Coca-cola Bottlers Japan Holdings Inc. TSE:2579
Coca Cola Bottlers Japan : Annual Securities Report (240 1)
Source: MarketScreener
Annual Securities Report
（Article 24, Paragraph 1 of the Financial Instruments and
Exchange Act）
Fiscal Year (67th Fiscal Term) From January 1, 2024 to December 31, 2024
Coca-Cola Bottlers Japan Holdings Inc.
(E00417）
Table of Contents
[Cover Page]
Part I. Corporate Information....................................................................................................................................................................4
Section I. Corporate overview...............................................................................................................................................................4
1. Changes in key management indicators.............................................................................................................................................4
2. History...............................................................................................................................................................................................6
3. Description of business......................................................................................................................................................................7
4. Information on affiliates....................................................................................................................................................................9
5. Employees.......................................................................................................................................................................................10
II. Business overview .......................................................................................................................................................................... 12
1. Management policy, management environment and issues to be addressed .................................................................................... 12
2. Our Approach to Sustainability and Initiatives ................................................................................................................................ 14
3. Risk factors ...................................................................................................................................................................................... 29
4. Management's analysis of financial condition, results of operations and cash flows ....................................................................... 32
5. Important agreements for business .................................................................................................................................................. 37
6. Research and development activities ............................................................................................................................................... 37
III. Information about facilities ........................................................................................................................................................... 38
1. Overview of capital expenditures .................................................................................................................................................... 38
2. Major facilities ................................................................................................................................................................................ 38
3. Planned additions, disposals facilities ............................................................................................................................................. 39
IV. Information about reportable segment ........................................................................................................................................... 40
1. Information about shares ................................................................................................................................................................. 40
2. Acquisition of treasury shares .......................................................................................................................................................... 45
3. Dividend policy ............................................................................................................................................................................... 47
4. Corporate governance ...................................................................................................................................................................... 48
V. Accounting information .................................................................................................................................................................. 75
1. Consolidated Financial Statements .................................................................................................................................................. 76
2. Financial Statements (Non-consolidated) ...................................................................................................................................... 140
Ⅵ. Overview of operational procedures for shares ........................................................................................................................... 153
Ⅶ. Reference information about the Company ................................................................................................................................ 154
1. Information about parent company of reportable segment ............................................................................................................ 154
2. Other reference information .......................................................................................................................................................... 154
Part Ⅱ. Information about company which provides guarantee to reportable segment .......................................................................... 155
[Cover Page] | Securities Report |
[Underlying article] | Article 24, Paragraph 1 of the Financial Instruments and Exchange Act |
[Recipient] | Director-General of the Kanto Local Finance Bureau |
[Submission date] | March 27, 2025 |
[Fiscal year] | 67th fiscal term (from January 1, 2024, to December 31, 2024) |
[Company name] | Coca-Cola Bottlers Japan Holdings Inc. |
[Name and position of representative] | Calin Dragan, Representative Director & President |
[Address of head office] | 9-7-1 Akasaka, Minato-ku, Tokyo |
[Telephone number] | +81-800-919-0509 |
[Name of administrative contact] | Tatsuhiro Ishikawa, Head of Controllers Senior Group Division, Finance |
[Closest contact point] | 9-7-1 Akasaka, Minato-ku, Tokyo |
[Telephone number] | +81-800-919-0509 |
[Name of administrative contact] | Tatsuhiro Ishikawa, Head of Controllers Senior Group Division, Finance |
[Location provided for viewing] | |
Tokyo Stock Exchange, Inc. | |
（2-1 Nihonbashi Kabutocho, Chuo-ku, Tokyo） |
This is an English translation of the original Annual Securities Report ("Yukashoken Hokokusho") filed with the Director-General of the Kanto Local Finance Bureau via Electronic Disclosure for Investors` NETwork ("EDINET") pursuant to the Financial Instruments and Exchange Act of Japan. In the event of any discrepancy between Yukashoken Hokokusho and this English translation, Yukashoken Hokokusho shall prevail.
The Independent Auditor`s report that is included in Yukashoken Hokokusho is not translated to English. Therefore, it is not included in this English translation.
