Basic Philosophy

The Morinaga Milk Group's Corporate Philosophy is "Contribute to healthy and enjoyable lifestyles."
Our Corporate Slogan of "For Ever Brighter Smiles "incorporates our desire to make our customers smile through both deliciousness and health. Since our founding we have pursued unique value through advanced milk technology.
We aim to realize an enriched society that inspires smiles everywhere by contributing to the wellbeing of the customers through products and services that people use in their daily lives.
In order to achieve this, the Morinaga Milk Group has established a set of rules that we must follow in our marketing communications.
We will practice responsible marketing communications to promote our business activities and provide value to society to bring "Ever Brighter Smiles" to a wide range of customers, from babies to elders.

Basic Policy

The Morinaga Milk Group will apply this policy based on the ICC Framework for Responsible Food and Beverage Marketing Communications, an international standard for marketing communications in the beverage and food industries established by the International Chamber of Commerce (ICC), to all marketing communications in all its media forms for responsible marketing communications.
We will conduct our activities in a responsible manner, giving more consideration particularly to children, and will ensure the following.
In general, a "child" is defined as a person 12 years of age or younger. However, this definition differs from country to country depending on their laws, regulations, common understanding, etc.

1. We will provide customers with appropriate information on our products and services.
   We will avoid using expressions that excessively stir up consumption or are misleading.
   We will strive to present and express appropriate information so that customers can experience health and happiness.
2. We will comply will comply with the laws and regulations regarding business activities, products, and services of each country in which we operate, provide information based on scientific evidence, and strive to provide labeling and expressions that are easy for customers to understand.
3. We will show consideration for customers regardless of race, gender, age, religion, language, nationality, sexual orientation, gender identity, disability, or other differences, and will not use discriminatory or exclusive language in our communications in countries and regions where we operate.
4. We will comply with all laws, regulations, and appropriate quality standards related to the safety of our products and services in the countries and regions in which we operate.
   We aim to provide deliciousness and pleasure as well as health to our customers through our products and services, and pursue safety so that customers can enjoy them with peace of mind.
5. We will not undermine the credibility of our competitors by conveying false criticism to customers and business partners about their products and services.
6. We will respect Children's Rights and Business Principles developed by UNICEF, the UN Global Compact, and Save the Children Fund in the promotion of our business activities.
   Therefore, we will endeavor to avoid using inappropriate language to make excessive recommendations to children, incite purchases, or use expressions that cause children to plead with their guardians to make product purchases.
7. We will respect the guardians of children and endeavor not to interfere with their authority in our marketing communications to children.
   Furthermore, in communications related to infant formula and follow-up formula handled by the Morinaga Milk Group, we respect the WHO International Code of Marketing of Breast-milk Substitutes (BMS) (WHO Code) in line with our separately established Group Breast-Milk Substitutes (BMS) Marketing Policy, comply with applicable laws and regulations in the countries and regions where we conduct business, and strive to provide labeling, expressions, and communications all in an appropriate manner.
8. We will conduct thorough training for our directors and employees and distribute educational materials in order to continue practicing these measures.

Est. February 2023

In the marketing of infant formula and follow-up formula (hereinafter collectively referred to as "Products") handled by the Morinaga Milk Group, we respect the WHO International Code of Marketing of Breast-milk Substitutes (BMS) (hereinafter "WHO Code"), comply with applicable laws and regulations in the countries and regions where we conduct business, appropriately guide employees and distributors in accordance with this marketing policy (hereinafter "Policy"), and conduct activities in accordance with the Policy.

1. Basic Policy

1）Recognizing that breastfeeding provides the best and optimal source of nutrition and plays an important role in the growth and development of infants, and that breastfeeding not only builds infants' immune systems but also fosters a strong bond between mothers and infants, we support the recommendation by the WHO that breastfeeding be performed for the first six months after birth, followed thereafter by the introduction of safe and appropriate complementary foods.

2）Recognizing the importance of the WHO Code in providing safe and appropriate nutrition to infants, we strive for the protection and promotion of breastfeeding and engage in marketing activities grounded in appropriate information.

