CSV REPORT 2019 Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 02 THE ROUTE Message Group’s CSV Report Information

Toward 2020 and Beyond What kind of future can we create?

The Sustainable Development Goals (SDGs), which were adopted by the United Nations in 2015, identify corporations as key actors in solving global social issues. The continued expansion of the CCBJH Group’s business comes with a duty to respond to What are the SDGs? social issues. Now more than ever, we must confront the impact The SDGs are common our activities have on those around us, and how we should global goals to be engage with the problems our communities face. achieved by 2030.

What should the CCBJH Group do? The Sustainable Development And what can we do? When we think Goals (SDGs), adopted at the United Nations Sustainable about the future, we know Development Summit held in the time to act is now. September 2015, are a set of shared global priorities to be achieved by 2030 through the ef orts of the international community in order to realize a world in which no one is left behind. The SDGs are universal goals that broadly encompass economic, social, and environmental topics. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 03 THE ROUTE Message Group’s CSV Report Information

Contents Editorial policy 04 Corporate Philosophy: THE ROUTE CSV Priority: Community Featured Topic 1: 05 Top Message 23 The Coca-Cola Bottlers Japan Holdings Group (CCBJH Group) believes we can Welcoming Consumers from Overseas help build a more sustainable society through our beverage business and our 07 The CCBJH Group’s CSV Featured Topic 2: healthcare and skincare business. In this report, our aim is to communicate the 24 07 CCBJH Group by the Numbers Energizing Communities through Sports CCBJH Group philosophy of Creating Shared Value (CSV) and introduce some

08 The CCBJH Group’s CSV Management 25 2018 Progress Report of our specifi c CSV initiatives to our stakeholders.

09 2018 Financial Highlights 27 Customer Satisfaction Referenced guidelines 1 0 2018 CSV Highlights 28 Quality Assurance Global Reporting Initiative (GRI) Sustainability Reporting Standards 2016 11 Contributing to the Realization of the SDGs 29 Ethics and Compliance Period covered CSV Progress Report 30 Risk Management 13 This report covers activities from January 2018 to the end of December 2018. CSV Priority: Health 31 Human Rights and Employee Job Satisfaction Numerical data is also for the period from January 2018 to the end of December 2018. Featured Topic 1: 33 Roundtable Discussion: Smart Work 1 3 Supporting Consumers’ Health with an Extensive Product Line-up 35 Corporate Governance Scope of the report Information presented in this report was collected from Coca-Cola Bottlers Featured Topic 2: 1 4 CCBJH Group Information Healthcare and Skincare Business 37 Japan Holdings Inc., Coca-Cola Bottlers Japan Inc., the Coca-Cola Bottlers Japan 37 Board of Directors Group companies*1, Q’SAI CO., LTD., and the Q’SAI Group companies*2. (Please 1 5 2018 Progress Report see page 40 for the Group structure.) 39 Main Product Line-up CSV Priority: Environment 40 CCBJH Group Profi le Date of issue Featured Topic 1: 1 7 June 2019 Aiming to Realize a “World Without Waste” 41 Communicating with Our Stakeholders Terminology Featured Topic 2: 42 1 8 Plant Tours Water Resource Conservation The “CCBJH Group” (“we”) refers to Coca-Cola Bottlers Japan Holdings Inc. and its eight Group companies (Coca-Cola Bottlers Japan Inc., the CCBJI Group’s 20 2018 Progress Report other companies, and Q’SAI CO., LTD.) as well as Q’SAI CO., LTD. Group companies, while “CCBJI” refers solely to Coca-Cola Bottlers Japan Inc. “CCBJI Group” refers to Coca-Cola Bottlers Japan Inc. and its Group companies. “Bottlers” refers to all bottling partners throughout Japan, as designated by Coca-Cola (Japan) Company, Limited. The “Coca-Cola system” comprises CSV Report 2019 survey Coca-Cola (Japan) Company, Limited, its bottling partners, and other af liated companies. “Customers” generally refers to both “consumers” (primarily product This survey is to aid in the development of our future CSV initiatives and our next CSV Report. end-users) and “business partners” (primarily those who sell our products). Please let us know your thoughts and opinions. The feedback you give us will play a role in improving our CSV activities and disclosures. *1 Coca-Cola Customer Marketing Co., Ltd., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Kadiac Co., Ltd., Coca-Cola Bottlers Japan Business Services Inc., and Coca-Cola Bottlers Check Japan Benefi t Inc. Please access the survey via the URL below or the QR code. *2 QSAI Analysis and Research Center Co., Ltd., QSAI FARM SHIMANE Co., Ltd., and CQ Ventures Co., Ltd. https://form.ccbji.co.jp/form/csv2019_en Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 04 Corporate Philosophy: THE ROUTE THE ROUTE Message Group’s CSV Report Information THE ROUTE Our philosophy that supports value creation

Mission What we should do for society Deliver happy, refreshing moments to (meaning of existence) everyone in the community, every day.

Corporate Identity We help build and support sustainable What employees should We focus on all our consumers Community- communities, foster strong connections Customer- always consider in the course and customers to become their based with them, and help protect the centric of operations trusted partner. environment, Creating Shared Value.

We respect the individuality of our Hinkaku We respect human rights, honor employees, actively incorporating diverse community principles, and strive to Diversity (Corporate values and ideas so all can achieve their Dignity) maintain the highest ethical standards. full potential.

Culture 1 Build on our HERITAGE as we shape our FUTURE. 5 Enjoy life and welcome CHALLENGE. What we value and how we 2 Fuel life and work with commitment and PASSION. 6 Act with RESPECT, inspire RESPECT. act in order to be a company 3 Base judgments on ETHICS. 7 Value COOPERATION. that supports society 4 Think independently, take RESPONSIBILITY. 8 Pursue “SIMPLE AND SPEEDY” solutions.

CCBJH Group philosophy https://en.ccbji.co.jp/vision/about.php Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 05 Top Message THE ROUTE Message Group’s CSV Report Information

As society changes, our company must as well. How we transform is up to us.

A year in which the CCBJH Group achieved results while also recognizing new challenges

The Coca-Cola Bottlers Japan Holdings Plant in Mihara, Hiroshima Prefecture, Group (CCBJH Group), created from the sustained severe damage from torrential management integration of Coca-Cola rains and fl ooding in western Japan and West and Coca-Cola East Japan bottling suspended all operations. Spurred to action companies, consists of two business by our commitment to being community- segments: the Coca-Cola beverage based and customer-centric, we quickly business and the healthcare and skincare decided on an appropriate relocation site in business. Among more than 250 Coca-Cola the local Mihara area and are now steadily bottlers worldwide, the CCBJH Group is working to rebuild and restart operations in the largest Coca-Cola bottler in Asia, and the spring of 2020 at the new site. the Group’s beverage business is one of the Although our business integration has largest in the world in terms of revenue. created many benefi ts in terms of scale and Our corporate identity consists of four operational synergies, we face the challenge ideals to which all CCBJH Group employees of how to respond to a rapidly changing should aspire in their daily business market environment and diversifying activities: community-based and customer- customer needs. To help address this centric values, hinkaku (corporate dignity), challenge, we implemented a reorganization and diversity. Our standard for being in March 2019, shifting to an organizational community-based is to realize the concept structure that enables faster and more of Creating Shared Value (CSV) by placing ef cient decision-making, a renewed growth importance on connections with local mindset, and a reenergized commitment to communities and the environment that we creating shared value. have nurtured over many years. We suf ered On a personal note, I am excited to be a major blow in July 2018, when the Hongo back in Japan, a place that is like a second Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 06 THE ROUTE Message Group’s CSV Report Information

The outcome of creating shared value is where our true results lie.

home to me, and I feel a great sense of G20 Finance Ministers and Central Bank initiatives aimed at creating shared value. business. As we embrace new challenges purpose in having this opportunity to Governors Meeting. It is clear that In the area of health, we will promote with corporate dignity and become a place shape the future development of the corporate environmental, social, and healthy lifestyles through the provision of in which every employee understands that CCBJH Group. I take very seriously the governance (ESG) performance is only safe, high-quality products and services business results can contribute to shared social responsibilities that the Group must becoming more important. suited to the needs and preferences of value with society, we look forward to fulfi ll as a leader in the Japanese beverage Since before the business integration, people of all ages. In addressing the earning and maintaining the continued market and will devote myself the CCBJH Group had established CSR environment, we aim to be on the cutting trust of our many stakeholders. wholeheartedly to rebuilding a foundation priorities in accordance with ISO 26000, edge and leverage innovation to for future growth under the new corporate the international standard for social simultaneously grow our business and structure. responsibility, and managed its businesses reduce our environmental impact through with a strong focus on ESG. The Group programs focused on packaging and continues to place the concept of Creating water—which is essential to our business— Engaging with the SDGs and Shared Value (CSV), a further refi nement of as well as other natural resources. To reinforcing our ESG-focused CSR, at the core of management, and all of benefi t communities, we will make real the initiatives the Group’s employees and business concept of CSV by further boosting divisions will concentrate their ef orts on collaboration and engaging in activities The Sustainable Development Goals realization of CSV in their own work. that contribute to community revitalization. (SDGs), comprising 17 goals to be achieved In addition to the priorities of customer Sustainable growth is not possible for a by 2030, were adopted at a United Nations satisfaction, quality assurance, ethics and company that believes business expansion Summit in 2015, and Japan’s Corporate compliance, risk management, human can only come at the expense of the Governance Code went into ef ect the rights, and job satisfaction, we will consider environment and society. The CCBJH same year. In 2018, Japan’s Ministry of what new added value we can deliver by Group is not simply interested in the short- Calin Dragan Representative Director and President Economy, Trade and Industry endorsed and leveraging the power of the Coca-Cola term pursuit of profi ts. Rather, we want to Coca-Cola Bottlers Japan Inc. signed a statement of commitment to the brand and how we can help solve problems maintain a wide perspective and farsighted purpose of the Task Force on Climate- facing local communities through our outlook to ensure close alignment between related Financial Disclosures (TCFD), business. We will focus on our priority the future needs of society and the instituted by the Financial Stability Board issues of health, the environment, and communities in which we operate, and our in accordance with the instructions of the community while further reinforcing vision for the long-term health of our Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 07 CCBJH Group by the Numbers THE ROUTE Message Group’s CSV Report Information WHO WE ARE

Among the world’s largest Brands of ered by revenue and in Japan Asia’s largest independent Coca-Cola bottler Over 50

Vending machines ASIA About Plants* 700,000 17 * Includes the Hongo Plant, Hiroshima, Sales and which is currently inactive distribution JAPAN centers Business area About TTokyookyo, 350 Consumers KKyotoyoto, (Households and consumers in sales areas) Customer outlets OOsakasaka, and 3355 prefectures About 112 million 240,000 (51 million households) Responsible for close to 90% of the sales volume of the Coca-Cola system in Japan Data as of the end of December 2018 Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 08 The CCBJH Group’s CSV Management THE ROUTE Message Group’s CSV Report Information CREATING SHARED VALUE

While providing signifi cant value to society through its business activities, the CCBJH Group seeks to further its presence in nurturing prosperity together with its stakeholders. To this end, the Group has Health Environment Community adopted the CSV concept as a part of managing how it carries out business. CSV focal points Since the CCBJH Group recognizes that addressing social issues in areas closely related to its business activities is key to realizing CSV, the Group has decided to focus on the three priority issues of health, the environment, and Conducting business together community. We believe that using the strengths of the with stakeholders CCBJH Group to contribute to the development of a sustainable society will help cultivate the support and trust The stakeholders with which the CCBJH Group creates of many stakeholders. Building on the main topics of shared value include local communities, various associations customer satisfaction, quality assurance, ethics and and organizations, consumers, business partners, suppliers, compliance, risk management, respect for human rights, investors, and the employees that work as part of the and employee job satisfaction, we have set goals and Group. As the issues that society faces become more guidelines for all employees to carry out their daily tasks. diverse and complex, the participation of our stakeholders is crucial. Listening to our stakeholders’ needs and providing value to society is the Group’s most important mission.

