2017
Annual Review

Coca-Cola Bottlers Japan Holdings Inc.
Securities Code: 2579

TO OUR SHAREHOLDERS AND INVESTORS

Pivoting to growth mindset
We are deeply grateful to all of our shareholders and investors for their continued support.
This report presents information on our business conditions and performance for theyear ended December 2017.

Please give us an overview of performance in 2017.
The soft drink industry in 2017 faced a severe environment for reasons including the impact of unfavorable
weather during the summer peak demand period. Despite
this, our soft drink companies undertook new productintroductions that appealed to added value, including
Foods for Specified Health Use (FOSHU) and Foods with
Function Claims, with the result that the market remained
almost flat versus prior year.
Amid this, our company, which launched under thebusiness integration of April 1, 2017, has pursued integration
with a sense of speed and the aim of establishing a base for
improvement of revenue and growth in 2018, on the basis of
our management principles of "community-based" and"customer-centric." As a result, despite the impact of theunfavorable weather, revenue-focused management
activities and the creation of net synergies allowed us
achieve operating income in excess of plans.

Tell us about the company's policies
and performance outlook in 2018.
We position 2018 as an important year for building on
the base we established in 2017 to achieve sustainablegrowth aimed at 2020. Three important elements inachieving growth are "national scale with local
presence," "innovation acceleration," and "creation ofsynergies." In terms of "national scale with local
presence," we will formulate detailed strategies basedon local market environments, the competitive environment, customer characteristics, and so on, through thesystem of six regional sales organizations that welaunched on January 1 of this year, and will engage inthorough "community-based" sales. At the same time,
we will make use of our Group's scale in agile productintroductions and procurement cost reductions formarketing materials. In terms of "innovation accelera-

1

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

tion," we will pursue innovation not only in products but
also in every aspect of our business, including marketing, market execution, supply chains, and indirectbusiness. Doing so, we will deepen our relationships
with customers and business partners. In terms of"creation of synergies," we aim to create net synergiesof ¥8 billion this year, centered on the supply chain area.
Through these initiatives, in 2018 we are aiming forconsolidated net revenues of ¥1007.3 billion (a yearon-year increase of 15.4%), operating income of ¥49.7
billion (a year-on-year increase of 22.5%), and net profit
attributable to owners of parent of ¥28.8 billion (ayear-on-year increase of 14.1%). Regarding shareholder returns, we forecast a ¥6 increase in annual
dividends to ¥50 per share (interim ¥25, year-end ¥25).

Please tell us about your progress in
the Mid-Term Strategic Plan leading
to 2020.
Growth Roadmap for 2020 & Beyond, the Mid-Term
Strategic Plan that we began at the same time as thelaunch of the company, is progressing steadily. In January 2018, we conducted an integration and a reorganization of our subsidiaries with the aim of simplification andoptimization of the organization. In terms of net synergies, we generated cost reduction effects of ¥4 billion in2017 and expect further effects of ¥8 billion in 2018. To
achieve our target of ¥25 billion in net synergies by 2020,
we will accelerate initiatives including active investment
to optimize product distribution and transport networks
to improve productivity in the manufacturing area.
Furthermore, with regard to improvement of capitalefficiency and maximization of returns to shareholders, werecently conducted a share repurchase and clarified ourdividend policy, and also introduced a performance-based
stock compensation program. We will also disclose ourfinancial information based on International Financial Reporting Standards (IFRS) from the end of 2018.

TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
GovernanceConsolidated Consolidated
Overview of
Executives Financial Indices Financial
Statements

Our History /Company
Profile / Stock Introduction to
Information Communication
Tools

Representative Director & President

Do you have any message for shareholders and investors?
Being a company trusted by our consumers,
customers, business partners, and all stakeholders,we will conduct our business activities following ourcorporate philosophy, THE ROUTE, while building on
our solid foundation for sustainable growth.
To all of our shareholders and investors, we ask foryour continued understanding and support.

Message from the CFO

Establishing a solid foundation for growth
We established the Growth Roadmap for 2020 &Beyond, our mid-term strategic plan, with a financial framework based on the following priorities
aimed at achieving greater corporate value:• Stable free cash flow growth through sustainableprofit growth• Investment to achieve growth and synergies• Building an efficient capital structure• Enhancement of shareholder return aimed at
improved ROE
Our 2017 pro forma＊ financial results included operating income of ¥42.1 billion and EBITDA＊ of ¥89.7
billion, achieved through the generation of net synergies, etc. With sustainable growth and a target of ¥25
billion in net synergies by 2020, in 2017 we madecapital investments of ¥49.9 billion, equivalent to 5%of our net revenues, and generated free cash flow of¥34.2 billion.
In "building an efficient capital structure" and "enhancement of shareholder return aimed at improved
ROE," we worked to clarify our dividends policy.
Under a basic policy of actively returning profits, weplace a priority on the stable payment of dividends.
From the end of 2018, we will disclose our financial
information based on International Financial Report1

2

＊1
＊2

ing Standards (IFRS) as well as maintain a dividend
payout ratio of 30% or higher from 2019. In addition, in April 2018 we acquired 17,075,239 sharesof treasury stock (8.28% of outstanding shares).
We also adopted a performance-based stock compensation program for Directors and Executive Officers. We will reinforce the commitment of top management to greater corporate value by linking executive compensation to share price performance.
I believe it is clear that we are making good initialprogress in driving shareholder value creation as partof our Growth Roadmap for 2020 & Beyond andthese priorities willcontinue to drive ourdecision making andactions into the future.

Representative Director &Vice President,
Chief Financial Officer

Vikas Tiku

Assumes the net integration that occurred on January 1, 2017, with performance in 2016 estimated on the basis of criteria similar to 2017.
Earnings before Interest, Taxes, Depreciation and Amortization

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 20172

Feature▶▶Mid -Term Strategic Plan

Growth Roadmap for 2020 & Beyond
Key Metrics and Picture of Success for 2020
Key
metrics

Revenue Growth

Value Share

Transactions

EBITDA
MarginROE

Pictureof success+1.8% CAGR
(2016-2020)

Value aheadof volume

Growth inpackaging for
immediate
consumption

EBITDA Margin
above 10%

ROE above 6%

TopicsCreation of net synergies
In 2017, we generated cost synergies of ¥4billion, which contributed to pro forma
operating income of ¥42.1 billion (ayear-on-year increase of 4%). At the sametime, we executed investments of ¥49.9
billion, equivalent to 5% of our net
revenues. We are making steady progressin our initiatives to reach our operating
income target of ¥65 billion in 2020, withthe aim of achieving sustainable growth anda target of ¥25 billion in net synergies by
2020.

●Pro forma operating income(Unit: billion yen)

Synergies

Synergies

4

25
65

Areas
SupplyChain
andProcurement

Main measures● Network optimization● Site and route optimization● Manufacturing productivity improvement● Increasing insourcing capacity● Price negotiation with suppliers● Standardized pricing, terms, conditions (PTC)

40.4 42.1

Commercial● Optimizing route-to-market (RTM)● Vending cost-to-serve● Sharing of best practice

2016

2017

2020 target

Reorganization of the Group
Our Group has undertaken integration of its organizations and businesses with asense of speed, taking "One company under one management" as our basic
principle. To further drive this process and achieve greater growth, we carried out areorganization of the Group, effective January 1, 2018. Accordingly, our company
name has become Coca-Cola Bottlers Japan Holdings Inc., while the number of theGroup companies has decreased from 25 on the first day of integration to thecurrent 14.

Back
Office● Establish integrated business support function● Integrate legacy systems into Coke One+

● Number ofGroup companies

25

14(As of April 1, 2018)

Clarification of dividends policy
We will continue to prioritize paying a stable dividend while also allowing shareholders to benefit from profit growth by holisticallyconsidering our business performance as well as capital structure. After the adoption of IFRS, we will target a dividend payout
ratio of 30% or more from 2019. The company will periodically review capital structure and dividend payout ratio to maximize
shareholder return while maintaining flexibility to pursue expansion opportunities. The company seeks to use retained earnings
to fund investment for sustainable growth for our business and for further enhancement of corporate value.

Acquisition of treasury stock and implementation of tender offer
In April 2018 we acquired 17,075,239 shares of treasury stock (8.28% of outstanding shares) by means of tender offer, as ameans to improve ROE and establish an efficient capital structure as outlined in our Mid-Term Strategic Plan.

Financial Information Disclosure based on International Financial Reporting Standards (IFRS)
We will start report our financial results under the International Financial Reporting Standards (IFRS) at the end of fiscal year
2018. By raising the international comparability of our financial information and by enhancing our information disclosures, we will
provide more usable information for shareholders and investors.

Introduction of a performance-based stock compensation program
Our company has introduced a performance-based stock compensation program by which our executive directors share themerits and risks of stock price movements with shareholders. The program will also further enhance motivation to contribute to
an increased stock price and to increased corporate value in the medium to long term. This stock compensation program is a
performance-based stock compensation program that awards compensation in the form of money and common shares of thecompany’s stock in-line with the achievement of targets for the consolidated ROE and consolidated compound growth rate forrevenue three consecutive business years. We also implemented the program for Executive Officers of the Company and of
Coca-Cola Bottlers Japan.

3

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
Governance

Overview of
Executives

Consolidated
Consolidated
Financial IndicesFinancial
Statements

Our History /Company
Profile / Stock Introduction to
Information Communication
Tools▶▶2017 Highlights
Financial and Non-Financial Highlights

Operating Income

Net Revenues¥872.6billionOur net revenues were ¥872.6 billion,
primarily due to the effects of businessintegration. Net revenues on a pro forma
basis were ¥991.6 billion.

¥40.5

Due to factors including the effects of businessintegration, changes to our tangible fixed asset
depreciation method, and cost reductions inthe soft drink business, operating income was¥40.5 billion. Operating income on a pro forma
basis was ¥42.1 billion.

