounts and notes receivable
Total
Contract liabilities(Other current liabilities)

Note: Contract liabilities based on a point system for its customers. When we assume that customer will use the points, we recognized as performanceobligation and recorded in contract liabilities. Whereby points awarded for the purchase of products can be used for future purchases of the Company’s
products. The amount of revenue recognized in the current fiscal year that was included in the contract liabilities at the beginning of the period was
1,147 million yen. The amount of revenue recognized from performance obligations in prior periods was not material in the current fiscal year.

73Transaction price allocated to the remaining performance obligation
Information regarding the remaining performance obligation is omitted as there are no significant transactions inwhich the estimated individual contract periods exceed one year in the Group.
(Notes regarding financial instruments)
1. Matters concerning the situation of financial instruments(1) Financial risk management
The Groups are exposed to the following risks arising from financial instruments:• Credit risk
• Liquidity risk
• Market risk
The Group faces a variety of financial risks (credit risk, liquidity risk and market risk (equity price risk, interest raterisk, currency risk and commodity price risk) in the course of conducting business and manages risks in accordance withcertain policies to avoid and mitigate these financial risks. The Group’s risk management policies are formulated after
identifying and analyzing the risks faced by the Group with the aim of appropriately identifying risks and controls andmonitoring risks and complying with controls. Risk management policies and systems are reviewed periodically to reflectmarket conditions and the Group’s business activities. The Group conducts training and develops manuals and procedures
to maintain a control environment in which all employees understand their roles and disciplines.
Based on our risk management policies, the group utilizes derivative transactions to hedge certain risk exposures. The
Group’s policy is to utilize derivative transactions to hedge foreign currency exchange and commodity price risks and not
to engage in speculative transactions. Our finance division identifies, evaluates, and hedges financial risk.
a. Credit risk
Credit risk is the risk that one party to the financial instrument will be unable to fulfil its obligations and another party
will incur financial losses. In the course of our business, the Group is exposed to counterparty credit risk with respect totrade and other receivables and other financial assets (including deposits, securities, and other receivables). The
carrying amount after impairment for financial assets presented in the consolidated financial statements is the maximum
exposure of the Group of financial assets to credit risk, without taking into account of any collateral held. In addition,
the Group has no significant credit risk exposure to any particular counterparty and has no excessive concentration of
credit risk with specific managements.
In order to manage credit risk, the Group manages payment due dates and outstanding for each customer inaccordance with our internal customer control regulations and monitors the credit standing of our major customer on aregular basis. In order to mitigate the credit risk of derivative transactions, in principle, transactions are limited tofinancial institutions with high credit ratings.
In addition, the Group calculates allowance for credit loss by classifying receivables based on credit risk
characteristics. For trade and lease receivables, the Group always measures allowance for credit loss at the sameamount as lifetime expected credit losses. Receivables other than trade and lease receivables, in principle, are measured

74the allowance for credit loss at the same amount as the 12-month expected credit losses. However, if credit riskincreases significantly from the initial recognition date, the Group recognizes the allowance for credit losses at the sameamount as the lifetime expected credit losses. The Group determines whether or not the credit risk has increased
significantly based on fluctuations in the risk of default, and consideration of the passage of time and deterioration in
the financial condition of the obligor. All receivables other than trade receivables for which the Group measures theallowance for credit loss at the same amount as the 12-month expected credit losses are measured on a collective basis.
The amount of expected credit losses related to trade receivables is calculated based on simplified approaches byclassifying receivables according to the credit risk characteristics of the counterparty and multiplying by the provision
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 principle approach by multiplying by provision rate reflected the historical rateof credit loss of the same type of asset by its carrying amount.
The amount of expected credit losses related to asset whose credit risk has been increased significantly and 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.
b. 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.
c. Market risk
Market risk is the risk of fluctuations in interest rates, stock prices and other market prices that may affect the value of
the Group’s revenue and value of securities held by the Group. While optimizing profits, the Group manages market
risk exposures to acceptable levels.
(a) Interest rate risk
Loans payable and bonds are fixed interest rates. Accordingly, the impact of changes in interest rates on profit or loss
is limited and the Group believes that our interest rate risk is insignificant and has not performed sensitivity analyses
such as basis point values.
(b) Stock price risk
The Group is exposed to the risk of fluctuations in stock prices because the Group holds a large number of securities
with quoted market prices. Securities with quoted market prices are held for purposes other than trading and aredesignated primarily as financial assets measured at fair value through the other comprehensive income.