Customer Human satisfaction rights & job satisfaction

Quality Risk management assurance Ethics & compliance Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 09 2018 Financial Highlights THE ROUTE Message Group’s CSV Report Information 2018 AT A GLANCE

Revenue Business income Volume Volume comparison comparison by channel by category ¥927,307 ¥23,276 million million

Operating profi t Net profi t for the year attributable ...... to owners of the parent Supermarket 23% Sparkling soft drink 27% Drug store & discounter ...... 1 3% Non-sugar tea ...... 20% Convenience store ...... 1 6% Sports drink ...... 9% Vending machine...... 24% Water ...... 9% ¥14,682 ¥10,117 Retail & food service ...... 23% Cof ee ...... 20% million million Other ...... 1% Juice ...... 7% Other ...... 8%

Sales volume does not include alcoholic beverages.

Earnings per share (EPS) ¥52.68 2019 Key Metrics*

Revenue growth Revenue unchanged year on year, volume –1% Beginning from the full-year fi scal 2018 results, we have reported fi nancial information according to Value share Value ahead of volume International Financial Reporting Standards (IFRS). “Business income” has also been introduced as a measure of recurring business performance since the CAPEX ¥99.8 billion adoption of IFRS. Business income (BI) ¥15.4 billion

Dividend Full-year ¥50/share

*Based on the “Revision of Full-Year 2019 Forecast” released on May 15, 2019 Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 10 2018 CSV Highlights THE ROUTE Message Group’s CSV Report Information 2018 CSV HIGHLIGHTS

Hydration seminar and Water used for manufacturing Sports clinic and class participants Drink Education seminar participants

Approx. 8,600 14,071 thousand m3 4,415 (approx. +3,600 year on year) (–7.30% year on year) (–608 year on year)

Brands and products of ered in Japan Recycling rate of waste from plants Plant tour visitors Over Over beverage Approx. % Approx. brands and products 99.11 167,000 50 800 (approx. –0.83% year on year) (approx. –6,000 year on year)

FOSHU* and Food with CFC-free vending machine ratio Disaster agreements with local governments Function Claims products sold in Japan

11.5 million cases Approx. 78 % 586 (–800,000 year on year) (approx. +10% year on year) (+2 year on year)

*Foods for Specifi ed Health Uses Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 11 Contributing to the Realization of the SDGs THE ROUTE Message Group’s CSV Report Information FOR A HEALTHIER WORLD

The Sustainable Development Goals (SDGs), adopted at the United Nations Sustainable Development Summit held in September 2015, are a set of shared global priorities to be achieved by 2030. The CCBJH Group aims to contribute to the SDGs through its business activities, and is developing specifi c action plans in collaboration with Coca-Cola Japan and other stakeholders. Using the model on the right to examine the SDGs overall, while also referring to the standards from the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board, we have formulated goals and initiatives that are interconnected with our business activities. We will next consider and proactively ECONOMY address the risks and opportunities to be found in our value chain structure. SOCIETY Goals closely connected to

the CCBJH Group's business activities Responsible Consumption and Production

Good Health and Clean Water Climate Well-being and Sanitation Action BIOSPHERE

Decent Work Quality and Economic Life Education Growth Below Water

Peace, Justice Gender Reduced and Strong Inequalities Institutions Equality Based on the SDG “wedding cake” illustration presented by Johan Rockström and Pavan Sukhdev (Image credit: Azote for Stockholm Resilience Centre, Stockholm University) Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 12 THE ROUTE Message Group’s CSV Report Information

SDG-related Initiatives

Supporting consumers’ health with Welcoming consumers from overseas Production department initiatives P. 2 1 an extensive product line-up (multilingual POP communication P.23 P. 1 3 (Foods for Specifi ed Health Uses, materials, visitor-friendly vending machines) Increased ef ciency and use of modal shift Foods with Function Claims) by the logistics and transportation P. 2 1 Customer Contact Center P. 27 department Healthcare and skincare business P.14 Compliance education P.29 Eco-driving and use of hybrid vehicles P. 2 1 Health support initiatives (Coke ON Walk, mocktails, and P. 1 5 Ethics & Compliance Reporting Hotline P.29 Use of energy-saving, “Enjoy Walking until 100 Project”) non-chlorofl uorocarbon P. 2 1 equipment by sales department Hydration seminars, Drink Education seminars P. 1 6

Sports clinics by company sports teams Open communication and Collaborating with members of P.24 P. 1 6 correct information the beverage industry and other P. 1 7 Plant tours P.25 stakeholders on recycling initiatives Bins for sorting recycling and Environmental education programs P.25 P. 1 7 consumer awareness stickers Participation in community cleanup P. 1 7 campaigns 2030 Packaging Vision P. 17, 22 Compliance with ISO 14001 and P.20 other international regulations Diversity and inclusion initiatives Recycling waste from plants Risk management systems P.32 P.22 P.30 (zero emissions) Initiatives for expanding women’s roles Corporate governance P.32 P.35–36 in the workplace Agreements with local governments and installation of disaster-response P.26 emergency vending machines Quality assurance system (KORE) P.28

Water resource conservation P.18 Returning to nature the water used for P.19 The Coca-Cola system The Coca-Cola system in Japan is composed of Coca-Cola (Japan) Co., Ltd.—which supplies manufacturing in Japan beverage bases, plans and develops new products, and conducts marketing activities—as well Forest preservation activities P.19 as fi ve bottling partners and other af liated companies that manufacture or sell products and (Coca-Cola “Learn from the Forest” project) retrieve their containers.

Coca-Cola (Japan) Co., Ltd. Bottling partners and af liated companies Human resources development (career advancement and P.3 1 performance evaluation) Research Beverage Distribution Human rights initiatives P.32 and base Production and Sales Retrieval Recycling Planning development production transportation Occupational safety and health initiatives P.32 Work-style reform initiatives P.33 Coca-Cola Tokyo Research & Development Co., Ltd. CSV Priority Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 13 THE ROUTE Message Group’s CSV Report Information Health Supporting Consumers’ Health with Background: Key Societal Issues Featured an Extensive Product Line-up Topic We offer a wide product line-up adapted to diverse needs. We have responded to growing health Demographic changes and consciousness with products such as mineral water, non-sugar tea, and no-calorie beverages, and lifestyle diversifi cation in Japan in recent years we have also expanded our line-up to include Foods for Specified Health Uses In recent years, major changes in Japan’s (FOSHU) and Foods with Function Claims. We support our consumers’ lifestyles through products population demographics, such as declining that provide overall refreshment and contribute to improving health. birthrate and aging population, have increased in severity. The lifestyles of individuals are also likely to become even more diverse in the coming years due to the increasing number of nuclear families 2009 and single-person households. debut 2018 I LOHAS Natural debut 1993 Mineral Water debut I LOHAS is a brand of Japanese mineral water developed out of a love for great-tasting water and the Canada Dry Ayataka Sokenbicha environment. I LOHAS mineral The Tansan Strong Tokusencha Since its launch in 1993, as a water is drawn from carefully Canada Dry The Tansan unique non-sugar tea that selected water sources and This product is a Strong provides refreshment while locally produced for a is highly carbonated FOSHU green tea that aiding health and beauty, delicious taste that can be water with zero calories, contains indigestible Sokenbicha has become a enjoyed at any time. zero sugar, and zero dextrin, a plant- leader in the non-sugar tea caf eine created to provide derived dietary fi ber. category because of its clean an invigorating feel and The product provides aroma and is loved by a wide crisp fl avor. Both the water two health benefi ts by range of people. and gas used for suppressing fat carbonation are fi ltered in absorption and the uncompromising slowing sugar pursuit of delicious taste. absorption.

Coca-Cola Zero Aquarius S-Body Since its launch in 2007, Aquarius S-Body is the fi rst beverage with the Food with Function Coca-Cola Zero has delivered Claims label of ered under the Aquarius brand. It contains tiliroside, the delicious signature taste a fl avonoid derived from rose hips that has been reported to help of Coca-Cola with zero decrease body fat. It has all the great taste of original Aquarius calories, zero preservatives, with zero calories. 2007 and zero artifi cial fl avorings. This product provides all Check debut Please refer to the link below for details on label permissions and notifi cations regarding these FOSHU the powerful, refreshing and Food with Function Claims beverages (in Japanese only). sensation and rich fl avor of regular Coca-Cola. https://www.cocacola.co.jp/inryoguide/lineup CSV Priority Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 14 THE ROUTE Message Group’s CSV Report Information Health Healthcare and Skincare Business Background: Key Societal Issues Featured Q’SAI’s mission is to enhance value in consumers’ lives and lifestyles through the Topic healthcare and skincare business. Q’SAI provides kale juice and other high-quality, safe, Longer lifespans and and trustworthy products that contribute to the achievement of consumer health and escalating health needs in Japan happiness with the aim of helping consumers remain energetic, active, beautiful, and able to enjoy life. In postwar Japan, cases of illness decreased dramatically and the average life expectancy increased substantially. However, lifestyle diseases associated with aging have increased and this, together with rising medical costs, has Contributing to consumer health and become a major social issue. As people continue to live happiness with healthcare and skincare products longer, it is becoming more important to maintain health and the ability to live on one’s own, with emphasis now Although the environments in which we live will continue We will continue to provide a broad range of healthcare being placed on not just extending the average lifespan but to change in the years ahead, the importance of and skincare products to help people lead energetic and on attaining a prolonged healthy life expectancy. considering health in everyday living will remain constant. enjoyable lives at any age. These products include Q’SAI’s signature product, Kale Aojiru (kale juice), Kale Aojiru to promote health, Knee-support Collagen to contributes to improving consumer quality of life because help consumers walk energetically, and cola-rich collagen it is full of nutrients that are often missing in the modern skincare products to make consumers look and feel young diet. The kale used in this product is grown with absolutely and beautiful so they enjoy going out and socializing. Rigorous quality control no pesticides or chemical fertilizers. Q’SAI is committed to Since Q’SAI makes products for people to use in their making products that people can use with peace of mind, daily lives, we make absolutely sure that consumers and applies its own rigorous management and control can use any of our products with true peace of mind. systems to ensure product quality. We strive to maintain high product quality through strict inspection and control. Q’SAI Analysis and Research Center, a specialized Main products fromom Q’SAI food product analysis institution that focuses on residual agricultural chemicals, engages in every aspect of food product testing and analysis on behalf of major food product companies, including testing for residual agricultural chemicals, antibiotic substances, nutrient levels, and foreign substances. Because it constantly pursues improved technologies, in December 2004 the center became the fi rst private-sector institution fi nanced by a food products company to be registered as a Ministry of Health, Labour and Welfare-certifi ed laboratory. The center’s policy is to provide food safety and security in Japan and abroad through analysis and testing. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 15 CSV Priority優先課題 THE ROUTE Message Group’s CSV Report Information Health 健 康 Products and services that support consumers’ health Q’SAI CO., LTD. “Enjoy Walking until 100 COLUMN Project” Coke ON Walk Coke ON is a smartphone app The average life expectancy in Japan is 81 years for men that enables consumers to and 87 years for women. It is said that a healthy life collect one stamp for each expectancy, the number of years that a person can expect beverage purchased at to live independently in full health, is 10 years shorter than compatible vending machines that*. Q’SAI holds various events to motivate people to and then receive a drink think about healthy life expectancy with the aim of voucher when they have extending it to the age of 100. collected 15 stamps. The app In April 2018, Q’SAI held the Ashiyu Café and Nikkori now features the Coke ON Walk events at Maizuru Park in Fukuoka’s Chuo Ward as What we are doing part of the month-long campaign for the Q’SAI Enjoy Walk function, which enables Walking until 100 Project. At Ashiyu Café, participants consumers to collect stamps relaxed and enjoyed samples of kale juice and other healthy We promote healthier living by supporting ef orts for achieving certain walking drinks, as well as sweets made using kale powder, while to reduce the incidence of lifestyle disease and targets. Through rewards for soaking their feet in a warm footbath. As part of the Nikkori raising awareness of proper hydration. reaching cumulative step Walk event, an instructor led a class on stretching before goals and special events, we and after the walk, and participants of all ages had fun help consumers develop while learning how to improve their health. We comply with international standards and healthy habits. local laws and regulations within our value * Life expectancy: Ministry of Health, Labour and Welfare “Abridged chain, which extends from raw materials Life Tables for Japan 2017” Mocktails Healthy life expectancy: Ministry of Health, Labour and Welfare procurement to delivery of products to data from the “11th meeting of the committee for Health Japan 21 We are expanding the ways in which we can support a (2nd term)” consumers, and engage in rigorous quality variety of consumer lifestyles by proposing a range of control to ensure delivery of safe, mocktail (non-alcoholic cocktail) recipes for the trustworthy products. enjoyment of people who do not drink alcohol.