For the purpose of this Annual Securities Report, unless context indicates otherwise, the "Company," "we," and "CCBJH" refer to Coca-Cola Bottlers Japan Holdings Inc., and the "Group" refers to the Company and its subsidiaries.
Part I. Corporate Information
Section I. Corporate overview
1. Changes in key management indicators
(1) Consolidated business indicators
Issuance | International Financial Reporting Standards | ||||
63rd | 64th | 65th | 66th | 67th | |
Fiscal year | December 2020 | December 2021 | December 2022 | December 2023 | December 2024 |
Revenue (Millions of yen) | 791,956 | 785,837 | 807,430 | 868,581 | 892,681 |
Net income (loss) for the year before income taxes (Millions of yen) | (12,065) | (21,683) | (12,491) | 3,224 | 12,896 |
Net income (loss) for the year attributable to owners of the parent (Millions of yen) | (4,715) | (2,503) | (8,070) | 1,871 | 7,309 |
Comprehensive income(loss) attributable to owners of the parent (Millions of yen) | (2,214) | 780 | (5,005) | 2,209 | 8,721 |
Equity attributable to owners of the parent (Millions of yen) | 501,643 | 492,320 | 476,216 | 469,847 | 466,203 |
Total assets (Millions of yen) | 939,603 | 867,111 | 826,737 | 844,832 | 804,153 |
Equity attributable to owners of the parent per share (Yen) | 2,797.03 | 2,745.12 | 2,655.38 | 2,618.49 | 2,623.62 |
Earnings (Losses) per share (Yen) | (26.29) | (13.96) | (45.00) | 10.43 | 40.76 |
Diluted earnings per share (Yen) | － | － | － | 10.36 | 40.48 |
Ratio of equity attributable to owners of the parent (%) | 53.4 | 56.8 | 57.6 | 55.6 | 58.0 |
Ratio of income to equity attributable of the parent (%) | (0.9) | (0.5) | (1.7) | 0.4 | 1.6 |
PER (Times) | (61.2) | (94.6) | (31.9) | 194.2 | 61.3 |
Cash flows from operating activities (Millions of yen) | 43,716 | 35,982 | 42,717 | 59,102 | 48,883 |
Cash flows from investing activities (Millions of yen) | (52,076) | 15,271 | (23,090) | (14,287) | (16,128) |
Cash flows from financing activities (Millions of yen) | 20,912 | (67,134) | (46,050) | (15,229) | (57,942) |
Cash and cash equivalents at the end of the year (Millions of yen) | 126,378 | 110,497 | 84,074 | 113,660 | 88,473 |
Number of the employees (People) [Average number of temporary workers] | 16,274 [4,008] | 15,083 [3,777] | 14,484 [3,416] | 14,010 [3,163] | 14,084 [2,888] |
(Note)
1. Diluted earnings per share in the 63rd fiscal year is not shown in the above table, as there are no residual shares. Diluted earnings per share is not presented, as the effects of dilutive share on earnings per share are anti-dilutive in the 64th and 65th fiscal year.
2. The above indicators are based on the consolidated financial statements prepared in accordance with International Financial Reporting Standards ("IFRS".)
3. Fractions of one million yen are rounded to the nearest million, and percentages are rounded to the nearest unit.
4. In the 63rd fiscal year, the businesses of Q'sai and its subsidiaries were classified as discontinued operations as a result of the decision made in December 2020 to sell all shares in Q'sai Co. Ltd. held by the Company.
5. We have introduced an Executive reward BIP Trust and Stock-granting ESOP Trust from in December 2023, and the Company shares held by these trusts are recorded as treasury shares in the consolidated financial statements. Accordingly, the Company shares held by these trusts are included in the treasury shares to be deducted from the end of years' shares and the average number of shares during the year for calculating the amount of Equity attributable to owners of the parent per share, Basic earnings (losses) per share, and Diluted earnings per share.
