Coca Cola Bottlers Japan : Financial Results (264 1)

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

February 13, 2026

Inquiries: (Title) Head of Controllers Senior Group

Division, Finance

(Name) Tatsuhiro Ishikawa Telephone: +81-800-919-0509

Scheduled date of annual general meeting of shareholders: March 26, 2026

Scheduled date of dividends payment: March 30, 2026

Scheduled date to file annual securities report: March 19, 2026

Preparation of supplementary materials on 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 fiscal year ended December 31, 2025 (from January 1, 2025 to December 31, 2025)

   1. Consolidated financial results (Percentages indicate year-on-year changes)

      	Revenue		Business income		Operating income		Net income
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      December 31, 2025	893,805	0.1	24,525	103.6	(72,385)	—	(50,668)	—
      December 31, 2024	892,681	2.8	12,046	494.8	13,390	289.1	7,389	288.3
      	Net income for the year attributable to owners of the parent		Total comprehensive income		Basic earnings per share		Diluted earnings per share
      Fiscal year ended	Millions of yen	%	Millions of yen	%		yen		yen
      December 31, 2025	(50,763)	—	(47,906)	—	(296.51)			—
      December 31, 2024	7,309	290.7	8,800	292.7		40.76		40.48
      	Ratio of income to equity attributable to owners of the parent		Ratio of income before tax to total assets		Ratio of operating income to revenue
      Fiscal year ended		%		%		%
      December 31, 2025		(12.0)		(9.7)		(8.1)
      December 31, 2024		1.6		1.6		1.5

      Reference: Investment income (loss) on equity method Fiscal Year 2025: 105 millions of yen

      Fiscal Year 2024: 16 millions of yen

      * “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 parent owners	Ratio of equity attributable to parent owners	Equity attributable to owners of the parent per share
      As of	Millions of yen	Millions of yen	Millions of yen	%	yen
      December 31, 2025	698,486	380,199	379,892	54.4	2,292.46
      December 31, 2024	804,153	466,443	466,203	58.0	2,623.62

   3. Consolidated cash flows

      	Net cash generated from (used for)			Cash and cash equivalents at the end of the year
      	Operating activities	Investing activities	Financing activities
      Fiscal year ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
      December 31, 2025	61,123	(25,744)	(47,507)	76,330
      December 31, 2024	48,883	(16,128)	(57,942)	88,473

2. Dividends

   	Annual dividends per share					Total dividend payments	Dividend payout ratio (consolidated)	Ratio of dividends to net assets attributable to owners of parent (consolidated)
   	First quarter-end	Second quarter-end	Third quarter-end	Fiscal Year-end	Total
   Fiscal year ended	yen	yen	yen	yen	yen	Millions of yen	%	%
   December 31, 2024	—	25.00	—	28.00	53.00	9,619	130.0	2.0
   December 31, 2025	—	28.00		32.00	60.00	10,254	—	2.4
   Fiscal year ending December 31, 2026 (forecast)	—	35.00	—	37.00	72.00		51.5

3. Forecast of consolidated financial results 2026 (from January 1, 2026 to December 31, 2026)

   (Percentages indicate year-on-year changes)

   	Revenue		Business income		Operating income		Income before tax
   FY 2026	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
   	902,700	1.0	35,000	42.7	36,000	—	34,700	—
   	Net income		Net income attributable to owners of the parent		Basic earnings per share
   FY 2026	Millions of yen	%	Millions of yen	%		yen
   	22,600	—	22,500	—		139.93

   Notes

   1. Changes in significant subsidiaries during the current period: : None

   2. Changes in accounting policies, 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 issued shares (common shares)

      1. Total number of issued shares at the end of the period (including treasury shares): As of December 31, 2025: 171,268,593 shares

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

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

         As of December 31, 2025: 5,554,691 shares

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

      3. Average number of shares outstanding during the period:

Fiscal year ended December 31, 2025: 171,198,963 shares

Fiscal year ended December 31, 2024: 179,341,304 shares

Note: The Company has introduced an Executive Reward BIP Trust and Stock-granting ESOP Trust, and the Company shares held by these trusts are

included in the treasury shares to be deducted from the number of treasury shares at the end of the year and the number of average shares during the year.

(Reference) Summary of the Non-consolidated Financial Results

1. Non-consolidated financial results for the fiscal year ended December 31, 2025 (from January 1, 2025 to December 31, 2025)

   1. Non-consolidated financial results

      (Percentages indicate year-on-year changes)

      	Operating revenue		Operating income		Recurring income		Net income
      Fiscal year ended	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      December 31, 2025	13,998	142.3	9,849	546.1	9,519	614.5	9,185	286.1
      December 31, 2024	5,773	(4.6)	1,524	(1.5)	1,332	2.4	2,379	76.4

      	Earnings per share	Diluted earnings per share
      Fiscal year ended	yen	yen
      December 31, 2025	53.65	—
      December 31, 2024	13.27	13.17

   2. Non-consolidated financial position

      	Total assets	Net assets	Net assets to total assets ratio	Net assets per share
      As of	Millions of yen	Millions of yen	%	yen
      December 31, 2025	418,543	295,152	70.5	1,781.10
      December 31, 2024	449,025	325,751	72.5	1,833.21

      Reference: Equity Fiscal Year 2025: 295,152 millions of yen Fiscal Year 2024: 325,751 millions of yen

      • The consolidated financial result is not subject to audit procedures conducted by certified public accountants or an 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. Overview of Operating Results, etc. (1) Analysis of Operating Results (outlook for next fiscal year) on page 5.