2. Applicable Scope of the Policy
   The Policy applies to all Group employees involved in the marketing and sales of the Products in all countries where our Group conducts business.
3. Guiding principles

1）We support policies, rules, and standards set by governments and by expert health and nutrition agencies on the basis of objective and consistent information and science.

2）We do not advertise or promote Products to the general public.

3）We do not engage in advertising or sales promotion of Products for infants between 0 to 12 months of age in higher risk countries^※1.

4）Where permitted by the laws of countries where we conduct business, we share our recognition of the Policy with third parties and engage in advertising and sales promotion activities in compliance with the laws and ordinances of the countries where we conduct business.

5）When providing Product-related information to healthcare practitioners, we limit information to objective and scientific information, and do not include information that indicates or implies that bottle-feeding with the Products is superior to or equivalent to breastfeeding.

6）In package labels for the Products, we provide all necessary information regarding the safe and proper use of the Products and take care not to discourage breastfeeding.

7) We use clear and conspicuous descriptions in package labels for the Products, and, using expressions that are easy to read and easy to understand, extol the superiority of breastfeeding and include labels concerning proper methods of formula preparation, warnings regarding health hazards caused by inappropriate preparation etc. In addition, we do not use photographs of babies on containers or in the package labels for the Products, and do not use pictures or expressions that idealize the use of the Products.

8）Recognizing that the quality of the Products is an indispensable factor in protecting the health of infants, we manufacture the Products in accordance with standards recognized in the countries and regions where we conduct business, following strict hygiene control and quality control procedures.

9）When selling or otherwise distributing the Products, we comply with applicable quality and hygiene standards and local laws and ordinances.

^※1A list of higher risk countries is indicated in Appendix A on the following website.
https://research.ftserussell.com/products/d
ownloads/F4G_BMS_Criteria.pdf

Est. March 2021

Basic Philosophy

As a food company that aims to contribute to healthy and enjoyable lifestyles through offering unique products derived from advanced milk technology, the Morinaga Milk Group contributes to social sustainability by providing safe and reliable products and services.

Basic Policy

1. We comply with laws, regulations, and standards to provide products and services that customers can trust.
2. We provide safe and reliable products and services by continuously improving quality in each process of the food supply chain (product development, material procurement, manufacturing, distribution, and sales).
3. We operate a food safety management system based on international standards to pursue better quality.
4. We listen sincerely to our customers to provide products and services that satisfy customers.
5. Each of us individually has a sense of responsibility toward quality, and strives to foster a culture of food safety and quality in order to contribute to the "health" and "happiness" of all people.

Est. September 2017
Rev. October 2022
Yohichi Ohnuki
President and Representative Director
Morinaga Milk Industry Co., Ltd.

Basic Philosophy

As a food company that aims to contribute to healthy and enjoyable lifestyles by offering unique products derived from advanced milk technology, the Morinaga Milk Group contributes to social sustainability through mitigation of and adaptation to climate change and other environmental issues.

Basic Policy

1. In engaging in activities, we set objectives for mitigation of and adaptation to climate change and other environmental issues throughout the total lifecycles of our activities, products, and services. By reviewing those goals on a regular basis, we continuously improve our environmental management system.
2. We properly manage compliance with environmental laws and regulations and our environmental commitments.
3. We assess and seek to reduce the impact of the environment on our business activities. We also perform and take action on environmental assessments to reduce the impact that the environment has on our business activities.
4. We address the following priority environmental management issues:

（1）We undertake measures to counter climate change, promote greenhouse gas emission controls, and contribute to the achievement of a carbon-free society.

（2）We engage in business activities with consideration of resource efficiency and energy efficiency, conservation of water resources, contribution to biodiversity, environmentally considerate product design, the 3Rs (Reduce, Reuse, Recycle), and proper disposal of waste to make effective use of limited resources.

（3）We promote the development of new technologies related to the environment and incorporate environment-friendly technologies into our product development.

（4）We disseminate accurate information on the environment and make efforts to improve our social credibility.

（5）We strive for coexistence with society and communities.

5. This policy is disseminated to all employees and released to the public outside the company.

Est. October 1993
Rev. March 2022
Yohichi Ohnuki
President and Representative Director
Morinaga Milk Industry Co., Ltd.