We provide products and services adapted to customers’ diverse situational needs in an extensive and varied product line-up.

Main health-related initiatives Enjoy Walking until 100 Project (in Japanese only) https://en.ccbji.co.jp/ https://100aru.com/ csv/quality/ Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 16 THE ROUTE Message Group’s CSV Report Information

Open communication and Hydration seminars Drink Education seminars There has been an increase in heatstroke and other In addition to correct information health incidents related to high temperatures and hydration seminars, humidity in recent years, and proper hydration during we have begun In the Coca-Cola system, we strive to provide daily life and recreational activities has become more holding Drink easy-to-understand product information to important than ever. Since we manufacture and sell Education seminars consumers so they can manage their health beverages, we work toward the prevention of to familiarize people and choose the beverages best suited to their heatstroke through providing hydration seminars for with beverage individual needs. This includes product schools, various organizations, and companies. At categories and how explanations on our website and calorie these seminars, we communicate the importance of to select the information on the front of nearly all Coca-Cola hydration and replenishing minerals, and the basics of products best Company products*. preventing heatstroke. suited to specifi c Furthermore, CCBJI conducts programs In 2018, we held 44 hydration seminars, which were occasions and for local community residents in order to help attended by around 7,000 people. Participants indicated current physical support active, healthy lives and lifestyles that they had learned when to ef ectively hydrate and condition. In 2018, we held summer school programs, through beverages. now understood the need to hydrate frequently. We will which involved Drink Education seminars and plant continue to communicate information about proper tours, at our plants in Zao, Tama, Tokai, and Kyoto. * Front-of-package calorie information is not provided for fountain hydration to as many people as possible and contribute Some 1,600 students and their guardians beverages (including products for in-cup vending machines and dispensers), returnable bottles, powdered products, diluted products, to the prevention of heatstroke and related incidents. participated. or water (non-sugar and unfl avored). At the seminars, we explained the dif erences between FOSHU and Foods with Function Claims, Front of package since these categories are sometimes confused, as well as how to read packaging labels in order to fi nd helpful information, such as ingredients, nutritional content, calories, and expiration dates. Participants commented that they had learned how to select beverages suited to their circumstances and that they want to apply what they learned in their daily lives. We will continue to provide beverage information and actively assist our consumers in selecting the products best suited to their lifestyles and needs. Back of package

Number of Number of Number of Number of participants in hydration seminars seminar participants Drink Education the seminar seminars Approx. Approx. 44 7,000 24 1,600 (+1 1 year on year) (approx. +2,000 (introduced in 2018) (introduced in 2018) year on year) Source: Coca-Cola Journey CSV Priority Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 17 THE ROUTE Message Group’s CSV Report Information Environment Aiming to Realize a “World Without Waste” Background: Key Societal Issues Featured The CCBJH Group considers empty bottles an important resource, not waste, and Topic promotes their collection and recycling. In recent years, the Coca-Cola system has used its Global focus on plastic waste role as a beverage industry leader to engage in initiatives to help solve social issues, such in oceans and rivers as the problem of plastic waste in oceans and rivers. Large quantities of improperly disposed plastic waste and other trash are fl owing from rivers into the world’s oceans and having an enormous impact on marine ecosystems. PET bottles, when properly handled, are a recyclable 2030 Packaging Vision Collaborative initiatives with the resource, so the CCBJH Group supports recycling initiatives aimed at keeping the environment healthy. In January 2018, the Coca-Cola system in Japan beverage industry and other stakeholders announced its 2030 Packaging Vision, based on the global CCBJI endorses the Soft Drink initiative to realize a “World Without Waste” announced Business Plastic Resource by The Coca-Cola Company in 2018. As a member of the Reclamation Declaration, Coca-Cola system, the CCBJH Group will further accelerate announced in November 2018 by its initiatives to realize the 2030 Packaging Vision. the Japan Soft Drink Association with the goal of achieving the 100% ef ective utilization of PET bottles by fi scal 2030, and is Collaborating with students Three core elements of cooperating on initiatives with others in the industry. For one the 2030 Packaging Vision such initiative, as of May 2019, Members of the Coca-Cola system are always looking to CCBJI had attached approximately 100,000 industry- engage in various projects in cooperation with students Whenever possible, avoid using non-renewable, designed consumer awareness stickers to vending and private organizations. One such project is the 1 petroleum-based raw materials for PET bottles. machine recycling bins in the Tokyo metropolitan and design and development of recycling bins that will Promote the use of recycled PET resin or plant-based increase the accuracy of sorting collected recyclables. raw materials, aiming for, on average, 50% or more of Keihanshin areas. Before the demonstration of these new bins, we met either in each PET bottle. with Mr. Ryobun Santo from the NPO, Think the Earth. Beach cleanup in Suma Help achieve even further improvements to recycling Mr. Santo commented, 2 rates and PET bottle/aluminum can collection in In April 2018, employees and “I hope that something like Japan by collaborating with national and local their families participated in a this new initiative, which governments, the beverage industry, and local cleanup at Suma Beach as part brings together corporations communities to build and maintain a more robust of addressing the problem of and classrooms, will become packaging collection and recycling scheme. Aim to plastics in oceans and rivers. It a catalyst to change the world and contribute to collect and recycle an amount of packaging was an excellent opportunity for student motivation and equivalent to the volume used for Coca-Cola the participants to learn that confi dence.” products sold in Japan. beaches are littered with trash Help keep communities looking beautiful through that has drifted ashore or been Mr. Ryobun Santo 3 cleanup campaigns and actively participate in tossed there, and to think about Nitobe Bunka Academy and awareness activities related to plastic waste in oceans this social problem as personal NPO Think the Earth and rivers. and closely connected to their own well-being. CSV Priority Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 18 THE ROUTE Message Group’s CSV Report Information Environment Water Resource Conservation Background: Key Societal Issues Featured Since our business relies on the use of water, an indispensable natural resource, Topic we engage in initiatives to return to nature the volume of water equivalent to what we World water demand will use in the manufacturing of our products. In 2016, we achieved our original goal of rise signifi cantly by 2030 returning to nature an amount of water equivalent to 100% of that used at our plants (total plant amount). In 2018, we increased that amount to 277%. Population increase and climate change in recent years has led to emerging global water risk. The Organisation for Economic Co-operation and Development concluded in an investigative report that there will be a large increase in Assess water source global water demand and severe water scarcity by 2030. vulnerability Water issues on this scale require international cooperation Draft and execute water Water used for manufacturing resource conservation plans and swift action to be solved.

3 Water used for 13,998,107 m manufacturing (–7.30% year on year)

Reduce & Recycle Plant Water used in products

Water used kL in products 4,196,810 The Coca-Cola system’s water cycle Water conservation Reduce Water water used reuse (+1.12% year on year) Within the Coca-Cola system, we regularly assess the agreements with local governments in water vulnerability of water sources in line with the resource resource areas conservation guidelines established by Coca-Cola Japan Proper water Replenish treatment Water usage and we develop conservation plans for the water we use at per liter of product our plants. These plans are the basis for our activities that

(WUR: Water Use Ratio) focus on reducing the amount of water used in the manufacturing process, recycling what water is used in

Forest preservation, 3.34 L/L manufacturing, and replenishing water resource areas. undergrowth thinning, tree planting, (improved 8.33% year on year) The water we use is classifi ed into two major rice fi eld fl ooding, and grassland regeneration activities categories: water used for manufacturing, and water used in products. The water used for manufacturing—specifi cally

CO2 absorbed for rinsing and cooling—is collected, processed, and then by forests reused. After proper treatment, it is eventually discharged Increase groundwater Natural water resource area into rivers. For the water used in products, we work to recharge capacity, return its equivalent to nature by contributing to better cultivate underground reservoirs, and groundwater recharge capacity through activities that return water to nature include planting trees, thinning forest undergrowth, fl ooding rice fi elds, and regenerating grasslands, as well as by cultivating abundant underground water reservoirs. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 19 THE ROUTE Message Group’s CSV Report Information

Water Water Production Replenishment source replenishment Aiming for 100% replenishment at each plant plants rate area area Replenishment At each plant, we have made long-term agreements with rate of 100% or more regional bodies, including forest cooperatives and 1 Zao Plant A 235 ha 1 1 7% Water resource area (Goal achieved) A landowners, and are carrying out activities to conserve water 2 Saitama Plant resource areas in order to achieve a 100% replenishment rate* B 1,545 ha 1 58% Water resource area 3 Iwatsuki Plant 1 for the water used in our products. (Pursuing goal) Our forest preservation activities are centered on 4 Ibaraki Plant C 1,000 ha 366% cultivating abundant underground reservoirs within the 5 Ebina Plant D 1,476 ha 670% CCBJI water resource forests, which cover a total of 6,974 6 Tama Plant E B hectares. The current focus of these activities is to increase 7 C the ef ciency of groundwater recharge capacity and to aid Hakushu Plant F carbon capture, which is the absorption and storage of CO2 8 Tokai Plant G 142 ha 100% by trees and other plants. E 2 3 4 We also want to increase awareness regarding the F 6 importance of conserving water resources and our ef orts 11 D J G toward that goal, so we hold activities through the Coca-Cola I 7 5 “Learn from the Forest” project for people in the community 9 8 and our employees and their families to participate in. H K 10 12

M 13 L Replenishment rate

14 15 277% N 16 (+2% year on year) Water Water Production Replenishment source replenishment plants rate O area area In October 2018, we signed a new 17 agreement for forest conservation with 9 Kyoto Plant H 307 ha 281% Replenishment Plants with 100% Saga Prefecture, Tosu, and Kiyama (cities 10 Akashi Plant I area replenishment in Saga Prefecture) and the Saga Eastern Forestry Association. Approx. 11 Daisen Plant J 427 ha 1,01 1% 14/17 12 Hongo Plant K 7 13 ha 1,125% 6,974 ha 13 Komatsu Plant L 146 ha 400% (+391 ha year on year) (+2 year on year) 14 Tosu Plant M 451 ha 192% 15 Kiyama Plant

Replenishment area (ha) ×10,000 16 Kumamoto Plant N 328 ha 363% ×Precipitation (m) ×Recharge * Replenishment rate (%) = × 100 17 Ebino Plant O 203 ha 506% Production output (kL) Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 20 CSV Priority THE ROUTE Message Group’s CSV Report Information Environment In order to contribute to the creation of a sustainable society, we must balance both business growth and the reduction of environmental impact. Since our business deals primarily in consumer goods, we pursue waste management and recycling initiatives, and all our business locations—including offices, manufacturing plants, and sales centers—operate under ISO 14001, comply with laws and regulations, and target the reduction of environmental impact.

