Coca Cola Bottlers Japan : Financial Results (250 1)

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Summary forthe Second Quarter (Semi-Annual) Ended June 30, 2025 (IFRS)

Company name: Coca-Cola Bottlers Japan Holdings Inc. Listing: Tokyo Stock Exchange Securities code: 2579 URL: https://en.ccbj-holdings.com/ Representative: (Title) Representative Director & President (Name) Calin Dragan

August 1, 2025

Inquiries: (Title) Head of Controllers Senior Group

Division, Finance

(Name) Tatsuhiro Ishikawa Telephone: [phone]

Scheduled date to file semi-annual securities report: August 4, 2025

Scheduled date of dividends payment: September 1, 2025 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 second quarter (semi-annual) 2025 (from January 1, 2025 to June 30, 2025)

   1. Consolidated financial results (cumulative)

      (Percentages indicate changes over the same period in the previous fiscal year)

      	Revenue		Business income		Operating income		Net income		Net income attributable to owners of the parent		Total comprehensive income
      	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%
      First half of 2025	417,942	1.6	1,535	—	(92,170)	—	(65,844)	—	(65,892)	—	(65,606)	—
      First half of 2024	411,455	1.8	(2,791)	—	1,207	—	(267)	—	(297)	—	1,128	—

      	Earnings per share	Diluted earnings per share
      	yen	yen
      First half of 2025	(378.02)	—
      First half of 2024	(1.65)	—

      * “Business income” is a measure of our recurring business performance. “Business income” deducts cost of sales and selling, general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.

   2. Consolidated financial position

      	Total assets	Total equity	Equity attributable to owners of parent	Ratio of equity attributable to owners of parent
      As of	million yen	million yen	million yen	％
      June 30, 2025	697,499	379,514	379,255	54.4
      December 31, 2024	804,153	466,443	466,203	58.0

2. Dividends

   	Annual dividends per share
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal year-end	Total
   	yen	yen	yen	yen	yen
   Fiscal year ended December 31, 2024	—	25.00	—	28.00	53.00
   Fiscal year ending December 31, 2025	—	28.00
   Fiscal year ending December 31, 2025(forecast)			—	29.00	57.00

   Note Revisions to the most recently announced dividends forecasts: None

3. Forecast for consolidated financial results 2025 (From January 1, 2025 to December 31, 2025)

(Percentages indicate changes over the same period in the previous fiscal year)

	Revenue		Business income		Operating income		Income before tax		Net income		Net income for the year attributable to owners of parent		Basic earnings per share
FY 2025	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%	million yen	%	yen
	906,100	1.5	23,000	90.9	(67,100)	—	(67,600)	—	(48,400)	—	(48,500)	—	(283.51)

Notes 1. Revisions to the most recently announced forecasts of consolidated financial results: Yes

2. The Company resolved at a meeting of the Board of Directors held on August 1, 2025 to repurchase and cancel the Company’s treasury shares. The Company has considered the impact of the repurchase of treasury shares on basic earnings per share in the forecast of consolidated financial results. Please refer to “2. Condensed Semi-Annual Consolidated Financial Statements and Notes (5) Notes to Condensed Consolidated Financial Statements, (Subsequent events)” on page 16 for details on this repurchase of treasury shares.

* 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: Yes

3. Number of outstanding shares (common shares)

   1. Total number of issued shares at the end of the period (including treasury shares):

      As of June 30, 2025: 183,268,593 shares

      As of December 31, 2024: 183,268,593 shares

   2. Number of treasury shares at the end of the period:

      As of June 30, 2025: 12,301,256 shares

      As of December 31, 2024: 5,573,887 shares

   3. Average number of shares outstanding during the period (cumulative from the beginning of the fiscal year): First half of 2025: 174,307,900 shares

      First half of 2024: 179,540,255 shares

      Note The Company has introduced an Executive reward BIP Trust and Stock-granting ESOP Trust. The Company shares held by these trusts are included in the number of treasury shares as a deduction in the calculation of the number of treasury shares at the end of the period and the average number of shares during the period.

      • The consolidated financial summary is not subject to semi-annual review procedures conducted by certified public accountants or audit firms.

