Coca-Cola Bottlers Japan

Kick-off Presentation
June 6, 2017

Tamio Yoshimatsu, President

Vikas Tiku, CFO
Head of Transformation
Forward-looking statements
The plans, performance forecasts, and strategies appearing in this material are based on the assumptions and judgment of the
management of Coca-Cola Bottlers Japan Inc. (CCBJI) in view of data obtained as of the date this material was released. These
forecasts may differ materially from actual performance due to risks and uncertain factors such as those listed below.
Risks and uncertain factors are not limited to the items listed below. They are also included in our annual securities report, or “Yuka
Shoken Houkokusho”.
• Agreements with The Coca-Cola Company and Coca-Cola (Japan) Company Limited.
• The quality and safety of products
• Market competition
• Natural environment, such as climate, disaster, water resources, etc.
• Legal environment
• Leakage or loss of information
• Change of economic conditions, such as personal consumption, currency exchange rates, prices of raw materials, fair value of
assets, etc.
• Business integration, streamlining and optimization of business processes, etc.
• Uncertain factors other than those above
The information in this presentation is provided for informational purposes and should not be construed as a solicitation of an investment
in our securities.
CCBJI undertakes no duty to update any statement in light of new information or future events. You should rely on your own
independent examination of us before investing in any securities issued by our company. 2
Agenda
CCBJI: A model bottler...now and for the future

Our vision – Growth roadmap for 2020 & beyond

Financial framework for creating shareholder value

Key takeaways

Q&A
3
CCBJI: A Model Bottler…
Now and for the Future
5
The bigger we are, the better we can serve you
OUR AMBITION
We will lead the beverage industry in Japan to
more profitable and sustainable growth

WHAT WE DO
We have the front line advantage and
scale to drive growth with our customers

WHO WE ARE
We are the leading Japanese beverage company
and the largest Coca-Cola bottler in Asia
6
A defining moment in Japan’s bottling consolidation

(CCW) + (CCEJ)
Kitakyushu Tokyo
Sanyo Tone
Mikasa Mikuni
Kinki Fuji
Minamikyushu Chukyo
Shikoku Sendai

7
A strong heritage & winning capabilities
The right combination at the right time
The leader in the NARTD market in
Japan with national scale
A growth mindset to build a strong
Coca-Cola system with a shared vision
Built on the strong momentum at
CCW and CCEJ
A model bottler...now and for the future
8
CCBJI at a glance About
Number of Employees

25,000 Number of Vending Machines

The world’s third largest

*Including temp staff

Sales Area
740,000
Coca-Cola bottler by revenue Tokyo, Osaka, Kyoto *As of end of 2016

and 35 prefectures Number of Consumers

Total Beverage Company, Annual Revenue 50 million households

offering 50+ brands, 600+ About 112 million consumers
SKUs 1 trillion yen
*Aggregation of CCW and CCEJ 2016 results
Annual Sales Volume

Sales Centers More than 500

*Actual 2016
million cases
Represents ~90% of total 351 centers Customer Outlets

sales volume for the *As of January 2017, including distribution centers
320,000 outlets
Manufacturng Plants
Coca-Cola system in Japan *As of end of 2016

Number of Fleets
17 plants
16,300 vehicles 9
*As of end of July 2016
We are a Total Beverage Company
Operating in a growth market
Water Tea
Volume growth of the Japan
Other
NARTD market

Water
Sparkling
Energy
Sports

Tea
Coffee Sports
Juice
+1.2%
2014-2016
Coffee
CAGR

Sparkling

1980 2016
CCBJI internal estimate Beverages for Life 10
Led by a diverse and experienced leadership team
Leveraging the best from Japan and the Coca-Cola system
Tamio Yoshimatsu Vikas Tiku Yasunori Koga
President Transformation & CFO Corporate Administration

