Business Overview ANNUAL REVIEW 2018

Beverage Business TOP MESSAGE TOP

■ Overview of Coca-Cola Bottlers Japan Inc. (CCBJI) ■ The Role of CCBJI in the Coca-Cola System in Japan

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 and other bottler entities produce beverages under strict quality management in the respective plants and deliver Coca-Cola products to the customers through business outlets and Sales area Number of consumers Feature Tokyo,Kyoto,Osaka and (population and number of households in areas of coverage) vending machines. 35 prefectures About 112 million Coca-Cola (Japan) Co., Ltd. Coca-Cola Bottlers Japan Inc. (about 51 million households)

Research Production Financial and Non-Financial Producing Product Collection Planning and of Syrup Sales Recycling of Products Distribution of Containers Development Concentrates Containers Highlights

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

Other Product portfolio Business Overview Number of brands Water ■ History of our Company (Background to major mergers and consolidation) Sports Over Sparkling 27 ％ 50 Coffee

Non- Non-Sugar Tea 20 ％ Sugar 2017 Number of SKUs Tea

Over Coffee 20 ％ Sparkling 800 2017 initiativeCSV Sports 9 ％、Water 9 ％

2015 CCW CCEJ Annual sales Production volume 2015 2015

sites Governance Corporate

～ 510 million Coca-Cola East Japan 17 plants 2013 CCW Shikoku Sendai cases (CCEJ) ※2018 results ※Production suspended at Hongo Plant 2013 2013 2010：Q’SAI Number of Number of becomes subsidiary vending customer Coca-Cola West Minami- 2009 (CCW) Shikoku Tokyo Tone Mikuni CCCJ Sendai Information Financial machines outlets kyushu

～ 700K ～ 240K 2002 2005 ※As of end of 2018 ※As of end of 2018 Coca-Cola Minami- Coca-Cola 2001 West Japan Mikasa Kinki Shikoku Tokyo Tone Mikuni Central Japan Sendai (CCWJ) kyushu (CCCJ) Sales Number of Centers fleet vehicles 1999 2001 Company Information About About 350 1998 Kitakyushu Sanyo Mikasa Kinki Minami- Shikoku Tokyo Tone Mikuni Fuji Chukyo Sendai 16,200 and earlier kyushu ※As of February 2019, including distribution centers ※As of end of 2018

9 Coca-Cola Bottlers Japan Holdings Inc. 10 Business Overview ANNUAL REVIEW 2018 TOP MESSAGE TOP

■ The NARTD Market in Japan ■ Channel Overview

The NARTD market in Japan has been growing steadily, with market scale expanding by approximately 20% over the （Supermarkets, Drugstores & Discounters, and Convenience Stores） past 17 years. Chain Stores

In the supermarket channel, we worked actively to roll out new Feature ■Trends in Market Size (Shipment volume - physical case) products and campaigns such as the Coca-Cola Winter campaign and ribbon bottle, to activate points of sales as well as to more 2001 2018 effectively segment sales activities that identify the right product at Channel Category Channel Category the optimum wholesale price according to the customers'

Water circumstances and consumer demand. In convenience stores, we Other Other Other Sparkling Other Sparkling 5％ ％ ％ actively expanded launches of innovative new products as well as Financial and Non-Financial ％ 9 13％ ％ 8 ％ 16 12 Vending Water 15 Vending Sports Juice Juice channel and/or customer exclusive products to drive transaction ％ 14％ 39％ 9％ 12％ Convenience 27 8％ Sports growth. Highlights Convenience Store Store 23％ 6％ 22％ Tea Coffee Coffee Supermarket Tea 20％ Supermarket 28％ 24％ Create Sales Floor for Winter Campaign 38％ 29％ 23％ Vending （Vending Machines）

To boost the appeal of vending machines, we prepared optimal Millions of cases product lineups for each machine location and developed new

2,000 Business Overview 1,940 products and campaigns exclusive to vending machines. In addition, we carried out exclusive campaigns through our Coke ON smartphone app, and worked to provide new value to customers 1,800 through the launch of initiatives including Coke ON Walk, which lets people earn drinks just by walking, and Coke ON Pay cashless

1,610 settlement. 1,600 Coke ON Georgia Coke ON app exclusive campaign

Retail & Food Service （Restaurants, Kiosks, etc.） initiativeCSV 1,400 We made progress in expanding our product lineup by proposing drinks using our products, such as "Mocktails”, non-alcohol cocktails in restaurants. In addition, at kiosks and hotels, we 1,200 launched regional-design Coca-Cola slim bottles with illustrations of famous tourist spots and also proposed tailored sales Corporate Governance Corporate approaches for individual customers to improve service and 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Year consumer product offerings. Source：Inryou Souken "Mocktail" non-alcohol Development of regional cocktails design slim bottles

■ CCBJI Sales Volume (2018 results)

Coke ON smartphone app with Coke ON Pay cashless payment feature Information Financial Other Other Other 6% 1% Starting in November 2018, we began providing Coke ON Supermarket Juice 8% Retail & Food Sparkling Syrup, Pay cashless payment as a new feature of Coke ON. After service % 7% Powder 23 27% Small-sized 23% 16% PET registering credit card and other information, customers Coffee 37% can connect the smartphones to Coke ON Pay-compatible Channel Drugstore & 20% Category Package vending machines to purchase products directly through Discounter Can, Bottle can Vending % the app. 13 Non-sugar tea 19% Company Information 24% We have continued to strengthen features and services of Convenience Store Water 9% Sports 20% Large-sized PET 16% 9% 22% our loyalty program Coke ON since the start of service in 2016, like Coke ON Walk, which lets customers earn drinks just by walking with step count function of smart phone.