      Table of Contents

      1. Overview of Operating Results, etc. 2

         1. Analysis of Operating Results 2

         2. Analysis of Financial Position 6

         3. Basic Policies for Income Distribution and Dividends for FY2025 and FY2026 6

      2. Basic Concept Concerning the Selection of Accounting Standards 6

      3. Consolidated Financial Statements and Notes 7

         1. Consolidated Statement of Financial Position 7

         2. Consolidated Statements of Income and Comprehensive Income 9

            (Consolidated Statements of Income) 9

            (Consolidated Statements of Comprehensive Income) 10

         3. Consolidated Statements of Changes in Equity 11

         4. Consolidated Statements of Cash Flows 12

         5. Notes to Consolidated Financial Statements 14

            (Notes Relating to Going Concern Assumption) 14

            (Changes in Accounting Estimates) 14

            (Additional information) 14

            (Segment Information, etc.) 16

            (Stock Per Share Information) 19

            (Significant Subsequent Events) 19

      4. Others 20

      Changes in Key Consolidated Management Indicators 20

      1. ‌Overview of Operating Results, etc.

         1. ‌Analysis of Operating Results

            During the current consolidated fiscal year (January 1, 2025 to December 31, 2025, hereinafter referred to as ‘the current fiscal year’), the total domestic nonalcoholic ready-to-drink (NARTD) beverage market is estimated to have declined by approximately 2% in volume compared to the prior fiscal year. This was due to factors such as declining consumer sentiment from rising inflation and reduced demand stemming from price revisions by soft drink companies, despite a continued gradual improvement in the domestic economy. Furthermore, the business environment remained uncertain due to cost pressures from external factors such as rising commodity and material prices and unstable foreign exchange rates.

            Under these circumstances, we positioned 2025 as the year of “achieving both profit growth and strengthening foundation.” By steadily implementing top-line growth strategies focused on maximizing profits and key transformation measures, we have built a robust growth foundation capable of generating stable profits, while maintaining existing profit growth trends. In commercial areas, under our profitability-focused strategy, we have strengthened core categories, expanded sales floor space, and implemented effective marketing initiatives across all commercial channels. Furthermore, as part of major initiatives to improve profitability, we implemented two rounds of price revisions for our products in May and October. At the same time, we strived to maintain product shipment prices. We have also focused on improving the productivity of our vending machine operations. As a key initiative of our vending transformation, we revamped the assortment system that determines product selections for vending machines. By optimizing product selection based on profitability, we have improved vending machine visit frequency and product replenishment rates, thereby improving vending operation efficiencies. In the supply chain area, we have pursued further evolution of our supply chain network by building more advanced, data-driven processes. We have promoted a “local production for local consumption model,” centered on manufacturing products at plants closer to consumption areas, thereby improving transportation efficiency and reducing transport distances. Additionally, we have implemented productivity improvement initiatives at each plant, establishing flexible manufacturing systems to support the “local production for local consumption model” while expanding manufacturing capacity. To further evolve our Sales and Operations Planning (S&OP) process, we have introduced a platform for optimizing supply planning. Additionally, to further strengthen our future logistics network, we proceeded with the launch of an Integrated Distribution Center (IDC) enabling more advanced consolidation and optimal allocation of product inventory. Our first IDC in the Kyushu area commenced operations, allowing us to swiftly advance the consolidation of product inventory alongside the integration and consolidation of sales and logistics locations. In the back office and IT fields, we have worked with our joint venture company established with Accenture, NeoArc Inc., to further advance the standardization and automation of business processes. We have leveraged the capacity generated through these efficiency improvements to achieve cost savings, including appropriately bringing externalized operations in-house.

            We have also continued to focus our efforts on activities to achieve ESG goals based on co-creation of value with society. Through the

            collaborative efforts with customers and government agencies to promote water resource conservation and PET bottle recycling, we have been aiming at reducing environmental impact through the creation of a recycling-oriented society and to expand business opportunities through collaboration. Regarding container recycling, we have been advancing to expand the implementation areas for horizontal recycling (Bottle to Bottle and CAN to CAN) of empty containers collected from recycling boxes installed alongside vending machines. We have also advanced investments aimed at reducing future environmental impact. This includes conducting road tests of large trucks utilizing “renewable diesel,” a next-generation biofuel contributing to decarbonization, and initiating demonstration experiments using tea and coffee grounds to generate clean electricity and utilize the recovered high-purity CO₂ as a manufacturing power source. To strengthen human capital, as the second year of implementing our renewed HR strategy for sustainable growth, we advanced both “strengthening talent and organization” for strategic execution and “fostering a culture that promotes employee well-being” to maximize employee potential. Through our efforts to strengthen the talent pipeline across recruitment, development, and retention in order to increase the female manager ratio, we achieved our target of a 10% female manager ratio ahead of plan. Simultaneously, by strengthening talent development and self-improvement support, we increased the average amount spent per employee on training and skill development by 32% compared to the prior period. We have also worked to advance Diversity, Equity & Inclusion (DE&I), supported working parents and shared childcare, and promoted flexible work arrangements. Our ESG initiatives, including these efforts, have been highly recognized, and we have been selected as a constituent of various indices, including the FTSE4Good Index Series and the FTSE JPX Blossom Japan Index.

            Additionally, in August, we decided to revise upward our Strategic Business Plan Vision 2028 and launched a new Strategic Business Plan, Vision 2030, aimed at further increasing shareholder value. New elements include greater collaboration with the Coca-Cola (Japan) Company, Limited, business operations conducted by multiple business units with clearly defined accountability, rebuilding the earnings base in the vending business and operating it with the mindset of the world's largest retailer, and implementing the largest shareholder return in our history. We aim to achieve ambitious targets by 2030 of business income exceeding 80 billion yen, approximately double our historical peak, and a Return on Invested Capital (ROIC) that exceeds 10%, approximately double our cost of capital.

