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株 主 のみなさまへの損失となりました。親会社の所有者に帰属する四半期利益に内容をこれまで以上に精査しながら、中長期の成長につながるつきましては、キューサイ㈱の株式売却益を計上したことなどものに絞って実行しております。

中 長 期の事 業 成 長に向けた投 資を継 続

事業環境の中、
やむなく無配とさせていただきましたが、本年はございます。新型コロナウイルス感染症に罹患された方々とそのご家族に心よりお見舞い申し上げます。また、感染拡大防止や治療等に日々ご尽力されている関係者のみなさまに心より敬意を表します。
当社のミッションは、困難な時期においても、すべての人にハッピーなひとときをお届 けし、価 値を創 造することです。
みなさまの生 活に寄り添い 、安 全・安 心な飲 料・サービスを提供し続けるために、さまざまな対策を講じてまいりました。経済

センター
（DC）」
の稼働、低コストオペレーションの実現に向けたサプライチェーン体制のスリム化、新しい働き方の推進等の変革の取り組みを進めてまいりました。
さらに、「廃棄物ゼロ社会」の実現に向けた100%リサイクルPETボトルの採用拡大や、

中間配当金を2019年並みの25円といたしました。期末配当金も1株当たり25円を予定しており、年間では1株当たり50円を見込んでおります。

取り組むとともに、売上と利益の状況を注視しながら、中長期の引き続き短期的な業績の厳しさが見込まれるものの、中長期キャッシュの状況および株主還元について株主のみなさまにおかれましては、引き続き当社へのご理解と長きにわたるご支援を賜りますようお願い申し上げます。

上期の売上収益につきましては、第1
影響が限定的であった前年同期と比べて厳しい結果となりましたが 、第2四半期
11％増となり、上期では前年上期の総括なりました。事 業 利 益に同期比1％減の3,693億円とつきましては、経常的な

詳しくは当社ウェブサイト「ニュース」をご覧ください。

ニュースカレンダー
1月
2月

https://www.ccbji.co.jp/news/▶
「東京都女性活躍推進大賞」の産業分野にて「大賞」を受賞

トピックス②へ

3月

4月

代表取締役社長▶日本のコカ･コーラシステム全6社にて同性パートナーに対応した就業規則・福利厚生の整備が完了

6月▶
「コカ･コーラ ボトラーズジャパン オンライン工場見学」
を開始▶新型コロナウイルス感染症のワクチン職域接種を開始▶健康経営への取り組み：コロナ禍の運動不足を解消するため自社開発アプリ▶
「ジョージア ラテニスタ クリーミーラテ」発売を使用したウォーキングイベントを継続実施

トピックス①へ▶
「ノメルズ ハードレモネード」
発売▶自動販売機サブスクリプション
（定額）
サービス
「Coke ON Pass」のサービス開始▶
「やかんの麦茶 from 一（はじめ）」
発売を受賞「アイシー・スパーク from カナダドライ レモン」
発売
▶小松工場でアルコール製品製造ラインを稼働開始▶コカ･コーラ社製品約8万ケースを医療機関やフードバンク等に寄贈▶
「コスタ ブラック」、「コスタ カフェラテ」
発売

カリン・ドラガン▶FVジャパン㈱の「冷感マスク」が「第17回ガラスびんアワード」機能・環境賞▶
「アイシー・スパーク from カナダドライ」、

トピックス②へ▶
「なでしこ銘柄」の「準なでしこ」に3年連続で選定

新製品の投入や販売チャネルごとのトレンド変化への対応など

5月▶キューサイ㈱の株式譲渡完了および株式譲渡益の計上▶自動物流センター「埼玉メガDC」の稼働開始▶
「からだおだやか茶W」
発売▶
「綾鷹カフェ 抹茶ラテ」
発売

により、売上への影響を最小限に抑えてまいりました。また、向けた自動 物 流センター「 埼 玉メガディストリビューション

ホルダーのみなさまにとっての価値を創出し続けてまいります。

フリー・キャッシュ・フローの継続的な向上に努めており、資本の適切な管理・運用の観点から、子会社株式の売却をはじめと強化してまいりました。
四半期は新型コロナウイルス感染症のには一定の改善を実現し前年同期比

実施したことは、その一例です。

レーションのさらなる効率化や、アジャイルで柔軟な供給体制にの持続的な成長に向けて信念をもって変革を遂行し、ステーク

ダイバーシティ＆インクルージョンの推進などESGの取り組みも活動の早期再開に貢献すべく、社員、業務委託先、サプライヤー等を対象に新型コロナウイルスワクチンの職域接種をいち早くコントロール可能な分野に注力し、ベンディングチャネルのオペ

トピックス①へhttps://www.ccbj-holdings.com/ir/library/business.php(Japanese only)■ Website for shareholders and investors
Our website provides IR event schedules, financial information, and otherextensive IR information for shareholders and investors. We also provide timely
earnings announcements, news releases, and other notifications to registeredusers. We conduct earnings presentations in both Japanese and English, andarchive these for access at any time.
https://en.ccbj-holdings.com/ir/

Tokyo Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo 107-6211, Japan

当社の基本方針である安定配当の考えに基づき、1株当たり

今後の見通しにつきましては、売上収益は前年からの一定の回復を見込むものの、新型コロナウイルス感染症の影響による厳しい事業環境が継続することを見込んでおります。状況が正常化したときに、より利益を生み出せる体制の構築に引き続き成長に向け、下期も必要な投資を実行してまいります。

平素より当社への格別のご理解とご支援を賜り、誠にありがとう本年上期（1月1日〜6月30日）における国内清涼飲料市場

Coca-Cola Bottlers Japan Holdings Inc.

配当につきましては、前年の中間配当は、前例のない厳しいから、前年同期比61億円増の4億円の損失となりました。

同期比微増で推移したものとみています。
そのような中、当社はhttps://en.ccbji.co.jp/csv/doc.php

再編等を実施し、現時点で十分なキャッシュを創出できていると考えております。設備投資を含めた資本の投下についても、したことなどから、上期では前年同期比74億円減の148億円

証券コード：2579

Top「 wMessagei t hコロナ」において売 上の改 善を図るとともに、は、新型コロナウイルス感染症の影響継続などにより、前年

https://en.ccbj-holdings.com/ir/library/annualreview.php

する事業ポートフォリオの見直しや政策保有株式の売却、拠点コスト削減に取り組む一方、成長に向けて、前年同期に抑制したマーケティング投資や人材への投資を適正な水準で実行

2021年12月期 中間報告書（2021年1月1日〜2021年6月30日）

トップメッセージ

ANNUAL REVIEW
7月

トピックス①へ▶
「トポチコ ハードセルツァー」先行体験サンプリング実施

トピックス①へ

2021

Coca-Cola Bottlers Japan Holdings Inc.

Corporate Philosophy

Leadersʼ Perspective: Our Value Creation Story
Corporate Philosophy

Contents
Leadersʼ Perspective:
Our Value Creation Story
Corporate Philosophy

02

Top Message

03

Message from the CFO

06

Working Toward Sustainable GrowthOver the Medium to Long Term08

Coca-Cola Bottlers Japan
at a Glance
Overview of Coca-Cola Bottlers Japan

09

Financial and Sustainability Highlights

11

The Challenge of Value Creation
Value Creation Process

13

Commercial Activities

15

Supply Chain Initiatives

21

Initiatives for Digital Transformation (DX)23

Initiatives to Enhance Human Resources Management
25
and Organizational Strengths
Initiatives for Creating Shared Value (CSV)

27

Governance andFinancial Framework

01

Corporate Governance

31

Financial Information

41

Company Profile, etc.

45

02

Leadersʼ Perspective: Our Value Creation Story

Top Message

Top Message

Leverage the foundation
we have built and focus
on sustainable growth

Navigating Business in a Challenging Business Environment
The main occasions our customers enjoy our beverages are
immediately on purchase and at-home consumption. In
2020 as COVID-19 curbed consumer traffic, we were
acutely impacted in immediate consumption channels ofvending and convenience stores. Infection prevention
measures at restaurants and other establishments caused
volume to drop in the retail & food service channel. In
addition, intensified competition during a significant decline
in overall demand had a strong repercussions on ourearnings performance. In 2020, we lost over 100 billion yen
in sales revenue. In 2021, while volume recovered slightly
from the previous year, sales revenue declined somewhat
due to the extended state of emergency declaration andother factors.

Representative Director and President

Calin Dragan

The business environment of 2021 remained challenging due to limited numbers returning to Japanese streets as
COVID-19 continued to spread. This resulted in a continued competitive environment with a slow recovery in overall
demand. In this climate we focused on what we can control, and took measures to protect our business. We maintained
market share and implemented cost-saving initiatives across all areas of the business. Despite a muted businessperformance, we focused on building a foundation for growth. Our transformation prepares us to achieve strong growthby capturing demand when consumer traffic returns. Currently traffic is on a recovery trend, following the end ofgovernment measures to control COVID-19; however, new challenges have emerged such as the global rise incommodity prices. The business environment is expected to remain challenging in 2022, but we will focus on activities
that return us to a growth trajectory and achieve sustainable growth in the future. We continue to work toward achieving
business growth and creating shared value with society through the value creation process of our mission.

Deliver Happy Moments to Everyone while Creating Value
2021 saw the 135th anniversary of Coca-Colaʼs birth inAtlanta, Georgia, USA, and the 65th anniversary of its
first sales in Japan. Then this April, Coca-Cola Bottlers
Japan Holdings celebrated its fifth anniversary. We
would like to express our sincere gratitude to all of our
stakeholders who have supported our business.

Our mission is to deliver happy moments to everyone
while creating value. Beverages are lifestyle necessities
and also small luxuries to enjoy. The Coca-Cola system
in Japan currently offers about 40 brands, and ourcompany has a product lineup of more than 600 SKUs.
As a total beverage company we not only deliver safe
products that consumers can drink with peace of mind,
but work to create new market opportunities while
meeting consumersʼ diversifying needs throughinnovation. The beverage market in Japan has changed
dramatically since COVID-19. We have responded
agilely to these changes while diligently conducting
business activity in line with our mission to deliver happy
moments to everyone through our products.

Our Business Model and Value Creation Process
We are committed to leveraging our management
resources to continue delivering value to stakeholders.
Since our 2017 integration we have pursued a businessstrategy that leverages our scale as the largest
Coca-Cola bottler in Japan and one of the biggest in theworld. Furthermore, we are maximizing value provided
by building a solid value chain from sales planning toprocurement, product manufacturing, logistics, sales aswell as recycling. The Coca-Cola Company andCoca-Cola (Japan) Company are essential to our value

03

chain. They supply concentrate from which our products
are made and are responsible for product planning,development, and marketing. We work closely with
Coca-Cola (Japan) Company in all areas to create an
integrated value chain that maximizes the value of ourofferings in the Japanese market. We believe that the
deepening of our collaboration with the company since2017 has contributed to faster decision-making,enhanced innovation, and strengthened strategy
execution throughout the Coca-Cola system in Japan.

In this demanding business environment, we have focusedon protecting our business while building a foundation forgrowth. We have continued transformation to enable us toachieve sustainable growth once the market normalizes. In
2020, we addressed an unprecedented situation with cost
reductions in all aspects of the business. In 2021, amid thecontinued challenges, we maintained short-term cost
control discipline, but also focused on making appropriate
levels of marketing and human capital investment for
medium- and long-term growth. Throughout these periods,
we implement activities to capture at-home consumption
demand growth that grew during COVID-19, and drove
efforts to strengthen market share base and drasticallytransform our business modelʼs high fixed costs, all basedon the strategy of focusing on what we can control.

Our Actions are Yielding Results
Initiatives implemented during COVID-19 are showing
concrete results. As part of our innovation efforts, we
introduced new products, such as Fanta Premium, Costa
Coffee, Yakan no Mugicha from Hajime, Ayataka Cafe, andYowanai Lemon-dou. These are all popular with customers
and contributing to volume growth. In the profitable vending
channel, we continued to achieve year-on-year value share
increase for 37 consecutive months (as of April 2022). I am
confident that we are well-positioned to capture demand
recovery for growth as we saw strong volume growth invending after the lifting of state of emergency in 2021.
Transformation efforts have resulted in a stronger businessfoundation. We have achieved over 20 billion yen ofrecurring cost savings in the past two years, predominantly
in fixed costs.

We have been transforming our operation model forvending, expanding manufacturing capacity, reorganizing
our logistics network through Mega DCs (distribution
centers), streamlining supply chain and back-office,standardizing processes, and accelerating digitalization. We
have effected transformation in all business areas, based on
the principle that business as usual is not an option.
We have already achieved results in cost savings, and weare confident that these achievements will become an
important foundation of sustainable growth.
With the lifting of COVID-19 restrictions in March 2022,
consumer traffic is on a recovery trend. Our first quartervolume grew by 4% year-on-year, and we believe that ourachieved volume growth exceeds the market. The initiatives
we focused on in a challenging environment are graduallyshowing results.

Further Action Needed for Sustainable Medium- and Long-term Growth
The beverage industry business environment continues tobe challenging with changing consumer behavior onchannels and packaging, and an increasingly competitiveenvironment. These have all had a significant impact on ourbusiness from a profitability standpoint. We are also facing
new challenges that need to be addressed, such as the risein global commodity and crude oil prices, and Yen depreciation.
Under such circumstances, we are focused on
implementing appropriate pricing and promotional activities
to strengthen our earnings base. As part of this strategy, we

have decided and implemented shipment price revisions
ahead of the industry for large PET bottle products in May
2022. In June, we announced that we will revise thesuggested retail price of small packages for shipments
starting from October 1, 2022.
We will communicate clearly with consumers and customers
to ensure understanding of such changes. By rebuilding ourrevenue base, we will offer more value-added products andattractive promotions in the future.

04

Leadersʼ Perspective: Our Value Creation Story

Top Message
Shift Beyond Protecting the Business toward Growth
During COVID-19, While prioritizing to protect ourbusiness, we have worked to build a foundation for the
future. Going forward, we must shift management
strategy toward growth. We position 2022 as the year ofbuilding a foundation of sustainable growth. We will

Top Message ／ Message from the CFO

achieve sales growth by capturing the recovery incustomer traffic, improve our profitability base andadvance transformation. To show our way forward, weare developing a mid-term business plan and will
announce this once details are finalized.

Message from the CFO

Representative Director & Vice President,
Chief Financial Officer

Bjorn Ivar Ulgenes

Develop Human Resources that Support Business Growth
I am certain that people and organizational strength
constitute the principal foundations of our business. In
addition to training sales representatives who meet ourconsumers and customers as beverage professionals,
we are promoting and developing international talent ineach function. We are building an organizational
structure that allows each employee to maximize theircapabilities. We offer learning opportunities throughhuman resource development programs, fostering a
result-oriented culture, strengthening diversity andinclusion, and promoting diverse work styles. We
continue to actively invest in our people to develop
competitive human capital that is the strength and thefuture of our company.

Commit to Creating Shared Value (CSV) and Sustainability
We place Creating Shared Value (CSV) at the core of ourmanagement as we engage in initiatives that benefit
society. Together with The Coca-Cola (Japan) Company,
we formulated a Sustainability Framework that identified
three platforms of Inclusion, Communities, andResources, and nine priority issues to be addressed, as
an aligned framework of the Coca-Cola system in Japan.
We are working in all areas to achieve our unique
non-financial goal CSV Goals. These targets are linked
to the Sustainable Development Goals (SDGs) and weare actively working to achieving them.
In addition, we are improving the ratio of sustainable
materials usage in PET bottles. This is to achieve our2030 Packaging Vision of the Coca-Cola system inJapan and The Coca-Cola Companyʼs global goal of aWorld Without Waste. We achieved a 40 % ratio ofsustainable materials as of the end of 2021. We willfurther drive efforts to achieve the 50% target in 2022.
Furthermore, we have set a reduction target forgreenhouse gas (GHG) emissions, a critical global
issue, throughout the Coca-Cola system in Japan. To
achieve these targets, we will work on PET bottle related
initiatives, efficient logistics and utilization of renewableenergy.
We endorse the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD). We will
work to further enhance our analysis of the financial
impact of risks and opportunities related to climatechange, as well as our disclosure of measures toaddress them.

In 2021, domestic non-alcoholic ready-to-drink (NARTD)
beverage industry growth was estimated to show only aslight increase on the previous year. Although there was
improvement in people traffic when the COVID-19 state of
emergency declaration was lifted, we did not see a fullrecovery. Prolonged state of emergency declarations andrecord heavy rainfall in our peak season all impacted
demand. In these conditions we have begun a fundamental
transformation of our business, based on the principles offocusing on what we can control while responding to thevolatility in demand and channel trends triggered by
COVID-19.
As for business performance in 2021, sales volumes
increased from the previous year with traffic recovery
following the lifting of the state of emergency declaration.
However, business income decreased from the previous
year with the lower revenue per case caused by changes in
consumer behavior and severe competition. The
implementation of appropriate marketing and human capitalvaluable. We will continue to deepen our engagement tomake progress towards our mission to deliver happy
moments to everyone while creating value.
I thank you for your continued support of our company.

