Annual Review 2019

Coca-Cola Bottlers Japan Holdings Inc.
Tokyo Midtown Tower, 9-7-1 Akasaka, Minato-ku, Tokyo 107-6211, Japan

Coca-Cola Bottlers Japan Holdings Inc.

Top Message

Review of 2019

The outlook for 2020

coronavirus situation as well as longer-term trends, and will
strive to offer products with packaging and pricing suited toconsumption opportunities. To achieve sustainable growth in
the vending channel, we have been expanding theoperational process transformation that we launched in 2019,from the initial Kinki region pilot to a nationwide rollout. We
also have been making efforts to expand in untappeddomains, including further development of the Lemon-dou
alcohol brand that was launched nationwide in October 2019.
In manufacturing, we are on track for commissioning four
new production lines in 2020, including the opening of the
new Hiroshima plant, as we fully recover from the disruption
from natural disasters and set a solid foundation for future
growth. In distribution, we will continue to optimize our logistics
and distribution network with the construction of large-scale
distribution facilities, including the Saitama mega-DC. As acost reduction initiative across support functions, we willcontinue to standardize and consolidate routine back-office
work using a shared services model. Moreover, we haveincreased our focus on achieving specific ESG targets basedon creating shared value with communities, including theexecution of a human resource strategy based on our new
mission, vision, and values, and our 2030 Packaging Visionthat aims for a “World Without Waste.“
While we continue to face an uncertain andunprecedented business environment during the novel
coronavirus pandemic, our first priority is to protect thesafety and health of our employees, including those working
on the front-lines to ensure safe and reliable supply of
products and services that are essential to people's daily
lives. While putting in place measures to minimize effects ofthe pandemic on our business, we will forge ahead with
important transformational initiatives that will create aplatform for medium- to long-term growth.
To all of our stakeholders, we ask for your continued
understanding and we thank you for your longstanding
support for our efforts.

Company Information

Amid expectations for a rebound in demand from thedecline during the cool summer of 2019, the 2020 soft drink
market in Japan was expected to be on par with the level of
2019, with a plan of 3% volume growth for Coca-Cola
Bottlers Japan. However, due to the novel coronavirus
pandemic and countermeasures such as working-from-homeand social-distancing announced as part of the Japan
government’s emergency declaration, the current businessenvironment has worsened and the outlook for the year has
become uncertain. We had also planned an active summer
marketing campaign aligned with The Coca-Cola Company,
as a Worldwide Partner of the Tokyo 2020 Olympic andParalympic Games, but are now reevaluating our marketing
calendar in light of the decision to move the events to 2021.
Under these circumstances, in the short term we areresponding quickly to changes in the business environment
caused by the pandemic with a variety of measures tomitigate the impact on our business. We are also looking
ahead to the business environment post COVID-19, and areaccelerating transformation initiatives with a focus on driving
significant effects from a medium- to long-term perspective.
Under the "Business as usual is not an option" theme
reflected in our mid-term strategic plan, we are transforming
our cost structure including, in the core vending channel
and across support functions, enhancing our manufacturing
capacity, investing in customer-facing initiatives such as
expanding selling space and growing market share, andinvesting in people capability and career planning as we
pursue major transformation in our business with the aim of
returning to a sustainable growth trajectory.
In our core beverage business, we will work to grow sales
through focused investment in select “Big Bets” brandinnovation and by strengthening our core portfolio of
products in 2020. We will also work to achieve best-in-classcustomer management and expand sales opportunities byimproving our market execution and strengthening our
relationships with customers. We will respond promptly torapid changes in consumer behavior due to the current

Financial Information

Coca-Cola Bottlers Japan Holdings Inc.

Learning
Agility
Result-orientation
Integrity

Corporate GovernanceIn 2019 we renewed our Company mission, vision, andvalues, in support of the mid-term strategic plan. Callingupon the Company to "Deliver happy moments to everyone
while creating value," we unified our mission, vision, andvalues under the words "Paint it RED! Let’s repaint our future."
This slogan uses RED, our corporate color and a color
representing passion, to express our strong will to create
sustainable value for our company and our stakeholders.
Our mission, vision, and values reflect the results oforganizational health surveys and insights from
communication between employees and top management.
They clearly state that we intend to continue as the partner ofchoice of our many stakeholders, including consumers,
customers, communities and shareholders. They also reflect
the importance that we place on integrity, agility, acommitment to learning by employees and the Company,
and a solid results-orientation in order to fulfil our vision ofsustainable growth.

ValuesCSV Initiatives

The Japanese soft drink market in 2019 saw a slight volume
decrease from the previous fiscal year due to the impacts oflong rains and low temperatures in July.
Positioning 2019 as a turning-point year for recovery fromproduct supply constraints caused by disaster in the previous
year and for reconstruction of our platform for future growth, wehave made investments aimed at the recovery of our supply
network and the progressive expansion of our manufacturing
capacity. Our strengthening of manufacturing capacity in 2019
included the commissioning of three new production lines at
our Kyoto and Kumamoto plants . We increased the wholesale
price of large PET products in April, and worked to establish afoundation for improved profitability and growth. In August, weannounced a five-year mid-term strategic plan that spans
2020 to 2024. Formulated in close cooperation with the
management teams of The Coca-Cola Company andCoca-Cola Japan, the plan seeks to achieve best-in-class
innovation and operations by carrying out fundamental
transformation with our mantra of "Business as usual is not an
option."Looking at financial results for 2019, the Company was hit
by a decline in beverage business sales volume due to alonger rainy season and cool weather during the peakseason, as well as ongoing manufacturing- and productdistribution cost increases amid efforts to restore theproduct supply network, with the subsequent recording of a
goodwill impairment loss. However, due to factors including
thorough cost reductions, our Business Income exceeded
the revised forecast announced in May 2019 for our core
beverage business, and consolidated results were roughly
in-line with the plan.

"Paint it RED! Let’s repaint our future."01

We are the preferred partner for our customers
We win in the market through sustainable growth
We lead a learning culture with commitment to growWe are the best place to work with pride for Coca-ColaBusiness Overview

Calin Dragan

VisionFinancial and Non-Financial
Highlights

Representative Director
and President

MissionDeliver happy moments
to everyone while creating value

FeatureSetting a new Company
mission and starting
the ﬁrst year of
the mid-term strategic plan

On behalf of the Company, I would like to express ourcondolences for those who have lost their lives due to thenovel coronavirus (COVID-19) and our wish for a fullrecovery to those suffering from the disease. Also, we would
like to express our sincere gratitude and appreciation to thehealth institutions and medical staff who are making every
effort to prevent the spread of the infection and provide
treatment.

Top Message

!
D
E
R
t
i
Paint
t
n
i
a
p
e
r
Let’s
.
e
r
u
t
u
f
our

Annual Review 2019

(This message was written as of the end of May 2020.)

02Feature

Annual Review 2019

Message from the CFO

FY2020-2024 mid-term Strategic Plan

Executing a flexible financial strategy

In August 2019, we announced a mid-term strategic plan from 2020 to 2024. Our aim is to achieve best-in-class
innovation and operations by transforming the business under the maxim "Business as usual is not an option."

to improve corporate value from

Representative Director, Vice President,
Chief Financial Officer●Accelerate growth with appropriate

incremental investment

2017～2019
Integration●Become a leading bottler in innovationand operations●Transforming cost structure andcompany culture●Igniting front-facing investments

03

Coca-Cola Bottlers Japan Holdings Inc.

Although this unprecedented business environment is
expected to remain for some time, we will continue our efforts
aimed at the improvement of profitability and ROE throughfundamental transformation of our business while maintaining
good stewardship of capital in this period of uncertainty.
( This message was written as of the end of May 2020.)

Wholesale Price Increase for Large PET Bottle Products
We were the first in the Japanese beverage industry to announce and implement awholesale price increase for large PET products in April 2019, the first time in over
25 years. We are always working to improve production and operational efficiency inorder to reduce costs, but we are also faced with increasing distribution costs andfluctuations in raw material prices. We continue to implement commercial initiatives
such as introducing higher value-added products and selling appropriate products(brand, package, etc.) at the optimal wholesale price. In addition to these initiatives,
we announced a revision to the wholesale price of large PET products and thesuggested retail price on April 1, 2019. We continue to promote Revenue GrowthManagement (RGM) initiatives that are focused on improving our profitability.

150 billion yen Bonds Issuance
In September 2019, we issued 150 billion yen of straight bonds. In our mid-term strategic business plan, weplan investments to build a solid foundation for sustainable growth and we will use it for strategic investment aswell as redemption of issued bonds, etc.

Company Information

To procure the funding needed for these necessary
investments for growth, we issued 150 billion yen in bonds in
September 2019. Faced with the challenges posed by thenovel coronavirus outbreak in 2020, we are even more
focused on maintaining good stewardship of capital in orderto ensure a solid financial position, sufficient liquidity andappropriate cash flows while re-evaluating priorities forcapital allocation, including capital expenditure anddividends. In the short term, we are putting in place

Cost efficiency &upfront investment

Financial Information

Good stewardship of capital

From 2018 to 2019, we raised the dividend, initiatedshare repurchase programs, and introduced othermeasures aimed at improving shareholder value. We also
employ a performance-linked stock-based compensation
program for executives. Up to two-thirds of compensation,
including performance-based bonuses, are tied toCompany performance.
Due to the ongoing uncertainties of the coronavirus
situation, we have decided to withdraw our full-year 2020
forecast until we can appropriately estimate the outlook forthe full year. Also, we have decided not to pay an interim
dividend in 2020, which will be the period most impacted
by the COVID-19 situation. And we have withdrawn our
full-year dividend outlook.
We are evaluating multiple scenarios for the 2020 plan,
as well as potential impacts to our mid-term strategic planassumptions, while at the same time, urgently
implementing mitigation plans to help protect the top line
and aggressively looking at cost-saving opportunities.

Growth from Commercial
transformation

subsidiaries, systems, processes●Delivering integration synergies

Corporate GovernanceOur mid-term strategic plan calls for investments aimed atrecovery from the disaster of July 2018 and building a solid
foundation for future growth. Under the theme of "Business as
usual is not an option," we intend to fundamentally transform
our business and improve profitability. Specifically, we will
focus on investing in efficient and scaled-up manufacturing
and distribution infrastructure that meets market needs,
driving business transformation in the important andprofitable vending channel, investing in IT to streamline
back-office work and transform working practices, andemphasizing human resources and capability development.

Toward the creation of shareholder value●Combining and standardizing company,

Expand revenue base

CSV Initiatives

Investing for growth

flexible measures to maintain a stable financial position, evenamid the rapidly changing business environment caused by
the novel coronavirus pandemic.

for growthBusiness Overview

My name is Bjorn Ulgenes. I assumed the role of Vice
President and CFO after the Annual Shareholders Meeting heldin March 2019. As CFO, I have responsibility for the Company's
financial strategies for sustainable growth. In our mid-term
strategic plan that runs through 2024, our Company is working
to improve its corporate value under three key financial
strategies: Investing for growth, good stewardship of capital,and creating shareholder value.

Financial and Non-Financial
Highlights

2020～2022
Reset and transform

Bjorn Ulgenes

mid-term strategic plan

Feature2023～2024
Further growth to become
best-in-class in Japan

a mid- to long-term perspective

The strategic financial framework of our

Top Message

TopicsWe have AA- long-term issuer credit rating from Japan Credit Raring Agency, Ltd. and A+ issuer rating from
Rating & Investment Inc. We believe these represent the positive evaluation of our financial position. (JCR rating
as of Jan.15,2020 and R&I rating as of Feb.28,2020)04

Feature

Annual Review 2019

Toward the Expansion of our Production Capacity

Our Response to COVID-19

Launched
two new lines
in February
andOctober 2019

Kyoto Plant (Kyoto Prefecture)

Hiroshima Plant (Hiroshima Prefecture)

Ibaraki Plant(Ibaraki Prefecture)

Daisen Plant(Tottori Prefecture)

Saitama Plant(Saitama Prefecture)
Iwatsuki Plant(Saitama Prefecture)
Tama Plant(Tokyo)Tokai Plant(Aichi Prefecture)

Donating products through food banks*

Akashi Plant(Hyogo Prefecture)

Launched
new line in
January

Kiyama Plant(Saga Prefecture)

2020

Ebino Plant(Miyazaki Prefecture)

2019

Hakushu Plant (Yamanashi Prefecture)

Kumamoto Plant (Kumamoto Prefecture)

Financial Information

Loss Reduction Promotion Act was enacted last year in Japan, and the activities of Food Banks are attracting more attention.