      • Explanation regarding appropriate use of the forecast and 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 materially change due to inherent uncertainties in the forecast. Furthermore, please refer to “1. Qualitative Information on the Financial Summary for the first half period (3) Qualitative 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 the first half period 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 Semi-annual Consolidated Financial Statements and Notes 5

   1. Condensed Semi-annual Consolidated Statement of Financial Position 5

   2. Condensed Semi-annual Consolidated Statements of Income and Comprehensive Income 7

      (Consolidated Statements of Income) 7

      (Condensed Consolidated Statements of Comprehensive Income) 8

   3. Condensed Semi-annual Consolidated Statements of Changes in Equity 9

   4. Condensed Semi-annual Consolidated Statements of Cash Flows 10

   5. Notes to Condensed Consolidated Financial Statements 12

(Notes Relating to Going Concern Assumption) 12

(Changes in Accounting Estimates) 12

(Segment Information) 13

(Subsequent Events) 16

1. ‌Qualitative Information on the Financial Summary for the first half period

   1. ‌Qualitative Information on Consolidated Financial Results

      For details, please refer to our earnings presentation materials available on the Company IR website (https://en.ccbj-holdings.com/ir/library/presentation.php) for our earnings presentation on Friday August 1, 2025, at 5:30 PM (JST). The earnings presentation audio webcast will be available live and on demand through our company website.

      Summary of the Semi-Annual accounting period (January 1, 2025 to June 30, 2025, hereinafter referred as “first half”), is as below.

      Summary of Business Performance

      First half (January 1 to June 30)

      (Millions of yen except sales volume)

      2024		2025	Change (%)
      Revenue	411,455	417,942	1.6
      Sales volume (million cases)	232	230	(1)
      Gross profit	181,204	183,413	1.2
      Selling, General & Administrative Expenses	183,971	181,599	(1.3)
      Other income (Recurring)	561	334	(40.5)
      Other expenses (Recurring)	599	686	14.5
      Investment income on equity method	14	73	405.1
      Business income(loss)	(2,791)	1,535	—
      Other income (Non-recurring)	5,429	839	(84.6)
      Other expenses (Non-recurring)	1,432	94,543	—
      Operating income (loss)	1,207	(92,170)	—
      Net loss attributable to owners of parent	(297)	(65,892)	—

      Note “Business income(loss)” is a measure of our recurring business performance. “Business income(loss)” deducts cost of sales and selling, general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.

      Sales volume in the first half decreased 1% compared to the same period in the prior year, reflecting the negative impact on demand from price revisions implemented in the previous fiscal year and the cycling effect of the full renewal of Ayataka in the same period of the prior year. However, these factors were offset by efforts to strengthen core categories, expand sales space, and implement effective marketing activities, resulting in a growth rate that exceeded the overall market.

      Consolidated revenue was 417,942 million yen (an increase of 6,488 million yen or 1.6% from the same period in the prior year). Wholesale revenue per case improved as a result of price revisions, resulting in higher revenue than in the same period of the prior year.

      Consolidated business income was 1,535 million yen (an increase of 4,326 million yen). Top-line growth and cost savings through transformation contributed to improved profitability, and business income improved while investing at an appropriate level to strengthen the foundation.

      Consolidated operating loss was 92,170 million yen, with loss expanding by 93,376 million yen from the same period in the prior year (1,207 million yen income in the same period in the prior year). Although business income increased compared with the same period in the prior year, this was due to the recording of a non-cash impairment loss in the second quarter (April 1 to June 30) as a result of the revaluation of fixed assets in the vending business to achieve optimal capital allocation in the future. Additionally, Other income (non-recurring) for the first half includes a gain on the sales and disposals of property, plant, and equipment of 815 million yen recognized during the process of optimizing the balance sheet. Other expenses (non-recurring) included an impairment loss of 88,939 million yen mainly due to the impairment in the vending business mentioned above, 3,234 million yen in special retirement allowances related to the voluntary employee retirement program, and 2,108 million yen in business structure improvement costs related to the implementation of fundamental transformation initiatives.

      Net loss attributable to owners of the parent increased by 65,595 million yen (loss increased) with operating loss expanding from the same period in the prior year, it was a loss of 65,892 million yen (297 million yen loss in the same period in the prior year).

      ‌The financial results by segment are as follows.

      The reportable segment classification has been changed from this first half. Accordingly, the comparison and analysis with the first half of the previous year are presented based on the new classification.