75

(c) Currency risk
The Coca-Cola Bottlers Japan Co., Ltd., a consolidated subsidiary, purchases raw materials denominated in foreign
currencies and is therefore exposed to currency risk, mainly in U.S. dollars. Currency risk arises from forecast
transactions, such as future purchases, or from assets and liabilities that are already recognized. The Group utilizes
foreign currency forward contracts to hedge its currency risk. Hedge accounting is applied to transactions that meetthe criteria for hedge accounting. Receivables and payables denominated in foreign currencies are exposed to the riskof exchange rate fluctuations, but the impact of this risk is limited as it is offset by forward exchange contracts.
(d) Commodity price risk
The Coca-Cola Bottlers Japan Co., Ltd., a consolidated subsidiary, purchases raw materials that are subject tofluctuations in prices due to weather and natural disasters. As a result, the Group is exposed to the commodity pricerisk of raw materials. The Group enters into commodity swap contracts to hedge the risk of fluctuations in the pricesof these raw materials.
2. Classification by level of the fair value hierarchy(1) Classification by level of the fair value hierarchy
Financial instruments measured at fair value on a recurring basis after initial recognition are classified into three levels of
the fair value hierarchy, depending on the observability and significance of the inputs used in the measurement. The fairvalue hierarchy is defined as follows:
Level 1: Fair value (unadjusted) in the active market of the same asset or liability
Level 2: Fair value based on inputs other than quoted prices included in Level 1, either directly observable inputs orindirectly, of observable inputs for asset or liability
Level 3: Fair value based on unobservable inputs for asset or liability
When more than one input is used to measure the fair value, the level of the fair value hierarchy is determined based on
the lowest level of input that is significant to the fair value measurement as a whole. Transfers between levels of the fairvalue hierarchy are recognized as having occurred at the beginning of each fiscal year. There was no transfer between
Level 1 and Level 2.

76(2) Fair value measurement
Securities are classified as Level 1 of the fair value hierarchy by the measurement of share prices, if any, in an active
market for the same asset or liability. If there is no active market share price for the same asset or liability, the Group uses
valuation techniques such as share prices in non-active markets, and quoted market prices of similar companies. If
significant inputs, such as quoted market prices and discount rates used in measurement are observable, such financial
instruments are classified as Level 2, but are classified as Level 3 if inputs used in its measurement include significant
unobservable inputs.
Unlisted securities are classified into Level 3 of the fair value hierarchy using valuation techniques based on quoted
market prices of similar companies, valuation techniques based on net asset value, and other valuation techniques. In thefair value measurement of unlisted securities, the Group uses unobservable inputs such as valuation multiples andconsiders certain illiquidity discounts and non-controlling interest discounts as needed. The measurement methods forsuch fair value are determined by the Finance division in accordance with the Group’s accounting policies. The valuation
techniques and significant unobservable inputs used in Level 3 fair value measurement are as follows:
Type

Valuationtechnique

Financial instrument
measured at fairvalue through othercomprehensive
income (Securities)

Comparison ofsimilar companies

Significant unobservable inputs

Interactions between significant
unobservable inputs and fair value
measurement

EBIT Multiple: 26.8 times
PER: 5.8—6.5 times
PBR: 1.1—2.4 times

Estimated fair value increases(decreases) when equity indices ofcomparable listed companies of thetarget are high (low)EBIT Multiple: Corporate Value/EBIT
PER: Price-Earnings Ratio
PBR: Price Book Value Ratio

77

(3) Financial instrument measured fair value on a recurring basis
The breakdown of financial instrument measured at fair value on a recurring basis is as follows(Millions of yen)

Level 1

Level 2

Level 3

Total

Financial assets
Financial instrument measured atfair value through profit or loss:
Derivative assets
Subtotal
Financial instrument measured atfair value through othercomprehensive income:Securities
Other
Subtotal
Total

–

80

–

80

–

80

–

80

4,542

–

2,921

7,463

–

–

92

92

4,542

–

3,013

7,555

4,542

80

3,013

7,635

–

1,127

–

1,127

–

1,127

–

1,127

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

A reconciliation of the beginning and ending balances of financial instrument classified as Level 3 is as follows:(Millions of yen)

Financial assets measured at fair value through othercomprehensive income
Balance in January 1, 2023

3,135

Purchase

3

Disposals(217)

Gains recognized in other comprehensive income

92

Balance in 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.