(2) Management indicators of the Company
Fiscal term | 63rd | 64th | 65th | 66th | 67th | |
Fiscal year-end | December 2020 | December 2021 | December 2022 | December 2023 | December 2024 | |
Operating revenue | (Millions of yen) | 19,202 | 5,797 | 5,640 | 6,052 | 5,773 |
Recurring income | (Millions of yen) | 14,345 | 1,201 | 1,869 | 1,301 | 1,332 |
Net income | (Millions of yen) | 15,742 | 18,395 | 1,562 | 1,349 | 2,379 |
Capital share | (Millions of yen) | 15,232 | 15,232 | 15,232 | 15,232 | 15,232 |
Total number of issued shares | (Thousands of shares) | 206,269 | 206,269 | 206,269 | 206,269 | 183,269 |
Net assets | (Millions of yen) | 342,391 | 351,812 | 344,402 | 336,844 | 325,751 |
Total assets | (Millions of yen) | 587,306 | 543,410 | 502,941 | 498,355 | 449,025 |
Net assets per share | (Yen) | 1,909.09 | 1,961.66 | 1,920.38 | 1,877.26 | 1,833.21 |
Dividends paid per share | (Yen) | 25.00 | 50.00 | 50.00 | 50.00 | 53.00 |
(Interim dividends paid per share) | (－) | (25.00) | (25.00) | (25.00) | (25.00) | |
Net profit per share | (Yen) | 87.77 | 102.57 | 8.71 | 7.52 | 13.27 |
Diluted earnings per share | (Yen) | － | 102.33 | 8.68 | 7.47 | 13.17 |
Ratio of equity to asset | (%) | 58.3 | 64.7 | 68.5 | 67.6 | 72.5 |
Ratio of return on equity | (%) | 4.7 | 5.3 | 0.4 | 0.4 | 0.7 |
PER | (Times) | 18.3 | 12.9 | 164.9 | 269.3 | 188.2 |
Dividend payout ratio | (%) | 28.5 | 48.7 | 573.9 | 664.9 | 399.5 |
Number of the employees [Average number of temporary workers] | (People) | － [－] | － [－] | － [－] | － [－] | － [－] |
Total Shareholder Return | (%) | 58.5 | 50.0 | 56.0 | 78.8 | 97.6 |
[Comparative index: TOPIX Net Total Return Index] | (%) | [107.4] | [121.1] | [118.1] | [151.5] | [182.5] |
Highest share price | (Yen) | 3,070 | 2,131 | 1,655 | 2,186 | 2,519 |
Lowest share price | (Yen) | 1,462 | 1,236 | 1,311 | 1,267 | 1,702 |
(Note)
1. Diluted earnings per share in the 63rd fiscal year is not shown in the above table, as there are no residual shares.
2. The figures of less than one million yen have been rounded off to the nearest million yen.
3. The number of employees has been omitted since we are holding company.
4. The highest and lowest share prices are from Tokyo Stock Exchange Prime Market since April 4th,2022.
5. The "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) and others were applied from the beginning of the 65th fiscal year. There is no impact on key management indicators for the 65th term.
6. We have introduced Executive reward BIP Trust and Stock-granting ESOP Trust in December 2023. The
Company shares held by these trusts are included in the treasury shares to be deducted from end of years' shares and the average number of shares during the year for calculating the amount of net assets per share, net profit per share, and diluted earnings per share.
