Yakult CSR Report 2018 About This Report

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Yakult CSR Report 2018 About This Report Yakult CSR Report 2018 About This Report Editorial policy Contents The Yakult CSR Report 2018 was prepared based on the following key concepts, on the Yakult Group’s CSR activities in fiscal 2017. 01 Yakult in Figures 02 Overview of Yakult’s Operations ■ CSR Report as a communications tool Through dialogue and sincere communications with stakeholders, the 03 Yakult’s Business Operations Yakult Group aims to further develop its CSR activities and respond to the expectations of society. With these aims in mind, we have prepared this CSR Report as a communications tool, using a 04 To Our Stakeholders structured presentation of our CSR activities that allows us to verify the results of our own activities while also to be evaluated by society. 06 Yakult’s Roots: Shirota-ism ■ Presenting the Yakult CSR Action Plan in an easy-to- 08 Research and Development Led by Shirota-ism understand manner Organizing our CSR activities in line with the seven core subjects of ISO 26000, the Yakult Group formulated the Yakult CSR Action Plan 10 Corporate Social Responsibility in fiscal 2016 and has been working on achieving specific annual 10 Basic Policy on CSR action targets starting in fiscal 2017. This report describes in detail the 11 The Yakult CSR Action Plan and Sustainable Development Goals main achievements based on action targets for fiscal 2017, and targets for fiscal 2018, using numerical indicators as much as possible. 12 Yakult CSR Action Plan: Targets and Results 14 Yakult Corporate Activities and SDGs ■ Clearly describing SDGs and ESG initiatives The Sustainable Development Goals (SDGs) are shared global goals to 15 Dialogue with Stakeholders create a sustainable society, while environmental, social and governance (ESG) topics are core aspects of CSR. Both are key global 16 Special Feature 1: Health Yakult S.A. de C.V. (Mexico) trends in the area of CSR. We have integrated both into our CSR activities, and this report shows the relationship between them and Raising health awareness in local communities Yakult’s CSR Action Plan. 18 Special Feature 2: Local Communities Yakult Mito Sales Co., Ltd. ■ Providing more details on Yakult’s three key CSR areas Connecting people in the local community through This report includes special feature sections on Health, Local Yakult, and building that community together Communities and the Environment (the Yakult Group’s three key CSR areas) and we explain how each of them helps us move toward the Special Feature 3: The Environment SDGs. This year we introduce activities in Mexico as an example of our 20 health-related initiatives outside Japan. Toward biodiversity conservation Going forward, while maintaining a global perspective we will 23 Ⅰ. Consumer Issues continue to improve our report as a communications tool of the Contributing to the health and happiness of our customers Yakult Group, to contribute to the development of society in each 28 . Community Involvement and Development country and region where we operate. Ⅱ Towards development together with local communities Publishing date 31 Ⅲ. The Environment Japanese edition: September 2018 (Next edition: September 2019) For environmental conservation English edition: October 2018 (Next edition: October 2019) 42 Ⅳ. Labour Practices Improving the health and motivation of our employees Publishing format Published online only (in both Japanese and English) 49 Ⅴ. Human Rights Respect for human rights Period covered 50 Ⅵ. Fair Operating Practices Fiscal 2017 (April 1, 2017 through March 31, 2018) Ensuring fairness in our business Note that some information in this report covers periods before or after fiscal year 2017. 53 Ⅶ. Organizational Governance Promoting transparent management Scope of data The report covers all business sites of Yakult Honsha Co., Ltd. and the Yakult Group (some of them are included in Special Features, for 55 Third-Party Opinion example). 56 Data Highlights References to the “Yakult Group” contained in this report include Yakult Honsha, marketing companies, logistics companies and affiliated companies in Japan as well as business sites outside Japan. Inquiries Yakult’s corporate communications tools CSR Promotion Department, Public Relations Department, Yakult Honsha Co., Ltd. • CSR information site http://www.yakult.co.jp/english/csr/ 1-19 Higashi-Shimbashi 1-chome, Minato-ku, Tokyo 105-8660, Japan Telephone: +81-3-3574-8960 • CSR Report (this report) Fax: +81-3-3575-1636 • CSR Report Digest Version A compact version of this report (distributed only to workers) • IR information site (management policy, financial and stock information) Disclaimer http://www.yakult.co.jp/english/ir/ Except for statements of historical fact, information contained herein may constitute forward-looking statements that involve • Annual Report (English) future uncertainty. http://www.yakult.co.jp/english/ir/management/library.html “Workers” referred