ROE

Operating Income Margin

4.7

5.7

%

%

Due to factors including cost reduction
initiatives and the creation of net synergies, operating income margin was 4.7%.
Operating income margin on a pro forma
basis was 4.2%.

Population
within sales area

112

millionROE was 5.7%, primarily due to theeffects of business integration. On a pro
forma basis, ROE was 4.2%.

Sales volume

520

Water usage
per product liter

3.64

L/L

2016: 3.87 L/Lbillionmillion cases

Number of
manufacturing plants

17

plantsNumber of
employees

17,197

Water resource
cultivation area

Recycling rateof industrial waste

ha%6,583 99.94

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 20174

Feature▶▶2017 Highlights
Corporate Integration Highlights

January▶Approval for business integration
at the Coca-Cola West andCoca-Cola East Japan General
Meetings of Shareholders▶Start of the Vending Strategy ProjectFebruary▶Launch of Coca-Cola Bottlers Japan

March

April

May

▶Announcement of the Mid-Term
Strategic Plan "Growth Roadmap
for 2020 & Beyond"

June▶Integration of IT functions▶Integration of procurement functions
July

August▶Integration of planning functions

September▶Establishment of the Key AccountManagement Organization
October▶Formulation of company
philosophy "THE ROUTE"

November

December

5▶Reorganization (subsidiaries integration,etc.), change of name of holding company(effective January 1, 2018)

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

▶New structure of six regional salesorganizations(effective January 1, 2018)

TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
GovernanceConsolidated Consolidated
Overview of
Executives Financial Indices Financial
Statements

Our History /Company
Profile / Stock Introduction to
Information Communication
Tools▶▶Company Philosophy of the CCBJH (Coca-Cola Bottlers Japan Holdings Inc.) GroupTHE ROUTE

The origin of our business lies in route sales. To achieve further development with our customers
and business partners, we pay respect for the varied routes of our past, and intend to open up
future routes that hold infinite possibilities.

We have formulated a code of ethics and conduct as an action policy for employees of CCBJH Group to follow whenengaging in business activities that connect to THE ROUTE corporate philosophy in order to achieve the fundamental
principles and policies in our corporate operations.
The Group will work each day according to these basic principles, policies, and the code of ethics and conduct toremain a company trusted by our customers, regular patrons, and all of our other stakeholders.
Basic principles
Missionconcerning the environment

concerning the community

communication with customers

quality assurance

Cultureconcerning healthcorporate governance

Basic principles

ethics and compliancediversity and inclusion

Policiesorganizational managementhuman resource management

Code of ethics and conduct

Corporate
Identity

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

6

Soft Drink Business 2017 Results

Business Overview

Revenue Composition

Operating Income Composition

97%

92%

Soft Drink Business

The Soft Drink Market in JapanThe soft drink market in Japan has been growing steadily, with market scale expanding by approximately 18% over the past 16 years.
■Trends in Market Size
2001
Composition by Channel Composition by Category
Water

Convenience
Store
22 %

Other

5%

Other
Vending
39 %Sparkling

13 %SportsVending
Convenience
28 %
Store
22 %
Supermarket

Juice

Tea

Coffee

28 %

24 %

Water

Other

12 %

9%

Supermarket

2017
Composition by Channel Composition by Category

14 %

8%

Sports

6%

38 %

23 %

Other Sparkling
15 %
Juice

Tea

28 %

Coffee20 %(Millions of cases)

2,000

1,898
1,800

1,600

1,610

1,400

1,200

0

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017 (Year)(Source: Inryou Souken)

The Role of Coca-Cola Bottlers Japan in the Coca-Cola System in JapanThe Coca-Cola system operates as a franchise system. Coca-Cola Bottlers Japan Inc. plays central role in our group by
engaging in manufacturing, distribution and sales of finished products as a franchisee. At the same time, Coca-Cola (Japan)
Co., Ltd., the franchisor and a wholly owned subsidiary of The Coca-Cola Company, engages in operations such as productplanning/development, marketing activities including advertising, etc. and supplying concentrate/beverage base.
Coca-Cola (Japan) Co., Ltd.
Planning

ResearchandDevelopment

Productionof Syrup
Concentrates

Coca-Cola Bottlers Japan
Producing
Products

Coca-Cola Tokyo Research &Development Co., Ltd.
7

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL
ANNUAL REVIEWREVIEW2017
2017

Product
Distribution

Sales

Collectionof Containers

Recycling ofContainers

TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
GovernanceConsolidated Consolidated
Overview of
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Our History /Company
Profile / Stock Introduction to
Information Communication
Tools

Channel Overview
Other

1%

Supermarket

23%

Retail &Food service

23%

Drugstore &Discounter

Composition of

13%

Sales Volume
by Channel

Vending

Convenience Store

25%

15%

2017 pro forma results

Chain Stores(Supermarkets, Drugstores & Discounters,and Convenience Stores)
At supermarkets, drugstores, and discounters, we actively rolled out
Foods for Specified Health Use (FOSHU) and Foods with Function
Claims, while working to liven up points of sales through initiatives suchas campaigns tailored for each season. Additionally, we strove toincrease revenue through meticulous sales activities that sell the rightproduct (brand, volume, etc.) at the optimum wholesale price, matchedto the industry and to business partners' conditions. In convenience
stores, we worked to boost sales through the launch of new products
and through product launches co-planned with business partners.

Display at a supermarket

Retail & Food Service

Vending (Vending Machines)
To boost the appeal of vending machines, we prepared
optimal product lineups for each location and developed
products and campaigns exclusive to vending machines,
such as Coca-Cola Coffee Plus. In addition, we worked tostrengthen ties with customers and provide new value,
through initiatives promotions via our Coke ON smartphone app.

(Restaurants, Kiosks, etc.)
In restaurants, we strove to expand our productshare by proposing drink menu items highlighting our
products, such as "mocktail" non-alcohol cocktails.
In kiosks and hotels, to satisfy the inbound tourism
demand we strengthened our rollout of products
such as Coca-Cola slim bottles with regional
designs, illustrated with famed tourism spots.

Click here to
download theCoke ONsmartphoneapp

Coca-Cola Coffee Plus
Coke ON(vending machine exclusive) a smartphone app

Drink menu with
our products

Creating points of sales
in souvenir shops

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 20178

Product Overview
Other

11%

Composition ofSales Volume
by Category

Coffee

20%
Water

10%
Sports 9%
Sparkling

Small-sized PET

16%

26%

4%

Juice

Syrup, Powder

Sparkling

34%

Other productpackages

Medium-sized PET
Composition ofSales Volume
by Package

5%

Tea

20%

Can, Bottle can1%Large-sized PET

23%

21%

2017 pro forma results
Tea

Coca-Cola
In addition to the launch of Coca-Cola plus, the first Food forSpecified Health Use (FOSHU) in the history of Coca-Cola,
we launched products illustrated with depictions of seasons
and regions on Coca-Cola slim
bottles and worked to strengthen
sales. During the winter campaign, we brought energy to thebrand through a series of deployments including the Coca-Cola
ribbon bottles with lottery tickets.

Sokenbicha
In the Sokenbicha brand, we renewed our Sokenbicha
blended tea with a formulation that avoids the use of 27 raw
materials specified as allergens. We also launched Sokenbicha Barley, a Food with Function Claims that reduces bodily
fat. Efforts to increase
sales included the Sokenbicha "Sound" Campaign,
which allows people tolisten to original Sokenbicha arrangements ofDisney music.

Sports

Water

CoffeeGeorgia
We launched a variety of new products in the Georgia brand.
These include the aromatic and rich-tasting Georgia European Vintage Blend within the Georgia European series,
under the supervision of coffee specialty shop Sarutahiko
Coffee. We worked to strengthen sales in the high-demand
winter season. Our initiatives included the "Vending
Machine + 2°C Campaign,"
offering heated products at
a n eve n more e njoya ble
temperature.

I LOHASWe launched I LOHAS Sparkling Grape, a product which adds
extract from hand-picked Nagano Prefecture grapes to sparklingwater made with select natural water from Japan. In February, we
conducted a limited launch of I LOHAS Amao, made with extractfrom the Amao strawberry of Fukuoka Prefecture, one of the top
strawberry brands in the country.
Originally available in the Kyushu
Area only, the product enterednationwide sales in September in
response to many requests insocial media for a nationwide
launch.

For details of Foods for Specified Health Use (FOSHU) and Foods with Function Claims, please visit https://www.cocacola.co.jp/brands/all-products.

9

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
GovernanceConsolidated Consolidated
Overview of
Executives Financial Indices Financial
Statements

Our History /Company
Profile / Stock Introduction to
Information Communication
Tools

Topics New products launched in 2017
Foods for Specified Health Use and Foods with Function Claims
As demand increases amid customers' growing healthconsciousness, we launched new Foods for SpecifiedHealth Use and Foods with Function Claims in 2017,
centered on our sparkling beverages and sugar-free tea
products. We have brought together a product line-upthat includes Coca-Cola plus, a cola categorized as a
Food for Specified Health Use which combines taste andfunctionality, as well as Sokenbicha Healthy Ingredient
Mugicha under a refreshing, healthy, and delicious
concept, which is a Food with Function Claims.

Vending Machine Exclusive Products
To expand sales in the highly profitable vending
channel, we have been working to increase theappeal of vending machines. In terms of products, we have introduced vending machinelimited products, and strengthened our productlineups tailored to specific regions and machine
locations.

Limited-Design Coca-Cola Slim Bottles
We launched the design-conscious Coca-Cola slim bottles, including "local designs" that depict famous
tourism spots on special regional-oriented designs and "Cherry design" with full-bloom flower petals. In
2017, we launched eight special designs for regions (Tokyo, Kyoto, Kumamoto, etc.) and four limited
seasonal bottles (cherry blossoms, fireworks, etc.). Featuring regional attractions and the sense of theseasons in Japan, the bottles have proven their appeal , especially among tourists.