2. History
Month and Year | Summary |
Dec. 1960 Jul. 1961 Jun. 1962 Jul. 1962 Mar. 1963 Apr. 1963 Sep. 1972 Jul. 1973 Jun. 1994 Nov. 1996 Jun. 1998 Feb. 1999 Jun. 1999 Jul. 1999 Apr. 2001 Feb. 2002 Apr. 2002 Jul. 2002 Oct. 2002 Jan. 2005 Jul. 2006 Apr. 2007 Jan. 2008 Apr. 2008 Jan. 2009 Jan. 2010 Oct. 2010 Apr. 2013 Jan. 2014 May. 2015 Apr. 2017 Jan. 2018 Feb. 2021 Jan. 2024 | Nichibei Inryo Co., Ltd. Established with 50 million yen in capital at 1-5 Nagahama-cho, Fukuoka City for manufacture and sale of soft drinks Headquarters move to 92 Tenjin-cho, Fukuoka City Agreement on the manufacture and sale of Coca-Cola and Fanta concluded with The Coca-Cola Company and the Coca-Cola (Japan) Company, Limited. Granting the right to manufacture and sell Coca-Cola and Fanta in Fukuoka, Saga, and Nagasaki Prefectures Began sales Corporate name changed to Nichibei Coca-Cola Bottling Co., Ltd. Headquarters move to 4127-29 Aza Ashitsugaura, Ohaza Hakozaki, Fukuoka City (now 7-9-66, Hakozaki, Higashi-ku, Fukuoka City) Amended the previous agreements with The Coca-Cola Company and the Coca-Cola (Japan) Company, Limited and newly concluded a license agreement with the Coca-Cola (Japan) Co., Ltd. Corporate name changed to Kitakyushu Coca-Cola Bottling Co., Ltd. Listed on the Fukuoka Share Exchange Listed on the second section of Tokyo Stock Exchange Listed on the first section of the Tokyo Stock Exchange Kitakyushu Coca-Cola Sales Co., Ltd. Established Some business transferred to Kitakyushu Coca-Cola Sales Co., Ltd. Consolidated with Sanyo Coca-Cola Bottling Co., Ltd. And corporate name changed to Coca-Cola West Japan Co., Ltd. With the consolidation, Sanyo Coca-Cola Bottling's subsidiary Sanyo Coca-Cola Sales Co., Ltd. Became a subsidiary of the Company Listed on the first section of Osaka Securities Exchange and Hiroshima Share Exchange Acquired Mikasa Coca-Cola Bottling Co., Ltd. Share, making it a subsidiary West Japan Products Co., Ltd. (later Coca-Cola West Japan Products, Co., Ltd.) established. Some business transferred to Coca-Cola West Japan Products Co., Ltd. (now Coca-Cola West Products, Co., Ltd.) Merged with both Sanyo Coca-Cola Sales Co., Ltd. And Kitakyushu Coca-Cola Sales Co., Ltd. Four subsidiaries running vending business integrated to establish Nishinihon Beverage Co., Ltd. (made defunct through merger dated January 1, 2010) Amended the previous agreement with Coca-Cola (Japan) Company, Limited, and newly concluded a bottler's agreement with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited. Amended the previous agreements with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited, and newly concluded a manufacturing agreement and a distributorship agreement with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited. Corporate name changed to Coca-Cola West Holdings Co., Ltd. And performed a demerger in which rights related to the sales of beverages and food products were succeeded by the newly established Coca-Cola West Japan Co., Ltd. Implemented share exchange making Kinki Coca-Cola Bottling Co., Ltd. A wholly owned subsidiary With the share exchange, Kinki Coca-Cola Bottling's subsidiary Kansai Beverage Service Co., Ltd. (later Nishinihon Beverage Co., Ltd.) became a subsidiary of the Company Invested in Minami Kyushu Coca-Cola Bottling Co., Ltd., and made it an equity-method affiliate Integrated two subsidiaries running manufacturing business to establish Coca-Cola West Products Co., Ltd. Integrated subsidiaries running sales equipment service business to establish Coca-Cola West Equipment Service Co., Ltd. Merged with Coca-Cola West Japan Co., Ltd., Kinki Coca-Cola Bottling Co., Ltd. And Mikasa Coca-Cola Bottling Co., Ltd. And changed the corporate name to Coca-Cola West Company, Limited Amended the previous agreements with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited, and newly concluded a bottler's agreement with The Coca-Cola Company and Coca-Cola (Japan) Company, Limited. Reorganized three subsidiaries running sales to establish West Vending Co., Ltd. (later Coca-Cola Bottlers Japan Vending Inc.), Nishinihon Beverage Co., Ltd. And Coca-Cola West Retail Service Co., Ltd. (Coca-Cola Bottlers Japan Business Services Inc.) Acquired Q'sai CO., LTD. Share, making it a wholly owned subsidiary Implemented share exchange making Minami Kyushu Coca-Cola Bottling Co., Ltd. A wholly owned subsidiary Merged with Minami Kyushu Coca-Cola Bottling Co., Ltd. Acquired Shikoku Coca-Cola Bottling Co., Ltd. Share, making it a subsidiary Implemented share exchange making Coca-Cola East Japan Co., Ltd. Later Coca-Cola Bottlers Japan Inc. a wholly owned subsidiary Company name changed to Coca-Cola Bottlers Japan Inc. In order to transition to a holding company structure, an absorption-type split was conducted in which businesses other than the Group Management Business and the Asset Management Business were transferred to New CCW Establishment Preparation Co., Ltd.. Corporate name changed to Coca-Cola Bottlers Japan Holdings Inc. Transferred all shares of Q'sai.CO., LTD. NeoArc Inc., a joint venture with Accenture Japan Ltd. Established |
3. Description of business
The Group's corporate group consists of the Company, 12 subsidiaries, 1 affiliate with Beverage business as its primary operations.
