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1 yakult CSR Report 2017. About This Report Editorial policy Contents This yakult CSR Report 2017 summarizes the yakult Group's corporate social responsibility (CSR) activities in fiscal 2016. yakult 01 yakult in Figures Honsha Co., Ltd. began publishing the yakult Environmental Report in fiscal 2000 and subsequently changed the report title and 02 Overview of yakult 's Operations upgraded the reported content in fiscal 2005 with the publication of the yakult Social & Environmental Report and in fiscal 2015 with the 03 yakult 's Business Operations publication of the yakult CSR Report. We also expanded the scope of reporting from yakult Honsha to the entire yakult Group. In fiscal 2015, yakult Honsha began systemizing its CSR activities 04 To Our Stakeholders based on ISO 26000 and newly formulated the yakult CSR Action Plan in fiscal 2016.

2 In fiscal 2017 we are establishing concrete action targets. Accordingly, the yakult CSR Report 2017 has been 06 yakult 's roots: Shirota-ism edited with an awareness of the Seven Key Principles and Seven Core Subjects of ISO 26000 as well as the key themes of the CSR 08 Research and development led by Shirota-ism Action Plan. In this report, we have included special features on Health, Local Communities and The Environment, which the yakult Group regards as highly important. Concurrently, we have enhanced comparability by concretely listing various indicators that 10 Corporate Social Responsibility are expressed in numerical figures as part of efforts to create an 12 yakult CSR Action Plan easy-to-understand communication tool.

3 We will further evolve our CSR activities through dialogue with 13 Dialogue with Stakeholders stakeholders as well as promote sincere communications to become a Group that meets the expectations of society. This CSR Report 14 Special Feature 1: Health systematically organizes the yakult Group's activities and allows us yakult Miyakonojo Sales to confirm the results of our activities. The report also serves as a Towards communities where everyone communication tool for earning recognition from society. In fiscal 2015, we started to distribute the CSR Report to all employees aimed can lead healthy, happy lives at raising the awareness of employees. In the future as well, we will take a global perspective and further 16 Special Feature 2: Local Communities yakult Indonesia expand and upgrade the content of the CSR Report for the yakult Group, which is contributing to the development of societies in each Closely supporting the work of country and region.

4 Women in the community Publishing date 18 Special Feature 3: The Environment October 2017 (Next version: October 2018) Reducing water usage throughout the Publishing format Group Website only. We publish Japanese and English versions of this report. 20 Contributing to the health and happiness of our customers Period April 1, 2016 through March 31, 2017 25 Towards development together with local communities This report includes some information pertaining to before or after 28 For Environmental Conservation the period. 39 Boosting motivation and respecting human rights Scope of data All business sites of yakult Honsha Co., Ltd. and a portion of the 46 Promoting transparent management yakult Group 48 Ensuring integrity in our business References to the yakult Group contained in this report include yakult Honsha, domestic marketing companies, logistics companies and affiliated companies as well as overseas business sites.

5 51 Third-Party Opinion Inquiries 52 Data Highlights CSR Promotion Department, Public Relations Department, yakult Honsha Co., Ltd. 1-19 Higashi-Shinbashi 1-chome, Minato-ku, Tokyo 105-8660, Japan Telephone: +81-3-3574-8960. Fax: +81-3-3575-1636. Disclaimer Please be advised that, with the exception of past factual matters, the contents in this report contain forward-looking statements regarding the future that include elements of uncertainty. yakult CSR Report 2017. 0. yakult in Figures The year yakult starts Number of dairy product bottles drunk each day worldwide 1935 million bottles Since it was introduced to the market in 1935, Average number of yakult dairy product bottles yakult has been a familiar product worldwide drunk globally each day.