SaitamaTokyo
NagoyaUeno

Kyoto
Kumamoto
Yokohama
Setouchi

Limited regional bottles

Limited seasonal bottles

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201710

Healthcare & Skincare Business 2017 Results
Revenue Composition

Operating Income Composition

3%

8%

Healthcare &Skincare Business
The operation of our healthcare and skincare business iscentered on Q'SAI Co., Ltd., our 100% subsidiary.

Market Sizes for Health Food and Cosmetics Products in Japan
Backed by consumers' increased consciousness toward health and beauty, the market sizes for health foodand cosmetics products in Japan have seen continued growth every year.
■Trends in Market Size of Health Food

■Trends in Market Size of Cosmetics(Unit: Billions of yen)

(Unit: Billions of yen)

8,000

7,000

26,000

7,208

7,435

7,500

25,405

7,618
24,71524,01024,00023,3056,000

22,0005,000

20,000

0

0
2014

2015

2016

(Estimation)

2017(Year)(Projection)

2014

2015

2016

2017

(Projection)(Source: Yano Research Institute Ltd., as of October 2017)

Channel Overview

Home Shopping
The home shopping channel accounts for about 90% ofrevenue. We continuously review our infomercial programs andbroadcast slots to enhance consumer attraction. Call centers
receive orders and provide guidance as a point of contact to

At a call center

provide sales support, spreading awareness of new products aswell as proposing products that match consumer characteristics
and needs. Sales promotion activities to existing consumers
include value campaigns in our membership newsletter.

11

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

Infomercial program(Year)TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
Governance

Overview of
Executives

Consolidated
Consolidated
Financial IndicesFinancial
Statements

Our History /Company
Profile / Stock Introduction to
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Tools

Product Overview
2017 Results
Other

2%
Revenue
Composition
by Product

Skincare46%

Healthcare

52%

Healthcare Products

Kale Powder

Hiza Support Collagen

Made with 100% domestic kale grown without agriculturalchemicals or chemical fertilizers, this product is rich in β-carotene, calcium, potassium, vitamin C, dietary fiber,and other nutrients
often lacking in diets.
In 2017, the 35th year
since the product's
launch, Q'SAI Kale
Powder was the No.
1*1 kale powder product for the 10th consecutive year.

This product is Japan's first Food with Function Claims in
the knee joint category. Containing the functional substance collagen peptide, Hiza Support Collagen displays
effectiveness in helping knee joints bend and stretch.
In the 10th year of its sales, the product took the No.1*2 spot in mail ordersales of all collagen health food products in 2018. Many customers withknee joint-related concerns haveexperienced theefficacy of the
product.

*1 Survey by Yano Research Institute Ltd., calculating totals for product series on thebasis of shipment value by manufacturers in the fiscal 2007-2016 kale powdermarket (as of November 2017)*2 Survey by Yano Research Institute Ltd., calculating totals for product series on thebasis of shipment value by manufacturers in the fiscal 2007-2016 collagen healthfood mail order sales market (as of November 2017) (supplement types only)(including conventional products)

Foods with Function Claims

Skincare Products

Cola-Rich Series
The "Cola-Rich" series is a skin care series developed under the strict standard fostered in the health food field, "Only the products that customers
can feel the benefits." We are striving to enrich this product line-up by
launching products in 2017 such as "Cola-Rich Face Wash CC," a 5-in-1
serum face wash containing collagen, and "Placenta α," an all-in-one
beauty supplement, as well as other two products.

2017 Newproducts

Kobayashi HMB tablets Foods with

Offered in an easy-to-swallow tablet
form, this supplement suppresses
the deterioration of muscularvolume and strength to help maintain the muscular volume andstrength needed in everyday living.
The functional substance 3-Hydroxy
3-MethylButyrate (HMB) is createdwithin the body upon ingestion ofleucine, a key amino acid in muscle
formation, and has been reported tohave functionality to help maintainthe muscular volume and strength.

Function Claims

Cola-Rich Face Wash CC
This highly functional face washcombines five functions: cleansing,
face wash, keratin care, skin treatment,
and mud pack. Providing a uniquebalance of collagen and beauty packmud, it yields a thick, springy, and finely
creamy lather. Its four types of collagenand four types of beauty pack mudclean away every bit of dirt from thesurface of skin, and supplement the
moisturizing ingredients that are rinsed
away by face-washing.

For details on the submitted claims of Foods for Specified Health Use, please visit http://corporate.kyusai.co.jp/company/r-and-d/research/kinousei/.

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201712

Initiatives Aimed at Creating Shared Value (CSV) with Society
Our Basic Thinking Concerning CSVWith Creating Shared Value (CSV) at the core of our management, and taking the respective importance of society
and our business into account, our Group identifies three key themes : contribution to people's health, evolution to an
environmentally leading company, and strengthening of collaboration with communities.

Contributing topeople's health

Evolution to
an environmentallyleading company

Strengthening ofcollaboration with
communities

Contribution to the Achievement of SDGs
In September 2015, "Transforming our world: the 2030 Agenda for Sustainable Development" was adopted as a position
document at the "United Nations Sustainable Development Summit", with over 150 participating member nations. At thecenter of the agenda are the Sustainable Development Goals (SDGs), consisting of 17 goals and 169 targets.
Taking on the SDGs is vital for us as we aim to achieve CSV. Under this recognition, we will accept the SDGs as new
metrics and will contribute to their achievement.

Sustainable development
goals for 2030, agreed
upon by the world

13

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
Governance

Overview of
Executives

Consolidated
Consolidated
Financial IndicesFinancial
Statements

Our History /Company
Profile / Stock Introduction to
Information Communication
Tools

Highest Priorities for Achieving CSVContributing toPeople's Health

Examplesofinitiatives● Enforcement of quality control based on KORE
● Support of customers' health with diverse products● Holding of seminars on hydration● Activities to address the issue of lack of food

Examplesofinitiatives● Implementation of water resource management● Reduction of greenhouse gas emissions● Promotion of recycling● Adoption of environmentally-friendly containers

Examplesofinitiatives● Sports clinics led by the Coca-Cola Red Sparks● Family Musicals● Summer Schools● Environmental clean-up activities

Basic principles concerning healthAs a company closely tied to people's everyday lives, we
provide valuable products and services matched to theneeds and preferences of a range of generations, always
focusing on health first. In addition, through education onproper dietary habits and opportunities to enjoy sports, wewill work to maintain and promote people's health as we
advocate active and healthy lifestyles.

Evolution to an
Environmentally
Leading Company
Basic principles concerning the environment
We view the effective use of natural resources, including the water thatis indispensable to our business activities, and the handing down of the
global environment in a sustainable form to the next generation, as ourvital mission. Toward that end, by engaging in conservation of the global
environment through innovation that balances the reduction of environmental burdens with business growth, and through environmental
protection and awareness-building in local communities, we will achieve
Creating Shared Values (CSV) together with those communities.

Strengthening of
Collaboration with
Communities
Basic principles concerning the community
We will continue to deepen the ties to local communities
that we have nurtured over the years, and will growtogether with society toward a sustainable future. As acompany loved by all, we will continue to address issues insociety and local regions while reinvigorating those regions,and will achieve Creating Shared Value (CSV) with communities and our Group.

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201714

Contributing to People's Health■Quality Control Initiatives
We engage in rigid quality control under KORE
(Coca-Cola Operating Requirements), the proprietary management system that Coca-Cola Systems
operates globally. KORE is a system* covering
standards related to quality, food safety, the environment, and occupational safety and health in allprocesses, from raw materials procurement tomanufacturing, distribution and transport, anddelivery to the customer through sales. It meets therequirements of laws and regulations such as ISO
international standards, and incorporates proprietary
content that imposes even stricter standards. We
engage in initiatives for safety and security to ensurethat customers can enjoy our products with peace ofmind at any time.
* The system complies with ISO9001 for quality, FSSC22000 for foodsafety, ISO14001 for the environment, and OHSAS18001 for occupational safety and health.

Manufacturing
To ensure quality for our customers, we
strive for compliance with quality control
systems and improvement of quality
control technologies, as well asassurance of product safety.

Procurement

Storage andTransport

We draw on strict quality
standards in our use of raw
materials.

Customers
We connect comments andinquiries from customers to ourimprovement activities.

We enforce careful handling of
the products we produce in ourplants to ensure their delivery
with high quality.

We make efforts toward quality
management in customer
outlets and vending machines,
so that we can always provide
our customers with safe,
reliable, and fresh products.

Sales(customer outlets and vending machines)■Launch of Foods for Specified Health Use (FOSHU) andFoods with Function Claims
As a company closely tied to our customers' varied lifestylescenarios, we deliver refreshing moments together with a full lineup ofdelicious beverages that meet the needs of the times. To address
customers' growing health consciousness, in 2017 we expanded our
lineup of foods for specified health use and foods with function claims.
By providing products that aid the promotion of health while refreshingmind and body, we will offer support for our customers' lifestyles.

Foods for Specified Health Use■Holding of Seminars on Hydration
In order to promote proper hydration in a variety of scenarios in everyday life andsports, we hold seminars on hydration for schools, groups, and companies. In 2017,
we held 33 seminars with about 5,000 participants. Comments from seminar attendees include "I realized the importance of a well-regulated life once again" "I learned theimportance of minerals," and "I understood the importance of timing in hydration."■Donation of Products through Food Banks"Food bank" refers to an activity or organization that delivers edible but discarded
foodstuffs to people in need of food. We partner with food bank organizations including
Second Harvest Japan and foodbankalljapan in initiatives to donate our products. We
donated about 26,000 cases of drinks in 2017. Drinks contributed by our company areprovided to social welfare facilities through various groups.