            Please refer to our earnings presentation materials available on the Company IR website (https://en.ccbj-holdings.com/ir/libr ary/presentation.php) for our earnings presentation on Monday, February 16, 2026, at 1:30 PM (JST). The earnings presentat ion audio webcast will be available live and on demand through our company website.

            A summary of the results for the current fiscal year is as follows.

            Summary of Business Performance

            Full Year (January to December)

            (Millions of yen except sales volume)

            2024		2025	Change (%)
            Revenue	892,681	893,805	0.1
            Sales volume (million cases)	501	501	(0)
            Gross profit	402,450	399,304	(0.8)
            Selling, general & administrative expenses	389,534	373,475	(4.1)
            Other income (recurring)	927	662	(28.5)
            Other expenses (recurring)	1,812	2,071	14.3
            Investment income on equity method	16	105	543.7
            Business income	12,046	24,525	103.6
            Other income (non-recurring)	5,487	1,323	(75.9)
            Other expenses (non-recurring)	4,143	98,233	—
            Operating income (loss)	13,390	(72,385)	—
            Net income (loss) attributable to owners of parent	7,309	(50,763)	—

            ※ “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.

            Consolidated revenue was 893,805 million yen (an increase of 1,124 million yen or 0.1% compared to prior fiscal year). Sales volume remained virtually flat year over year, outperforming a market experiencing negative growth as the consumption environment proved more challenging than initially anticipated. Additionally, while affected by changes in channel mix, the impact of price revisions improved wholesale revenue per case. As a result, revenue, which had been projected to decline compared to the prior period, exceeded the revised plan in November and remained at the same level as the prior fiscal year.

            Consolidated business income was 24,525million yen (an increase of 12,480 million yen or 103.6%, compared to the prior fiscal year). In addition to the profit contribution from increased revenue, cost savings achieved through transformation and benefits from improved manufacturing efficiency contributed to improved profitability. Business income exceeded the initial plan by 23%, surpassing the revised plan that had been raised twice during the period, and reached a level double that of the prior fiscal year.

            Consolidated operating income was a loss of 72,385 million yen, a decrease of 85,775 million yen from the prior fiscal year, when consolidated operating income was 13,390 million yen. This decline occurred despite an increase in business income compared with the prior fiscal year. During the second quarter (April 1 to June 30), the vending business revalued fixed assets to optimize future capital allocation, resulting in the recognition of a non-cash impairment loss. Other income (non-recurring) for the cumulative third quarter period included a gain of 1,250 million yen on the sale and disposal of property, plant, and equipment, recorded as part of balance sheet optimization efforts. Other expenses (non-recurring) included an impairment loss of 90,497 million yen, primarily attributable to the aforementioned impairment in the vending business, special retirement allowances of 3,433 million yen associated with the implementation of a voluntary employee retirement program, and business structure improvement costs of 3,634 million yen associated with fundamental transformation initiatives.

            Net loss attributable to owners of the parent increased by 58,072 million yen (increase in loss) with operating loss expanding from the prior fiscal year. The loss was 50,763million yen (7,309 million yen profit in the prior fiscal year).

            Financial results by segment are as follows.

            The reportable segment classification has been changed from the second quarter. Accordingly, the comparison and analysis of the fiscal year ended December 31, 2025 with the fiscal year ended December 31, 2024 are presented based on the new classification.

            1. Vending Business

               Revenue amounted to 399,880 million yen (a decrease of 11,074 million yen, or 2.7%, compared to the prior fiscal year). Segment income was 11,266 million yen (an increase of 6,077 million yen or 117.1%, compared to the prior fiscal year).

            2. OTC Business

               Revenue amounted to 417,949 million yen (an increase of 7,097 million yen or 1.7%, compared to the prior fiscal year). Segment income was 46,975 million yen (a decrease of 2,650 million yen or 5.3%, compared to the prior fiscal year).

            3. Food Service Business

               Revenue amounted to 45,323 million yen (an increase of 3,456 million yen or 8.3%, compared to the prior fiscal year). Segment income was 8,775 million yen (an increase of 1,891 million yen or 27.5%, compared to the prior fiscal year).

               Sales volume trends (% change from the same period of the prior fiscal year)

               Sales volume for the full year was flat year over year and outperformed overall market growth. This performance was achieved despite the negative impact of price revisions on demand, reflecting efforts to strengthen core categories, expand sales floor space, and implement effective marketing activities. In addition, wholesale revenue per case improved across all channels following the price revisions, continuing the upward trend from the prior year.

               Turning to channel performance, in Supermarkets, sales volume of large PET bottle products decreased by 2% despite efforts to secure shelf space by fully leveraging new products. This decline was mainly due to price revisions and cycling of the temporary volume surge in the prior year related to the Nankai Trough earthquake alert.

               At Drugstores and Discounters, similar to supermarket, sales volume was impacted by price revisions the volume decline due to price revisions and other factors. However, driven by special demand resulting from temporary supply shortages in the beverage industry during the fourth quarter (October 1 to December 31), sales volume increased by 2%.

               In the Convenience Store channel, sales volume decreased by 5%. Despite this decline, the company strengthened the rollout of new products and customer-exclusive items and implemented effective, customer-focused marketing activities, which contributed to an improvement in profitability. Performance was impacted by a continued challenging competitive environment and the strategic implementation of promotion expense controls, including rebates.