      1. Vending Business

         Revenue was 189,660 million yen (a decrease of 2,548 million yen or 1.3% from the same period in the prior year). Segment loss improved by 140 million yen from the same period in the prior year (decrease in loss), resulting in a loss of 1,389 million yen.

      2. OTC Business

         Revenue was 194,174 million yen (an increase of 7,805 million yen or 4.2% from the same period in the prior year). Segment income was 21,004 million yen (an increase of 2,999 million yen or 16.7% from the same period in the prior year).

      3. Food Service Business

         Revenue was 19,833 million yen (an increase of 766 million yen or 4.0% from the same period in the prior year). Segment income was 2,850 million yen (an increase of 612 million yen or 27.3% from the same period in the prior year).

         As announced in “Announcement of New Strategic Business Plan: Vision 2030” dated August 1, 2025, we have upwardly revised our current Strategic Business Plan, “Vision 2028,” and decided to launch “Vision 2030” with the aim of further increasing shareholder value. We will incorporate new elements such as a long-term growth plan developed jointly with Coca-Cola (Japan) Company, Limited, operating the business centered on multiple business units with clear accountability, restructuring of the profit base in the vending business and operating it with a mindset as the world's largest retailer, and the largest shareholder return in our history. We set forth ambitious targets by 2030 such as, business income of approximately 80 billion yen, approximately double the highest level ever recorded, and ROIC (Return on Invested Capital) of 10%, which is approximately double the WACC (Weighted Average Cost of Capital).

   2. Qualitative Information on Consolidated Financial Position

      Assets were 697,499 million yen, a decrease of 106,654 million yen from the end of the previous fiscal year. This is mainly due to a decrease in “Property, plant, and equipment.”

      Liabilities were 317,985 million yen, a decrease of 19,725 million yen from the end of the previous fiscal year. This is mainly due to the decrease in “Lease liabilities.”

      Equity was 379,514 million yen, a decrease of 86,928 million yen. This is mainly due to a decrease in “Retained earnings” and repurchase of treasury shares.

      The cash flow conditions for the first half of the current fiscal year are as follows:

      Net cash used for operating activities was 1,694 million yen (10,380 million yen used for operating activities in the same previous period). This is mainly due to “Increase in inventories” while “Increase in trade and other payables” was recorded.

      Net cash used for investing activities was 16,474 million yen (4,103 million yen used for investing activities in the same previous period). This is mainly due to “Payments for acquisitions of property, plant and equipment and intangible assets”.

      Net cash used for financing activities was 25,123 million yen (5,141 million yen used for financing activities in the same previous period). This is mainly due to “Dividends paid,” and “Payments for purchases of treasury shares.”

      As a result of these activities, cash, and cash equivalents at the end of the first half were 45,169 million yen, a decrease of 43,304 million yen compared to the end of the same previous period.

   3. ‌Qualitative Information on the Future Outlook, such as Forecast of Consolidated Financial Results

      In the first half of the current fiscal year, revenue increased by 1.6% year on year, and business income increased 4.3 billion yen, showing steady progress toward the full-year forecast announced on February 13, 2025. In this context, we have revised our business income forecast upward, factoring in the reduction in depreciation expenses resulting from the recognition of the impairment loss mentioned above, the profit growth trend in the first half, and the negative impact on our profit resulting from changes in marketing investment methods of Coca-Cola (Japan) Company, Limited, in response to evolving market dynamics. Operating income, income before tax, net income, and net income attributable to the owners of parent are now expected to fall below the previous forecast due to the recognition of the impairment loss. Accordingly, we have revised our full-year earnings forecast.

      In addition, there is no change to the dividend forecast as a result of this revision.