15

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

Foods with Function Claims

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Evolution to an Environmentally Leading Company■Promotion of Water Resource Protection Activities
As a company that makes use of irreplaceable water in our business, we engage in Water Neutrality initiatives. Throughthese, we return the same volume and quality of water that we use in our products to the nature. We engage in activities
centered on the reduction of water usage (Reduce), the recycling of water used in the manufacturing process (Recycle), andthe protection of local water resources (Replenish). Since 2016, we have achieved effectively zero water usage.
● Water Resource Protection Activities

Through agreements with regional governments, forestry cooperatives, and other organizations regarding the water resource areas of the Group's plants, we engage in water resource
protection activities. In 2017, we conducted such activities in 13 regions within our company
areas. In the Coca-Cola Bottlers Japan water resource forests Ebino contract forest in Ebino,
Miyazaki Prefecture, for example, about 100 participants consisting of our employees, their family
members, and local residents took part in cutting underbrush, pruning, logging, and otheractivities that deepened their understanding of the importance of water resource protection.
We engage in conservation and regeneration of grasslands, as well as the flooding of rice
paddy fields with high cultivation capability while focusing on forest conservation activities. We
currently have about 6,583 ha of water resource cultivation.

Cutting underbrush

Water circulation in the Coca-Cola System
Water resource cultivation throughforest conservation activities

Promotion ofwater resource
cultivation
Water that
goes into
products
Acquired water

Replenish

Reduction ofwater used in
manufacturing

Appropriate
treatment ofused water

ReduceRecycleWater used in
manufacturing

In forests that maintain water retention capability
through thinning, planting, and other forest
conservation activities, rainwater seeps slowly into
the ground and creates abundant groundwater.

Water returned
to nature

Replenish rate in 2017 :275%■Working to Mitigate Climate Change■Toward a Recycling-Oriented SocietyWith the aim of contributing to the mitigation of climatechange throughout our businesses, from procurement andmanufacturing to distribution and sales, we endeavor to
reduce greenhouse gas emissions.
In terms of sales, we are moving ahead with the development
and implementation of machinery and equipment that lightens
environmental burdens, toreduce the electric power
consumption and CO2 emissionsof our vending machines andother sales equipment. Our
energy-conserving "peak shift"vending machines shift the useof electric power for cooling fromdaytime to night, cutting daytime
electric power consumption by
up to 95%. We began introducing these vending machines in
2013. In addition, we are moving
forward with plans to make allvending machines introduced to "Peak shift" vending machine
the market HFC-free by 2020.

We are working to reduce product waste losses and wastes generated in manufacturing through careful inventory control, while also
seeking to improve our empty container recycling rate and our adoptionof environment-friendly containers.
Acting on the latter under the idea of "Gentle to the environment,easy to use," we are advancing the development and adoption ofcontainers through the "Sustainable Container" concept that isshared by the Coca-Cola system worldwide. We have introduced
ecoru Bottle Shiboru, a bottle which can be easily crushed after
drinking, and the PEKORAKU bottle, a large-sized PET bottle that iseasy to crush and easy to pour. Our goal through these is to achieve
reduction of both environmental load and energy usage. We also aim
to have all Coca-Cola products adopt PET bottles made with plantderived raw ingredients or with recycled PET resin by 2020.
Easy to crush,easy to pourecoru Bottle Shiboru

PEKORAKU bottle

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201716

Strengthening of Collaboration
with Communities■Sports Clinics Led by the Coca-Cola Red Sparks
Coca-Cola sponsors a men's rugby
team and a women's hockey team (bothare entitled as Coca-Cola Red Sparks),
both of which compete in the country's
top leagues. Through sports clinic by
Coca-Cola Red Sparks, our Group
contributes to the sound physical andmental development of children, while
proposing active and healthy lifestyles topeople in our communities. We held
eight clinics in 2017, and enjoyedengaging in interactions with participants.

Number ofparticipants

957

Hockey clinic (Yamaguchi Prefecture)

Rugby clinic (Ehime Prefecture)■Family Musicals■Summer Schools

For the sound development of the youth who will shoulder the
next generation, we put on a family musical during the summer
holiday season. In 2017, Jiiji's Wondrous Restaurant was
performed at three venues within our company areas. All of thechildren as well as their guardians watched the original musicalthat addresses themodern societal
issues of food poverty and eatinga l o n e w i t h g re a t
excitement.

During the summer vacation, we hold summer schools for local
children and their guardians to offer hands-on workshops wherestudents learn about the various activities throughout the manufacturing process of Coca-Cola products as well as the importance of forests that provide irreplaceable water, and engage invarious hands-on
workshops in therich naturalenvironment.In
2017, summer
schools were held
at four of our Group
plants.

Number ofaudience members

Number ofparticipants

4,763

1,786

© Jin Hidaka■Environmental Clean-up Activities■Support Activities for Ichimura Shizenjyuku Kyushu

Recognizing global environmental conservation as a vital issue,
our Group promotes environmental conservation activities foreach region within our company areas, and we worked in environmental Clean-up activities in 17 areas around our company in2017. For example, 50 employees engaged in environmental
clean-up activities together with the local community in the All
Kyoto Beautification Drive, a cleaning activity toachieve the world's
most beautiful city
Kyoto.

Ichimura Shizenjyuku Kyushu is a non-profit organization (NPO) that
supports the growth and sound physical and mental development ofchildren, under a basic philosophy of "learning about the power to live
from Mother Nature.” We provide a place to foster qualities in childrenthat include discipline, independence, and creativity around three pillars:
hands-on farming activities, nature experience activities, and communal
living. Over the courseof eight weeks, students
from the fourth year ofelementary school tothe second year of
junior high school spend
weekends with fellow
students, experiencing avariety of activities
among the abundantnature of Tosu City in
Program
Saga Prefecture.

Areas ofactivity

17

graduates

863

17

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

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Human Resource Management to Enhance Corporate ValueOur Group values The Route corporate philosophy as an important corporate code for respecting human rights andsocietal norms as well as complying with laws and regulations. We stand for corporate dignity by always holding ourselves
to high ethical standards while respecting the rights and individuality of each and every employee. We advocate diversitythat actively incorporates a wide range of values and ideas by creating an environment where everyone can find success.
We are promoting a variety of initiatives according to these values with the goal of building an environment where ourpeople can reach their full potential.

〉〉〉Promotion of Diversity

Examples of
Main
Initiatives

Our Group aims to be an excellent company that embodies corporate dignity bypromoting and recognizing diversity through constructive debate. The active participation of women and disabled persons are pillars of our activities founded in our
respect for human rights, which is the policy of our initiatives leading up to 2020.
We hold training and e-Leaning to raise awareness about human rights, which is the
bedrock for promoting diversity, as a way to heighten sensitivity and teach accurate
information about the respect of human rights. We will also strengthen our awarenessraising activities, especially for management, under a theme to eliminate harassment.
We are engaging in initiatives to increase the percentage of female employees
and managers as well as female leadership to promote active participation of
women in all facets of our corporate activities. We also hold educational programs
specifically for women while introducing policies and systems to allow women to
shape their careers through various life events. We are also cultivating opportunities
for women who aim to become influential leaders through active promotional activities via projects to advance diversity in each key division as well as interaction
between female employees throughout the Group.
We have established a section for the employment of disabled persons andfurthered the setup of systems to promote the employment of disabled persons
throughout the entire Group to encourage active participation. In addition to the statutory employment rate, the Group also actively builds opportunities and environments
where every employee can work enthusiastically by conducting established support
activities through a full-time staff in charge of the employment of disabled persons.
We are also advancing initiatives set to facilitate telecommuting and satellite offices aspart of this effort to build an environment where everyone can reach their full potential.

〉〉〉Career Support

Examples of
Main
Initiatives● Respecting human rights● Promoting the active participation of women● Promoting the employment and active participation of disabled persons

Human Rights Training

International Women's Day Event● Career/skill development plans● Educational programs by career stage● Global training programs

Consultations between supervisors and their staff are conducted every
year for the staff's career plans and their achievement, to develop the staff
and help them grow.
Our three self-development programs focus on support through on-thejob training, group training, and self-learning programs for employees in
the workplace as skill development plans that aid in employee growth andcareer success. Our group training provides employee education programs that aim to cultivate the best human resources for our Group by thestage of their career. The specific group training includes supervisor training to heighten organizational operation and human resource development
skills, global leadership training that utilizes the Coca-Cola system, overseas training for employees to visit Atlanta, the birthplace of Coca-Cola,
and Coca-Cola Bottlers overseas as well as open training that aims to nurture the next generation of leaders.
Global training programs

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201718

Corporate GovernanceCorporate Governance Basic Policy
The Company's basic policy for corporate governance is to increase management efficiency and transparency, thus raising shareholder value.
With the aim of further strengthening our governance structure, the Company has put in place an Audit &Supervisory Committee. The Company's Audit & Supervisory Committee consists of one full-time director
serving on the Audit & Supervisory Committee and three outside directors, and a majority of its members areoutside directors. The oversight function of the Audit & Supervisory Committee is further enhanced by having
voting rights at Board of Directors' meetings and the right to state opinions on matters such as the nomination
and remuneration of directors at General Meetings of● Summary of Corporate Governance Structure
Shareholders.
Company with Audit &In addition, we have adopted the executive officer
Form of organization
Supervisory Committee
system in an effort to separate decision-making and superNumber of directors
9visory functions from the execution of operations of the
Directors serving on the Audit &corporation. By delegating some of the decisions on
4
Supervisory Committee
important business execution to directors, the Company
4
Outside directors
can enrich discussions on matters of special importance at
2
Independent directors
the Board of Directors' meetings, while further expediting
business judgments on other matters by management
Yes
Adoption of executive officer system
under the Representative Director (the management team).
Ernst & Young ShinNihon LLC
Financial/accounting auditor

Chart of Corporate Governance Structure
General Meeting of Shareholders
Election/Dismissal