And more:

Saitama mega-DC

We have launched the "Refresh at Home” program, offering indoor exercise videos
and offering free drink tickets upon completion of exercise goals to a total of one
million people through Coke ON, the official Coca-Cola smartphone app.In addition,
to help address the issue of personal protective equipment shortages for medical
personnel, our company rugby team, the Coca-Cola Red Sparks, donated 3,000
plastic raincoats in response to a request from Osaka City. The team has also
launched “Refreshing training at home” exercise and training videos featuring
Coca-Cola Red Sparks players, which can be viewed on YouTube.

Company Information

Coca-Cola Bottlers Japan Holdings Inc.

Since 2016, CCBJI has partnered with Second Harvest Japan (member of Alliance of Japan Food Banks),
which is Japan’s first Food Bank organization, and the All-Japan Food Bank Association to donate beverage
products to those in need. In 2019, we delivered approximately 10,000 cases of beverages to various social
welfare facilities through 22 Food Bank organizations in cities across Japan.

*Food Banks are organizations where stocks of food, typically basic provisions and non-perishable items, are supplied free of charge to people in need. The Food

Toward the Optimization of our Distribution Network05

Due to the spread of COVID-19 infection, schools have closed, events arecanceled, and many people are asked to work from home. These changes in
our lifestyles in order to reduce contact with people can have a significant effecton children’s lives. In response, CCBJI has taken prompt action to support
communities in need during this challenging time by expanding our productdonation program. We have agreed to donate 4,153 cases (76,422 individual
beverages) to facilities such as children’s cafeterias and children’s centers via
16 Food Bank organizations in 11 prefectures in our sales territory.

Corporate GovernanceLaunched
new line in
March

In the area of distribution, the Company is advancing projects to build a supply
chain network that will achieve high quality, low cost, and stable supply. As acomponent of these projects, in 2019 we began the construction of the Saitama
mega-DC, a modern, automated distribution center on the grounds of our Saitama
Plant. The Saitama mega-DC will have a storage capacity of 60,000 pallets anda product shipping capacity of 81 million cases per year, the greatest respective
capacities within the Coca-Cola system in Japan. Scheduled for completion in
February 2021, the Saitama mega-DC will serve as a core distribution center forTokyo and Saitama Prefecture. We also launched new warehouses at the
Hakushu Plant and Kumamoto Plant. These use a high-density storage system tostore products in only half the space of conventional warehouses.

To back up the medical personnel who are engaged in the response to the
COVID-19 outbreak, Japan Coca-Cola System, which includes Coca-Cola
Bottlers Japan has started the "Refresh Japan" program to donate about 1.3
million bottles of beverages to medical institutions and frontline medical
professionals. Deliveries from each CCBJI sales center to the designatedmedical institutions for infectious diseases have started from mid-May through the Japan Medical Association.

CSV Initiatives

Komatsu Plant(Ehime Prefecture)

Ebina Plant(Kanagawa Prefecture)

Donation of beverages to Designated Medical Institutions for
Infectious Diseases and others through Japan Medical Association

Business Overview

Tosu Plant(Saga Prefecture)

Zao Plant (Miyagi Prefecture)• Hygiene guidance in line with Japan government advice reinforced across the organization• Clear advice and information sharing to support employees experiencing potential symptoms or concerned about exposure to the virus• Proactive large-scale work-from-home routines for all roles that can be done remotely• Restrictions on international travel• Support for employees who need child-care assistance during school closures• Cancellation of large-scale face-to-face meetings• Suspension of production plant tours and tight restrictions on visitors to our sites• Strengthened business continuity planning and scenario analysis for every CCBJH location

Financial and Non-Financial
Highlights

Launching
new linescheduled
in 2020

FeatureDuring this outbreak of COVID-19, the safety and health of our employees,
our customers and our communities is our number one priority. Our mission isto deliver happy, refreshing moments to everyone, even in challenging times,
and we have been working with comprehensive business continuity actions inplace to ensure safe and secure product supply as essential goods andservices. We are supporting various local communities through our products,
and we continue these actions.

To respond promptly to a rapidly changing market environment and the diversifying needs of consumers andcustomers, the Company is working to expand manufacturing capacity and optimize our distribution system. In
terms of production, we are launching seven production lines in 2019 and 2020, including operations at the new
Hiroshima Plant, to address the rapid increase in demand for PET bottle coffee drinks and other aseptically filledstill beverages as well as to restore production capacity lost due to damage from heavy rains in July 2018.
Launching
two new lines
scheduled
in 2020

Top Message

TopicsFinally, in June we announced the introduction of an additional layer of protection tosales equipment by covering touch points on vending machines withantivirus/antibacterial film.
06Financial and Non-Financial Highlights

Annual Review 2019

Financial and Non-Financial Highlights（2019 results）
Top Message

Financial highlights

Non-Financial Highlights

Revenue

927.3

15.0

billion yen
914.8

We regard the promotion of diversity and inclusion as an important business challenge and we respect thediversity of our workforce in order to provide a working environment that allows all employees to leverage theirfull potential, regardless of gender, age, disability, nationality or sexual orientation.

billion yen

Business Income Margin: 1.6%

(billion)(billion)

23.3
15.0

233

Women in manager
and leader
positions *1％(As of March 26, 2020)

22％

Employment of persons withdisabilities*2

Number of employees who
used childcare
leave

2.59％

144

Financial and Non-Financial
Highlights

8

Women on the Boardof Directors

Feature914.8

Inclusion

Business Income*in manager positions: 4.6%
*12 Women* Figures for CCBJI in the “Employment Report for Persons with Disabilities” (June 1, 2019) submitted to the Director of Public Employment Security Office, 2019.

2018

2018

2019

Operating Income

Net Income Attributable to Owners of the Parent

billion yen(billion)

14.7(58.0)(billion)

10.1

2018

2.7％

97.3％

Net income attributable to owners of the parent
declined by 68.1 billion yen from the previous fiscal
year to a loss of 58.0 billion yen driven by the
decline in operating income.

■Healthcare &Skincare Business■Healthcare &Skincare Business07

Coca-Cola Bottlers Japan Holdings Inc.

About

Resources
Water usage in production
processes

Water used to produce
1L of product3.26L/Lｰ 2.2% (YoY)

Recycling rateof industrial
waste

Energy consumption in
production processes*3

5,654million MJ About 99.7％
ｰ 3.4% (YoY)

CFC-freevending
machine ratio

Energy used to produce
1L of product0.87MJ/L

ｰ 1.9% (YoY)

About

77％

External recognition of CCBJH and/or group companies

23.9％

76.1％
L-boshi

11.4 billion yen
3.6 billion yen*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.

1,900

20times

KuruminCompany Information〈Business Income〉■Beverage Business24.8 billion yen

5,400

Number of beverage education
seminars/number of participants*3 The calculation base for data was changed in 2019. Year-on-year figures are based on comparisons with 2018 figures set to the same base as 2019 figures.

■Beverage Business890.0 billion yen

About

ｰ 4.9% (YoY)

2019

Segment Information〈Revenue〉

Number of participants incompany sports clinics,
and rugby and hockey classes

38times About 6,100

Financial Information

Operating income declined by 70.1 billion yen from theprevious fiscal year to a loss of 55.4 billion yen, driven by
the impairment of goodwill, recorded in Q2, and a
special retirement allowance due to the implementationof a voluntary retirement program in addition to thedecline of Business Income.

5plants About170,000

Number of hydration seminars/
number of participants

Corporate Governance

2019

Number of participants in plant tours

13,316k㎥(58.0)(55.4)

2018

billion yen

Communities

CSV Initiatives(55.4)

Business Income declined by 8.2 billion yen from theprevious fiscal year to 15.0 billion yen due to thedecline in revenue, lower manufacturing efficiencies
and elevated logistics/distribution expenses as werecover from supply disruption, and decline in profit
in the Healthcare & Skincare Business, which werepartially offset by a decline in labor expenses led byvoluntary retirement programs and the consolidationof retirement benefit systems, as well as thoroughcost-cutting initiatives.

Business Overview

Revenue declined by 12.5 billion yen from theprevious fiscal year to 914.8 billion yen, as thewholesale price rise of large PET bottle products in
April 2019 and initial contribution of Lemon-dou
alcoholic beverege were offset by sales volume
decline.

2019

Health & Productivity Management
Organization 2020（White 500）

Also received the Director's Award for Excellence in Disability Hiring from the Bureau of Industrial and Labor Affairs

For more details on our CSV priorities and progress, please refer to our CSV report and company website.
08

Business Overview

Annual Review 2019

Overview of Coca-Cola Bottlers Japan Inc. (CCBJI)
Sales area

35 prefectures
About

112 million(About 51 million households)

50

Coca-Cola (Japan) Co., Ltd.

Planning

ResearchandDevelopment

Productionof Syrup
Concentrates

Coca-Cola Bottlers Japan Inc.
Producing
Products

Product
Distribution

Sales

Collectionof Containers

Recycling ofContainers

SKUs

Over

800

Coca-Cola Tokyo Research &Development Co., Ltd.

Coca-Cola Bottlers in Japan other than CCBJH
Hokkaido Coca-Cola Bottling Co., Ltd.

Hokuriku Coca-Cola Bottling Co., Ltd.

Michinoku Coca-Cola Bottling Co., Ltd.

Okinawa Coca-Cola Bottling Co., Ltd.

Business Overview

Population andnumber of households
in areas of coverage

Over

The Coca-Cola system in Japan consists of Coca-Cola (Japan) Company, Ltd., responsible for supplying
concentrate, product planning/development, and marketing activities including advertising, etc., and bottler
companies that produce and sell the finished products, as well as other affiliated companies. Our company andother bottler entities produce beverages under strict quality management in the respective plants and deliver
Coca-Cola products to the customers through business outlets and vending machines.

Financial and Non-Financial
Highlights

Consumers in sales area

BrandsThe Role of CCBJI in the Coca-Cola System in Japan

FeatureTokyo,Kyoto,Osaka andTop Message

Beverage BusinessHistory of our Company (Background to major mergers and consolidation)
Sales volume*2019 results

17 plants*Including the Hiroshima Plant,

which is scheduled to start operations in 2020.

Five bottlers, including our Company, currently produce and sell Coca-Cola products in Japan. Since 1999, we
have expanded the scale of our business through business integration to become Japan's largest Coca-Colabottler handling about 90% of the sales volume in Japan.

1998

Vending machines

700K*As of end of 2019

Sales and
distribution centers

350*As of end of 201909

Coca-Cola Bottlers Japan Holdings Inc.

Customer outlets

About

240 K

*As of end of 2019

Fleet vehicles

16,000Company Information

About

5

bottlers

Financial Information

About

6

bottlers

From April 2017 to present

Corporate Governance17

bottlers

March 2017

CSV Initiatives

500

Over
million cases

PlantsAbout*As of end of 201910

Business Overview

Annual Review 2019

Channel Overview

The NARTD market in Japan has been growing steadily, with market scale expanding by 20 % over the
past 18 years.

Chain Stores（Supermarkets, Drugstores & Discounters, Convenience Stores）■Trends in Market Size (Shipment volume - physical case)
2001

2019

Water

Other

16 ％

Vending

Sports

39 ％

9％

22 ％

Tea

28 ％

Supermarket

23 ％Sparkling

Other

Other

9％ 13 ％

12 ％

Juice

12 ％

Convenience
Store
％

23

Coffee

24 ％

Water

Vending

13 ％

27 ％

Sparkling

9％ 14 ％

6％

Supermarket

Coffee
Tea

30 ％

38 ％

Juice

8％

SportsFinancial and Non-Financial
Highlights

Convenience
Store

Other

5％

Category

ChannelIn supermarkets, we are working to energize sales floors by actively
rolling out new products and conducting campaigns geared toseasons and events. Additionally, we are undertaking careful sales
activities, including selling the right products (brand, volume, etc.) at
optimal wholesale prices to satisfy customers' circumstances andconsumer demand. At convenience stores, we are driving sales
growth by introducing new products and products that meet the needsof convenience store users.

FeatureCategory

ChannelTop Message

The NARTD Market in Japan

Vending (Vending Machines)

20 ％Millions of cases

2,000

1,902

Business Overview

1,800

We are preparing product lineups optimized for thelocations of vending machines, and are rolling out new
products and campaigns exclusive to vending
machines. We are carrying out exclusive campaigns
through our Coke ON smartphone app, whileproviding new value to consumers through Coke ON
Walk, which lets users earn drinks just by walking, andCoke ON Pay, which enables cashless settlement.

1,610

1,600

1,400

0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Year■ CCBJI Sales Volume(2019 results)
Other

Other

1%

23%

23%

ChannelDrugstore &Discounter

13%

Vending

Convenience Store

7%

Coffee20%

10%Sparkling

26%

Category

8%

Sports

9%

Syrup

4%

20%

7%
Small-sized
PET

13%
Bottle canNon-sugar tea

Water

3%

PackageCan

13%

Large-sized PET

21%

39%

Retail & Food Service (Restaurants, Kiosks, Online etc.)
In restaurants, we are expanding our product lineup by
proposing drinks using our products, such as "mocktail"non-alcohol cocktails. At kiosks and hotels, we are working withcustomers to improve services to consumers, offering new andcore brand products and proposing sales approaches tailored tocustomers' businesses. In addition, we are focusing on sales
activities to online shops in response to growing consumer
demand.

