Corporate Profile 2014-2015

English

2-4-1 Ebisu-minami, Shibuya-ku, Tokyo, Japan 150-0022 TEL: +81-3-5721-3111 Global website: http://www.calpis.net/

’ カルピス’,‘CALPIS’,‘カラダにピース’,‘ピースボトル’,‘カルピスウォーター’,‘カルピス オアシス’,‘カルピス酸乳’,‘アミール S’,‘CALPIS SODA’, ‘カルピスソーダ’,‘健茶王’,‘CALPICO’,‘CALPICO SODA’,‘カルスポリン’,‘ファインラクト’,‘毎朝野菜’,‘アレルケア’,‘健彩生活’,‘可爾必思’, ‘可尓必思’,‘初恋の味’,‘水玉模様’,‘THE PREMIUM CALPIS’,‘しなやかケア’,‘ビオマイン’,‘インターバランス L-92’,‘年齢ペプチド’,‘サーベリックス’ are registered trademarks of Calpis Co., Ltd. ‘ LTP’,‘ L-92 乳酸菌’,‘ 守る働く乳酸菌’ are trademarks of Calpis Co., Ltd. 10-P-1406-030 Printed in Japan “Karada ni Peace Calpis,” throughout the World

Since its birth as many as 95 years ago, the cultured milk drink CALPIS® has been loved for genera- tions by the people of Japan, and its popularity only continues to grow. Originally conceived of as a concentrated beverage, the CALPIS® brand has now expanded to over 20 items, and has also estab- lished a presence in the restaurant and processed foods markets. We have earned the strong support of our customers by being a safe, reliable and exhilarating brand.

When our founder, Kaiun Mishima, discovered the nomadic people of Inner Mongolia drinking “cultured milk” (fresh milk fermented using lactobacilli), he was deeply impressed by the beverage. Corporate Philosophy The combination of fresh milk and lactobacilli was key to the drink’s delicious flavor and healthy qualities. After many trials and with much hard work, Mishima succeeded in creating his own cul- ® A Deepening Contribution to Society through tured milk, and so CALPIS was born. His motivation in creating the beverage was simple: the sincere wish to better lives by creating something both delicious and healthy. That same desire, Products and Technologies that Promote expressed in our company slogan, “Karada ni Peace Calpis,” remains the driving principle for Calpis Healthy Bodies and Minds. Co. employees to this very day.

The lactobacilli and fermentation technologies used at Calpis Co. have been developed over many long years of research, and can be traced back to the company’s founding. These technologies are used to create new value in a variety of fields, from our uniquely delicious beverages to our health supplements and animal feed probiotics. At Calpis Co. we strive to remain the same safe and reliable brand which has earned our customers’ trust for so many years. As we move forward, from genera- Corporate Slogan:“Karada ni Peace Calpis” tion to generation, and across national boundaries, one mission remains the same: to promote the undeniable flavor and healthy values of CALPIS®.

“Karada ni Peace Calpis” is a message expressing our corporate philosophy in a simple and direct manner. It expresses our desire to be a company that creates new values, in terms of both physical health for the body (Karada) and emotional health for the mind (Peace). With this slogan, we strive to uphold and offer the value of health.

Fujio Yamada Contents President and Representative Director Corporate Philosophy/“Karada ni Peace Calpis”/Contents..... 2 A Look at Calpis Co.’s Research and Development ...... 20 Message from the President ...... 3 Top Beverage Brands ...... 10 Initiatives on Safety and Reliability..... 22 The CALPIS® Story ...... 4 Professional-Use Products ...... 12 Communication Endeavors ...... 24 Topics 1 The CALPIS® Brand: Functional Foods ...... 14 Company Profile/ Executives ...... 26 Bringing Fresh Value to the World ...... 6 Animal Feed Probiotics ...... 16 Locations ...... 27 Topics 2 Researching CALPIS® ...... 8 International Beverages ...... 18

2 3 The CALPIS® Story

Story The hidden health benefits of CALPIS® 3 Cultured Milk

Story The cultured milk drunk by Inner Mongolian nomads was key to the develop- CALPIS® was developed as a health drink ment of CALPIS®. For them, cultured milk was seen as a source of nutrition 1 and a healing medicine. In 1904, Kaiun Mishima, the founder of our company, visited Inner Mongolia on business. There he found people drinking cultured milk, a drink made from milk In the 1970s, believing that properties in CALPIS® Cultured Milk may have spe- fermented with lactobacilli. The drink helped the people of Mongolia to main- cial health benefits, we launched a scientific study. By joining forces with RIKEN, tain their health, especially for those living in harsh natural environments. Kaiun a leading Japanese institution which has conducted comprehensive research in was surprised by the drink’s good flavor and healthful properties. His digestion, science and technology for more than 30 years, we discovered, through animal

which had been weakened by the long journey to Inner Mongolia, was fully Founder, tests, that cultured milk contains properties that prolong life, suppress the restored, and he soon discovered that both his body and mind were refreshed Kaiun Mishima growth of cancer cells and boost immunity. by the power of the cultured milk. Kaiun realized that the secret of the flavor and health of the drink lay in the milk and lactobacilli. After returning to Japan, We also proved, through tests in humans, that CALPIS® Cultured Milk can he devoted his time to developing his own delicious and healthy cultured milk offset fatigue and stress and regulate blood pressure. In 1997, as a result of this product. study, we succeeded in developing AMEAL® S, a supplement for people with high blood pressure problems. AMEAL® S was approved for sale as a Food for “I want to make a drink that will contribute to people’s lives,” said Specified Health Use (FOSHU). Kaiun, who devoted himself to studying lactobacilli. The result was CALPIS®, the first cultured milk drink in Japan. We are determined to continue discovering the benefits of CALPIS® Cultured