2. ‌Condensed Semi-annual Consolidated Financial Statements and Notes

   1. ‌Condensed Semi-annual Consolidated Statement of Financial Position

      Assets

      Current assets:

      (Millions of yen)

      As of December 31, 2024 As of June 30, 2025

      Cash and cash equivalents	88,473		45,169
      Trade and other receivables	119,551		126,369
      Inventories	73,890		83,023
      Other financial assets	688		113
      Other current assets	9,856		13,464
      Total current assets	292,458		268,139
      Non-current assets:
      Property, plant, and Equipment	382,794	298,540
      Right-of-use assets	26,930	17,493
      Intangible assets	63,273	49,323
      Investments accounted for using the equity method	326		419
      Other financial assets	10,908		12,113
      Deferred tax assets	22,933		46,727
      Other non-current assets	4,531		4,745
      Total non-current assets	511,695		429,360
      Total assets	804,153		697,499

      Liabilities and equity Liabilities

      Current liabilities:

      (Millions of yen)

      As of December 31, 2024 As of June 30, 2025

      Trade and other payables	120,367		126,689
      Bonds and debts	1,000		1,000
      Lease liabilities	5,765		6,196
      Other financial liabilities	947		1,120
      Income taxes payables	2,374		1,957
      Other current liabilities	27,488		18,813
      Total current liabilities	157,943		155,775
      Non-current liabilities: Bonds and debts	113,852		113,378
      Lease liabilities	22,047		11,990
      Net defined benefit liabilities	21,803		20,474
      Provisions	1,506		1,474
      Deferred tax liabilities	16,405		11,988
      Other non-current liabilities	4,155		2,905
      Total non-current liabilities	179,767		162,210
      Total liabilities	337,710		317,985
      Equity: Capital stock	15,232		15,232
      Capital surplus	378,459		378,263
      Retained earnings	87,317		16,458
      Treasury shares	(16,297)		(32,470)
      Accumulated other comprehensive income	1,492		1,772
      Equity attributable to owners of parent	466,203		379,255
      Non-controlling interests	240		259
      Total equity	466,443		379,514
      Total liabilities and equity	804,153		697,499

   2. ‌Condensed Semi-annual Consolidated Statements of Income and Comprehensive Income (Consolidated Statements of Income)‌

      (Millions of yen)

      	Semi-annual consolidated accounting period of previous fiscal year (January 1, 2024 to June 30, 2024)		Semi-annual consolidated accounting period of current fiscal year (January 1, 2025 to June 30, 2025)
      Revenue	411,455		417,942
      Cost of sales	230,251		234,529
      Gross profit	181,204		183,413
      Selling and general administrative expenses	183,971		181,599
      Other income	5,990		1,172
      Other expenses	2,031		95,229
      Investment income on equity method	14		73
      Operating income (loss)	1,207		(92,170)
      Financial income	287		237
      Financial expenses	621		326
      Income (loss) for the period before income taxes	873		(92,259)
      Income tax expense (benefit)	1,140		(26,415)
      Net loss for the period	(267)		(65,844)
      Net loss for the period attributable to
      Owners of parent	(297)	(65,892)
      Non-controlling interests	29	48

      Basic loss per share (yen) (1.65) (378.02)

      ‌(Condensed Consolidated Statements of Comprehensive Income)

      Semi-Annual consolidated accounting period of previous fiscal year

      (Six months ended

      June 30, 2024)

      (Millions of yen)

      Semi-Annual consolidated accounting period of current fiscal year

      (Six months ended

      June 30, 2025)

      Net loss for the period (267) (65,844)

      Other comprehensive income

      Items that will not be reclassified subsequently to income or loss:

      Net changes in financial assets measured at fair value through other comprehensive income

      890 974

      Subtotal 890 974

      Items that may be reclassified subsequently to income:

      Cash flow hedges	506		(736)
      Subtotal	506		(736)
      Total other comprehensive income for the period	1,396		238
      Total comprehensive income for the period	1,128		(65,606)
      Comprehensive income attributable to:
      Owners of parent	1,099		(65,654)
      Non-controlling interests	29		48

   3. ‌Condensed Semi-annual Consolidated Statements of Changes in Equity

      Semi-annual consolidated accounting period of the previous fiscal year (Six months ended June 30, 2024)

      Equity attributable to owners of the parent

      (Millions of yen)

      Capital stock

      Capital surplus

      Retained earnings

      Treasury shares

      Accumulated other comprehensive income (loss)