Costin Mandrea Kyoichi Takagi Bruce Herbert

Commercial Corporate Planning Supply Chain

Shigeki Okamoto Haruko Ozeki Shunichi Nasu

Corporate Communications Legal Integration Management Office

Jawahar Solai Toyoji Okada Maki Kado

Finance Human Resources Procurement

Asako Aoyama Raymond Shelton Yoshiaki Murata

Transformation Projects Investor Relations Key Account Management

11
Supported by a solid corporate governance structure
Board of Directors
Company with Audit and Tamio Yoshimatsu
Representative Director &
Zenji Miura
Outside, Independent Director
Supervisory Committee President Audit & Supervisory Committee Member
Former president & CEO of Ricoh Co., Ltd.
Vikas Tiku
Blend of experienced board Representative Director & Vice
President, Chief Financial Officer,
Tadanori Taguchi
Director
members with a diversified Head of Transformation
Audit & Supervisory Committee Member

and global mindset Yasunori Koga Irial Finan

Director & Senior Executive Outside Director
Officer, Head of Administration Audit & Supervisory Committee Member
The Coca-Cola Company President of Bottling Investment Group,
The Coca-Cola Company
Costin Mandrea
owns 16.35%* as largest Director & Senior Executive
John Murphy
Officer, Head of Commercial
shareholder Outside Director
Audit & Supervisory Committee Member
President of Asia Pacific Group,
Hiroshi Yoshioka The Coca-Cola Company
Outside, Independent Director

*Including indirect ownership through subsidiaries

12
We are part of the global Coca-Cola system
An enduring and effective partnership

Coca-Cola (Japan) Company

• Brands • Customer focus

• Innovation • Local expertise
• Global perspective • Best-in-class execution
• Consumer focus • Finished goods production
• Superior insight • Logistics and distribution
• Cost optimization

13
 Video Message from
James Quincey, CEO
The Coca-Cola Company
 Our Vision –
Growth Roadmap for 2020
& Beyond
Our vision – Growth roadmap for 2020 & beyond

Financial Focus on
framework growth

New
Integration
operating
synergies
model

People &
communities

16
Key metrics and picture of success
Stabilize topline, RGM initiatives,
Revenue Growth
revenue-rich innovation
Value share growth ahead of
Value Share
volume share growth
Growth in smaller, immediate
Transactions
consumption packs
Deliver strong cash flow from
EBITDA Margin
operations
Return on Equity Optimize balance sheet to
(ROE) maximize returns
17
Focus on Growth
Committed to a growth agenda
Strategic Growth Pillars

Renewed Focus on Re-imagine Enrich Innovation

Revenue Growth Vending Business Pipeline

Customer Engagement

Best-in-Class Execution In-depth Local Knowledge

19
Renewed focus on revenue growth
Continue to prioritize profitable investments
Everything starts from the consumer – activate
based on consumption and shopping occasions
Continue to grow value where CCBJI has
competitive advantage
Expand premium innovation initiatives across
the channels
Showcase Tokyo to the world in 2020;
superior, segmented market execution
20
Re-imagine vending – for growth and profit
The most convenient channel for consumers
– fast, reliable, at an arm’s reach
Focus where the growth is – indoor and high traffic
locations
Leverage technology innovation to improve
operational efficiency
Rapid expansion & continued evolution of Coke ON
Be a better partner for communities & environment
21
Enrich and sustain our innovation pipeline

Value-added innovation for our consumers and

customers
Package, product, equipment, occasion,
operations – innovation is everywhere
Stronger bottler voice to drive innovation
Sharing, implementing and execution of
successful examples of other global Coca-Cola
bottlers
22
New Operating Model
Guiding principles for a new operating model
- Lean corporate center with
Organize for - Customer focus, externally-driven empowered regions
- We all "sell or help sell”
- Simple and speedy decision making
growth - Prioritizing "biggest bang”
synergy projects
- Common enterprise system - Functionally focused
Operate as - Standardized processes and operations from Day One
world-class governance - Coke One+ ERP system
one enterprise - Optimized number of entities rollout planned

- Roadmap for integrating

System - Speak as a single bottler voice
- Put decision rights at the appropriate
system support companies
(Customer, Procurement, IT)
mindset level
- Strong bottler voice w/ CCJC