In 2022, we expect a level of growth in the domestic
beverage market with the traffic recovery of 2021. However,the challenging business environment is expected tocontinue due to the continued impact of changing consumer
behavior. Such changes include the shift in drinking
occasions from immediate consumption to at-home. Other
factors include a shift in purchasing channels as well as
continued intense competition and rising global commodity
and crude oil prices, and Yen depreciation.
For our 2022 plan, we forecast 4.3% year-on-year growth inrevenues to 819.7 billion yen and a business income loss of
14.6 billion yen. This is a similar level to the previous year.
Although we expect a cost increase of more than 10 billion
yen due to rising commodity prices, the continued
challenging business environment, and the cycling ofapproximately 18 billion in temporary cost savings
implemented in 2021. We aim to achieve 2% volume growthover the previous year by implementing sales activities tocapture growth opportunities arising from returning traffic.

05

investment, restrained in the previous year, also had an
impact.
In this challenging business environment, we have taken
measures to minimize the impact to our topline. Suchmeasure include rolling out new products and responding tochanging trends in each channel. In addition, we havepushed forward with our transformation to evolve thevending operation model, reallocate product inventories andconsolidate distribution bases around the Saitama Mega DC
to optimize distribution in the Kanto region. We havestreamlined our supply chain structure to achieve low-cost
operations, improved operational efficiency throughcompany-wide digital transformation (DX), and promoted
new work styles to build a foundation for profitable growthwhen the market normalizes. These efforts have produced
steady results, mitigating COVID-19ʼs impact and reducing
short-term costs to protect our business and build afoundation for future growth.

2022 Business Plan and Outlook

Dialogue with Stakeholders Improves Management
I would like to reflect the voices of our shareholders,investors, and other stakeholders to our business
management. I view our interaction at events such as theAnnual General Meeting of Shareholders, earnings
presentations, individual meetings, domestic andoverseas events, and other opportunities to be extremely

Summary of 2021

We aim to achieve the same level of business income as theprevious year by further promoting transformation andimplementing initiatives to improve the earnings base, suchas price revisions and control of marketing expenses.
In commercial, we are rolling out new products andresponding to diversifying consumer needs. We are focusedon both growth and profitability. As part of suchprofitability-focused pricing strategy initiatives, we revised
the shipping price of large PET bottle products in May. In
manufacturing and logistics, we are working to reorganize
our supply chain network, which will be the foundation forsustainable growth. We are realizing stable function in our
Saitama Mega DC, which began operations in 2021. We
expect a smooth launch of the Akashi Mega DC, scheduled
to start operations in July 2022. In conjunction with ourMega DCs we are consolidating sales and logistics centers
as well as reducing and optimizing product inventories.

06

Working Toward Sustainable GrowthOver the Medium to Long Term

Message from the CFO

base that will allow steady, sustainable growth. Our
business aims to achieve low-cost operations throughfurther transformation. In addition, we are currently
developing a mid-term business plan to achieve sustainablegrowth over the medium to long term in a post-COVID world.

The past few years have been a difficult period in terms ofbusiness performance. We believe that it is urgent to return
to a growth trajectory. To achieve this, we have positioned
2022 as the Year of Establishing a Foundation for
Sustainable Growth. We will focus on building a revenue〈2022 Targets〉
Market share

Recurring cost savings

5
Value share growth in vending

Balanced approach in OTC withsustainable pricing in mind

B yen

Transformation continues todeliver savings

Capex

46

B yen

expanding investments gradually

In 2022 and beyond, we will shift our focus of business from protection to growth. Positioning creation of shareholder value,
growth, and sustainability as core areas, we will show a roadmap for achieving sustainable growth.

2017-2019

Integration■ Consolidated

legacy bottlers

Not including IFRS16 non cash items

Depreciation

Annual dividends

47 B yen

50 yen / share

Controlled capex spending andSolid balance sheet allowing

decrease YoY

stable dividend payout

bottle to 100% sustainable PET bottle■ Capture demand through healthy

share base

■ Protecting our market share■ Realize lowest cost operation leveraging■ Agile decision making for rapid changes

foundation built by transformation■ Built resilient business foundation

revision implemented; further action
evaluated

Revenue & Margin Growth

Strategic Pricing & Profitability

Good Stewardship of Capital

50 ％bottle, switching from virgin PET

2023 Onwards
Sustainable Growth2020 -2022
Driving transformation evenin challenge environment■ Actions for profitable base: L-PET price

Sustainable PET Ratio

About 60% reduction in CO₂ per

Message from the CFO ／ Working Toward Sustainable GrowthOver the Medium to Long Term

Since the business integration in 2017, we have implemented our business operations amidst a challenging businessenvironment symbolized by rapid changes in the market environment amid the sharp increase in aseptic products, theshutdown of plant operations due to damages incurred from the torrential rains that hit Western Japan, and the impacts of the
COVID-19 pandemic. Since 2020 and the outbreak of the COVID-19 pandemic, in particular, we have carried out businessactivities with priority given to protecting our business while addressing the rapid changes in the business environment using
swift decision making. Additionally, we have implemented a number of major measures for transformations that will contribute tofuture growth, mainly in commercial and supply chain, focusing on areas that can be controlled. We have also raised prices toshore up our earnings base.

Control capex and monitor
market environment for

Leadersʼ Perspective: Our Value Creation Story

Long-term Capex Control

Shareholder Value
Creation

Achieved through earnings
growth and by being goodstewards of capital

GrowthHealthy value share growthfor solid profit foundation

Sustainability
Focus on CSV initiatives forsustainable growth

Transformation & Cost Efficiency

Ensure delivery of 35B, evaluating additional savings
Change in Industry
Dynamic

COVID-19 / Commodity Impact

New Normal

Sustainable materials refers to the total bottle-to-bottle
recycled PET materials and plant-derived PET materials

Financial Framework for Shareholder Value Creation
We are developing Investment for growth and Good
stewardship of capital to create shareholder value. Based on
this strategic direction, we are focusing on key initiatives
such as investments toward a foundation for market share
growth, establishing a resilient cost structure that enables us
to respond to environment changes with agility, improving
efficiency by standardizing business processes andpromoting DX, and improving balance sheet as goodstewards of capital.
For future growth, in addition to focusing management
resources on the core beverage business, we would like togradually return to the growth investment restrained during
COVID-19. Capital investment in 2022 is forecast to
increase by 7 billion yen from the previous year to 46 billion
yen. We continue to invest in key transformation initiatives
that will lead to mid-to long-term growth. We will look foropportunities to increase our investment in vending
machines while monitoring the market environment. In
addition, we have been selling off idle assets that emerge inthe process of transformation, and the gradual sale of07

cross-held shares in line with the Corporate GovernanceCode. In 2022, based on the idea of being Good stewardsof capital, we will strive to maintain a strong financial
structure, prioritize capital allocation, secure appropriate
cash flows and execute capital investment with an ROI
focus. For dividends, we will strive to maintain stabledividends and, in the future, aim to improve shareholder
value in line with our growth. We will consider all measuresthat will lead to an increase in shareholder returns. In 2022,
we plan to pay the same amount as in 2021 of 50 yen per
share.

Implemented price revision for large PET bottle products
We implemented price revisions of large PET bottle products (excluding some products) for shipments starting fromMay 1, 2022. At present, we are experiencing significant cost pressures from the soaring cost of raw materials,
packaging materials and logistics worldwide, and monitoring the trend carefully as it could continue to rise.
Although we are working diligently to streamline manufacturing and business operations, we will continue to findways to address further cost increases, as improving our earnings base is an urgent task that must be addressed toachieve sustainable growth into the future. In response to these circumstances, in June, we announced the revisionof the suggested retail price of small packages for shipments starting from October 1, 2022.
We continue working to provide safe and secure products and services with the highest level of quality in order toaddress the varied nature of consumer needs.

Since our integration in 2017, we have implemented
financial initiatives such as stable dividend payments, sharebuybacks and issuance of corporate bonds. We are
optimizing the balance sheet with the aim of improving
shareholder value. Although the difficult businessenvironment is expected to continue in 2022, we will further
continue our transformation, strengthen the foundation of
agile and resilient business, and continue efforts to improve
profitability to enhance corporate value.
08

Coca-Cola Bottlers Japan at a Glance

Overview of Coca-Cola Bottlers Japan

Sales area

Consumers in sales area

Overview of Coca-Cola Bottlers Japan

Brands (As of April 2021)

About

Tokyo, Osaka,
Kyoto and35 prefectures

Annual sales volume

112

About

40

SKUs
Over

600

million(About 51 million households)

Sales coverage by volume

Portfolio (Sales volume base)
Other
Juice

About

90

500
cases

%
About
of the Coca-Cola system
in JapanmillionCustomer outlets

CoffeeAbout

Vending machines

250

K

About

Sales centers

Manufacturing plants

700

Fleet vehicles(Including distribution centers)

17

K

plantsEmployees(Not including temporary workers)

Sparkling
Category

Tea

Water
SportsAbout

12,500About

320

15,000
About

Note: As of Dec. 2021 unless stated otherwise

Key Brands by Beverage Category
Sparkling

Tea

History of our Company
Spor ts

Coca-Cola Bottlers in Japan other than CCBJH(Background to major mergers and consolidation)
Five bottlers, including our Company, currently produce and sell Coca-Cola products
in Japan. Since 1999, we have expanded the scale of our business throughintegration to become Japanʼs largest bottler, handling over 90% of the sales volume

Hokkaido Coca-Cola Bottling Co., Ltd.
Michinoku Coca-Cola Bottling Co., Ltd.
Hokuriku Coca-Cola Bottling Co., Ltd.
Okinawa Coca-Cola Bottling Co., Ltd.

in Japan.

Wate r09

Cof fe e

Juice

1998

March 2017bottlers

bottlers

17

6

From April 20175bottlers

10Coca-Cola Bottlers Japan at a Glance

Financial and Sustainability Highlights

Financial and Sustainability Highlights

Financial Highlights (IFRS)Revenue

785.8
837.1

927.3

Sustainability Highlights
Business Income

billion yen

914.8

792.0

785.8 (billion)-14.7

Inclusion

billion yen

40.2

15.0

2017

2017

2018

2019

2020

2017

-58.0

2018

(billion)

-4.7

-2.5

2020

2021

-14.7

2020

118.7

113.8

2018

126.4

110.5

(billion)

2019

2020

billion yen

53.1

40.2

2019

2020

42.5
81.6

65.5

2018

22％

2.39％

164

Communities
Disaster support
vending machines

Donation of products
through food banks

Number of
SDGs Seminars Held

災害情報・・・

1,062

3,200 11,000
Over

About

cases

24

seminarsMore than 4,900 participants

2021

Water used per 1L of product

EBITDA

103.9

2017

6.4％

Resources

Capital Expenditure

42.5(As of June 1, 2021)

billion yen

2019

40. 2

(As of the end of March, 2022)

Disaster relief
agreements

65.5

2017

(As of the end of January, 2022)

Number of employees
who used childcare leave* “Report on the Employment Status of People with Disabilities” submitted to Director of the Public Employment Security Office with jurisdiction.

Cash and Cash Equivalents at End of Fiscal Year

110.5

Employment of people
with disabilities*

Surpassed initial 6% target andset a new target of 20 % by 2030.

2021

billion yen

22.0

10.1

2019

2021

Net Income Attributable to Owners of the Parent

- 2.5

2018

Women on the Boardof Directors(billion)

23.3

0.2

Women in manager
positions

2021

70.8

72.0

billion yen

59.1
42.5 (billion)

2018

2019

+ 0 . 01L/L(YoY)

Recycling rate of industrial waste(billion)2017

3.24 L/L

2020

99.9 ％

2021

Energy used per 1L of product0. 87MJ/L- 0 . 01MJ/L(YoY)

Ratio of sustainable materials* used in PET bottles

40 ％*Sustainable materials refers to the total bottle-to-bottle recycled PET materials
and plant-derived PET materials.
Note: As of Dec. 2021 unless stated otherwise

Note1 : In December 2020, the Healthcare and Skincare business has been classified as a discontinued operation as a result of the decision to sell all shares in Qʼsai held by the Company. As a result, revenue,
Business Income and EBITDA for 2020 and 2021 are the amounts for continuing operations excluding discontinued operations. This sale of shares was completed on February 1, 2021.
Note2 : We introduce Business Income as a measure of our underlying or recurring business performance after the adoption of IFRS. Business Income deducts cost of goods and SG&A from revenue and includes
other income and expenses which we believe are recurring in nature.
Note3 : EBITDA = Business Income + depreciation and amortization expenses

11

See the CSV Report for details

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

12The Challenge of Value Creation

Value Creation Process

Value Creation Process

D e live r happy mome nts to eve r yone while cr e ating value
Input

Business Model

Main capital / Strengths

21brands▶We are working closely together and collaborating in all aspects of the value chain for the sustainable growth of

About 225

the beverage business in Japan.

Beverages
for Life(equipment, etc.)

Robust supply chain and sales foundation for realizing
innovation and solutions provision
Vending machines

Sa
le
s

About 320 About 700 K

Beverages in tune
with peopleʼs life and daily living

Procurem
ent

g
nin
n
a
pl

Human capital

ing
actur
nuf
ma

MarketingDiverse workforce (respect for diversity, global talent,
beverage pros) and foundation for work styles where
employees maximize their skills
Employees

Coca-Cola (Japan)
Cooperation
Company
Value Chain

Resea

Our Value Chainrch

About15 , 000

Production o
f bev
erag
eb
a

se

on

ct

an

i

12,993thousand ㎥

P la n nin gll e

CSV promotion system and awareness of social
responsibilities as a company that uses earthʼs limited
resources
Water source replenishment
Water usage

e nt

Co

Natural capital

Lo

v

pm

353％

dr

e cy

c li ngr
S ale s / M ake tSocial capital
Consumers in sales area

Sales area

Tokyo, Osaka, Kyoto
and 35 prefectures

About112 million

Human resource
management

Robust financial foundation
Total assets

Approx.
¥870billion
13

RatingA+（R&I）/AA-（JCR）

Business process
management

IT platform
DX promotion system

Sustainability framework
CSV promotion system

Suppliers▶Appropriate transactions andresponsible procurement

Safe andsecureEmployees▶Improving employee satisfaction byhaving the Company and employees
learn together and share profits▶Developing workplaces where
employees can fully harness theirskills

AlwaysnearbyMitigation ofenvironmental
impactDelicious

Engagement
Partnership

Totally
new experiences
Innovation

Communities▶Realization of CSV that contributes tobusiness growth and community
development

NaturalEnvironment▶Mitigating environmental impacts
through formation of a low-carbon
society and recycling-oriented society▶Contributing to increased environmental
awareness among consumers

ERM system
BCP

Corporate Philosophy (Mission, Vision, and Values)

Continuing tostrengthen the cycleof corporate valueenhancement
Mutual growth from
economic value andsocial value
Enhancing capitalthat will drive value
creation
Creating economic value▶Business growth led by
growth and streamlining▶Acquisition of reinvestable
resources

Sales and profit growth

HealthyFoundation for sustainable growth

Corporate governance

Financial capital

Refreshment

in g* Water usage refers to the total amount of water used in manufacturing
processes (excluding water as a product)

Solid relationships of trust with stakeholders including
communities

About 40 brands,
more than
600 products

gis

de

tic s

and

el o

▶Contributing to expanded business
opportunities for business partners
through the provision of solutions
through beverages (B-to-B)▶Building long-term relationships andexpanding business opportunities
through sustainable growth of theCompany

P

ct
du
ro

17plants▶Enhancing wellness and loyalty
through the provision of high quality
products and services

planning and development, and consumer marketing activities such as advertising.

Coca-Cola bottlers worldwide

Sales / distribution centersand(consumers
business partners)

procure other raw materials and supplies, manufacture, distribute, and sell final products, and engage insales-driven marketing activities. Coca-Cola (Japan) Co., Ltd. is responsible for supply of concentrate, product

Manufactured capital

Manufacturing plants

Customers▶We use concentrate, which is the main raw material for products procured from Coca-Cola (Japan) Co., Ltd.,

Global brands such as Coca-Cola and access to theworldwide Coca-Cola system network

Ideal Image

Value provided

Partnership with The Coca-Cola Company and Coca-Cola (Japan) Company

Intellectual capitalBillion dollar brands

Output & Outcome

Shareholders /Investors

Transformation andcost efficiency
Good stewardship of capital

Creating social value▶Returning profits to society
through CSV▶Contribution to SDGs

〈CSV Goals〉
InclusionCommunities

Resources▶Increasing share value through profit
growth and enhancement ofshareholder returns

14

The Challenge of Value Creation

Commercial Activities

Commercial Activities

The NARTD Market in JapanThe NARTD market in Japan has been growing steadily, with the market scale expanding by about 1.7 times over the past 26 years.