6 yakult is currently sold for over 80 years. in 38 countries and regions, including Japan. Our Group also has a wealth of research experience over many years. (as of March 2017). Country and region we cover Number of yakult Ladies all over the world 2 billion Marketing population in countries and regions where we operate Population of countries and regions where we operate billion 80,000. World population billion We will continue moving forward with market Over 80,000 yakult Ladies are delivering good expansion and penetration. health worldwide. (as of March 2017) (as of March 2017). Number of participants See p. 25 yakult Ladies' Courtesy See p. 26. in guest lectures Visit Activities Number of guest 41,000.

7 Lectures all over Japan in fiscal 2016. 3,000 elderly people are visited at home by Number of participants 3,000. 200,000. yakult Ladies (as of March 2017) (as of March 2017). yakult CSR Report 2017. 1. Overview of yakult 's Operations Profile of yakult Honsha (as of March 31, 2017) Profile of yakult Group (as of March 31, 2017). Name: yakult Honsha Co., Ltd. Japan Address: 1-19 Higashi-Shinbashi 1-chome, Marketing companies: 103 companies Minato-ku, Tokyo 105-8660, Japan Number of employees: 13,782. Founded: April 9, 1955 Number of yakult Ladies: 35,594. Businesses: Manufacturing and marketing of Number of yakult Beauty Advisors: 4,890. foodstuffs, pharmaceuticals, cosmetics Bottling companies: 5 companies and others Affiliated companies, etc.

8 : 13 companies and 4 associations Paid-in capital: 31,117 million Net sales: 173,680 million (non-consolidated) Overseas 378,307 million (consolidated) Business sites: 28 companies Total assets (consolidated): 585,741 million Number of employees: 20,977*. Net assets (consolidated): 376,880 million Number of yakult Ladies: 45,813*. Business sites: 1 research institute, 5 branches, 7 plants, Marketing regions: 37 countries and regions 10 medical branches, 13 logistics centers *As of December 2016. Number of employees: 2,860 (including 303 seconded employees and 133 contract employees). Sales structure by segment Five-year overview of net sales and net income (consolidated) (consolidated). Others Business Net sales (millions of yen) Net income (millions of yen).

9 400,000 367,980. 390,412 378,307 40,000. 350,322. Pharmaceutical 319,193 30,154. Business 300,000 28,843 30,000. 25,056. 200,000. 22,543. 20,000. 16,379. Domestic Food 100,000 10,000. Overseas Food and Beverage Business and Beverage Business 0 0. 2012 2013 2014 2015 2016 (FY). Net sales Net income 25 25 23 22. 24 26. 28 27. 16. 17 4 . 18 21. 11 13 15. 14. 12 2 1. 20. 3 5. 10. 9. 6. 7. 19. 8 8. yakult Honsha Co., Ltd. yakult (Malaysia) Sdn. Bhd. yakult S/A Ind. E Com. (Brazil). yakult Taiwan Co., Ltd. yakult Vietnam Co., Ltd. yakult de (Mexico). Hong Kong yakult Co., Ltd. yakult Danone India Pvt. Ltd. yakult Inc. yakult (Thailand) Co., Ltd. yakult Middle East FZCO yakult Europe Korea yakult Co., Ltd.

10 yakult (China) Corporation yakult Nederland yakult Philippines, Inc. Guangzhou yakult Co., Ltd. yakult Belgium yakult (Singapore) Pte., Ltd. Shanghai yakult Co., Ltd. yakult UK Ltd. (Ireland Branch). yakult Indonesia Persada Beijing yakult Co., Ltd. yakult Deutschland GmbH. yakult Australia Pty. Ltd. Tianjin yakult Co., Ltd. yakult Oesterreich GmbH. (New Zealand Branch) Wuxi yakult Co., Ltd. yakult Italia yakult CSR Report 2017. 2. yakult 's Business Operations Our operations have expanded to include food and beverages such as fermented milk drinks, as well as cosmetics, pharmaceutical products and an international business, with life science as our foundation. Food and Beverage Business International Business In 1930, Dr.