In addition, The Coca-Cola Company is an "other affiliated company".
The following diagram sets out the positioning and business of each company in the Coca-Cola Bottlers Japan Holdings Group's (the "Group") principal business activities.
Please note that the Company is a specified listed company as defined in Article 49, Paragraph 2 of the Cabinet Office Order on Restrictions on Securities Transactions. Thus, the criteria for assessing the material facts under the insider trading regulations are determined based on consolidated figures.
Beverage business
(Manufacture and sales of Coca-Cola and other beverages)
a. Sales of beverages
Coca-Cola Bottlers Japan Inc., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Coca-Cola Bottlers Japan Business Services Inc., etc.
b. Manufacture of beverages
Production of beverages is engaged by Coca-Cola Bottlers Japan Inc.,
(Business related to vending machines)
It is engaged by Coca-Cola Bottlers Japan Inc., etc.
(Procurement of ingredients and materials)
It is engaged by Coca-Cola Bottlers Japan Inc.
(Development, maintenance, and operations of information systems)
They are engaged by Coca-Cola Bottlers Japan Inc. and NeoArc Inc.
The Coca-Cola Company engages in sales of beverages (including beverage base).
(Business Flow Diagram)
The matters described above are shown in the business flow diagram below.
Bevarage business
Coca-Cola Bottlers Japan Holdings Inc.
Manufacture and sales of beverage etc.
Coca-Cola Bottlers Japan Inc.
Coca-Cola Bottlers Japan Vending Inc. FV Japan Co., Ltd.
Coca-Cola Bottlers Japan Business Service Inc. NeoArc Inc., etc.
*1
Resources Co., Ltd
*2
The Coca-Cola Company
(Note)
No mark : Consolidated subsidiary
*1 Equity method affiliate *2 Other affiliated company
4. Information on affiliates
(1) Consolidated Subsidiaries
Name
Address Common shares (Millions of yen) Principal businesses
% of voting rights interests Relation Coca-Cola Bottlers Japan Inc.
Minato-ku, Tokyo
100
Manufacture and sale of beverages and foods
100.0
Interlocking directorate: yes Leasing of facilities: yes
(Note) 2,3
Coca-Cola Bottlers Japan Vending Inc. (Note) 1
Shinjuku-ku, Tokyo
80
Operation of vending machines
100.0 (100.0)
――――
FV Japan Co., Ltd. (Note) 1
Toshima-ku, Tokyo
100
Sale of beverages and foods
100.0
――――
(100.0) Coca-Cola Bottlers Japan Business Services Inc. (Note) 1
Minato-ku, Tokyo On-site administration 80 related with sales of beverage/food
100.0 (100.0) Interlocking directorate: yes NeoArc Inc. (Note) 1
Minato-ku, Tokyo
Back-office operations 20
on consignment and development of computer systems
81.0 (81.0) Interlocking directorate: yes Other 7 companies
(Note) | 1. | The figures in parentheses for the % of voting rights interests column indicates the % of indirect voting |
interests, which is a part of the total voting interest. | ||
2. | It is classified as specified subsidiaries. | |
3. | As for Coca-Cola Bottlers Japan Inc., the proportion of net sales (excluding internal sales among consolidated | |
companies) to consolidated sales exceeds 10%. |
Major income statement information. (JGAAP) (1) Net revenues
847,477 million yen
(2) Recurring income
10,545 million yen
(3) Net income
9,033 million yen
(4) Net assets
429,481 million yen
(5) Total assets
651,107 million yen
(2) Equity Method Affiliates
Name | Address | Common shares (Millions of yen) | Principal businesses | % Of voting rights interests | Relation |
Resources Co., Ltd. (Note) | Takamatsu-shi, Kagawa | 40 | Vending machine-related business | 44.0 (44.0) | ―――― |
(Note) The figures in parentheses for the % of voting rights interests column indicates the % of indirect voting interests, which is a part of the total voting interest.