Message from
Head of Commercial
Commercial engages in finely tuned sales and marketing
activities on a daily basis to ensure more customers andconsumers choose Coca-Cola products. Since ourestablishment in 2017, we partnered with our customers todeliver happy moments to our consumers, we have worked toestablish a top class sales team, digitalize our sales andmarketing activities and enhance our commercial capabilities.
We have also worked to innovate operational processes witha focus on achieving simple, low-cost operations whileproviding high quality services.
In 2021, the business environment was as challenging as in
2020, with slow growth in total demand against a backdropof delayed recovery in the traffic due to the continuing impact
of COVID-19. Nevertheless, we managed to increase sales
volume and improve market share compared to 2020 bylaunching new products such as Yakan no Mugicha from
Hajime, Ayataka Café Matcha Latte and COSTA Coffee, andexecuting a commercial strategy adapted to consumption
trends, such as growing demand for at-home consumption.
We have achieved positive results in the areas we havefocused on despite challenging market conditions.
For 2022, the pillars of our profitable growth strategies are
Expand Portfolio edge, Margin focused Pricing, Growththrough Vending Channel and Customer Partnership &Executive Officer,
Chief Commercial Officer［Trends in Market Size (Production volume)］

Costin Mandrea

1995
Other

We are launching a number of new products, such as a lemon
sparkling beverage Fanta Premier Lemon, Ayataka Café
Hojicha Latte in the Ayataka Café series, and non-alcohol
Yowanai Lemon-dou, making steady progress with growing
sales. We are also working on appropriate pricing andcontrolling marketing investments to improve our earnings
base. As part of this, shipment price revisions started withlarge PET bottles, implemented in May as planned, with theunderstanding for the customers, and will continue throughout
the year. Furthermore, in the vending channel, we haveincreased our value market share for 37 consecutive months(as of April 2022), indicating the success of our initiatives todate. We are enhancing our promotions through Coke ON andinstallation of vending machines with the increase in consumer
traffic to achieve steady growth.
We always say we have only two types of jobs: Sell or Help
Selling. Entire organization is living by this principle, working
every day to fulfill our mission of deliver happy moments toeveryone while creating value.

〈2022 Commercial Strategic Pillars〉
Expand Portfolio Edge

Margin Focused Pricing

Juice

Execution Excellence. Each of these initiatives is making
steady progress, as we have been able to capture
opportunities for increased demand resulting from the recent
recovery in consumer traffic as well as benefiting from thecommercial transformation efforts from last 2 years.

16%
Coffee7%

Category

19%
4%

23%

Revenue recovery by permachine growth and VM
placement, supported byhigh market share base

Focus on core to enhancepresence for solid baseStrengthen
consumer-oriented marketinginvestment

Leverage our digital platform"Coke ON" and update
functions for improved
engagement

Capture consumer / social
needs with packaging
Expansion into white space

15

Appropriate level ofpromotion
Price revision and continuous
monitoring

Improve operations further
through DX

Accelerate DX across various
areas of analysis, planning,
operation and execution
Transformation continues
Collaboration with Coca-Cola
Japan to leverage Cokesystem network

17%

Coffee14%

Tea(Black tea included)

Category

Tea(Black tea included)

29%

Water

19%

Sports8%Sports6%

25,00022,12520,00015,00012,732

10,0005,000

Customer Management &Execution ExcellenceStrengthen customer
relationships with proposal
type sales

Sparkling(thousand kl)

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year

(Source: Japan Soft Drink Association, Statistics on Soft Drinks and Bottled Water)

Retail &FoodTargeted marketinginvestments focused on
growth channels andcategories

9%6%

Sparkling［CCBJI Sales Volume (2021 results)］

High quality innovation todrive growth in volume /revenue / market share andpremiumization

Other

Juice

24%

Water

0

Growth throughVending Channel

2021

14%
Vending

Online

4%

Juice

26%

Channel24%

5%Supermarket

Drugstore &Discounter

17%

4%

Coffee

20%
11%

15%

Sports

9%

Other

2% 5%

Sparkling

26%

Category

Water

Convenience Store

Powder

Other

Tea

25%

Syrup
Bottle can

8%

5%
Can
12%

S-PET

Package

L-PET

25%

39%

M-PET

4%

See earnings presentation materials for details

https://en.ccbj-holdings.com/ir/library/presentation.php

16

The Challenge of Value Creation

Commercial Activities

Commercial Activities

Initiatives in Each Category
CoffeeSparkling

Coca-Cola lucky bottles with fortune slips
Based on the concept of Bringing a bit of happinessto your day, we released Coca-Cola lucky bottles in
the New Year. Part of a Japanese New Year tradition,
each bottle came with a fortune slip QR code
enclosed. The codes allowed customers to draw oneof 57 different augmented reality (AR) fortunes. In
parallel, we ran a lottery where consumers could win
prizes according to the results of their fortune slip.
These lucky bottles were rolled out for Coca-Cola,
Coca-Cola Zero and Coca-Cola Zero Caffeine.

Fanta Premier Lemon

Launched lemon flavor in the popular Fanta Premier
Series. Fanta Premier Lemon is a lemon-flavored
carbonated beverage targeting adults. It features a
refreshingly sweet and sour taste that highlights theslightly bitter essence of lemons. Made with 11%lemon juice and lemon peel extract, the beveragedelivers a full-bodied flavor that is not overly sweet.

We revamped the packaging of Europeʼs number one cafe brand
COSTA coffee. We also introduced a new 280ml size for Blackand Cafe Latte versions sold exclusively in vending machines.
The barista quality taste and finely-brewed ingredients will satisfy
coffee drinkers who regularly drink hand-brewed coffee.

Released
on

April

25

From the Ayataka Café line, which had reached the
one-year anniversary since its release, the second
flavor Ayataka Café Hojicha Latte has been introduced.
As with the Matcha Latte version, select high-quality
ingredients and unique production methods are used
to create Hojicha Latte with the supervision of
traditional tea merchants Kanbayashi Shunsho Honten
and expert coffee roasters Sarutahiko Coffee. Hojicha
Latte uses just the right amount of 100% domestic
powdered Hojicha, and allows you to enjoy an elegant
milk flavor that complements the taste of Hojicha.

17

Released
on

March

21

*According to Allegraʼs 2021 World Coffee Portal

Alcohol

Tea

Ayataka Café Hojicha Latte

In January 2022, we revamped our Georgia brand campaign for
the first time in eight years. The new campaign kicked off with thebrand message Brightening your day. Georgia aims to be a brand that
supports people to move forward. Believing in the power of coffee andcontinuing to refine taste and quality, along with providing a fragrantand delicious cup, Georgia gives people the power to move forward
and supports a brighter day. We fully revamped Georgia Black,
Georgia Kaoru Black, and Georgia Shot & Break Black in February,
followed by Georgia Japan Craftsman series in March.

Revamped COSTA Coffee

Revamped Kochakaden to mark the brandʼs 30th anniversary
Kocha Kaden is an authentic and high-quality tea
brand that offers a wide variety of flavors, made withcarefully selected ingredients and a special
processing step that makes it delicious. The brandcelebrated their 30th anniversary in 2022, revamping
Kochakaden Royal Milk Tea, Craftea Zeitakushibori
Peach Tea, and Orange Tea, achieving an even morehigh-quality taste with better ingredients andmanufacturing methods. For the 30th anniversary,
specially-designed 30th anniversary packaging was
released in commemoration.

Revamped Georgia brand campaign

Released
on

March

7

Released
on

April

4

The premium lemon sour Lemon-dou

In March 2022, we launched three new products under the popular Lemon-dou brand. These include Uchiwari Lemon,featuring a premium lemon sour taste that can be enjoyed at home, Umashio Lemon, offering a mellow taste with a hint of
Setouchi sea salt, and Muto Lemon, free of sugar and sweeteners for a simple yet great taste. Together with Teiban Lemon,
Hachimitsu Lemon and Oni Lemon, which also underwent a packaging redesign, consumers can now enjoy their daily evening
drink according to mood and scene. In addition to focusing on the over-the-counter channel, we will promote activities tocapture opportunities in the retail food channel in order to further expand our presence in the alcohol business.
Releasedon

Released
on

28

14

March

March

TOPICSEntered non-alcohol beverages market with launch of Yowanai Lemon-dou

Releasedon

February21

We released a non-alcohol beverage brand Yowanai Lemon-dou delivering the authentic
taste of lemon sour without the alcohol. Yowanai Lemon-dou is a non-alcohol beverage
brand with the taste of lemon sour based on the know-how and experience of specialist
lemon sour beverage brand Lemon-dou. Yowanai Lemon-dou delivers the authentic lemonsour taste using a proprietary manufacturing method that blends high quality lemon juicewith the spices used in gin.This non-alcohol beverage gives many consumers a new
choice when it comes to days when they cannot drink or choose not to drink.The package
is predominantly white and features a maekake apron motif, while the design clearly
indicates that the product is a non-alcohol beverage.

18

The Challenge of Value Creation

Commercial Activities

Commercial Activities

Initiatives by Main Channel
Vending (Vending Machines)

The vending channel is a retail channel through which we sell products directly to consumers through our approximately
700,000 vending machines. We are working to improve the vending experience by installing new machines, effectively
introducing new & core products, as well as exclusive drinks. This ensures an assortment that reflects the character of theinstallation location. We also implement effective marketing programs using the smartphone app Coke ON.
In 2021, we focused on vending machine allocation with an eye toward profitability, such as by utilizing existing assets whilecurtailing investments including purchases of new vending machines. In addition, we worked to increase the number of vending
machines compatible with Coke ON and grow the service. We also worked to improve the efficiency of vending machine
operations by bringing vending machines online and utilizing digital
tools.
While the vending machine market continues to face challenges due tochanges in consumption trends in the wake of the COVID-19 pandemic,
our market share in 2021 grew from the previous year thanks to ourwork to strengthen our business foundation and flexible efforts inaccordance with changes in the environment.

Official Coca-Cola app Coke ON exceeds
35 million* downloads
Coke ON is an official Coca-Cola smartphone app that is both
great value and convenient. Users can earn free drinks bycollecting stamps through the app. Since its launch in April 2016,
we have added a number of new functions and services to thebasic service of collecting stamps to receive a free beverage
ticket. These services and functions provide great value andconvenient beverage experience, and include Coke ON Walk in
2018, where users can receive stamps by walking and cashless
payment function Coke ON Pay in 2019.
In April 2021 we launched Coke ON Pass, a subscription (flat-rate service) that gives users access to their favorite
beverages for a fixed monthly fee, and in December 2021, we launched a service where users can save their mostfrequented vending machines in the app. Users can then check their saved vending machines for new products andpopular products at any time. Looking ahead, we will continue to expand new services that are even more appealing
to our customers. *As of the end of March 2022

Launch of the New Culture Model Project to lead thestrengthening of the vending channelʼs organizational capabilities.

The Vending Business Management Division is working to fundamentally transform
its business model to achieve sustainable growth. We launched the New Culture
Model Project in October 2021 as part of this effort to form a sustainable andstrong organization. This project is focused on the human resources andorganizational aspects that will drive transformation efforts, with the theme of Free,
Flat, Fun. Our activities are based on the following principles: respecting thefree-minded ideas and opinions of project members; ensuring that everyone,
regardless of position, age, or gender, has an equal perspective and position; andensuring that each individual has the mindset of being a change maker. Focusing
on issues such as creating a culture of praise, flat communication, and developing
role models and middle managers, we are working on specific actions.

19Supermarkets, Drugstores & Discounters

Supermarkets, drugstores, and discounters make up our wholesale channel that delivers products to consumers throughproduct sales in-store and the creation of appealing sales floors. We are working to propose the optimal lineup according tosales floor and developing campaigns tailored to the season and special events.
In 2021, we worked to revitalize sales floors
through innovative promotions utilizing the 2020
Tokyo Olympics. In addition, in an effort to growdemand, we increased sales of 350ml PET and
700ml PET bottle products as packages of themost appropriate size according to customer
drinking opportunities, and increased sales by thecase in response to growing demand for homeconsumption.

Convenience Stores

Convenience stores are a wholesale channel that allows us to deliver goods toconsumers through easy-to-access locations. We are introducing new products
and conducting promotions with customer chain stores.
In 2021, we introduced new products and undertook product planning forspecific customer chains and limited promotions, in which we conductedhigh-profile sales promotions such as with prizes utilizing the Jujutsu Kaisen
content and the Nissin Donbei with Ayataka collaboration with anothermanufacturer.

Retail & Food Service (Kiosks, Restaurants etc.)

Retail & Food Service is a wholesale channel in which we sell products tocustomers operating stores, restaurants, liquor shops, and otherstores, and offer consumers products and opportunities forenjoying drinks.
In 2021, we expanded our sales space by focusing on new andcore products at retail stores and other outlets. We also proposed
promotions tailored to the business type of our customers. For
restaurants, we strengthened the sales of 250ml cans, a productexclusive to the food service channel, to meet the growing
demand for takeout and delivery services. We also focused on
the expansion of COSTA Coffee and the alcohol beverage Lemon-dou.

OnlineOnline is a channel where we deliver to consumers through online sales, marketing is done
through customersʼ websites. In response to the growing demand for beverages through online
shopping, we are working with our customers to expand the volume of our products offered, suchas by planning campaigns in collaboration with our customers.
In 2021, responding to the growth of home consumption demand, we rolled out labelless products
and grew bulk sales. We strengthened subscription programs to allow customers to purchaseproducts at a discount. We also expanded services allowing customers to select several products
and purchase in bulk.
20

The Challenge of Value Creation

Supply Chain Initiatives

Supply Chain Initiatives

Our Manufacturing and Distribution Sites
Akashi Mega DC (Hyogo Prefecture)
Scheduled to start operations in July 2022

Message from
Head of Supply Chain

Executive Officer,
Chief Supply Chain Officer

Bruce Herbert

Ibaraki Plant (Ibaraki Prefecture)

17

Iwatsuki Plant (Saitama Prefecture)

PlantsTama Plant (Tokyo)
Ebina Plant (Kanagawa Prefecture)

The Supply Chain Management Division is responsible forformulating and executing strategies for the entire Groupʼs
supply chain. We mainly manufacture, distribute, and sell
within our own Group, and the supply chain represents animportant management base. The Supply Chain
Management Division aims to build an efficient and lean
supply chain system in order to manufacture safe, secure,and high-quality products and deliver them to customers at
low cost. To that end, we are promoting initiatives to improve
productivity in each field, including planning, manufacturing,
distribution, and the systems that connect these, as well as
digitalization and automation.
In 2021, demand forecasting was very difficult due to theongoing COVID-19 pandemic. This only reaffirmed theimportance of creating a process and system that canfurther strengthen cooperation with commercial andrespond to demand fluctuations with agility. However webelieve that our continuous improvement and investment
throughout the supply chain has been successful. We are
now able to flexibly adjust product supply according tocustomer needs and minimize the extra cost burden.
In 2022, we will continue working to establish a robust

Procurement

High quality procurement by leveraging scale

Our main procured items include
concentrate that are the basis of products,
raw materials and materials related to
product manufacturing, and indirectmaterials such as sales equipment. The
concentrate is procured from Coca-Cola
Japan Co., Ltd. and uses anincidence-based pricing model. We
procure sugars, PET bottles, aluminum
cans, cardboard, vending machines, andother items from suppliers who comply
with our basic supplier and procurement
policies set globally by the Coca-Colasystem. We will promote joint procurement,
review the contract system, execute

21

supply network to achieve sustainable growth and low-cost
operations. In manufacturing, we are improving both thestable supply of products and production efficiencies. We
are achieving this through establishing a flexible system withenhanced capacity. We are working to supply products in atimely and low-cost manner by enhancing the linkage
between commercial and supply chain which still have room
for improvement. To achieve this we are utilizing digitaltechnology and acting with agility towards changes in theenvironment. In terms of distribution, the Saitama Mega DC,
an automated distribution center with one of the largest
storage and shipping capacities in Japan for the Coca-Cola
System, is operating in a stable manner. This coupled withthe smooth launch of Akashi Mega DC, which is planned tocommence operation ahead of schedule in July 2022,
along with the consolidation of sales and logistics centerssynchronized with these mega DC, we allow us to reduce
product inventory and achieve optimal allocation. Goingforward, we will continue to further promote cost reductionand efficiency initiatives throughout the supply chain, andstrive to build an efficient and lean supply chain system sothat we can deliver safe, secure, and high-quality products
to our customers.

hedging strategies in response tochanges in market conditions, reduce theweight and volume of containers, support
sustainable materials, etc., while reducing
costs and pursuing sustainableprocurement. We are implementing
procurement strategies in collaboration
with CEPG (Cross Enterprise Procurement
Group), a global procurement
organization of Coca-Cola system thatutilizes global scale and know-how, as
well as share successful case-studies.