78

(4) Financial instrument measured at amortized cost
The amount recorded on consolidated statement of financial position as of December 31, 2023 fair values and thedifference between these amounts are as follows.
(Millions of yen)Amount recorded on
consolidated statementof financial position
Long-term loans payable and bonds

155,781

Fair values
154,547

Difference inamount1,234(Note) Long-term loans payable and bonds include the current portion. Cash and cash equivalents, trade and otherreceivables, trade and other payables are not included in the above table as their fair value approximates theircarrying amount due to the short collection and settlement period. The main valuation techniques used to measurefair value of the financial instrument in the table above are as follows:
Loan payable
Loans payable with variable interest rates are calculated using the carrying amount as its fair value becauseinterest rates are considered to reflect market interest rates in the short term. Loans payable with fixed interest
rates are calculated based on the present value of future cash flows discounted using interest rates adjusted for theremaining term and credit risk. Loans payable with fixed interest rates are classified into Level 2 of the fair value
hierarchy.
Bonds payable
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 into
Level 2.
(Earning per share information)
Equity attributable to owners of the parent per share
Earnings per share
Diluted earnings per share

2,618.49 yen
10.43 yen
10.36 yen

Note: We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust. The Company shares held by these trusts are included in thetreasury shares to be deducted from end of years’ shares and the average number of shares during the year for calculating the amount of equity
attributable to owners of the parent per share, earnings per share, and diluted earnings per share. The average number of treasury shares deducted
was 26,886 thousand shares for current fiscal year.

(Subsequent events)
Not applicable.

79Non-consolidated Balance Sheet
As of December 31, 2023
(Millions of yen)

AssetsCurrent assets:
Cash and deposits

Liabilities
96,7106,999

Operating accrued income receivable

482

Prepaid expenses

571

Short-term loan receivable of subsidiaries and affiliates
Accrued income receivable
Fixed assets:
Property, plant, and equipment:

88,6509
401,644
58,640

Buildings

10,911

Structures

716

Tools, instruments, and fixtures
Land

Leasehold right27

Investment securities of subsidiaries and affiliates
Other assets
Total assets

Shareholders’ equity:
Common stock
Additional paid-in capital
Capital reserve
Other additional paid-in capital
Retained earnings:
Legal reserve
Other retained earnings:
Reserve for advanced depreciation
General reserve
Retained earnings to be carried forward
Treasury shares
Total net assets
Total liabilities and net assets

47,00627

49,85940,000
284
3
8,526
13
271
601
161
111,651
110,000
2
668
21
813
147
161,510

Net assets

6

Intangible assets:

Investments and other assets:

Current liabilities:
Current portion of bonds payable
Other accounts payable
Accrued expenses payable
Money entrusted
Allowance for bonuses
Allowance for bonuses to directors
Income tax payable etc.
Other current liabilities
Long-term liabilities:
Bonds payable
Allowance for retirement benefit
Assets retirement obligation
Deferred tax liabilities
Provision for performance-linked compensation
Other long-term liabilities
Total liabilities

342,978
342,561417
498,355

Note: Amounts less than one million yen are rounded.

80

336,844
15,232
261,604
108,167
153,438
140,190
3,317
136,873674
110,388
25,811(80,182)
336,844498,355

Non-consolidated Statement of Income
For the fiscal year ended December 31, 2023
(Millions of yen)

Net operating revenues

6,052

Operating expenses

4,504

Operating income

1,548

Non-operating income:Interest and dividend received

116

Other non-operating income

7123

Non-operating expenses:
Interest expenses

296

Other expenses

75

Recurring income

370
1,301

Extraordinary profit:
Gain on sale of fixed assets

1,083

1,083

103

103

Extraordinary losses:
Impairment loss
Income before income taxes

2,281

Income taxes

890

Income taxes deferred42

Net income

1,349

Note: Amounts less than one million yen are rounded.

81Non-consolidated Statement of Changes in Shareholders’ Equity
For the fiscal year ended December 31, 2023
(Millions of yen)

Shareholders’ equity
Additional paid-in capital
Commonstock
Balance as of Jan. 1, 2023
Changes during this term
Dividends of surplus
IncomeWithdrawal of reserves
Acquisition of treasury shares
Disposal of treasury shares(Net) Changes in items
other than shareholders’equity during this term
Total changes during this term
Balance as of Dec. 31, 2023

15,232Retained earnings

Other
Total
Capital additional additional
reserve
paid-inpaid-in
capitalcapital108,167
158,783
266,949

Total net
Total
Other
TreasuryTotalshareholders’ assets
retainedsharesretained
equityearnings
earnings(Note 1)
3,317
144,570
147,887(85,667) 344,402
344,402

Legal
reserve

–
–
–
–
–

–
–
–
–
–

–
–
–
–
(5,345)––––(5,345)–––––(9,046)
1,349
–
–
–

(9,046)
1,349
–
–
–

–
–
–
(5)
5,490

(9,046)
1,349
–
(5)
145

(9,046)
1,349
–
(5)
145

–

–

–

–

–

–

–

–

–

–

–
15,232–
108,167(5,345)
153,438(5,345)
261,604–
3,317(7,697)
136,873(7,697)140,1905,484(80,182)(7,557)
336,844(7,557)
336,844