AMEAL® S (FOSHU) developed Milk and lactobacilli, and to develop techniques and products that will contrib- after long studies ute to the health of our customers.

The plains of Inner Mongolia

Story The trademark polka-dot pattern of the CALPIS® brand Story The taste of nature—Fresh milk and 4 2 the unique flavor of lactic acid fermentation CALPIS® was launched on July 7, 1919, on the day of Tanabata (the Star Festival).

CALPIS® is made from nonfat milk. The milk is slowly fermented by adding In some Asian countries, including China and Japan, the custom is to gaze at the microorganisms, including lactobacilli, that are unique to our company. These stars on this day. Because the product was launched on Tanabata, the design microorganisms have been nurtured by us for generations. Cultured milk of the polka dot pattern on CALPIS® packaging was inspired by the image of produced in this manner is called “CALPIS® Cultured Milk.” Sugar and other stars in the Milky Way. ingredients are then added to CALPIS® Cultured Milk to create CALPIS® bev- erages. The white color of CALPIS® represents the color of milk, and its sweet The original pattern contained white dots on a blue background. It was later and tangy flavor is produced by our own lactobacilli. The refreshing taste origi- changed to blue dots on a white background. This pattern continues to com- nates in nature and cannot be produced by other drinks. CALPIS® has become municate the refreshing image of CALPIS®, and retains its sense of freshness a beverage enjoyed by all ages, from small children to the elderly. after all these years. CALPIS® concentrate, for sale in Japan ® The trademark polka dot pattern is featured on all CALPIS® brand products Original CALPIS packaging launched in 1922 available throughout the world.

4 5 Topics The growing CALPIS® lineup The CALPIS® Brand: Bringing Fresh Value to the World 1 Bringing Smiles to Faces Throughout the World The delicious flavor of CALPIS® can be found in The Evolution of CALPIS®: countries throughout the world, including Thailand, Indonesia, Vietnam, China, Taiwan and America. We create new flavorings and product styles to suit the Introducing the Blessings of Nature to One and All preferences of individual countries and regions. CALPIS® for All Our goal in expanding our business is to see CALPIS® enjoyed in locations all ® Created in 1919 as Japan’s first cultured milk drink, CALPIS has been enjoyed by generation after In addition to ready-to-drink beverages like CALPIS across the world. In Taiwan! generation of happy customers. WATER® and CALPIS SODA®, products like CALPIS In Indonesia! OASIS, a perfect way to stay hydrated in day-to-day Inheriting the same lactobacilli and the natural manufacturing method known as “fermentation” devel- activities, bring “a new delicious” to the CALPIS® line. oped over 95 years ago, CALPIS® has evolved to meet the changing needs of the time. From home-use The wide lineup of CALPIS® products offers beverages to the outdoors, from young to old, and from beverages to foodstuffs, there is a CALPIS® something perfectly suited for each generation. for all customers, whoever they are and wherever they may be found.

CALPIS® Station Fun to make and to drink, CALPIS® CALPIS® Starter (lactobacilli) stations introduce the joy of has been passed down for CALPIS®, and can be found at mass over 95 years. retailers and other locations.

Created with CALPIS® drinkers in mind, the “Peace Bottle” is notable ® not only for retaining the deli- The Values of CALPIS ciousness of its contents, but also for being both easy to use and Delicious, healthy, safe and economical. These are environmentally-friendly. the values which our founder, Kaiun Mishima, entrusted to CALPIS®. Now, over 95 years later, ® The original CALPIS®, Enjoy the Taste of CALPIS launched in 1919 we continue to pass on these same founding Whenever and Wherever You Are principles. The sweet memories created by making In order to offer the delicious taste of CALPIS® in CALPIS® together, with family and friends, is part non-beverage variants such as ice cream and of what has endeared us to so many. In the future, confectionaries, we work alongside a wide variety CALPIS® will continue to preserve the same of manufacturers to develop and release tradition of values and trust. Our one goal remains collaboration products. Additionally, we are also committed to offering the same, to join people together in professional-use products for the purpose of smiles. expanding delicious menus that feature CALPIS® at eating-out establishments such as cafés, restaurants and taverns. Cooking and Desserts... The Versatility of CALPIS® Not just for beverages, CALPIS® can also be used as an ingredient in desserts and cooked dishes. A unique flavor born from nature, Our cookbook CALPIS® makes dishes much more features recipes delicious. invented by our Employee offering free samples employees. of CALPIS® to commemorate the drink’s birthday on the day of the CALPIS® Popsicles CALPIS® Candy yearly “Tanabata” Star Festival on LOTTE Co., Ltd. CALPIS® x MINTIA Choice Recipes from the Employees ® July 7 Asahi Food & Healthcare Co., Ltd. of CALPIS (Ikeda Publishing) / Released in June 2011