               In the Vending channel, initiatives to capture demand through digital applications, including effective campaigns via the smartphone app Coke ON, delivered results. However, sales volume declined by 5% due to continued market contraction and reduced sales volume following price revisions. Meanwhile, wholesale revenue per case in vending improved by 90 yen compared to the prior period due to price revisions.

               Online sales volume increased by 17%, driven by successful initiatives such as strengthening product offerings and acquiring subscription service users through customer collaboration. In the Food Service channel, we achieved 9% volume growth while improving profitability through price revisions and other measures. This performance was supported by initiatives to expand product offerings for each customer and efforts to secure new business.

               By product category in the nonalcoholic ready-to-drink (NARTD) beverage segment, the sparkling category saw a 5% increase in sales volume. This growth was driven by the expansion of Coca-Cola and Coca-Cola Zero in restaurants and online channels, along with contributions from Fanta and Sprite. The tea category saw volume increase by 1%, despite the impacts of price revisions. Growth was supported by the continued success of Ayataka, which achieved double-digit growth in the prior period after a full renewal and grew by 2% in this period due to the launch and renewal of multiple products including Ayataka Koi Ryokucha. Contributions from the renewed Kocha Kaden also supported this category growth. Coffee sales volume decreased by 1%, largely due to the impact of price revisions and lower sales of canned and bottle can product volumes. This decline occurred despite contributions from newly launched Georgia products, campaign effects, and growth in medium PET bottle products. Water sales volume decreased by 10%, significantly impacted by price revisions and the cycling of strong demand recorded in the prior period. The sports category saw a 4% decline, reflecting lower sales volume of large PET bottle products at supermarkets, drugstores and discounters following price revisions. This decline occurred despite sales volume growth in online channels. Juice sales volume increased by 6%, driven by expanded sales of Minute Maid Orange in restaurants and other outlets. Wholesale revenue per case also improved as a result of price revisions.

               In the alcohol category, sales volume decreased by 15% despite efforts to strengthen the category, including the renewal of multiple products under the Lemon-Dou brand and the launch of Jack Daniel's & Canada Dry Ginger Highball. This decline was mainly due to a challenging market environment.

               (Outlook for the next fiscal year)

               Regarding the outlook for the overall domestic NARTD beverage market, market value is expected to increase in 2026 compared with 2025, driven by higher prices following price revisions implemented by beverage companies. Sales volume is expected to decline slightly however, due to rising prices weakening consumer sentiment, the cycling of last year’s record-breaking heat wave, and reduced demand following the price revisions. The operating environment is expected to remain challenging. Cost pressures are rising, driven by higher commodity and packaging prices, exchange rates, transportation and personnel costs.

               Against this backdrop, we have positioned fiscal year 2026, the first of our new mid-term business plan, Vision 2030, announced in August 2025, as “a year of great progress toward achieving our ambitious long-term goals.” We will pursue initiatives to enhance competitiveness and profitability through business unit-driven management, while strengthening our operational foundation through transformation to improve capital efficiency. In addition, we will strive to further enhance shareholder value through business growth and expanded shareholder return initiatives.

               In the Commercial area, we will focus on initiatives that enable profitable top-line growth. These include continued investment in core categories, commercial activities with a strong focus on profitability, including pricing revisions, further transformation of the vending channel through the use of advanced technologies, and enhanced market execution through optimized product portfolios and marketing plans. By business unit, in the Vending Business, we will accelerate the rebuilding of a sustainable profit base through technology-driven transformation, expanded placement of vending machines that contribute to higher profitability, operational efficiency improvements, network optimization, and digital investments that support mid- to long-term growth. In the Over the Counter (OTC) Business, we will strengthen the foundation for sustainable, high-quality profit growth by expanding selling space through enhanced core products aligned with consumer needs, implementing ROI-based promotional investments, and enhancing collaboration with key customers. In the Food Service Business, we will expand consumption occasions and pursue sustainable growth through proactive value proposals to customers as well as efficient and targeted initiatives aligned with growth opportunities in each region. Furthermore, across all business units, we will continue to reinforce our strategic partnership with Coca Cola (Japan) Co., Ltd., leveraging this collaboration as a key driver of growth.

               In the Supply Chain area, we will continue to improve advancing productivity improvements through the “local production for local consumption” model in both manufacturing and logistics, while enhancing our ability to respond swiftly to demand-driven supply fluctuations. In logistics, the deployment of Integrated Distribution Centers (IDCs) will further streamline and consolidate sales and logistics operations, enabling overall network optimization. In manufacturing, a new aseptic production line at the Saitama Plant is scheduled to commence operations in the second half of the year, strengthening manufacturing capacity across the Kanto region. Moreover, in 2026, we will embed the new supply chain planning platform introduced in December 2025 as the foundation of our Sales and Operations Planning (S&OP) process. By leveraging comprehensive data and enhanced analytical capabilities, we will pursue further process improvements. In addition, we will advance the design and implementation of a new transportation management system and evaluate enhancements to our warehouse management systems. These technology platforms will serve as a foundation for advancing Vision 2030 and improving ROIC through productivity gains and process optimization.

               In the Back office and IT areas, we will continue to strengthen the foundation for data-driven management through the integration of IT systems and data, as well as by promoting operational efficiency through the use of advanced technologies.

               Furthermore, by ensuring appropriate management of capital investments and improving the balance sheet, we will seek to enhance capital efficiency and advance efforts to improve ROIC in line with the objectives of Vision 2030. We will also continue to focus on sustainability initiatives and human capital development to support long-term growth.