      Total

      Non-controlling interests

      Total

      Balance as of January 1, 2024 15,232		451,389	88,365	(85,362)	223	469,847	174	470,021
      Comprehensive income for the period Net income(loss) for the period －		—	(297)	—	—	(297)	29	(267)
      Other comprehensive income －		—	—	—	1,396	1,396	—	1,396
      Total comprehensive income for the period －		—	(297)	—	1,396	1,099	29	1,128
      Transactions with owners Dividends of surplus	—	—	(4,486)	—	—	(4,486)	(17)	(4,503)
      Purchase of treasury share	—	—	—	(4)	—	(4)	—	(4)
      Disposal of treasury share	—	(183)	—	471	—	289	—	289
      Transactions of share-based payment	—	168	—	—	—	168	—	168

      —	—	293	—	(293)	—	—	—
      —	—	—	—	225	225	—	225

      Reclassification from accumulated other comprehensive income to retained earnings Reclassification from accumulated other

      comprehensive income to non-financial assets Other	—	—	—	—	—	—	4	4
      Total transactions with owners	—	(14)	(4,193)	467	(68)	(3,808)	(13)	(3,822)
      Balance as of June 30, 2024	15,232	451,375	83,875	(84,895)	1,551	467,138	190	467,328

      Semi-annual consolidated accounting period of the current fiscal year (Six months ended June 30, 2025)

      Equity attributable to owners of the parent

      (Millions of yen)

      Capital stock

      Capital surplus

      Retained earnings

      Treasury shares

      Accumulated other comprehensive income (loss)

      Total

      Non-controlling interests

      Total

      Balance as of January 1, 2025 15,232		378,459	87,317	(16,297)	1,492	466,203	240	466,443
      Comprehensive income for the period Net income (loss) for the period －		—	(65,892)	—	—	(65,892)	48	(65,844)
      Other comprehensive income －		—	—	—	238	238	—	238
      Total comprehensive income for the period －		—	(65,892)	—	238	(65,654)	48	(65,606)
      Transactions with owners Dividends of surplus	—	—	(4,975)	—	—	(4,975)	(29)	(5,004)
      Purchase of treasury stock	—	(2)	—	(16,588)	—	(16,590)	—	(16,590)
      Disposal of treasury stock	—	(193)	—	415	—	222	—	222
      Transactions of share-based payment	—	15	—	—	—	15	—	15

      —	—	8	—	(8)	—	—	—
      —	—	—	—	63	63	—	63

      Reclassification from accumulated other comprehensive income to retained earnings Reclassification from accumulated other

      comprehensive income to non-financial assets Other	—	(15)	—	—	(13)	(29)	—	(29)
      Total transactions with owners	—	(195)	(4,967)	(16,173)	42	(21,294)	(29)	(21,323)
      Balance as of June 30, 2025	15,232	378,263	16,458	(32,470)	1,772	379,255	259	379,514

   4. ‌Condensed Semi-annual Consolidated Statements of Cash Flows

      Semi-annual consolidated accounting period of previous fiscal year

      (Six months ended

      (Millions of yen)

      Semi-annual consolidated accounting period of current fiscal year

      (Six months ended

      	June 30, 2024)			June 30, 2025)
      Cash flows from operating activities Income (loss) for the period before income tax benefit		873		(92,259)
      Adjustments for: Depreciation and amortization		22,866		22,617
      Impairment loss		304		88,939
      Increase in allowance for doubtful accounts		43		72
      Interest and dividends income		(79)		(46)
      Interest expenses		390		317

      Share of income of entities accounted for using equity method

      (14) (73)

      Gain on sale of property, plant, and equipment (5,501) (815)

      Loss on disposal and sale of property, plant, and equipment, and intangible assets Increase in trade and other receivables	405 (7,236)		554 (6,874)
      Increase in inventories	(12,859)		(9,134)
      Increase in other assets	(6,441)		(4,654)
      Increase in trade and other payables	11,860		10,124
      Increase in net defined benefit liabilities	1,254		371
      Decrease in other liabilities	(11,441)		(9,023)
      Others	(266)		(20)
      Subtotal	(5,841)		98
      Interest received	1		12
      Dividends received	78		34
      Interest paid	(349)		(289)
      Income taxes paid	(4,270)		(2,409)
      Income taxes refund	1		861
      Net cash used for operating activities	(10,380)		(1,694)

      Cash flows from investing activities

      Payments for acquisitions of property, plant and equipment and intangible assets

      Proceeds from sales of property, plant and equipment and intangible assets

      (14,312) (15,510)

