Our corporate philosophy, “Paint it RED! Let’s Repaint Our Future,” guides our mission to “Deliver happy moments to everyone while creating value.” It serves as the basis of our daily business operations. As the beverage industry in Japan experiences significant change at an accelerating pace, we remain agile in adapting to these environmental changes. Concurrently, we are committed to pursuing business growth and creating shared value with society through our unique value creation process.Within this integrated report, we provide an overview of our initiatives as a total beverage company. These include actions focused on ensuring the safety and reliability of our products, as well as our commitment to creating shared value (CSV). Furthermore, we outline strategies for implementing a medium- to long-term value value creation approach and attaining sustainable growth.activities to maximize opportunities for increased demand from the recovery in social activities and the heat wave. As a result, we were able to achieve growth in both sales volume and value share. We also revamped our Sales and Operations Planning (S&OP) process to ensure a stable product supply. This has significantly improved the service level associated with product supply in times of sudden changes in demand, which had previously been an issue, in turn contributing to volume growth. In addition, we continued to push forward with transformations that will lead to future growth. This included the launch of operations at the Akashi Mega Distribution Center (DC), the second of our automated distribution centers in Japan. Furthermore, we continued to work on optimizing our balance sheet. The key measures for future growth that we have been working on in each field are steadily producing results. This proves to me that we are headed in the right direction in terms of strategy.12On the publication of the 2022 Integrated ReportThe Coca-Cola Bottlers Japan Holdings Group (CCBJH Group) has consolidated its previous Annual Review and CSV Report into a single document, the 2022 Integrated Report. This comprehensive report aims to provide valuable information to our stakeholders, including shareholders and investors, to foster a better understanding of our long-term value creation strategy. Our goal is to promote transparency and facilitate a deeper insight into our processes of generating sustainable medium- to long-term value.Achieving steady results: Outcomes of 2022 transformation initiativesIn 2022, the impact of COVID-19 began to subside. Nevertheless, we were forced to steer our business through difficult circumstances created in part by a substantial increase in costs arising from external factors. Against this backdrop, we had to address rising raw material, supplies, and energy prices and the impact of foreign exchange rates, as well as strengthen our revenue base. As part of our pricing strategy, we revised our product prices ahead of others in the industry. We implemented price revisions for large PET bottle products in May 2022 and for small packaged products in October 2022. Through management decisions based on strong determination and thorough execution in the market, we are already seeing results such as an improvement in revenue per case. I believe these structural profitability improvement initiatives are vital for the future of the beverage industry and our business. Moreover, from a growth standpoint, we leveraged the growth foundation we built and implemented effective sales Prioritizing structural profitability forfuture growth and profitability
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