6 7 Topics 2 Researching CALPIS® Researching the Healthy Benefits of Cultured Milk and Lactobacilli

® Since the 1970s, our company has been engaged in The Science of CALPIS : research into CALPIS® Cultured Milk. This has led to the discovery, for instance, of components which help to Possibilities and Results regulate blood pressure. In recent years, we have also discovered qualities which improve vascular function and circulation, and which may prove useful in the prevention CALPIS® is made using our original cultured milk. Years of study into the hidden properties of of arteriosclerosis. CALPIS® Cultured Milk has led to the discovery of a variety of healthy and beneficial effects. In addition, we are also pursuing promising new research into the improvement of memory and sleep Research into CALPIS® has expanded to include research into fields such as functional lactobacillus, habits. Over the years we have also discovered lactobacilli which can reduce allergy symptoms, control stress, and Reduces allergy effective microorganisms, and intestinal environments, all leading to impressive results. symptoms ● reduce metabolic syndrome. We strive to support the ● Regulates blood health and happiness of our customers, and will continue pressure to search for the many hidden benefits of cultured milk Alleviates ● Reduces metabolic fatigue ● syndrome and lactobacilli. The positive effects discovered in cultured milk and Lactobacillus acidophilus L-92 Strain lactobacilli An original strain of lactobacilli discovered by Calpis Co., known to Controls ● Improves memory help balance the immune system and stress ● reduce allergy symptoms. Retains moisture ● Improves vascular function for beautiful skin ● The Study of Flavor

CALPIS® was born from the desire to provide a The Potential Application of delicious and healthy beverage to people around the Effective Microorganisms world. This sentiment is at the root of the flavoring in other Fields technologies that we have developed over years of research to bring forth a multitude of flavors. In turn, these technologies serve as the foundation Calpis Co.’s research into intestinal environments and underpinning the special appeal behind our products. foodstuffs has led to the accumulation of a number Our in-depth research into the delicious flavors of other effective microorganisms in addition to created using the blessings of natural milk and lactobacilli. These discoveries have led, in turn, to the lactobacilli is what guarantees our products are of development of products such as animal feed the highest quality. probiotics or products for use in sustainable farming.

Lactobacilli Yeast By harnessing the potential of microorganisms, we are working to ensure a global environment with safe, reliable sources of food.

CALSPORIN® CALPIS® Starter An aggregation of microorganisms CALSPORIN® and Animal Feed Additives such as lactobacilli and yeast CALSPORIN® helps to improve the intestinal environments of livestock, allowing animals to grow and/or reproduce to their full genetic potential.

8 9 Pairing the Appeal of the CALPIS® A Look at Calpis Co.’s Top Beverage Brands Brand with a Variety of Needs The wide variety of CALPIS® brand milk-based In 1904, our founder, Kaiun Mishima, discovered an extraordinary drink while traveling through Inner beverages is beloved for their delicious flavor and Mongolia. That drink was cultured milk—cow or horse milk fermented using “lactobacilli.” originality. From thirst-quenching drinks to dessert- After drinking the fermented milk for several days, Mishima soon noticed that he felt stronger and like drinks for leisurely savoring a mild flavor, ® happier. He had just discovered a healthy and delicious new drink. When Mishima returned to Japan, CALPIS and its sweet and sour taste serves up he began studying milk and lactobacilli for himself, and carried out a series of repeated experiments beverages to satisfy the needs of all customers, from that eventually yielded an unprecedented deliciousness. This would go on to become Japan’s first young to old. cultured milk drink, CALPIS®, in 1919. Since that time, we have continued to offer healthy and delicious beverages to generation after generation.

A Variety of Healthy and Functional Drinks to Support Busy Modern Living and Eating Habits