Basic Philosophy

Most of Morinaga Milk products' raw materials, including milk, come from nature’s rich bounty of agricultural products. With gratitude to nature for these gifts, we believe that protecting ecosystems is essential to our continued business. By understanding and working to reduce the impacts of our business on nature in order to conserve rapidly disappearing biodiversity, we will contribute to achieving a sustainable society.

Basic Policy

1. We conduct business activities in compliance with biodiversity-related rules around the world.
2. We promote sustainable raw material procurement with consideration of biodiversity.
3. We develop, utilize and disseminate technologies that contribute to the conservation and sustainable use of biodiversity.
4. We engage in activities with consideration of biodiversity, collaborating with communities and other stakeholders.
5. We promote understanding of biodiversity by means including environmental education for employees.

Est. March 2022

Basic Philosophy

As a food company that aims to contribute to healthy and enjoyable lifestyles through offering unique products derived from advanced milk technology, the Morinaga Milk Group delivers high-quality, delicious, safe, and reliable products to customers, and sources materials in compliance with laws and social standards while also considering human rights, environment, and other social responsibilities in cooperation with its business partners.
In doing so, we have established this Policy to improve the animal welfare of dairy cattle, which produce our main raw material of milk, at production sites in Japan.

Basic Policy

1. Approach to Dairy Cattle Care, Keeping, and Management
   In considering the care, keeping, and management of dairy cattle, we support the Five Freedoms* in the Terrestrial Animal Health Code of the World Organisation for Animal Health (WOAH) as well as Technical Guideline for Care, Keeping, and Management of Dairy Cattle and Technical Guideline for Transport of Livestock of the Ministry of Agriculture, Forestry and Fisheries of Japan as basic policies.

(*) Five Freedoms:

1. Freedom from hunger, malnutrition and thirst

2. Freedom from fear and distress

3. Freedom from heat stress or physical discomfort

4. Freedom from pain, injury and disease

5. Freedom to express normal patterns of behavior

（1）Dairy Cattle Care, Keeping, and Management
We support the care, keeping, and management methods that consider the health and comfort of dairy cattle, such as appropriate and high quality feed and supply of water according to level of growth and lactation; treatment with care to avoid stressing dairy cattle; appropriate ventilation; maintaining comfortable temperature; disease prevention measures and appropriate measures by veterinarians, etc.; daily cleaning and disinfection to maintain cleanliness of cattle sheds; and care and keeping method that follow guidelines.

（2）Dehorning
We recognize that dehorning and other measures are important in reducing the aggression of dairy cattle and ensuring safety of handlers, but in doing so, use of anesthesia, analgesia, and other means by a veterinarian to eliminate pain and preventing excessive stress on dairy cattle is preferred.
We also recommend performing dehorning at an early age when horns are still underdeveloped and said to cause less stress.
We believe it is important to carefully observe the dairy cattle after dehorning and to conduct timely treatment when necessary.

（3）Tail docking
We support the policy of not conducting tail docking, as doing so will hinder dairy cattle's ability to drive away pests and cause stress, negatively impacting the health and welfare of dairy cattle.

（4）Calving and new born calves
Calving without any issues is the most important aspect for dairy cattle. As such, we believe it is preferable to take special consideration to provide a comfortable calving environment which clean and dry floors as well as appropriate bedding to prevent slipping.
In regards to new born calves, we believe quickly providing colostrum, which is essential for healthy growth, and consideration for bedding and supplemental heating to prevent cold stress when external temperature is low are preferable.

（5）Transport
Transporting dairy cattle causes stress, so in addition to ensuring their health and safety, it is also necessary to consider comfort during transport. When transporting, it is important to assign a livestock handling manager; formulate an appropriate transport plan; provide appropriate rest, feed, and water; ensure appropriate handling when loading and unloading; take consideration toward fatigue from transport; and take special consideration toward dairy cattle in late pregnancy, the young, the old; and all parties involved in the transport to observe and take record to work in cooperation.

2. Support by Morinaga Milk Group
   With the motto of safe and reliable milk and dairy products come from health dairy cattle, we coordinate with dairy farmers, dairy milk industry organization, and government agencies to share information and support initiatives that consider animal welfare and propose care, keeping, and management methods to support the implementation of care, keeping, and management methods that ensure the health of dairy cattle and sound management of dairy farmers.