11 Coca-Cola Bottlers Japan Holdings Inc. 12 Business Overview ANNUAL REVIEW 2018 TOP MESSAGE TOP ■ Product Overview ■ Major new products launched in 2018

As a "Total Beverage Company", we offer products across wide variety of categories such as Sparkling, Non-sugar tea, 》Coca-Cola Peach Renewed 》Canada Dry The Tansan Renewed on January on March Coffee, Water, Sports and more. 7, 2019 11, 2019 The world's first Coca-Cola with a peach This carbonated water has no calories, Key brands by beverage category: flavor, this refreshing drink perfectly matches sugar, or caffeine. We have expanded the fragrance of peach to the deliciously the products lineup in four different flavors, Sparkling Non-sugar Tea Coffee Water Sports stimulating sparkle of Coca-Cola. In January by launching The Tansan Strong and The 2019, the drink made its reappearance with Tansan Lemon in March, The Tansan Apple Feature the addition of white peach juice for an even Mint in May, and The Tansan Lime in August. richer taste. Financial and Non-Financial

》Kochakaden Craftea Renewed 》Georgia Japan Craftsman Renewed

on March on April Highlights 4, 2019 22, 2019 Coca-Cola Orange tea, Peach tea This product uses cold-brewed coffee ＊2 Sparkling craftsmanship. Careful and slow extraction The Coca-Cola Brand holds the number one This tea drink offers a new concept: 100% from low-temperature water reduces share in the carbonated soft drink market. In pure fruit juice added to black tea. It is made 2018, we launched Coca-Cola slim bottles with bitterness and acidity in this coffee, for a with the choicest ingredients and a exclusive designs illustrating seasons and local refreshing and light taste that is popular in commitment to quality in every process. areas, along with seasonal campaigns. During Japan. Enjoy a fruity flavor and refreshing sweetness our winter campaign, we worked to energize

＊2 Contains 5% cold-brewed coffee Business Overview the brand through developments like the made with honey, 100% fruit juice, and Coca-Cola ribbon bottle that lets consumers double＊1 the normal amount of 100% win prizes. hand-picked Ceylon tea leaves. Coca-Cola slim bottle NEW YEAR design Winter campaign ＊1 Compared to Kochakaden Royal Lemon Tea

Non-sugar Tea Non-sugar Ayataka Made with carefully selected domestic tea leaves, Ayataka is a tea with the authentic flavor In 2018, we released a number of Coca-Cola slim bottle

of cloudy, teapot-brewed green tea. In Coca-Cola slim bottle initiativeCSV February of 2018, we launched Ayataka Chaba regional designs regional designs, illustrated with famed regional tourism spots. no Amami, a less-bitter and easy-to-drink We launched Sendai, Chiba, Nagoya, Koshien, and Hiroshima green tea; in June, Ayataka Hojicha, a roasted designs in June; Nara, Aizu, Shibuya, Tokyo, Mount Fuji tea with a solid, lingering taste and fragrance; and in September, Ayataka Tokusencha, a (Yamanashi), and Mount Fuji (Shizuoka) designs in August; and cloudy green tea designated a Food for Ayataka Ayataka Ayataka Niigata, Shonan, Hida Takayama, Osaka, and Hakata designs in Specified Health Use (FOSHU). Chaba no Hojicha Tokusencha Amami October. We also launched a Tokugawa design / Meiji Corporate Governance Corporate Restoration design to commemorate the 150th year since the Georgia Meiji Restoration. These have been a hit with customers, Georgia remains beloved by a wide range of especially tourists.

Coffee consumers as the top brand of coffee. The brand delivers distinctive and varied tastes through its commitment to coffee beans and manufacturing processes. We launched a Studying the choicest lemon sours served in bars number of new products, including Georgia Coca-Cola’s first alcoholic drink throughout Japan, we adopted the preparation method in

Grand Bito, a low-sweetness canned coffee with Information Financial solid coffee flavor for a whole new drink “Lemondo” launched in Kyushu which whole, grated lemon is soaked in alcohol ahead of sensation, and Georgia Japan Craftsman, which serving. Adding to a offers cold-brew deliciousness in a PET bottle. Alcohol content Alcohol content Alcohol content Alcohol content 9％ 7％ 5％ 3％ lineup of three products Lemon juice Lemon juice Lemon juice Lemon juice 17％ 7％ 10％ 7％ varied by alcohol I LOHAS content and I LOHAS is a beloved brand of water that percentage of fruit

Water values both taste and the environment. We juice, we launched launched a variety of new products in the Company Information flavored water series, including I LOHAS Lemondo Oni Lemon in Hakuto (White Peach) and I LOHAS 20th February 2019. Century Nashi.