Manufacturing

Daisen Plant(Tottori Prefecture)

Tosu Plant(Saga Prefecture)

Mega
DCs

Hiroshima Plant

Zao Plant(Hiroshima Prefecture)(Miyagi Prefecture)

Ebino Plant(Miyazaki Prefecture)

Hakushu Plant(Yamanashi Prefecture)

Komatsu Plant(Ehime Prefecture)

Kiyama Plant(Saga Prefecture)

Kumamoto Plant(Kumamoto Prefecture)

Tokai Plant

system with three plants in the area. On the
manufacturing process side, we are working
to deepen coordination between demand
forecasting, sales planning, andmanufacturing planning, and to promote
automation of manufacturing processes atplants.

Saitama Plant(Saitama Prefecture)(Aichi Prefecture)

Akashi Plant(Hyogo Prefecture)

Saitama Mega DC (Saitama Prefecture)in operation since February 2021

Automated warehouse

Automated picking system

Toward the expansion of our production capacity

We have 17 plants within our coveragearea, and we are working to build acompletely optimized supply chain
network while engaging in flexible
manufacturing at each plant. From 2019
to 2020, we completed seven new aseptic
lines in order to address the recent
increase in demand for aseptic products,
mainly non-carbonated beverages. We
actively introduce new technologies with aview to product innovation. We have also
continued to invest in production lines foralcohol products, which have seen an
increase in sales since our entry into themarket, and have built a manufacturing

2

Kyoto Plant(Kyoto Prefecture)

Distribution Toward the optimization of our distribution network
We are launching the latest automateddistribution center as part of our efforts tobuild a supply chain network that
achieves high quality, low cost, andstable supply. In 2021, we worked toestablish new operational processes toensure stable operations of the Saitama
Mega DC, one of the largest distribution
centers in the Coca-Cola system inJapan, with a storage capacity of about
60,000 pallets and an annual shipment
capacity of around 85 million cases. In
July 2022, Akashi Mega DC, a shipping
hub focused on the Kansai area, isscheduled to start operations. Along withthe restructuring of our distribution
network, we are consolidating sales andlogistics centers. These initiatives reduce
product inventories, optimize placement,
and optimize our asset holdings.

22

The Challenge of Value Creation

Initiatives for Digital Transformation (DX)

Initiatives for Digital Transformation (DX)

Promoting DX to Enhance Corporate Value
As a Total Beverage Company, we are promoting fundamental transformation of our business in order to quickly respond to diversifying consumer needs, in addition to delivering safe and secure products
to customers. Promotion of DX is an important measure, and through this, we are working to improve market competitiveness, efficiency, and productivity.

DX in the value chain
Sales Planning

Procurement

Utilization of AI and big data insales planning

Digitization of contracts

Product Manufacturing
Introduction of digital technology

Logistics

Automated warehouse systems
Introduction of robotics

Sales / Marketing

Utilization of smartphone app Coke ON
Utilization of AR and introduction of SFA*

Customers

Enhancing our ICT platform*Abbreviation of Sales Force Automation. It is a sales support system used for the purpose of improving the productivity and efficiency of sales activities.

DX Initiatives Examples

Product Manufacturing

Sales / Marketing

To achieve low-cost operations, we are introducing IoT systems for
manufacturing such as automatic conveyance of product packaging frommaterial warehouses and monitoring the operation of manufacturing facilities
using automatic retooling systems and remote monitoring systems.

Logistics
As part of our efficient warehouse operations, the Saitama Mega DC integrates
automated facilities including storage racks and picking systems. This same
system will also be deployed at Akashi Mega DC scheduled to start operationin 2022.

In the vending channel, we are working to provide a digital platform forcustomers through the deployment of the Coke ON smartphone app,construct big data infrastructure, and utilize AI in sales execution for
optimization of sales forecasting, route plan simulation, and productlineup. We have introduced a new smartphone app developed in-house,and have been working to build a system for performing operations suchas vending machine inventory management, which were previously
performed with a handheld terminal, at higher speed and at lower costusing a smartphone.
In the over-the-counter channel, we are working to utilize digitaltechnology by implementing management and analysis of customer
information using a sales support system, and utilizing augmented reality(AR) and image recognition apps during business negotiations.

Enhancing our ICT platform

Introduction of the integrated
ERP system

Introducing RPA*1 foroperational streamlining

Building an ICT platform andbusiness infrastructure

all areas centered around routine work. Currently, more thansmartphones and PCs equipped with web cameras, we

We have introduced an Enterprise Resource Planning (ERP)

Since 2018, we have been promoting the introduction of RPA in

inventory management, and customer service. By centrally

180 robots are in operation, and we have automated more thansystem called Cokeone+ that covers back office support,

managing & visualizing information and reducing manualand redundant data entry, we are helping to enhance

management analysis capabilities, improve business quality
and processes, and boost
productivity & efficiency.

100,000 hours*2 of annual operations.

To accelerate operational efficiency using digital technologies,
including RPA, we hold RPA Development Skills Training andother initiatives to empower each employee toacquire digital skills and promote operational
improvement.

*1 RPA (Robotic Process Automation)*2 As of December 31, 2021

23

By utilizing ICT, such as providing all employees withare enabling flexible work styles, such as telecommuting
and directly return to home directly from customer visits.
In addition, the Company is working on the use of AI in
the internal inquiry process and the work for paperless
operation of contract

management to reduce

workloads and labor savings.

Strengthening security
countermeasures

We are implementing security countermeasures to protect IT
devices from the potential risks that come with increased
digitalization. In addition to protecting the network throughfirewalls, we have introduced EDR*1 to protect individual IT
devices, and logs are visualized using SIEM*2 based on theaccess history obtained from these devices.
*1 Endpoint Detection and Response, a technology that
continuously monitors and responds to threats at theendpoints of a computer system.
* 2 Security Information and Event Management, a mechanismthat accumulates and manages records (logs) of the operating
status of devices and software, quickly detects and analyzes
events that pose security threats, automatically detects
anomalies including information leaks, and quickly notifies
administrators.

24

Initiatives to Enhance Human Resources Management and Organizational Strengths
Basic policy on human resources strategy

We are working to enhance our human resources management and organizational strengths based on a human resources
strategy that seeks to achieve our management philosophy of Mission, Vision and Values. We specifically encourage each
employee to take responsibility for their own growth and development, and we provide training and learning opportunities forthis purpose. We are also implementing a compensation and reward system that recognizes and compensates employees who
demonstrate their abilities and deliver excellent results.

Human resources development program

We have developed a variety of training programs according to themes, such as company-wide training programs (to acquire skills
and knowledge suited to each employeeʼs growth and steps) and specialized training programs (to acquire skills and knowledge
necessary for each department).These include selective programs aimed at developing next-generation leaders and global humanresources, training tailored to each employeeʼs level and career, on-the-job training (OJT) support for department heads responsible
for human resource development in their respective departments, and self-development programs such as e-learning and online
English programs. Through these programs, we provide learning opportunities and develop systems and environments to promotelearning that is autonomous.

Coca-Cola University Japan aims to develop the next-generation leaders
We established Coca-Cola University Japan (CCUJ) to train the future leaders for transforming
the Coca-Cola System in Japan through a selected human resources development programwith three levels of management: department directors, supervisors and general staff ofleadership level. The program includes a practical component where participants are assigned
to teams to seek out solutions to issues in their respective workplaces. The learning process isbased on an experiential learning cycle that repeats inputs and outputs to improve participantsʼ
leadership skills, problem solving capabilities, and instill the skills required of both.

GET (Global English Transformation) English proficiency program

We are working to improve the English proficiency of our employees in order to develop global humanresources. As part of this initiative, we offer the GET Proficiency Program for young employees toimprove their English language skills. Depending on participantsʼ English level, the program offers twocourses: Practical English and Basic English, providing support so that they sustain English study after
the program by not only improving their English proficiency but also instilling good learning habits. The
program expands employeesʼ career prospects by providing them with opportunities to improve theirEnglish and advance their skills.

Fostering a results-oriented culture and supporting employeesʼ career development

We are working to foster a results-oriented culture. To balance improved performance and human resources development, during
the setting of goals by employees we link personal goals to company performance and management philosophy. We have also put
into place systems that provide large compensation to excellent results, such as setting up variable compensation linked to thedegree of achievement of company performance and individual goals and a mechanism where the ratio of variable compensation
increases based on seniority. Moreover, we have introduced a job posting system, in addition to clarifying job roles duties anddisclosing them internally. This system publishes requirements of posts or job types required by the Company internally, allowing
employees to apply freely. This increases motivation to tackle new challenges and encourages the movement of a diverse workforce,
which revitalizes the organization.

TOPICS

Win the Award of Excellencein the corporate category of the HR Awards 2021

Our HR Division won the Excellence Award at the HR Award 2021, sponsored by Japanʼs largest HR network,
the Human Resources Department of Japan. The award recognized the many initiatives under our humanresources strategy, including the operation of Coca-Cola University Japan, which seeks to develop the next
generation of leaders, and the Companyʼs initiatives for quantifying the results of its annual 360 -degree
survey on managers to propose individualized improvement measures in response. Looking ahead, we willkeep working to develop human resources capable of creating a new value through our business activities.

25

The Challenge of Value Creation
Initiatives to Enhance Human Resources Management and Organizational Strengths

Promotion of diversity & inclusion

We identify diversity and inclusion (D&I) as one of ourmanagement strategyʼs top priorities. In order to meet thediverse needs of our customers and a changing environment,
and to achieve sustainable growth, we aspire to create a diverse
work environment where each and every employee with different
backgrounds and values can demonstrate their abilities. In ourmanagement structure, we appoint directors based on diversity
in terms of nationality, gender, age, and background, and we aim
to realize diversity management through discussions anddecision-making based on a variety of perspectives.
We established the D&I Section as a dedicated organization forredoubling these efforts. The D&I Section actively deploys
measures unique the Company by planning measurescompanywide and providing training programs at each division.

Encouraging womenʼs successin the workplace

As of April 2022, the percentage of full-time female
employees was 13%, and we have set a target ofincreasing this to 15% or more by 2025, and arefocusing on recruiting and hiring excellent humanresources from within and outside the Company. In
addition, we have introduced a training program forfemale management candidates, with the goal ofincreasing the percentage of female managers fromthe current 6.4% to 20% by 2030.
In addition, we are actively promoting initiatives toadvance women, such as the Accelerate Her program
to support female managers in building their careers,
and the introduction of sponsorships to help develop
female board candidates. We are also developing
Unconscious Bias Training and Inclusive Leadership
Training to foster and establish an organizational
culture that understands and respects diversity.

Medium-to long-term vision for diversity and inclusion
By respecting the diversity of our workforce, we will provide opportunities to enable all
employees to leverage their full potential, regardless of gender, age, disability, race,
nationality, sexual orientation, and other attributes, such as gender identity and expression,
ensuring that they are unaffected by factors that may restrict their ability to work.

Providing opportunities for all employees to leverage their full potential,
regardless of individual attributes
and factors that may restrict their ability to work

Individual attributes
GenderAge

Race

Nationality

Sexualorientation
gender identity& expression

Disability

Factors restricting
ability to work

Time

HealthLanguage

LGBTQ initiatives

To ensure equal opportunities for sexual minorities (LGBTQ)
within the Company, we have revised our internal rules andare implementing e-learning training for all employees. In
June 2021, we announced our endorsement of the
Declaration of LGBT Equality Support in Business, which
prohibits discrimination based on sexual orientation andgender identity and aims to create an inclusive workplaceand society where each and every person is treated equally.
In November 2021, we were recognized with the highest
ranking of gold for our initiatives by the PRIDE Index 2021,
an index of LGBTQ initiatives formulated by work with Pride,a voluntary organization that supports the promotion andestablishment of diversity management related to LGBTQ
and other sexual minorities in companies and otherorganizations.

Working style reforms : Initiatives to promote flexible work styles

Our response to changing lifestyle patterns driven by the COVID-19 pandemic and the need to balance work and childcare or
family care obligations requires flexible working styles free of the constraints of time or place. Given this, we are implementing a
number of initiatives, including introducing a super flex time without core time, expanding satellite
offices, promoting working from home, and allowing sales reps to travel directly to client sites and returnhome directly without first stopping in the office.
We encourage male employees to take childcare leave and in 2022 we extended their entitlement fromthree months to one year, improving convenience. Additionally, we provide male employees with a
newborn child with a Papa Apron to raise awareness of childcare leave and encourage them to take it.
This apron is handed out during a team meeting or other venue to remind the person to take childcare
leave and raise awareness among their colleagues about the importance of this leave. In this manner, in
addition to establishing various systems, we are working to foster a culture where they are easily
accessible to all qualified individuals.
26

The Challenge of Value Creation

Initiatives for Creating Shared Value (CSV)

Initiatives for Creating Shared Value (CSV)CSV Goals

CSV Initiatives

Our CSV Policy

We place Creating Shared Value(CSV) at the core of our business. Taking the respective importance of society and ourbusiness into account, our Group identified three key themes to address: Inclusion, Communities, and Resources. As amember of the Coca-Cola system we take action to co-create the future while delivering refreshment and effect change
through our business. We take this responsibility to address the important challenges facing Japan including theenvironment, everyday life, and the communities that surround us.
We have formulated and are working to achieve our CSV Goals which declares our Groupʼs commitment in the area ofEnvironment, Social and Governance (ESG) with the aim of creating shared value.

Based on the common sustainability framework of the Coca Cola System in Japan, we established CSV Goals as a moredetailed targets in an effort to realize a sustainable business and society and achieve our Mission. We are steadily moving
ahead to reach our targets using the Plan Do Check Action (PDCA) cycle across the entire value chain while confirming the
progress of initiatives every year.
* Baseline year is 2015 and target year is 2025 unless otherwise stated.

Sustainability
framework

CSV Goals
Key issues
Diversity&
Inclusion

Inclusion

Products

Coca-Cola System Sustainability Framework
In 2019, the Coca-Cola System in Japan worked to identify issues and priorities in sustainability in order to develop
strategies based on Japanʼs unique challenges and incorporate them into action plans, in addition to achieving its global
sustainability goals. Weʼve created a framework for our initiatives that includes three platforms: Inclusion, Communities,
and Resources, as well as nine priority topics to address.

(Tailored productdevelopment/
health support)

Communities
Society(Contribution to the
local community)

We will promote CSV initiatives based on our sustainability framework. We will also contribute to the attainment of the
Sustainable Development Goals (SDGs) by assessing SDGs in each area.
● Coca-Cola System Sustainability Activities ̶ Purpose and Strategy

PurposeWorld Without
Waste

We are committed to creating a shared future and a sustainable business that can make a difference when addressing(Zero-waste society)

important challenges facing Japan, including the environment, peopleʼs Purpose lives, and our communities.

2020 Results

2021 Results

5.8%

6.3%

Female managers by 2025

10%

Female managers by 2030

20%

Zero/low-calorie options for core brands

100%

100%

100%

FOSHU/functional product growth (compared to 2016)

300%

190%

177%

Front-of-pack calorie label and straightforward nutritional information

100%

100%

100%

Observation of The Coca-Cola Company Responsible Marketing Policy

100%

100%

100%

Employee volunteers

10%

ー

3.7%

1,000,000

890,000

900,000

28%*2

40%

Participants in community programs
Sustainable materials usage*1 by 2022

50%

Sustainable materials usage*1 by 2030

100%

Ratio of products using sustainable materials*1 (number of bottles sold)100%

About 90%

About 90%

Further lightweight PET packaging by 2030 (compared to 2004)

35%

30% +

30% +

Collection percentage compared to sales volume by 2030

100%

96.7%*3ー

Water source replenishment, focusing on watersheds near our plants

200%

364％

353%

Water usage reduction by 2030

30%

19％

19%

Scope 1 and 2 reduction in greenhouse gas emissions by 2030

50%

19%*4

21%

Scope 3 reduction in greenhouse gas emissions by 2030

30%

17％*4

24%

Sustainable sourcing

100%

100%

100%

Adherence to Supplier Guiding Principles across the CCBJH Group value chain

100%

100％

100%

Progress

〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉

Extensive partnerships across industry and environmental organizations by 2030

Leverage Our Leadership Position to Drive Attention and Action
Strategy

TargetCategory

At least 80% 〉
50％〜79％ 〉
Less than 50%
〉
〉
〉
〉
〉
〉
〉

● Lead with a powerful example of Inclusion in our own business● Leverage the power and reach of our system to partner with our Communities

Resources

Water● Take a lead role ━ working with industry peers ━ on Resource usage● Three Platforms and Nine Priority Issues

Climate change

〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉
〉

Net zero in greenhouse gas emissions by 2050
Promotion of renewable energy

Human rights /Procurement(Strengthening ofbusiness foundation)*1 Sustainable materials refers to the total bottle-to-bottle recycled PET materials and plant-derived PET materials *2 Ratio of bottle-to-bottle recycling up to 2020
*3 PET bottle collection rate (Source: 2021 Report on PET Bottle Recycling from the Council for PET Bottle Recycling)*4 Actual results based on new standard aggregation method used in accordance with the GHG emissions reduction target announced in October 2021.