Est. September 2023

To deliver high-quality, delicious, safe, and reliable products to the customers, the Morinaga Milk Group procures materials in compliance with the laws and social standards while also considering human rights, environment, and other social responsibilities in cooperation with its business partners. We also engage in fair, just, and transparent relationship with all our business partners.

1. We comply with laws and social norms and strive for fair transactions focused on considerations for human rights, the environment, biodiversity, occupational health and safety, etc.
2. To improve the quality and value of the products the Morinaga Milk Group offers to the customers, we place emphasis on cooperative relationships with our business partners in the areas of raw material quality, safety, technological capability, price, and delivery date.
3. In conducting procurement activities, we provide fair, equitable and transparent opportunities to all of our business partners and implement transactions accordingly.
   "Procurement" in this policy covers not only the procurement of raw materials and packaging materials used for products, but also various transactions involved in the procurement of management resources such as facilities and equipment, and the various services to maintain and manage the same.

＜To Our Business Partners＞

1. We hope that our business partners understand the concepts of the Morinaga Milk Group Procurement Policy and support it as members of the supply chain.
2. Considering the importance of social responsibility, compliance, and corporate ethics, we hope our business partners also consider 1) compliance with laws and social standards, 2) environment, and 3) human rights and occupational health and safety.
3. We would like our business partners to promise the following in raw material procurement to improve the quality and value of Morinaga Milk Group's products.

① To comply with relevant laws and ensure that the raw materials comply with the Quality Policy.

② To continue improving technical capabilities and offer proposals based on them to enable our new products to meet the needs of the customers.

③ To offer competitive prices and engage in continued rationalization.

④ To build a stable and flexible supply system for raw materials to ensure that products can be delivered to the customers continuously and in timely manner.

⑤ To cooperate with each other in business continuity during unexpected disasters through exchanging and sharing information about the supply chain as well as engaging in risk management activities in time of peace.

Est. September 2017

In order to remain a company that contributes to achieving a sustainable society, Morinaga Industry has formulated a Procurement Policy.

We ask that our suppliers understand the purpose of the Procurement Policy along with the purpose and content of these guidelines, and collaborate and act accordingly as partner members of the supply chain. In formulating these guidelines, we upheld and incorporated the thinking of the United Nations Global Compact's Ten Principles on human rights, labor, the environment, and anti-corruption.

1. Compliance with laws and social norms
   We will make ongoing efforts to develop and construct a highly effective governance system to achieve sustainable growth and enhancement of our enterprise value.
   • Compliance with international rules and with the laws, ethics, and social norms of countries
   • Elimination of any relationships with antisocial influences
   • Respect for intellectual property rights
   • Prohibition of improper provision or receipt of benefits in our relationships with stakeholders
   • Maintenance of sound and normal relationships with politics and governments, along with prohibition of corruption, bribery, etc.
   • Prevention and early detection of misconduct
   • Appropriate management and protection of confidential and personal information, and compliance with relevant laws and regulations
2. Human rights and the working environment
   We respect diversity, engage in business activities with consideration for human rights, and advance the creation of environments where all people can fully display their capabilities.
   • Emphasis on and respect for international standards and approaches regarding human rights
   • Elimination of forced labor, child labor, and all forms of discrimination
   • Assurance of health and workplace safety for employees
   • Management of appropriate working hours and payment of adequate wages
   • Respect for employees' right to organize
   • Establishment of emergency response systems that envision potential disasters and accidents, and dissemination of information on systems
3. Contribution to society and reduction of environmental burdens
   We manufacture safe and reliable products while striving to reduce energy use and cut waste, and help to create a sustainable society.
   • Promotion of initiatives for food loss reduction, waste reduction, and the use of sustainable organisms, water, forests, agricultural resources and energy, along with sustainable use of all resources
   • Practice of corporate activities with consideration of reduction of environmental load, prevention of deforestation, prevention of global warming, and other impacts on the global environment, and promotion of environmental conservation initiatives
   • Confirmation of traceability to producing areas in raw material procurement, assessment of the state of biodiversity and ecosystem conservation in producing areas, and efforts toward necessary improvements
   • Development of environmentally considerate products and services, and promotion of selection and procurement of these
   • Efforts toward reduction and reuse of resources, and reduction of burdens on the environment
   • Prevention of economic activities that could lead to environmental pollution and health damage
   • Thorough compliance with environmental laws and regulations
   • Respect for regional culture, fulfillment of roles as a member of the community, and contribution to the growth and development of society
4. Assurance of the safety and quality of products and services
   We enforce quality control and work toward the improvement of safety and quality and the provision of stable supply of products, so that our products and services meet safety standards set by countries' laws and regulations.
   • Enforcement of quality control, assurance of safety, and promotion of quality improvement in products, so as to fulfill the Quality Policy and safety standards set by countries' laws and regulations concerning management and safety assurance for raw materials, products, and services
   • Taking of action with customers' safety as the highest priority when an incident or the potential thereof comes to light, followed by prompt investigation of causes and facts and by accurate reporting
   • Development and establishment of business continuity plans (BCP) in order to promptly restore operations in the event of an unforeseen situations and achieve stable supply of products
   • Fair and appropriate disclosure of information to ensure safety
5. Fair and impartial purchasing
   We comprehensively judge the quality, price, reliability, track record, etc. of products and services to engage in fair and impartial purchasing.
   • Assurance of fair and free competition
   • Prohibition of influence peddling
   • Prohibition of gifts and entertainment that could be viewed as inappropriate by third parties