               As a result of these initiatives, for the fiscal year ending December 31, 2026, consolidated revenue is forecasted to be 902,700 million yen, representing an increase of 1.0% year over year. Consolidated business income is expected to increase by 42.7% year over year to 35,000 million yen, and consolidated operating income is forecasted to reach 36,000 million yen (compared with a consolidated operating loss of 72,385 million in the current fiscal year). Net income attributable to owners of the parent is expected to be 22,500 million yen (compared with a net loss attributable to owners of the parent of 50,763 million yen in the current fiscal year).

               With respect to shareholder returns, in line with the shareholder value enhancement policy under Vision 2030, we plan to increase annual dividends per share by 12 yen, representing a 20% increase compared with the current fiscal year, targeting 72 yen per share (forecast). In addition, we plan to complete the 30-billion-yen share repurchase program, undertaken for the second consecutive year, by October. By expanding shareholder returns in tandem with profit growth, we aim to further enhance shareholder value.

         2. ‌Analysis of Financial Position

            Total assets amounted to 698,486 million yen, a decrease of 105,667 million yen from the end of the prior year. This was mainly due to a decrease in “cash and cash equivalents,” as well as reductions in “property, plant, and equipment,” and “intangible assets” resulting from the recognition of impairment losses.

            Total liabilities amounted to 318,287 million yen, a decrease of 19,423 million yen from the end of the prior year. This was mainly due to the decrease in “lease liabilities” and “deferred tax liabilities.”

            Total equity was 380,199 million yen, a decrease of 86,244 million yen from the end of the prior year. This was mainly attributable to a decrease in “retained earnings” and a reduction in “capital surplus” resulting from the cancellation of treasury shares, while “treasury shares” decreased, which means capital increased, because of the cancellation of treasury shares.

            Cash flow conditions for the fiscal year ended December 31, 2025 are as follows:

            Net cash generated from operating activities was 61,123 million yen (48,883 million yen generated from operating activities in the prior fiscal year). This was mainly due to “depreciation and amortization” and “impairment loss”, recorded in excess of the “loss for the period before income tax.”

            Net cash used in investing activities was 25,744 million yen (16,128 million yen used for investment activities in the prior fiscal year). This was mainly due to “payments for acquisitions of property, plant and equipment and intangible assets,” while “proceeds from sale of other financial assets” was recorded.

            Net cash used in financing activities was 47,507 million yen (57,942 million yen used for financing activities in the prior fiscal year). This was mainly due to “payments for purchases of treasury shares” and “dividends paid.”

            As a result of these activities, cash and cash equivalents as of December 31, 2025 amounted to 76,330 million yen, a decrease of 12,143 million yen from the fiscal year ended December 31, 2024.

         3. ‌Basic Policies for Income Distribution and Dividends for FY2025 and FY2026

            We periodically review our capital structure and dividend payout ratio to maximize shareholder returns while maintaining flexibility to pursue growth opportunities. We seek to use retained earnings to fund investments for sustainable business growth and further enhance corporate value.

            With respect to dividends, our basic policy is to provide active and stable returns to shareholders. Interim and year-end dividends are determined after comprehensive consideration of business performance, growth investments, and internal reserves. Under our Strategic Business Plan Vision 2030, we aim to achieve and maintain a consolidated dividend payout ratio of 40% and a consolidated dividend on equity (DOE) ratio of 2.5%. During the relevant period, we will implement a progressive dividend, under which the annual dividend per share is maintained or increased year over year.

            For the fiscal year ended December 31, 2025, we paid an interim dividend of 28 yen per share and plan to pay a year-end dividend of 32 yen per share, resulting in a total annual dividend of 60 yen per share, an increase of 7 yen compared with the prior fiscal year. For the fiscal year ending December 31, 2026, we plan to pay an interim dividend of 35 yen per share and a year-end dividend of 37 yen per share, resulting in a total annual dividend of 72 yen per share, an increase of 12 yen compared with the prior fiscal year.

            Additionally, under our Strategic Business Plan Vision 2030, we have announced plans to repurchase the cumulative total of 150 billion yen in the treasury shares by 2030. Since November 2025, it has continued repurchasing 30 billion yen in the treasury shares to further enhance shareholder value.

            Regarding future shareholder returns, we remain committed to comprehensively reviewing business performance trends and financial conditions and will examine the most appropriate measures.

      2. ‌Basic Concept Concerning the Selection of Accounting Standards

         Coca-Cola Bottlers Japan Holdings Group (The Group) has prepared its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) since the fiscal year ended December 2018, to enhance international comparability and improve the usefulness of the financial statements for the Company’s shareholders and investors.

      3. ‌Consolidated Financial Statements and Notes

         1. ‌Consolidated Statement of Financial Position

            (Millions of yen)

            As of December 31, 2024 As of December 31, 2025

            Assets

            Current assets:

            Cash and cash equivalents	88,473		76,330
            Trade and other receivables	119,551		114,385
            Inventories	73,890		71,622
            Other financial assets	688		1,172
            Other current assets	9,856		8,584
            Subtotal	292,458		272,092
            Assets held for sale	—		2,634
            Total current assets	292,458		274,726

            Non-current assets:

            Property, plant and equipment	382,794	299,336
            Right-of-use assets	26,930	19,761
            Intangible assets	63,273	48,951
            Investments accounted for using the equity	326	451
            method
            Other financial assets	10,908		9,682
            Deferred tax assets	22,933		41,288
            Other non-current assets	4,531		4,291
            Total non-current assets	511,695		423,760
            Total assets	804,153		698,486

            (Millions of yen)

            As of December 31, 2024 As of December 31, 2025

            Liabilities and equity Liabilities

            Current liabilities:

            Trade and other payables	120,367		123,236
            Bonds and debts	1,000		63,978
            Lease liabilities	5,765		6,364
            Other financial liabilities	947		478
            Income taxes payables	2,374		1,527
            Other current liabilities	27,488		24,531
            Total current liabilities	157,943		220,115
            Non-current liabilities: Bonds and debts	113,852		49,924
            Lease liabilities	22,047		13,595
            Net defined benefit liabilities	21,803		19,670
            Provisions	1,506		1,541
            Deferred tax liabilities	16,405		10,904
            Other non-current liabilities	4,155		2,538
            Total non-current liabilities	179,767		98,172
            Total liabilities	337,710		318,287
            Equity: Capital stock	15,232		15,232
            Capital surplus	378,459		347,743
            Retained earnings	87,317		30,156
            Treasury shares	(16,297)		(14,810)
            Accumulated other comprehensive income	1,492		1,571
            Equity attributable to owners of parent	466,203		379,892
            Non-controlling interests	240		307
            Total equity	466,443		380,199
            Total liabilities and equity	804,153		698,486

         2. ‌Consolidated Statements of Income and Comprehensive Income

            ‌(Consolidated Statements of Income)			(Millions of yen)
            	Year ended December 31, 2024		Year ended December 31, 2025
            Revenue	892,681		893,805
            Cost of sales	490,231		494,501
            Gross profit	402,450		399,304
            Selling and general administrative expenses	389,534		373,475
            Other income	6,414		1,985
            Other expenses	5,955		100,303
            Investment income on equity method	16		105
            Operating income (loss)	13,390		(72,385)
            Financial revenue	337		444
            Financial expense	832		778
            Income (loss) for the year before income taxes	12,896		(72,718)
            Income tax expense	5,507		(22,051)
            Net income (loss) for the year	7,389		(50,668)
            Net income (loss) for the year attributable to
            Owners of the parent	7,309		(50,763)
            Non-controlling interests	79		95
            Basic earnings (losses) per share (yen)	40.76		(296.51)
            Diluted earnings per share (yen)	40.48		—

            ‌(Consolidated Statements of Comprehensive Income)
            			(Millions of yen)
            	Year ended December 31, 2024		Year ended December 31, 2025
            Net income (loss) for the period	7,389		(50,668)
            Other comprehensive income
            Items that will not be reclassified subsequently to income or loss:
            Remeasurements of defined benefit plans	248		966

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

            1,023 1,957

            Subtotal 1,272 2,923

            Items that may be reclassified subsequently to income or loss:

            Cash flow hedges	140		(161)
            Subtotal	140		(161)
            Total other comprehensive income for the period	1,411		2,761
            Total comprehensive income for the period	8,800		(47,906)
            Comprehensive income attributable to: Owners of parent	8,721		(48,001)
            Non-controlling interests	79		95

         3. ‌Consolidated Statements of Changes in Equity

            Year ended December 31, 2024

            Equity attributable to owners of the parent

            (Millions of yen)

            Capital stock

            Capital surplus

            Retained earnings

            Treasury shares

            Accumulated other Total Comprehensive income

            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 for the period	—	—	7,309	—	—	7,309	79	7,389
            Other comprehensive income	—	—	—	—	1,411	1,411	—	1,411
            Total comprehensive income for the period	—	—	7,309	—	1,411	8,721	79	8,800
            Transactions with owners
            Dividends of surplus	—	—	(8,975)	—	—	(8,975)	(17)	(8,993)
            Purchase of treasury shares	—	(0)	—	(4,568)	—	(4,569)	—	(4,569)
            Disposal of treasury shares	—	(183)	—	472	—	289	—	289
            Cancellation of treasury shares	—	(73,161)	—	73,161	—	—	—	—
            Transactions of share-based payment	—	415	—	—	—	415	—	415

            —	—	618	—	(618)	—	—	—
            —	—	—	—	476	476	—	476

            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	—	(72,930)	(8,357)	69,065	(142)	(12,365)	(13)	(12,378)
            Balance as of December 31, 2024	15,232	378,459	87,317	(16,297)	1,492	466,203	240	466,443

            Year ended December 31, 2025

            Equity attributable to owners of the parent

            (Millions of yen)

            Capital stock

            Capital surplus

            Retained earnings

            Treasury shares

            Accumulated other Total comprehensive income

            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 loss for the period	—	—	(50,763)	—	—	(50,763)	95	(50,668)
            Other comprehensive income	—	—	—	—	2,761	2,761	—	2,761
            Total comprehensive income for the period	—	—	(50,763)	—	2,761	(48,001)	95	(47,906)
            Transactions with owners
            Dividends of surplus	—	—	(9,763)	—	—	(9,763)	(29)	(9,791)
            Purchase of treasury shares	—	(54)	—	(30,111)	—	(30,165)	—	(30,165)
            Disposal of treasury shares	—	(209)	—	455	—	246	—	246
            Cancellation of treasury shares	—	(31,143)	—	31,143	—	—	—	—
            Transactions of share-based payment	—	706	—	—	—	706	—	706
            Reclassification from accumulated other comprehensive income to retained earnings	—	—	3,365	—	(3,365)	—	—	—
            Reclassification from accumulated other comprehensive income to non-financial assets	—	—	—	—	697	697	—	697
            Other	—	(15)	—	—	(15)	(30)	—	(30)
            Total transactions with owners	—	(30,716)	(6,398)	1,487	(2,683)	(38,309)	(29)	(38,338)
            Balance as of December 31, 2025	15,232	347,743	30,156	(14,810)	1,571	379,892	307	380,199