Board of Directors

Financial/Accounting Auditor

Directors (excluding directors serving on the Audit & Supervisory Committee)
Selection/Supervision/Delegation of
execution of important operation

Directors serving on the Audit & Supervisory Committee

Reporting executionof operation

Representative Directors
Reporting

Audit Office
Auditing

Auditing

Executive Officers
Group Companies

Divisions

Reporting
Auditing/Determining proposals for election or dismissal
Coordination

19

Reporting/Stating Opinions

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

Supervision/Reporting
Exchange opinions
Coordination

Auditing

Audit & Supervisory Committee

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

Election/Dismissal

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Board of Directors
The Board of Directors consists of up to 10 directors (the number specified in the Articles of Incorporation, excluding
directors serving as Audit & Supervisory Committee members) and up to 7 directors serving as Audit & Supervisory
Committee members. The composition reflects an appropriate balance of deep knowledge concerning the businessof our Company's Group, along with diverse knowledge and expertise of company management, financial strategy,
risk management, legal compliance, and other matters. In addition, in light of the importance of the functions of outside
directors in corporate governance, several independent outside directors (based on the Company's standards forindependence) are appointed among the directors.
In order to determine candidates for director, the internal directors of the Company judge candidates' future potential anddegree of contribution in accordance with the Company's evaluation system. In the nomination of outside directors, theCompany nominates persons who are judged to be uniquely capable in increasing the corporate value of the Company.
● Reasons for appointment of outside directors
Audit & Supervisory
Committee members

Name

Reason for appointment

Hiroshi Yoshioka

Appointed to leverage his extensive management experience and knowledge, cultivated through experience as a Coca-Cola bottler outside
director and experience in Sony Corporation

Zenji Miura

Appointed to leverage his extensive management experience and knowledge
as Chief Executive Officer and President of Ricoh Company Ltd.

○

Irial Finan

Appointed for his extensive management experience and knowledge as a corporate
manager, with many years of involvement in the management of the Coca-Cola Company
and in the Coca-Cola business as the representative of the Bottling Investments Groupsupervising Coca-Cola bottlers worldwide, and to provide decision-making on key management judgments and counsel on all matters, including the handling of assumed risks○

John Murphy

Appointed for his extensive management experience and knowledge as a corporate
manager, with many years of involvement in the management of the Coca-Cola
Company in Japan and globally, and to provide decision-making on key management judgments and counsel on all matters, including the handling of assumed risks○

Independent
Director○○

Executive Compensation
Compensation for Directors (excluding Directors who are Audit & Supervisory Committee Members) is determined by the
Representative Directors who have authorized and empowered by the Board of Directors in accordance with criteria
stipulated by the Board of Directors. This compensation is composed of fixed and variable remuneration that changes
according to factors such as corporate performance to reflect the responsibility and contribution to corporate performanceof each Director. The compensation for Directors who are Audit & Supervisory Committee Members is determined bydeliberation with the Directors who are Audit & Supervisory Committee Member.
We implemented a performance-based stock compensation program after the approval of the proposal at the General Meeting of Shareholders in March 2018. This program shares the risks and stock price fluctuations faced by shareholders with executive directors for the
purpose of improving medium- to long-term corporate value as well as further enhance motivation to contribute to an increased stock price.
This stock compensation program awards compensation in the form of money and common shares of the company’s stock in-line with theachievement of targets for the consolidated ROE and consolidated compound revenue growth rate for three consecutive business years.
● Director Compensation (2017 results)
Category

Number paid

Total compensation

Basic compensation

Bonus

Directors(Outside directors)

12(2)¥476 million(¥11 million)¥362 million(¥11 million)¥114 million(-)

Directors (Audit & Supervisory Committee members)(Outside directors)

8(6)¥81 million(¥42 million)¥81 million(¥42 million)

(-)

Total
(Outside directors)

19(7)¥557 million(¥54 million)¥443 million(¥54 million)¥114 million(-)

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201720

Directors and Executive Officers (as of June 1, 2018)
Coca-Cola Bottlers Japan Holdings Inc.
■ Directors
Tamio Yoshimatsu

Vikas Tiku

Yasunori Koga

Representative Director &President;
Representative Director &President,
Coca-Cola Bottlers Japan Inc.

Representative Director & Vice
President, Chief Financial
Officer;
Representative Director& Vice President, Chief Strategy
and Financial Officer,
Coca-Cola Bottlers Japan Inc.

Director;
Senior Executive Officer,
Head of Administrations,
Coca-Cola Bottlers Japan Inc.

1988 Joined Diageo plc (The Pillsbury Company, USA)
1996 CFO, Diageo plc (The Pillsbury Company, Australia)
1998 CFO, Diageo plc (The Pillsbury Company, Asia-Pacific)
2000 Senior Vice President and COO, SOURCE MDx (USA)2005 Managing Director in charge of Asia-Pacific, The Hershey Company (USA)Group Manager, Manager and Acquisitions,
The Coca-Cola Company
2006 CFO, Coca-Cola Africa Group, The Coca-Cola Company
2009 Executive Vice President and CFO, Coca-Cola (Japan) Co., Ltd.
Representative Director, Executive Vice President and
CFO, Coca-Cola (Japan) Co., Ltd.
2011 Outside Director, Coca-Cola West Co., Ltd.
2015 CFO, Coca-Cola Asia Pacific Group, The Coca-Cola Company
2016 Vice President and Executive officer, Coca-Cola East Japan Co., Ltd.
2017 Representative Director, Coca-Cola Bottlers Japan Inc.
Vice President and CFO, Coca-Cola Bottlers Japan Inc.
Director, Coca-Cola East Japan Co., Ltd2018 Representative Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Vice President and CFO, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Representative Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Vice President and, Chief Strategy and Financial Officer,
Coca-Cola Bottlers Japan Inc. (incumbent)

1985 Joined Kitakyushu Coca-Cola Bottling Co., Ltd.
2010 Corporate Officer, Coca-Cola West Co., Ltd.
2012 Senior Corporate Officer, Coca-Cola West Co., Ltd.
2014 Director, Coca-Cola West Co., Ltd.
2017 Director, Coca-Cola Bottlers Japan Inc.
Senior Executive Officer, Coca-Cola Bottlers Japan Inc.
2018 Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)
Senior Executive Officer and Head of Administration,
Coca-Cola Bottlers Japan Inc. (incumbent)
Representative Director, Coca-Cola Bottlers Japan
Benefit Inc.
President, Coca-Cola Bottlers Japan Benefit Inc.

1969 Joined Kinki Coca-Cola Bottling Co., Ltd.
2000 Director, Kinki Coca-Cola Bottling Co., Ltd.
2004 Managing Director, Kinki Coca-Cola Bottling Co., Ltd.
2006 Senior Managing Director, Kinki Coca-Cola Bottling Co., Ltd.
Executive Corporate Officer, Kinki Coca-Cola Bottling Co., Ltd.
Director, Coca-Cola West Holdings Co., Ltd.
Executive Corporate Officer, Coca-Cola West Holdings Co., Ltd.
2007 Representative Director, Kinki Coca-Cola Bottling Co., Ltd.
President, Kinki Coca-Cola Bottling Co., Ltd.
2009 Director, Coca-Cola West Co., Ltd.
Executive Vice President, Coca-Cola West Co., Ltd.
Representative Director, Coca-Cola West Co., Ltd.
2010 President, Coca-Cola West Co., Ltd.
2017 Representative Director, Coca-Cola Bottlers Japan Inc.
President, Coca-Cola Bottlers Japan Inc.
Representative Director, Coca-Cola East Japan Co., Ltd.
President, Coca-Cola East Japan Co., Ltd2018 Representative Director, Coca-Cola Bottlers Japan
Holdings Inc.(incumbent)
President, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Representative Director, Coca-Cola Bottlers Japan Inc. (incumbent)
President, Coca-Cola Bottlers Japan Inc. (incumbent)

Costin Mandrea

Hiroshi Yoshioka

Tadanori Taguchi

Director;
Senior Executive Officer,
Head of Commercial andHead of Marketing,Coca-Cola Bottlers Japan Inc.

Outside, Independent Director

Director,
Audit & Supervisory
Committee Member (full-time)1998 Trade Manager (in charge of Romania and Moldova),
Coca-Cola Morino Beverages (Timisoara)
2006 Director in charge of Commercial Headquarters, Central
Office (Athens), Coca-Cola Hellenic Bottling Company
2010 Key Account Director, Coca-Cola Hellenic BottlingCompany Eurasia (Moscow)
2013 Director in charge of RTM, Headquarters,Coca-Cola
Hellenic Bottling Company
2015 Senior Executive Officer, Coca-Cola East Japan Co., Ltd.
Vice President and Executive Officer, Coca-Cola East Japan Co., Ltd.
2016 Director, Coca-Cola East Japan Co., Ltd.
2017 Director, Coca-Cola Bottlers Japan Inc.
Senior Executive Officer, Coca-Cola Bottlers Japan Inc.
2018 Director, Coca-Cola Bottlers Japan Holdings Inc. (incumbent)
Senior Executive Officer, Head of Commercial and Headof Marketing, Coca-Cola Bottlers Japan Inc. (incumbent)

1970 Joined Nichibei Coca-Cola Bottling Co., Ltd.
2005 Corporate Officer, Coca-Cola West Japan Co., Ltd.
2006 Corporate Officer, Coca-Cola West Holdings Co., Ltd.
2007 Group Corporate Officer, Coca-Cola West Holdings Co., Ltd.
2009 Group Corporate Officer, Coca-Cola West Co., Ltd.
2011 Senior Corporate Officer, Coca-Cola West Co., Ltd.
2012 Group Senior Corporate Officer, Coca-Cola West Co., Ltd.
Corporate Officer, Minami Kyushu Coca-Cola Bottling Co., Ltd.
2013 Senior Corporate Officer, Minami Kyushu Coca-Cola Bottling Co., Ltd.
Auditor & Supervisory Board Member, Coca-Cola West Co., Ltd. (full-time)2016 Director serving on the Audit and Supervisory Committee,
Coca-Cola West Co., Ltd. (full-time)2017 Director serving on the Audit and Supervisory Committee,
Coca-Cola Bottlers Japan Inc. (full-time)2018 Director serving on the Audit and Supervisory Committee,
Coca-Cola Bottlers Japan Holdings Inc. (full-time) (incumbent)