Using its proprietary lactobacilli and fermentation technologies cultivated through years of research, Calpis Co. also produces beverages that have been specially designed to promote health. Through offerings such as the FOSHU (Foods for Specified ® The Fun of CALPIS Starts Even Health Uses) “AMEAL® S” and “KENCHAOU” as well Before You Drink It as “MAMORU HATARAKU NYUSANKIN,” a delicious way to stay active, we support the health of the CALPIS® concentrate offers a delicious taste which is people of today. healthy, safe and economical, with the added freedom of being able to mix it to suit your tastes. CALPIS® Growing in Popularity concentrate is also versatile, and can be used as an ingredient in cooking and desserts. Time spent mixing Year after Year for Its Soothing CALPIS® beverages or experimenting with it as a Taste: The “Hotto” Series complementary ingredient is a great way to nurture family communication and fun. The unmistakable The “Hotto” series of canned beverages made its deliciousness of CALPIS®, which has been nurtured debut in 1992 with “HOT LEMON.” Since then, it has using lactobacilli and the natural manufacturing been an increasing favorite among people of all ages method known as “fermentation” passed down for For Genuine Grape Taste, for delivering a soothing taste while also warming up over 95 years, will continue to bridge generations Look No Further Than Welch’s the body during cold seasons. with the smiles that it creates. From 2003 onwards, the “Hotto” series has also “Welch’s” is a fruit juice beverage that has remained been available in concentrate form to enable families a perennial consumer favorite by virtue of its rich to casually enjoy its warm and soothing taste at taste and high quality. CALPIS® offers an attractive home as well. We will continue to expand on the lineup of grape-centered Welch’s products for a lineup of this series while preserving the gentle variety of occasions. sweetness that defines our flagship “HOT This lineup includes the “100%” series, which comes LEMON” beverage and other products in a sizeable 800g PET bottle for the whole family to under the “Hotto” brand. amply enjoy the rich taste of Welch’s, as well as

CALPIS® Gift Set carbonated and various types of juice variations for * These beverage brand products manu- adults. All of these promise the deliciousness of juice factured by Calpis Co., Ltd. are produced with the highest quality. distributed by Asahi Soft Drinks Co., Ltd.

10 11 Rich Flavorful and Tasty Dairy Products Crafted with Quality Ingredients and Unparalleled Technique

The advanced dairy processing techniques and strict quality controls developed through the manufacturing of CALPIS® are also used to create our premium dairy products, such as butters or fresh creams. These products are made from milk- fat produced from the highest quality fresh milk. Our dairy products are distributed by Calpis Exposition of CALPIS® Foods Service Co., Ltd., and are available through dairy products professional channels and at department stores and mass retailers (butter only). A preferred prod- uct of deluxe class restaurants, hotels and confectioneries, our dairy products help to create ‘the added value of flavor and taste’ so integral to these venues.

Professional-Use Dairy Products A variety of multi-purpose butters and fresh Professional-Use creams are available to help support culinary professionals in their trade. Products

● Everyone’s Spreading the Word after Spreading the Butter Fresh Creations in Flavor and Taste Originally, dairy products by Calpis Co. were manufactured for profes- sional use. It wasn’t long, however, until we received numerous requests for Every Culinary Scene to make them available to the general public. To satisfy such requests, we Buttermania commercialized “CALPIS CO. TOKUSEN BUTTER” for general public (Published by DAIWASHOBO)/ CALPIS® is made from fresh, unprocessed milk—the same high-quality milk used to create our dairy Released in October 2013 consumption. With its white hue and rich dairy taste, this product has a A book filled with recipes using CALPIS® products such as butter and fresh cream. Adding the lactobacilli and fermentation techniques cultivated in highly dedicated following. Specially-Selected Butter by the greatest the manufacturing of CALPIS® further enhances the taste, creating a fresh evolution in flavor and taste. experts of all—Calpis employees. Our Institutional & Industrial Products Business exists especially to serve food experts, restaurant outlets, confectioneries, wholesale manufacturers and other culinary professionals by offering quality goods and services. In recent years we have even collaborated with several companies to create special products, such as sweets or breads, which allow consumers to enjoy the delicious taste of CALPIS® in a variety of new forms.

12 13 We Use Special Beneficial Microorganisms, Compounds and Technologies in Our Many Mail Order “Functional Foods”

Calpis Co. offers a range of functional foods which make use of our own original compounds and technologies. Products include “ARERU-CARE,” which contains the functional lactobacillus, Lactobacillus acidophilus L-92 strain, “SHINAYAKA- CARE,” with distinct peptides, and “BIOMINE,” with the new probiotic strain C-3102. We offer these supplements and other functional foods to KENSAI-SEIKATSU / ARERU-CARE customers via mail-order to provide support for A simple everyday supplement for healthier lifestyles. customers who wish to grow healthier from the inside.

Functional Foods

KENSAI-SEIKATSU / SHINAYAKA-CARE SHINAYAKA-CARE helps customers concerned about their age or lifestyles to remain healthy and physically fit. * KENSAI-SEIKATSU-brand products are only available through Through Technologies Borne from Our Pursuit of mail-order KENSAI-SEIKATSU / BIOMINE Online shop (Japanese only) Lactobacilli and Fermented Milk, We Strive to Do Our Part The probiotic strain C-3102 promotes https://www.calpis-shop.jp/ health by controlling microbial flora. to Keep People Feeling Healthy and Happy Every Day

Our founder, Kaiun Mishima, created CALPIS® in order to contribute to people’s health and happiness through the use of lactobacilli. At Calpis Co., we have inherited this same determination, which is why we have spent years researching lactobacilli and other effective microorganisms. Behind this research is the sincere hope that our results will help customers spend every day feeling healthy and happy. We will continue to offer wholly-unique functional foods with this sentiment in mind.