The CCBJH Group’s primary environmental data

Category 2018 Unit Raw materials Sweeteners, cof ee beans, tea leaves, milk, etc. 439 thousand t Packaging PET bottles, cans, cardboard, etc. 354 thousand t Water used for manufacturing 14,071 thousand m3 Water used per 1 L of product 3.34 L/L Consumption ratios Energy used per 1 L of product 0.89 MJ/L Electricity 329,121 thousand kWh City gas 48,710 thousand m3 What we are doing Manufacturing Liquefi ed natural gas (LNG) 1 1,547 t Liquefi ed petroleum gas (LPG) 143 t A-grade diesel 2,414 kL We use water, one of our most precious Gasoline 13,291 kL Diesel 56,225 kL resources, in a responsible manner throughout Logistics Natural gas 55 thousand m3 our business activities, and work to conserve Energy use LPG 548 t our sustainable water resources. Electricity 59,361 thousand kWh City gas 150 thousand m3 LPG 237 t As part of our ef orts to help mitigate Of ces Gasoline 91 kL climate change, we monitor the Diesel 40 kL environmental impact of our corporate Kerosene 13 kL resources in order to help realize a A-grade diesel 0.2 kL Sales Electricity (vending machines, etc.) 700,396 thousand kWh sustainable society. Total amount 108,239 t Manufacturing waste Recycled amount 107,124 t We plan to reduce product packaging, Manufacturing 280 thousand t-CO2 Logistics 180 thousand t-CO2 as well as continue recycling ef orts Greenhouse gas (CO2) emissions Of ces 27 thousand t-CO2

for items such as empty containers Vending machines 295 thousand t-CO2 and vending machines. Steel cans 8,826 t Aluminum cans 17,960 t Retrieval and recycling Glass bottles 12,564 t PET bottles 35,903 t Paper, cardboard, etc. 28,163 t Vending machine recycling Number of machines processed 100,869 machines Hybrid (gasoline or diesel) 1,488 vehicles Natural gas 5 vehicles Main environment initiatives Environment-friendly vehicles Electric vehicles 46 vehicles http://en.ccbji.co.jp/ Clean diesel 25 vehicles csv/water/ Number of CFC-free vending machines 507,309 machines Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 21 THE ROUTE Message Group’s CSV Report Information

Working to mitigate processes through measures such as introducing Peak shift vending machines: cooling beverages cogeneration systems that can create both electric at night to avoid electricity use at peak times climate change power and heat from a single energy source, installing Period of high and Decrease insulation and heat exchange systems that can peak electricity demand*2 We believe that sustainable in beverage business ef ectively keep energy losses to a minimum, and growth requires balancing the CO2 emissions converting from the use of fuel oil to natural gas. Electricity reduction of environmental demand*1 impact with business growth. % -39.32 Logistics and transportation initiatives We aim to contribute to the (compared to 2010) Our logistics divisions are implementing transportation mitigation of climate change ef ciency improvements by accelerating the use of Peak shift by reducing greenhouse gas vending larger vehicles in order to improve load ratio and by machine emissions across our entire business, electricity Cooling Cooling continuing to utilize modal shift in transportation. In 3 including in the procurement of materials, use ON OFF* addition, we are undertaking greenhouse gas production, logistics/transportation, and sales. emissions reduction throughout the Group by improving the ef ciency of shipping routes to our 0:00 7:00 8:00 22:00 23:00 business partners; rigorously implementing eco- *1 Power company power consumption rates on days with the highest demand driving; increasing the replacement of existing fl eet in summer 2012. vehicles with electric, hybrid, and other fuel-ef cient Source: Compiled from published data of power companies. Disclosure of greenhouse gas emissions *2 This refers to “time periods for eliminating fl uctuations in electricity demand” vehicles; and switching to the use of smaller vehicles designated in the revised Act on the Rational Use of Energy, which went into We recognize the mitigation of climate change as a for sales representatives. ef ect in April 2014. crucial issue to consider throughout the course of our *3 Standby power consumption required for the sale of products occurs even if the cooling system is shut of during the day. Depending on location, peak shift business activities. As such, we transparently disclose Sales initiatives vending machines may be set so that the cooling system is shut of at night and corporate greenhouse gas emissions, of which CO2 is cooling takes place during the day. The cooling system may also operate during To reduce the energy consumption and CO2 emissions the day after products are restocked. a primary example, and share information with our of our vending machines (including coolers and drink many stakeholders about the overall state of dispensers), we continuously work toward the greenhouse gas emissions, the progress of development and introduction of new equipment. countermeasures, and other topics so that this can CFC-free vending Our “peak shift” vending machines, which we lead to further emissions reduction. machine ratio have been deploying since 2013, shift electricity Approx. consumption used for cooling to nighttime, which can For information on Scope 1, 2, and 3 CO2 emissions results, please refer to the link below. reduce power consumption during peak daytime 78 % https://en.ccbji.co.jp/csv/water/carbon/emissions.php hours by a maximum of 95%. The energy-saving specifi cations of these machines allow them to (+10% year on year) provide cold products 24 hours a day, even if the Production initiatives power for cooling is completely stopped for as long as At our plants, we are actively 2018 EUR 16 hours. Number of adopting new processes (Energy Use Ratio) We are also progressing with our plan to eliminate CFC-free vending and the latest technology per liter of product machines, including peak the use of chlorofl uorocarbon (CFC) refrigerants in shift vending machines for improving energy our vending machines. ef ciency. We are striving 0.89 MJ/L Approx. to reduce the greenhouse gases produced and fuel oil (-0.97% year on year) 507,000 used in our manufacturing Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 22 THE ROUTE Message Group’s CSV Report Information

Building a recycling-oriented Increasing sustainable packaging Bottle-to-bottle recycling Under the shared global concept of sustainable As a part of achieving the aims of The Coca-Cola society packaging, we develop and use packaging within the Company’s “World Without Waste” global initiative, Coca-Cola system that is specifi cally designed to be we are taking part in the bottle-to-bottle recycling We strive to reduce environmental impact by environment-friendly and also easy to use. We have project to convert used PET bottles into product- collecting and recycling as much as possible of the introduced packaging like the ecoru shiboru bottle, ready PET bottles. Bottle-to-bottle recycling makes it waste generated throughout a product’s life cycle. which is easy to twist and fl atten after drinking, to possible to manufacture PET bottles with a lower Through various initiatives such as reducing waste reduce both environmental impact and energy use. environmental impact. generated by production, using inventory controls By the year 2030, we are aiming to eliminate non- to reduce product disposal, making containers renewable petroleum-based raw materials whenever easier to recycle, and using environment-friendly possible from our PET bottles. We will pursue the use containers, we are contributing to the of recycled PET resin and plant-based raw materials, From development of a sustainable society. with the goal of using, on average, 50% or more of bottle to either in each PET bottle. bottle

Recycling waste materials Recycling At our plants, we sort and rate of waste Label removal from plants and plastic recycle waste materials granulation The bottle generated by production to Approx. is cut into Twist about 8 mm2 continuously achieve zero flakes Cap removal % The flakes are sorted 99.1 1 based on density, and waste emissions (a waste the cap plastic is removed (-0.83% year on year) by using the diference material recycling rate of over in buoyancy 99% at all 17 plants). Cof ee grounds and tea leaves constitute the bulk of our generated waste materials, and we An ecoru shiboru bottle, which is easy to twist and fl atten have achieved 99.88% and 100% recycle rates for Washing The flakes are them, respectively, as fertilizer or animal feed. cleansed in order to For example, the used tea leaves that result from remove impurities the production of Sokenbicha at the Zao Plant are PET bottle raw material combined with byproducts, such as leftover whey from the manufacturing of cheese at the Zao Dairy Center, and used as “eco-feed”* for Zao Sosei beef cattle. Working with the local government and members of academia, the Tokai Plant also plans to pursue research into a way to ef ciently use cof ee grounds and tea leaves.

* Food scraps that become feedstuf for animals. The Japanese Ministry Formed into brand-new bottles! of Agriculture, Forestry and Fisheries is actively promoting eco-feed to increase the self-suf ciency rate for feedstuf . Source: Coca-Cola Journey CSV Priority Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 23 THE ROUTE Message Group’s CSV Report Information Community Welcoming Consumers from Overseas Background: Key Societal Issues Featured As the number of tourists and foreign residents in Japan has increased in recent years, Topic the CCBJH Group has been taking part in business initiatives for the development of Toward a future of regional areas. We are also promoting the Olympic Movement in advance of the Olympic multicultural coexistence Games Tokyo 2020. This currently includes measures to help international customers conveniently purchase products they trust. Given the outlook for long-term population decline in Japan, the Japanese government has strengthened policies that support the acceptance of foreign nationals in society. In addition, an increase in the number of foreign visitors to Japan is expected ahead of the Rugby World Cup 2019 and the Olympic Games Tokyo 2020. Multilingual Providing multilingual POP support on vending machines and elsewhere is necessary communication materials to eliminate inconvenience for people whose native language is not Japanese. We have prepared multilingual POP materials (in-store supplementary materials) to help consumers from many nations conveniently purchase products they trust. Popularization of JOC Olympic Coordinating with our business partners, we will of er materials at restaurants so that consumers from overseas support vending machines can easily order and enjoy Coca-Cola products. On our As part of providing support for athletes aspiring to vending machines, information is also displayed in multiple compete in the Olympic Games Tokyo 2020 and as another languages and, with the help of a smartphone, product way to promote the Olympic Movement, the Coca-Cola information can be accessed in up to 15 languages. system members are working to install and popularize Japan We aim to expand the number of multilingual vending Olympic Committee (JOC) support vending machines. machines by 2020. Development of visitor-friendly A portion of the proceeds from JOC Olympic support vending machines vending machines is Previous vending machines were not designed in a way donated to assist that took the needs of non-Japanese consumers into athletes through the consideration, even in locations with many tourists. JOC. By the end of Accordingly, we developed a vending machine that makes 2018, 2,068 machines it easy for consumers from overseas to select and purchase had been installed in beverages. We installed the fi rst such machine in Asakusa, our sales area. a historic district that attracts many overseas visitors. These vending machines are covered in appealing, original Japanese-style art and display information in multiple languages. The product line-up includes Coca-Cola and Fanta, brands familiar to overseas consumers from many countries, as well as beverage fl avors that are exclusive to Japan. Information can also be viewed on local tourist attractions by scanning a QR code, which was added to help consumers have an even more satisfying experience. CSV Priority Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 24 THE ROUTE Message Group’s CSV Report Information Community Energizing Communities through Sports Background: Featured Key Societal Issues Topic Concern over children’s decreasing health and fi tness in Japan In a time of signifi cant change to how children live and form lasting habits, opportunities for daily physical activity, through playing outside or sports, are decreasing, and it is said that physical fi tness and athletic ability in younger generations is declining. Decreased physical fi tness in today’s children could eventually mean a decline in the fi tness of the entire population and there is concern regarding the ef ect of that on Japan in the future.

