Coca Cola Bottlers Japan : Consolidated Financial Summary for the First Quarter Ended March 31, 2023 (IFRS)

This flash report is unaudited and a translation of the Japanese language version.

Consolidated Financial Summary for

the First Quarter Ended March 31, 2023 (IFRS)

		May 12, 2023
Listed company name: Coca-Cola Bottlers Japan Holdings Inc.	Listed stock exchanges: Tokyo
Code number: 2579	URL: https://en.ccbj-holdings.com/
Delegate:	Title: Representative Director & President	Name: Calin Dragan
Contact:	Title: Head of Controllers Senior Group Division, Finance	Name: Tatsuhiro Ishikawa Phone: [phone]

Expected date of quarterly report submission: May 15, 2023

Schedule for dividends payment: -

Preparation of supplementary materials on quarterly financial results: Yes

Holding of quarterly financial results conference: Yes

(Fractions of one million yen are rounded to the nearest million)

1. Consolidated financial results for the first quarter 2023 (from January 1, 2023 to March 31, 2023)

1. Consolidated financial results

	Revenue
	million yen
1st Quarter, 2023	182,063
1st Quarter, 2022	168,853

				(Percentages indicate changes over the same period in the prior fiscal year)
							Net income (loss)
	Business income (loss) Operating income	Net income (loss)	attributable to owners of Total comprehensive
							the parent		income (loss)
％	million yen	％	million yen	％	million yen	％	million yen	％	million yen	％
7.8	(9,437)	－	(9,160)	－	(6,454)	－	(6,459)	－	(6,350)	－
0.3	(12,749)	－	(9,670)	－	(6,564)	－	(6,568)	－	(5,325)	－

	Earnings (Loss) per share Diluted earnings per share
	yen	million yen
1st Quarter, 2023	(36.02)	－
1st Quarter, 2022	(36.02)	－

*"Business Income" is an indicator of our recurring business performance that is calculated with costs of goods and selling, general and administrative expenses deducted from revenue, and other income and expenses which we believe are recurring in nature added and subtracted accordingly.

(2) Consolidated financial position

	Total assets	Total equity	Equity attributable to parent owners	Ratio of equity attributable to parent
				owners
	million yen	million yen	million yen	％
Mar. 31, 2023	819,494	465,385	465,238	56.8
Dec. 31, 2022	826,737	476,358	476,216	57.6

2. Dividends

			Dividends per share
First quarter		Second quarter	Third quarter	Fiscal year	Total
	yen	yen	yen	yen	yen
FY ended December, 2022	－	25.00	－	25.00	50.00
FY ending December, 2023	－
FY ending December 2023		25.00	－	25.00	50.00
(forecast)

Note: Revisions to the cash dividends forecasts most recently announced: None

3. Forecast for consolidated financial results 2023 (From January 1, 2023 to December 31, 2023)

						(Percentages indicate changes over the same period in the prior fiscal year)
									Net income (loss)		Earnings(Loss))
	Revenue		Business income (loss)	Operating income (loss)	Net income (loss)	attributable to owners of the
									parent		per share
	million yen	％	million	％	million yen	％	million yen	％	million yen	％	yen
	yen
Full year of 2023	847,100	4.9	(5,000)	－	(5,300)	－	(4,300)	－	(4,300)	－	(23.98)
Note: Revisions to the forecasts of consolidated operating results most recently announced: None

Notes
(1) Changes in significant subsidiaries during the current period:	None
(2) Changes in accounting policies and changes in accounting estimates:
1)	Changes in accounting policies as required by IFRS:	None
2)	Changes other than those in 1) above:	None
3)	Changes in accounting estimates:	None

(3) Number of outstanding shares (common shares)

1) The number of outstanding shares (including treasury shares):

1st Quarter, March 2023:	206,268,593 shares
FY Ended December 2022:	206,268,593 shares
2) The number of treasury shares:
1st Quarter, March 2023:	26,929,137 shares
FY Ended December 2022:	26,928,478 shares
3) The number of average shares outstanding:
1st Quarter, March 2023:	179,339,816 shares
1st Quarter, March 2022:	179,343,803 shares

• The consolidated financial summary is not subject to quarterly review procedures conducted by certified public accountant or audit firm.
• Explanation regarding appropriate use of the forecast, other special instructions

Figures in the above forecast are based on information available at the time of issuance of this report, and the actual results may be changed materially due to a number of inherent uncertainties in the forecast. Furthermore, please refer to "1. Qualitative Information on the Financial Summary for this Quarter (3) Information on the Future Outlook, such as Forecast of Consolidated Financial Results" on page 4 for matters relating to performance forecasts.

Table of Contents
1. Qualitative Information on the Financial Summary for this Quarter	2
(1)	Qualitative Information on Consolidated Financial Results	2
(2)	Qualitative Information on Consolidated Financial Position	4
(3)	Qualitative Information on the Future Outlook, such as Forecast of Consolidated Financial Results	4
2. Condensed Consolidated Financial Statements and Notes	5
(1)	Condensed Consolidated Statement of Financial Position	5
(2)	Condensed Consolidated Statements of Income and Comprehensive Income	7
(3)	Condensed Consolidated Statements of Changes in Equity	9
(4)	Notes to Condensed Consolidated Financial Statements	10
(Notes Relating to Going Concern Assumption)	10
(Segment Information)	10
(Subsequent events)	10

1

1. Qualitative Information on the Financial Summary for this Quarter

1. Qualitative Information on Consolidated Financial Results

Coca-Cola Bottlers Japan Holdings Inc. ("CCBJH", the "Company", or "we") announced first quarter results for the fiscal year ending December 31, 2023 (January 1, 2023 to March 31, 2023).