14 15 Our Proprietary Probiotics for Animal Feed or Water Help Produce Safe, High Quality Livestock and Poultry Products

Available both within and outside of Japan, our Animal Digestive Tract ® ® Effective CALSPORIN and FINELACT are animal feed Lactobacillus Bifidobacteria CALSPORIN® Microbes［ ］ probiotics that incorporate the use of Bacillus Upon administering CALSPORIN®… subtillis, Lactobacillus and other microbes to help Increasing Beneficial Beneficial Bacteria to improve the balance of the intestinal flora and Bacteria makes improved reduced due to stress hereby enhance the performance and health of feed efficiency

livestock. CALSPORIN® Stress As the need for safe and dependable livestock products continues to grow worldwide, livestock industries are feeling the pressure to offer live- stock products that do not incorporate the use of antibiotics for growth promoter. In all animal-producing countries, people are seriously concerned about the use of antibiotics in feed. The importance of reducing antibiotic usage in animal production is a topical issue. Animal Feed By virtue of enabling livestock breeders to raise animals without depending on antibiotics Probiotics and being tailored for efficient use in animal feed, CALSPORIN® and FINELACT® are receiving remarkable attention from livestock industries overseas as a part of the solution. Scientifically-

designed trials implemented both within and CALSPORIN® outside of Japan testify to the growth-boosting effects of CALSPORIN®, which is currently uti- lized by major meat producers both domestically and overseas. We Provide Support from Production Field in order to We currently engage in sales activities paired Bring Healthy and Safe Food to the People around the World with technical support worldwide to serve the interests of such producers while also ensuring Microorganisms, or microbes are microscopic life forms that cannot be seen with the naked eye. There that consumers at the end of the chain are able to ® are countless and tiny microbes that reside inside the digestive tract of humans and animals, and they get their hands on livestock products that are both CALSPORIN and other products under our may play important roles to control the overall health balance. We, CALPIS, apply our longstanding safe and delicious. Animal Feed Business research and technology of microbes to contribute support for healthy growth in livestock. Our probi- otics for animal feed is to effectively help the livestock farmers while keeping smile of consumers beyond the table utilizing great capacity of these tiny microorganisms.

16 17 Bringing Happiness and Comfort. Bringing CALPIS® to the World

Our eating habits are closely related to the Overseas Locations climates, cultures and lifestyles of our regions. In ◦ Local subsidiaries ◦ Representative offices and branches order to run a successful beverage business overseas, it is important to grasp the characters and features of each country, and to offer value Thailand China (2005-) tailored to those local markets. (2013-) Currently, Calpis Co. has local subsidiaries and Taiwan U.S.A. - Vietnam (1995 ) (1991-) offices in eight locations across the world. Each (2006-) Indonesia location offers the healthy and delicious flavor of (1994-) CALPIS® through products specially designed for the region. Because, even when we can’t speak the same language, we believe that a good product will bring smiles to people’s faces.

International Beverages

Let’s Fill the World with Peace. Because We Love to See the Whole World Smile

We hope that one day all the people of the world will get to experience the one-and-only flavor of Offering products specially suited to each country or region’s needs. delicious and healthy CALPIS®. To help see this happen, we are concentrating on expanding our beverage business internationally, bringing CALPIS® to Asia and the world beyond. Calpis Co.’s international beverage business is committed to offering the unparalleled flavor of CALPIS® in a form best suited to each country’s culture and economic climate. In neighborhoods throughout the world, we hope to see CALPIS® products and beverages specifically suited to the area. By introducing CALPIS® brand, our goal is to deliver worldwide smiles.

18 19 Research and Development

Creating New Value by Combining Unparalleled Expertise Researching the undiscovered benefits of lactobacilli, we contribute to society through the development of new technologies and functional components. with the Latest Scientific Developments Since our companies founding, we have carried out function, skin moisturization, and memory. These research into lactobacilli-producing materials as benefits promise a range of non-beverage well as the properties of lactobacilli itself. This applications, such as the creation of new foodstuffs We pursue healthier and more delicious products research has led to the successful development of or cosmetics. through the use of scientific evidence. a variety of functional components and new By pursuing the benefits hidden in lactobacilli and CALPIS®, the first cultured milk drink in Japan, was technologies. other effective microorganisms, we at Calpis Co. will born from our founder, Kaiun Mishima’s desire to For instance, research into CALPIS® Cultured continue to make contributions to society through contribute to the wellbeing of people throughout Milk has led to the discovery of qualities which the development of new bioactive the world by creating something that was both regulate blood pressure, including discovery of the materials and products. healthy and delicious. Inheriting the same convic- component responsible, Lactotripeptide (LTP). This Supervising the Microbiology & ® tions as our founder, we pursue research into Fermentation Laboratory and the in turn led to product development of CALPIS effective microorganisms such as lactobacilli and Products Development Center, this Cultured Milk/AMEAL® S. Recently, department focuses on strategic yeast, which are key to creating healthier, more planning for the promotion of research “immunomodulatory” lactobacilli with anti-allergic delicious beverages and foods, and which have the and development. effects and protection against influenza have also Research and ◦ Development of tasty beverages potential to improve the happiness and wellbeing Development been discovered and are being developed for The Pursuit and foods Planning of Flavor ◦ Studies of flavors derived from of those around us. Department productization. Also, research into lactobacilli- fermentation producing cultured milk and peptides has resulted in the discovery of many new benefits, such as improved vascular The Foundation Behind Calpis Co., Ltd. Pursuing diverse research focused on Research and CALPIS® Cultured Milk microorganisms, fermentation tech- Development niques and peptide application, this and microorganisms department specializes in developing such as lactobacilli. functional components which help to support healthy bodies and minds. Microbiology & Products The Search for The Value ◦ Biogenics LTP Fermentation Development Effective of Health ◦ New functional foods Laboratory Center Microorganisms and components To control stress, ◦ Animal Feed Probiotics reduce metabolic ® ® CALSPORIN , FINELACT syndrome, and fight ◦ Immunomodulatory lactobacillus aging, etc. Driving our original products, this Lactobacillus acidophilus L-92 strain department uses technologies in dairy treatment as well as expertise in the creation of rich and complex flavors to develop healthy and delicious bever- Intestinal Flora Laboratory ages and food. A Laboratory Specializing in Evaluating Intestinal Environments for the Promotion of Food and Medical Research Countless microorganisms (bacilli) reside in the intestinal tracks of both humans and animals, and unique bacterial microbiota (known as “intestinal flora”) form according to a creature’s age and diet. The compo- sition of a creature’s intestinal flora has a significant impact on their health and well-being.