(3) Other Affiliated Companies
Name | Address | Common shares (Millions of dollars) | Principal businesses | % of voting rights interests | Relation |
The Coca-Cola Company (Note) 1, 2 | Atlanta Georgia U.S. A | 1,760 | Sales of beverages (including concentrate) | 18.74 (18.74) | Interlocking directorate: yes |
(Note) | 1. | The figures in parentheses for the % of voting rights owned are indirect ownership percentage. |
2. | "Yukashoken Todokedesho" (Securities Registration Statement) or "Yukashoken Hokokusho" (Annual Securities | |
Report) has been submitted. |
5. Employees
(1) Consolidated Basis
As of December 31, 2024
Segment | Number of employees |
Beverage business | 14,084 [2,888] |
Total | 14,084 [2,888] |
(Note)
1. The number of employees excludes employees seconded from the Group to outside the Group and includes employees who are seconded from outside the Group to the Group and the number of temporary employees is shown separately in parentheses as the average number over one year.
2. Temporary employees include part-timers and casual workers, but not workers dispatched by staffing companies.
(2) Parent-alone Basis
Descriptions are omitted because the Company is a holding company.
(3) Labor Unions
The Group has the Coca-Cola Bottlers Japan Group East Labor Union and the Coca-Cola Bottlers Japan Group West Labor
Union, in addition to labor unions formed in certain subsidiaries, and the total number of members of the labor unions was 12,065 as of December 31, 2024. Labor Union-management relations have remained cordial.
(4) Female Manager Ratio, Percentage of Male Employees Taking Childcare Leave, and Gender Wage Gap
Consolidated (The Company and Major Consolidated Subsidiaries) (Note) 1
Consolidated Subsidiaries Required Disclosure (Note) 6
Female manager ratio
(%) Percentage of Male Employees Taking Childcare Leave (%)
Gender Wage Gap (%) (Note) 2,4,5
Non-permanent
(Note) 2
All Employees Permanent Employees
(Note) 3
Employees
2022
2023
2024
2022
Coca-Cola Bottlers Japan Inc.
6.5
7.3
9.6
76.0
Coca-Cola Bottlers Japan Vending Inc.
0.0
0.5
1.1
57.3
FV Japan Co., Ltd.
2.5
2.6
2.4
100.0
Coca-Cola Bottlers Japan Business Services Inc.
14.5
15.8
6.1
76.9
NeoArc Inc. (Note) 8
- - 16.7
-
2024 | 2022 | 2023 | 2024 | 2022 | 2023 | 2024 | 2022 | 2023 | 2024 | |
101.1 | 69.0 | 69.8 | 72.7 | 78.7 | 78.7 | 82.2 | 78.4 | 77.9 | 84.9 | |
106.8 | 69.0 | 68.4 | 68.5 | 78.7 | 79.1 | 82.7 | 108.6 | 108.5 | 104.6 | |
- | ||||||||||
100.0 | 49.5 | 51.2 | 50.1 | 69.2 | 64.5 | 62.3 | 94.8 | 97.1 | 99.7 | |
(Note) 7 | ||||||||||
75.0 | 100.0 | 69.9 | 70.5 | 62.9 | 84.7 | 84.2 | 82.1 | 89.9 | 99.3 | 95.9 |
100.0 | - | - | 75.4 | - | - | 78.3 | - | - | 67.4 |
-
2023
93.0
75.2
(Note)
1. The data for "Consolidated (The Company and Major Consolidated Subsidiaries)" is calculated including Coca-Cola Bottlers Japan Inc., Coca-Cola Bottlers Japan Vending Inc., FV Japan Co., Ltd., Coca-Cola Bottlers Japan Business Services Inc., NeoArc Inc. (from 2024), Coca-Cola Bottlers Japan Benefit, and Coca-Cola Customer
Marketing Co, Ltd, in addition to the Company.
2. Data regarding the female manager ratio and the gender wage gap are calculated and disclosed based on the provisions of the Act on the Promotion of Women's Active Engagement in Professional Life (Act No. 64 of 2015).
10