In this first quarter (January 1, 2023 to March 31, 2023), the total domestic nonalcoholic ready-to-drink (NARTD) beverage industry volume is estimated to have grown slightly versus the same period of the previous fiscal year. Despite the negative impact on demand from the price revisions by beverage companies in the previous fiscal year, demand increased on the back of a recovery in traffic and resumption of economic activity, as well as a recovery from the impact of the restrictions due to coronavirus infection ("COVID-19") in the same period of the previous fiscal year. On the other hand, the business environment remained uncertain and challenging as the rising commodity and utility prices and yen's depreciation impacted business and consumer behavior.

Under these circumstances, we have positioned 2023 as the "Year of profit focus", and we have given top priority to improving profitability. In commercial activities, we have focused on implementing and maintaining the prices of our products after the price revisions implemented in the previous fiscal year and worked to improve wholesale revenue per case. In addition, we have worked to grow sales revenue by introducing new products, expanding sales space at key customer storefronts, and implementing effective marketing activities in order to capture increased demand from the traffic recovery. Furthermore, we have been conducting negotiations with customers for the price revisions of can products and large PET bottle products from shipments on May 1, which is an important initiative to further improve profitability. In the manufacturing and supply chain fields, while faced with rising commodity and utility prices, and yen's depreciation, we have been working to reduce manufacturing and distribution costs by further improving our Sales and Operations Planning (S&OP) process and supply network. These activities include the use of the Saitama Mega DC (Distribution Center) and Akashi Mega DC, automated distribution centers with the largest storage and shipping capacity in Japan. We have also prepared for achieving stable operations for the summer, the season with the highest demand.

We are working to realize Environmental, Social, and Governance (ESG) targets based on creating shared value with society. Specifically, we have launched several collaborative initiatives with customers and government agencies to promote Sustainable Development Goals (SDGs) and enhance PET bottle recycling. We have been working to reduce our environmental impact through fostering a recycling-based society and expanding business opportunities through collaboration. In other efforts to contribute to local communities through our business, we have implemented water source conservation activities and donated products to food banks. Such ESG initiatives have been positively appraised, and we have been certified as an "Eco-First Company" by the Ministry of the Environment, as well as selected as a "Supplier Engagement Leader," the highest rating in the "2022 Supplier Engagement Assessment" by CDP, an international non-profit organization.

Details for the fiscal quarter earnings are as follows. Please also refer to our earnings presentation material available on the Company IR website (https://en.ccbj-holdings.com/ir/library/presentation.php) to be used in our earnings conference call on Monday, May 15, 2023 at 2:00 PM (JST). These will include details of the results and outlook. The earnings presentation audio webcast will be available live and on demand through our company website.

2

Summary of Consolidated Financial Results

(Millions of yen except sales volume)

Year-to-date Q1 (January to March)

	2022	2023	Change
In million JPY	(%)
Revenue	168,853	182,063	7.8
Sales volume (million cases)	100	104	4
Gross Profit	72,011	78,741	9.3
Selling, General & Administrative Expenses	84,892	88,002	3.7
Other income (Recurring)	298	186	(37.6)
Other expenses (Recurring)	189	369	95.5
Investment loss on equity method	22	8	(66.3)
Business Loss	(12,749)	(9,437)	－
Other income (Non-recurring)	5,690	1,123	(80.3)
Other expenses (Non-recurring)	2.611	846	(67.6)
Operating Loss	(9,670)	(9,160)	－
Net Loss Attributable to Owners of Parent	(6,568)	(6,459)	－

• 1. "Business Loss" is a measure of our underlying or recurring business performance. Business Loss deducts cost of goods and selling, general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.

2. Sales volume in 2022 is revised retroactively due to changes of counting segmentation and scope in some products.

Consolidated revenue was 182,063 million yen (7.8% increase of 13,210 million from the same period in the prior year). Despite the initial negative impact on volume following the price revisions, sales volume increased by 4% versus the same period in the previous year. This was due to the introduction of new products and expansion of sales space among key customers. We have also implemented effective marketing activities which helped capture the demand opportunity from traffic recovery. The price revisions implemented in the previous fiscal year are delivering benefits as planned with wholesale revenue per case increasing and contributing to revenue growth.

Consolidated business loss improved by 3,312 million yen (loss reduced) and was a loss of 9,437 million yen (12,749 million yen loss in prior year period). Profitability improved by approximately 5 billion yen in the areas under our control, including profit contributions from top-line growth, sales volume growth, wholesale revenue per case improvement, and logistics cost reductions through supply chain improvements. Profitability improvement was achieved despite the impact of cost increases due to external factors such as higher commodity and utility prices and yen depreciation, as well as the cycling of temporary cost savings implemented in the same period of the previous year.

Consolidated operating loss improved by 510 million yen (loss reduced) and was a loss of 9,160 million yen (9,670 million yen loss in prior year period). In addition to business loss improving versus the previous year (loss reduced) being the primary reason, there was a cycling impact of gains from sales and disposals of property, plant, and equipment that was recorded in the same period of the previous year which decreased other income (non-recurring). Other income (non-recurring) in the first quarter includes 1,116 million yen in gain on sales and disposals of property, plant, and equipment, which was realized in the process of improving the balance sheet. Other expenses (non-recurring) include 787 million yen in business structure improvement expenses related to the implementation of fundamental transformation.

Net loss attributable to owners of the parent improved by 109 million yen (loss reduced). With operating loss improving from the previous period, it was a loss of 6,459 million yen (6,568 million yen loss in prior year period).

3