〉
〉
〉
〉
〉
〉

TOPICS

Endorsement of the United Nations Global Compact (UNGC)In March 2022, we announced our participation in the United Nations Global Compact (UNGC),the worldʼs largest sustainability program for creating a healthy global community. We joined the
Global Compact Network Japan, which is comprised of Japanese companies and others thathave signed the UNGC. We support the UNGCʼs 10 principles in the four areas: human rights,
labor, environment and anti-corruption, and will continue to endeavor to resolve social
challenges through its business activities to achieve a sustainable society.

Our initiative examples● Promotion of diversity & inclusion● Promotion of active participation by women● Promotion of employment of persons with disabilities● Promotion of work/life balance● Fostering the Next Generations● Providing equal opportunities for LGBTQ employees

27● Community support vending machines (support during
disasters, etc.)● SDGs seminars● Industry-government-academia-private partnerships toaddress regional issues● Online plant tours● Water resource protection activities● Reduction of greenhouse gas emissions● Promotion of recycling● Adoption of containers with low environmental impact, etc.
● Collaboration with business partners, customers andindustry associations

See the CSV Report for details

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

28

The Challenge of Value Creation

Initiatives for Creating Shared Value (CSV)

Initiatives for Creating Shared Value (CSV)

Endorsement of TCFD Recommendations

We endorsed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and participate in the
TCFD Consortium*, a forum for discussion by fellow companies and financial institutions endorsing the recommendations. We
believe that addressing the challenges of climate change is critical for the sustainability of our business and the development ofsociety, and we will analyze the financial impact of climate change-related risks and opportunities based on the TCFD
recommendations and consider measures to address them. We will strive to disclose a greater breadth of information from theperspectives of Governance, Strategy, Risk management and Indicators and Targets, which are the core elements.
In addition to endorsing the TCFD recommendations, we have also expressed our support for the GX League Basic Concept
published by the Ministry of Economy, Trade and Industry (METI) and Japanʼs Participation in the Global Frontline for
Decarbonization, as the Declaration of the Japan Climate Initiative (JCI).
* Established as a forum for companies and financial institutions that endorse the TCFD recommendations topromote initiatives for effective information disclosure of companies and to link disclosed information toappropriate investment decisions by financial institutions, etc.

Promoting Initiatives for Decarbonization - Reducing Greenhouse Gas (GHG) Emissions -To accomplish both business growth and solutions to social issues, we have been working to reduce GHG emissions. In
October 2021, the Coca-Cola system in Japan formulated targets to reduce GHG emissions across the entire value chain in
Japan by 2030. By 2030, we aim to reduce Scope 1 (direct GHG emissions) and Scope 2 (indirect GHG emissions) by 50%
and Scope 3 (other indirect GHG emissions) by 30% compared to 2015.

Our bottling business is an important element of the value chain, and as part of the Coca-Cola system, we will further promote
initiatives such as expanding 100% recycled PET bottles and utilizing renewable energy in order to achieve this goal.

Greenhouse gas reduction targets of The Coca-Cola System in Japan

Concrete actions
Solar panels were installedat the plant tour facilities of
the Tokai, Hiroshima andEbina factories to supply
electricity. Transparent
solar panels were installedat the Hiroshima factorycompleted in October
2020

Toward World Without Waste
2030 Packaging Vision

In January 2018, The Coca-Cola
System in Japan announced the
Packaging Vision 2030, based on
the Coca-Cola Companyʼs global
vision of achieving a World Without
Waste. It engages in activities
consisting of the three pillars ofdesign, collect, and partner, inorder to resolve the problem ofwaste from containers. In July 2019
we announced a more ambitious
target to be achieved ahead ofschedule and with a further
strengthening of current initiatives.

2030 Packaging Vision of the Coca-Cola System in Japan (Roadmap and Results)
Updated June 2022

Increasing the ratio of sustainable materials for PET bottles

As part of our efforts to achieve the Packaging Vision 2030, which aims to create a zero-waste
society, we are working-on our bottle-to-bottle recycling efforts that create new PET bottles
from used ones. In 2020, we started to use 100% recycled PET bottles for I LOHAS Natural
Mineral Water, and in 2021, we expanded the adoption of 100% recycled PET bottles for small
PET bottles used for our flagship Coca-Cola and Georgia Japan Craftsman* brands. We arealso improving customer communication by putting Let's recycle it! logo on product packaging.
We achieved a 40% ratio of sustainable material usage for PET bottles, including
bottle-to-bottle recycling in 2021, and we will further promote initiatives to achieve 50% target
by the end of 2022.
*Message bottles only

Expanding labelless products

Labelless PET bottles reduce plastic waste and resources used for recycling, making them environmentally friendly andattractive to consumers. Since I LOHAS Natural Mineral Water Labelless launched in 2020, we have expanded our lineup oflabelless products in various categories and packages. We launched labelless products for Aquarius and Large package
I LOHAS Natural Mineral Water, Karada Sukoyakacha Double and Ayataka Tokusencha.
Reducing plastic use and adopting labelless products result in lower CO₂ emissions.
We will continue to contribute to the reduction of greenhouse gas (GHG) emissions,through such initiatives to limit plastic usage.

29(Announced in October 2021)

Streamlined delivery routes
to customers, practiced
eco-friendly driving,promoted switch to low
fuel consumption vehicles
such as EVs and hybrids,
and adopted smaller sales
vehicles(Other indirect greenhousegas emissions)

We adopted 100% recycled
PET bottles for I LOHAS
Natural Mineral Water fromMarch 2020 and Coca-Colaand Georgia from May 2021.
Using 100% recycled PET
resin in key flagship products
offer an estimated reduction in
GHG emissions ofapproximately 60% per bottle,
or approximately 26,000 tons
per year across The Coca-Colasystem in Japan.**Total for all affected products,
estimated for 2022 by Coca-Cola(Japan) Company based on the
shipments in 2021.

Protecting Water Resources

We have set the goals of 30% reduction in water usage (compared to 2015) and maintaining a water resource recharge rate of
200% in CSV Goals, and efficient use of water used for manufacturing (Reduce). We are promoting the protection of water
resources based on water resource recharge activities (Replenish) such as reuse and forest conservation to nurture water.
In December 2021, the leadership level A- (minus) score was obtained in the Water Security survey conducted by
CDP, an international non-profit organization that operates environmental information disclosure systems forcompanies and local governments. We will continue to work on the protection of water resources and water usage
reduction as a company that conducts business using irreplaceable water.

Respect for Human Rights

We believe that respect for human rights is the foundation of our corporate activities to realize sustainable social
development. We are committed to compliance with various principles related to human rights, comprehensive
respect for human rights, and promotion of educational activities.
We provide our employees with training and e-learning programs to deepen their understanding of human rights,
and we regularly disseminate information to foster the development of employees who can accept human rights
issues as their own challenges, act with consideration for others, always putting themselves in the shoes of others.
We also advocate for creating a healthy work atmosphere that values open and honest communication.
In addition, we have added provisions on human rights due diligence for employees in the Employment
Regulations and Policy on Diversity and Inclusion and for procurement in the Basic Supplier Principles to ensurethat we make thorough and responsible efforts concerning respect for human rights.
For details, please refer to the website.

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

Human rights
awareness andpromotion programTimes
conducted:

8

2021

30

Governance and Financial Framework

Corporate Governance (As of March ,24 2022)

Corporate Governance

Board Members
Representative Director andPresident

Calin Dragan

Has worked with Coca-Cola bottlers,
including in Japan, for about 30 years.
Most recently, served as President of The
Coca-Cola Companyʼs Bottling
Investments Group.

Outside Director,
Independent Director

Hiroko Wada

Has abundant experience in marketing,management, and organization & humanresource development in the consumer
goods industry. Has served as a director of
The Procter & Gamble Company(U.S.),
and representative director and presidentof Dyson Ltd. and of Toys “R” Us-Japan,
Ltd.

Outside Director(serving on the Audit &Supervisory Committee),
Independent Director

Celso Guiotoko

Has IT and supply chain experience inmultinational corporations, as well
as a wealth of management experience at
Nissan Motor Company Ltd. as well as
Nishimoto Co., Ltd.

31

Profile and Skills Matrix of Board Members
Representative Director andVice President, CFO

Bjorn Ivar
Ulgenes

Has experience with finance in the
Coca-Cola system in Europe, theMiddle East, Africa, and Japan. Before
current position served as Deputy FinanceDirector of The Coca-Cola CompanyʼsEurope, Middle East, and Africa (EMEA)Group.

Outside Director,
Independent Director

Hirokazu Yamura

Has worked with Coca-Cola bottlers inJapan for about 15 years.
Currently serves as Representative
Director & President of Michinoku
Coca-Cola Bottling Co., Ltd.

Outside Director(serving on the Audit &Supervisory Committee),
Independent Director

Nami Hamada

Has a wealth of experience in finance andaccounting, including managing her own
finance consulting company as well as
management experience inLehman Brothers Japan Inc.

Attributes of Board Members

Outside Director,
Independent Director

Hiroshi Yoshioka

Has management experience with Sony
Corporation and global insights.
Previously served as an outside director of
Coca-Cola East Japan.

Outside Director(serving on the Audit &Supervisory Committee)

Irial Finan

Has extensive management experience,with many years of involvement in the
management of The Coca-Cola Company
and in the Coca-Cola business as therepresentative of the Bottling Investments
Group supervising Coca-Cola bottlers
worldwide.

Outside Director(serving on the Audit &Supervisory Committee)

Vamsi Mohan Thati

Demonstrates strong leadership in avariety of fields within the Coca-Cola
Company Bottling Investments Group, andhas global corporate management
experience in the Asian region. Currently
serves as President of the Greater China
and Mongolia Operating Unit.

Executive
Directors

OutsideDirectors

Independent
Directors

Outside Directors in Audit &Supervisory Committee (ASC)

FemaleDirectors

Nationalities

2

7

5

４

2

6

22%

78%

56%

100%

22%

Assumption of officeTerm ofoffice(Year)

OutsideDirector

Audit &
Supervisory
Committee
members

Independent
DirectorCalin Dragan

March 2019

1

ー

ー

ー

Bjorn Ivar Ulgenes

March 2019

1

ー

ー

ー

Hiroshi Yoshioka

April 2017

1

〇

ー

〇

〇

〇

〇

Hiroko Wada

March 2019

1

〇

ー

〇

〇

〇

〇

Hirokazu Yamura

March 2020

1

〇

ー

〇

〇

Irial Finan

April 2017

2

〇

〇

ー

〇

Celso Guiotoko

March 2019

2

〇

〇

〇

Nami Hamada

March 2019

2

〇

〇

〇

〇

〇

Vamsi Mohan Thati

March 2021

2

〇

〇

ー

〇

〇

Name

60s
44%

Average Age
40s
11%

58

years old
50s
44%

SkillsCorporate
Management

GlobalBusiness

Beverage andFood Industry

〇

〇

〇

〇

〇

Finance/
Audit

Sustainability/
CSV

〇

〇

〇

〇

〇

〇

〇

〇

〇
〇

〇

［Criteria for determining the necessary skills possessed by directors］
The Company assesses the expertise and experience possessed by directors based on the following criteria.
Criteria for 〇 (Applicable)

Category
Corporate Management･ A person who has experience as a representative such as CEO or COO.

Global Business･ A person who has global business or equivalent knowledge as a division director or above.

Beverage and Food Industry･ A person who has experience as a division director or above in a company handling beverages or foodproducts, or who has equivalent knowledge.

Finance/Audit･ A person who has experience as a division director or above in a Finance / Accounting Division, or who
has equivalent knowledge.
･ A person who has a national qualification in finance and accounting, such as a CPA.

Sustainability/CSV･ A person who has experience as a director or above in Sustainability / CSV Division, or who has
equivalent knowledge.

For details, please refer to the website.

https://en.ccbj-holdings.com/corporate/management/32

Governance and Financial Framework

Corporate GovernanceCorporate Governance

Board of Directors

Basic Stance on Corporate GovernanceOur basic stance on corporate governance is to seek improvement of management soundness, transparency and efficiency
and increase medium to long-term corporate and shareholder value.

To further strengthen the governance structure, the Company has put in place an audit and supervisory committee structure.
The Audit & Supervisory Committee, which is responsible for the Companyʼs auditing, consists of multiple independent outside
directors. The Companyʼs management oversight function is further strengthened by granting to these outside directors serving
as Audit & Supervisory Committee members voting rights at meetings of the Board of Directors and the right to state opinions at
the General Meeting of Shareholders on matters such as the nomination and remuneration of directors.
In addition, we have adopted the executive officer system to separate decision-making and management oversight functions
from business execution functions. Certain important business execution decisions are entrusted to directors, so that the Boardof Directors can deliberate on matters of particular importance. For other matters, we place emphasis on speed of management
decisions by the Executive Leadership Team.
［Chart of Corporate Governance Structure］
General Meeting of Shareholders
Election/Dismissal

Election/Dismissal

Election/Dismissal

Reporting/Stating Opinions

Directors (excluding directors serving on the Audit & Supervisory Committee)

Directors serving on the Audit & Supervisory Committee

Exchange opinions

Reporting

ReportingInternal Audit Offiice

Coordination

Auditing

Auditing

Auditing

Executive Officers
Group Companies

Divisions

Reporting
Auditing/Determining proposals for election or dismissals
Coordination

Audit & Supervisory Committee

Representative Directors

Supervision/
Reporting(consisting of directors serving on the Audit &Supervisory Committee, including a majority of outside directors)

Financial/Accounting Auditors

Reporting execution ofoperation

Selection/Supervision/
Delegation of execution of important operation

Evaluation of the Effectiveness of the Board of Directors

Each year, the Board of Directors of the Company evaluates and analyzes its effectiveness based on self-evaluation by directors
regarding the operation, support system, composition, etc.
From the self-evaluation by the Directors, conducted with the advice of an external third-party organization, we have received
generally positive evaluations on the issues identified the year before last year, such as business updates by major divisions andefforts to explain the contents of deliberations in advance, and we recognize that the effectiveness of the Board of Directors as awhole is improving.
It has been confirmed that the Company will continue to promote ongoing efforts to further revitalize discussions at the Board of
Directors meetings, and to proactively improve operational aspects of the Board of Directors to further enhance and deepen
discussions in line with changes in the business environment.

Board of Directors

Reporting

The Companyʼs Board of Directors consists of 9 directors, including multiple independent outside directors, and holds regularmeetings once every three months in principle and extraordinary meetings as needed. The Board of Directors resolves mattersconcerning basic management policies and other important business issues, as well as matters prescribed by law and by the
Articles of Incorporation, and receives reports on execution of business from directors. The Company also delegates a part ofdecision-making on important matters of business execution to directors to further enhance deliberations on matters of special
importance in the Board of Directors and to speed up decisions by the management team on other matters.

［Structure of major meetings attended by the management team］

When making decisions on important matters of the Company, the president and the vice president with representative
rights, or either of these and heads of functions including executive officers, engage in deliberation within major meeting
structures and connect this to prompt decision making.

The Audit Committee

The Audit Committee, which is responsible for auditing the Company, consists of four members, all of whom are Outside
Directors (Audit Committee members), including several independent directors, and meet once every three months in principle,with special meetings as needed. In accordance with the Audit Committee Standards for Audits based on relevant laws and the
Articles of Incorporation, the Audit Committee audits the execution of duties by directors, executive officers, and employees byattending meetings of the Board of Directors and examining the results of audits conducted by the division in charge of internal
audits and the accounting auditor.

Audit Status

The Audit Committeeʼs main concerns are the formulation of audit policy, preparation of internal system, and confirmation of its
operation, audit report preparation, reappointment of accounting auditors, agreement on remuneration for accounting auditors,
and providing opinions for the determination of the appointment and remuneration of directors and others. The Audit Committee
met eight times in 2021.
The members of the Audit Committee convey their audit opinions objectively and neutrally using their broad expertise andabundant experience, and they communicate their forthright thoughts at the Board of Directors and the Audit Committee
meetings. In addition, we believe that the members of the Audit Committee are fully exercising their supervisory and oversightfunction with respect to the Companyʼs management by regularly exchanging perspectives on the content with the
Representative Director. The Audit Committee includes a member who has abundant experience and knowledge in finance,accounting and accounting procedures, including management of a finance-related consulting company.

［Examples of major meeting structures］
ELT*1 Meeting

Executive S&OI*2 Meeting

This meeting discusses major issues and strategic directions that span theentire company or multiple units. In addition, the meeting reviews material
implied risks and evaluates ways to control and mitigate these risks.

Capital Committee

SPVR* 3 Committee

Ethics and Compliance Committee

This committee conducts deliberation andprogress management concerning capital
investment plans, deliberation and approvalof capital investment projects, andpost-execution verification, etc. of capital
investments, for the purpose of appropriate
capital investment management.

This committee is established for a regular reporting to the
management about the major activities and strategies ofCoca-Cola Bottlers Japan Business Services Inc. Also,
this committee evaluates the consistency of IT investment
based on IT strategy, and discuss about the IT policy andDX promotion of the entire group.