Company Information

Coca-Cola Bottlers Japan Holdings Inc.

15%

Juice

Financial Information

Supermarket

Retail & Food
service25%

PowderOther

In the vending channel, one of the cornerstones of our business, welaunched the "Smiles begin here" campaign in October 2019. In
commercials and promotions, the campaign expresses life's "happy
moments" that take place around Coca-Cola vending machines. Throughour 700 , 000 vending machines found in every region, we will continue
offering a full lineup of products, convenient cashless payment,
campaigns through the Coke ON smartphone app, and other forms ofvalue that our vending machines make possible.

Corporate GovernanceSource：Inryou Souken

11

CSV Initiatives

Making Coca-Cola vending machines more beloved.
"Smiles begin here." Campaign

1,200

12

Business Overview

Annual Review 2019Marketing Topics

As a "Total Beverage Company", we offer products across a wide variety of categories such as Sparkling,Non-sugar tea, Coffee, Water, Sports and more.

Launched Coca-Cola Olympic Games Tokyo 2020 Design Bottles

Key brands by beverage category:S p arkling

N on - sug ar Te a

Cof fe e

Wate rS p or ts

Top Message

Product Overview

FeatureTogether with the Coca-Cola Company, a Worldwide Olympic Partner and Worldwide Paralympic partner, we
are working to revitalize the market through marketing campaigns that leverage the assets of the Tokyo 2020
Games. Although the Olympic and Paralympic Games Tokyo 2020 have been postponed to 2021, we willcontinue to promote the Games through our sales activities.

Financial and Non-Financial
Highlights“Coca-Cola” Olympic GamesTokyo 2020 Design Bottle

Sparkling

Ayataka

We launched four flavors of Lemon-dou, a lemon sour alcohol brand inspired by the deliciousness of sours in bars, acrossall our sales territories. Adopting a preparation method that soaks whole, grated lemon in alcohol ahead of serving, wehave created a lineup of four lemon sours in flavors popular at bars, differing by percentage of alcohol and lemon juice.

New Products in 2020
Fanta Premier Grape

Corporate GovernanceNon-sugar Tea

Georgia Latte Nista
Cafe Latte and Bitter Latte

Financial Information

Made with carefully selected domestic tea leaves, Ayataka is a tea
with the authentic flavor of cloudy, teapot-brewed green tea. In
2019, we strengthened sales by renewing Ayataka sub brands andlaunched the "Ayataka Tokyo 2020 Olympic Memorial Design
Bottle" to commemorate Ayataka's status as the official green tea for
the Tokyo 2020 Olympic Games. In 2020, we launched "Wagara
Design" bottles for the brand featuring traditional, colorful Japanesemotifs, along with Ayataka Koi Ryokucha, which features a rich taste
and cloudy goodness from matcha tea. We also renewed Ayataka
Tokusencha, a Food for Specified Health Use (FOSHU) that works
on fat and sugar in foods.

CSV Initiatives

Coca-Cola is the number one brand in the carbonated soft drinks
market. In 2019, we launched “Coca-Cola Energy” which is the firstenergy drink from brand Coca-Cola and we worked to revitalize thebrand by launching campaigns to build excitement ahead of theplanned Tokyo 2020 Olympic Games as well as seasonal marketing
communications. In 2020, we launched in the Tokyo region
Coca-Cola 350 ml and 700 ml PET bottles as new container sizes
suitable for take-out at supermarkets, drug stores and discount stores.
And also, we launched "Coca-Cola Frozen Lemon" that allows
consumers to enjoy a special taste with a new texture.

Company-wide launch of “Lemon-dou” lemon sour

Business Overview

Coca-Cola

Georgia

Fanta is the number one＊ brand in the fruit
carbonated soft drink category and remains much
loved especially among teens. We launched Fanta
Premier Grape, specially made with grape juicepressed within 24 hours of harvesting and withmashed grape puree for a taste that adults love.

We launched Georgia Latte Nista Cafe Latte andGeorgia Latte Nista Bitter Latte, latte specialty
coffee in PET bottles with the milky taste of café
drinks. These products offer a rich milk taste in a
simple, smaller-sized bottle for latte enjoyment
whenever and wherever consumers like.

Company Information

CoffeeGeorgia is a coffee brand which is beloved by a wide range ofconsumers. The brand delivers distinctive and varied tastes throughits commitment to high-quality coffee beans and manufacturing
processes. In 2019, we launched new products including Georgia
Japan Craftsman Bito, which offers cold-brew deliciousness in a
PET bottle. We also marked 25 years of our core brand Georgia
Emerald Mountain Blend by launching Georgia Emerald Mountain
Blend Premium, along with canned coffee featuring a design madein collaboration with the popular comic Mobile Suit Gundam, asefforts to energize the brand. Also in 2020, we launched Georgia
Latte Nista, a latte specialty coffee with the milky taste of café drinks.

＊Survey by INTAGE Inc. SRI ® (Nationwide Retail Store Panel Survey):
Most recent 12-month (February 2019 to January 2020) aggregate

sales share and unit share of fruit carbonated soft drink category

For details on label permissions and submitted claims of FOSHU beverages, see https://www.cocacola.co.jp/inryoguide/lineup (in Japanese only).

13

Coca-Cola Bottlers Japan Holdings Inc.

14

Business Overview

Annual Review 2019

The operation of our healthcare and skincare business is centered on Q'SAI Co., Ltd., our wholly-owned subsidiary.

Market Size for Health Food and Cosmetics Products in Japan■Trends in Market Size of Health Food

■Trends in Market Size of Cosmetics

Unit: 100 million yen

In the home shopping channel, which accounts
for about 90% of revenue, we made efforts toenhance consumer attraction through television
infomercials and the official shopping site. Also,
we are working to expand our sales channel bylaunching channel-exclusive products as well as
selling our products to the food service industry
such as hotels and restaurants, and retailchannels such as supermarkets and drugstores.

30,000

8,450

8,614

8,675
25,00024,01024,71525,45026,49027,200

Aojiru server
for food service
industry

Product Overview
2.9%

20,0005,000

Skincare

0
2017

2018

The market size is based on the shipment values at makers.
*2019
estimation is as of December 2019.

2019 Fiscal year
（Estimation）

Source: Survey on the Health Food Market, 2020, Yano Research Institute Ltd.

Healthcare

51.6%

Revenue
Composition
by
Product

Healthcare Products0
20162019 Results

2015

2016

2017

2018

2019 Fiscal year
（Projection）

The market size is based on the shipment values at brand makers.
*2019
projection is as of September 2019.

Source: Survey on the Cosmetics Market, 2019, Yano Research Institute Ltd.

Made with 100% domestic kale grown without agriculturalchemicals and chemical fertilizers, this product is rich inbeta-carotene, calcium, potassium, vitamin C, dietary fiber, andother nutrients often lacking in diets. Consumers can choose not
only powder type but also frozen type and tablet type according
to their preference.

Major new products
LunchedApril 1,2020

CSV Initiatives

Celebrating our 55th Anniversary
with a New Logo and Corporate Slogan!

》
THE KALE Series

Business Overview

45.5%

15,000

TOPICS

Official shopping site

Financial and Non-Financial
Highlights

8,196

Other

2015

Infomercial program

Unit: 100 million yen

10,0008,067

Home Shopping

FeatureDriven by consumers' increased consciousness toward health and beauty, the market size for health food andcosmetics products in Japan has seen steady growth.

Channel Overview

Top Message

Healthcare & Skincare Business》
Kale

de Kirei
Delicious, fun and easy to drink for those who dislike kale juice
Supporting inner beauty in a sustainable way

Q'SAI also launched a new skincare brand Skinkalede, refreshed the names and packaging of coreproducts, and renewed the design of its website. Q'SAI will continue providing new value to ever moreconsumers.

The "Cola-rich" series is a skin care series developed under thestrict standard fostered in the health food field. We are enriching
the line-up with beauty
products such as BB Creamand the all-in-one Cola-richbeauty gel cream that brings
together the functions oflotion, milky lotion, serum,
moisturizing serum andcream.

Order by phone

0120 - 09 -5555［Time］9：00 ～21：00 Open all-year-round》
Skinkalede

Balancing Lotion

Launched
October
16, 2019

With extract* of kale leaves
Made with luxurious
beauty-enhancing
ingredients that keep skinhealthy
A fresh and refreshing
Mediterranean aroma

Company Information

THE KALE (Kale Aojiru) Series new packaging

Major new products》
Cola-rich Series

Financial Information

New logo, new corporate slogan

Skincare Products

Corporate GovernanceIn October 2019, Q'SAI unveiled a new logo and corporate slogan. Through this, the brand is shifting its
image from that of a kale juice (aojiru) company to one that enables and supports consumers' flexible
lifestyles.

Four themes and tastes: probiotic health, muscle
development, body warming and beauty support, all withthe power of kale

* Moisturizing ingredients
Official shopping site

https://www.kyusai.co.jp/(Japanese language only)

15

Coca-Cola Bottlers Japan Holdings Inc.

16

CSV Initiatives

Annual Review 2019

Initiatives Aimed at Creating Shared Value (CSV) with Society
Placing Creating Shared Value (CSV ) at the core of our management, and taking the respective importance of society and our business
into account, our Group has identified three key themes that we will address over the coming 10 years: inclusion, local communities, andresources. As part of the Coca-Cola system in Japan, we are committed to create a sustainable business and shared future that makes adifference on important challenges facing Japan, including the environment, people’s lives and our communities.
As an important element of our mid-term strategic plan. we formulated and are working to achieve CSV goals that demonstrate our group
commitment to ESG (Environment, Social and Governance) priorities.

The targets outlined in our CSV Goals are aligned with our strong commitment toward a World Without Waste, including our sustainable packaging
program "2030 Packaging Vision" developed jointly with the Coca-Cola (Japan) Company.
While accelerating initiatives to create shared value (CSV), we aim to achieve the "2030 Packaging Vision" to make "World Without Waste" a reality asa member of the Coca-Cola system and to demonstrate leadership in the beverage industry.

■ 2030 Packaging Vision
DesignDisabilities

Focus
topics・Initiatives that are sustainable

Greenhouse gas emissions

and additionally have local
relevance

Collection

17%

Water

resources)

Amount of PET Resin Used

Collect PET bottles atrecycling containers“BtoB”% from 2018 figures

Packaging / PET

national platforms(inclusion,

LGBTQ

Approx.

Resources

・Drive impact through two

Age / Generation

Bottle-to-bottle / Sustainable materials( present)

Renewable energy

Usage of 100% recycled PET
resin in I LOHAS Mineral Water

By

Approx.

Partner

21%

Approaches

Joint project with Seven & i
Holdings, Hajime Ryokucha̶
made from 100 % recycled PET
resins from PET bottles
entirely collected at 7 & i
Group retail stores

Financial and Non-Financial
Highlights

GenderPriority
topicsCommunities

Collect

FeatureThree Platforms and Nine Priority Issues of Coca-Cola System Sustainability Activities

Inclusion

Top Message■Our CSV Policy

Topics Toward a World Without Waste“BtoB”% from2019 figures

Business Overview

50 % or more

“BtoB”% at least 50 %By

CCBJH initiative examples
Promotion of diversity &●Promotion of active participation●●

Promotion of employment of
persons with disabilities●

Promotion of work/life balance●

Water resource protection

disasters, etc.)●

Reduction of greenhouse gas

vending machines (support during

inclusion

by women

Regional contribution leveraging●●●

Sports clinics through company

rugby and field hockey teams, etc.

Areas

Products

Water

Adoption of containers with low

Fiscal year achieved

Collect an amount of PET
bottles equivalent to the
Coca-Cola products soldin Japan

Launch of 100% recycled PET bottle*1 product “I LOHAS Natural Mineral Water”
We launched the I LOHAS Natural Mineral Water 100% recycled PET bottle made with 100% recycled PET in March
2020. Until now, I LOHAS Natural Mineral Water had used bottles made with 30% recycled PET. By achieving the

100%

2025

FOSHU/functional product growth

300%

2025

Front-of-pack calorie label and straightforward nutritional information

100%

2025

Observation of The Coca-Cola Company Responsible Marketing Policy

100%

2025

Water source replenishment. Focus on watersheds near our plants

200%

2025

Water usage reduction

30%

2030

Reduction in greenhouse gas emissions

25%

2030

Promotion of renewable energy

ー

2025

6%

2025

product that uses closed-loop bottle-to-bottle recycled PET packaging. This means that we sell products made from

10%

2025

100% recycled PET resin, which is sourced exclusively from PET bottles collected at Seven & i Group stores.

