Message From the Presidentrevenue per case through an appropriate pricing strategy centered on price revisions. Our aim is to achieve a steady recovery in revenue and establish a profit structure for sustainable growth. In terms of volume, we are executing core category-focused strategies, expanding our product portfolio based on innovation, and executing marketing investments emphasizing effectiveness and efficiency.In manufacturing and logistics, we are working to build However, since establishing this Sustainability Framework, the macro environment surrounding our company has changed significantly. In addition, the change is accelerating and heavily impacting consumer behavior and business operations. Because of this and other factors, the business environment remains challenging and uncertain. In order to realize our mission to “Deliver happy moments to everyone while creating value,” we have reviewed our existing material issues identified when a supply chain network to realize high quality, low costs, and stable supply. Specifically, on the manufacturing side, we will work to promote efficiency in manufacturing processes and build a flexible manufacturing system. Meanwhile, on the logistics side, we will optimize our distribution network by such means as ensuring stable operations at the Akashi Mega DC, which was opened in 2022. We will also focus on ensuring stability in our S&OP process, which was revamped in 2022. Moreover, we will continue to work on achieving a timely and low-cost supply of products in response to changes in the environment.As for the overall business foundation, we will further accelerate the standardization of business processes and improvement of efficiency through DX. Our goal is to establish a robust cost structure that will allow us to respond flexibly to any changes in the environment. Cost pressure remains severe, but we will improve profitability by steadily moving forward on initiatives in each area.establishing the Sustainability Framework and reidentified material issues unique to our company. By separating the identified issues into the categories of Key Themes in Sustainable Value Provision, Key Themes in Sustainable Society, and Key Themes in Sustainable Organizational Management and linking them to our Value Creation Process, we have expressed our vision in the form of a Value Creation Story. To address Mitigation of and Adaptation to Climate Change, a material issue categorized as one of the Key Themes in Sustainable Value Provision, we will establish a new Sustainability Committee in 2023. Our aim is to strengthen the system for establishing policies and strategies on climate change and other issues and to 132023 to be a year of focusing on profits and prioritizing improved profitabilityIn 2023, we expect the price of raw materials, supplies, and energy to continue to rise. This, combined with the impact of foreign exchange rates, will require us to address further cost increases. In addition to utilizing the results and lessons learned to date, we will promote initiatives to achieve a stable and low-cost supply of products and a thorough sales strategy that emphasizes investment efficiency. We will do this by placing the highest priority on improving profitability in this year of focusing on profits.In our commercial activities, we will further improve Identifying unique material issues amid accelerating changes in the business environmentIn 2019, the Coca-Cola System in Japan formulated a Sustainability Framework that identified three platforms of Inclusion, Communities, and Resources, and nine priority issues to be addressed to achieve our unique non-financial CSV Goals.
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