Note 1: Breakdown of other retained earnings(Millions of yen)

Other retained earnings
Reserve foradvanceddepreciation
Balance as of Jan. 1, 2023
Changes during this term
Dividends of surplus
IncomeWithdrawal of reserves
Acquisition of treasury share
Disposal of treasury share(Net) Changes in items
other than shareholders’equity during this term
Total changes during this term
Balance as of Dec. 31, 2023

675

Retained
Total otherearnings toretained
be carriedearnings
forward110,388
33,507
144,570

Generalreserve

–
–
(1)
–
–

–
–
–
–
–

(9,046)
1,349
1
–
–

(9,046)
1,349
–
–
–

–

–

–

–

(1)
674

–
110,388(7,696)25,811(7,697)
136,873

Note 2: Amounts less than one million yen are rounded.

82

Notes to Non-Consolidated Financial Statements(Notes on matters concerning 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. Depreciation method used for fixed assets(1) Tangible fixed assets
Depreciation is calculated by the straight-line method. The main useful life is as follows:
Buildings
2-50 years(2) Intangible fixed assets
Amortization is calculated by the straight-line method.
3. Basis for recording provision(1) Allowance for bonuses
Bonus provision is recognized at the estimated amount to be paid as of the fiscal year, in order to prepare for the paymentof bonuses to employees.
(2) Allowance for officers’ bonuses
Provision of directors’ bonuses is recognized as the estimated amount to be paid as of the fiscal year, in order to prepare
for the payment of bonuses to directors and corporate auditors.
(3) Allowance for performance-linked compensation
Performance-linked compensation provision is recognized the estimate amount to be paid as of the fiscal year, in order toprepare for the payment of shares and cash to executive directors and executive officers.

83(4) Allowance for retirement benefit
In order to prepare for the payment of retirement benefit, the company records an estimate payment amount as of the endof 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
Not applicable.
(Notes to the Non-Consolidated Balance Sheet)
1. Amount of accumulated depreciation of tangible fixed assets
63,727 million yen
2. Monetary receivables from or payables to subsidiaries and affiliates (excluding the items stated separately in the Balance
Sheet)
Short-term monetary receivables
491 million yen
Short-term monetary payables
8,553 million yen(Notes to Non-Consolidated Statement of Income)Transaction amount with affiliated company
Net revenues
Others (operating transactions)
Others (non-operating transactions)

6,052 million yen
365 million yen
116 million yen

84

(Notes to Non-Consolidated Statement of Changes in Shareholders’ Equity)
Matters concerning class and total number of treasury shares
Type of shares

Shares as ofJanuary 1, 2023

Common shares

26,928thousand shares

Increase in shares for Decrease in shares for Shares as of December
fiscal year 2023
fiscal year 2023
31, 2023
3 thousand shares

98 thousand shares 26,834thousand shares

1. The increase of 3 thousand shares in the common shares of treasury share is due to the purchase of shares based on a resolution of the Board of
Directors and the purchase of shares constituting less than one unit.
2. The decrease of 98 thousand shares in the common shares of treasury share are due to delivery of ESOP Trusts 97 thousand shares and additionalpurchase of o thousands shares constituting less than one unit.
3. Common shares at the end of fiscal year included 3,050 thousand shares of BIP Trusts and ESOP Trusts.

(Notes on deferred tax accounting)Breakdown of deferred tax assets and deferred tax liabilities by main cause
Deferred tax assets
Depreciation
1,679 million yen
Impairment loss
249 million yen
779 million yen
Other
Sub-total of deferred tax assets
2,706 million yen(660) million yen
Allowance for evaluation losses
Total deferred tax assets
2,046 million yen
Deferred tax liabilities
Reserve for advanced depreciation(908) million yen
Valuation difference on land
(1,115) million yen(45) million yen
Other
Total deferred tax liabilities(2,067) million yen
Net deferred tax liabilities(21) million yen

85

(Notes on transactions with related parties)
Subsidiaries, etc.
Type

Name ofcompany

Subsidiary

Coca-Cola
Bottlers
Japan Inc.