1 million people

2025

In April 2020, in order to further advance our sustainable packaging goals, we introduced three new products to the

50%

2022

Hajime Ichi Nichi Ippon brand series: “Hajime green tea with Shizuoka tea”, “Hajime green tea with Uji tea” and “Hajime

90%

2030

green tea with Yame tea”, all of which also use closed-loop bottle-to-bottle recycled PET. This switch to closed-loop

100%

2030

recycling has the added benefit of helping to reduce CO2 emissions per bottle by approximately 25%*2.

100%

2025

35%

2030

100%

2030

ー

2030

Employee volunteers
Participants in community programs

World Without Waste Adoption of recyclable packaging

Further lightweight PET packaging (compared to 2004)
Collection percentage compared to sales volume
Extensive partnerships across industry and environmental organizations

Procurement

Sustainable sourcing

100%

2025

Human rights

Adherence to Supplier Guiding Principles across the CCBJH Group value chain

100%

2025

(Base year is 2015)

For more details on our CSV priorities and progress, please refer to our CSV report and company website.
Coca-Cola Bottlers Japan Holdings Inc.

difficult technology for enhancing the transparency of conventional recycled PET bottles and by enabling mass
production of bottles in cooperation with partner companies, we achieved the introduction of 100% recycled PET bottle.

*1 100% recycled PET content

Expanded usage of closed-loop bottle-to-bottle recycled PET packaging to the "Hajime Green Tea"
series in collaboration with Seven Premium and Hajime Green Tea Brand
Hajime green tea brand “Ichi Nichi Ippon" series, launched in June 2019 in collaboration with Seven Premium, is aCompany Information

Sustainable PET without fossil fuel use

Various approaches
working with partners tobuild on collection andrecycling schemes(Bottle-to-bottle means collecting and recycling used PET bottles for use in new PET bottles.)Zero/low-calorie options for core brands

Content of recycled PET in PET bottles

17

Rate of “BtoB”
recycling toenvironmental impact, etc.

TargetDiversity & inclusion Female managers
Society

Promotion of recycling

Amount of PET plastic used ineach product reduced by 35%(compared with 2004)

Amountcollected

Financial Information

Climate change●

Zero additional
new Fossil Fuels
Sustainable materials
to be made 100 % using
recycled PET resin orbio-based plastic

Amountsold

Corporate Governance■CSV Goals

emissions●

35 % reduction

Bio-based
PET plastic

activities

Seminars on hydration

Let's Learn from the Forest Project

By

CSV Initiatives●

or
All PET bottles will be made fromrecycled PET resin or bio-based PET plastic*2 Research by Coca-Cola (Japan) Company

Launched I LOHAS Natural Mineral Water Labelless,a first for the Coca-Cola system"I LOHAS Natural Mineral Water Labelless" is a product that eliminates the need to remove the label whenseparating trash. In addition, the container uses 100% recycled PET bottles, making it an environment-friendly
product. This product was introduced for the first time in the Coca-Cola system and has been sold throughonline channels, etc. from April 2020.

18

Corporate Governance

Annual Review 2019

Basic Stance on Corporate GovernanceCalin Dragan

Bjorn Ulgenes

Hiroshi Yoshioka

Has worked with Coca-Cola bottlers,
including in Japan, for about 20 years.
Most recently, served as President of The
Coca-Cola Company's Bottling
Investments Group.

Has experience with finance in the
Coca-Cola system in Europe, the Middle
East, Africa, and Japan. Most recently,
served as Deputy Finance Director of The
Coca-Cola Company's Europe, Africa andMiddle East (EMEA) Group.

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

Hiroko Wada

Hirokazu Yamura

Irial Finan

Has abundant experience in marketing,management, and organization and humanresource development in the consumer
goods industry. Has served as a directorof The Procter & Gamble Company,
representative director and president of
Dyson and of Toys "R" Us-Japan, Ltd.

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

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. Currently serves as Director of
Coca-Cola European Partners.

Celso Guiotoko

Representative Director and President

Representative Director, Vice President,
Chief Financial Officer

Outside Director, Independent Director
Financial and Non-Financial
Highlights［Chart of Corporate Governance Structure］

FeatureOur basic stance on corporate governance is to seek improvement of management quality, efficiency andtransparency in order to increase mid- to long-term corporate value and shareholder value.
We have established the Audit and Supervisory Committee to further strengthen our governance system. The
Audit and Supervisory Committee, which takes a lead role in audits, is composed entirely of outside directors(Audit and Supervisory Committee members), including multiple independent outside directors. The Audit andSupervisory Committee members have voting rights at the Board of Directors meetings and the right to express
opinions on directors' nominations and compensation at the General Meeting of Shareholders. As a result, ourmanagement oversight functions have been further strengthened.
In addition, we have adopted the executive officer system to separate decision-making and management
oversight functions from business execution functions. Certain important business execution decisions are
entrusted to directors, so that the Board of Directors can deliberate on matters of particular importance. For
other matters, we place emphasis on speed of management decisions by the Executive Leadership Team.

Top Message

Board of Directors （As of March 26, 2020）

General Meeting of Shareholders
Election/Dismissal

Reporting/Stating Opinions

Board of Directors

Business Overview

ReportingElection/Dismissal

Election/Dismissal

Representative Directors
ReportingInternal Audit Office
Auditing

Auditing

Executive Officers
Group Companies

DivisionsExchange opinions
Coordination
Auditing

Outside Director, Independent Director

Outside Director, Independent Director

Outside Director (serving on the Audit &Supervisory Committee)

Corporate Governance

Reporting
Auditing/Determining proposals for election or dismissal

Supervision/Reporting

Audit & Supervisory Committee

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

Selection/Supervision/Delegation of
execution of important operation

CSV Initiatives

Financial/Accounting Auditor

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

Coordination

Audit & Supervisory Committee

Coca-Cola Bottlers Japan Holdings Inc.

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

Enrique Rapetti

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

Has a wealth of experience infinance and accounting,including managing her own financeconsulting company as well as
management experience in Lehman
Brothers Japan Inc.

Has extensive experience related tofinance and accounting in the Coca-Colasystem. Currently serves as CFO, Latin
America Group and is scheduled to assume
a new role as CFO, Asia Pacific Group,
The Coca-Cola Company.

Governance & Independence

Outside Director (serving on the Audit &Supervisory Committee)

Diversity and Professional Skillset

Executive
Directors

Independent
Directors

Outside directors in
Audit & Supervisory
Committee (ASC)

2

5

4

2

22%

56%

100%

22%

Women on the
Board

Nationalities

Coca-Cola System
Experience

Finance/Audit

FMCG

IT/Manufacturing

6

5

4

6

2

56%

44%

67%

22%

Company Information

19

Nami Hamada

Financial Information

The Audit & Supervisory Committee is composed of four outside directors including multiple independent outside
directors. Meetings of the Audit & Supervisory Committee shall be held once every three months in principle andmay be held as necessary. The directors who are members of the Audit & Supervisory Committee conduct
audits aimed at checking the status of business execution by the directors, executive officers and employees inaccordance with related laws and regulations, the articles of incorporation, and the audit standards andguidelines established for and by the Audit & Supervisory Committee, by participating in the Board of Directors
meeting and reviewing the results of the audits conducted by the Internal Audit Office and Accounting Auditor.
A system to ensure sufficient oversight of business execution by executive officers is established, which includes
the regular exchange of opinions between the Representative Director and the members of the Audit &Supervisory Committee on the results of the aforesaid audit activities.
The tenure of directors who are members of the Audit & Supervisory Committee is two years or less as stipulated
in the Companies Act in Japan (i.e., until the conclusion of the General Meeting of Shareholders in the last fiscal
year of tenure).

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

Figures in circles represent the number of corresponding directors. The figure for nationality represents the number of nationalities of directors.

20

Corporate Governance

Annual Review 2019

Evaluation of the Effectiveness of the Board of Directors

The Board of Directors consists of up to 10 directors（the number specified in the Articles of Incorporation, excluding directors

The Company evaluates the effectiveness of the Board of Directors based on self-evaluation by Directors concerning operation of theserving as Audit & Supervisory Committee members）and up to 7 directors serving as Audit & Supervisory Committee members. The
composition reflects an appropriate balance of diverse knowledge and expertise of company management, financial strategy, risk
management, legal compliance, and other matters. In addition, in light of the important role of outside directors in corporate

nominates persons who are considered to contribute significantly to increasing the corporate value of the Company.

further enhance and deepen the Board of Directors' discussions according to changes in the business environment, and towardOutsideIndependent directors

Female directors

Female directors
Term ofoffice(Year)

OutsideDirector

Audit & Supervisory
Committee members

Independent
directors

Calin Dragan

Male

March 2019

1

ー

ー

Bjorn Ulgenes

Male

March 2019

1

ーHiroshi Yoshioka

MaleApril 2017

1〇

Hiroko Wada

FemaleMarch 20191

Hirokazu Yamura

Male

March 2020

Irial Finan

MaleApril 2017

Celso Guiotoko

MaleNami Hamada
Enrique Rapetti

7／9
5／9
2／9

Training for Directors
The Company provides directors, including outside directors, with training, outside seminars, and other opportunities considerednecessary for fulfilling the roles and legal responsibilities required of directors, while acquiring necessary knowledge of the Group's

Attendance in 2019
Board of Directors
meetings

Audit & Supervisory
Committee meetings

ー

6/6

ー

ー

ー

6/6

ー

ー

〇

8/8

ー

〇

ー

〇

6/6

ー

1

〇

ー

〇

ー

ー

2

〇

〇

ー

8/8

8/8

March 2019

2

〇

〇

〇

6/6

6/6

FemaleMarch 2019

2

〇

〇

〇

6/6

6/6

Male

March 2020

2

〇

〇

ー

ー

ー

if the outside director or candidate does NOT fall under any of the following requirements through investigation by the Company.

■Reasons for appointment of outside directors
Independent
Director

Outside Director○

Outside director(Audit & Supervisory
Committee member)

Nami Hamada

Enrique Rapetti○

Hirokazu Yamura was appointed to enable the Company to leverage his extensive
managerial experience and insights cultivated through experience as Representative
Director & President of Michinoku Coca-Cola Bottling Co., Ltd.

○

Appointed for his extensive experience and global insights as a corporate manager, with many years of
involvement in the Coca-Cola business as an outside director of a Coca-Cola bottler in Japan, as part ofmanagement of The Coca-Cola Company, and as representative of the Bottling Investments Groupsupervising Coca-Cola bottlers worldwide, and for auditing experiencing as a Director and Audit &Supervisory Committee member of the Company.

Enrique Rapetti was appointed for his extensive management experience and extensive
knowledge of finance and accounting cultivated as CFO, Latin America Group, The
Coca-Cola Company.

and experiences.
● Compensation composition ratio emphasizing performance-linked compensation, resulting in providing sufficient incentives forshareholders.
Process for determining compensation

Compensation for Executive Directors shall be deliberated by an Audit & Supervisory Committee composed solely of Outside
Directors to enhance the transparency and objectivity of procedures for determining compensation. Then, the Company’s Board of○○

The Company considers the directors havesufficient independence if the directors shall
NOT fall in any of the criteria listed below;
Employee and/or executive of the Company
and/or subsidiary within past 10 years● Person and/or executive who had significant
business relationship with the Company withinpast 1 year*1● Employee and/or executive of the company who
had significant business relationship with theCompany within past 1 year*1● Consultant, certified public accountant,
attorney,etc. receiving significant compensationfrom the Company other than executive
compensation within past 1 year *2● Entity or its executive who received significant
donation from the Company within past 1 year *2● Close relatives corresponding to the above *3●*1 If the transaction between the Company and the person
and/or the company exceed 2% of the Company's revenueof the latest fiscal year, it shall be considered as significant*2 If the annual amount of compensation or donation to theperson/entity exceeds JPY 10 million, it shall beconsidered as significant*3 Within second-degree of relationshipcompensation for each Executive Director to a Representative Director in accordance with the “Compensation Framework for
Directors and Executive Officers” approved by the Company’s Board of Directors Meeting as well as within the total amount ofexecutive compensation resolved by the General Meeting of Shareholders. The compensation for Executive Officers shall also be
determined through deliberations by the Audit & Supervisory Committee.
Compensation level

Compensation is decided according to the responsibilities by utilizing data from compensation surveys performed by external researchorganizations and taking into account the level of compensation provided at companies such as domestic and overseas companies ofsimilar scale in similar industries with the intent to provide a level of compensation that enables recruitment and retention of talented
people who are highly diverse in terms of nationality, experience, etc.

