Morinaga Milk Industry : 2_Morinaga Milk Sustainability Data Book 2021

MORINAGA MILK Sustainability Data Book 2021

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[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Basic Approach System

KPIs

Contributing to Extending Healthy Longevity

Contributing to the Healthy Growth of Babies and Infants

Enhancing Public Health

Morinaga Milk's Nutritious and Functional Ingredients

Health and Nutrition

Basic Approach

We offer health and nutrition by developing and selling products that combine functionality and good taste to realize "Ever Brighter Smiles."

Morinaga Milk recognizes that its core business is the development and sale of products that contribute to health and nutrition for extending healthy longevity and the healthy development of infants.

Health and nutrition are closely tied to Morinaga Milk's commitment to contribute to people's happy lives filled with healthy "smiles." Over the years, Morinaga Milk has explored the benefits and possibilities with research into proprietary nutritious and functional ingredients such as bifidobacteria and lactoferrin, which began with in-house research on the role that breast milk plays in babies' health.

Morinaga Milk's various products, from infant and toddler milk to specialty milk as well as yogurt, foods for medical and elderly care, have helped to

improve health and bring smiles to people.

Looking ahead, the corporate goal is to contribute to the health of various people both in and outside of Japan. Morinaga Milk will continue to tackle challenges toward this end.

System

Morinaga Milk Sustainability Committee meetings, which are chaired by the president, are held twice a year for monitoring and reporting on the progress of KPIs. In addition, Morinaga Milk implements PDCA cycles, with the general managers of the relevant divisions responsible for "Priority Issue: Health and Nutrition" and the general managers of the relevant departments responsible for promoting KPIs.

Based on the recognition that health and nutrition represent our core business, company research institutes, Marketing Department, Sales Department, and Manufacturing Department work together as a team to promote our initiatives in health and nutrition.

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

KPIs

Direction of Activities	KPIs	Progress Details for KPIs
Contribute to the extension of	Launch of products incorporating nutritious functional	Launch of products that support self-management of health
healthy lifespans	ingredients	• Expansion of products for meeting protein needs: Increased protein content for the in
		PROTEIN protein drink and Greek Yogurt PARTHENO Plain (without sugar)
		• Expansion of foods with function claims, such as Bifidus Yogurt Improves Bowel Movement,
		which contains Bifidobacterium longum BB536 for improved bowel movement, and
		Maiasa Soukai Light, which contains lactulose to help increase bifidobacteria in the gut.
		(▶p. 28)
	Share information on nutritious and functional ingredients	Start of a full-fledged health seminar business with health support nutritionists, "Kenko
	that help to maintain health	Support Eiyoushi," that supports "happy healthfulness"
		• This Bifidobacteria Training Project promotes improvement of consumer health
		awareness and behavioral change by disseminating health information on
		bifidobacteria. (▶p. 29)
		15 research treatises/information on extending healthy life expectancy released at
		symposiums, exhibitions, etc. (▶p. 30)
		55 releases of recipes and other information
Contribute to the healthy	Provide Bifidobacterium breve M-16V; continue to provide	Providing Bifidobacterium Breve M-16V to Low Birth Weight Babies around the World
growth of babies and infants	to over 120 facilities in Japan and overseas	• Supplied over 150 facilities such as newborn intensive care units (NICUs) in Japan and
		overseas (▶p. 32)

MORINAGA MILK Sustainability Data Book 2021

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[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Basic Approach System

KPIs

Contributing to Extending Healthy Longevity

Contributing to the Healthy Growth of Babies and Infants

Enhancing Public Health

Morinaga Milk's Nutritious and Functional Ingredients

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Contributing to Extending Healthy Longevity

Morinaga Milk is pursuing product R&D under the theme of extending healthy longevity for an era when people will commonly live to the age of 100. The company will research and develop products using nutritious and functional ingredients and supply them to consumers so that people can have healthier and more active lives.

Bifidus Yogurt (Foods for Specified Health Uses)

Fifty years ago, Bifidobacterium longum BB536 was discovered from the large intestine of a baby.

Bifidus Yogurt includes not only lactobacillus but also Bifidobacterium longum BB536, which reaches the large intestine.

With low acidity that results in a mellow flavor, this yogurt supports everyday health.

Bifidus Yogurt Improves Bowel Movement (Foods with Function Claims)

A food with function claims containing 2 billion Bifidobacterium longum BB536. This strain of bifidobacteria has been reported to improve the environment in the large intestine, improving bowel movements for people who tend toward constipation.