Address

Minato-ku,
Tokyo

Capital orinvestment
amount(million yen)Line ofbusiness

Manufactureand sales of100
beverage andfood products

RelationshipOwnership
Description Transaction
Year-end
Accountingof votingofamountbalance
item
Interlocking
Businessrights (%)
transaction (million yen)(million yen)directorate relationship

Owned
100.0

Concurrent
post
2

Lending of Lending of
funds
funds
Net
Net
revenues revenues

Receivables– from subsidiaries
and affiliates
Operating
6,052 accrued income
receivable

88,650482(Notes)1. The transaction amount does not include consumption tax. Year-end balance includes consumption tax, etc.
2. Transaction terms and conditions and the policy for deciding on these terms and conditions
Terms and conditions for the transaction with Coca-Cola Bottlers Japan Inc.
	With regard to the lending of funds, the interest rate on loans is determined in consideration of market interest rates. In addition, the Company has
adopted a cash management system for the purpose of improving the group’s funds efficiency. Also, transaction amounts are stated in net value.
Regarding net revenues, it is accompanied by real estate leasing and is determined based on certain rational standards.

(Notes on impairment loss)
In the fiscal year under review, the Company recorded an impairment loss on the following asset groups.
Region
Kinki

Chugoku

Use
Idle asset

Idle asset

Number oflocations
2

3

Type

Impairment loss
(million yen)

Buildings

0

Land

43

Buildings

8

Constructions

0

Land

51

The Company has divided assets for business use into groups by business unit that generates cash continuously based on
management accounting system. As for rental property and idle assets, each individual property is recognized as the smallest
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 pieces ofland, buildings, and structures in the target locations are reduced to their recoverable amounts, and the amount of reduction isrecognized as impairment loss.
The recoverable amounts of idle assets are calculated based on the valuation by real estate appraiser, etc.

86(Notes on per share information)
Net assets per share
Income per share

1,877.26 yen
7.52 yen

Note: We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust. The Company shares held by these trusts are included in thetreasury 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 and income per share. The average number of treasury shares deducted was 26,886 thousand shares for current fiscal year.

(Revenue Recognition Related)
Information that forms the basis of understanding revenue arising from contracts with customers is as stated in “(Notes onmatters concerning significant accounting policies) 4. Accounting standards for income and expenses.”(Significant subsequent events)
Not applicable.

87Independent Auditor’s Report
Independent Auditor’s Report
The Board of Directors

Coca-Cola Bottlers Japan Holdings, Inc.

February 15, 2024

Ernst & Young ShinNihon LLC
Tokyo Office
Makoto Matsumura (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Keita Tsujimoto (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Keisuke Kishi (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the consolidated financial statements, comprising the consolidated balance sheet, the consolidated statement of income,the consolidated statement of changes in net assets and the related notes of Coca-Cola Bottlers Japan Holdings, Inc. for the fiscal year
from January 1, 2023 to December 31, 2023 in accordance with Article 444, Paragraph 4 of the Companies Act.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position and theresults of operations of Coca-Cola Bottlers Japan Holdings, Inc. and its consolidated subsidiaries for the period, for which theconsolidated financial statements were prepared, in accordance with the provisions of the latter part of Article 120, Paragraph 1 of theRegulation on Corporate Accounting which allows companies to prepare consolidated financial statements with the omission of somedisclosure items required under Designated International Financial Reporting Standards.
Basis for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibility under the auditing standards is statedin “Auditor’s Responsibility for the Audit of the Consolidated Financial Statements.” We are independent of the Company and its consolidated
subsidiaries in accordance with the provisions related to professional ethics in Japan and are fulfilling other ethical responsibilities as an auditor.
We believe that we have obtained sufficient and appropriate audit evidence to provide a basis for our audit opinion.
Other Description
The other description consists of the business report and the supplementary schedules. Management is responsible for preparing anddisclosing the other description. The Audit & Supervisory Committee is responsible for monitoring the execution of the duties of the
Directors related to designing and operating the reporting process of the other description.
Our audit opinion on the consolidated financial statements does not include any other description and we express no opinion on suchother description.
In auditing the consolidated financial statements, we are responsible for reading through the other description, and in the process ofreading it through, reviewing whether there are any material discrepancies between the other description and the consolidated financial
statements or the knowledge that we gained during our auditing process, and paying attention to any signs of material misstatement inother description in addition to such material discrepancies.
When we judge that there is any material misstatement in other description based on the tasks that we performed, we are required toreport such fact.
We have found no matters to report with regard to the other description.