Overview of the compensation system for Supervisory Officers
The compensation for Supervisory Officers (Directors serving on the Audit & Supervisory Committee and Outside Directors not serving on the
Audit & Supervisory Committee) consists of only base salary, taking into account their roles in managerial supervision and audit.
Compensation levels are set according to the role of the Director by utilizing data from compensation surveys performed by external researchorganizations and taking into account the level of compensation provided at domestic companies of similar scale.

Company Information

Outside director(Audit & Supervisory
Committee member)

Appointed to leverage her extensive management experience and global insights,
cultivated as director of The Procter & Gamble Company and representative director of
Dyson and of Toys "R" Us-Japan.

Appointed for extensive experience in finance and accounting, including managing afinance-related consulting company herself, and for abundant experience and global insights
cultivated on the corporate management team of Lehman Brothers Japan.

● Compensation level and structure that enable hiring and retaining high-quality talents from the perspective of diverse nationalities

Financial Information

Celso Guiotoko

Basic policy on compensation

Corporate GovernanceReasons for appointment (Positions etc. are at the time of appointment)

Appointed to leverage his extensive managerial experience and global insights, cultivatedthrough experience as a Coca-Cola bottler outside director and at Sony Corporation, on
behalf of our Group's management.

Appointed for abundant management experience and global insights cultivated at
Nissan Motor Co., Ltd., and auditing experience as a corporate auditor at thatcompany.

Overview of the compensation system for executive directors and executive officers

directors meeting resolves and delegates the determination of the compensation including the amount of performance-linked

Category/Name

Outside director(Audit & Supervisory
Committee member)Compensation for Directors and Executive Officers

CSV Initiatives

corporate value of the Company. Also, the Company deems that outside directors possess sufficient independence from the Company

Irial Finannecessary for the development of successors who can display higher levels of leadership.

● Introduce the system to further improve mid-to-long-term corporate value and reinforce alignment of interests with the

In the nomination of outside directors, the Company nominates persons who are considered to contribute significantly to increasing theOutside director(Audit & Supervisory
Committee member)

The Company also provides executive officers, including internal directors, with internal and outside training opportunities considered

profitable growth.

Appointment of Outside Directors

Hirokazu Yamura

business, finances, organizations, etc.

Business Overview

GenderAssumptionof officefurther sustainable growth and improvement of medium- to long-term corporate value.
Financial and Non-Financial
Highlights

Outside directors
Independent directors

Outside Director● Improvements in the timing and content of advance briefings on matters for discussion

Based on the results of the evaluation of effectiveness, we will actively and continuously work toward improvements in management to［Overview of Board of Directors］

Outside Director● Provision of Board of Directors meeting materials at the appropriate time to enable advance consideration

Featureaccordance with the Company's evaluation system for the internal directors. In the nomination of outside directors, the Company

Hiroko Wada

● Enhancement of discussions on topics involving changes in the management environment that could impact the Group's business● Provision of Board of Directors meeting materials in appropriate form and volume, organized and analyzed or ease of understanding

In order to determine candidates for director, the Company judges candidates' future potential and degree of contribution in

Hiroshi Yoshioka

Board of Directors, its support structure, composition, etc. In the 2019 evaluation of effectiveness, the following issues were identified.
● Securing of sufficient time and number of meetings for discussions by the Board of Directors

governance, we have elected several independent outside directors based on the Company's standards for independence.

Internal

Top Message

Board of Directors

The compensation for Directors serving on the Audit & Supervisory Committee is proposed to the Audit & Supervisory Committee anddetermined upon consultation with Directors serving on the Audit & Supervisory Committee within the total amount determined by the
resolution of the General Meeting of Shareholders. The compensation for Outside Directors not serving on the Audit & Supervisory Committee
shall be delegated to a Representative Director upon resolution by the Company’s Board of Directors Meeting, and the amount shall be
determined by the Representative Director in accordance with the “Compensation Framework for Directors and Executive Officers” approvedby the Company’s Board of Directors Meeting after the terms of compensation are deliberated by an Audit & Supervisory Committee.

21

Coca-Cola Bottlers Japan Holdings Inc.

22

Corporate Governance

Annual Review 2019

Fixedcompensation

Base salary● Monthly payment of an amount determined based on responsibilities.

Retirement Payment(Annual deferral for
retirement
remiunications)● 10 % of annual base salary is retained each year and the cumulative amount is

Annual bonus● Provided as an incentive for achieving performance targets for each fiscal year.

paid upon retirement. If the Director has caused significant damage to the CCBJHGroup or been subjected to disciplinary action, this payment may be reduced orwithheld altogether.

● The target amount is set in the range of 35% to 75% of base salary depending on

their responsibilities.

● The amount of payment varies in the range of 0 % to 225% of the target amount

Risk Management System
In order to gain the trust of society and stakeholders and to enable sound and sustainable corporate management, the Group is
working to construct and operate an effective risk management system that is integrated with internal controls.
The risk management system of the Company consists of a Risk Management Committee that performs deliberation anddecision-making on formulation of company-wide basic risk management policies and risk prevention activities; a Crisis
Management Committee that performs decision-making and instruction for crisis management response in the event of serious
incidents or accidents; and a Disaster Countermeasures Task Force that performs deliberation and decision-making on the
invoking of business continuity plans (BCP) in the event of a large-area, large-scale disaster that has a significant impact on our

Featuredepending on the achievement of performance targets in each fiscal year(companywide performance and individual evaluations).
● Business income, sales volume, and net sales have been adopted as measuresfor evaluating companywide performance in accordance with the policy for
determining compensation for Executive Directors and Executive Officers, etc.

Compensation limit for Directors:
Maximum 850 million yen per year
(approved by resolution no. 5 of
FY2019 Annual General Meetingof Shareholders).
(the number of directors at the timeof the resolution excluding
directors who were Audit andSupervisory Committee members
was 5).
* In case where the Audit andSupervisory Committee hasdeliberated and deemed it
necessary, housing allowances
others may be paid within this 850
million yen.

Top Message■Compensation structure (FY2020 onwards)

business activities.

● Two types of stock-based compensation systems, (1) PSU and (2) RSU, are adopted

Long-term
incentives

as long-term incentives.

Risk Management Committee

40% to 100% of base salary based on the responsibilities.
80% of this basic amount is set as the basic PSU amount, and 20% is set as thebasic RSU amount.
● With regard to (2) RSU, additional grants for the purpose of retention may be made in
addition to the above-mentioned basic RSU amount up to the compensation limit
detailed on the right if deemed necessary by the Audit and Supervisory Committee.
(1) PSU(Performance
Share Units)● Provided as an incentive for achieving mid to long term performance targets.

● The number of shares to be issued shall be determined within the range of 0% to● Provided for the purpose of aligning interests with shareholders, creating incentives to(2) RSU(Restricted
Stock Units)

increase corporate value, and strengthening retention of talented people.
● Issued predetermined number of shares three years after shares have been granted(half of the shares to be issued shall be paid in cash for the purpose of allocating
funds for the payment of tax obligations).

Formation of basic policy and prevention of risk
As year-round risk prevention activities, every Group company and business department shall operate a PDCA cycle consisting of"identify and assess inherent risks," "formulate and execute measures to mitigate risks," "review track record and effects of activities atthe end of the fiscal year," and "formulate and execute improvement measures."

ERM defense lines

First Defense Line

Second Defense Line

Third Defense LineBusiness functions

Department in charge of ERM

Internal Audit Department

The Enterprise Risk Management (ERM)
Department which serves as the secretariat of
the committees, monitors risks company-wide.

The Internal Audit Office, which is independent of
the Board of Directors, provides reasonableassurance for company-wide risk management.

Group companies and business departments
autonomously control risks as owners of therisks.

Business Overview

150% of the basic PSU amount depending on the achievement of performancetargets (only considering companywide performance) over the three years after theshare units have been granted (half of the shares to be issued shall be paid in cash
for the purpose of allocating funds for the payment of tax obligations).
● Consolidated ROE and growth rate of consolidated net sales are used as measures of
performance in accordance with the policy for determining compensation for
Executive Directors and Executive Officers, etc.

Compensation limit for Directors:
Maximum amount of 200,000
shares per year (approved byresolution No. 5 of FY2019 Annual
General Meeting of Shareholders).
(the number of directors at the timeof the resolution excluding
directors who were Audit andSupervisory Committee members
was 5).

Financial and Non-Financial
Highlights

Variable compensation● The basic amount of all long-term incentives (1) PSU + (2) RSU is set in the range of■Image of compensation structure (in case of Representative Director & President)

Maximum
Fixed: 23% / Variable: 77%

RSU
Annual Bonus & PSU
at Target
Annual Bonus & PSU at
Maximum

TargetFixed: 39% / Variable: 61%

Minimum
Fixed: 85% / Variable: 15%

Response to serious incidents or accidents

Response to large-area, large-scale disasters

Through the Coca-Cola system's proprietary Incident Management &Crisis Resolution (IMCR) process, the Company cooperates with relevantbusiness departments within the Company, Coca-Cola (Japan) Co., Ltd.
and other bottler companies to carry out information collection anddeliberation on initial response and solutions. The Company further
executes measures for the restoration of normal business operations, andinvestigates measures to prevent future occurrences.

The company has established a business continuity plan
(BCP) for large-area, large-scale disasters. The Company
checks and improves the plan through regular training, andcontinuously strives to improve its effectiveness.

12. Risks related to relevant laws and regulations

3. Risks related to increased costs of raw materials, etc.

14. Risks related to tax reform(Of which, paid to outside directors)

Directors()

Audit & Supervisory
Committee members(Of which, paid to outside directors)

Total(Of which, paid to outside directors)

23

Coca-Cola Bottlers Japan Holdings Inc.

Basic compensation

582

436

（23）
71

（62）
653

（85）

（23）
71

（62）
508

（85）

Performance-based
stock compensation

Bonus
96

（－）
－
（－）
96

（－）

50

（－）
－
（－）
50

（－）

Number of eligible
directors

health concerns

6. Risks related to economic conditions

7. Risks related to infrastructure investment

8

8. Risks related to the supply chain

7

10. Risks related to water resources

（2）
（6）
15

（8）

9. Risks related to changes in the retail environment

11. Risks related to agreements with The Coca-Cola Company

and to trademarks and trust in the brand

13. Risks related to alcoholic beverages

15. Risks related to product safety and quality
16. Risks related to business integration
17. Risks related to litigation

18. Risks related to the business of affiliated companies
19. Risks related to weather

20. Risks related to natural disasters, accidents, etc.

Company Information

Directors

5. Risks related to changes in consumer preferences andTotal amount ofcompensation, etc.
(Million yen)

Business
restoration

1. Risks related to changes in assets

4. Risks related to competition and changes in markets■Directors' Compensation （2019 results）
Executive category

Temporary
restorationof business■List of risks the Company identifies
2. Risks related to retirement benefit obligations

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

Initialresponse

Financial Information

Fixed
Compensation

Disaster Countermeasures Task Force

Corporate Governance

Variable
Compensation

Crisis Management Committee

CSV Initiatives

Base Salary &Retirement payments

21. Risks related to information security

22. Risks related to securing and developing humanresources(For details of each risk, please refer to Annual Securities Report.)

24

Corporate Governance

We have established an internal control system for ensuring the appropriate performance of the Company and Group companies.
● System to ensure that the execution of duties of Directors and employees of the Group conforms to laws and ordinances and to the Articles ofIncorporation- The code of conduct shall be established in order to ensure that all the Directors, Executive Officers, and employees of the Company's group comply
with laws and regulations and the Articles of Incorporation to act in conformity with social norms. The Ethics and Compliance Committee shall be
convened periodically in order to reinforce the compliance system and to prevent non-compliance.

The Company has created basic principles and policies for matters involving operation of the company; has established acode of ethics and conduct as guidelines for the actions to be taken by group employees in order to realize these principles
and policies; and works to ensure that these are made known to executives and employees.
Moreover, to further foster and instill awareness of ethics and compliance awareness in employees, and to promote a
corporate culture that emphasizes ethics and compliance, we work primarily through the Ethics and Compliance Committee topromote activities including awareness and education activities, the operation of a consultation desk, response to othercompliance cases, and examination and implementation of measures to prevent recurrence.

Feature- An internal whistle-blowing system against non-compliance, namely, a reporting and consultation contact separate from the reporting line to immediate

Basic Principles, Policies, and Code of Ethics and Conduct

Top Message

Status of Internal Control System

Annual Review 2019

managers, shall be set up.
- The Company shall strengthen the supervisory functions of the Board of Directors by adopting a system with an Audit & Supervisory Committee, whereaudits are conducted by an Audit and Supervisory Committee consisting entirely of outside directors.

［Basic principles］- The department in charge of internal auditing shall be established in order to audit whether business activities are conducted appropriately andeffectively in conformity with laws and regulations, the Articles of Incorporation, Company Rules and Regulations, etc.