Lactobacillus Upon request, our Intestinal Flora Laboratory—part of our Microbiology & Fermentation Laboratory— acidophilus L-92 strain can use its wealth of scientific data, collected over many years of research, in order to evaluate intestinal environments. By measuring and analyzing bacterial flora and metabolites, the laboratory helps to support the research, development and quality certification of universities, pharmaceutical firms, food companies, ® CALPIS Starter and other such outside organizations.

20 21 Initiatives on Safety and Reliability

All manufacturing processes follow the highest The CALPIS® Peace Bottle Calpis Co. Follows Strict Quality Control Measures, filling line standards of quality and safety. with Safe, Reliable Products as our First Priority Strict hygiene and quality controls are carried out on-site during manufacturing. For instance, when producing CALPIS®, all processes, from Our unique quality assurance system is based on the receiving of ingredients to fermentation, ISO 9001 and HACCP quality controls. maturation, filling and packaging, are performed In order to provide safe, high-quality products to our Major Items for Inspection with the latest in automated equipment. Strict customers, we follow an original quality assurance hygiene control and inspection before shipping, Peace Bottles system based on ISO 9001 international quality man- based on HACCP techniques, is also carried out, before labeling agement certification and HACCP* food sanitation Planning to further ensure quality and safety. control management systems. Strict quality controls are Product Concept In 2008, an aseptic production line for PET bottle To live up to the trust of our customers that we (Brand, Flavor, Packaging, enforced during all stages of production, from product Volume, etc.) beverages was also installed. We have improved the have earned for over 95 years, our manufacturing development, to the selection and supply of ingredients, quality and safety of the production line, followed division, which bears the greatest responsibility ® to manufacturing and shipping. Development Production up with an additional line in 2014. The reduction for the safety and reliability of CALPIS products, Ingredients, Proportions, During product development, ingredients, packaging, Facilities, Suitability, of water and vapor when using the aseptic line has carefully produces each individual product with Design, Standards, Compliancy production methods, labeling and so on are inspected Packaging helped to reduce environmental burdens. pride in and love for their work. according to a 200-point inspection list so as to ensure safety, quality, and accurate labeling. Only when an item passes all points can it be released as a product. Ingredi- ents used during production have a strong impact on Ingredients Major Production Facilities in Japan Cultured milk storage tank in final safety, so all ingredients are evaluated for safety Safety Inspections, Packaging Gunma Plant Compliancy, Safety, Compliancy before being selected. In addition to choosing suppliers ● Gunma Plant Quality, Preservability with strict quality controls, we also continue to randomly Labeling Est. 1972 ● Equipment: 2 ● - select and check ingredients once mass production has Compliancy, Area: 135,960 m Capacities are listed in parentheses. begun. These voluntary inspections help to further Classification,Listing of ● Products: Concentrated beverage bottle line (500/min.) Ingredients, Expiration Dates, CALPIS® (Peace Bottle), CALPIS Small PET bottle line (500/min.) Storing Methods, ensure quality and safety. ® ® Manufacturer's Name, WATER , Welch’s, AMEAL S, and Aseptic PET bottle line (600/min.) * HACCP (Hazard Analysis and Critical Control Points): A systematic Nutritional Information, other PET bottle beverages; Butter production line preventive approach that is established and instituted to reduce or elimi- Warnings, etc. Butter ; CALSPORIN®; FINE- Etc. nate the risk of food safety hazards at all stages of food production and LACT®; etc. preparation, including packaging, distribution, etc.

● Okayama Plant

Est. 1968 ● Equipment: 2 ● Area: 72,037 m -Capacities are listed in parentheses. ● Products: Concentrated beverage bottle line (200/min.) CALPIS® (Peace Bottle), CALPIS PET bottle line (500/min.) WATER® and other PET bottle Butter production line beverages; Butter; etc. Etc.

