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Solid Foundation, Strong Growth Potential Solid Foundation, Strong Growth Potential Annual Report 2008 The Takara Group unlocks new potential in the culinary, lifestyle culture and life science fields through its fermentation technologies for traditional Japanese sake and its cutting-edge innovation in the biotechnologies. These initiatives have consistently created new value and contributed to well-being and prosperity in the community. Takara Holdings Inc., the Group’s holding company, coordinates and oversees the operations of Group companies with the aim of maximizing rewards and results. Under its umbrella are the Takara Shuzo Group, which develops the alcoholic beverages and seasonings business; the Takara Bio Group, which develops the biomedical business; and Takara Healthcare Inc., which plays a key role in accelerating growth in the health foods business. The Takara Group has been actively promoting evolution in five business areas—business results, business operations, management, corporate culture and human resources, and environmental and social responsibility—under Takara Evolution-100 (TE-100), the Group’s 10- year, long-term management concept enacted in 2000. The concept focuses on establishing the alcoholic beverages and seasonings business as a stable profit generator, further broadening the potential for growth through the biomedical and health foods businesses, and in turn increasing underlying corporate value. Forward-Looking Statements Statements in this report, other than those based on historical fact, concerning the current plans, prospects, strategies and expectations of the Company and its Group represent forecasts of future results. While such statements are based on the conclusions of management according to information available at the time of writing, they reflect many assumptions and opinions derived from information that includes major risks and uncertainties. Actual results may vary significantly from these forecasts due to various factors. Factors that could influence actual results include, but are not limited to, economic conditions, especially trends in consumer spending, as well as exchange rate fluctuations, changes in laws and government systems, pressure from competitors’ prices and product strategies, declines in selling power of the Company’s existing and new products, disruptions to production, violations of the Company’s intellectual property rights, rapid advances in technology and unfavorable verdicts in major litigation. 00 Annual Report 2008 Corporate Philosophy Contributing to the creation of a vital society and a healthy lifestyle through our fermentation technology and biotechnology in a way that achieves harmony with nature Contents Corporate Philosophy 01 Takara Group Business Chronicles 02 At a Glance 04 Special Feature: Solid Foundation, Strong Growth Potential 06 An Interview with the President 10 Business Outline 15 Corporate Governance 20 Board of Directors and Auditors 22 Environmental and Social Responsibility 23 Six-Year Financial Summary / Fact Sheet 24 Major Consolidated Subsidiaries / Corporate Data 26 Corporate Philosophy 01 0 Takara Group Business Chronicles As of April 1, 2008 FY2001 Apr. 00 Long-term management concept Takara Evoluti FY2003 Apr. 02 Move to a holding company, Takar FY2005 >>>>>>>>>>>>>>>>>>>>>>>>> FY2001 >>>>>>>>>>>> FY2005 >>>>>>> Alcoholic Beverages and Seasonings 1925 Takara Shuzo Co., Ltd. is established. FY2001 Mar.01 Shares in Luc Corporation, Ltd. are acquired. 1949 Takara Shuzo Co., Ltd. is listed on Mar.01 Shochu ZIPANG is launched. the Tokyo Stock Exchange. FY2002 Sep.01 Ikkomon (a 100% pure sweet potato shochu), Kurokame (a 1957 Entering into the beer market. genuine sweet potato shochu produced using black malted (Takara Beer is launched.) rice) and Gankutsuo (a genuine jar-aged rice shochu stored 1967 Withdrawal from the beer market. in traditional shochu caves) are launched. 1970 Fermented seasoning Ajishirube is Oct.01 The Shirakabe-gura Brewery is completed at the Nada launched. Takara shochu Jun plant as the center of Takara’s specially designated sake business. 1972 Imported sales of Chinese alcoholic FY2003 Apr.02 Takara Shuzo Co., Ltd. is established through restructuring and beverages begin. establishment of the holding company. 1977 Takara Shochu Jun is launched. Dec.02 Ryu-kyu Awamori Omotohomura is launched. 1979 The “Come Back Salmon Campaign” is begun. Dec.02 Iki Mugishochu Otoha is launched. 1983 Takara Sake USA Inc. is established. Takara Can Chu-Hi Mar.03 Production network is revamped. 1984 Takara Can Chu-Hi is launched. FY2004 Aug.03 Takara Hon Mirin Junmai is launched. 1986 Takara Barbican non-alcoholic beer is launched. Sep.03 Sho-Chiku-Bai Ten is launched. 