            ‌(4) Consolidated Statements of Cash Flows
            			(Millions of yen)
            	Year ended December 31, 2024		Year ended December 31, 2025
            Cash flows from operating activities
            Income (loss) before income taxes	12,896		(72,718)
            Adjustments for:
            Depreciation and amortization	45,460		39,655
            Impairment loss	651		90,497
            Increase (decrease) in allowance for doubtful accounts	(37)		67
            Interest and dividends income	(115)		(86)
            Interest expenses	769		655

            Shares of income of entities accounted for using equity method

            Gain on sale of property, plant and equipment and intangible assets

            (16) (105)

            (5,501) (1,251)

            Loss on disposal and sale of property, plant and equipment and intangible assets	1,396		972
            Decrease in trade and other receivables	512		5,107
            Decrease (increase) in inventories	(2,238)		2,268
            Decrease (increase) in other assets	(946)		708
            Increase in trade and other payables	2,460		1,636
            Increase in net defined benefit liabilities	2,311		999
            Decrease in other liabilities	(1,009)		(3,687)
            Others	(49)		620
            Subtotal	56,541		65,337
            Interest received	3		24
            Dividends received	112		62
            Interest paid	(704)		(600)
            Income taxes paid	(7,069)		(4,563)
            Income taxes refund	1		862
            Net cash generated from operating activities	48,883		61,123

            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

            (28,158) (29,792)

            9,665 2,702

            Payments for purchases of other financial assets (7) (7)

            Proceeds from sale of other financial assets 2,460 4,184

            Payments for sale of shares of subsidiaries due to change in scope of consolidation

            — (2,757)

            Others (88) (74)

            Net cash used for investing activities (16,128) (25,744)

            Cash flows from financing activities

            Year ended

            December 31, 2024

            Year ended

            December 31, 2025

            Repayments of long-term loans payable	(1,000)		(1,000)
            Payments for bond redemption	(40,000)		—
            Repayments of lease liabilities	(6,420)		(6,797)
            Proceeds from disposal of treasury shares	289		246
            Payments for purchases of treasury shares	(4,569)		(30,165)
            Dividends paid	(8,975)		(9,763)
            Dividends paid to non-controlling interests	(17)		(29)
            Proceeds from sale and leaseback transactions	2,747		—
            Others	4		—
            Net cash used for financing activities	(57,942)		(47,507)
            Effect of exchange rate change on cash and cash equivalents	—		(15)
            Net change in cash and cash equivalents (decrease)	(25,187)		(12,143)
            Cash and cash equivalents at the beginning of the year	113,660		88,473
            Cash and cash equivalents at the end of the year	88,473		76,330

            1. ‌Notes to 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 ended December 2025 to strengthen our logistics network. For those reasons, the useful life (lease period) has been revised from the current fiscal year.

               As a 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 as of December 31, 2025. Also, loss before income taxes for the current fiscal year has increased by 35 million yen.

               ‌(Additional information) (Sale of fixed assets)

               The Company entered into real estate sale and purchase agreements on December 15 and 25, 2025, and decided to sell fixed assets, as described below.

               1. Reason for the sale

                  To enhance shareholder value by improving profitability and capital efficiency, the Company has been optimizing its balance sheet. As part of these initiatives, the Company has decided to transfer the following assets to further improve capital efficiency.

               2. Detail of the assets to be transferred

                  Name of the asset	Address	Gain on Sales
                  Totsuka Sales Center (North Site)	Hirado-cho, Totsuka-ku, Yokohama	2,967 million yen
                  Totsuka Sales Center (South Site)	Shimonagaya, Konan-ku, Yokohama	2,795 million yen
                  	Total	5,763 million yen

                  Note: The transfer price will not be disclosed at the request of the transferees. The gain on sales represents an approximate amount calculated by deducting the book value and estimated expenses related to the transfer from the transfer price.

               3. Overview of the transferees Totsuka Sales Center (South Site)

                  1) Company name	Tokyo Tatemono Co., Ltd.
                  2) Address	1-4-16 Yaesu, Chuo-ku, Tokyo
                  3) Representative	Representative Director, President & Chief Executive Officer, Katsuhito Ozawa
                  4) Main business	Development, leasing and management of office buildings, retail facilities, and others Development, sales, leasing and management of condominiums and detached houses Sale/purchase, brokerage and consulting for real estate; parking lot development and management Leisure business, Logistics facilities development, asset management business, overseas business, and real estate appraisal
                  5) Capital	92,451 million yen (as of end of Sep 2025)
                  6) Establishment	October 1896
                  7) Net Asset	565,557 million yen (as of end of Sep 2025)
                  8) Total Asset	2,229,914 million yen (as of end of Sep 2025)
                  9) Major Shareholders and shareholding ratios	The Master Trust Bank of Japan, Ltd. (Trust Account): 17.7% Custody Bank of Japan, Ltd. (Trust Account): 11.3% Japan Securities Finance Co., Ltd.: 2.4% (As of end of Jun 2025)

                  We refrain from disclosing the detail of the transferee of Totsuka Sales Center (North Site) at the request of the transferee.

                  Apart from ordinary business relationships, there are no capital, personnel, or related-party relationships between the Company and its consolidated subsidiary, Coca-Cola Bottlers Japan Inc., and the transferees.

               4. Schedule of the transfer

                  Name of the asset Contract Date Delivery Date Totsuka Sales Center (North Site) December 25, 2025 March 30, 2026 (scheduled)

                  Totsuka Sales Center (South Site) December 15, 2025 March 27, 2026 (scheduled)

                  Following the delivery of both properties, we plan to continue using them for one year under lease agreements of land to be executed with the transferees.

