Sustainability Report2015 Contact information CSR and Risk Management Group Fuji Oil Holdings Inc. Daibiru Honkan Building, 3-6-32 Nakanoshima, Kita-ku, Osaka 530-0005 Phone: +81-6-6459-0703 Fax: +81-6-6459-0711 URL: http://www.fujioilholdings.com/en/contact.html This brochure uses eco-friendly soy ink and waterless offset printing. Photograph: Chocolate Fuji Oil Group has sought more delicious cacao beans and has pursued better manufacturing technologies over a long period of time. Using our oils and fats technology, we offer a wide and general range of chocolate products, such [ Sustainability Report 2015 ] as chocolate for breads and ice cream coating, molded chocolate, and other functional chocolate, as well as a variety of colored Editorial policy INDEX chocolate. The objectives of this report are to help stakeholders gain a better understanding of Fuji Oil Group’s efforts to contribute to realizing a sustainable society and to receive 02 Sustainability Report 2015 feedback from them in order to further improve our activities. 03 Summary of the Fuji Oil Group The brochure explains particularly important activities, and the web covers more comprehensive information in order to ensure accountability to a wide range of stakeholders. Interview with President & CEO ■ The Fuji Oil Group shifted to a holding company structure in October 2015. At the same 05 To Forge a Sustainable Future time, it reviewed its corporate philosophy to carry out its mission, “The Fuji Oil Group seeks to develop the potentional of food ingredients. We will contribute to the happiness and well-being of the people by offering delicious and healthy food.” New strategies of the Fuji Oil Group This report clarifies that the core of the company is “Sustainable Management” and 07 Sustainable management consists of the following parts: progress of the six priority themes set to realize our desired visions “How we should be in 2020” and “How we want to be in 2030”; Structure 08 Renaissance Fuji 2017 supporting sustainable management and Evaluation from outside of the company. 12 Shift to a holding company ■ The brochure narrows down the report’s focus to our basic concept of management structure and delegation of (strategy) and the six priority themes (practice) to provide a better understanding of our authority to each area concept of “Sustainable Management” and the summary of our activities. 13 Top Commitment of regional Reporting scope, etc. headquarters and regional ● Reporting scope representatives/ This report mainly covers the activities of the Fuji Oil Group. As for environmental data, List of business companies efforts by Fuji Oil Co., Ltd. (Japan) as well as those of the following group companies (production bases) in Japan are included: Toraku Foods Co., Ltd., Fuji Fresh Foods Co., Ltd., F&F Co., Ltd., and Omu Milk Products Co., Ltd. In cases where information on other Practicing Sustainable Management companies is provided, the scope is described along with the data. —Six Priority Themes— ● Reporting period The report mainly consists of the achievements of the Fuji Oil (Japan) and its group 15 Creation of foods (Health, companies in the fiscal year of 2014 (April 1, 2014 to March 31, 2015) and those of Nutrition, Food Resources) overseas group companies in the fiscal year of 2014 (January 1, 2014 to December 31, 2014), but includes some activities and efforts in the past and also recent ones. 19 Safety, security and quality of foods ● Month of issue 21 Sustainable procurement Issued in October 2015 25 Environment Next report to be issued in September 2016 29 Hitozukuri (Fostering People) ● Guidelines for reference The Japanese Ministry of the Environment’s Environmental Reporting Guidelines 2012 32 Risk Management The Global Reporting Initiative (GRI) Sustainability Reporting Guidelines 3.1 ● Representation of company name In this report, company names are represented as follows: Structure supporting sustainable Fuji Oil (Japan): Domestic offices in Japan management Fuji Oil Group/our Group: Domestic and overseas group companies including Fuji Oil (Japan) 33 Corporate governance/Compliance 35 Contributions to local communities Brochure version of report High Fuji Oil Group Materiality for 36 Third-party opinions 【Mission】 Information of major activities as to selected material issues of Fuji Oil Group Brochure version The Fuji Oil Group seeks to develop of report the potential of food ingredients. Web version of full report Sustainability Report 2015 Materiality for stakeholders High We will contribute to the happiness and well-being of Issued in October 2015 Web version of full report An overall picture of the Fuji Oil Group’s activities is provided in a comprehensive way. the people by offering delicious and healthy food. CSR Website http://www.fujioilholdings.com/en/approach/ The Fuji Oil Group has signed the United Nations Global Compact. 