88

Responsibilities of Management and the Audit & Supervisory Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with theprovisions of the latter part of Article 120, Paragraph 1 of the Regulation on Corporate Accounting which allows companies to prepare
consolidated financial statements with the omission of some disclosure items required under Designated International Financial
Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate to prepare theconsolidated financial statements in accordance with the premise of a going concern, and for disclosing matters relating to going concern
when it is required to do so in accordance with the provisions of the latter part of Article 120, Paragraph 1 of the Regulation on
Corporate Accounting which allows companies to prepare consolidated financial statements with the omission of some disclosure items
required under Designated International Financial Reporting Standards.
The Audit & Supervisory Committee is responsible for monitoring the execution of Directors’ duties related to designing and operating
the financial reporting process.
Auditor’s Responsibility for the Audit of the Consolidated Financial Statements
Our responsibility is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to express an opinion on the consolidated financial statements from an
independent standpoint in an audit report, based on our audit. Misstatements can occur as a result of fraud or error, and are deemedmaterial if they can be reasonably expected to, either individually or collectively, influence the decisions of users taken on the basis of
the consolidated financial statements.
We make professional judgment in the audit process in accordance with auditing standards generally accepted in Japan, and perform thefollowing while maintaining professional skepticism.
• 	Identify and assess the risks of material misstatement, whether due to fraud or error. Design and implement audit procedures to address
the risks of material misstatement. The audit procedures shall be selected and applied as determined by the auditor. In addition,
sufficient and appropriate audit evidence shall be obtained to provide a basis for the audit opinion.
• 	In making those risk assessments, the auditor considers internal control relevant to the entity’s audit in order to design audit proceduresthat are appropriate in the circumstances, although the purpose of the audit of the consolidated financial statements is not to express an
opinion on the effectiveness of the entity’s internal control.
• 	Assess the appropriateness of accounting policies adopted by management and the method of their application, as well as thereasonableness of accounting estimates made by management and the adequacy of related notes.
• 	Determine whether it is appropriate for management to prepare the consolidated financial statements on the premise of a going concern
and, based on the audit evidence obtained, determine whether there is a significant uncertainty in regard to events or conditions that may
cast significant doubt on the entity’s ability to continue as a going concern. If there is a significant uncertainty concerning the premise ofa going concern, the auditor is required to call attention to the notes to the consolidated financial statements in the audit report, or if thenotes to the consolidated financial statements pertaining to the significant uncertainty are inappropriate, issue a modified opinion on the
consolidated financial statements. While the conclusions of the auditor are based on the audit evidence obtained up to the date of theaudit report, depending on future events or conditions, an entity may be unable to continue as a going concern.
• 	Besides assessing whether the presentation of and notes to the consolidated financial statements are in accordance with the provisions of
the latter part of Article 120, Paragraph 1 of the Regulation on Corporate Accounting which allows companies to prepare consolidated
financial statements with the omission of some disclosure items required under Designated International Financial Reporting Standards,
assess the presentation, structure, and content of the consolidated financial statements including related notes, and whether the
consolidated financial statements fairly present the transactions and accounting events on which they are based.
• 	Obtain sufficient and appropriate audit evidence regarding the financial information of the Company and its consolidated subsidiaries inorder to express an opinion on the consolidated financial statements. The auditor is responsible for instructing, supervising, andimplementing the audit of the consolidated financial statements, and is solely responsible for the audit opinion.
The auditor reports to the Audit & Supervisory Committee regarding the scope and timing of implementation of the planned audit,
material audit findings including material weaknesses in internal control identified in the course of the audit, and other matters required
under the auditing standards.
The auditor reports to the Audit & Supervisory Committee regarding the observance of provisions related to professional ethics in Japan
as well as matters that are reasonably considered to have an impact on the auditor’s independence, and if any measures have been taken
to remove disincentives and any safeguards that are applied to reduce disincentives to an acceptable level.
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed pursuant to the provisions of the Certified
Public Accountants Law of Japan.
Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’s Report as required by the Companies Act.

89

Independent Auditor’s Report
Independent Auditor’s Report
The Board of Directors

Coca-Cola Bottlers Japan Holdings, Inc.

February 15, 2024

Ernst & Young ShinNihon LLC
Tokyo Office
Makoto Matsumura (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Keita Tsujimoto (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant
Keisuke Kishi (Seal)
Designated Limited Liability Partner
Engagement Partner
Certified Public Accountant

OpinionWe have audited the financial statements, comprising the balance sheet, the statement of income, the statement of changes in net assets
and the related notes, and the supplementary schedules of Coca-Cola Bottlers Japan Holdings, Inc. for the fiscal year from January 1,
2023 to December 31, 2023 in accordance with Article 436, Paragraph 2-(i) of the Companies Act.
In our opinion, the financial statements and the supplementary schedules referred to above present fairly, in all material respects, thefinancial position and the results of operations of Coca-Cola Bottlers Japan Holdings, Inc. for the period, for which the financial
statements and the supplementary schedules were prepared, in accordance with accounting principles generally accepted in Japan.
Basis for the Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibility under the auditing
standards is stated in “Auditor’s Responsibility for the Audit of the Financial Statements and the Accompanying Supplementary
Schedules.” We are independent of the Company in accordance with the provisions related to professional ethics in Japan, and are
fulfilling other ethical responsibilities as an auditor. We believe that we have obtained sufficient and appropriate audit evidence toprovide a basis for our audit opinion.
Other Description
The other description consists of the business report and the supplementary schedules. Management is responsible for preparing anddisclosing the other description. The Audit & Supervisory Committee is responsible for monitoring the execution of the duties of the
Directors related to designing and operating the reporting process of the other description.
Our audit opinion on the financial statements and the accompanying supplementary schedules does not include the other description andwe express no opinion on the other description.
In auditing the financial statements and the accompanying supplementary schedules, we are responsible for reading through the otherdescription, and in the process of reading it through, reviewing whether there are any material discrepancies between the otherdescription and the financial statements and the accompanying supplementary schedules or the knowledge that we gained during our
auditing process, and paying attention to any signs of material misstatement in other description in addition to such material
discrepancies.
When we judge that there is any material misstatement in other description based on the tasks that we performed, we are required toreport such fact.
We have found no matters to report with regard to the other description.