This committee engages in activities
including awareness and education activities
related to ethics and compliance, operationof consultation desks, handling of othercompliance-related cases, and examinationand implementation of measures to prevent
recurrence of problems.

*1 Executive Leadership Team33

Long-term business decisions are made based on a transparent andconsistent set of numbers and financial visibility to optimize the entire
supply chain in conjunction with sales operations.

*2 Sales and Operations Integration

See the Corporate Governance for details.

https://en.ccbj-holdings.com/corporate/governance/*3 Systems & Processes + Value Realization Steering

34

Governance and Financial Framework

Corporate GovernanceCorporate GovernanceAppointment of Outside Directors

Three of the Companyʼs five directors (excluding directors who are Audit & Supervisory Committee Members), and the four
directors who are Audit & Supervisory Committee Members, are outside directors.
As outside directors, the Company nominates persons who are considered to contribute significantly to increasing the corporate
value of the Company. Moreover, if it has been determined through investigation by the Company within the scope of reason thatnone of the following criteria apply to the Companyʼs outside directors, the Company will deem outside directors to possess
sufficient independence from the Company.

［Standards for determination of independence of outside directors］
If none of the criteria below apply, the Company considers the director to have sufficient independence.
●

An employee and/or executive of the Company and/or a subsidiary within the past 10 years●

A person and/or executive who had a significant business relationship with the Company within the past 1 year*1●

An employee and/or executive of the company who had a significant business relationship with the Company within the past 1 year*1●

A consultant, certified public accountant, attorney, etc. who has received significant compensation from the Company other than executive
compensation within the past 1 year *2●

An entity or executive thereof who has received a significant donation from the Company within the past 1 year *2●

A close relative of any of the above *3*1 If the transaction between the Company and the person and/or the company exceeds 2% of the Companyʼs consolidated revenue in the latest fiscal year, this will beconsidered significant*2 If the annual amount of compensation or donation to the person/entity exceeds JPY 10 million, this will be considered significant*3 Within the second degree of kinship［Reasons for appointment of outside directors］
Category/Name

Independent
Director

Reasons for appointment (Positions etc. are as of the time of appointment)○

The Company has appointed Hiroshi Yoshioka as a Director (Outside Director) in order for him to utilize, for the management of theCompany, the considerable experiences and global knowledge he has gained thus far at the Coca-Cola bottling company within Japanand Sony Corporation. There is no relationship of special interest between him and the Company, and no risk that conflicts of interest withgeneral shareholders. Therefore, the Company has designated him as an independent director.

○

The Company has appointed Hiroko Wada as a Director (Outside Director) in order for her to utilize, for the management of the Company,
the considerable experiences and global knowledge she has gained thus far as officer at The Procter & Gamble Company and as
Representative Director at Toys“R”Us Japan Ltd. There is no relationship of special interest between her and the Company, and no risk thatconflicts of interest with general shareholders. Therefore, the Company has designated her as an independent director.

○

The Company proposes to appoint Hirokazu Yamura as a Director (Outside Director) with the expectation that he will apply his wealth ofmanagement expertise and global understanding obtained as Representative Director & President of Michinoku Coca-Cola Bottling Co., Ltd.
While the Company has the business relationship noted below with the corporate group of said company, the transaction value is small andtransaction prices and other conditions are conducted under appropriate conditions in the same manner as with other business partners.
The Company believes that its free business activities will not be hindered by the corporate group of said company.
Accordingly, as there is no risk of significant impact from said company, the Company deems that no risk of conflict of interest with generalshareholders exists and has appointed the individual as an independent director.
Relationship with the Company: The Company has a business relationship with Michinoku Coca-Cola Bottling Co., Ltd. that includes buying
and selling of products. (Sales, etc.: 0.5% of the consolidated revenue of the Company; Purchasing, etc.: 0.2% of the consolidated revenueof said company)

Outside Director

Hiroshi Yoshioka
Attendance

Board of Directors 8/8

Outside Director

Hiroko Wada
Attendance

Board of Directors 8/8

Outside Director

Hirokazu Yamura

Attendance

Board of Directors 8/8−

Irial Finan has extensive experience and global insights as a corporate manager, with many years of involvement in the Coca-Cola business asan outside director of a Coca-Cola bottler in Japan, as part of management of The Coca-Cola Company and global bottlers, and as
representative of the Bottling Investments Group supervising Coca-Cola bottlers worldwide, and has auditing experiencing as a Director who
is an Audit & Supervisory Committee Member of the Company, and a chairman of the Audit & Supervisory Committee. As a director who is an
Audit & Supervisory Committee Member of the Company, he is expected to offer advice based on his abundant experience as a global
company manager and his knowledge in the field of finance, in areas of important management decisions, response to foreseeable risks,internal control systems, etc.
Accordingly, the Company has appointed him as an outside director who is an Audit & Supervisory Committee Member.

○

Celso Guiotoko has abundant management experience and global insights cultivated at Nissan Motor Co., Ltd., and at Nishimoto
Wismettac Holdings, Inc., and has experience as a corporate auditor at Nissan Motor Co., Ltd. As a director who is an Audit & Supervisory
Committee Member of the Company, he is expected to offer advice based on his abundant experience in company management and his
auditing, and his knowledge in the field of IT, in areas of important management decisions, response to foreseeable risks, internal control
systems, etc. Accordingly, the Company has appointed him as an outside director who is an Audit & Supervisory Committee Member. As
no special vested interest exists between the individual and the Company, the Company deems that no risk of conflict of interest withgeneral shareholders exists and has appointed the individual as an independent director.

Outside Director(Audit & Supervisory
Committee member)

Irial Finan
Attendance

Board of Directors 8/8
Audit and Supervisory Committee 8/8

Outside Director(Audit & Supervisory
Committee member)

Celso Guiotoko
Attendance

Board of Directors 8/8
Audit and Supervisory Committee 8/8

Outside Director(Audit & Supervisory
Committee member)

Nami Hamada
Attendance○

Board of Directors 8/8
Audit and Supervisory Committee 8/8

Outside Director(Audit & Supervisory
Committee member)

Vamsi Mohan Thati
Attendance

Board of Directors 6/6
Audit and Supervisory Committee 5/635−Nami Hamada has extensive experience in finance and accounting, including managing a finance-related consulting company herself,and has abundant experience and global insights cultivated on the corporate management team of Lehman Brothers Japan. As a director
who is an Audit & Supervisory Committee Member of the Company, she is expected to offer advice based on her abundant experience as
a company manager and her knowledge in the field of finance, in areas of important management decisions, response to foreseeable
risks, internal control systems, etc. Accordingly, the Company has appointed her as an outside director who is an Audit & Supervisory
Committee Member. As no special vested interest exists between the individual and the Company, the Company deems that no risk of
conflict of interest with general shareholders exists and has appointed the individual as an independent director.
Vamsi Mohan Thati serves as President of the Greater China and Mongolia Operating Unit at The Coca-Cola Company. He demonstrates
strong leadership in a variety of fields including operations, market execution, and general management at The Coca-Cola Company
Bottling Investments Group, and has extensive experience as a corporate executive in business units in the Asian region. As a director who
is an Audit & Supervisory Committee Member of the Company, he is expected to offer advice based on his abundant experience as a
global company manager, in areas of important management decisions, response to foreseeable risks, internal control systems, etc.
Accordingly, the Company has appointed him as an outside director who is an Audit & Supervisory Committee Member.
Relationship with the Company: The Company has concluded contracts concerning the production, sales, trademark usage, etc. of
Coca-Cola, etc., with The Coca-Cola Company.

Policy regarding Cross-shareholdings

In principle, it is the Companyʼs policy to refrain from cross-shareholdings.
However, there are cases in which the Company acquires and holds such shares to create business opportunities, and maintainand strengthen its relationships with business partners and local communities. The Company shall evaluate and report on thecost of holding major cross-shareholdings and the return on investment thereof in Board Meeting, and work on reducing thecross-shareholdings based on such evaluation.

［Number of companies and the amount recorded in the balance sheet］
Number ofcompanies

Total book value of shares(million yen)

Unlisted stocks

116

4,119

Stocks other than unlisted stocks

56

9,064

［Brands that the Company increased the number of shares in FY 2021］

Unlisted stocks
Stocks other than unlisted stocks

Number ofcompanies

Total amount spent to increase thenumber of shares held(million yen)

−

−

−

42

The Company increased the number of shares ofthis company brand as it is a member of theshareholding association of the counterparty company.

18

Reason for increase in number of shares［Brands that the Company decreased the number of shares in FY 2021］
Number ofcompanies

Total amount by selling and decreasing
the number of shares(million yen)

Unlisted stocks

2

26

Stocks other than unlisted stocks

30

7,449

See the Securities Report for details.

https://en.ccbj-holdings.com/ir/library/securities.php

Promotion of Information Disclosure andConstructive Dialog through IR Activities

With the goal of timely and appropriate information disclosure and constructive dialog with shareholders and investors, we
engage in a variety of Investor Relations (IR) activities in which we explain our business strategies, business activities, financial
and non-financial information, and other information through quarterly earnings presentations and IR meetings.

［Main IR activities in 2021］
Activity

2021 results

Earnings Presentation

4 times

IR meetings with analysts andinstitutional investors

Details
Quarterly earnings presentations were held by the President and CFO.
The briefing content is available via Webcast on the Companyʼs website.
(https://en.ccbj-holdings.com/ir/library/presentation.php)

About 230 times; Held primarily by phone and video conferencing due to COVID-19 pandemic.
about 340 persons Top management took part as required.

Participation in domestic andoverseas conferences

6 times

Participation in domestic and overseas conferences held online due to COVID-19 pandemic.
Top management took part as required.

Other IR briefings

3 times

Held small meetings and IR briefings online, with participation by top management.

Delivery of video message fromthe President

4 times

In 2020, we began delivery of video messages from the President for investors.
The video messages are available from the Investor Relations page of our website.
(https://en.ccbj-holdings.com/ir/)36

Governance and Financial Framework

Corporate GovernanceCorporate Governance

Executive Compensation System
Basic policy［Overview of the executive compensation system］
Targets

Basic policy

Executive
directors,
executive
officers

composition of compensation to enable
the hiring and retention of talented
human resources who are diverse interms of nationality, experience, etc.
● The composition ratio will emphasize
performance-based compensation toprovide sufficient incentive to achieve
profitable growth.
● The system will promote improvement inmedium- to long-term corporate value
and the sharing of profit consciousness
with shareholders.
on role in management supervision andauditing.

● In order to increase the transparency andobjectivity in compensation decision procedures,the content of compensation is deliberated by
the Audit & Supervisory Committee, composedof only outside directors, based on policies
concerning the determination of compensation
for directors and within the total amountdetermined at the General Meeting of
Shareholders. Through resolution of the Board of
Directors, the setting of compensation isdelegated to the representative director, whodetermines the compensation for each
executive director, including the amount of
performance-based compensation.

● Compensation for directors who are Audit &Supervisory Committee members is proposedto the Audit & Supervisory Committee and isdetermined through deliberation with directors
who are Audit & Supervisory Committee
members, within the total amount determinedat the General Meeting of Shareholders.
● Through resolution of the Board of Directors,
compensation for outside directors who are
not Audit & Supervisory Committee members
is deliberated by the Audit & Supervisory
Committee based on policies concerning thedetermination of compensation for directors.
The setting of compensation is delegated to
the representative director and president, whodetermines compensation within the total
amount determined at the General Meeting of
Shareholders.

● Compensation is decided inaccordance with scale ofresponsibilities, utilizing data fromcompensation surveys performed byexternal research organizations andtaking into account the level ofcompensation provided at companies
such as domestic and overseas
companies of similar scale in similarindustries, with the intent of providing alevel of compensation that enables
recruitment and retention of talented
people who are highly diverse in termsof nationality, experience, etc.

● The Company makes use ofcompensation survey data from outside
expert organizations, etc., with reference
to compensation levels in domestic
companies of similar scale, and sets
levels in accordance with roles.

Compensation for executive directors and executive officers is composed of fixed compensation and variable compensationthat varies with factors such as corporate performance, to reflect responsibilities and contribution to corporate performance. The
standard amount of compensation is set according to the scale of responsibilities. The larger the responsibilities, the higher thepercentage of variable compensation.
［Range of standard amounts of compensation: Image when basic compensation* is set to 100］

Basic compensation

Variable compensation

Retirement payments

100

10

Annual bonus
around30 to 85

Long-term incentives*
Around15 to 100*PSU (Performance Share Units) andRSU (Restricted Stock Units)

Under minimum
payment
Under standard
payment
Under maximum
payment

37

RSU

69%

31%

37%
30%

● Two types of stock-based compensation systems, (1) PSU and (2) RSU, are adopted as(1)PSU(Performance Share Units)● Provided as an incentive for achieving medium- to long-term performance targets.

(2)RSU(Restricted Stock Units)● Provided for the purpose of aligning interests with shareholders, creating incentives to● An amount equal to 10% of basic compensation is accumulated every year, with the

Retirement payments

long-term incentives.
● The standard amount for long-term incentives overall ((1)+(2)) is set more or less at 15% to100% of basic compensation, according to the scale of responsibilities. The PSU standard
amount is set to 50% and the RSU standard amount is set to 50% of the standard amount.
● With regard to (2) RSU, additional grants for the purpose of retention and other factors may
be made for directors in addition to the above-mentioned basic RSU amount up to thecompensation limit detailed on the right, if deemed necessary by the Audit & Supervisory
Committee.
● The number of shares to be issued is determined within the range of 0% to 150% of the

PSU standard amount depending on the achievement of performance targets (onlyconsidering company-wide performance) three years after the share units have been
granted (with half of the shares to be issued paid in cash for the purpose of allocating
funds for the payment of tax obligations).
● Consolidated ROE and growth rate of consolidated net revenue are used as metrics forcreating motivation for medium- to long-term improvement of corporate value inaccordance with the policy for determining directorsʼ compensation, etc.

The following are upper limits forthe compensation listed at leftthat is paid to directors.
Compensation framework fordirectors (excluding directors
who are Audit & Supervisory
Committee members): Up to an
amount limited to 600,000
shares per year multiplied by themarket price at the time granted(approved through resolution of
Proposal No. 4 at the 2020
General Meeting of Shareholdersof the Company).
(Number of directors at the timeof the resolution, excluding
directors who are Audit &Supervisory Committee
members: 5)

increase corporate value, and strengthening retention of talented people.

● A predetermined number of shares is issued at the time of retirement (with half of theAnnual bonus & PSU
at base amount

63%
70%

*With regard to fringe benefits, the Company pays housing allowances, etc. based on CCBJH Group internal rules, deliberated by the Audit & Supervisory Committee and approved by the
Board of Directors, to support the execution of assignments outside of the country.

［Payment of compensation to directors in 2021］■Directorsʼ Compensation

Total amount by type of compensation, etc. (million yen)

Executive category

Total amount ofcompensation, etc.
(million yen)

Basiccompensation

Directors (except Audit &Supervisory Committee members)(of which, outside directors)

866
(43)

(43)

（−）

（−）

72

−
（−）

Directors (Audit & Supervisory
Committee members)(of which, outside directors)

(72)

Total
(of which, outside directors)

(115)

Name

Variable compensation

Base salary & retirement payments

Long-term incentives● Monthly payment of an amount determined based on responsibilities.

72

937

418

(72)

489

(115)

Retirement
payments
21

21

（−）

Number of eligible
directors

Annual bonus

Long-term
incentives

120

234

(−)

(−)

(3)

−
（−）

−
(−)

−
(−)

(5)

120

234

（−）

(−)

Other
74

74

(−)

5
5

10

(8)

■Total amount of compensation, etc. to persons for which total amount of compensation, etc. is 100 million yen or more

［Image of compensation structure (in case of Representative Director & President)］
Fixed compensation

Annual bonus

The following are upper limits for thecompensation listed at left that is
paid to directors.
cumulative amount calculated and paid upon retirement.
Limit on director compensation● In the event that the individual has caused serious harm to the CCBJH Group or has been
(excluding directors who are Audit &subjected to disciplinary measures, the Company may reduce the amount paid or withhold Supervisory Committee members):
payment. In addition, a special increase may be made in recognition of particularly meritorious 850 million yen/year (approved
service. Reduction of amounts, non-payment, and special increases undergo approval by through resolution of Proposal No. 5
the Board of Directors based on deliberation by the Audit & Supervisory Committee.
at the 2019 General Meeting of
Shareholders of the Company).
● Provided as an incentive for achieving performance targets for each fiscal year at a
(Number of directors at the time ofcertain time each year.
the resolution, excluding directors● The target amount is set more or less in the range of 30% to 85% of base salary
who are Audit & Supervisorydepending on their responsibilities.
Committee members: 5)● The amount of payment varies in the range of 0% to 150% of the target amount* In case where the Audit & Supervisorydepending on the achievement of performance targets in each fiscal year (company-wide
Committee has deliberated and deemed
performance and individual evaluations).
it necessary, housing allowances and● Business income, sales volume, and revenue have been adopted as metrics for creatingother fringe benefits may be paid withinmotivation for achieving profitable growth in accordance with the policy for determining
the limit of 850 million yen.
officer compensation, etc.