Zenji Miura

Irial Finan

John Murphy

Outside, Independent Director,
Audit & Supervisory
Committee Member

Outside Director,
Audit & Supervisory
Committee Member

Outside Director,
Audit & Supervisory
Committee Member

1976 Joined RICOH Company, Ltd.
1993 Director and President of RICOH France S.A.
2000 Executive Officer of RICOH Company, Ltd.
2003 Senior Executive Officer of RICOH Company, Ltd.
2004 Executive Director of RICOH Company, Ltd.
2005 Director of RICOH Company, Ltd.;
Senior Managing Executive Officer of RICOH Company, Ltd.
2008 Outside Auditor of Coca-Cola West Co.,Ltd2011 Representative Director of RICOH Company, Ltd.;
Executive Vice President of RICOH Company, Ltd.
2013 Executive President of RICOH Company, Ltd.;CEO of RICOH Company, Ltd.
2016 Outside Director of Coca-Cola West Co., Ltd.
2017 Special advisor of RICOH Company, Ltd.
Outside Director (Audit and Supervisory Committee
Member), Coca-Cola Bottlers Japan Inc.
2018 Outside Director (Audit and Supervisory Committee Member),Coca-Cola Bottlers Japan Holdings Inc. (incumbent)

21

1975 Joined Japan Radio Co., Ltd.
1979 Joined Sony Corporation
2001 Representative Director and President, Sony Ericsson
Mobile Communications Corporation
2003 ABCVP, Sony Ericsson Mobile Communications
Corporation2005 Corporate Executive, SVP, Sony Corporation
2008 Corporate Executive, EVP, Sony Corporation2009 Executive Deputy President Officer, Sony Corporation2013 Outside Director, Coca-Cola East Japan Co., Ltd.
2017 Outside Director, Coca-Cola Bottlers Japan Inc.
2018 Outside Director, Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)

1984 Finance Director, Coca-Cola Bottlers Ireland, Ltd.
1991 Managing Director, Coca-Cola Bottlers Ulster, Ltd.
2001 CEO, Coca-Cola Hellenic Bottling Company S.A.
2004 Senior Vice President (President of Bottling Investment
Group), The Coca-Cola Company
2012 Outside Director, Coca-Cola Central Japan Co., Ltd.
2013 Outside Director, Coca-Cola East Japan Co., Ltd.
2017 Outside Director (Audit & Supervisory Committee
Member), Coca-Cola Bottlers Japan Inc.
2018 Executive Advisor, The Coca-Cola Company
Outside Director (Audit & Supervisory Committee
Member), Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 20171988 Joined The Coca-Cola Company
1991 Joined Coca-Cola (Japan) Co., Ltd.
2000 Vice President and CFO, Coca-Cola (Japan) Co., Ltd.
2004 Deputy President, Coca-Cola (Japan) Co., Ltd.
2005 Vice President in charge of management strategy at
The Coca-Cola Company
2008 President, Coca-Cola Latin Center Business Unit,
The Coca-Cola Company
2013 President, Coca-Cola South Latin Business Unit,
The Coca-Cola Company
2016 President, Coca-Cola Asia Pacific Group, The Coca-Cola
Company
2017 Outside Director (Audit and Supervisory Committee Member),Coca-Cola Bottlers Japan Inc.
2018 Outside Director (Audit & Supervisory Committee
Member), Coca-Cola Bottlers Japan Holdings Inc.
(incumbent)

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Coca-Cola Bottlers Japan Holdings Inc.
■ Executive Officers
Jawahar Solai Kuppuswamy

Kyoichi Takagi

Haruko Ozeki

Raymond Shelton

Senior Executive Officer,
Head of Finance

Executive Officer,
Head of Corporate Planning

Executive Officer,
Head of Legal

Executive Officer,
Head of Investor Relations

Coca-Cola Bottlers Japan Inc.
■ Directors■ Auditors

Tamio Yoshimatsu

Vikas Tiku

Yutaka Sugita

Toshio Fukami

Representative Director &President

Representative Director & Vice President,
Chief Strategy and Financial Officer

Auditor

AuditorYasunori Koga

Shunichi Nasu

Jawahar Solai Kuppuswamy

Jun Kato

Senior Executive Officer,
Head of Administrations

Senior Executive Officer,
Head of IMO

Senior Executive Officer,
Head of Finance

Senior Executive Officer,
Head of Business Systems■ Executive Officers

Bruce Herbert
Senior Executive Officer,
Head of SCM

Masanori Ichihara

Senior Executive Officer,
Head of Key Account Management andHead of Key Account Management Marketing

Costin Mandrea

Yoshiki Fujiwara

Senior Executive Officer,
Head of Commercial and Head of Marketing

Senior Executive Officer,
Head of Region Sales

Kyoichi Takagi

Toyoji Okada

Haruko Ozeki

Shigeki Okamoto

Executive Officer,
Head of Corporate Planning

Executive Officer,
Head of Human Resources

Executive Officer,
Head of Legal

Executive Officer,
Head of Corporate Communications

Asako Aoyama

Maki Kado

Edward Walters

Yoichi Nishiguchi

Executive Officer,
Transformation Project Leader

Executive Officer,
Head of Procurement

Executive Officer,
Head of Logistics

Executive Officer,
Head of Manufacturing

Takeshi Narishige

Kimiya Kuraya

Yukinobu Kawamura

Kotaro Endo

Executive Officer,
Head of CVS Sales

Executive Officer,
Head of SM Sales

Executive Officer,
Head of Food Service and Drug Store Sales

Executive Officer,
Head of Channel Planning

Yoshiaki Murata

Yasuhiro Shiba

Yutaka Inoue

Kazuhito Sato

Executive Officer,
Head of Regional Key Account Management

Executive Officer,
Head of East Japan Region

Executive Officer,
Head of Kanto Region

Executive Officer,
Head of Tokyo Region

Keisuke Seki

Teruyuki Suzuki

Shunichiro Hombo

Executive Officer,
Head of Central Japan Region

Executive Officer,
Head of Kinki/Shikoku Region

Executive Officer,
Head of West Japan Region

Takahide Baba

Executive Officer;
Representative Director & President,
Coca-Cola Bottlers Japan Vending Inc.

Mikihiro Hara
Executive Officer;
Representative Director & President,
FV Japan Co., Ltd.

Q’SAI Co., Ltd.

CQ Ventures Co., Ltd.

■ Representative Director■ Representative Director

Satoshi Kambe

Kyoichi Takagi

Representative Director & President

Representative Director & President

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201722

Consolidated Financial IndicesFinancial 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.
Item

2007

2008

2009

2010

2011

(Millions of yen)
Net Revenues（％）
Growth Rate in Net Revenues

409,52124.9

395,556(3.4)

369,698(6.5)

375,764
1.6

399,717
6.4(Millions of yen)
Operating Income（％）
Operating Income / Net Revenues

16,056
3.9

10,521
2.7

2,242
0.6

12,003
3.2

16,4694.1(Millions of yen)
Recurring Income（％）
Recurring Income / Net Revenues

17,493
4.3

11,048
2.8

2,085
0.6

12,6593.4

16,044
4.0(Millions of yen)
Income (Loss) before Income Taxes
Income before Income Taxes / Net Revenues（％）

14,254
3.5

2,402
0.6

(10,446)(2.8)

12,982
3.5

14,013
3.5

Net Profit (Loss) Attributable to Owners of Parent (Millions of yen)（％）
Return on Sales

9,375
2.3

129
0.0

(7,594)
(2.1)

7,582
2.0

6,997
1.8

(Millions of yen)

−

−

−

−

5,605

Earnings (Loss) Per Share

(Yen)

88.29

1.25

(75.96)

75.84

69.99

Return on Equity

（％）

3.7

0.1

(3.3)

3.4

3.1

Return on Assets

（％）

5.6

3.7

0.7

3.8

4.7

Total Assets(Millions of yen)

315,672

277,696326,818

346,032

342,560

Net Assets(Millions of yen)

254,025

234,521

222,816

226,267

227,864

Equity Ratio

（％）

80.5

84.4

68.2

65.3

66.4

Net Assets per Share(Yen)

2,391.83

2,345.03

2,227.96

2,260.03

2,275.55

Price Book Value Ratio (PBR)*1(times)

1.0

0.8

0.7

0.7

0.6

Price Earnings Ratio (PER)*2(times)28.0

1,549.5(21.6)

19.4

19.1

Cash Flow from Operating Activities (Millions of yen)

33,00016,18028,74731,732

39,960Cash Flow from Investing Activities (Millions of yen)

(23,306)

2,153(23,447)(49,203)(34,050)

Cash Flow from Financing Activities (Millions of yen)

3,586

(31,486)

43,297(16,316)(8,780)Cash and Cash Equivalents at End of Fiscal Year (Millions of yen)

35,564

22,412

71,22137,43434,564

Dividend Payout Ratio (Consolidated) （％）

48.7

3,440.0

−

52.7

58.6

(Yen)
Dividend per Share[Interim Dividend Amount per Share] (Yen)

43.00(21.00)43.00(21.00)42.00(21.00)40.00(20.00)41.00(20.00)Interest Coverage Ratio*3(times)

285.4

462.7

97.2

35.4

58.1

Depreciation and Amortization (Millions of yen)

22,533

21,741

24,06922,405

21,371

Capital Expenditure

19,951

18,032

25,201

16,524

21,201

Comprehensive Income(Millions of yen)