Triple Yogurt (Foods with Function Claims)

This yogurt displays three functionalities in lowering and stabilizing blood pressure, blood sugar and triglyceride levels. Tripeptide MKP® lowers high systolic pressure, while the indigestible dextrin (dietary fiber) stabilizes the blood sugar and triglyceride levels after a meal.

Foods for Medical and Elderly Care

The Morinaga Milk Group carefully researches and develops foods for medical and elderly care in terms of taste, nutritional value, safety, and ease of eating, so that the elderly and people with illnesses can maintain their quality of life while experiencing the joy of food.

Using the opinions of medical and nursing care professionals, Clinico Co., Ltd. (a company within the Morinaga Milk Group) and Morinaga Milk's institute work together to develop and market foods for medical and elderly care. This includes liquid foods, nutritional supplement foods (drinks, jellies, etc.), probiotic foods, and thickening products.

MORINAGA MILK Sustainability Data Book 2021

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[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Basic Approach System

KPIs

Contributing to Extending Healthy Longevity

Contributing to the Healthy Growth of Babies and Infants

Enhancing Public Health

Morinaga Milk's Nutritious and Functional Ingredients

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Disseminating Information on Nutritious and Functional Ingredients, Our Research Findings, etc.

The Morinaga Milk Group disseminates information, including the results of our research on nutritious and functional ingredients, to our customers and various stakeholders such as suppliers.

Bifidobacteria Training Project

Started in June 2020, this project incorporates knowledge, food, exercise, and the mind together with the idea of Bifidobacteria into daily life, aiming to create an improved large intestinal environment by addressing both body and mind.

The program welcomed top-level athletes Yuto Nagatomo (professional soccer player) and Kaho Minagawa and Chisaki Ooiwa (rhythmic gymnasts) to help communicate support for the intestinal environment and general health through Bifidobacteria.

Morinaga Milk is also developing a program for female university students to expand the base for this program from the perspective of nurturing the next generation.

We will continue to support everyone's health by communicating proper knowledge about Bifidobacteria and intestinal flora to those with an interest in a healthy life, as well as offer useful information for a healthy mind and body.

A Seminar Business with Nutritionists to Support "Happy Healthfulness"

Morinaga Milk Group is building a foundation for a next-generation healthcare business with the theme of "healthy and happy lives for all generations." With this endeavor, the Group aims to provide products and services that address health issues from a longer-term perspective through the use of digital and e-commerce channels.

As part of this effort, in January 2021 we started a health seminar service with nutritionists, "Kenko Support Eiyoushi," in which specially trained nutritionists provide hints on how to live happily and healthfully each day. This seminar service provides companies promoting health management, local governments, and educational groups with health-related information on the intestinal flora, immunity, protein, etc.

In FY 2020, the program held seminars for about 8,000 participants at outside companies and health seminars for about 1,700 participants within the Morinaga Milk Group.

In the future, Morinaga Milk will continue to provide information cultivated from more than half a century of research on health through these easy-to- understand "happy healthfulness" seminars.

Receiving the Science Council of Japan Presidentʼs Award

MORINAGA MILK Sustainability Data Book 2021

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[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Basic Approach System

KPIs

Contributing to Extending Healthy Longevity

Contributing to the Healthy Growth of Babies and Infants

Enhancing Public Health

Morinaga Milk's Nutritious and Functional Ingredients

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Symposiums and Exhibitions

(In Japan)

In FY 2020, Morinaga Milk made 25 academic conference presentations and submitted 51 papers, even though many such conferences were cancelled or postponed due to the spread of COVID-19.

In February 2021, Morinaga Milk received the President's Award of the Third Japan Open Innovation Prize from the Science Council of Japan. This award

was received for our project on maternal and child health with the Hokkaido University COI in Iwamizawa City, which resulted in a reduction of low birth weight babies. This project is part of the government's Center of Innovation (COI) initiative, which aims to encourage innovative collaborations among academia, industry and government.

The Matsumoto Junior College Endowed Course, which began June 2019, is again promoting the following three initiatives this fiscal year.