01 FUJI OIL GROUP Sustainability Report 2015 02 ［ Summary of the Fuji Oil Group ］ Company profile Major products Company name: Fuji Oil Holdings Inc. No. of employees: 4,367 (consolidated) (as of the end of March 2015) Whipping cream, Margarine, Fillings, etc. Soy protein Location of Head Office: 1 Sumiyoshi-cho, Izumisano-shi, Osaka Subsidiaries/Associated companies: Established: October 9, 1950 ● Whipping cream ● Soy protein isolate 25 consolidated subsidiaries, 4 associated ● Confectionery margarine ● Textured soy protein Capitalization: 13,208 million yen companies accounted for under the equity (as of the end of March 2015) method (as of the end of March 2015) ● Baking margarine ● Soluble soy polysaccharides ● Fillings ● Soy peptide President and CEO: Hiroshi Shimizu Textured soy protein ● Fresh cheese-flavored ingredients 〈FROMA MUREA〉 ● Soy ingredients 〈FUJINIK〉 and others ● Ripened cheese-flavored ingredients ● Soy protein food products ● Frozen pies and cookie dough Consolidated financial highlights ● Béchamel sauce base ● White sauce 〈BLIZZARD SUPER 〈Gâteau NEUE 22〉 2000LT〉 ■ Sales ■ Operating profits ■ Net profits Soybean peptide〈HINUTE〉 〈SOFT PETIT FROZEN TOFU〉 (100 million yen) Consolidated Non-consolidated (100 million yen) Consolidated Non-consolidated (100 million yen) Consolidated Non-consolidated 3,000 200 120 2,500 100 2,719 98 150 166 93 83 Chocolate Soy milk ingredients 2,530 152 2,366 80 83 82 2,000 2,322 142 141 80 2,227 130 ● ● Couverture chocolate Premium soy milk products 64 64 100 60 64 1,500 113 105 105 57 100 ● 86 Coating chocolate developed using the USS 1,483 1,426 1,413 40 1,000 1,344 1,359 50 ● Glazed chocolate manufacturing method 20 500 ● Ganache ● Soy milk ingredients 0 0 0 ● Molded chocolate 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 (FY) (FY) (FY) ● Chocolate for ice cream coating Confectionery ● Baked chocolate and baking Soy protein ■ Sales by business unit Ingredients for confectionery ■ Sales by global region ● Non-tempering chocolate ingredients and baking Soy protein products 46.9％ Japan 64.8％ Liquid tofu Cheese-like soy Europe and America milk cream 14.5 ¥127.6 billion ¥176.1 billion ％ 15.1％ 〈MAME-MAGE〉 ¥39.4 billion ¥41.1 billion Total Total ¥271.9 ¥271.9 Oils and fats Oils and fats 38.6％ billion Asia 20.1％ billion ¥104.8 billion ¥54.7 billion FLOR series 〈Pâte à glacer Sweet〉 〈DUOFLORE〉 Soy milk cream Low fat soy milk 〈KO-CREAM〉 〈BIMI-TONYU〉 Business areas and raw materials 〈GANACHE AMUSER〉 〈CHIP CHOCOLATE〉 Founded in 1950, the Fuji Oil Group started production later businesses: oils and fats, confectionery and bakery ingredients, than other oil manufacturers. Since then, we have developed and soy protein products. We are facing various social issues our operations, making use of the technology that we have through these businesses, and contributing to the happiness of Oils and fats Retail products acquired with the belief that we will never progress if we people through the creation of contemporary eating habits as ● Hard butters for chocolate Group company products and mail-order sales imitate others. There are many issues to resolve in the world, well as fine foods. ● Confectionery oils and fats ● Desserts such as global warming and other environmental issues, and ● Frying and spraying oils ● Soy protein food products food resource issues due to population growth. ● Fats for frozen confectionery ● Health foods Even in these circumstances, the wish for good ● Emulsified oils and fats health is common to all people in the world. ● Powdered oils and fats Based on technology for vegetable oils and fats ● Lubricating/releasing oils and soy protein, on which we have conducted Hard butter for chocolate COOK PAL research and development for over more MELANO SS SUPER TOUGH LONG 〈Kobe Pudding〉 〈 〉 〈Choshi Sardine Burgers〉 〈Alz Punch〉 than half a century, we are engaged in three Palm Coconut Cacao Soybean 03 FUJI OIL GROUP Sustainability Report 2015 04 TOP INTERVIEW Interview with President & CEO To Forge a Sustainable Future The ultimate goal is “Sustainable The world’s population is expected to reach 9.5 billion in 2050. area’s growth. The keywords for “Global Management” are Management”. It is a matter of time before animal protein runs short. In a “speed,” “cost,” and “localization.” Q What priority is given to “Sustainable situation where the earth’s resources are being exhausted, it is We also believe that the holding company has three roles. One Management” in the Fuji Oil Group? unlikelyt to happen only the Fuji Oil Group to enjoy prosperity. is to enforce governance for overall group management. The In the Midterm Management Plan, “Global The health of people is closely related with the health of the second is to determine the allocation of resources, “human Management,” “Technological Management,” and earth. resources, materials, and money,” as a strategic group. The “Sustainable Management” are considered as the We are engaged in the oils and fats business, confectionery and third is to develop global human resources. three pillars of the basic policy. However, these bakery ingredients business, and soy protein business.