The CCBJH Group aims to create shared value by Principal community activities in 2018 contributing to the revitalization of regional economies through business, while also staying mindful of community issues and undertaking a wide variety of specifi c support Coca-Cola Coca-Cola activities. In particular, we manage two corporate sports Red Sparks rugby team Red Sparks fi eld hockey team teams, the Coca-Cola Red Sparks men’s rugby team and the Coca-Cola Red Sparks women’s fi eld hockey team, who not only deliver game-day thrills to a large number of Held 12 sports clinics with a total attendance of 1,280 participants Held 4 sports clinics with a total attendance of 220 participants (Aichi, Kanagawa, Kyoto, and Nagasaki Prefectures) local fans but also create opportunities for kids to be active Held 16 rugby classes with a total attendance of 2,440 participants Participated in the Love Earth Cleanup 2018 in Fukuoka City Held 6 fi eld hockey classes with a total attendance of 475 participants and improve their skills in a safe way through educational Participated in the FOR CHILDREN Japan Rugby Top League Participated in LECT sports event (talk show, fi eld hockey experience) sports clinics. Both teams are also proactive participants in charity activity (Fukuoka Children’s Hospital visit) (Joint event with the Hiroshima Izumi Maple Reds handball team in a shopping center) local events as part of building vibrant communities and a Participated in the 2018 Hokkaido Eastern Iburi Earthquake charity Participated in the Hiroshima Zero Litter & Clean Walk Campaign society in which everyone can live healthy and active lives. mochi-pounding event Participated in the 38th Hiroshima International Peace Marathon Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 25 CSV Priority THE ROUTE Message Group’s CSV Report Information Community Plant tour initiatives Environmental education programs CCBJI considers plant tours a method of direct We hold environmental education programs in communication with stakeholders, especially consumers various locations in order to raise awareness and business partners. We of er tours of the Zao Plant about the importance of conserving water and (Miyagi Prefecture), Tama Plant (Tokyo), Tokai Plant (Aichi preserving nature. Prefecture), Kyoto Plant (Kyoto Prefecture), and Ebino In 2018, local community members and Plant (Miyazaki Prefecture). Around 167,000 visitors toured employees participated in water conservation these plants in 2018. In order to remain a trusted partner to activities in 13 of our plants’ water source areas our stakeholders, CCBJI will continue to communicate through the Coca-Cola “Learn from the Forest” information in an easy-to-understand manner about its projects. At Coca-Cola “Learn from the Forest” activities and The Coca-Cola Company’s production projects held in May and September in processes and food safety initiatives, so that consumers Nakanohou, Gifu, a total of 112 employees and can feel confi dent in choosing The Coca-Cola Company’s their family members thinned forest undergrowth, products. helped plant rice fi elds, and tried woodworking What we are doing while learning about the indispensable nature of water resources. We also contribute to the healthy physical and We help address local community issues We engage in various community mental development of youth by providing a initiatives at our plant! through encouraging interest in sports and place to experience farming, nature, and

the arts and through supporting the healthy COLUMN Let’s Enjoy the Environment communal living through supporting the NPO development of young people. in a Foreign Language 2018 Ichimura Nature School. In 2018, during an 8-month period, 58 elementary school (from 4th We strive to be a trustworthy partner to In March 2018, with the cooperation of students from grade) and junior high school students (up to the the Kyoto University of Foreign Studies, we held the stakeholders of all generations by conveying 2nd year) spent their weekends learning “Let’s Enjoy the Environment in a Foreign Language 2018” leadership skills in a natural setting in Tosu, Saga information about our production processes event at the Kyoto Plant. Parents and children learned Prefecture. The program has received a and food safety initiatives in an easy-to- about environmental problems while becoming familiar commendation from Saga Prefecture and won understand manner through our plant tour with English, through a fun program consisting of a skit, acclaim from those in the community and beyond. programs. a fi ltration experiment, and other activities devised by the university students.

Along with creating emotional connections through our company sports teams, we develop activities specifi c to local regions, and contribute to the healthy development of children and vibrant local communities.

Main community initiatives https://en.ccbji.co.jp/ Children helping to plant rice Ichimura Nature School fi elds at a Coca-Cola “Learn students harvesting their own csv/township/ from the Forest” project vegetables Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 26 THE ROUTE Message Group’s CSV Report Information

Contributions to local Regional contributions using vending machines emergency shelters during a disaster, the Group In preparation for large-scale disasters, the CCBJI provides beverages, free of charge, from vending communities through business Group has entered into agreements with local machines at city of ces and schools. At the end of governments within our distribution area to provide 2018, we had made agreements with 586 local The CCBJH Group believes that thriving emergency supplies during a disaster. In addition to governments. communities are a prerequisite for sustainable giving priority to the supply of drinking water to business activities and conducts a wide range of social activities in local communities based on this belief. Through our core business, we engage in activities such as supporting food banks and collaborating with local governments on CCBJI Main Plant (Mihara City, Hiroshima Prefecture) agreements to supply drinking water to COLUMN emergency shelters during disasters. By being What actions did CCBJI take during the torrential rains in 2018? involved in these ways, we are forging deeper ties with the community and expanding relationships. In July 2018, Japan was struck by a The rain had caused damage to the partners to explain the dif cult situation concentration of torrential rains, homes and vehicles of many employees and gain their understanding, but we especially in western Japan, which and because of the time it took for the also put together a support network infl icted damage on many facilities power and water supply to be restored, that allowed us to distribute products including those of the CCBJI Group. it was more than a week before from other areas of the country. During this natural disaster, CCBJI put employees were able to return to work. Donating products through food banks its business continuity plan (BCP) into During the intense heat of summer, A food bank is an initiative or group that provides action. While quickly establishing a while exercising proper precaution food—which was disposed of but is still fi t for framework for restoring its main against heat exhaustion and serious consumption—to people and organizations in need. operations and collaborating with injury, employees rallied together to We have entered into partnerships with food banks related divisions, CCBJI moved forward carry out the restoration work. such as Second Harvest Japan, which was the fi rst to systematically deploy the necessary Furthermore, because the water supply corporate resources. to the surrounding area was interrupted food bank in Japan and is a member of the Alliance As the record rainfall continued, a for an extended period of time, of Japan Foodbanks, and the Food Bank All Japan nearby river’s banks overfl owed and manufacturing water that remained in Association, to carry out initiatives regarding food inundated the Hongo Plant, halting the supply tanks and emergency water donations. In 2018, we started donating to new food operations at manufacturing facilities delivered from nearby plants was Providing local residents with water for their banks in Osaka and Kagoshima prefectures and and automated warehouses. As the distributed to people in the neighboring daily lives supplied beverages through 18 organizations to impact spread, af ecting plants, areas, and CCBJI provided a location approximately 1,100 institutions including social warehouses, and the logistics function for the Japanese Self-Defense Force to welfare facilities and facilities that provide meals for for the region, the fi rst action was to set up the water distribution center. children with busy or absent parents. Because we put in place an emergency response Damage to equipment, other want to help in any area that we can, while also headquarters. We simultaneously set up property assets, and inventories, along a response of ce on-site and, the very with disruptions to the transportation ensuring our reduction of wasted stock, we are next day, dispatched managers from network, had a major impact on product continuing to develop our product donation activities. the HR, General Af airs, and SCM supply and distribution. There was an functions to coordinate actions at the increase in demand due to a heat wave, plant. CCBJI also began to provide food which caused continual product and personal necessities to employees. shortages. We visited our business Employees hard at work on the restoration Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 27 THE ROUTE Message Group’s CSV Report Information

Customer Realizing customer satisfaction Ef ective response to customer complaints Satisfaction The Customer Contact Center, which operates under the slogan “Good We conduct questionnaires for customer contact makes everyone consumers who have lodged happier,” is the point of contact for all complaints, and provide surveys to customers of the CCBJH Group. We evaluate the quality of our customer have put in place a system by which response and consumers’ intention the center receives opinions and to purchase Coca-Cola products in Customer satisfaction initiatives requests from customers and promptly the future. For many consumers https://en.ccbji.co.jp/ relays their content to regional whose complaints have been csv/customer/ representatives, who can respond addressed, their interest in swiftly. The center’s Voice of Customer (VOC) section shares opinions, requests, purchasing Coca-Cola products complaints, and other feedback received from customers within the Group to remains unchanged or even inform initiatives aimed at improving products and services. We comply with increases according to our survey. ISO 10002 (JIS Q 10002)*, which covers the handling of customer complaints, For our customers throughout our customer response processes and management system. Consumer *A standard issued by the International Organization for Standardization (ISO) that provides guidance on the willingness to In accordance with our corporate philosophy, THE process of handling complaints related to products and service quality. ISO 10002 does not involve third- party certifi cation. While any organization can self-evaluate its compliance, Coca-Cola system members in repurchase ROUTE, at CCBJH Group we focus on all our consumers Japan declare their compliance after receiving an independent compliance audit. Coca-Cola and customers to become their trusted partner. The products Customer Contact Center plays a central role in Customer response process developing processes with which to meet the 89% expectations of our customers. Customer Relevant Coca-Cola Japan Contact Center departments

VOC section Customer Analysis Combines those who answered that their Inquiries/complaints feedback desire to repurchase was unchanged, had Investigation increased, and was unchanged plus they Customers Cooperation would recommend the products to others Countermeasures/ Respond discussion Regional sales Survey method: A questionnaire via SMS text representative Customer consultation by topic Development/ message sent to consumers who had lodged improvement/remedy complaints (Survey period: March to Improve/remedy products and services December 2018)

Complaints Inquiries 17% 83% Customer Contact Center initiatives Customer Products & Products & containers 9% VOC containers 44% To ensure customer satisfaction, the customer service representatives who answer inquiry response rate Machinery 7% Machinery 1 4 % telephone calls take care to provide responses that are accurate and attuned to Advertising Advertising customer needs. To increase response quality, the Customer Contact Center has 1 % 1 4 % & services & services introduced response quality assessment by an external organization, and each 94 % Other 1 1 % customer service representative is constantly working on skills improvement. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 28 THE ROUTE Message Group’s CSV Report Information

Quality The KORE management system KORE Quality Management System Assurance for safeguarding quality