Fermentation tank for the production of CALPIS®

22 23 Communication Endeavors

Each and Every One of Us at Calpis Co. Will Do Everything Social Contributions

in Our Power to Put Smiles on the Faces of Our Customers Calpis Co. remains as committed as ever to seeing our children grow up healthy and strong.

esponse t n R o C Our children are the future, and Calpis Co. has developed a variety of g i us Shared information and feedback allow us in to el m programs to ensure that they grow up healthy and strong. An excellent ab e to incorporate customer opinions. L r F ® d e example of this is the CALPIS Hina Matsuri (Doll’s Festival on March 3) e e v d o b r In order to continue providing goods and services which satisfy cus- a Gift program, which has been a feature of the company since 1963. First p c

k m tomers, we aim to incorporate the opinions and suggestions received I suggested by our founder, Kaiun Mishima, this program provides children from our customer relations department as swiftly and as accurately with delicious CALPIS® to enjoy in place of the traditional white saké drunk as possible. Allergy warnings were changed as a toast on Doll’s Day. to a diagram so as to be All feedback received from our customers and clients via telephone easier to understand. Currently, invitations are sent to kindergartens and nursery schools and email is entered into a database. This information is then shared throughout Japan. Participating schools are then sent presents of CALPIS® with the relevant departments. When complaints, requests, opinions for toasting the holidays as well as and miniature picture books. Over 3 CALPIS® and mini picture book related to marketing and so on are received, a Request for Improve- for Hina Matsuri (Dolls’ Festival) million children now celebrate the festival with CALPIS® every year. ment is sent to the relevant department. This allows us to continually better our products and services. Additionally, to more fully understand Nurturing healthy imaginations for our children by CALPIS® Hina Matsuri our customers’ wishes and to bring greater satisfaction and joy through (Doll’s Festival) promoting picture books and the love of reading. Celebration: our business, we also hold Customer Satisfaction Improvement Meet- Fun event in which ings, where specific methods for improvement are discussed. CALPIS® Picture Books, which we produce in cooperation with employees read aloud picture books to In the future, we at Calpis Co. will continue to incorporate customer external publishers, have been available since 1982. These are a children inquiries into our business activities as swiftly, accurately and fully as crystallization of our goal of helping to nurture the healthy imagina- possible. Customer feedback will always remain the guiding light in tions of our children by promoting the love of picture books and Note: Labels differ according to bettering our products. the product. reading. Also, upon the Hina Matsuri (Doll’s Festival) holiday in 2014, Calpis Co. hosted an event at its headquarters where local parent and child residents were invited to hear employees read aloud picture books and try making CALPIS® together. Through Environmental Contributions such happy activities, we leave lasting positive impressions on par- The CALPIS® ticipating students. Picture Books series We engage in environmental action, while thanking for the blessings of nature. Through onsite classes for elementary school students, we support In order to reduce our environmental footprint at all stages of opera- learning about “food” as well as the formation of dreams for the future. tions, from product development to production and sales, we at Calpis Co. have acquired ISO 14001 international environmental management As a unique form of community activities that takes advantage of our certification, and continually pursue company-wide improvements. For knowledge regarding lactobacilli and fermentation, since 2008, we have been instance, at the product development step, we have reduced the envi- conducting onsite classes for elementary school students. These classes have Biotope (Gunma Plant) ronmental footprint of our product by decreasing the weight of been dubbed the “CALPIS® Children’s Lactobacilli Laboratory” as of 2013. packaging and containers (as with the shrink label of CALPIS WATER®) The hands-on portion of these classes, which is themed after lactobacilli and and through the use of biomass materials (as with the new Peace fermentation and incorporates all five senses, stimulates student participants’ Bottle). At our plants, in addition to using low burden natural gas in interest in “food.” In the discussion portion, which has student participants place of crude oils, we successively recycle 100% of our waste materials. CALPIS® Children’s Lactobacilli ponder the “future” alongside employees of Calpis Co., the importance of Laboratory Moreover, we are working to effectively reuse the sludge generated “creating something from nothing and tying it into future dreams” is con- Groups of 5 to 6 students are paired Green Curtain (Okayama Plant) during water treatment as a raw material for fertilizer. with their own guest teacher veyed while shedding light on the story of the birth of CALPIS®.