Oni Lemon Salted Lemon Teiban (Regular) Honey Lemon (Strong Lemon) Lemon I LOHAS I LOHAS I LOHAS Mineral Water Hakuto 20th Century Nashi

Please refer to the link below for details on label permissions and notifications regarding FOSHU beverages (in Japanese only). https://www.cocacola.co.jp/inryoguide/lineup 13 Coca-Cola Bottlers Japan Holdings Inc. 14 Business Overview ANNUAL REVIEW 2018

Healthcare & Skincare Business TOP MESSAGE TOP

The operation of our healthcare and skincare business is centered on Q'SAI Co., Ltd., our wholly-owned subsidiary. ■ Product Overview 2018 Results Other 3%

Healthcare ■ Market Sizes for Health Food and Cosmetics Products in Japan Revenue Composition 51% Skincare Driven by consumers' increased consciousness toward health and beauty, the market sizes for health food and cosmetics by 46% Product products in Japan have seen continued growth every year. Feature

■Trends in Market Size of Health Food ■Trends in Market Size of Cosmetics Healthcare Products Unit: 100 million yen Unit: 100 million yen 8,000 27,000 》Kale Aojiru 》Hiza Support Collagen Foods with Function Claims Financial and Non-Financial 26,100 7,619 7,674 7,548 25,450 Made with 100% domestic kale grown without agricultural chemicals This product is Japan's first Food with Function Claims in the knee

7,435 Highlights 25,000 7,208 24,715 and chemical fertilizers, this product is rich in beta-carotene, calcium, joint category. Containing the functional substance collagen peptide, 7,000 24,010 potassium, vitamin C, dietary Hiza Support Collagen displays effectiveness fiber, and other nutrients often in helping knee joints bend and stretch. In the 23,305 23,000 lacking in diets. In 2017, the 11th year of its sales, the product took the No.1＊2 35th year since the product's spot in mail order sales of all collagen health launch, Q'SAI Kale Aojiru was food products in 2018. Many customers with 6,000 21,000 ranked as the No.1＊1 kale knee joint-related concerns have experienced aojiru product for the 11th the efficacy of the product. Business Overview consecutive year. ＊2 Survey by Yano Research Institute Ltd., calculating totals for product ＊1 Survey by Yano Research Institute Ltd., calculating totals for product series on the basis of shipment value by manufacturers in the fiscal 0 0 series on the basis of shipment value by manufacturers in the fiscal 2007-2017 collagen health food mail order sales market（ as of November 2007-2017 kale powder market（ as of November 2018） 2018）（ supplement types only）（ including conventional products） 2014 2015 2016 2017 2018 Year 2014 2015 2016 2017 2018 Year （Estimation）（Projection） （Projection） Source: Yano Research Institute Ltd., as of October 2018 Skincare Products

》 ■ Channel Overview Cola-rich Series initiativeCSV The "Cola-rich" series is a skin care series developed under the strict standard fostered Home Shopping in the health food field. We are enriching the line-up with beauty products such as BB Cream and the all-in-one Cola-rich beauty gel cream that brings together the functions of The home shopping channel accounts for about 90% of revenue, and we made efforts to enhance consumer attraction through lotion, milky lotion, serum, moisturising serum and cream. television infomercials and official shopping sites. Call centers receive orders and provide guidance as a point of contact to provide sales support, spreading awareness of new products as well as proposing products that match consumer characteristics and needs. Corporate Governance Corporate We also strengthened sales promotion activities to existing consumers, including value campaigns in our membership newsletter. ■ 2018 New products

》Cola-rich Series All-in-One Gel: Launched 》Shionagasu, a salt-absorbing supplement for Launched July December Big Size 1 "washing away," not reducing, salt intake 1

In response to requests from consumers, we About 2.1 times Seaweed-derived alginate, the main ingredient in released larger sizes of Cola-rich EX and the normal Shionagasu, absorbs the salt from meals. The

volume Information Financial Cola-rich EX Super Moist II. We also set more product lets people practice easy health habits appealing prices than the regular size price, to when they want to enjoy meals without concern actively engage consumers in reducing over salt, or when salt intake is otherwise difficult volumes of resources such as product boxes, to control for dining out, etc. packaging, and shipping boxes. Official shopping site

Launched 》Introducing a kale aojiru for on-premise use "Qsai Aojiru No Aru Shokutaku" December 1 Company Information We are working in a variety of ways to bring enjoyment of Kale Aojiru to even more people. As a part of this, we are expanding into sales channels other than home shopping sales, through initiatives such as collaboration with hotels to sell sweets and breads made with products from our Kale Aojiru Series. In December 2018, we Infomercial program At a call center launched "Qsai Aojiru No Aru Shokutaku", a Kale Aojiru exclusive for on-premise use.

For details on the submitted claims of Foods for Specified Health Use, please visit https://corporate.kyusai.co.jp/development/claims.php (in Japanese only) 15 Coca-Cola Bottlers Japan Holdings Inc. 16