      9,583 1,863

      Payments for purchases of other financial assets (2) (2)

      Proceeds from sale of other financial assets 671 46

      Payment for sale of shares of subsidiary due to change in scope of consolidation	—		(2,757)
      Others	(42)		(114)
      Net cash used for investing activities	(4,103)		(16,474)

      Cash flows from financing activities

      Semi-annual consolidated accounting period of previous fiscal year

      (Six months ended

      June 30, 2024)

      (Millions of yen)

      Semi-annual consolidated accounting period of current fiscal year

      (Six months ended

      June 30, 2025)

      Repayments of long-term loans payable	(500)		(500)
      Repayments of lease liabilities	(3,174)		(3,251)
      Proceeds from disposal of treasury shares	289		222
      Payments for purchases of treasury shares	(4)		(16,590)
      Dividends paid	(4,486)		(4,975)
      Dividends paid to non-controlling interests	(17)		(29)
      Proceeds from sale and leaseback	2,747		—
      Others	4		—
      Net cash used for financing activities	(5,141)		(25,123)
      Effect of exchange rate change on cash and cash equivalents	—		(13)
      Decrease in cash and cash equivalents	(19,624)		(43,304)
      Cash and cash equivalents at the beginning of the year	113,660		88,473
      Cash and cash equivalents at the end of the period	94,036		45,169

   5. ‌Notes to Condensed Consolidated Financial Statements (Notes Relating to Going Concern Assumption)‌

Not applicable.

‌(Changes in Accounting Estimates)

(The Change in useful life of right-of-use assets)

The group had been depreciating right-of-use assets related to sales bases, etc. by using the straight-line method, generally over 15 years from the commencement date. However, in line with our initiatives to build a flexible and responsive supply chain, we are working on consolidating existing sales bases, shifting away from long-term contracts for sales bases due to customer service approaches diversification, and putting Integrated Distribution Centers (IDC) into operation from the fiscal year ending December 2025 to strengthen our logistics network. For those reasons, the useful life (lease period) has been revised from the current fiscal year.

As the result of this change, compared with those based on the previous useful life, the right-of-use assets have been decreased by 9,689 million yen and the lease liabilities have been decreased by 9,655 million yen at the end of the first half of the current fiscal year. Also, loss for the period before income taxes has increased by 35 million yen.

‌(Segment Information)

1. Overview of reportable segments

   Operating segments are defined as the components of the Group for which separate financial information is available that is evaluated regularly by the chief operating decision maker in making resource allocation decisions and in assessing performance. The group is organized and managed based on its major products, services, or business activities, and has established three business and reportable segments: "Vending Business," "OTC (Over the Counter) Business," and "Food Service Business." There are no business segments that are not included in the reportable segments, nor are there any aggregated segments.

   Reportable Segments Major products, services or business activities

   Procurement, manufacturing and sales, bottling, packaging, distribution,

   Vending business

   OTC Business

   Food Service Business

   marketing as well as other operations related to vending machines of beverages in Japan's vending channel

   Procurement, manufacturing and sales, bottling, packaging, distribution, and marketing of beverages in Japan's OTC (Over the Counter) channels such as supermarkets, drugstores, discount stores, convenience stores and online channels

   Procurement, manufacturing and sales, bottling, packaging, distribution, and marketing of beverages in Japan's restaurants and food service channels

   （Change in reportable segments, etc.）

   As stated in “1. Qualitative Information on the Financial Summary for the first half period (1) Qualitative Information on Consolidated Financial Results”, the Group formulated a new mid-term business plan, “Vision 2030,” which was announced on August 1, 2025. While the Group had previously operated as a single segment, the “Beverage Business,” it has now established an operational structure aligned with the characteristics of each business unit to facilitate the execution and achievement of the objectives of “Vision 2030.” Furthermore, with the establishment of a management reporting structure by business unit, the reportable segments have been changed, effective from the current semi-annual consolidated fiscal period, to the “Vending Business,” “OTC Business,” and “Food Service Business.”

   Accordingly, the segment information for the previous semi-annual consolidated accounting period has been prepared based on the revised reportable segment classification.

2. Information about reportable segments

   Information by reportable segments of the group are as follows. Segment income is based on business income before the allocation of corporate overhead expenses.