Basic compensation

shares to be issued paid in cash for the purpose of allocating funds for the payment of
tax obligations).

Compensation system for executive directors and executive officers

Fixed compensation

Variable compensation● Compensation level and structure based

Supervisory
officers

Level

Decision-making process● The Company will set the level and

Fixed compensation

We have designed our executive compensation system on the basis of the following policy. Executives subject to the system in
2021 are 2 executive directors, 7 supervisory officers (directors who are Audit & Supervisory Committee members and outside
directors who are not Audit and Supervisory Committee members), and 10 executive officers.

［Compensation structure(From April 2022)］

Annual bonus & PSU
at maximum

Executive category

Total amount by type of compensation, etc. (million yen)
Basiccompensation

Retirement
payments

Annual bonus

Long-term
incentives

Other

Total amount of
D88compensation, etc.
(million yen)

Calin Dragan

Representative
Director

217

14

83

170

52

536

Bjorn Ivar Ulgenes

Representative
Director

158

7

37

63

22

287

Note 1: Compensation for directors includes remuneration paid to one director (outside director) who served as Audit & Supervisory Committee Member who retired at the conclusion of the2020 General Meeting of Shareholders held on March 25, 2021.
Note 2: Basic compensation includes amount for fringe benefits (housing allowance, etc.), etc.
Note 3: Long-term incentives include PSU, RSU, and special RSU.
Note 4: Others represent special awards. In order to maintain motivation to lead the transformation over the next few years, we paid a total of 74 million yen in cash in March 2022 as a
special award based on the individual performance evaluation of FY2021. The Audit and Supervisory Committee discussed and reviewed the appropriateness of the payment, andhas deemed to be reasonable.

38

Governance and Financial Framework

Corporate GovernanceCorporate GovernanceRisk Management
Business Resilience
At CCBJH we have implemented a business resilience program that embraces the proactive, preventative, and reactive routinesthat support business growth while at the same time responding to, and recovering from, adverse events. The key pillars of ourbusiness resilience program are enterprise risk management (ERM) which enables us to manage risks and opportunities, our crisis
management program that drives response and recovery to an adverse event, and our insurance program that enables us totransfer elements of financial risk.
In 2021, we established the Risk Management Group to lead our focus on business resilience and appointed our Head of Risk
Management (HRM) who is a member of the Executive Leadership Team (ELT) reporting directly to the President. The HRM is
tasked with maintaining an overarching view of business activities to ensure risks and opportunities are identified together with
providing visualization of risks to the ELT and the Board of Directors through formalized and regular reporting. Ultimately, the Boardof Directors is responsible for our overall risk management and internal control system, and they determine risk appetite and review
the effectiveness of our business resilience systems through HRM submissions to the Audit and Supervisory Committee members.
［Our approach to ERM leveraging the COSO framework］
Governance &CultureStrategy &Objectives

・Board ownership・Executive oversight of theresilience program
・Aligned on risk appetite
・Implemented a robust ERM
operating structure

・Evaluation of initiatives andalternative strategies
・Formulate new businessobjectives

・Regular risk discussions
imbedded in our DNA

・Identify and evaluate risks
and opportunities
・Prioritize and implement
responses to risks andopportunities

・Assess and analyze
substantial change to our・Leverage technology tointernal and external
enhance internal andenvironments
external risks to the portfolio
・Quarterly functional risk
discussions to validatechanges and responses

Crisis Management
The core response component of our business resilience program is crisis management. Here we leverage the Coca-Colasystemʼs crisis program known as Incident Management & Crisis Resolution (IMCR). Our well-rehearsed system crisis team canundertake seamless decision-making in response to adverse events and dependent on the event, this will include at what point
we need to activate our business continuity plans. In the event of a wide-area or large-scale natural disaster that has asignificant impact on business activities, our Disaster Countermeasures Task Force, activates to coordinate the business
response.

Communication &Reporting［Business Resilience in Action］

・Cyclic communications onrisk and opportunity

Proactive and Preventative

Review & Revise
・Annual independent ERM
process review to drive
continual process
improvement

Overall, our robust risk management system incorporates a variety of processes including regular risk discussions by the
management ranks; process integration into our annual and strategic business planning cycles; continual monitoring of ourinternal and external environment for issues that may alter our risk profile and create opportunities; and education and training toincrease ERM awareness across our business functions.

Incident Management & Crisis Resolution (IMCR)

・ERM integrated into training
and development
・Leveraging information
systems to analyze andreport on risks andopportunities
・Enhancing risk visibility andstatus of cultural integration

Response to adverse events and serious incidents

The ERM Promotion Department has implemented processes to strengthen management engagement with ERM at all levels.
Facilitated functional risk reviews are held regularly and the ERM team works closely with the risk owners to assess and manage thebusiness risks. We believe that cultural integration of ERM into the DNA of the business is critical to business growth and we are
actively fostering a risk management culture through ongoing and regular training and awareness-raising activities. In 2022, we
continue to strengthen our risk management processes with the establishment of our Risk Management Forum. The forum comprises
senior managers representing all functions and meets quarterly. While the ELT discusses risks weekly as part of routines, the HRM
also reports on the forum outputs and facilitates formal ELT analysis of the risks and opportunities on a quarterly basis. To ensure an
overarching review of risks is maintained, the HRM undertakes review sessions with senior management in all divisions and leadersin Coca-Cola (Japan) Company, to ensure that the key risks affecting the entire Coca-Cola system in Japan are identified.
［Risk Management System (From January 2022)］
MonitorExecutive Leadership Team
Directives and Orders

ERM Promotion Department
ReportAdviceRisk Management Forum
Functions take actions to respond to major risks(Heads of divisions / Directors of department)39

the major risks
and opportunities• Analyses all data relating to current and emerging risk
• Reviews the status of risk action plans and controls• Gives guidance on risks and opportunities identified by the functions• Responsible for formulating actions and strategies to address function risks

Risk
Assessment

Execute the
Response Actions

RecoveryDisaster Countermeasures Task Force

Response to large-area, large-scale natural disasters

Temporary
Restoration of BusinessInitial Response

Business Restoration

Through periodic drills, we evaluate and improve our disaster response plans andensure that business continuity plans remain relevant.

Major Risks
Major risks that could have a significant impact on the Companyʼs financial position, operating results and cash flows fall under
the categories listed below. Please refer to our Securities Report for an overview of the major risks we manage, main impacts,
and key risk mitigation measures. Not all these major risks may ultimately affect our business. There may be risks that are not yet
identified or risks that are assessed as not important at this time, that may ultimately affect our business and financial position.
We have established early warning indicators so that we can identify emerging risks and implement appropriate
countermeasures.

HIGH RISKS

Cyber Security and
System Availability

People Talent(Attraction and Retention)

Natural Disasters

Manufacturing, Logistics andInfrastructure

Sustainability

Changing Consumer Mindset

Evolving Commercial andCompetitive LandscapeBusiness Transformation• HRM is accountable for leading the integration of the risk management processes• All members are responsible for the management of major risks and for leveraging growth
opportunities• Oversight the overall business resilience activities• Company-wide management of ERM PDCA policies and activities• Collect, collate, analyze and monitor risks and the status of mitigation strategies• Escalate via the HRM critical risks for ELT visibility

InitialResponse

Using Coca-Cola system IMCR processes, we have developed our crisis
management capabilities through regular training and simulations together withstrengthening business continuity.

Decide who will be
responsible andwhat action to take

Our ERM program is aligned to the COSO framework, and it provides a comprehensive approach to risk management that
supports the sustainable growth of our business, by identifying risks and business opportunities, developing countermeasures to
respond to risks, and supporting our agility in making quick and appropriate risk-based decisions to leverage opportunity.

ReportRisk
Prevention Assess2the risks
PDCA
and determine
3

ERM Systems and Processes

ReportIdentify the risks,
opportunities andresponse actions

Monitor andmeasure theeffectiveness4

Initial Risk
Assessment

1

5

Execute theresponse actions

Board of Directors and Audit and Supervisory Committee

Response and Recovery

Event
Occurrence

・Program aligned to our corevalues of agility, integrity,
learning and result-orientation

・Review and analysis ofbusiness context challenge our assumptions

Performance

Our ERM program ensures that we have the capability to respond to all manner of risks including those related to climate change
and sustainability. One such risk relates to greenhouse gas (GHG) emissions, and we have been implementing strategies tominimize emissions in ways that accomplish both company growth and societal solutions. The Board of Directors has beenproactively evaluating climate change countermeasures since 2021 due to the importance of addressing this area of risk.

MEDIUM RISKS
Financial Risks

Macroeconomic (Pandemic)

Commodity Pricing

Quality and Food Safety

Regulatory Compliance and Ethics

Climate Change

Franchise Relationships

Health and Safety

See the Securities Report for details.

https://en.ccbj-holdings.com/ir/library/securities.php40

Governance and Financial Framework

Financial Information

Financial Information

Commentary and Analysis of Operating Results in 2021
Analysis of Operating Results

Analysis of Financial Position

Coca-Cola Bottlers Japan Holdings Inc. (CCBJH or the Company, or we) announced full-year results for the fiscal year ended on December 31, 2021 (January 1, 2021 to
December 31, 2021). As the effect of the coronavirus (COVID-19) continues and the business environment remains to be challenging, the continued supply of our goods andservices are essential for our customers and consumers, and the safety and health of our employees and communities are our top priorities. In accordance with our mission toprovide happy moments for all, we have been operating our business to ensure safe and secure product supply while taking comprehensive measures.

The Groupʼs percentage of equity attributable to owners of the parent at the end of the consolidated fiscal year was 56.8%. We believe that the Companyʼsfinancial structure remains sound.

In this fiscal year (January 1, 2021 to December 31, 2021), despite last yearʼs COVID-19 impact, rebound from the initial impact, and the lifting of the state of emergency, themultiple state of emergency declarations have limited people traffic with heavy rain fall in August. As a result, the total domestic nonalcoholic ready-to-drink (NARTD) beverageindustry volume growth performance was limited to about 1% versus the previous fiscal year.
Under these circumstances, we have been working on measures to minimize the impact to sales by introducing new products and responding to changing consumer andchannel trends. Under the guiding principle that business as usual is not an option, announced as part of our mid-term strategic business plan in August 2019, we continue todrive fundamental business transformation initiatives. We have been pushing forward our transformation efforts in the further evolution of the vending channel operation model,
the relocation of product inventories, the consolidation of distribution bases centered around the Saitama Mega DC to optimize the distribution network in the Kanto area, thestreamlining of the supply chain system to realize low-cost operations, improving operational efficiency through company-wide digital transformation (DX), and the promotion of
new work styles. While the business environment continues to be challenging, we are focusing on identifying the issues and implementing short-term mitigation plans, as well as
seeking new opportunities for growth and efficiency as we work to respond to changes in the business environment over the medium to long term.
We continue our activities to realize our ESG goals based on creation of shared value with society. As part of our efforts to achieve the 2030 Packaging Vision, we continue toincrease the use of sustainable materials PET bottle. As part of strengthening our efforts, the Coca-Cola system in Japan has formulated targets to reduce greenhouse gas(GHG) emissions across the entire value chain in Japan by 2030. This has led to our selection as a constituent of the DJSI Asia Pacific, a leading ESG investment index for four
consecutive years, and an A- score in a survey on water security conducted by CDP, an international environmental non-profit organization. Details for the full-year are as follows.
(Unit : millions of yen)

Revenue
Business Income (Loss)
Net loss Attributable to Owners of the Parent

2020

2021

YoY

791,956

785,837- 0.8％

169- 14,662

ー- 4,715- 2,503ー

Note 1: We introduce Business Income (loss) as a measure of our underlying or recurring business performance after the adoption of IFRS. Business Income (loss) deducts cost of goods
and SG&A from revenue and includes other income and expenses which we believe are recurring in nature.
Note 2: Net loss attributable to owners of the parent is presented including non-continuing businesses.

■Full-year 2021 Highlights
●

●

●

●

In the fourth quarter (October 1 to December 31), although there were signs of growth in sales volume with the lifting of the state of emergency
declaration, the business was affected by concerns about the resurgence of the infection caused by the Omicron strain into the year-end. For the
full-year, COVID-19 impact continued. Recovery of consumer traffic impacted by repeated emergency declarations and record-breaking rainfall inAugust.
Full-year sales volume increased by +2% YoY. Multiple new products contributed to volume growth, but the challenging business environment
continued. Full-year revenue declined by -1% YoY with the changing consumer spending patterns impacting channel and package mix and lower
revenue per case. Value share continued to grow for vending, and on a recovery trend for supermarkets, drugstores and discounters.
Business income exceeded the earnings guidance by 1.2 billion yen, supported by the slightly higher than expected volume and the effect ofadditional cost saving measures. Compared to the previous fiscal year, a decreased of 14.8 billion yen. Impacted by challenging businessenvironment, cycling of significant temporary cost reduction achieved in the previous fiscal year, and rising raw material prices.
In a challenging operating environment, with the focus on what we can control, transformation initiatives are progressing as planned, achieving
approximately 9 billion yen of recurring cost savings for the full-year.

As of December 31, 2021, total assets were 867,111million yen, a decrease of 72,492 million yen to compared with the end of the prior fiscal year-end
period. Primarily due to the sales of the Qʼsai shares on February 1, 2021, resulting in a decrease of the assets held for sale and decrease on property,
plant and equipment as a result of restrained investment in sales equipment and selling idle assets.
Total liabilities at the end of the year were 374,660 million yen which decreased by 62,851 million yen from the end of the prior year period. This is mainly
due to decrease in bonds and borrowings with the repayment of short-term loans, and the sales of the Qʼsai shares which could decreasing the liabilities
directly associated with assets held for sale.
Total shareholderʼs equity at the end of the year were 492,451 million yen, a decrease of 9,642 million yen from the end of the prior year period. This mainlyreflects a decrease in retained earnings as a result of dividend payments.

Analysis of Cash Flows■ Cash Flows from Operating Activities

Net cash generated from operating activities was 35,982 million yen (43,716 million net cash generated from operations in the previous year period).
This results mainly from the 21,683 million yen net loss before tax from continuing operation, depreciation, increase in trade and other payables anddecrease in other assets etc., offset by gain on sale of property, plant and equipment, increase in trade and other receivables and payment of income
taxes, etc.

■ Cash Flows from Investing Activities

Net cash generated from investing activities was 15,271 million yen (52,076 million yen outflow from investing activities the previous year period), as
cash used for acquisition of fixed assets was controlled, accounting for the current operating environment and sales of Qʼsai share resulted in proceedsfrom sales of shares of subsidiaries.

■ Cash Flows from Financing Activities

Net cash used for financing activities was 67,134 million yen (20,912 million yen net cash generated from financing activities in the previous year
period), driven by decrease of short-term loans for operating capital, payment of dividends and repayments of lease liabilities.
As a result of these activities, cash and cash equivalents at the end of the year was 110,497 million yen, a decrease of 15,881 million yen from the end of
the prior fiscal year-end.

Capital Expenditures
The Group implemented capital expenditure totaling 40,184 million yen in the fiscal year ended on December 31, 2021.
The expenditures were mainly for the introduction of vending machines to the market with the aim of strengthening sales capabilities, improvement of
manufacturing efficiency, acquisition of new product support facilities, and investments in Saitama Mega DC for optimization of logistics networks in the
Kanto area.
Capital expenditures include tangible fixed assets, right-to-use assets and intangible assets.

Research and Development
Consolidated net revenue was 785,837 million yen (0.8% decrease of 6,119 million yen from the same period prior year). New products and initiatives responding to trendchanges in channels contributed to the volume growth, but the prolonged period of state of emergency delayed the recovery of traffic, and the record rain in August leading
to a volume growth of only 2% versus the previous year. In addition, the business environment has seen an increase of at-home consumption demand with people refraining
from going out or working from home resulting in consumer behavior changes impacting channel and package mix, and continued severe competitive environment leading
to decrease in revenue per case, impacting revenue. Although the state of emergency declaration was lifted in October, there were hopes for a recovery in people traffic thatwould lead to an improvement in the consumption environment. However, the business environment remained uncertain and challenging as the Omicron strain toward theend of the year raised concerns about the resurgence of infections.
Consolidated business loss was 14,662 million yen (decrease of 14,831 million yen from the same period of prior year). To minimize the impact of the decrease in revenue
on profits, cost saving efforts were made in all areas, including recurring cost reductions through transformation. Factors including adverse channel and package mix,
decline in revenue per case, rise in commodity prices and logistics costs, and our decision to invest at appropriate levels in marketing and human resources that would
contribute to our future growth had an impact. However, with the volume slightly ahead of expansion, and additional cost saving measures being implemented, we exceed
the full-year forecast announced in November 2021 by 1.2 billion yen.
Consolidated operating loss was 20,971 million yen (decrease of 9,248 million yen from the same period of prior year). In addition to the decrease in business income fromthe prior year, there was an increase in cost due to the accounting timing of the temporary leave expenses and the timing of when the government subsidies for employment
adjustment were received. Other income (non-recurring) of this fiscal year includes 6,447 million yen in government subsidies for employment adjustment to offset
temporary leave expenses. Other expenses (non-recurring) include 9,001 million yen in temporary leave expenses and 1,600 million yen in business
transformation-related expenses related to the implementation of transformation based on the mid-term plan, 2,437 million yen in special retirement allowances due to thevoluntary employee retirement program and expenses incurred to recover the system failures that occurred in the core system used by the Group of 1,322 million yen.