1988 Takara Shochu Jun Legend is launched. Mar.04 Takara gains approval to label Fiber Parlor as a food 1993 Surioroshi Ringo apple juice is launched. for specified health uses. Sho-Chiku-Bai Calcium Parlor is approved as a food for specified health uses. FY2005 Aug.04 Takara Yuki Hon Ryoriseishu is launched. Ten 1994 Two new products, Surioroshi Ringo and Ara Shibori Orenji, are Sep.04 Towari, a 100% buckwheat shochu, is launched. launched as part of Takara Can Chu-Hi Deluxe series. Sep.04 Wakamurasaki-No-Kimi, a shiso (perilla) shochu is launched. 1995 Beijing Takara Foods Co., Ltd., a joint venture company, Feb.05 Sho-Chiku-Bai Namareishu Kurokoji Yondan Karakuchi is launched. (currently Takara Shuzo Foods Co., Ltd.) is established. Mar.05 Long-aged shochu Hizou No Tobira is launched. Basic CI design is changed. FY2006 Aug.05 Takara Kyo Mirin, using genuine rice shochu, is launched. FY1999 Sep.98 Green Ink Accounting Report (currently Green Ink Corporate Sep.05 Sho-Chiku-Bai Shirakabe-gura Yamahai Daiginjo and Yamahai Tokubetsu Report) is issued. Junmai, both stored in jars in an ice room for three years, are launched. Oct.98 Enters wine business to start import / marketing of California wines. Sep.05 Kurokabe-gura Honkaku Mugijochu Juku, a genuine wheat shochu, FY2000 Mar.00 <Densho Kenju>Bainiku Ekisu Iri Noshuku Inryo is launched. is launched. Mar.00 Tokusen Takara Yuki Hon Mirin, which acquired international Sep.05 Bottled Takara Chu-Hi is launched. certification from the Organic Crop Improvement Association Sep.05 Shirakabe-gura Kasutori Shochu Hinomoto is launched. (OCIA), is launched. Oct.05 Kyo Takara Hon Mirin N is launched. Kyo Takara brand exclusively for business use is introduced. Biomedical 1970 The Central Research Institute is completed in Otsu. FY2001 Jul.00 High-throughout genome sequence analysis center Dragon Method for cultivation of Bunashimeji mushrooms is developed. Genomics Co., Ltd. is established. (Takara Bio acquires Dragon 1979 Sale of first domestically produced Genomics in October 2002.) restriction enzymes, research reagents for Sep.00 ICAN™ method (isothermal gene-amplification method) is launched. genetic engineering research, starts. FY2002 Mar.02 Efficient protein expression system using cold-shock vector method 1988 Exclusive rights to sell gene amplification is developed equipment using PCR method in Japan FY2003 Apr.02 Takara Bio Inc. is established through restructuring and is obtained. establishment of the holding company. Bunashimeji Takara Biotechnology (Dalian) Co., Ltd. is Feb.03 Exclusive rights for use in Asia are obtained from MolMed S.p. A. for 1993 Mashrooms established in China. gene therapies, including suicide gene and vaccine therapies for cancer. The exclusive worldwide rights to PCR method is obtained. FY2004 May.03 A Japanese patent application is filed for 1995 The RetroNectin® method, a highly efficient gene transduction ICAN™ method. method, is developed. May.03 Takara licenses its RetroNectin® gene therapy Takara Korea Biomedical Inc. is established technology to VIRxSYS Corporation of the U.S. in Seoul. Oct.03 Takara Bio Inc. issues shares to third parties. FY1997 Apr.96 Takara Agri Co., Ltd. is established. Jan.04 Takara Biomedical Technology (Beijing) Co., (Takara Bio acquires Takara Agri in August 2003.) Ltd. is established in Beijing, China. Nomu Kanten FY1998 May.97 Sale of RetroNectin®, a reagent used in FY2005 Nov.04 Nomu Kanten <Calorie-Off> is launched. <Calorie-Off> gene therapy, begins worldwide. Dec.04 Takara Bio succeeds in sequencing Matsutake mushroom genome Dec.97 Clinical studies of gene therapy using the RetroNectin® reagent by using whole-shotgun sequencing method. RetroNectin® method begins at Mar.05 A lecture series is donated to Mie University School of Medicine as Indiana University in the U.S. part of a collaborative venture with the School of Medicine to FY1999 Aug.98 Sale of DNA chip manufacturing promote the clinical development of T-cell receptor gene therapy instruments and analyzer begins. targeting refractory cancers. FY2000 Sep.99 Sale of DNA chip begins. DNA chip ti on-100 (TE-100) is launched. ra Holdings Inc., starts. Dec. 04 Takara Bio Inc. is listed on the Tokyo Stock Exchange Mothers market. FY2007 Sep. 06 The Group’s businesses are reorganized, and Takara Healthcare Inc. is established. FY2009 Apr. 08 The Takara Group’s Seventh Medium-Term Management Plan starts. > FY2007 >>>>>> FY2009 >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Health foods FY2006 Mar.06 Takara Shochu High Ball is launched. FY2008 Jan.08 Capital alliance formed with AMS Life Mar.06 Shochu JAPAN is launched. Science Co., Ltd. Mar.06 Beni Ikkoku and Kuro Ikkoku, both 100% Ikkomon (a 100% pure sweet potato shochus, are launched. pure sweet May.06 Wasanbon plum wine and plum wine made potato shochu), FY2007 with sweet potato
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