- Leverage world-class capabilities - Cooperating with other global

Lead the - Centralize what benefits most from Coca-Cola bottlers
leveraging scale - Moving forward with integrated
industry - Create centers of excellence business services organization 24
CCJC: Coca-Cola (Japan) Company
Organized to serve our customers even better
COMMERCIAL: 6 REGIONS OPERATING MODEL DESIGN
Consumers & Customers

Sell
6 commercial
regions Frontline
3 supply chain (field)

Integrated Business Services

territories, managed
nationally
SUPPLY CHAIN: 3 REGIONS
Support
functions

Center
HQ

25
Committed to a new partnership model with TCCC

Joint transformation initiatives

Simplify decision-making
Align incentives to capture market
opportunities
Enhance mutual accountability
Stronger bottler voice to drive
innovation
TCCC: The Coca-Cola Company
26
Integration Schedule
Synergy Target
Integrating with speed
Ready for 2020
• HR & IT system integration
• Host Bottler of the 2020
Tokyo Olympic Games
2020

2018
Delivering results
• Organizational integration
complete, including system
support companies
Apr • Establish optimized operating
structure/organization
2017 Establish CCBJI • Investment for further growth
• Operating functionally
• Balanced leadership team
• World-class governance model 28
Driving synergies across our business
Led by Supply Chain
Total synergies
by 2020 Areas High Impact Initiatives
• Network optimization

Supply Chain • Site and route optimization

and • Manufacturing productivity improvement
Procurement • Increasing insourcing capacity
• Price negotiation with suppliers
25B • Standardized pricing, terms, conditions (PTC)
• Optimizing route-to-market (RTM)
Commercial
• Vending cost-to-serve
• Sharing of best practice
• Establish integrated business support function
Back Office
• Integrate legacy systems into CokeOne+
PTC: Price, terms and conditions RTM: Route-to-market 29
Supply chain optimization will generate synergies
up to and beyond 2020

Capex Plan Synergy Targets

Strategic Investment
+5 B

Baseline Investment

2017 2018 2019 2020

Accumulated strategic Capex plan of 80B by

25 B

2019 for supply chain optimization and ERP

By 2020 By 2023
Specific investments for longer-term benefit
beyond 2020
ERP: Enterprise Resource Planning 30
Consolidate, eliminate & integrate legacy systems
across CCBJI

Data • Enable data accuracy and consistency by combining in one

Standards repository, improving transparency and insight

MARKET-TO-ORDER
RECORD-TO- MASTER DATA MANAGEMENT

Standard
Channel and REPORT MANAGEMENT REPORTING
Category

• Provide a single application with standardised, shared, enhanced

Management

MTO Management
Financial Accounting
Key Account Reporting
Business planning
Management

Field Sales and

Call Center Merchandising Data Standardization
Management
Promotion
Management

Controlling

ORDER-TO-CASH Full Service

Vending
Management
OTC Management
Reporting

Strategic Sales Integrated Empties

Customer Asset Pricing Integrated Order Sales and Settlement and Treasury
and Distribution / Returnables
Management Management Management Distribution Billing
Route Planning Management

FORECAST-TO-DEPLOY Data Enablement

Period end closing

and controlled processes

Integrated Weekly
Monthly planning - Production Product Quality Warehouse Asset
FTD Planning Demand and FTD Management
Rolling estimate Execution Management Management Management
Supply Planning

Processes
Reporting

Haulage

Corporate & Management

Reporting

PROCURE-TO-PAY

Vendor Procurement Receiving PTP Management

Accounts payable Reporting
Capital Budget management management management
Master Data Maintenance
Investment management

HUMAN RESOURCES MANAGEMENT

Training and
Organizational Personnel
Recruitment Events HRM Management
Management Administration
Management Reporting
Human Resource Project Systems
Planning

Objectives Setting
Personnel Cost Compensation
and Performance Time Management Payroll
Planning Management
Management

One ERP • Streamline applications portfolio and infrastructure

System • Standardises activity between functions & with business partners

Flexible • Enable organisational flexibility, integrated business services and

Organization national supply chain

ERP: Enterprise Resource Planning 31

 CCBJI
2017 – 2020 Operating
Income Growth Plan
Deliver synergy commitments & reinvestment to drive growth
Operating income growth plan 2017 – 2020