24 25 Company Profile Executives (as of March 19, 2014) Overseas Operations

Name Calpis Co., Ltd. Directors Officers U.S.A. CALPIS AMERICA, INC. China CALPIS CO., LTD. SHANGHAI Headquarters 2-4-1, Ebisu-minami, Fujio Yamada Fujio Yamada 455 Dividend Drive REPRESENTATIVE OFFICE Shibuya-ku, Tokyo, Japan President and Representative Director Chief Executive Officer Peachtree City, GA 30269, U.S.A. No.906B Citic Square, 1168 Nanjing Road (West), Postal code 150-0022 Minoru Yamasaki Minoru Yamasaki Phone: +1-678-961-7000 Shanghai City, China 200041 Director Executive Officer Phone +81-3-5721-3111 Phone: +86-21-6253-0316 Shunsuke Fuji Shunsuke Fuji Established October 13, 1917 Director Senior Officer Taiwan TAIWAN CALPIS CO., LTD. Capital stock ¥13.056 billion Takeshi Ichiki Takeshi Ichiki 4F-3., No.126, Sung Chiang Road, CALPIS (SHANGHAI) Number of employees 513 (as of March 31, 2014) Director Senior Officer Zip 10457, Taipei, Taiwan, R.O.C COMMERCE & TRADE CO., LTD. Net sales ¥103.4 billion Takahiro Nitanda Takahiro Nitanda Phone: +886-2-7702-0088 Phone: +86-21-6259-6326 Director Senior Officer (Ordinary income of ¥4.6 billion) Kazuo Motoyama Youichi Marunaga Consolidated figures for FY 2013* Outside Director Senior Officer Indonesia PT CALPIS INDONESIA Vietnam CALPIS CO., LTD. HO CHI MINH CITY *As of September 2013, Calpis Co., Ltd. EJIP Industrial Park, Plot 7-C Cikarang REPRESENTATIVE OFFICE has transferred control of its Japanese Katsutoshi Takahashi Yoshio Saito Senior Officer domestic beverage businesses to Asahi Outside Director Selatan, Bekasi 17550 Indonesia 9th Floor, ITAXA HOUSE, 122-124-126 Nguyen Thi Soft Drinks Co., Ltd. Takashi Hirahara Phone: +62-21-897-0240 Minh Khai St., Dist. 3 Ho Chi Minh City, Vietnam Officer Stockholder Asahi Group Holdings, Ltd. Phone: +84-8-3930-8485 Kiichi Matsumoto Thailand CALPIS OSOTSPA CO., Ltd. Statutory Auditors Officer 6th Floor, White Group Building 1, Europe CALPIS CO., LTD. Satoru Ikeda Jyun Kuranari Standing Statutory Auditor Officer 75 Soi Rubia, Sukhumvit 42Rd., EUROPE REPRESENTATIVE OFFICE Noriyuki Nakanishi Kazuhiro Kawamura Prakanong, Klongtoey, 46, rue Paul Valéry 75016 Paris CEDEX 16, France Standing Statutory Auditor Officer Bangkok 10110 Thailand Phone: +33-1-44-29-27-67 Yoshihiro Tonozuka Phone: +66-2-381-9941 Statutory Auditor CALPIS Global Website (English) http://www.calpis.net/

Dairy Product Sales Calpis Foods Service Co., Ltd. Phone: +81-3-5768-7481 3F Calpis headquarters building, 2-4-1, URL http://www.calpis-cfs.co.jp Ebisu-minami, Shibuya-ku, Tokyo, Japan 150-0022

Organization (as of April 1, 2014)

Headquarters Headquarters ◦ Internal Auditing Office ◦ Dairy Materials Purchasing Department ◦ Corporate Planning Department ◦ Functional Foods Business Department Performance Trends (consolidated) ◦ Financial Department ◦ Feed Division ◦ Human Resources & General Affairs Department ◦ International Beverage Division ◦ Quality Assurance & Environment Department ◦ Production Department Net Sales (100 millions of Yen) Income before Extraordinary Profit / Loss and Taxes (100 millions of Yen) ◦ Customer Service Department ◦ Production Technology Department ◦ Dairy Industrial Products Division ◦ Materials Purchasing Department

1,200 80 Research & Development Plants

◦ Research and Development Planning Department ◦ Okayama Plant 900 60 ◦ Products Development Center ◦ Gunma Plant ◦ Microbiology & Fermentation Laboratory

600 40 Asahi Soft Drinks Co., Ltd. Sales Headquarters - Calpis Products

◦ Sales Promotion Department ◦ Hokkaido Branch ◦ Kinki Regional Branch 300 20 ◦ Sales Department for Nationwide ◦ Tohoku Branch ◦ Chugoku and Shikoku Branch Off-Premise Retailers Kita-Tohoku Sales Office Okayama Sales Office ◦ Concentrated Beverage & Gift Department ◦ Tokyo Metropolitan Branch Shikoku Sales Office ◦ Beverage Business Department ◦ Kanto Branch ◦ Kyushu Branch 0 0 2009 2010 2011 2012 2013 (Year) ◦ Advertising Department Niigata Sales Office Minami-Kyushu Sales Office *1 *2 Nagano Sales Office *1 Business results for FY 2012 are from the irregular period between April 2012 and December 2012 due to the Company ◦ Chubu Hokuriku Branch amending its fiscal term. Shizuoka Sales Office *2 As of September 2013, Calpis Co., Ltd. has transferred control of its Japanese domestic beverage businesses to Asahi Soft Hokuriku Sales Office Drinks Co., Ltd. * The marketing and distribution of beverage brands belonging to Calpis Co., Ltd. in Japan is conducted by the Calpis Sales Division at Asahi Soft Drinks Co., Ltd.

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