Community

Communication
with customers

Quality assurance

HealthCorporate
governance

Ethics andcompliance

Diversity andinclusion

Organizational
management

Human resource
management
Financial and Non-Financial
Highlights- The Company clearly identifies the firm stance against anti-social forces and organizations that cause threats to the order and safety of civil society andEnvironmentthat the Company never associates with such entities. The Company shall never accede to any illegal request and deal with any such request incooperation with the police, attorneys, etc.
● Matters related to the preservation and management of information involving the execution of duties by Directors- The Company shall record information regarding minutes of General Shareholders meetings, minutes of Board of Directors meetings, documents andother materials related to important decision-making and Directors’ performance of their duties in documents or electronic media and retain it inaccordance with the Rules of Documentation Handling and Information Security Policy in a manner similar to that for statutory documents.

- The Company’s Directors may inspect such documents, etc. at any time.
● Regulations and other systems concerning management of the risk of losses to the Group- In accordance with our group policy on responding to material business risks and from the viewpoint of management of other risks, significant items shall

In principle, it is the Company's policy to refrain from cross-shareholdings.
However, the Company does hold shares acquired for the purpose of creating business opportunities and establishing,
maintaining, and strengthening relationships with customers and local communities. We evaluate and report on the cost ofownership of these major cross-shareholdings shares and the return on investment. We have been working to reduce thecross-share holdings based on those evaluations.
■Number of cross-shareholding companies and book value of these shares
Number ofcompanies

passed down by establishing manuals and implementing training for the entire Group.
- The department in charge of risk management in the Company or its subsidiaries is to monitor the condition of company-wide risks, and take appropriate
measures on a group-wide basis. The Company shall appoint a person responsible for prompt response to newly emerging risks.
● System for ensuring the efficient execution of duties by Directors of the Group- The Board of Directors of the Company shall establish management policy and objectives for the Group to be shared among Directors, executive
officers, and employees of the Group, and shall establish efficient methods for achieving the objectives, including the allocation of authority based on
rules for decision-making in the Group.

Unlisted stocks

123

4,797

Stocks other thanunlisted stocks

99

22,012(Stocks for which number of shares increased during the fiscal year)

multi-dimensional aspects.
The Company will ensure the unification of management through establishment of a corporate philosophy, management policy, code of business conduct
and Chart of Authority shared across the Group, and supervise and manage the performance of the subsidiaries’ operations.
● System concerning employees requested by the Audit & Supervisory Committee to assist with its duties, and matters concerning the

Total amount spent to increase
the number of shares held
(Millions yen)

Number ofcompanies

Company to deliberate significant matters affecting the entire Company Group, thereby ensuring that decisions are reached based on considerations of● System to ensure the appropriateness of operations in a corporate group consists of the Company and its subsidiaries

Total book value of shares(Millions of yen)ー

Unlisted stocks
Stocks other thanunlisted stocks

23(Stocks for which number of shares decreased during the fiscal year)
Total amount by selling anddecreasing the number ofshares (Millions yen)

Number ofcompanies

Reason for increase in
number of sharesーー

Unlisted stocks

2

2

47

The Company increased thenumber of shares of thesecompanies by purchasing throughsuppliers’ share ownershipassociation of these companies

Stocks other thanunlisted stocks

7

2,242

independence of said employees from Directors and the ensuring of the effectiveness of instructions to said employees

CSV Initiatives- The Company shall organize and deliberate on appropriate meeting structures in its operating companies in addition to the Board of Directors of theBusiness Overview

be reported to the Risk Management Committee, and the Risk Management Committee shall determine policies to accommodate the risks as required.
- The Company establishes rules/guidelines and maintains an organization to execute effective response to material risks, and ensure the matters to be

Policy regarding Cross-shareholdings

Corporate GovernanceSee the Annual Securities Report for details.

The Company shall assign employees to assist the Audit & Supervisory Committee. These employees shall assist the execution of duties of the Audit &Supervisory Committee under the direction and command of the Audit & Supervisory Committee, and shall not accept instruction and command from
Directors (excluding members of the Audit & Supervisory Committee).
● System for reporting to the Audit & Supervisory Committee by Directors and employees of the Group, and system for preventing

disadvantageous treatment for reason of having reported- Directors (excluding Directors who are members of the Audit & Supervisory Committee), executive officers, employees, etc. of the Group shall promptly
report to the Audit & Supervisory Committee upon discovering any facts that may cause serious damage to the Group, such as violations of laws andordinances.
other activities in the Group.

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

■Main IR activities in 2019
Number of times

Details- The Company shall prohibit disadvantageous treatment of persons for reason of having reported to the Audit & Supervisory Committee, and shall makeEarnings Presentation

4 times

Held quarterly earnings presentation hosted by President and CFO.
The content is available via Webcast on the Company's website.
(https://en.ccbj-holdings.com/ir/library/presentation.php)

this prohibition known to Directors, executive officers, employees, etc. of the Group.
● Matters concerning procedures for the prepayment or reimbursement of expenses incurred in the execution of duties of Audit & Supervisory

Committee members, and policies involving the handling of expenses or obligations incurred in the execution of other duties

IR meetings with analysts
and institutional investors

More than 200
companies

Held face-to-face and phone meetings with analysts and institutional investors,
with top management participation as needed.

Every year, the Company shall allocate necessary budget for the execution of duties by Directors who are Audit & Supervisory Committee members.

● Other systems to ensure that the Audit and Supervisory Committee’s audit is conducted effectively- The Representative Director and the Audit & Supervisory Committee members shall hold a meeting on a regular basis to exchange opinions in order toParticipation in domestic
and overseas conferences

8 times

Domestic: 6 times; overseas: 2 times.With top management participation
as needed.

communicate with each other.
- The Representative Director shall prepare an environment to enable coordination with attorneys, certified public accountants, and other external experts

Presentation for
individual investors

2 times

Held briefings by IR manager.

when recognized as necessary by Audit & Supervisory Committee members for the execution of their duties.
- The Audit & Supervisory Committee shall establish opportunities for the exchange of opinions with the department in charge of internal audits andaccounting auditors periodically.

Other IR briefings

2 times

Held briefings by top management for analysts and institutional investors.

25

Coca-Cola Bottlers Japan Holdings Inc.

Company Information

Activity- The department in charge of compliance shall regularly report to the Audit & Supervisory Committee on the status of whistleblowing in the Group.

Financial Information- The department in charge of internal audits shall regularly report to the Audit & Supervisory Committee on the findings of internal audits and the status of

Promotion of Information Disclosure and Constructive Dialog through IR Activities

26

Financial Information

Annual Review 2019

Top Message■ Historical Financial Data
Financial data through fiscal 2016 indicates results for Coca-Cola West Co., Ltd. prior to the business integration.
Financial data for fiscal 2017 indicates results for Coca-Cola Bottlers Japan Holdings Inc. from 2Q.

2015

2016

2017

IFRS

（Millions of yen）

369,698

375,764

399,717386,637

431,711424,406

440,476

460,455

872,623

Revenue

（％）

(6.5)

1.6

6.4

(3.3)

11.7

(1.7)

3.8

4.5

89.5

（Millions of yen）

2,242

12,003

16,46913,463

15,927

11,00814,262

21,14340,579

（％）

0.6

3.2

4.1

3.5

3.7

2.6

3.2

4.6

4.7

（Millions of yen）

(10,446)

12,982

14,013

12,186

18,7308,409

15,22812,707

39,240

（％）

(2.8)

3.5

3.5

3.2

4.3

2.0

3.5

2.8

4.5

（Millions of yen）

(7,594)

7,582

6,997

6,031

13,625

4,482

9,970

5,245

25,244

（％）

(2.1)

2.0

1.8

1.6

3.2

1.1

2.3

1.1

2.9

（Millions of yen）

̶

̶

5,605

7,326

16,332

6,931

11,217

5,022

31,976

Total Comprehensive
Income（Yen）(75.96)

75.84

69.99

60.33

128.15

41.07

91.35

48.05

144.26Return on Equity（ROE）

（％）

(3.3)

3.4

3.1

2.6

5.6

1.8

3.9

2.0

Return on Assets

（％）

0.7

3.8

4.7

4.1

4.7

3.0

3.8

Total Assets（Millions of yen）

326,818

346,032

342,560

337,348

374,418

337,260

Net Assets（Millions of yen）

222,816

226,267

227,864

231,056

257,936

Equity Ratio

（％）

68.2

65.3

66.4

68.4

Net Assets per Share（Yen）

2,227.96

2,260.03

2,275.55

Price Book Value Ratio（PBR）（Times）

0.7

0.7

Price Earnings Ratio（PER）（Times）(21.6)Cash Flow fromOperating Activities（Millions of yen）

Cash Flow from
Investing Activities

2018

2019

（Millions of yen）

837,069

927,307914,783

（％）

̶

10.8

(1.4)

（Millions of yen）

40,177

23,276

15,042

（％）

4.8

2.5

1.6

Operating Income（Millions of yen）

37,594

14,682(55,389)

Operating Margin

（％）

4.5

1.6

(6.1)

（Millions of yen）

21,967

10,117(57,952)

（％）

2.6

1.1

(6.3)

（Millions of yen）

30,065

3,197(52,108)

Basic Earnings per Share(Yen)

125.5352.68(322.22)

5.7

Return on Equity Attributable to
Owners of The Parent (ROE)

（％）

4.6

1.6

(10.7)

5.5

6.3

Return on Assets

（％）

5.6

1.6

(6.1)

378,105

377,468

883,918

Total Assets（Millions of yen）

929,304

877,472

952,444

254,150

260,878

261,173

627,485

Total Equity（Millions of yen）

655,038

580,906

506,491

68.8

75.2

68.9

69.1

70.9

Ratio of Equity Attributable toParent Owners

（％）

70.4

66.2

53.1

2,307.44

2,359.82

2,325.19

2,386.81

2,389.28

3,070.01

Equity Attributable to Ownersof The Parent per Share（Yen）

3,204.90

3,163.63

2,821.27

0.6

0.6

0.9

0.7

1.0

1.4

1.3

Price Book Value Ratio (PBR)（Times）

1.3

1.0

1.0

19.4

19.1

22.1

17.4

40.4

26.9

71.7

28.5

Price Earnings Ratio (PER)（Times）

32.8

62.4

(8.7)

28,74731,732

39,96026,32440,082

28,62840,422

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

73,014

51,244

42,629（Millions of yen）

(23,447)(49,203)(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)

Cash Flow from
Financing Activities（Millions of yen）

43,297(16,316)(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

Cash and Cash Equivalents
at End of Fiscal Year

（Millions of yen）

71,22137,43434,56439,49560,27541,83079,82886,727

118,741

Cash and Cash Equivalents
at End of Fiscal Year

（Millions of yen）

118,742

65,510113,825

（％）

̶

52.7

58.6

68.0

32.0

99.8

44.9

95.7

30.5

Dividend Payout Ratio

（％）

35.1

94.9

̶

（Yen）

42.00

40.00

41.00

41.00

41.00

41.00

41.00

46.00

44.00

Dividend per Share

44.00

50.00

50.00

Depreciation andAmortization（Millions of yen）

24,06922,405

21,371

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

Depreciation andamortization expense（Millions of yen）

41,38347,531

56,951

Capital Expenditure（Millions of yen）

25,201

16,524

21,201

20,031

20,242

22,783

16,181

25,72842,539

Capital Expenditure（Millions of yen）

42,80053,136

103,882

8,172

8,331

8,105

7,877

9,650

8,324

8,837

8,616

17,197

Number of The Employees

17,197

17,10016,959

Revenue
Revenue YoY
Operating Income
Operating Income Margin
Net Income before
Income Taxes
Net Income Before Taxes Margin
Net Income Attributableto Owners of Parent
Net Income Margin
Comprehensive Income
Net Profit per ShareDividend Payout Ratio
Dividend per Share
Interim Dividend

Number of The Employees

Average number of temporary workers
not included in the above

21.00

2,289

20.00

2,009

20.00

2,073

20.00

1,890

20.00

2,059

20.00

1,949

20.00

2,613

22.00

2,499

22.00

4,403

Revenue YoY
Business Income
Business Income Margin

Net Income Attributable to
Owners of The Company
Net Income Margin

Interim Dividend

Average number of temporary workers
not included in the above

（Yen）

22.00

4,403

25.00

3,957

Company Information

2017

Financial Information

2014

Corporate Governance2013

CSV Initiatives

2012

Business Overview

2011

Financial and Non-Financial
Highlights

2010

Feature

2009

JGAAP

25.00

3,578

Note: As for the amount, JGAAP is rounded down and IFRS is rounded off. The ratio is rounded off.

27

Coca-Cola Bottlers Japan Holdings Inc.