*1 Price Book Value Ratio (PBR) = Market Value at End of Period ÷ Equity per Share*2 Price Earnings Ratio (PER) = Market Value at End of Period ÷ Earnings per Share*3 Interest Coverage Ratio = Operating Cash Flow ÷ Interest Paid23

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Consolidated
Consolidated
Financial IndicesFinancial
Statements

2012

2013

2014

2015

2016

2017

386,637(3.3)

431,711
11.7

424,406(1.7)

440,4763.8

460,455
4.5

872,623
89.5

13,463
3.5

15,9273.7

11,008
2.6

14,262
3.2

21,143
4.6

40,5794.7

13,845
3.6

16,606
3.8

10,6092.5

13,723
3.1

20,602
4.5

39,8594.6

12,186
3.2

18,730
4.3

8,409
2.0

15,228
3.5

12,707
2.8

39,240
4.5

6,031
1.6

13,625
3.2

4,482
1.1

9,970
2.3

5,245
1.1

25,2442.9

7,326

16,332

6,931

11,217

5,022

31,97660.33

128.15

41.07

91.35

48.05

144.26

2.6

5.6

1.8

3.9

2.0

5.7

4.1

4.7

3.0

3.8

5.5

6.3

337,348

374,418

337,260

378,105

377,468

883,918

231,056

257,936

254,150

260,878

261,173

627,485

68.4

68.8

75.2

68.9

69.1

70.9

2,307.44

2,359.82

2,325.19

2,386.81

2,389.28

3,070.01

0.6

0.9

0.7

1.0

1.4

1.3

22.1

17.4

40.4

26.9

71.7

28.5

26,32440,082

28,62840,422

34,38872,450(14,243)(16,493)(9,590)(24,994)(19,921)(41,090)(7,149)(8,286)(37,498)

22,416(7,546)(26,159)

39,49560,27541,83079,82886,727

118,741

68.0

32.0

99.8

44.9

95.7

30.5

41.00
(20.00)41.00(20.00)41.00(20.00)41.00(20.00)46.00(22.00)44.00(22.00)

41.8

66.0

50.8

97.2

72.6

128.3

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

20,031

20,242

22,783

16,181

25,72842,539Our History /Company
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Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201724

Consolidated Financial Statements
Consolidated Balance Sheets (As of December 31)
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.
(Unit: Millions of yen)

2015

2016

2017

Cash and Deposits

49,95563,849101,858

Trade Notes and Accounts Receivable

30,086

29,64969,266

Marketable Securities

30,001

23,112

17,000

Merchandise and Finished Goods

27,73527,27954,357

600

652

267

Raw Materials and Supplies

2,305

1,998

7,323

Deferred Tax Assets (Current Portion)

2,817

2,572

3,777

14,75814,76132,499

(372)

(287)

(376)

157,888

163,587

285,974

Buildings and Structures, net

33,23031,162

73,145

Machinery, Equipment, Vehicles, net

21,381

22,68867,382

Sales Equipment, net

30,31339,999111,800

Land

63,204

62,128151,375

69

5

591

1,978

1,829

5,897

150,178

157,815

410,192

31,762

22,66876,557−−50,098

6,638

4,889

14,43738,401

27,557141,092

Investment Securities

22,382

20,144

31,792

Deferred Tax Assets

1,512

1,367

2,448

−

123

257

Other

8,317

7,392

13,119Allowance for Doubtful Accounts

(574)

(519)

(958)

Total Investments and Other Assets

31,63728,50846,659Total Fixed Assets

220,217

213,881597,944

Total Assets

378,105

377,468

883,918

Item
ASSETS
Current Assets

Work in Process

Other
Allowance for Doubtful Accounts
Total Current Assets
Fixed Assets
Property, Plant and Equipment

Construction in Progress
Other, net
Total Property, Plant and Equipment
Intangible Assets
Goodwill
Franchise Intangible
Other
Total Intangible Assets
Investments and Other Assets

Retirement Benefit Assets

25

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Item

2015

2016

2017

Trade Notes and Accounts Payable

19,532

15,99040,496

Current Portion of Long-Term Borrowings

2,517

17

1,817

Accrued Income Taxes

2,112

5,717

8,356

Other Accounts Payable

21,42625,042

55,410

355

308

427

Provision for Bonuses

−

−

2,521

Provision for Directors' Bonuses

−

−

134

10,061

8,662

17,19356,00655,739126,357

50,00050,00066,000201

18312,031

Deferred Tax Liabilities

3,381

2,965

26,198Net Defined Benefit Liability

3,375

3,505

20,358

163

191

30

−

−

90

4,099

3,709

5,365

Total Non-Current Liabilities

61,22160,556130,075

Total Liabilities

117,227

116,295

256,432

Capital Stock

15,231

15,231

15,231

Capital Surplus

109,072

109,072

450,568

Retained Earnings

136,851

137,404

155,535

Treasury Stock(4,586)(4,593)(4,692)

256,569

257,114616,642

Net Unrealized Gain (Loss) on Other Marketable Securities

5,217

4,092

6,886

Deferred Gains or Losses on Hedges

(177)

77

590

17

(3)

12

Cumulative Adjustments for Retirement Benefits(1,132)

(522)

2,926

Total Accumulated Other Comprehensive Income

3,924

3,643

10,416

384

414

426

Total Net Assets

260,878

261,173

627,485

Total Liabilities and Net Assets

378,105

377,468

883,918

LIABILITIESCurrent Liabilities

Provision for Sales Promotion Expenses

Other
Total Current Liabilities
Non-Current Liabilities
Bonds Payable
Long-Term Loans Payable

Provision for Directors’ Retirement Benefits
Provision for Environmental Measures
Other

NET ASSETS
Shareholders’ Equity

Total Shareholders’ Equity
Accumulated Other Comprehensive Income

Foreign Currency Translation Adjustments

Non-Controlling Interests

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201726

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (January 1 to December 31)
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.
Consolidated Statements of Income(Unit: Millions of yen)

Item

2015

2016

2017

Net Revenues
Cost of Goods Sold
Gross Profit
Selling, General and Administrative Expenses
Operating Income
Non-Operating Income
Interest Income
Dividends Income
Share of Profit of Investees Equity-method
Gain on Sales of Property, Plant and Equipment
Profit on Sale of Valuable Materials
Rent Income
Other Non-Operating Income
Non-Operating Expenses
Interest Expenses
Loss on Disposal of Property, Plant and Equipment
Expense for Bond Issuance
Other Non-Operating Expenses
Recurring Income
Extraordinary Income
Gain on Sales of Property, Plant and Equipment
Gain on Sales of Investment Securities
Gains on Negative Goodwill
Gain on Step Acquisitions
Extraordinary Losses
Impairment Loss
Loss from Disaster
Loss on Disposal of Property, Plant and Equipment
Write-down of Investment Securities
Loss on Valuation of Golf Club Memberships
Loss on abandonment of inventories
Loss on Withdrawal from Pension FundBusiness Integration-Related Expenses
Income before Income Taxes
Income Taxes
Income Tax Adjustments
Total Income Taxes
Net Profit
Net Profit (loss) Attributable to Non-Controlling Interests
Net Profit Attributable to Owners of Parent

440,476
216,524
223,951
209,689
14,262
1,209
53
370
88
120
112
101
362
1,748
416
726
133
472
13,723
8,177
−
78
8,099
−
6,672
5,191
−
1,113
78
−
−
289
−
15,228
3,211
2,028
5,239
9,989
18
9,970

460,455
221,844
238,611217,467
21,143
1,239
48
410
199
27
116
124
311
1,780
468
746
−
565
20,602
1,131
921
209
−
−
9,025
6,857
1,081
−
156
−
930
−
−
12,707
7,039
364
7,404
5,303
58
5,245

872,623
422,373450,249
409,669
40,579
1,475
17
453
61
46
296
354
246
2,195
539
940
−
715
39,859
910
489
368
−
53
1,530
598
−
−
−
28
−
−
903
39,24012,985
1,051
14,03625,203(40)
25,244

2015

2016

2017

Net Profit
Other Comprehensive Income
Net Unrealized Gain (Loss) on Other Marketable Securities
Deferred Gains or Losses on Hedges
Foreign Currency Translation Adjustments
Adjustments for Retirement Benefits
Share of Other Comprehensive Income of
Associates Accounted for Using Equity Method

9,989

5,303

25,203

1,827
−
1
(114)

(1,125)
−
(20)
592

2,794
537
15
3,416

(486)

272

8

Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive Income Attributable to Shareholders of the Parent
Non-Controlling Interests

1,228
11,217

(280)
5,022

6,772
31,976

11,198
18

4,964
58

32,017(40)

Consolidated Statements of Comprehensive Income
Item

27

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Consolidated Statements of Changes in Equity (January 1 to December 31)(Unit: Millions of yen)

Shareholders’ Equity

Accumulated Other Comprehensive Income

Total
Net Unrealized Deferred Foreign CumulativeNon- Total Net
Total(Loss) Gains Currency Adjustments Accumulated Controlling Assets
Capital Capital Retained Treasury Shareholders’ GaionnOther
Other
on Translation for Retirement Comprehensive Interests
Stock Surplus Earnings Stock
EquityMarketable (Losses)
IncomeSecurities Hedges Adjustments Benefits
Balance as ofJanuary 1, 201715,231 109,072 137,404(4,593) 257,114

4,092

77

(3)

(522)

3,643

414

261,173

Changes of Items during
the Fiscal Year 2017
Dividends of Surplus——(7,113)—(7,113)

—

—

—

—

—

—

(7,113)

Net Profit Attributableto Owners of Parent——

25,244—25,244

—

—

—

—

—

—

25,244

—

—

—

(111)

(111)

—

—

—

—

—

—

(111)