In the Coca-Cola system, we manage operations Procurement using KORE (Coca-Cola Operating Requirements), Raw materials are only sourced from suppliers certifi ed by the Global Food our globally integrated, unique management Safety Initiative (GFSI). system, and manage product quality under rigorous standards imposed by KORE. KORE Quality assurance initiatives covers a comprehensive range of standards in the areas of quality, food safety, the environment, and https://en.ccbji.co.jp/ Beverage base preparation industrial safety and health and is implemented in csv/assurance/ Beverage bases undergo strict each process from procurement of raw materials quality inspection using the latest analysis equipment (physicochemical to manufacturing, logistics and transportation, and Ltd. Co., (Japan) Coca-Cola and microbiology testing, etc.). sales, until our products are delivered to consumers. In addition to meeting the requirements of laws and regulations, and Quality assurance policy standards from the International Organization for Manufacturing Standardization (ISO), KORE includes even more To deliver reliable quality, we endeavor to ensure product safety We seek to provide all consumers with safe products rigorous standards.* by striving to comply with quality and high-quality services. This goal motivates us We have a certifi cation organization measure management systems and improve throughout our operations. During the entire process performance against various requirements at least our quality management technologies. from the procurement of materials, through once a year as a means of confi rming the integrity manufacturing, logistics, transportation, sales, and of operations. Fair and honest management of Logistics and transportation service, we work tirelessly to secure and improve operations within the Coca-Cola system is We ensure careful handling of the customer-centric quality. guaranteed by the addition of evaluation by an products manufactured at our plants external third party. We rigorously incorporate so that they are delivered in excellent condition. KORE management standards in all business processes for which the CCBJH Group is responsible, and constantly strive to ensure and improve quality from a customer-centric Sales (retailers and vending machines) CCBJH Group CCBJH perspective. We work to maintain merchandise Basic principles for quality control at retailers and vending machines to ensure that we provide Each of our departments is aware of its roles * Concerning quality, we comply with ISO 9001; concerning food consumers with products that are safety, we comply with FSSC 22000; concerning the environment, always safe, trustworthy, and fresh. 1 and responsibilities and implements we comply with ISO 14001; and concerning industrial safety and customer-driven quality control. health, we comply with OHSAS 18001 (currently converting to ISO 45001). We have acquired these certifi cations at all our plants. We We will perform our daily work with the top have also acquired ISO 14001 certifi cation at all our sales centers Customers 2 priority on “quality.” and of ces. We integrate opinions, inquiries, and other feedback from customers with Each one of us keeps in mind and thinks improvement activities. 3 about “quality” at all times and acts to enhance our brand value. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 29 THE ROUTE Message Group’s CSV Report Information

Ethics and Ethics & Compliance Reporting Hotline Compliance We have set up the Ethics & Compliance Reporting Hotline (a dedicated email address and telephone number), with points of contact in-house and at an external legal counsel’s of ce, to accept requests for consultation about matters that confl ict with, or may confl ict with, the Code of Business Conduct and Ethics. Anonymous consultation is available, and we are striving Ethics and compliance initiatives to raise awareness of the hotline and create an https://en.ccbji.co.jp/ environment that facilitates consultation by a variety of csv/compliance/ means, such as issuing ethics and compliance bulletins and posting the hotline points of contact on the Group intranet. Furthermore, we value the cooperation of employees who report issues that need to be addressed, and any form of retaliatory measures against reporting Ethics and compliance policies employees has been made a violation of the Code. We confi dentially investigate any problem requiring In order to be a sustainable business, the CCBJH Group examination under the Code, determine whether there must fulfi ll its social responsibilities and every individual has been a violation of the Code or laws and regulations, employee should always act with dignity. As part of this, and take any appropriate corrective measures. we have enacted the Code of Business Conduct and Ethics, and promote a corporate culture that emphasizes ethics and compliance. Compliance education An ethics and compliance seminar The Code of Business Conduct and Ethics covers fi ve areas: acting righteously with dignity, right conduct, The standing CCBJH Group Ethics & Compliance respect of human rights, dealing with stakeholders, and Committee, which comprises members of the confl icts of interest. All employees are expected to management team, meets on a regular basis and takes observe all laws and regulations as well as the Code, the lead in promoting activities that further foster and internal rules, and workplace principles. They are also inculcate high ethical standards and compliance expected to act with integrity and honesty, to think awareness among the Group’s employees and encourage before acting, and to seek guidance when in doubt. a corporate culture that places importance on ethics and CHECK! compliance. These initiatives include the implementation Violations of the Code of Business Conduct None of awareness and education activities, operation of the and Ethics WEB Coca-Cola Bottlers Japan Holdings Group Code of Business Conduct and Ethics Ethics & Compliance Reporting Hotline, other responses to compliance-related incidents, and consideration and Payment of important environmental or https://en.ccbji.co.jp/vision/pdf/en/ ecological fi nes or penalties over the None CCBJIgroup_Ethics_en.pdf implementation of measures to prevent the reoccurrence past four years of incidents. Political contributions WEB Basic Policy for Suppliers Donations or spending for political activities/ None https://en.ccbj-holdings.com/corporate/ groups, lobbyists/lobbyist organizations, governance/pdf/supplier_en.pdf trade association, or other tax-exempt groups convene theCrisis Management Committee ifneeded. (IMCR) protocols, andthepresident of CCBJH may system’s Incident ManagementandCrisis Resolution initial response andsolutions usingtheCoca-Cola occurs, the Group gathers information and discusses an audit department isthethird lineofdefense. Ifanincident the second lineofdefense. Assurance by theinternal administrative duties for the committees listed above, is department incharge ofERM* the Group’s fi the abilityto make autonomous decisionsandserve as activities. Those responsible for riskmanagementhave AllCCBJH Group companies anddepartments implement PDCA cycles and engage in risk prevention signifi plan (BCP) when a wide-area disaster occurs that which deliberates and initiates the business continuity occurs; and3)theDisaster Countermeasures Task Force, leads theresponse whenamajorproblem oraccident the CrisisManagementCommittee, whichdecidesand and deliberates and decides risk prevention activities; 2) Management Committee, which formulates basic policies, The CCBJH Group has setup1)thestanding Risk Risk managementsystems cantly impactsbusiness activities. rst lineofdefense. Riskmonitoring by the Management Risk management initiatives https://en.ccbji.co.jp/ Risk csv/risk/ 1 , whichhandlesthe 1 Enterprise RiskManagement: Aprocess usedinthe overall management ofany riskthatcould occur inthecourse ofbusiness *1 large-scale disasters Response to large-area, Business Continuity Plan(BCP) Task Force Countermeasures Disaster 2. Risks related to securing and developing human resources 23. 22. 1. 2 20. 9. 1 8. 1 7. 1 6. 1 5. 1 14. 3. 1 2. 1 . 1 1 10. 9. 8. 7. 6. 5. 4. 3. 2. 1. List ofriskstheCompany identifi Temporary Risks related to information security Risks related to natural disasters Risks related to weather Risks accompanying dependence onThe Coca-Cola Company Risks related to the business of af Risks related to litigation Risks related to business integration Risks related to product safety and quality Risks related to tax reform Risks related to alcoholic beverages Risks related to relevant laws and regulations Risks related to trademarks and trust in brand Risks related to water resources Risks related to changes in the retail environment Risks related to the supply chain Risks related to infrastructure investment Risks related to economic conditions Risks related to changesinconsumer preferences andhealthconcerns Risks related to competition and changes in markets Risks related to increased costs of raw materials, etc. Risks related to retirement benefi Risks related to changes in assets Business Initial restoration restoration response of business IMCR Process Emergency response plan (EP* manufacturing processes Product supplyand Continuity Plan(BCP) Implementation of the Business

Collaboration among support team andIMCRteams between BCPlogistical Consultations on responses Countermeasures Task Force Establishment oftheDisaster Confi of employees Confi delivery withintheCoca-Cola system Order confi demand plan,andlogistics plan capacity forecasts, supplyand Develop demandandproduction business recovery Start disaster recovery support and Information gathering the Coca-Cola system members Contents rmation of damage status rmation of the safety Management rmation, shipment, and Risk Corporate Philosophy Philosophy Corporate THE ROUTE t obligations liated companies 2 ) es prevention ofrisks Formulation of basic policies and Enterprise RiskManagement(ERM) Risk ManagementCommittee A C activity Review results Department incharge ofERM Internal auditdepartment Specify risks departments Execute risk Message prevention activities Business Top Top Evaluate risks prevention Develop plan risk D P Group’s CSV The CCBJH CCBJH The risk management. and earnestly and strategically engaging in integrated MembersoftheCoca-Cola system confi importance ofroutinely engaginginriskprevention, Japan andtheCoca-Cola bottlers inJapan. Bottling Company, for theleadershipofCoca-Cola Gerold Knight,ChiefRiskOf Company, heldanERMGlobalWorkshop ledby Mr. The CCBJH Group, in cooperation with The Coca-Cola ERM GlobalWorkshop The 2nd line 2nd The ERM linesof The 3rd line 3rd The The 1 st line st 1 The defense CSV Progress Report *2 Emergency Planning accidents Response to seriousincidentsor Crisis Resolution (IMCR) Incident Management& Crisis ManagementCommittee cer of Coca-Cola Hellenic CCBJH Group CCBJH Implementation of countermeasures Information Risk assessment Initial response assessment Initial risk Recovery rmed the 30 Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 31 THE ROUTE Message Group’s CSV Report Information Human Rights The CCBJH Group’s ideal employee image and Employee THE ROUTE A person who aims to enhance the corporate value of the CCBJH Group and is capable of contributing to the achievement Job Satisfaction We shall set up a remuneration system of organizational goals through a customer-centric perspective according to roles and results and treat by being proactive, learning on their own, and continuously employees fairly and justly. accomplishing self-growth by actively embracing challenges.

We shall set up a remuneration system Accept various opinions and points of view, engage Mindset that will lead to the enhancement of in constructive discussion, and create new value Basic motivation for frontline employees who Be professional and constantly hone one’s knowledge Abilities of er value and services to customers. and skills Initiatives promoting respect for human policy Accomplish duties in a timely manner with sincerity and Behavior rights and employee job satisfaction We shall establish an attractive, career- enthusiasm, and proactively fulfi ll one’s responsibilities oriented employee benefi t system that https://en.ccbji.co.jp/ promotes high job satisfaction, free of csv/humanrights/ worry or anxiety, for members of the CCBJI Group.

CCBJI corporate direction

HR system HR development To foster a consistently fair and equitable system that builds a sense of unity, and to recruit and retain people The CCBJH Group conducts various programs that capable of promoting overall sustainable growth, the support employee skills development according to their CCBJI Group has introduced an integrated human career stage, including four types of training: mandatory, resources (HR) system in terms of job grades, voluntary, selective, and overseas. performance evaluations, compensation, and benefi ts. Mandatory training covers the skills necessary to Based on the corporate philosophy of THE ROUTE each level of a position, while voluntary training provides Overseas training and the elements that comprise the Group's direction— opportunities for employees who want to boost their Organize for Growth; Operate as One Enterprise; System careers by attaining the skills and knowledge needed to Mindset; Industry Leadership—the Group has set forth a increase their overall abilities. Selective training is for Performance evaluation system basic policy pertaining to the HR system. Using a role- nurturing the next generation of leaders, and overseas based and results-oriented approach, we aim to increase training involves visiting The Coca-Cola Company The CCBJI Group’s performance evaluation system has employee motivation and promote the growth of the headquarters, international bottlers, and foreign markets. the twin purposes of improving business results and organization and individuals. We also provide employee The Group provides correspondence courses and nurturing employees. The system is built upon evaluating benefi t programs aimed at enabling employees to feel e-learning materials as part of its employee self-study work-related results and assessing whether daily conduct secure in pursuing long-term careers with the Group. program, and holds various career-design courses matches what is expected of a CCBJH Group employee. according to age group. Supervisors and veteran staf In order to properly evaluate activities and support members also conduct daily on-the-job training. In employee growth, each employee has discussions addition, the Group encourages employees to regularly with a supervisor throughout the year to ensure periodically discuss their career plan with their manager. that he or she understands the content of evaluations. As employees consistently demonstrate skilled performance, the company will continue to reward them appropriately. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 32 THE ROUTE Message Group’s CSV Report Information