28

Commentary and Analysis of Operating Results in 2019

Annual Review 2019

■ Analysis of Operating Results

We reported a consolidated operating loss for the fiscal year of 55.4 billion yen (14.7 billion yen operating income in prior year period), mainly driven by the

impairment of goodwill recorded in the second quarter. As a reference, other expenses (nonrecurring) in the prior-year period include loss on disaster of 8.9

industry volume performance is estimated to be slightly negative versus prior year mainly due to cycling of strong demand driven by hot summer
weather last year as well as longer rainy and cool weather in July. The health food and cosmetics industries continue to grow, driven by demand from

9.2 billion yen of special retirement allowance and 655 million yen of transformation-related expenses to drive fundamental transformation of our business forsustainable growth, further value creation and efficiency improvement following our newly developed strategic business plan announced in August 2019.

health-conscious consumers and inbound tourism, while the competitive environment has been marked by successive product launches by various

Net income attributable to owners of parent was a loss of 58.0 billion yen (10.1 billion yen in the prior-year period).

industry players.

■ Analysis of Financial Position

For the Company, 2019 has been a transition year focused on recovery from the flooding damage and disruption to product supply in 2018 andbuilding a solid foundation for future growth. We have been making major investments to recover our supply network and progressively expand
production capacity, and will continue to do so through second quarter 2020. We were the first in the beverage industry to announce and implement a

The ratio of the Group's equity attributable to owners of the parent to total assets at the end of the fiscal year was 53.1%, and we believe that our
financial position remains sound.
Assets at the end of the fiscal year were JPY 952.4 billion yen, an increase of 75.0 billion yen from the end of the previous fiscal year. This is mainly
attributable to an increase of Cash and cash equivalents by bond issuance in the third quarter, increase of fixed assets as a result of commissioning

We developed and announced a new five-year strategic business plan in August 2019 with targets for both Business Income margin and ROE in 2024
of 5 to 6%. The new five-year strategic business plan includes focused investments to reignite sales growth in close collaboration with Coca-Cola(Japan) Company, Limited as well as fundamental transformation to drive cost savings. Over the course of the five-year plan, we expect net cost

three new production lines in Kumamoto and Kyoto plant, and two new automated warehouses in Hakushu and Kumamoto plant as well as non-current
assets by newly including Right-of- use assets as a result of the implementation of IFRS 16 starting from this fiscal year, which are partially offset bydecrease of goodwill by goodwill impairment in the second quarter.

channel operations, evolving our frontline salesforce capabilities and identifying opportunities across procurement and our supply chain.

Liabilities at the end of the quarter were 446.0 billion yen, an increase of 149.4 billion yen from the end of previous fiscal year. This is mainly due to an

Our full-year results were impacted by a decline of topline revenue due to lower beverage business sales volume, reflecting supply constraints ofRight-of-use assets.

higher-growth aseptic PET products and continued lower manufacturing efficiencies and elevated logistics and distribution expenses as we recover our
supply and distribution infrastructure after the flooding in 2018. Business income for our core beverage business was ahead of the plan we announced

increase of Bonds and debt in non-current liabilities due to issuance of the bond, and an increase of Lease liabilities in conjunction with including

Net assets at the end of the quarter were 506.5 billion yen, a decrease of 74.4 billion yen. This is mainly due to a decrease of Retained Earnings as aresult of the goodwill impairment and an increase of Treasury Shares due to the completion of the share buyback program in February 2019.

recorded in the second quarter.

■ Analysis of Cash Flows＜Cash Flows from Operations＞

Full-year NARTD beverage volume declined 2%, reflecting unseasonably cool and rainy weather in July and the wholesale priceincrease in April, recovering to 1% growth in the fourth quarter (October to December). Full-year beverage business revenue declined

Net cash used for operations was 42.6 billion yen (51.2 billion net cash generated from operations in the previous year period). This results●

Beverage business market share improved, with value share growth ahead of volume share in the fourth quarter led by coffee,

payable-trade, etc. offset by an increase of trade and other receivable, inventories, payment of taxes, etc.

●

Business Income was substantially in-line with the full-year plan announced in May 2019 led by ahead-of-plan core beverage

1% and grew 1% in the fourth quarter.

non-sugar tea and sports category performance. Premium-priced new products contributed to value share growth

performance despite underachievement of the health care & skin care business. Full-year Business Income decreased 35% versus

prior year as we continue to recover from the supply disruption of 2018.

●

Full-year operating loss of 55 billion yen reflects the goodwill impairment recorded in the second-quarter.

Continued investment for recovery of supply network, expanding production capacity and improving infrastructure. Capital

investments of close to 90 billion yen in 2019, with three new manufacturing lines and two new automated warehouses, as well ascompletion of company-wide deployment of a new ERP system, “CokeOne”.

●

Major transformational initiatives ongoing. Announced new organizational structure aligned with the strategic business plan andgrounded in new corporate mission, vision and value statement. Executing transformation in vending business and investing in people
capability development to achieve sustainable growth.

mainly from the 55.4 billion yen net loss before tax, loss due to impairment of goodwill, depreciation expenses, increase of notes and account＜Cash Flows from Investment Activities＞
Net cash used for investment activities was 68.3 billion yen (48.6 billion yen in the previous year period), due to purchases of fixed assets as werecover our supply network and progressively expand production capacity, etc.

＜Cash Flows from Financing Activities＞
Net cash generated from financing activities was 74.0 billion yen (55.8 billion yen net cash used for financing activities in the previous year
period), driven by an issuance of 150 billion yen of straight bond, etc., partially offset by cash spent for share buyback, payment of year-end
dividends, etc.
As a result of these activities, cash and cash equivalents at the end of the fiscal year was 113.8 billion yen, an increase of 48.3 billion yen versus(Unit: Billions of yen)

YoY

2019

Net Revenue

927.3

914.8

（1.4％）

Business Income

23.3

15.0

（35.4％）Net Income (Loss) Attributable to Owners of Parent

10.1(58.0)ー*We introduce “Business Income” as a measure of our underlying or recurring business performance after the adoption of IFRS. Business Income deducts cost of
Full-year 2019 net revenue was 914.8 billion yen, a decrease of 12.5 billion yen, or 1.4% compared to the prior-year period. Net revenue of the beveragebusiness decreased 9.9 billion yen (1.1%) versus the prior-year period, to 890 billion yen, reflecting a 2% volume decline offset by improved price/mix from■ Capital Expenditures

During the consolidated fiscal year, the Group made total 103,882 million yen capital expenditures primarily in its core segment,

the Beverage Business.

Expenditures were primarily for installing vending machines and other sales equipment to the market to strengthen sales
capabilities, as well as manufacturing equipment to improve productivity and to adapt production to new products.

■ Research and Development

Although the Company is engaged in research and development activities in the healthcare and skincare businesses, the amounts

the wholesale price increase of large PET packages in April and the national launch of Lemon-dou “chu-hi” alcohol beverage in the fourth quarter. Net

involved are small with no particular items of note.

order sales with some recovery in the fourth quarter due to new product launches and marketing activities.

■ Policies for Profit Distribution and Dividends

revenue of the healthcare & skincare business declined 2.7 billion yen (9.7%) year-on-year to 24.8 billion yen, reflecting continued weakness of mail/web

Full-year Business Income was 15.0 billion yen, a decrease of 8.2 billion, or 35.4% year-on-year, and roughly in line with full-year expectations. Businessannounced in May driven by tight control of expenses. The beverage business performance reflects weaker topline revenue due to the sales volume decline
of 2% and continued lower manufacturing efficiencies and elevated logistics and distribution expenses this year as we recover and expand supply capacity
after the disruption in the second half of 2018. Partly offsetting this pressure, we achieved labor savings as a result of integrating retirement benefit programsin the first quarter and completing a voluntary employee retirement program in the second quarter. Promotional expenses in the period were also lower, inline with volume performance. Business Income in the healthcare & skincare business was 3.6 billion yen, a decrease of 1.7 billion yen or 32.7%
year-on-year, reflecting lower revenues while we continue to focus on promotional expense control and other cost savings opportunities.

We periodically review our capital structure and dividend payout ratio to maximize shareholder returns while maintaining the flexibility to pursue
expansion opportunities. We will utilize retained earnings for sustainable growth investments, and to pursue business growth and the further

Company Information

Income of the core beverage business was 11.4 billion yen (down 6.5 billion yen or 36.2% year-on-year), which was slightly above the revised plan target

Financial Information

goods and SG&A from revenue, and includes other income and expenses which we believe are recurring in nature.

Corporate Governancethe prior year period.

2018

Coca-Cola Bottlers Japan Holdings Inc.

CSV Initiatives●

Business Overview

in May 2019, offset by weaker performance in the health and skincare segment. Consolidated year-to-date results also reflect impairment of goodwill■Full-year 2019 Highlights

Financial and Non-Financial
Highlights

savings of approximately 35 billion yen, representing ongoing savings initiatives and incremental programs focused on transforming our vending●

Featurewholesale price increase for large PET products in April, the first time in 27 years, as an important initiative toward achieving more balanced volume andrevenue growth.

29billion yen from the flooding damage in our Hongo Plant in Mihara-city, Hiroshima Prefecture in July 2018. Other expenses (non-recurring) in 2019 include

Top Message

In the fiscal year ending on December 31, 2019 (January 1, 2019 to December 31, 2019), total non-alcoholic ready-to-drink (NARTD) beverageenhancement of corporate value.
The Company sets the active redistribution of profits as its basic policy regarding dividends, placing the highest priority on the stable payment ofdividends. The Company has set a payout ratio target of 30% or more for net profit attributable to owners of the parent, and pays dividends,
comprehensively taking business performance and retained earnings into account.
For the year ended December 2019, we payed interim dividend of 25 yen per share and a year-end dividend of 25 yen, which yields an annual
dividend of 50 yen per share.

30

Consolidated Financial Statements

Annual Review 2019

(As of December 31)(Millions of yen)

2018

(Millions of yen)

2019

Assets2018

2019

Liabilities and equity

Current assets

Liabilities
Feature65,510113,825

Trade and other receivables

92,402

98,528Trade and other payables

105,701

122,364

Inventories

68,781

74,120Bonds and loans payable

45,512

17,261Other financial assets

645

752

ー

6,634

Other current assets

10,74017,587

Other financial liabilities

993

916

Total current assets

238,078

304,812

Income taxes payable

3,069

1,104

18

20

Non-current assets

Current liabilities

Lease liabilities

Provisions
467,136

Other current liabilities

22,23019,886

ー

39,629Total current liabilities

177,524

168,186

Goodwill

88,88027,021Intangible assets

66,53967,12356,401

188,487

298

310

ー

34,138Other financial assets

34,79633,499Other financial liabilities

749

ーDefined benefit asset

38

ーDefined benefit liabilities

33,712

24,908Deferred tax assets

6,264

6,093

Provisions

2,191

2,104

Other non-current assets

7,274

6,820

Deferred tax liabilities

23,082

24,876

Total non-current assets

639,394

647,632

Other non-current liabilities

2,907

3,254

877,472

952,444

Total non-current liabilities

119,042

277,767

296,566445,953

Capital stock

15,232

15,232

Capital surplus

450,533

450,526

Retained earnings

182,418

121,372

Treasury stock(72,651)(85,649)

Accumulated other comprehensive income

4,915

4,517

Equity attributable to owners of the parent

580,448505,999458

492

580,906

506,491

877,472

952,444

Right-of-use assets

Investments accounted for using the equity method

Non-current liabilities
Bonds and loans payable
Lease liabilities

Corporate GovernanceTotal liabilities

CSV Initiatives

Total assets

Business Overview

435,305

Financial and Non-Financial
Highlights

Cash and cash equivalents

Property, plant and equipment

Top Message■ Consolidated Statement of Financial Position

EquityTotal liabilities and equity

31

Coca-Cola Bottlers Japan Holdings Inc.

Company Information

Total equity

Financial Information

Non-controlling interests

32

Consolidated Financial Statements

Annual Review 2019

(January 1 to December 31)

Consolidated statements of profit or loss

About Business Income(Millions of yen)

2019

Revenue

927,307914,783

Cost of sales

475,156

473,723

Gross profit

452,151

441,060

Selling general, and administrative expenses

426,195

423,685
61,859

2,116

4,127

Other expense

13,385

15,076(5)

43

Operating profit

14,682(55,389)

Financial income

830

1,145

Share of income (loss) of equity method investees

Finance expense

1,175

14,767(55,419)

Income tax expense

4,605

2,476

Net Income (loss)

10,162(57,895)

Non-controlling interests
Basic Earnings per Share (loss) (Yen)

441,060

426,195

423,685

Other income (Recurring)

1,635

1,083

Other expenses (Recurring)

4,310

3,459

(5)

43

23,276

15,042

ー

61,859Other income (Non-recurring)

481

3,045

Other expenses (Non-recurring)

9,075

11,617

14,682(55,389)

Selling, General & Administrative Expenses

Equity in Earnings of Associates (loss)

10,117(57,952)

45

56

52.68

(322.22)

Goodwill Impairment Loss

(Millions of yen)

2018

2019

10,162(57,895)(2,889)

5,596

(4)

4

(3,344)621(6,236)

6,221

Foreign currency translation differences of foreign operations

(12)

－

Cash flow hedges

(716)

(434)

(728)

(434)

Operating Income (loss)

CSV Initiatives

452,151

Business Income

Consolidated statements of comprehensive income
Net Income (loss)

2019

Gross Profit

Net Income ("-" indicates loss) attributable to:
Owners of the parent

2018

Business Overview

745

Net Income (loss) before Income Taxes(Millions of yen)

Financial and Non-Financial
Highlightsー

Other income

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 andexpenses which we believe are recurring in nature.
The following table shows a bridge between Business Income and Operating income in IFRS.

