1Coca-Cola Bottlers Japan Inc. Integrated Report 2022

2

Coca-Cola Bottlers Japan Inc. Integrated Report 2022

3Value Creation Story

Introduction

Contents

Introduction
1 Corporate Philosophy
3 Contents
4 Information Disclosure System /Editorial Policy

Sustainability

Risk Management

Governance

Financial /Corporate Information

4Information Disclosure System / Editorial Policy

Part 3CCBJH Group’s Information Disclosure

37 Sustainability

We disclose information in a timely and appropriate manner toenable stakeholders to better understand our business and to place
their trust in the CCBJH Group. This Integrated Report is produced
to broadly communicate financial and non-financial information toour stakeholders. Comprehensive information on investor relations
and our environmental, social and governance (ESG) initiatives areavailable on our website.

Financial information

Non-Financial information

39 Sustainability Strategy
41 Initiatives Based on CSV Goals
Inclusion

43

5 Coca-Cola Bottlers Japan Holdingsin the WorldInvestor Relations

7 Coca-Cola Bottlers Japan Holdings
in JapanFinancial &Non-Financial Strategy

Communities

47

Sustainability

Integrated Report

Part 1

9 Value Creation Story

11 Message From the PresidentResources51• Earnings Presentation• Earnings Release• Securities Report

Integrated Report2022• Corporate Governance Report• TCFD• GRI Content Index• ESG Data
• GHG Emissions Results Basedon the GHG Protocol• External Evaluation

Shareholder Information
Coca-Cola Bottlers Japan Holdings Inc.

Integrated Reporthttps://en.ccbjholdings.com/ir/library/annual.php
https://en.ccbj-holdings.com/ir/library/annual.php

Part 455 Risk Management
15 Value Creation Process
17 Process for Identifying Material Issues
20 Material Issues

57 Business Resilience Strategy
59 Managing Risk and Leveraging Opportunities
65 Disclosure Based on TCFD Recommendations

Part 2Part 5

21 Financial & Non-Financial Strategy

67 Governance

23 Message From the CFO

69 Corporate Governance Strategy
71 Corporate Governance

Financial / Corporate Information
79 Overview of Full-Year 2022 Results
81 Key Financial and Non-Financial Data
83 External Evaluations
2527
29
3133
35

Commercial Strategy

Initiatives by Channel

Initiatives by Category
SCM Strategy

Procurement Strategy
People Strategy

Coca-Cola Bottlers Japan Inc. Integrated Report 2022

Participation in External Initiatives

84 Company Overview and Stock Information
85 Group Companies / Glossary
86 Third-Party OpinionInvestor Relations

Sustainability

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

https://en.ccbji.co.jp/csv/

Editorial Policy
This document is provided as a report related to value creation at CCBJH based on the IFRS Foundation’s International Integrated Reporting
Framework and the Ministry of Economy, Trade and Industry’s Guidance for Collaborative Value Creation. For sustainability information, we
have referred to the GRI Sustainability Reporting Standards of the Global Reporting Initiative and the final report of the Task Force on
Climate-related Financial Disclosures (TCFD).
Period covered

This report covers activities from January 2022 to the end of December 2022. (Including some activities reported in 2023)
Numerical data is also for the period from January 2022 to the end of December 2022.

Scope of the report

Information presented in this report was collected from Coca-Cola Bottlers Japan Holdings Inc., Coca-Cola Bottlers Japan Inc.,and the Coca-Cola Bottlers Japan Group companies* (Details on page 85 Our Group Companies).

Date of issue

June 2023

Company names

CCBJH Group (we) Coca-Cola Bottlers Japan Holdings Inc. and eight consolidated subsidiaries (Coca-Cola Bottlers Japan Inc.,and the Coca-Cola Bottlers Japan Group companies).
(As of December 31, 2022)
CCBJI

Coca-Cola Bottlers Japan Inc.

CCBJI Group

Coca-Cola Bottlers Japan Inc. and its Group companies* Coca-Cola Customer Marketing Co., Ltd., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Kadiac Co., Ltd.,
Coca-Cola Bottlers Japan Business Services Inc., and Coca-Cola Bottlers Japan Benefit Inc., Bannai Saketen Inc.
Forward-Looking Statements
The plans, forecasts, business strategies, and other statements described in this document contain forecasts based on our judgment in light of the information available at thetime the materials were prepared.
Note that these forecasts may differ materially from actual results due to various risks and uncertainties.
Please refer to the 2022 Full-Year Earnings Presentation for the assumptions used for earnings forecasts and precautions regarding their use.