               5. Outlook

            The gains from the transfer of these fixed assets are expected to be recorded as "gain on sales of fixed assets" in the fiscal year ending December 2026 (approximately.46 million yen) and in the fiscal year ending December 2027 (approximately 12 million yen), related to the land and the building, respectively. The gains to be recorded in the fiscal year ending December 2026 have been incorporated into the full-year financial forecast for that fiscal year.

            ‌(Segment Information, etc.)

            1. Overview of reportable segments

               Operating segments are defined as the components of the Group for which separate financial information is available and which are regularly evaluated 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 Over the Counter (OTC) 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）

               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 second quarter (April 1, 2025 to June 30, 2025), to the “Vending Business,” “OTC Business,” and “Food Service Business.”

               Accordingly, the segment information for the prior fiscal year has been prepared based on the revised reportable segment classification.

            2. Information about reportable segments

               Information by reportable segments of the Group is as follows.

               Year ended December 31, 2024

               (Millions of yen)

               Reportable segment Others

               Vending OTC Food Service

               (Note 1) Total

               Revenue from external customers	410,954	410,852	41,867	29,008	892,681
               Intersegment sales or transfer	—	—	—	—	—
               Total revenue	410,954	410,852	41,867	29,008	892,681
               Segment income (loss) (Note 2)	5,189	49,625	6,884	(49,652)	12,046
               Other information Depreciation and amortization	18,384	16,791	4,900	5,384	45,460
               Impairment losses	—	—	—	651	651

               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 2,145 million yen of income that is not attributable to any reportable segment and 51,797 million yen of corporate overhead expenses. Corporate overhead expenses mainly consist of general and administrative expenses not allocated to any reportable segments.

               3. “Others” of depreciation and amortization represents depreciation and amortization expenses of assets which are not attributable to any reportable segment.

               4. “Others” of impairment losses represents impairment losses of idle assets which are not attributable to any reportable segment.

            2. Segment income is based on business income. “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.

            Year ended December 31, 2025

            Reportable segment Others

            (Millions of yen)

            Vending OTC Food Service

            (Note 1) Total

            Revenue from external customers 399,880	417,949	45,323	30,652	893,805
            Intersegment sales or transfer －	—	—	—	—
            Total revenue 399,880	417,949	45,323	30,652	893,805
            Segment income (loss) (Note 2) 11,266	46,975	8,775	(42,491)	24,525
            Other information
            Depreciation and amortization 13,047	16,358	5,128	5,122	39,655
            Impairment losses 88,368	—	—	2,129	90,497
            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 2,549 million yen of income that is not attributable to any reportable segment and 45,039 million yen of corporate overhead expenses. Corporate overhead expenses mainly consist of general and administrative expenses not attributable to any reportable segments.

            3. “Others” of depreciation and amortization represents depreciation and amortization expenses of assets which are not attributable to any reportable segment.

            4. “Others” of impairment losses represents impairment losses of idle assets which are not attributable to any reportable segment.

            2. Segment income is based on business income. “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.

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

            (Millions of yen)

            	Year ended December 31, 2024		Year ended December 31, 2025
            Total segment income	12,046		24,525
            Gains on sales of property, plant, and equipment	5,429		1,250
            Losses on sales and disposals of property, plant, and equipment	(199)		(410)
            Gain on sales of shares of subsidiaries	—		23
            Transformation-related expenses	(3,333)		(3,634)
            Impairment loss	(651)		(90,497)
            Special retirement allowance	(17)		(3,433)
            Other	36		(209)
            Operating income (loss)	13,390		(72,385)
            Financial income	337		444
            Financial expenses	(832)		(778)
            Income (loss) for the period before income taxes	12,896		(72,718)

            ‌(Stock Per Share Information)

            The calculation of basic earnings per share attributable to owners of the parent is based on the net income attributable to owners of the parent and the weighted average number of common shares issued.

            The basis for calculating the basic earnings per share and diluted earnings per share for the prior fiscal year and the current fiscal year are as follows:

            Income (loss) attributable to owners of parent (millions

            Year ended

            December 31, 2024

            Year ended

            December 31, 2025

            of yen)

            7,309 (50,763)

            Weighted-average number of common shares issued (in thousands)

            Increase in common shares

            179,341 171,199

            Share of share-based compensation (in thousands)	1,246	—
            Diluted weight average number of shares (in thousands)	180,587	—
            Basic earnings (losses) per share (yen)	40.76	(296.51)
            Diluted earnings per share (yen)	40.48	—

            Note: 1. “Diluted earnings per share” is not shown in the current fiscal year, as 1,312 thousand shares of share-based compensation have an anti-dilutive effect.

2. The Company has introduced an Executive Reward BIP Trust and a Stock-granting ESOP Trust. Shares of the Company held by these trusts are included in treasury shares and are deducted from the weighted-average number of common shares outstanding during the year when calculating basic and diluted earnings per share. The weighted-average number of common shares deducted was 23,389 thousand shares in the prior fiscal year and 10,223 thousand shares in the current fiscal year.

‌(Significant Subsequent Events) Not applicable.

1. ‌Others

‌Changes in Key Consolidated Management Indicators

Notes:

1. Fractions of one million yen are rounded to the nearest million. In addition, the ratio is rounded to the nearest number.

2. Diluted earnings per share is not presented for FY2021, FY2022 and FY2025, because the effects of potentially dilutive stock on earnings per share were anti-dilutive in those years.

3. In FY2023, the Company introduced an Executive Reward BIP Trust and a Stock-granting ESOP Trust. Shares of the Company held by these trusts are recorded as treasury shares in consolidated financial statements. Accordingly, these shares are deducted from the number of shares outstanding at year-end when calculating equity attributable to owners of the parent per share. They are also deducted from the weighted-average number of common shares during the year when calculating basic and diluted earnings per share.

End of document