Feature2018

Goodwill Impairment Loss

Top Message■ Consolidated Statements of Income and Comprehensive Income

Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:

Share of other comprehensive income of equity
method investees
Net changes in financial assets measured at fair value
through other comprehensive income
Subtotal■ Segment Information(January 1 to December 31)＜Reportable segments＞
The Group has established organizational management systems for each of its products and services. Based on the types andnature of its products and the markets in which it sells its products, the Group's operating segment and reportable segment
businesses are "Beverage business" and "Healthcare & Skin Care business".
(Millions of yen)

Total other comprehensive income for the year
Total comprehensive income for the year

(6,965)

5,788

3,197

(52,108)

Owners of the parent
Non-controlling interests

33

Coca-Cola Bottlers Japan Holdings Inc.

Beverage

Revenue

Segment profit*

3,152(52,164)

45

56

2019

business

Healthcare &Skincare business

Total

899,863

27,444

8,864

5,818

Beveragebusiness

Healthcare &Skincare business

Total

927,307890,009

24,774

914,783

14,682(58,904)

3,515(55,389)

Company Information

Comprehensive income attributable to:2018

Financial Information

Items that may be reclassified subsequently to profit or loss:

Subtotal

Corporate GovernanceRemeasurements of defined benefit plans*Segment profit is operating income on consolidated statements of income.

34

Consolidated Financial Statements

Annual Review 2019

■ Consolidated Statements of Cash Flows(January 1 to December 31)

2018

Balance as of January 1, 2018

CapitalsurplusRetainedearnings

Treasury
Stock15,232450,498

184,317(4,693)

Accumulated
other comprehensive
income9,258

Non-controllinginterests

Total(Millions of yen)654,611427

655,038Net Income (loss) before Income Taxes－

10,117－－

10,117

Other comprehensive income

－

－

－

－

(6,965)

Total comprehensive income for the year－－

10,117－(6,965)45

10,162(6,965)－(6,965)

3,152

45

3,197

Impairment losses
Change in allowance for credit losses
Interest and dividends income
Interest expense

Dividends of surplus－－(9,173)－－(9,173)(21)(9,194)Purchase of treasury stock

－

(25)

－

(67,961)－(67,987)－(67,987)

Disposal of treasury stock

－

1

－

4

－

4

－

4

Transactions of share-based payment

－

67

－

－

－

67

－

67

Loss on disposal and sale of property, plant and equipment

Increase (decrease) in net defined benefit liabilities
Increase (decrease) in other liabilities

2,843

－

－

－

－

－

－

－

(221)

(221)

－

(221)

Other changes

－

(7)

－

－

－

(7)

7

－

－

36

(12,016)(67,958)

2,622(77,316)(14)(77,329)

Interest paid

580,906

Income taxes paid

458

(215)
9,399

2,234
491
1,148
501

Other
Subtotal

65,579Interest received

3

Dividend received

487

Income taxes refund(548)(14,553)275(43)(2,183)2,513(6,149)(5,339)
(266)

6,259

(213)

(3,543)(451)

55,1381508(1,018)(13,675)
1,675

42,629Acquisitions of property, plant and equipment and intangible assets(49,752)658(78,213)

Proceeds from sales of property, plant and equipment and intangible assets

CSV Initiatives

51,244

Net cash provided by operating activities

Business Overview－

580,448

1,175

5

393

(2,843)

4,915

612

(6,869)

Increase (decrease) in trade and other payables

(515)

(509)

Decrease (increase) in other assets－(72,651)

255

56,95162,870(516)

Decrease (increase) in inventories－

182,418

202(4,355)

Reclassification from accumulated othercomprehensive income to non-financial assets

450,533

47,531

Decrease (increase) in trade and other receivables

Reclassification from accumulated othercomprehensive income to retained earnings

15,232(55,419)

Financial and Non-Financial
Highlights

Share of loss (profit) of equity method investees
Gain on sale of property, plant and equipment

Transactions with owners, etc.

Total transactions with owners, etc.

14,767

Feature－2019

Adjustments for:
Depreciation and amortisation

Net profit for the year

2018
Cash flows from operating activities

Total

Comprehensive income for the year

Balance as of December 31, 2018

(January 1 to December 31)(Millions of yen)
Equity attributable to owners of the parent
Capitalstock

Top Message■ Consolidated Statements of Changes in Equity

Cash flows from investing activities

2019(Millions of yen)
Equity attributable to owners of the parent
Accumulated
other comprehensive
incomeProceeds from sale of other financial assets

CapitalsurplusRetainedearnings

Treasury
Stock15,232450,533

182,418(72,651)

4,915

580,448458

580,906

Adjustments due to application of IFRS 16

－

－

(338)

－

－

(338)

－

(338)

Balance as of January 1, 2019 (After restatement)

15,232450,533

182,080(72,651)

4,915

580,110458

580,568

Balance as of January 1, 2019 (Before restatement)

Non-controllinginterests

Total

Comprehensive income for the year－－

(57,952)－－(57,952)

56(57,895)

Other comprehensive income

－

－

－

－

5,788

5,788

－

5,788

－

－

(57,952)－

5,788(52,164)56(52,108)

Total comprehensive income for the year
Transactions with owners, etc.

－－

(9,071)－－(9,071)(22)(9,093)Purchase of treasury stock

－

(64)

－

(13,002)－(13,066)－(13,066)

Disposal of treasury stock

－

(1)

－

3

－

3

－

3

Transactions of share-based payment

－

57

－

－

－

57

－

57

Reclassification from accumulated othercomprehensive income to retained earnings

－

－

6,315

－

(6,315)－－－

Reclassification from accumulated othercomprehensive income to non-financial assets

－

－

－

－

129

129

－

129

Total transactions with owners, etc.

－

(7)(2,756)(12,999)(6,186)(21,947)(22)(21,970)

Balance as of December 31, 201915,232450,526

121,372(85,649)4,517

505,999492

506,491

Coca-Cola Bottlers Japan Holdings Inc.

(58)

2,255

－

Proceeds from sale of a subsidiary

406

Other

(75)

88

(48,628)(68,308)

Increase (decrease) in short-term loans payable

24,000(1,817)(24,000)

Repayments of long-term loans payable
Proceeds from long-term loans payable－

Net cash used in investing activities
Cash flows from financing activities(1,686)

149,441－(20,000)

Dividends paid to non-controlling interests

(21)

(22)

Proceeds from disposal of treasury stock

4

3(67,998)(13,095)

Redemption of bonds
Dividends paid

Purchases of treasury stock
Expenditures due to repayments of lease liabilities
Other
Net cash used in financing activities
Net foreign exchange differences on cash and cash equivalents(9,173)－(830)(55,835)(12)

Net increase (decrease) in cash and cash equivalents(53,231)

Cash and cash equivalents at the beginning of the year

118,742

Cash and cash equivalents at the end of the year

65,510(9,071)(7,576)－73,994－Company Information

35

Dividends of surplus

273

7,621

Financial Information

Net income (loss)(137)

Corporate GovernanceCapital
stock

Total

Purchases of other financial assets

48,31565,510113,825

36

Company Information

Annual Review 2019

■ Company Profile / Stock Information
Company Profile

Major Shareholders

Headquarters

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

Establishment

December 20, 1960

Paid-in capital

JPY 15,232 million

Number of employees（consolidated）

16,959Securities Code

2579

Authorized Shares

500,000 thousand shares

Outstanding Shares

206,269 thousand shares (Common share)*Number of Shareholders

69,533

Number of Shares per
Trading Unit

100 shares*Outstanding shares of the Company are common shares only. The Company has not issued preferredshares nor any other types of shares which entail rights different from those of common shares.

Rating Information
2016

2017

2018

2019

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

AA－

AA－

AA－

AA－

AA－

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

A＋

A＋

A＋

A＋

A＋

2015

December 14,

Coca-Cola Bottlers Japan
Holdings Inc.
1st debenture bondSeptember 19,

Coca-Cola Bottlers Japan
Holdings Inc.
2nd debenture bondSeptember 19,

Coca-Cola Bottlers Japan
Holdings Inc.
3rd debenture bondSeptember 19,

16,000 0.276

2015

2019
2019
2019

40,000 0.100
60,000 0.200
50,000 0.270

4.2

Ichimura Foundation for New
Technology

5,295

3.0

STATE STREET BANK AND
TRUST COMPANY 505225

4,725

2.6

Satsuma Shuzo Co., Ltd.

4,699

2.6

Senshusha Co., Ltd.

4,088

2.3

Coca-Cola Holdings WestJapan, Inc.

4,075

2.3

Mitsubishi Heavy Industries
Machinery Systems, Ltd.

3,912

2.2

Japan Trustee Services Bank,
Ltd.（Trust Account）

3,747

2.1

MCA Holdings Co., Ltd.

3,408

1.9

Treasury Stock

Financial Institutions

thousand shares

thousand shares

13.0％
26,917

June 17,
2022

16.2％
33,399Securities
Companies

Individuals
and Others

December 14,

0.6％
1,202

12.2％
25,0862020

2024

September 18,

Other Domestic
Corporations

Foreign
Corporations

2026

32.7％
67,482

25.3％
52,182September 19,
2029

thousand shares

thousand shares

Stock Price(Yen)

To Our Shareholders(Annual newsletter to individual
shareholders,Japanese version only)

Website for shareholders and investors

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

Our website provides financial information, IR event schedules, IR
materials, and other extensive IR information for shareholders andinvestors. We also provide timely earnings announcements, news releases,
and other notifications to registered users.IR earnings presentations are
conducted in both English and Japanese and archived for later review.

22,00020,000ー Nikkei Index (Close)

18,000□ ■ CCBJH Stock Price■
CCBJH Stock
Trading Volume

16,0004,500

Investor Relations

IR Event Calendar

Library

Stock, Shareholders andBond Information▶

Earnings Release▶

Shareholders' Meeting▶

Earnings Presentation▶

Dividend Information▶

Securities Report▶

Stock Quote and Chart▶

Annual Review▶

▶

Financial Highlights

Stock and Shareholders
Information▶

Credit Rating and Bond

Financial Information

Stock
Trading
Volume(Thousands)

24,000Information

Corporate Governance

Investor Relations Mail

Disclosure Policy

Alert

Analyst Coverage

4,000

Inclusion in SRI Index

3,500

30,0003,000

Company Information

25,0002,500

20,000

2,000
1,500

15,0001,000

10,000

500

5,000
1

2

3

4

5

6

7

2017

37

Annual Review

thousand shares

thousand shares

September 19,

Stock Price and Stock Trading Volume

0

CSV Report

Corporate GovernanceCoca-Cola East Japan
Co., Ltd. 2nd series

7,460

Composition of Shareholders

Maturity date

30,000 0.524

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

CSV Initiatives

June 17,

Coca-Cola West
Co., Ltd. 3rd series

Coupon
rate
(%)

15.6

Note1： 26,917 thousand shares of treasury stock are not shown in the table above
and are excluded from the calculation of shareholding ratios.
Note2： The Coca-Cola Company holds 18.8% through Coca-Cola（Japan）Co.,
Ltd., Coca-Cola Holdings West Japan, Inc., and other subsidiaries.

Bond information
Total amountissued(Million yen)

27,956

Business Overview

2015

Date of issue

Coca-Cola（Japan）Co., Ltd.

Shareholder

Through the timely and appropriate disclosure of information, we seek to be a company that is correctly understood and trusted by allof our stakeholders. We report financial information primarily using various IR tools, while reporting ESG information (non-financial
information concerning the environment, society, and governance), the target of much attention in recent years, primarily through our
CSV Report. We also report wide-ranging corporate information on our website.

Financial and Non-Financial
Highlights

Coca-Cola Bottlers Japan Holdings Inc.

Shareholding
Ratio（%）

FeatureCompany name

Number of Shares Held（Thousands）

Top Message■ Communication Tools（As of December 31, 2019）

Coca-Cola Bottlers Japan Holdings Inc.

8

9

10

11

12

1

2

3

4

5

6

7

2018

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12 (month)

0

2019

38