1. In cooperation with Matsumoto City and MATSUMOTO JUNIOR COLLEGE, Morinaga Milk will proactively hold public lectures, etc. to raise health awareness among the general public.
2. Provide a learning program for MATSUMOTO JUNIOR COLLEGE students for understanding the effects of food in health promotion.
3. Collaboratively verify the effects of Morinaga Milk's proprietary ingredients on health promotion, establish reliable evidence, and communicate the results obtained in the process.

(Outside Japan)

Because of the COVID-19 global pandemic in 2020, all overseas symposiums and exhibitions were cancelled.

Faced with the need to drastically review our methods for disseminating information, Morinaga Milk worked with overseas partner companies to disseminate information via webinars and virtual exhibitions, as well as through SNS.

We exhibited online at Vitafoods Europe Virtual Expo in September 2020. This exhibition is the first and only dietary supplement-related virtual event in Europe, during which we shared information about our probiotic products in collaboration with MILEI, even though they were affected by COVID-19. At the

Nutra Ingredients-Asia Awards sponsored by Nutra Ingredients-Asia.com, we received the Infant and Child Nutrition Initiative of the Year award for the second consecutive year.

Through such activities, Morinaga Milk strives to expand awareness of human- derived bifidobacteria and lactic-acid bacilli, and their benefits.

Received the Infant and Child Nutrition Initiative

Award for the second consecutive year

Contributing to the Healthy Growth of Babies and Infants

Morinaga Milk began researching and developing infant and toddler milk in the 1920s with the commitment to contribute to the healthy growth and development of infants. Over the years, the company engaged in research of infant and toddler milk that combines lactoferrin, etc. with nutritional elements such as protein, fats, carbohydrates, vitamins, and minerals in order to provide products as close to mother's milk as possible.

In recent years, Morinaga Milk has developed its infant and toddler milk business mainly in Asia in order to contribute to the healthy growth and development of children not only in Japan, but also in other parts of the world.

Looking ahead, Morinaga Milk will continue its research and development on the nurturing and protective powers of breast milk.

MORINAGA MILK Sustainability Data Book 2021

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[ Contents ]

Approach to Disclosure of Information on Sustainability

Editorial Policy About Us Corporate Mission

Measures for and Effects of COVID-19 Sustainability at Morinaga Milk Seven Priority Issues

Health and Nutrition

Basic Approach System

KPIs

Contributing to Extending Healthy Longevity

Contributing to the Healthy Growth of Babies and Infants

Enhancing Public Health

Morinaga Milk's Nutritious and Functional Ingredients

Environment

Human Rights

Supply Chains

Nurturing the Next Generation

Human Resource Development

Corporate Governance

Policies, Philosophy and Principles

Third Party Assurance

The United Nations Global Compact Index

GRI Content Index

Contributions to Building Nutritional

Infrastructure in Asia

Emerging countries mainly in Southeast Asia are experiencing rapid population growth and urbanization. The more population concentrates in cities, the more important it is to build nutritional infrastructure to supply safe and high-quality foods. Playing an active role in solving this issue represents the social mission of Morinaga Milk as a food company.

Morinaga Milk considers the supply of infant and toddler milk as part of this nutritional infrastructure. The company manufactures infant and toddler milk at product bases in Japan and overseas, including Indonesia, and supplies products to markets in Indonesia, Pakistan, Malaysia, Vietnam, etc. Based on our Breast-Milk Substitutes (BMS) Marketing Policy, Morinaga Milk aims to create an environment in which children around the world can grow healthily.

REPORT	▶Please see the "Breast-Milk Substitutes (BMS) Marketing Policy" section (p. 94)
for details.

Overseas Launch of Infant and Toddler Milk

Afghanistan⃝

Pakistan ⃝

Myanmar ⃝	Vietnam
Malaysia ⃝	⃝	⃝The Philippines
	⃝Micronesia Region

Indonesia ⃝

Bolivia ⃝

Topics

Sale and Manufacture of Infant Powdered Milk Products at NutriCo Morinaga

Morinaga Milk has been exporting infant formula milk and other products to Pakistan for more than 40 years and selling them through a local distributor. In March 2017, a new joint venture with Morinaga Milk, ICI Pakistan Limited and Unibrands (Private) Limited was established to locally manufacture and sell these products. This joint venture, NutriCo Morinaga (Private) Limited, built a plant and began operating in November 2019. NutriCo Morinaga continues to import milk products as before, but also domestically

manufactures its own products for consumers in Pakistan. The company will provide safe, reliable and high-quality products to more consumers in Pakistan, contributing to their health.

NutriCo Morinaga