Coca-Cola Bottlers Japan Inc. Integrated Report 2022

5Introduction

Value Creation Story

Financial &Non-Financial Strategy

Sustainability

Risk Management

Governance

Financial /Corporate Information

6Coca-Cola Bottlers Japan Holdings in the World

Member of the Global Coca-Cola SystemThe Coca-Cola
Company(TCCC)

Bottling partners

225Approx.
around the worldRevenue$Leveraging our strengths as a part of the global Coca-Cola System

Coca-Cola Bottlers Japan Holdings Inc.
One of the largest in Asia and one of
the leading bottlers in the world

The Coca-Cola System around the world

43 billion

The Coca-Cola System consists of The Coca-Cola Company
and around 225 Coca-Cola bottling partners worldwide. It sells
Coca-Cola and various other beverages in more than 200
countries and territories. This worldwide network has allowed
us to accumulate tremendous knowledge and experience andis one of the key sources of our sustainable growth andReachingpeople all overthe world(2022 result)

Collaboration on
product developmentcompetitiveness. In particular, close collaboration in terms of
product development, the introduction of global standard coresystems, participation in global operations, and exchange ofhuman resources has led to the creation of synergy throughout
the Coca-Cola System.

Within the global Coca-Cola System, Japan launches the largest number of new
products each year. It also plays a leading role in driving innovation throughout theCoca-Cola System. The Coca-Cola System’s global product development, nurturing
structure and access to powerful global brands are among our strengths. One recent
example of collaboration is the global planning and development of alcoholic
beverages, starting with the Coca-Cola System’s first alcoholic beverage, Lemon-dou,in Japan. This was followed by the launch of Jack Daniel’Z *VJHϏ*VSHPU4L_PJVPU
2022 and in Japan in April 2023. We are also working to enhance our market
competitiveness by leveraging our strengths on a global scale. This includes theintroduction of Costa Coffee, the No. 1* café brand in Europe, to the Japanese market.
* According to Allegra’s 2021 World Coffee Portal

Subsidiary of The Coca-Cola Company
Coca-Cola (Japan) Company

Global standardoperations

We introduced an ERP system called CokeOne+ that covers back-office andcustomer service. CokeOne+ is a template of Enterprise Resource Planning (ERP)system developed by the global Coca-Cola System that enables complex businessprocesses to be carried out on a common platform, centered on the centralized
management and visualization of a wide range of information. It is helpful instrengthening management analysis capabilities, improving business quality andprocesses, and promoting efficiency. In addition, in the area of procurement, we areworking with the Cross Enterprise Procurement Group (CEPG), the Coca-Colasystem’s global procurement network, to take advantage of a global procurement
scale and prepare transaction guidelines based on global standards.

Exchange ofhuman resources

We engage in human resource exchanges with Coca-Cola bottlers around the world,
including Coca-Cola Hellenic (a bottler that does business primarily in Central and,HZ[LYU,\YVWL*VJH*VSH-,4:(IV[[SLYPU3H[PU(TLYPJHHUK*VJH*VSHBeverages Philippines (a bottler that does business primarily in Southeast andSouthwest Asia and India). These exchanges involve short-term appointments toshare success stories and build long-term collaborative relationships. We also
actively engage in intra-company communication in our daily operations, holding
regular meetings at the division level with the participation of representatives frombottlers. We use these opportunities for human resource exchange to promotetransformation based on global business experience, knowledge, and successstories, as well as to develop global human resources internally.

Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) and the Coca-Cola System around the world
In 1886, Coca-Cola was born in Atlanta, Georgia. The franchisesystem established by The Coca-Cola Company allowed othercompanies to bottle and distribute Coca-Cola, which facilitated
its expansion across the United States. In time, franchisebusinesses established bottling plants in every continent,
leading to the worldwide distribution of Coca-Cola.
The Coca-Cola Company distributes beverage base toauthorized bottling partners in specific economic regions.
These bottling partners, also known as “bottlers,” mix thebeverage base with carbonated or distilled water andsweeteners to create a finished beverage. The finished productis then packaged and sold. The Coca-Cola System today sells
Coca-Cola and various other products in more than 200countries and territories.
The CCBJH Group is one such bottler that has enteredinto a franchise agreement with Coca-Cola (Japan) Company,
which is the Japanese subsidiary of The Coca-Cola Company.
Our business operations encompass Tokyo, Osaka, Kyoto, anda further 35 Japanese prefectures.