90

Responsibilities of Management and the Audit & Supervisory Committee for the Financial Statements and the Accompanying
Supplementary Schedules
Management is responsible for the preparation and fair presentation of the financial statements and the supplementary schedules inaccordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary
to enable the preparation of financial statements and the supplementary schedules that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements and the accompanying supplementary schedules, management is responsible for assessing whether
it is appropriate to prepare the financial statements and the accompanying supplementary schedules in accordance with the premise of agoing concern, and for disclosing matters relating to going concern when it is required to do so in accordance with accounting principles
generally accepted in Japan.
The Audit & Supervisory Committee is responsible for monitoring the execution of Directors’ duties related to designing and operating
the financial reporting process.
Auditor’s Responsibility for the Audit of the Financial Statements and the Accompanying Supplementary Schedules
Our responsibility is to obtain reasonable assurance about whether the financial statements and the accompanying supplementary schedules
as a whole are free from material misstatement, whether due to fraud or error, and to express an opinion on the financial statements and theaccompanying supplementary schedules from an independent standpoint in an audit report, based on our audit. Misstatements can occur asa result of fraud or error, and are deemed material if they can be reasonably expected to, either individually or collectively, influence thedecisions of users taken on the basis of the financial statements and the accompanying supplementary schedules.
We make professional judgment in the audit process in accordance with auditing standards generally accepted in Japan, and perform thefollowing while maintaining professional skepticism.
• 	Identify and assess the risks of material misstatement, whether due to fraud or error. Design and implement audit procedures toaddress the risks of material misstatement. The audit procedures shall be selected and applied as determined by the auditor. In
addition, sufficient and appropriate audit evidence shall be obtained to provide a basis for the audit opinion.
• 	In making those risk assessments, the auditor considers internal control relevant to the entity’s audit in order to design audit
procedures that are appropriate in the circumstances, although the purpose of the audit of the financial statements and theaccompanying supplementary schedules is not to express an opinion on the effectiveness of the entity’s internal control.
• 	Assess the appropriateness of accounting policies adopted by management and the method of their application, as well as thereasonableness of accounting estimates made by management and the adequacy of related notes.
• 	Determine whether it is appropriate for management to prepare the financial statements and the accompanying supplementaryschedules on the premise of a going concern and, based on the audit evidence obtained, determine whether there is a significant
uncertainty in regard to events or conditions that may cast significant doubt on the entity’s ability to continue as a going concern. If
there is a significant uncertainty concerning the premise of a going concern, the auditor is required to call attention to the notes to thefinancial statements and the accompanying supplementary schedules in the audit report, or if the notes to the financial statements andthe accompanying supplementary schedules pertaining to the significant uncertainty are inappropriate, issue a modified opinion on
the financial statements and the accompanying supplementary schedules. While the conclusions of the auditor are based on the audit
evidence obtained up to the date of the audit report, depending on future events or conditions, an entity may be unable to continue asa going concern.
• 	Besides assessing whether the presentation of and notes to the financial statements and the accompanying supplementary schedules
are in accordance with accounting principles generally accepted in Japan, assess the presentation, structure, and content of thefinancial statements and the accompanying supplementary schedules including related notes, and whether the financial statements
and the accompanying supplementary schedules fairly present the transactions and accounting events on which they are based.
• 	To express an opinion on the financial statements and the accompanying supplementary schedules, obtain sufficient and appropriate
audit evidence relating to the financial information on components, which is included in the financial statements and theaccompanying supplementary schedules. The auditor is responsible for giving instructions on, monitoring, and performing audits
relating to the financial information on components. The auditor is solely responsible for audit opinions.
The auditor reports to the Audit & Supervisory Committee regarding the scope and timing of implementation of the planned audit,
material audit findings including material weaknesses in internal control identified in the course of the audit, and other matters required
under the auditing standards.
The auditor reports to the Audit & Supervisory Committee regarding the observance of provisions related to professional ethics in Japan
as well as matters that are reasonably considered to have an impact on the auditor’s independence, and if any measures have been taken
to remove disincentives and any safeguards that are applied to reduce disincentives to an acceptable level.
Other Matter
Our firm and engagement partners have no interest in the Company which should be disclosed pursuant to the provisions of the Certified
Public Accountants Law of Japan.
Notes to the Reader of Independent Auditor’s Report:
The Independent Auditor’s Report herein is the English translation of the Independent Auditor’s Report as required by the Companies Act.

