Coca Cola Bottlers Japan : Announcement of Change in reportable segments, loss due to impairment and revision of Full-Year 2025 Earnings Forecast (250 3)

To whom it may concern:

Company name Coca-Cola Bottlers Japan Holdings, Inc.

August 1, 2025

Representative Representative Director & President Calin Dragan (Code No. 2579 TSE Prime Market）

Contact Head of Controllers

Senior Group Division, Finance

(Tel. 0800-919-0509)

Tatsuhiro Ishikawa

Announcement of Change in reportable segments, loss due to impairment and revision of Full-Year 2025 Earnings Forecast

Coca-Cola Bottlers Japan Holdings Inc. (the Company) announces that its Board of Directors resolved the change in reportable segments at a meeting held on August 1, 2025. In addition, the company announced that it had recorded an impairment loss in the consolidated financial results for the second quarter of 2025 and revised its full-year earnings forecast for the fiscal year ending December 31, 2025, which was announced on February 13, 2025, as follows.

1. Change in reportable segments

   1. Change in the reportable segments

      As stated in "Announcement of New Strategic Business Plan: Vision 2030" on August 1, 2025, the Group formulated a new strategic business plan, "Vision 2030." 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 into three segments: "Vending Business," "OTC Business," and "Food Service Business."

      *For further details on the new strategic business plan, please refer to the "Announcement of New Strategic Business Plan: Vision 2030."

   2. Business of each reportable segment after the change

      Reportable segments	Business
      Vending business	Procurement, manufacturing and sales, bottling, packaging, distribution, marketing as well as other operations related to vending machines of beverages in Japan's vending channel
      OTC business	Procurement, manufacturing and sales, bottling, packaging, distribution, and marketing of beverages in Japan's OTC (over the counter) channels such as supermarkets, drug stores, discount stores, convenience stores and online channels
      Food Service business	Procurement, manufacturing and sales, bottling, packaging, distribution, and marketing of beverages in Japan's restaurants and food service channels

   3. Timing of the change in reportable segments

   New reportable segments have been adopted in the "Consolidated Financial Summary for the Second Quarter (Semi-Annual) Ended June 30, 2025 (IFRS)", which was announced today.

2. Impairment losses

   Since the announcement of our Strategic Business Plan "Vision 2028" in 2023, we have achieved significant results in both business performance and transformation. Over the past two years, we have improved our business income by more than 26 billion yen, achieved top-line growth, and realized cost reductions of approximately 10 billion yen through transformation initiatives. As the key initiatives outlined in "Vision 2028" have steadily progressed and delivered results, we have formulated a new Strategic Business Plan, "Vision 2030," as an upward revision of "Vision 2028" to pursue further growth going forward. Previously, for the application of impairment accounting under IAS 36 Impairment of Assets, the Company has identified the entire company as a single cash-generating unit. However, in conjunction with the establishment of a management reporting structure by business unit to facilitate the execution and achievement of the objectives set forth in "Vision 2030," the Company has identified three cash-generating units: "Vending," "OTC," and "Food Service." Among these, since indications of possible impairment were identified for the "Vending" cash-generating unit, an impairment test was conducted. As a result, the carrying amount of the assets in this unit was written down to their recoverable amount, and an impairment loss of 88,135 million yen was recognized during the second quarter of FY2025. We believe this will help accelerate the restructuring of our profit base toward the optimal allocation of capital in the future.

3. Revision of earnings forecast

1. Revision of consolidated financial forecast for the fiscal year ending December 31, 2025 (January 1, 2025 through December 31, 2025)

   (Note) As disclosed in the "Announcement of decision on matters related to Repurchase of treasury shares" dated August 1, 2025, the Company has resolved to repurchase its treasury shares. The basic earnings per share forecast announced this time takes into account the impact of the repurchase of treasury shares.

2. Reasons for revision of full-year earnings forecast

In the semi-annual accounting period (from January 1, 2025 to June 30, 2025), 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.

*Figures in the above forecast are based on information available to management at the time of announcement. Due to inherent uncertainties in the forecast, actual results may differ materially from the forecast.

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