to in this report are persons working for the Yakult Group, including independent contractors including Yakult Ladies and Yakult Beauty Advisors. Where “employees” are mentioned in this report, the term includes regular employees, full-time contract employees, contract employees, and temporary staff, and excludes the independent contractors. Yakult CSR Report 2018 0 Yakult in Figures The year Yakult starts Number of dairy product bottles consumed each day worldwide 39.52 1935 million bottles Since being introduced to the market in 1935, Of which 9.69 Yakult has become known worldwide over its million are consumed in Japan more than 80-year history. The Yakult Group has made a number of Average global daily consumption of Yakult research achievements in the pursuit of life dairy product. science and preventive medicine. (as of March 2018, compared to 37.37 million bottles as of March 2017) Countries and region we cover Number of Yakult Ladies worldwide Marketing population in countries and regions billion where we operate 2 Population of countries and regions where we billion 80,000 operate 4.2 World population 7.6 billion We currently conduct sales in 38 countries and Over 80,000 Yakult Ladies are delivering good regions (including Japan), and will continue health worldwide. moving forward with market expansion and penetration. (as of March 2018) (as of March 2018) See p. 28 Yakult Ladies’ community See p. 29 Guest lectures support initiatives Japan: 3,800 lectures, Courtesy visit activities 270,000 participants Outside Japan: 39,700 lectures, 3,000 Yakult Ladies visited 2,290,000 participants 40,000 elderly people at home Community safety watch Health-related lectures and crime prevention activities Japan: 11,800 lectures, 26,000 Yakult Ladies participants 380,000 conducted the activities in Outside Japan: 102,300 lectures, corporation with 800 local 5,410,000 participants governments, and police and fire departments nationwide (as of March 2018) (as of March 2018) Yakult CSR Report 2018 1 Overview of Yakult’s Operations Profile of Yakult Honsha (as of March 31, 2018) Profile of Yakult Group (as of March 31, 2018) Name: Yakult Honsha Co., Ltd. Japan Address: 1-19 Higashi-Shimbashi 1-chome, Minato- Marketing companies: 103 companies ku, Tokyo 105-8660, Japan Number of employees: 13,809 Founded: April 9, 1955 Number of Yakult Ladies: 34,888 Businesses: Manufacturing and marketing of foods and Number of Yakult Beauty Advisors: 4,751 beverages, pharmaceuticals, and cosmetics Bottling companies: 5 companies and other operations Affiliated companies, etc.: 13 companies and 4 associations Paid-in capital: ¥31.118 billion Net sales: (April 1, 2017 to March 31, 2018) Overseas ¥177.54 billion (non-consolidated) Companies: 28 ¥401.57 billion (consolidated) Number of employees: 22,392* Number of Yakult Ladies: 46,559* Total assets (consolidated): ¥631.24 billion Marketing regions: 37 countries and regions Net assets (consolidated): ¥386.67 billion *As of December 2017 Business sites: 1 research institute, 5 branches, 7 plants, 10 pharmaceutical branches, 13 logistics centers Number of employees: 2,848 (including 296 seconded employees and 124 contract employees) Sales by segment Five-year overview of net sales and net income (consolidated) (consolidated) Others Business Net sales (billions of yen) Net income (billions of yen) 401.5 % 390.4 378.3 4.9 400 350.3 367.9 34.0 40 Pharmaceutical 30.1 300 28.8 30 Business 25.0 22.5 6.0% 200 20 Domestic Food 100 10 Overseas Food and Beverage Business and Beverage Business 0 0 49.4% 39.7% 2013 2014 2015 2016 2017 (FY) Net sales Net income Overseas companies • Yakult Taiwan Co., Ltd. • Yakult (Malaysia) Sdn. Bhd. • Yakult S/A Ind. E Com. (Brazil) • Hong Kong Yakult Co., Ltd. • Yakult Vietnam Co., Ltd. • Yakult S.A. de C.V. (Mexico) • Yakult (Thailand) Co., Ltd. • Yakult Danone India Pvt. Ltd. • Yakult U.S.A. Inc. • Korea Yakult Co., Ltd. • Yakult Middle East FZCO • Yakult Europe B.V. • Yakult Philippines, Inc. • Yakult (China) Corporation • Yakult Nederland B.V. • Yakult (Singapore) Pte., Ltd. • Guangzhou Yakult Co., Ltd. • Yakult Belgium N.V./S.A. • P.T. Yakult Indonesia Persada • Shanghai Yakult Co., Ltd. • Yakult UK Ltd. (Ireland Branch) • Yakult Australia Pty. Ltd. (New Zealand Branch) • Beijing Yakult Co., Ltd. • Yakult Deutschland GmbH • Tianjin Yakult Co., Ltd. • Yakult Oesterreich GmbH • Wuxi Yakult Co., Ltd. • Yakult Italia S.R.L. Yakult CSR Report 2018 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. Minoru Shirota, the founder of Yakult, became the Yakult’s business expansion into overseas countries flowed naturally first in the world to successfully strengthen and culture a strain of from a desire to fulfill Dr. Shirota’s wish to “help protect the health of lactic acid bacteria, and in 1935, Yakult, a beverage containing people throughout the world.” Lactobacillus casei strain Shirota, was born. In 1963, the Yakult Lady In 1964, Yakult Taiwan Co., Ltd.
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