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Audit Report
Audit Report
We, as the Audit & Supervisory Committee (‟A&S Committee”) conducted audits relating to the execution of duties bydirectors during FY 2023 business year from January 1, 2023 to December 31,2023, and hereby report the method ofaudits and results as follows.
1. Method of audits and the details
A&S Committee received regular reports from directors and employees on the content of resolutions of the board of
directors regarding matters prescribed in Paragraph 1 (i) (b) and (c) of Article 399-13 of the Companies Act and thestatus of building and operation of the internal control system which had been developed based on the board
resolutions, requested further explanations as needed, explained its opinions and conducted audits as below:
A&S Committee members participated in important meetings in accordance with the audit policy specified by theCommittee in cooperation with the company’s internal control department. A&S Committee received reports
relating to the execution of duties by directors from directors and employees, requested further explanations asneeded, and examined the process and details of decision-making at important meetings, etc. as well as the statusof business and assets.
A&S Committee also received reports on the status of subsidiaries’ business as needed by communicating andexchanging information with directors, auditors, etc. of the subsidiaries.
A&S Committee examined the basic policies (specified according to Article 118 (iii)(a) of the Companies Act) andthe special efforts (specified according to Article 118 (iii)(b) of the Companies Act) described in the business
reports in light of the status of deliberations at the board of directors and other meetings.
A&S Committee members conducted audits to ensure that accounting auditors kept independence and conducted
appropriate accounting audits, while receiving reports on the execution of duties by them and requesting further
explanations as needed. In addition, A&S Committee received notification by accounting auditors that they weredeveloping a “structure to secure appropriate execution of duties by directors” in accordance with the “quality
control standards relating to audits”, etc., and requested further explanations as needed.
Based on the above outlined method, we examined the business reports and their detailed statements, the financial
statements and their detailed statements, as well as the consolidated financial statements relating to the business year inquestion.

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2. Audit Results(1) Result of Audit of Business Reports, etc.
We acknowledge that the business reports and detailed statements correctly indicate the company’s situation inaccordance with laws and regulations and the Articles of Incorporation.
 e acknowledge that there is no misconduct relating to the director’s execution of duties or any significant facts
W
that violate laws and regulations or the Articles of Incorporation.
 e acknowledge that the details of resolutions of the board of directors relating to the internal control systemW
are appropriate. Furthermore, we acknowledge that there is no point of concern to be indicated regarding thedetails stated in business reports relating to internal control systems and the execution of duties by the director.
We also received reports from directors and ERNST & YOUNG SHIN NIHON LLC that they acknowledged theinternal control relating to financial reporting was valid as of preparation of this Audit Report.
 e acknowledge that there is no point of concern to be indicated regarding the basic policies relating to control
Wof the company described in the business reports. We acknowledge that the special effort described in thebusiness reports (specified according to Article 118 (iii) (b) of the Companies Act) is consistent with the basic
policies, does not harm the common interests of shareholders of the company, and is not intended to maintainthe position of officers of the company.
(2) Results of Audit of Financial Statements and Detailed Statements
We acknowledge that the method and results of the audit by ERNST & YOUNG SHIN NIHON LLC are
appropriate.
(3) Results of Audit of Consolidated Financial Statements
We acknowledge that the method and results of the audit by ERNST & YOUNG SHIN NIHON LLC are
appropriate.

February 15, 2024
Audit & Supervisory Committee, Coca-Cola Bottlers Japan Holdings Inc.
Audit & Supervisory Committee Member

Hiroshi Yoshioka

Audit & Supervisory Committee Member

Nami Hamada

Audit & Supervisory Committee Member

Stacy Apter

Audit & Supervisory Committee Member

Sanket Ray(Note) Audit & Supervisory Committee Member Hiroshi Yoshioka, Audit & Supervisory Committee Member Nami
Hamada, Audit & Supervisory Committee Member Stacy Apter and Audit & Supervisory Committee Member
Sanket Ray are External Auditors provided for in Article 2-15 and Article 331-6 of the Companies Act.

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