Human rights initiatives In cooperation with our health insurance association, we strive to prevent the onset and aggravation of Respect for human rights is the foundation of our illnesses and to help maintain the physical and mental Medium- to long-term vision for diversity business activities. In addition to observing international health of employees. For employees who actively seek to human rights principles, which call for the promotion and improve their health by changing their lifestyles, we have Under diversity and inclusion policies, protection of those rights, the CCBJH Group has set up an internal health of ce to analyze the results of the CCBJH Group aspires to be a strongly instituted a human rights policy and engages in employees’ physicals and stress checks jointly with our competitive company that functions with excellence and dignity by utilizing diversity for awareness activities to contribute to the resolution of health insurance association. From these results, we are innovation and reform. human rights issues and establish respect for human constructing our own scientifi cally based health risk rights in the workplace. management system. We are supporting the health of We raise awareness of human rights by holding each employee through internal health business initiatives. human rights meetings in every department of the Group, Women in Short- and active roles medium-term and work to both ensure correct understanding of CHECK! initiatives general human rights problems and foster a culture that respects diversity through sharing information via level- Lost Time Incident Rate (LTIR) 0.23 specifi c training, e-learning, and the company intranet. Foreign People with We aim to create a vibrant and healthy workplace workers in disabilities in active roles active roles environment by cultivating employees who think of Diversity and inclusion initiatives Respect human rights issues on a personal level, are considerate for human of others, and are capable of viewing situations from The CCBJH Group has established a policy on diversity rights Long-term other perspectives before taking any actions. and inclusion based on the corporate philosophy of THE initiatives ROUTE. It engages in diversity initiatives to promote the

acceptance of diverse views and values, without regard LGBTQ Occupational safety and health initiatives to individual attributes, in order to produce further employees Seniors in innovation. The Group also seeks to implement stronger in active active roles roles Based on the philosophy that “health and safety come diversity management under an international fi rst,” protecting the safety and health of all CCBJI management structure that includes three female Group employees, creating vibrant workplaces, directors. enhancing productivity, and fulfi lling corporate social Our activities for the medium- to long-term period responsibility form the Group’s foundation for business will focus on expanding opportunities for women and Selection as a 2019 Semi-Nadeshiko Brand continuity. The Group works to create and nurture a people with disabilities. We will also provide opportunities culture of safety based upon mutual trust and by putting for LGBTQ employees, seniors, and foreign workers, and Since 2012, the Ministry of Economy, Trade and Industry principles into practice. create a workplace environment that enables employees and the Tokyo Stock Exchange have selected listed To prevent emergencies and accidents, we rigorously to demonstrate their full potential through varying and companies—those that make outstanding ef orts to engage in occupational injury management and vehicle more fl exible work styles, including programs that encourage women’s success in the workplace—for accident management under the key concepts of support various types of work-life balance and telework recognition as Nadeshiko Brands. In 2019, CCBJH and eliminating unsafe behavior and eradicating unsafe opportunities. CCBJI were selected as Semi- situations. We will improve overall workplace safety Nadeshiko Brands, companies awareness and inform every employee of safe behaviors recognized for ef orts nearly semi and safe driving practices, and work toward achieving equivalent to those of zero emergencies and zero accidents at each workplace. Nadeshiko Brand companies. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 33 THE ROUTE Message Group’s CSV Report Information

The CCBJI Group is promoting “smart work,” a concept that A fulfi lling career as part of Human Rights and Employee Job Satisfaction takes advantage of employees’ diverse work styles and increases ef ectiveness and productivity, while also contributing a rewarding and fruitful life to employee job satisfaction. The Group is also pursuing system Roundtable Discussion: reform and further implementation of information and Zhang: My team has been proactively making use of the communication technology (ICT). Employees from various fl extime system, satellite of ces, and the ability to work at Smart Work departments gathered to discuss how smart work is being used, home in a way that fi ts the schedule of each member. If current utilization issues, and future developments. team members stay at work late, then they adjust their responsibilities and come into the of ce later the next day, or when they are out of the of ce they may work at a nearby sales branch during free time. Because every project has a dif erent workfl ow, it is vital to have an environment that promotes working remotely. Some people have mentioned that a change of location can be refreshing and good for motivation, which, I think, leads to higher productivity.

Akimoto: I have a young child, so if I get an emergency call from the pre-school, I make use of the hourly system for annual paid leave. Using that, I can solve the issue without taking a half day of , which is much more convenient. I also appreciate having childcare leave, because all my annual paid leave used to go toward taking care of my child, but thanks to this system I can use some days of for myself.

Choosing a fl exible work style is the fi rst step. Something like telework can improve the productivity of an Coca-Cola Bottlers Japan Inc. entire department. Seiya Ishii Ariha Kawai Makiko Akimoto Teng Zhang

Com. & KAM BP Section Commercialization Section SCM Planning & Control Section Inbound Planning Department HR Business Partner Commercial Planning & Senior Group Division Marketing Division Commercial Department Operation Division SCM Strategy Department Commercial HR Division Commercial Strategy Management HR & General Af airs SCM Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 34 THE ROUTE Message Group’s CSV Report Information

one uses it. I am in a position where I can support people Ishii: By listening to those in the workplace and refl ecting We need to be realizing a in sales from the HR side, but I feel that the system’s their opinions in the system, it will become easier for work-life balance that fi ts usage dif ers by department. others who use the system to voice their needs. We need every individual. By more of those kinds of examples. Because CCBJI is a employing this system well, Kawai: Sometimes it just depends on how a supervisor company that values people, I expect reform to progress I have been able to secure thinks, right? The concept will catch on if management further and I look forward to the day when our company time for myself even while takes the lead in infl uencing awareness and promoting is one where anyone is happy to work. raising a child. work ef ciency. * An initiative related to work-style reform from the Tokyo Metropolitan Government that encourages staggered work times in order to avoid the Akimoto: For those in bottling plant jobs, for example, peak of commuter rush hour on public transit. working from home and shorter hours are dif cult Kawai: I have a lot of interaction with teams outside of systems to implement. And while there is an increasing the main of ce and most of my meetings are held via number of places where women can make full use of their teleconferencing. As long as we are not speaking for the talents, the challenge is to create an environment in fi rst time, we do not always have to meet face to face to which they can advance their careers while also I look forward to the day make progress. And given how long it takes to travel, this becoming mothers and raising children. when our company is is more ef cient by far. Also, when I want to just focus on one where anyone is my work—I make more progress at home—I adjust my Kawai: All sorts of things can occur in life. For instance, happy to work. schedule to include working from home. how does someone balance caring for family members, or just being available to look out for them, with job Ishii: Working from home can be better for some people responsibilities? For situations that are not covered by than others, depending on someone’s task and the current employee support system, we need a work personality. But by using it well, it is defi nitely possible to environment that allows fl exibility and the ability to select work more ef ectively. It can lighten one’s physical and what fi ts best. mental burden too, so I think it can help contribute to better work-life balance. Zhang: It can be hard to make changes all at once, but it Work-style reform at the CCBJI Group is important that reforms never stop. Public initiatives, like Major initiatives "Jisa Biz,"* that connect with businesses are great too. CCBJI is building a better work environment, with an Not just a change in work style, emphasis on shortening working hours, and has become but a new way of thinking a special cooperative organization supporting "Telework Days," which is sponsored by the national government and cooperates with the Jisa Biz initiative from the Tokyo The ideal environment is Metropolitan Government. We promote coming straight Zhang: I have always thought that work-style reform one in which work styles to or returning home from a third-party location, working really means “mindset reform.” We have to change our can be chosen to fi t the job at home or at satellite of ces, and using a work/break way of thinking and build a structure in which we support or any kind of situation interval structure. We have also introduced a fl extime each other, so that we can move away from the idea that at any time. system, an hourly system for annual paid leave, and working overtime is the best way to show dedication. company-mandated annual days of . In addition, we are proceeding with the introduction of ICT, such as a sales Ishii: Even if we are very aware of smart work, the support system using tablets and smartphones, in order concept will not take hold if those around us are not. And to improve work ef ciency and productivity. even if we have a good system, it will be pointless if no Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 35 THE ROUTE Message Group’s CSV Report Information

Corporate Basic policy on corporate governance Governance The basic policy of Coca-Cola Bottlers Japan Holdings Inc. meetings of the Board of Directors and the right to state (the Company) is to increase management ef ciency and opinions at the General Meeting of Shareholders on matters transparency and strive to enhance shareholder value. such as the nomination and remuneration of directors. To further strengthen the governance structure, the In addition, the Company has adopted the executive Company has put in place an audit and supervisory of cer system for the purpose of separating decision-making committee structure. The Audit & Supervisory Committee, and management oversight from business execution. By Corporate governance which is responsible for the Company’s auditing, consists delegating some important decisions on business execution solely of outside directors (Audit & Supervisory Committee to executive of cers, the Company endeavors to enrich https://en.ccbj-holdings. members), including multiple independent outside directors. discussion of particularly important matters at meetings of com/corporate/ The Company’s management oversight function is further the Board of Directors and expedite management decision- governance/ strengthened by granting to these outside directors serving making on other matters by executive of cers under the as Audit & Supervisory Committee members voting rights at representative directors (the management team).

Corporate governance system (as of March 26, 2019)

Corporate governance system General Meeting of Shareholders

Election/Dismissal Election/Dismissal Election/Dismissal Reporting/Stating opinion Company with an Organizational Board of Directors structure audit and supervisory committee Excluding directors serving on the Directors serving on the Directors Reporting Audit & Supervisory Committee Audit & Supervisory Committee Outside directors members Independent 6/9 outside directors: 4

Executive Inside directors: 3 Outside directors: 6 of cers members 2/9 Selection/Supervision/Delegation of Reporting execution of operations execution of important operations Supervision/Reporting Independent Representative Directors directors 4/9 members Exchange of opinions Auditing Audit of ce Outside directors on Reporting Coordination the Audit & Supervisory & Supervisory Audit Committee members Auditing Committee 4/4 Outside Auditing independent directors: 2

Financial/Accounting auditors Financial/Accounting Executive Of cers

Group companies Divisions

Corporate Governance Report (in Japanese only) WEB Outside https://www.ccbj-holdings.com/corporate/ Reporting directors: 4 Auditing/Determining proposals for election or dismissals governance/pdf/report_jp.pdf Coordination Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 36 Corporate Governance THE ROUTE Message Group’s CSV Report Information

Ef ectiveness of the Board of Directors Election of outside directors Remuneration for directors