No relevant matters apply.

Policies for Profit Distribution and Dividends
We periodically review our capital structure and dividend payout ratio to maximize shareholder returns while maintaining the flexibility to pursue growth
opportunities. We seek to use retained earnings for sustainable growth investments, and to pursue business growth and the further enhancement ofcorporate value. The Company sets the active redistribution of profits as its basic policy regarding dividends, placing the highest priority on the stablepayment of dividends. The Company has set a payout ratio target of 30% or more for net income attributable to owners of the parent, and pays dividends toallocate surpluses two times per year (interim and year-end dividends), comprehensively taking business performance and retained earnings into account.
As dividends for the year ended December 2021, the Company paid an interim dividend of 25 yen per share and a year-end dividend of 25 yen per share,
for an annual dividend of 50 yen per share.
On future shareholder returns, the Company stays committed to maximizing the value by comprehensively reviewing its business performance trends andfinancial conditions, and examining the best approaches that could be taken by including the share repurchase program.

Net income attributable to owners of parent for the year a total of continuing operations and discontinued operation was a loss of 2,503 million yen (2,212 million increase
from the same period prior year) as a gain of 12,841 million yen was recorded in discontinued operations in the first quarter as gains from stock sales due to the transfer ofshares in Qʼsai.

41

42

Governance and Financial Framework

Financial Information

Financial Information

Key Financial and Non-Financial Data
JGAAP

2011

2012

2013

2014

2015

2016

IFRS

2017

Operating Results (Fiscal Year):

2018

2019

2020

2021

Revenue(Millions of yen)

399,717386,637

431,711424,406

440,476

460,455

872,623

Revenue(Millions of yen)

837,069

927,307914,783

791,956

785,837

Gross Profit(Millions of yen)

195,244

190,795

215,287

212,881

223,951

238,611450,249

Gross Profit(Millions of yen)412,782

452,151

441,060

362,916

350,505

(%)

48.8

49.3

49.9

50.2

50.8

51.8

51.6

Gross Profit Margin

(%)

49.3

48.8

48.2

45.8

44.6

(Millions of yen)

16,46913,463

15,927

11,00814,262

21,14340,579Business Income(Millions of yen)

40,177

23,276

15,042

169-14,662

(%)

4.1

3.5

3.7

2.6

3.2

4.6

4.7

Business Income Margin

(%)

4.8

2.5

1.6

0.0

̶

EBITDA(Millions of yen)

81,56070,807

71,99359,08342,498Net Income Attributable to Owners of the Parent（(Millions of yen)

21,967

10,117-57,952-4,715-2,503Gross Profit Margin
Operating Income
Operating Income Margin
EBITDA(Millions of yen)

ー

ー

ー

ー

ー

ー

ー

Net Income Attributable to Owners of the Parent (Millions of yen)

6,997

6,031

13,625

4,482

9,970

5,245

25,244

Cash Flow from Operating Activities(Millions of yen)

39,96026,32440,082

28,62840,422

34,38872,450Cash Flow from Operating Activities(Millions of yen)

73,014

51,244

42,62943,71635,982

Cash Flow from Investing Activities(Millions of yen)

-34,050-14,243-16,493- 9,590-24,994-19,921-41,090

Cash Flow from Investing Activities(Millions of yen)

-14,299-48,628-68,308-52,076

15,271

Free Cash Flow

(Millions of yen)

5,910

12,08023,58819,037

15,427

14,46731,359

Free Cash Flow

(Millions of yen)

58,715

2,616-25,679-8,36051,253

Cash Flow from Financing Activities(Millions of yen)

-8,780-7,149-8,286-37,498

22,416-7,546-26,159

Cash Flow from Financing Activities(Millions of yen)

-26,717-55,835

73,994

20,912-67,134

Cash and Cash Equivalents at End of Fiscal Year (Millions of yen)

34,56439,49560,27541,83079,82886,727

118,741

Cash and Cash Equivalents at End of Fiscal Year (Millions of yen)

118,742

65,510113,825

126,378

110,497

Cash Flow Status (Fiscal Year):

Cash Flow Status (Fiscal Year):

Financial Position (End of Fiscal Year):

Financial Position (End of Fiscal Year):

Total Assets(Millions of yen)342,560

337,348

374,418

337,260

378,105

377,468

883,918

Interest-bearing Debt

(Millions of yen)

ー

ー

ー

ー

ー

ー

(Times)

ー

ー

ー

ー

ー

ー

(Millions of yen)

227,864

231,056

257,936

254,150

260,878

261,173

627,485

D/E Ratio
Net Assets

Total Assets(Millions of yen)

929,304

877,472

952,444939,603

867,111ーInterest-bearing Debt

(Millions of yen)

81,385

102,814

246,521271,233

214,124ー

D/E Ratio(Times)

0.1

0.2

0.5

0.5

0.4

(Millions of yen)

655,038

580,906

506,491

502,093492,451

Basic Earnings per Share (EPS)(yen)

125.5352.68-322.22-26.29-13.96Equity Attributable to Owners of the Parent per Share (BPS)(yen)

3,204.90

3,163.63

2,821.27

2,797.03

2,745.12

Annual Dividend per Share

(yen)

44.00

50.00

50.00

25.00

50.00

Per-share Information:

Total Equity
Per-share Information:

Net Profit per Share (EPS)

(yen)

69.99

60.33

128.15

41.07

91.35

48.05

144.26

Net Assets per Share (BPS)(yen)

2,275.55

2,307.44

2,359.82

2,325.19

2,386.81

2,389.28

3,070.01

Annual Dividend per Share

(yen)

41.00

41.00

41.00

41.00

41.00

46.00

44.00

(%)

58.6

68.0

32.0

99.8

44.9

95.7

30.5

Consolidated Dividend Payout Ratio

(yen)

1,335

1,333

2,227

1,661

2,457

3,445

4,115

Stock Price at End of Year

Return on Equity (ROE)

(%)

3.1

2.6

5.6

1.8

3.9

2.0

Return on Assets (ROA)

(%)

4.7

4.1

4.7

3.0

3.8

(%)

66.4

68.4

68.8

75.2

(Times)

19.1

22.1

17.4

40.4

Consolidated Dividend Payout Ratio
Stock Price at End of Year

(%)

35.1

94.9

̶

̶

̶

(yen)

4,115

3,285

2,791

1,609

1,320

5.7

Equity Income Margin Attributable to Owners of the Parent (ROE) (%)

4.6

1.6

-10.7

-0.9

-0.5

5.5

6.3

Total Assets / Pre-tax Profit Ratio (ROA)

(%)

5.6

1.6

-6.1

-1.3

-2.4

68.9

69.1

70.9

Percentage of Equity Attributable to Owners of the Parent (%)

70.4

66.2

53.1

53.4

56.8

26.9

71.7

28.5

Price Earnings Ratio (PER)

32.8

62.4

-8.7

-61.2

-94.6

Price Book Value Ratio (PBR)

Other Financial Data:

Other Financial Data:

Equity Ratio
Price Earnings Ratio (PER)
Price Book Value Ratio (PBR)(Times)(Times)

0.6

0.6

0.9

0.7

1.0

1.4

1.3

(Times)

1.3

1.0

1.0

0.6

0.5

Capital Expenditure(Millions of yen)

21,201

20,031

20,242

22,783

16,181

25,72842,539

Capital Expenditure(Millions of yen)

42,53953,136

103,882

65,52140,184

Depreciation and Amortization(Millions of yen)

21,371

20,64323,75822,94324,04817,49137,352

Depreciation and Amortization Expenses(Millions of yen)

41,38347,531

56,951

59,58357,160Non-Financial Data (End of Fiscal Year):

Non-Financial Data (End of Fiscal Year):

Outstanding Shares at End of Year

(1000 shares)

206,269

206,269

206,269

206,269

206,269

2,016

Treasury Stock at End of Year

(1000 shares)

2,016

22,793

26,917

26,92026,925

17,197

Number of Employees at End of Year17,197

17,10016,95916,27415,083

Outstanding Shares at End of Year

(1000 shares)

111,126

111,126

111,126

111,126

111,126

111,126

206,269

Treasury Stock at End of Year

(1000 shares)

11,153

11,155

1,982

1,984

1,987

1,989

Number of Employees at End of Year

8,105

7,877

9,650

8,324

8,837

8,616

Number of Directors

10

10

11

12

11

14

9

Number of Directors

9

9

9

9

9

Number of Outside Directors

2

2

2

2

2

4

4

Number of Outside Directors

4

4

6

７

7

Average number of temporary employees
not included in the above

2,073

1,890

2,059

1,949

2,613

2,499

Note 1: The data through 2016 represents results for Coca-Cola West Co., Ltd. prior to the business integration. The data for 2017 represents results for Coca-Cola Bottlers Japan
Holdings Inc. from the second quarter.
Note 2: Amounts are rounded down to the nearest unit under Japanese standards and rounded up or down to the nearest unit under IFRS. Percentages are rounded up or down to thenearest unit.
Note 3: In December 2020, as a result of the decision to sell all shares in Qʼsai held by the Company, the Healthcare and Skincare business has been classified as a discontinued
operation and assets and liabilities of the Healthcare and Skincare business have been classified as the assets held for sale and liabilities directly related to assets held for sales.
Therefore, these are excluded from the above major financial data for 2020 and 2021. This sale of shares was completed on February 1, 2021.
Note 4: Figures for Percentage of women in managers positions and Women in manager and leader positions refer to the beverage business.
Note 5: Water usage is the total amount of water used in the manufacture of products (excluding water in products) in the beverage business.
Note 6: Greenhouse gas emissions refers to the supply chain emissions (Scope 1-3) in the beverage business. Some emission factors and the scope of data were revised from the 2021 results.

43

2017

Operating Results (Fiscal Year):

4,403

Average number of temporary employees
not included in the above

4,403

Women in Manager Positions

Water Source Replenishment
Greenhouse Gas Emissions

3,578

4,008

3,777

(%)

ー

3.9

4.2

5.8

6.3

(%)

ー

6.8

7.3

9.3

9.9

(1000 ｍ3)ー

13,99813,316

12,56012,993

(%)

ー

277

322

364

353

(1000 tons-CO₂e)

ー

ー

2,347

2,076

2,366

Women in Manager and Leader Positions
Water Usage

3,957

44

Governance and Financial Framework

Company Profile, etc.

Company Profile, etc.

Company Profile / Stock Information (As of December 31, 2021)

Evaluations from Outside the Company［Company Profile］

Our initiatives to resolve social issues have received strong recognition from governments and outside institutions and received
various awards.

Company nameCoca-Cola Bottlers Japan Holdings Inc.

Securities CodeHeadquarters

Tokyo Midtown Tower, 9 -7-1 Akasaka,
Minato-ku, Tokyo, Japan

Authorized Shares

500 , 000 thousand shares

Outstanding Shares

206 , 269 thousand shares (Common share)

Number of Shareholders

76 , 504(Shareholders with voting rights excluding treasury stock: 62, 802)

Establishment

December 20 , 1960

Paid-in capital

15 , 232 million yen

Number of employees

15 , 083

2579

Number of Shares per
Trading Unit

100 shares

Dow Jones Sustainability
Asia Pacific Index(DJSI Asia Pacific)

FTSE Blossom Japan Sector
Relative Index

S&P/JPX
Carbon Efficient Index

EcoVadis Sustainability
Questionnaire
Received Silver medal in 2021

CDP scores for 2021
Water security “A-”
Climate change “B”

Health & Productivity Management
Outstanding Organization 2022
White 500

Nikkei Smart WorkManagement Survey
Awarded 4.5 stars in 2021

Nikkei SDGs Management Survey
Awarded 3.5 stars in 2021

Kurumin Certification
Received in 2011

Tokyo Metropolitan Government
Womenʼs Participation Awards
Awarded in 2021

L-boshi Certification
Awarded 2 stars in 2019

HR Award 2021

SSON Impact Awards Asia
Received Gold Award inBest Vendor Collaboration
Best Shared Services Team

work with Pride
Received the Gold rating inPRIDE Index for 2021

New Diversity Management
Selection 100
Awarded in 2020

Cancer Ally Award 2021
Received Silver

Sports Yell Company 2022
Certified as Sports Yell Company
2022 by Japan Sports Agency

Tokyo Sports Promotion Company
Certification System
Certified in 2021

* Issued shares of the Company are common shares only. The Company has not issued preferred shares or any other types of shares which entail rights different from those of commonshares.

［Major Shareholders (1 unit : 100 shares)］
Number ofshares owned(million shares)

Percentage ofvoting rights (%)

Coca-Cola（Japan）Co., Ltd.

279 , 561

15 . 66

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

176 , 1739 . 87

Ichimura Foundation for New Technology

52 , 947

2 . 97

Custody Bank of Japan, Ltd. (Trust Account)

49 , 247

2 . 76

Satsuma Shuzo Co., Ltd.

46 , 991

2 . 63Senshusha Co., Ltd.

40 , 884

2 . 29Coca-Cola Holdings West Japan, Inc.

40 , 749

2 . 28Mitsubishi Heavy Industries Machinery Systems, Ltd.

39 , 121

2 . 19MCA Holdings Co., Ltd.

34 , 075

1 . 91

STATE STREET BANK AND TRUST COMPANY 505225

32 , 233

1 . 81

Shareholder［Composition of Shareholders］( 1 unit: 100 shares)
Individuals
and Others

CCW 3rd Series ofUnsecured Straight Bond
CCBJH 1st Series ofUnsecured Straight Bond
CCBJH 2nd Series ofUnsecured Straight Bond
CCBJH 3rd Series ofUnsecured Straight Bond

Total amount issued(Million yen)

Coupon rate(%)

Financial
Institutions

Foreign
Corporations
Other Domestic
Corporations

Financial Institutions
・
・
・
・
・
・
・
・
・
・
・19.08％/ 49 people, 340,641units
Securities Companies
・
・
・
・
・
・
・
・
・
・
・2.87％/ 42 people, 51,209units
Other Domestic Corporations
・
・
・
・
・
・
・
・
・
・
・37.02％/ 726 people, 661,102units
Foreign Corporations
・
・
・
・
・
・
・
・
・
・
・24.18％/ 430 people, 431,760units
Individuals and Others
・
・
・
・
・
・
・
・
・
・
・16.85％/ 61,555 people, 300,845units

The above Major Shareholders and Composition of Shareholders are calculated and presented excluding
269,246 shares of treasury stock held by the Company.

［Bond Information］

Securities
Companies［Rating Information］
2019

2020

2021

Japan Credit Rating
Agency, Ltd. (JCR)
long-term issuer rating

AA−

AA−

AA−

Rating and Investment
Information, Inc. (R&I)
issuer rating

A＋

A＋

A＋

Maturity date

30,0000.524

June 17, 2022

40,0000.100

September 19, 2024

60,0000.200

September 18, 2026

50,0000.270

September 19, 2029

*CCW：Coca-Cola West Co., Ltd.
*CCBJH：Coca-Cola Bottlers Japan Holdings Inc.

* Awarded to CCBJH and some of its Group companies.
* Also received the Directorʼs Award for Excellence in Disability Hiring in 2019 from the Bureau of Industrial and Labor Affairs.

Participation in External Initiatives［Stock Price and Stock Trading Volume］
Stock Price(Yen)

Stock Trading Volume(Thousands)

30,000We are working to resolve social issues through participation in a number of external initiatives.

28,00026,00024,00022,000

Nikkei Index (Close)

20,00018,000□ ■ CCBJH Stock Price■
CCBJH Stock
Trading Volume

16,0004,000

35,000

3,500

TCFD Consortium

The United Nations
Global Compact

Business for Marriage Equality（BME）

Business Support for LGBT
Equality in JapanThe CEO Water Mandate

30,0003,000

25,0002,500

20,000

2,000
1,500

15,0001,000

10,000
5,000

500
0

Task Force on Climate-related
Financial Disclosures (TCFD)

1

2

3

4

5

6

7

2019

8

9

10

11

12

1

2

3

4

5

6

7

2020

8

9

10

11

12

1

2

3

4

5

6

7

2021

8

9

10

11

12

1

2

3

2022

4

5

(month)0Japan Climate Initiative* In addition, we have endorsed the GX League Basic Concept announced by the Ministry of Economy, Trade and Industry aiming for carbon neutrality by 2050, andthe Leading Tenant Action Plan of the Ministry of the Environment containing decarbonization initiatives led by companies that are tenants in buildings, with the aim ofachieving net zero GHG emissions by 2050.

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