   Semi-Annual consolidated accounting period of the previous fiscal year (January 1, 2024 – June 30, 2024)

   Reportable segment Others

   (Million yen)

   Vending OTC Food Service

   (Note 1) Total

   Revenue from external customers 192,208	186,368	19,067	13,812	411,455
   Intersegment sales or transfer －	—	—	—	—
   Total revenue 192,208	186,368	19,067	13,812	411,455
   Segment income (loss) (Note 2) (1,529)	18,005	2,238	(21,505)	(2,791)
   Notes 1. The “Others” category is defined as follows.

   1. “Others” of revenue from external customers represents revenues generated from business activities that are not attributable to any reportable segment, which include sales to other Coca-Cola bottlers in Japan.

   2. “Others” of segment income (loss) includes 1,298 million yen of revenues generated from business activities that are not attributable to any reportable segment and 22,804 million yen of corporate overhead expenses. Corporate overhead expenses mainly consist of general and administrative expenses not allocated to any reportable segments.

1. Segment income (loss) is based on business income (loss). “Business income (loss)” deducts cost of sales and selling, general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.

   Semi-Annual consolidated accounting period of the current fiscal year (January 1, 2025 – June 30, 2025)

   (Million yen)

   Reportable segment Others

   Vending OTC Food Service

   (Note 1) Total

   Revenue from external customers 189,660	194,174	19,833	14,276	417,942
   Intersegment sales or transfer －	—	—	—	—
   Total revenue 189,660	194,174	19,833	14,276	417,942
   Segment income (loss) (Note 2) (1,389)	21,004	2,850	(20,930)	1,535
   Notes 1. The “Others” category is defined as follows.

   1. “Others” of revenue from external customers represents revenues generated from business activities that are not attributable to any reportable segment, which include sales to other Coca-Cola bottlers in Japan.

   2. “Others” of segment income (loss) includes 1,079 million yen from income that is not attributable to any reportable segment and 22,009 million yen in corporate overhead expenses. Corporate overhead expenses mainly consist of general and administrative expenses not attributable to any reportable segments.

2. Segment income (loss) is based on business income (loss). “Business income (loss)” deducts cost of sales and selling, general and administrative expenses from revenue, and includes other income and expenses which we believe are recurring in nature.

‌Adjustments from the total of segment income to income for the period before income taxes of the first half of the previous fiscal year and the current fiscal year are as follows.

(Million yen)
	Semi-Annual consolidated accounting period of previous fiscal year (Six months ended June 30, 2024)	Semi-Annual consolidated accounting period of current fiscal year (Six months ended June 30, 2025)
Total segment income (loss)	(2,791)	1,535
Gains on sales of property, plant, and equipment	5,429	815
Losses on sales and disposals of property, plant, and equipment	(42)	(5)
Gain on sale of shares of subsidiaries	—	23
Transformation-related expenses	(1,067)	(2,108)
Impairment loss	(304)	(88,939)
Special retirement allowance	(18)	(3,234)
Other	(1)	(258)
Operating income (loss)	1,207	(92,170)
Financial income	287	237
Financial expenses	(621)	(326)
Income (loss) for the period before income taxes	873	(92,259)

(Subsequent Events)

(Resolution of repurchasing treasury shares)

The Company resolved at a meeting of the Board of Directors held on August 1, 2025, to repurchase the Company’s own shares pursuant to the provisions of Article 156, paragraph (1) of the Companies Act, as applied by replacing the relevant terms pursuant to the provision of Article 165, paragraph (3) of the same Act. The details are described below.

1. Reason for repurchasing treasury shares

   The Company recognize that returning profits to shareholders and improving capital efficiency are important business management issues, and as part of a comprehensive and continuous shareholder return program to increase shareholder value under our new Strategic Business Plan “Vision 2030”, announced on August 1, 2025, we will conduct repurchase of the treasury shares.

2. Details of matters related to the repurchasing

1. Class of shares to be repurchased : Common shares

2. Total number of shares to be repurchased : 15,000,000 shares (upper limit)

   (8.7% of total issued shares outstanding, excluding treasury shares)

3. Total value of share to be repurchased : 30 billion yen (upper limit)

4. Period of share repurchase : November 1, 2025 to October 31, 2026

5. Method of repurchase : Market purchase through the Tokyo Stock Exchange