—

5

—

11

17

—

—

—

—

—

—

17

Change in Parent
Equity Involving
Transactions with
Non-Controlling
Shareholders

—

(72)

—

—

(72)

—

—

—

—

—

—

(72)

Increase by Stock
Exchanges— 341,562—— 341,562

—

—

—

—

—

—

341,562

Net Changes of Items
Other thanShareholders’ Equity

—

—

—

—

—

2,794

512

15

3,449

6,772

12

6,785

— 341,496

18,131(99) 359,527

2,794

512

15

3,449

6,772

12

366,312

15,231 450,568 155,535(4,692) 616,642

6,886

590

12

2,926

10,416426

627,485

Acquisition of Treasury
Stock
Cancellation of Treasury
Stock

Total Changes of Items
during the Fiscal Year
Balance as ofDecember 31, 2017

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201728

Consolidated Statements of Cash Flows (January 1 to December 31)
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.
(Unit: Millions of yen)
Item
Cash Flows from Operating Activities
Income before Income Taxes
Depreciation
Impairment Loss
Amortization of Goodwill
Increase (Decrease) in Provision for Directors' Bonuses
Increase (Decrease) in Provision for Directors’ Retirement Benefits
Increase (Decrease) in Net Defined Benefit Liability
Decrease (Increase) in Net Defined Benefit Asset
Interest and Dividends Income
Interest Expense
Equity in Losses (Earnings) of Associates
Loss (Gain) on Sales of Marketable and Investment Securities
Write-down of Marketable and Investment Securities
Loss (Gain) on Sales of Fixed Assets
Loss on Disposal of Fixed Assets
Gains on Negative Goodwill
Loss(Gain) on Step Acquisitions
Decrease (Increase) in Accounts Receivable
Decrease (Increase) in Inventories
Decrease (Increase) in Other Assets
Increase (Decrease) in Accounts Payable
Increase (Decrease) in Other Liabilities
Other
Sub-totalInterest and Dividends Received
Interest Expenses Paid
Income Taxes Paid
Income Taxes Refunded
Net Cash Provided by Operating Activities
Cash Flows from Investing Activities
Acquisition of Marketable and Investment Securities
Proceeds from Sales of Marketable Securities and Investment Securities
Acquisition of Fixed Assets
Proceeds from Sales of Fixed Assets
Acquisition of Shares of Subsidiaries and Associates
Acquisition of Shares of Subsidiaries
Acquisition of Shares of Subsidiaries with Change in Scope of Consolidation
Payments of Long-Term Loans Receivable
Proceeds from Collection of Long-Term Loans Receivable
Payments into Time Deposits
Proceeds from Withdrawal of Time Deposits
Other
Net Cash Used in Investing Activities
Cash Flows from Financing Activities
Proceeds from Short-Term Loans
Expenses for Repayment of Short-Term Loans
Proceeds from Long-Term Loans
Expenses for Repayment of Long-Term Loans
Proceeds from Issuance of Bonds
Redemption of Bonds
Purchase of Treasury Stock
Proceeds from Sales of Treasury StockExpenses for Acquisition of Subsidiaries' Treasury Stock
Dividends Paid
Dividends Paid to Non-Controlling Interests

2015

2016

2017

15,22824,048
5,191
2,649
−
14
(610)
24
(423)
416
(88)
(78)
78
(118)
1,538
(8,099)
−
262
2,491
1,936
(1,447)721
336
44,073425(415)(3,862)
202
40,422

12,707
17,491
6,857
2,302
−
27
1,003
(123)
(459)
468
(199)
(209)
156
(893)
875
−
−
437
711
(128)
(3,542)160(89)
37,553459(473)(3,918)767
34,38839,24037,352
598
3,989
124
(297)
(215)
(134)
(470)
539
(61)
(368)
−
(525)
585
−
(53)
(3,826)
8,611
282(3,274)(881)
591
81,807470(564)(10,488)
1,225
72,450(20)
272(16,576)863−(20)(10,124)
(441)
923
(160)
296
(7)
(24,994)(257)
876(23,347)
2,304
(3)
−
−
(453)
959
(160)
167
(6)
(19,921)(130)
608(43,104)
1,605
−
−
−
(79)
44
(155)
165
(44)
(41,090)−(50)−(2,517)
29,866−(6)
0−(4,474)
(34)
−
(366)
22,416
1
37,84541,830152
79,828−−−(2,517)−−(6)
0−(4,692)
(28)
−
(300)
(7,546)(20)
6,899
79,828−86,7278,000(10,000)
28(2,070)−(14,000)
(111)
21
(7)
(7,113)
(29)
(409)
(470)
(26,159)
15
5,215
86,727
26,798
118,741

Expenses for Acquisition of Subsidiaries' Stock Not Accompanying Change in Scope of Consolidation

Other
Net Cash Provided by (Used in) Financing Activities
Translation Differences for Cash and Cash Equivalents
Net Increase (Decrease) in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Increase in Cash and Cash Equivalents Associated with New Consolidation
Cash and Cash Equivalents at End of Year29

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Company Profile / Stock Information (As of December 31, 2017)■Company Profile
Company nameCoca-Cola Bottlers Japan Holdings Inc.

Securities Code

2579

Headquarters

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

Authorized Shares

500,000 thousand shares

Registered office

7-9-66 Hakozaki, Higashi-ku, Fukuoka, Japan

Outstanding Shares

206,268 thousand shares

Establishment

December 20, 1960※

Number of
Shareholders

60,437

Paid-in capital¥15,231 million

Number of Shares
per Trading Unit

100 shares

Number of employees(consolidated)

17,197

Stock Exchange
Listings

Tokyo Stock Exchange (First Section)
Fukuoka Stock Exchange※As of January 1, 2018, the company name was changed to Coca-Cola Bottlers Japan Holdings Inc.

■ Composition of Shareholders■ Major Shareholders

Treasury Stock

Financial Institutions

1.0%
2,015 thousand shares

18.2%
37,569 thousand shares

Individuals and Others

11.4%
23,518

Securities Companies

1.5 %3,182 thousand shares

thousand shares

Foreign Corporations

Other Domestic Corporations

25.3%
52,091 thousand shares

42.6%
87,890 thousand shares

Shareholder

Number of
Shares Held

Shareholding
Ratio

Coca-Cola (Japan) Co., Ltd.

27,956

13.7

Ricoh Company, Ltd.

17,075

8.4

Japan Trustee Services Bank, Ltd.
(Trust Account)

7,376

3.6

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

6,039

3.0

Toyo Seikan Group Holdings, Ltd.

5,604

2.7

The New Technology
Development Foundation

5,294

2.6

Satsuma Shuzo Co., Ltd.

4,699

2.3

Senshusha Co., Ltd.

4,088

2.0

Coca-Cola Holdings West Japan, Inc.

4,074

2.0

Mitsubishi Heavy Industries Machinery
Systems, Ltd.

3,912

1.9

(Thousands)(%)

Note1: 2,015 thousand shares of treasury stock are not shown in the table above
and are excluded from the calculation of shareholding ratios.
Note 2: The Coca-Cola Company holds 16.5% through Coca-Cola (Japan) Co.,
Ltd., Coca-Cola Holdings West Japan, Inc., and other subsidiaries.
Note 3: Effective April 13, 2018, 17,075 thousand shares of the company's stock
held by Ricoh Company, Ltd. were acquired through tender offer.

■ Stock Price and Trends in Stock Trading Volume
Stock Price (Yen)

Stock Trading Volume(Thousands)

24,00022,00020,000ー Nikkei Index (Close)

18,00016,000
4,500
4,000
3,500

30,0003,000□ ■ CCBJH Stock Price■ CCBJH Stock
Trading Volume

2,500
2,000

25,00020,0001,500

15,0001,000

10,000

500

5,000

0

1

2

3

4

5

6

7

2015

8

9

10

11

12

1

2

3

4

5

6

7

2016

8

9

10

11

12

1

2

3

4

5

6

7

8

9

10

11

12 (month)

0

2017

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201730

Our History■ Our Sales Areas

1998
and earlier

Current

12bottlers■ History of our Company (Background to mergers and consolidation)

2017

2017

CCW

2015

CCEJ

2015

CCW

2013

(CCW)

2002

Coca-ColaWest Japan(CCWJ)

MikasaMinamiShikoku
kyushu

Tokyo

Tone

Mikuni

CCCJ

SendaiMinamiShikoku
kyushu

Tokyo

Tone

MikuniCoca-Cola
Central Japan

Sendai

2005

Kinki

(CCCJ)

1999

1998
Kitakyushu
and earlier

31

Sanyo

Sendai(CCEJ)

2013

Coca-Cola West2009

Coca-Cola East Japan

Shikoku

20132010 Q'SAI becomesfull subsidiary

2001

2015

2001

MikasaKinki

MinamiShikoku
kyushuCoca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 2017

Tokyo

Tone

Mikuni

Fuji

Chukyo Sendai

TO OURSHAREHOLDERS
AND INVESTORS

FeatureBusiness
Overview

CSV initiative

Corporate
Governance

Overview of
Executives

Consolidated
Consolidated
Financial IndicesFinancial
Statements

Our History /Company
Profile / Stock Introduction to
Information Communication
Tools

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

Our IR tools report primarily financial information for our investors.

We communicate information concerning
sustainability to our stakeholders.

ANNUAL REVIEWTO OUR SHAREHOLDERS■ 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.

Investor Relations
Library

IR Event Calendar

Stock, Shareholders andBond Information▶ Earnings Release▶ Shareholders' Meeting▶ Earnings Presentation▶ Dividend Information▶ Annual Review▶ Stock Quote and Chart▶ Financial Highlights▶ Stock and Shareholders
Information▶ Credit Rating and Bond
Information

Corporate Governance

Investor Relations

Disclosure Policy

Mail Alert

Coca-Cola Bottlers Japan Holdings Inc. ANNUAL REVIEW 201732

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