Global sales ratio by region in the Coca-Cola System
Employees supporting
the Coca-Cola business
Europe,Middle East,and Africa

28%

700,000

More thanaround the world

North America
Asia

24%

17%

Coca-Cola product sales area
South America

27%Note: Others 4%

Coca-Cola Bottlers Japan Inc. Integrated Report 2022

200

More thancountries and territories
Source: 2022 Business & Sustainability
Report of The Coca-Cola Company

Coca-Cola Bottlers Japan Inc. Integrated Report 2022

7Introduction

Financial &Non-Financial Strategy

Value Creation Story

Sustainability

Risk Management

Financial /Corporate Information

Governance

8Coca-Cola Bottlers Japan Holdings in Japan

Largest Bottler in Japan
Accumulated capital and strengths

The Coca-Cola System in Japan working in alignment600More than
product varieties

Hokkaido
Coca-Cola
Bottling
Co., Ltd.

Procurement

Sales plan
Michinoku
Coca-Cola
Bottling
Co., Ltd.

Beverage
base
production

MarketingCoca-Cola
Bottlers JapanHoldings

Coca-ColaJapan

AlignResearchanddevelopment

Hokuriku
Coca-Cola
Bottling
Co., Ltd.

PlantsPlantsReaching people
all over Japan
Manufacturing &Commercial
capitalManufacturing&Commercial capital

Collection /Recycling
Sales /
Marketing

Okinawa
Coca-Cola
Bottling
Co., Ltd.

90About% of sales volume
in the Coca-Cola System in Japan

2015

1956–1999

Expansion ofmanufacturing
and sales area

Improved
competitivenessthrough streamlining

17 bottlers

6 bottlers

Tokyo

Tone

MikuniSendai

ChukyoFuji

Kitakyushu

Sanyo

MikasaKinki

MinamiKyushuShikoku

Hokkaido

Michinoku

Hokuriku

NaganoOkinawa

2001–2015
CorporaterestructureIntellectualcapitalIntellectualcapital

1999–2015
Corporate
restructure

1984

Merger of
two companies

needs, enhancing customer service, and ensuring quality control.
The first Japan bottler was established in 1956, and that
number grew to 17 across the country. In the 1990s, bottler
consolidations began and in April 2017, Coca-Cola EastCompany, Limited (CCEJ) and Coca-Cola West Company,Limited (CCW) merged to form Coca-Cola Bottlers Japan Inc*.
Currently, ourselves and four other bottlers sell Coca-Cola andother beverages throughout Japan.

Human capital
Human capital

About
About

About
About

4040

Social capitalSocial capital

Scaling up forgreater businessstrength

2017

Natural capital
Natural capital

CCBJI*

CCW
Hokkaido

Michinoku

Hokkaido

Michinoku

Hokuriku

Okinawa

Hokuriku

Okinawa

About
About

300300

About
About

700,000
700,000

Bottling partners worldwide
Bottling partners worldwide

About
About

225
225

14,50014,500

Sales area
Sales area2017

* Trade name changed to Coca-Cola Bottlers Japan Holdings Inc. (CCBJH) on January 1, 2018

Coca-Cola Bottlers Japan Inc. Integrated Report 2022

1717

Vending machines
Vending machines

Number of employees
Number of employees

5 bottlers

CCEJ

Sales/distribution centers
Sales/distribution centers

Brands in Japan
Brands in Japan

Strengthening the business foundation in JapanThe Coca-Cola System in Japan comprises The Coca-Cola(Japan) Company, Limited, which is The Coca-Cola Company’s
Japanese subsidiary responsible for supplying beverage bases,
planning and developing products, and conducting marketing
activities. Bottlers and affiliates manufacture and sell the products.
These companies work in close partnership to grow the Coca-Colabusiness by improving production efficiency, maintaining aconsumer-oriented approach, responding quickly to market

We deliver safe and high-quality Coca-Cola products tocustomers and business partners and provide attentive service
with the aim of achieving our mission to deliver happy moments
to everyone while creating value.

Production

Logistics

Planning

The CCBJH Group is the largest Coca-Cola bottler in Japan,
responsible for approximately 90% of the sales volume of theCoca-Cola System in Japan. Among about 225 bottlingpartners worldwide, we are one of the largest in Asia in terms ofrevenue and one of the leading bottlers in the world.

Financial
capitalFinancial
capitalConsumers in sales area
Consumers in sales area

Tokyo, Osaka, Kyoto
Tokyo, Osaka, Kyoto
andprefectures
andprefectures(53 million households)(53 million households)

Water usage
Water usage

Water replenishment rate
Water replenishment rate

Total assets
Total assets

RatingRating

3535

About
About

111
million
111 million

13,287,000
420
m³
13,287,000 m³
420%%
Approx.
Approx.

yen A+(R&I)/AA-(JCR)
830
billion yen A+(R&I)/AA-(JCR)
830 billion
As of December 31, 2022

Coca-Cola Bottlers Japan Inc. Integrated Report 2022