The Company evaluates the ef ectiveness of the Board of The Company nominates as candidates for outside The maximum total amount of remuneration allotted for Directors on the basis of director self-evaluations of the director persons who it judges can be expected to make all directors (excluding directors serving as Audit & Board’s operation, support system, composition, and outstanding contributions to increasing its corporate Supervisory Committee members) is set at ¥750 million other matters. The following fi ve points were confi rmed value. Furthermore, when nominating candidates for per year (of which, the maximum amount allotted for in the ef ectiveness evaluation performed in 2018. outside director who will also serve as Audit & outside directors is ¥50 million per year), the maximum Supervisory Committee members, the Company amount allotted for directors serving as Audit & 1 ) Appropriate time allowed for full deliberation on nominates at least one person who has appropriate Supervisory Committee members is set at ¥100 million important matters knowledge of fi nance and accounting. per year, and remuneration for each director is determined 2) Prompt provision of information to directors to allow Also, the Company determines that outside directors as described below within the scope of this total amount. full deliberation before meetings have suf cient independence from the Company, if, as a 3) Enhancement of information provision to outside result of investigation to the extent reasonably possible, 1 ) Directors (excluding directors serving as Audit & directors they fall under none of the following categories. Supervisory Committee members) 4) Assurance of diversity on the Board of Directors Representative directors authorized by the Board of 5) Continuous review of structure to determine the 1 ) A person who is currently, or was within the past 10 Directors determine the remuneration for each optimal governance model years, an executive of cer of the Company or any of director (excluding directors serving as Audit & its subsidiaries Supervisory Committee members). Taking into account the self-evaluation results, the 2) An entity for whom the Company is currently, or was Although the Board of Directors determines Company is proactively and continuously undertaking within the past year, a major business partner (a remuneration criteria, since the Company has a improvement of Board operation in order to enhance and business partner for whom the CCBJH Group company with an audit and supervisory committee deepen discussion at meetings and promote diversity on accounts for 2% or more of its consolidated sales in governance structure and the Board of Directors the Board, and will strive for further sustained growth and its most recent fi scal year) or an executive of cer of includes more than one independent outside director, enhancement of medium- and long-term corporate value. such an entity the Company judges that transparency and fairness The Board of Directors in fi scal 2019 has been 3) An entity who is currently, or was within the past year, are ensured. To ensure that the remuneration refl ects structured to consist of a majority of outside directors a major business partner of the Company (a business the responsibilities of directors and the Company’s with enhanced independence and features a diverse partner who accounts for 2% or more of consolidated business performance, remuneration consists of fi xed composition of directors with respect to gender and sales in the Company’s most recent fi scal year) or an remuneration and remuneration that varies in nationality. This is so it can specialize in highly ef ective executive of cer of such an entity accordance with the Company’s business management oversight and strategy and be conducive to 4) A consultant, certifi ed public accountant, attorney, or performance and other factors. a wide variety of discussions. other professional who currently receives, or received 2) Directors serving as Audit & Supervisory Committee during the past year, an annual sum of ¥10 million or members more in remuneration from the Company, other than Remuneration for each director serving as an Audit & remuneration as a director or Audit & Supervisory Supervisory Committee member is determined Committee member through discussion among the directors serving as 5) An entity who currently receives, or received during Audit & Supervisory Committee members. the past year, an annual sum of ¥10 million or more in donations from the Company or an executive of cer of such an entity CHECK! 6) A close relative within the second degree of any Specifi c shareholding requirement rules for None person falling under 1 to 5 above CEO and other executive of cers Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 37 Board of Directors THE ROUTE Message Group’s CSV Report Information

Calin Dragan Hiroshi Yoshioka Representative Director and President Outside Director Independent Director

Calin Dragan possesses a wealth of management Hiroshi Yoshioka possesses a wealth of experience and knowledge pertaining to the management experience and global business global Coca-Cola business gained as knowledge gained as an outside director of a representative director and president of a Coca-Cola bottler in Japan and at Sony Coca-Cola bottler in Japan and in positions at Corporation. overseas Coca-Cola bottlers in several countries.

Bjorn Ivar Ulgenes Hiroko Wada Representative Director, Vice President, Outside Director Chief Financial Of cer and Head of Finance Independent Director

Bjorn Ivar Ulgenes possesses a wealth of Hiroko Wada possesses a wealth of management management experience and knowledge experience and global business knowledge pertaining to the global Coca-Cola business gained as a corporate of cer at The Procter & gained as an executive of cer and head of Gamble Company (U.S.) and as representative fi nance in various positions at director and president of Dyson Ltd. and The Coca-Cola Company. Toys “R” Us-Japan, Ltd.

Tamio Yoshimatsu Director and Chairman

Tamio Yoshimatsu has a proven track record gained in the Sales, Distribution, and Management Planning Divisions and possesses a wealth of management experience gained as representative director and president of a Coca-Cola bottler in Japan. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 38 THE ROUTE Message Group’s CSV Report Information

Irial Finan Celso Guiotoko Outside Director Outside Director (serving on the Audit & Supervisory Committee) (serving on the Audit & Supervisory Committee) Independent Director Irial Finan possesses a wealth of management experience and global business knowledge Celso Guiotoko possesses a wealth of gained as a corporate executive involved in the management experience and global business Coca-Cola business over many years as an knowledge gained at Nissan Motor Co., Ltd. and outside director of a Coca-Cola bottler in Japan, auditing experience gained as a statutory auditor senior vice president at The Coca-Cola Company, of Nissan. and as president of the Bottling Investments Group, which manages The Coca-Cola Company’s company-owned bottling operations worldwide.

Jennifer Mann Nami Hamada Outside Director Outside Director (serving on the Audit & Supervisory Committee) (serving on the Audit & Supervisory Committee) Independent Director Jennifer Mann is senior vice president, chief people of cer, and president of global ventures Nami Hamada has extensive experience in at The Coca-Cola Company and possesses a fi nance and accounting, including management wealth of management experience and global of her own fi nancial consulting company, and business knowledge gained through many years possesses a wealth of experience and global of experience in the Coca-Cola business as a business knowledge gained as a corporate corporate executive of The Coca-Cola Company. executive at Lehman Brothers Japan Inc. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 39 Main Product Line-up THE ROUTE Message Group’s CSV Report Information

Sparkling soft drinks Cof ee drinks

Sports drinks Tea drinks Juice and juice drinks

Yogurt drinks Water and fl avored waters Energy drinks Foods for Specifi ed Health Uses

COCA-COLA, GEORGIA, CRAFTSMAN, SOKENBICHA, KARADA MEGURI-CHA, ADVANCE, KARADA SUKOYAKA-CHA, AYATAKA, KOCHAKADEN, AQUARIUS, S-BODY, FANTA, SPRITE, REAL GOLD, QOO, PURUN-PURUN, MINUTE MAID, I LOHAS,and YOGUR STAND, are registered trademarks of The Coca-Cola Company. CANADA DRY is a registered trademark of European Refreshments. Foods with Function Claims ©The Coca-Cola Company Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 40 CCBJH Group Profi le THE ROUTE Message Group’s CSV Report Information

Corporate Profi le (As of March 26, 2019) Corporate History

Company name Coca-Cola Bottlers Japan Holdings Inc. April 2017 Coca-Cola West Co., Ltd. and Coca-Cola East Japan Co., Ltd. concluded a share exchange agreement in December 20, 1960 Founded which Coca-Cola West became a wholly owning (Trade name changed to Coca-Cola Bottlers Japan Holdings Inc. on January 1, 2018) parent company and Coca-Cola East Japan became a wholly owned subsidiary. Fiscal year end December 31 Coca-Cola West Co., Ltd. changed its trade name to Coca-Cola Bottlers Japan Inc., and all of Capital ¥15,232 million Coca-Cola West Co., Ltd.’s businesses other than its Group management and administration operations Representative Calin Dragan, Representative Director and President and asset management operations were transferred to a new wholly owned subsidiary named New CCW Tokyo Stock Exchange (First Section) Establishment Preparation Co., Ltd. (whose trade Stock market listings Fukuoka Stock Exchange name was subsequently changed to Coca-Cola West Company, Ltd.). In this way, the companies shifted to a holding company structure. Coca-Cola West Co., Ltd. and Coca-Cola East Japan Co., Ltd. were placed under the control of Coca-Cola Bottlers Japan Inc.

Coca-Cola Bottlers Japan Inc. changed its trade Group Structure January 2018 Coca-Cola Customer Marketing Co., Ltd. name to Coca-Cola Bottlers Japan Holdings Inc. to clearly indicate its role as a holding company. Coca-Cola Bottlers Japan Vending Inc.

FV Japan Co., Ltd. External Evaluations Coca-Cola Coca-Cola Kadiac Co., Ltd. In 2018, CCBJH was selected for inclusion in the regional department of the Dow Bottlers Japan Bottlers Jones Sustainability Index (DJSI), the DJSI Asia Pacifi c. The DJSI is the Holdings Inc. Japan Inc. representative index for environmental, social, and governance (ESG) investments Coca-Cola Bottlers Japan Business Services Inc. worldwide. Each year, CCBJH responds to a climate change questionnaire administered by the CDP, an international NGO which operates a global information Coca-Cola Bottlers Japan Benefi t Inc. disclosure system for managing the environmental impacts by investors, companies, and cities. The CDP collects, analyzes, and then publishes information and scoring on climate change initiatives and environmental performance. QSAI Analysis and Research Center Co., Ltd.

Q’SAI CO., LTD. QSAI FARM SHIMANE Co., Ltd.

CQ Ventures Co., Ltd. Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 41 Communicating with Our Stakeholders THE ROUTE Message Group’s CSV Report Information

Corporate Communication Tools Third party contribution to the report We issue the CSV Report as part of our corporate communication to enable stakeholders to better understand the CSV activities of the CCBJH Group. CSV Report 2019 is available in print as a digest edition and the complete report is Masao Aoki available as a PDF on the corporate website, along with an ESG Data Book, Professor, Mie University, containing more detailed information. Faculty of Humanities, Law and Economics

As a specialist in business administration, A concise booklet has been prepared business history, and R&D management, to inform all stakeholders of the I address what defi nes good CCBJH Group’s CSV activities. management and explore the independent identities of corporations, Overview of the CCBJH Group’s including the roles that they fi ll in society, CSV activities while I research how society can become Highlights of activities under each better through its companies. PhD CSV priority graduate (2002) of the Ritsumeikan CSV Report University Graduate School of Business digest edition Administration. (printed version) The CCBJH Group puts signifi cant ef ort into Creating Shared Value (CSV) within its priority areas of health, the environment, and community. I fi nd it admirable that not only do they attain concrete results with those initiatives, but that they collaborate CSV Report with community members on local projects in addition to (PDF version) partnering with industry, government, and academia. By developing the smartphone app Coke ON, in which users CCBJH Group website can earn stamps for walking, and holding seminars to help raise Creating Shared Value awareness regarding beverage information, the Group builds https://en.ccbji.co.jp/csv/ All general aspects of CSV activities are reported in detail. connections with consumers through their beverages. If those Activity report for each CSV priority connections can lead to more interactions between consumers CSV Report as well, that will contribute to strengthening the relationships ESG Data Book that create value for everyone in the community—which is a part of the Group’s Mission. In addition, the promotion of "smart work," which contributes to employee job satisfaction, is allowing people to fi nd work styles that match their lives. Through smart work ef orts, employees will have more time to spend on other CSV information can be accessed by clicking on “Creating Shared Value” on the homepage of activities and on learning, which can benefi t their jobs and the corporate website. Investor relations information, new product and campaign information, recruitment information, and news are also available on the website. generate further value creation. https://en.ccbj-holdings.com/ Corporate Philosophy Top The CCBJH CSV Progress CCBJH Group Contents 42 THE ROUTE Message Group’s CSV Report Information

Zao Plant Tama Plant Tokai Plant Plant 1-2-9 Nobidome, Higashi-Kurume, 1-1 Minamikawazoe, Miya, Zao-machi, 266-18 Tonowari, Minamishibata-machi, Tours Katta-gun, Miyagi Tokyo Tokai, Aichi CCBJI of ers plant tours to help customers become more familiar with The Coca-Cola Company’s products. Guides will introduce the origin and history of Coca-Cola, as well Tel. 0224-32-3505 Tel. 042-471-0463 Tel. 052-602-0413 Open: Monday through Friday and Open: Monday through Friday and Open: Monday through Friday and as quality control and occasionally Saturday, including holidays occasionally Saturday, including holidays occasionally Saturday, including holidays environmental ef orts. (excluding certain holidays) (excluding certain holidays) (excluding certain holidays) You will also be able to see the plant’s impressive production lines. Please come visit! Kyoto Plant Ebino Plant 128 Tai Shinarami, Kumiyama-cho, 1321-1 Aridome, Higashikawakita, Kuse-gun, Kyoto Ebino, Miyazaki

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