The Japanese non-alcoholic beverage market has grown to $60 billion in size. While it is a mature market, certain categories like water and sports drinks continue growing. Coca-Cola holds leading market positions across several categories. To drive continued growth, Coca-Cola plans to expand its portfolio to underserved age groups, innovate new products and packages tailored to Japan's "new normal," invest in hot and cold equipment, lead sustainability initiatives, and reshape its bottling system.

1. Japan – Growth In An Evolving,
Developed Market
Dan Sayre
President, Japan Business Unit

2. A Growing $60 Billion Business
In A Mature Market
2000-2008
MM Unit Case Volume CAGR (%) Category
4,000
Nonalcoholic RTD Beverage Market
3,500
+2 Other
3,000 +11 Water
+1 Energy
2,500 +3 Sports
2,000
+3 Tea
1,500
-3 Juice
1,000
+1 Coffee
500
+1 Sparkling
0
1980 1985 1990 1995 2000 2005 2008
Source: All Japan Soft Drink Bottlers Association & Nikkan Keizai Tsushinsha

3. A Growing $60 Billion Business
In A Mature Market
2008
2000-2008 Percentage 2008-2020
MM Unit Case Volume CAGR (%) Category of Total CAGR (%)
4,000
Nonalcoholic RTD Beverage Market
3,500
+2 Other
Other 5% 0
3,000 +11 Water 13% +2
+1 Energy
Energy 2% +2
Sports &
2,500 +3 Sports 9%
Wellness +1
2,000
+3 Tea 29% +1
1,500
-3 Juice
Juice 11% +1
1,000
+1 Coffee
Coffee 16% +1
500
+1 Sparkling
Sparkling 15% +2
0
1980 1985 1990 1995 2000 2005 2008 2020
0.5 pt conversion / year = $800 MM incremental retail value / year
Source: All Japan Soft Drink Bottlers Association & Nikkan Keizai Tsushinsha

4. Well Positioned To Lead Growth
#1 Coffee #1 Sparkling #1 Sports
Mental Renewal & Energy Uplifting & Social Occasions Replenishment & Vitality
#2 Juice #2 Tea - #1 Blended Tea #1 Personal Water
Purposeful Nutrition Meal Occasions & Refreshment Hydration & Detox
Source: Intage and Shokuhin Marketing and $17 Bn Diversified Beverage Portfolio
Japan Soft Drink Association (2008)

5. An Emerging „New Normal‟ Impacting Japan
Strong Eco Mindset Rapidly Aging Society Shift of Price - Value Equation
25%
Reduction
New Government’s Commitment 50+ Age = 43% Of Population - ¥140 In Lunch Budget
Consolidation & Blur Break-up of
of Trade Channels Homogeneous Consumers
New Formats = 130% Of Growth Widening Equality Gap +20%
…Overlapping Long-Standing Fundamentals
#2 Global Discerning & Demanding Trend Setting & Relentless
Consumer Economy Consumers Fashion Oriented Innovation

6. Continued Growth Over the Past Decade
KO Japan Total Unit Case Volume
(In MM) 12 Month Moving Total
1,000
950
900
850
800
750
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

7. 2020 Growth Strategies
Expand Portfolio To Address Underserved Age Groups
Innovate Brand / Pack / Price Offerings For „New Normal‟
Invest In Hot / Cold Equipment For New Occasions
Lead Industry Sustainability And Eco Initiatives
Reshape Bottling System To Unlock Latent Value

8. Reigniting Profitable Growth Of Sparkling
KO Japan Core Sparkling 2009 vs 2006
+5 % +15 %
Unit Case CAGR* Immediate Consumption Transactions*
KO Core Sparkling Volume* (MM unit cases)
278
263
252
236
2006 2007 2008 2009
+7 MM
New Drinkers
+3 MM
Household Penetration**
Sep 2009 vs. Jan 2007. Source: B3, total population
*12 MMT Sept 2009 vs 2006
**Source: Intage Sept 2009 vs 2006

9. Strong Innovation Is Driving Growth
+2%* +35%* 3%*
Connecting Attracting Sourcing From
Digitally With 40+ Year Olds Adjacent
Teens Categories
Coke Zero + Diet Coke in 2009 vs Diet Coke in 2006
*Sept 2006 YTD to Sept 2009 YTD CAGR

11. Diversify Georgia Pack / Price
For „New Normal‟
VALUE CORE UPSIZE/ VALUE PREMIUM
¥100 ¥120 ¥120-130 ¥130 ¥130-140 ¥160
% Mix
Future 5% 65% 5% 25%

12. New Georgia Campaign: Yokoso Georgia
Exciting Merchandising Recognizing Hard Working Men

14. Hot / Cold Equipment For New Occasions
Continue To Lead In Eco-Vending & Cashless Lead With State Of The Art Design
E40 Solar Panel HFC-Free 3D Design 3D Design Freestyle
40% Less Energy Vendor Cooler Fountain
More Space In More Outlets 100% Coverage By 2020
Zero Block Hot and Cold Account Specific
Coolers Equipment Opportunities
Today 10%
2020 100%

15. Lead in Sustainability With Eco Innovations
#1 Water In Personal Packs #1 Blended Tea In Japan
• Launched May 2009 • First ever tea made from plants both
• Lightest package in Japan “inside and out”
• #1 brand in convenience stores • 30% renewable plant-based material
and supermarkets launching soon

16. Capturing More Value From
A $60 Billion Industry
And
Inspiring The Entire System
With Winning Innovation