Unit: B JPY OI margin

6%
3 (5)
65
27
OI margin
4%

• Organic revenue
40 growth +1.5% CAGR
• Integration synergies
and re-investment

2016 Coca-Cola Health & Skin Goodwill, etc. 2020

Pro forma business Care Business Target
33
Year-one synergies building on solid 2016 momentum
Pro forma 2017 operating income growth plan

Unit: B JPY

4 46 (4)
+15 vs PY
Goodwill
42 Net
integration amortization 42
(9 months),
40 synergies
and benefits etc.

2016 2017 2017 2017

CCBJI CCW + CCEJ CCBJI CCBJI
Pro forma Base Plans Pro forma Pro forma
before goodwill 34
2017 Business plan (Reported)
Consolidated CCEJ from Q2. Prior year CCW only
Consolidated 2017 Plan 2016 Actual YoY
Revenue 906,500 460,455 +96.9%
Operating Income 40,100 21,143 +89.7%
Ordinary Income 38,100 20,602 +84.9%
Net Income 21,500 5,245 +309.9%
EPS 122.85 JPY 48.05 JPY +74.80 JPY

Coca-Cola 2017 2016 Health & Skin 2017 2016

YoY YoY
Business Plan Actual Care Business Plan Actual
Revenue 872,400 428,394 +103.6% Revenue 34,100 32,061 +6.4%

Operating Income 36,500 18,369 +98.7% Operating Income 3,600 2,774 +29.7%

Unit: Million JPY except EPS

Net Income: Net income attributable to owners of parent
2016 actual results are former Coca-Cola West and YoY calculated on former Coca-Cola West results. 35
Strong operating income in Q1 2017
Driven by pricing discipline and cost optimization
Q1 2017 Pro forma: Volume -0.9% / Revenue per Case +3 JPY / OI +70% vs PY
By Channel By Category
Others Revenue
vs PY Volume vs PY Volume
0% per Case
Retail Juice Others
& 4% 13% Sparkling +7%
Foods Supermarket Supermarket -1% +43 Sparkling
23% 20% 25%
Drug & Teas +1%
+2% +51
Discounter
Drug &
Discounter Sports -8%
Convenience Coffee
11% -2% +10
Vending Store 22% Teas Water -13%
31% Convenience 21%
Vending -4% +16
Store Coffee -5%
15% Water Sports
Retail & Foods +3% -17
9% 6% Juice +1%

Year-to-date Business Update

• Strong improvement in operating income, driven by price discipline, phasing of expenditures, etc.
• Seeing revenue per case improvements with improved profitability
• Expect continued volume pressure as we “stay the course” on pricing
36
Financial Framework
A clear framework for value creation

① Grow earnings to generate free cash flow

② Invest to grow & deliver synergy commitments

③ Leverage debt capacity to build efficient capital structure

④ Drive shareholders’ return with focus on ROE

38
Grow earnings to generate steady cash flow
2020 Vision
Strategic Approach
2016 2020 Beyond 2020
Key Metrics
Deliver revenue growth through
market leadership and Revenue - 1.8% 2%+
comprehensive top-line management

EBITDA
Building strong and efficient
margin
8% 11% 12-13%
foundation to maximize company
profitability and cash flow generation
OI
margin
4% 6% 8%

Steady free cash flow generation 39

Investing to grow & deliver synergy commitments
Capex Investment Principles
Baseline
Focus on investments with Investment Ensure strong
attractive returns to drive foundation to keep
~4% of revenue the business running
growth & efficiency

Cash Flow Plan 2017~2020 Strategic

Cumulative Synergy investment to
investment
drive efficiency including
Cash flow from operations 358 SCM areas
~2% of revenue
CAPEX 272
Free cash flow 86

Unit: Billion JPY Other growth Capacity to fund additional

opportunity opportunities as they arise

40
Build efficient capital structure and improve ROE

Optimize capital 1 Utilize debt capacity to operate up to 2.5X EBITDA

structure to
maximize
shareholder
2 Focus on maintaining investment grade rating

returns
3 Optimize WACC by periodically evaluating capital
structure

Target ROE
Beyond
Today 2020 2020
4% 6% 8+%
41
Maintaining shareholder returns in 2017
Dividend forecast and shareholder benefits program

Annual Dividend Prioritized stable dividend

2017 CCBJI dividend forecast slightly increased from 2016 dividend per

44 share for former CCW/CCEJ shareholders*

Estimated dividend payout: 42%

JPY/Share
Interim Year-end Shareholder benefits program that encourages long-term holding
Shareholders can exchange the shareholder benefit points for Coca-Cola
22 22 products, CCBJI goods, donate them to charity, etc.
JPY/Share JPY/Share

*Excluding CCW special commemorative dividend, average of CCW and CCEJ based on adjusted
share count after the share exchange 42
A holistic approach for value creation
Renewing topline growth, improving profit margins
Committed to investments, best-in-class execution and capabilities
Revenue Growth Management
Vending transformation
Innovation
Targeting 25B Yen in synergies by 2020, another 5B by 2023
Capital structure, dividend payout ratio to be reviewed periodically to
maximize total shareholder return while maintaining flexibility to
pursue expansion opportunities

43
People & Communities
Always connected to our employees and local
communities
Inspiring our Community Sustainability in
people connections all that we do

45
Key Takeaways
Key metrics and picture of success
Stabilize topline, RGM
Revenue Growth initiatives, revenue- Revenue +1.8% CAGR
rich innovation

Value Share
Value share growth
ahead of volume

Value ahead of volume
share growth

Transactions
Growth in smaller,
immediate IC package growth

consumption packs

Deliver strong cash

EBITDA Margin flow from operations >10% EBITDA margin

Return on Equity Optimize balance

(ROE)
sheet to maximize >6%
returns
47
CCBJI: Growth roadmap for 2020 & beyond
Key takeaways
The heart of the decision to form CCBJI:
Bringing together a proven leadership team committed to
growth, partnering with our customers and communities, and
driving shareholder value
A compelling business combination at the right time with clear
opportunities and plans for profitable growth
Working with appropriate speed to make sure we realize our potential
We are making good early progress as we kick off toward 2020 and
beyond

48
Q&A
Appendix
Key Glossaries
DME Abbreviation of Direct Marketing Expenses. Sales promotion-related expenses, including advertisement, rebates, sales, sales
commissions, etc.
FC Abbreviation of Future Consumption. Purchase or sell beverage for future consumption in home, etc. It also means the products
/ SKUs for FC (for example, single packages 1L or more and multi-pack of IC packages) and channels that consumers
purchase the beverages for FC. (for example, supermarket, drug & discounter channels, etc.).
IC Abbreviation of Immediate Consumption. Purchase or sell beverage for consuming it immediately. It also means the products /
SKUs for IC (for example, single packages less than 1L as well as fountain) and channels that consumers purchase the
beverages for IC (for example, vending machines, convenience store channel, etc.).
OBPPC Abbreviation of Occasion, Brand, Package, Price, Channel. A segmentation strategy tailored to consumption opportunities to
drive revenue growth in five areas: occasion, brand, package, price and channel.
Pro forma Assuming integration from January 2017 and estimate 2016 results same standard
PTC Abbreviation of Price, Terms and Conditions, an internal guideline for setting appropriate transaction conditions with customers,
frequently used in conjunction with RGM.
RGM Abbreviation of Revenue Growth Management, an overall strategy and process to grow revenue and profit
RTM Abbreviation of Route-to-Market. A framework, a process, a philosophy, a proven approach for driving profitable growth.

Channel Definitions Vending Retail sales to consumers through vending machine

Supermarket Wholesale to supermarket chains customers
Drugstore & Discounter Wholesale to drugstore and discounter chains customers
Convenience Store Wholesale to convenience store chains customers
Retail & Food Wholesale to grocery store, liquor store, eating & drinking establishments,
online sales channels customers, etc.
Others Wholesale to customers other than above 51
Investor Relations
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