Est. March 2022

1. Purpose

Morinaga Milk Group will engage in sustainable procurement of raw material milk that consider animal welfare, human rights, the environment, and various social responsibilities with suppliers under the Morinaga Milk Group Procurement Policy.

2. Scope

Raw milk produced in Japan

3. Guiding Principles
• We will comply with laws and regulations related to raw material milk trade and conduct proper procedures to procure raw material milk.
• Following the Morinaga Milk Group Dairy Animal Welfare Policy, we will provide support and information necessary for creating an environment for healthy and safe care, keeping, and management of dairy cattle as well as propose care, keeping, and management methods.
• We will coordinate with supporting organizations to aid in activities that contribute to the sustainable production of raw material milk, such as improving the quality of raw material milk, improving the management efficiency of dairy farmers, consideration of occupational health, and initiatives to reduce environmental burden.

We will notify our suppliers of these guidelines and respond appropriately if there are any issues.
We report our initiatives related to sustainable procurement of raw material milk on our website and other means.

Est. September 2023

1. Purpose

Morinaga Milk Group supports the NDPE Policy (*1) and will engage in sustainable procurement of palm oil with our suppliers under the Morinaga Milk Group Procurement Policy.

2. Scope

Palm oil and palm kernel oil included in the oils and fats used as raw materials in Morinaga Milk Group plants

3. Guiding Principles
• Morinaga Milk Group will respect the RSPO Principles and Criteria (*2) formulated by the RSPO.
• The definition of sustainable palm oil includes the following items:

－ Respects the laws and regulations of countries and regions that palm oil is produced in

－ Quality and safety of palm oil are ensured by the supplier and also verified by us

－ No forced labor or child labor is used

－ An environment that respects the rights of workers and offers safe working environment

－ Does not exploit forests that have high conservation value or peatlands with high carbon stock

－ Prescribed burns are not performed for the purpose of development or reforestation

We will notify our suppliers of these guidelines and respond appropriately if there are any issues.
We report our initiatives related to sustainable procurement of palm oil on our website and other means every year.

*1: NDPE Policy
No Deforestation, no Peat, no Exploitation

*2: Principles & Criteria
Principles & Criteria 2018

Est. September 2023

The Morinaga Milk Group respects and supports human rights as basic rights for all people, as we aim to “contribute to healthy and enjoyable lifestyles through offering unique products derived from advanced milk technology.” Through the practice of our Corporate Slogan “For Ever Brighter Smiles,” we work to create responsible supply chains both inside and outside our Group as part of contributing to the realization of a sustainable society.
To fulfill our responsibility to respect the human rights of all people affected by our business activities, the Morinaga Milk Group hereby establishes Human Rights Policy (hereinafter “the Policy”), based on the UN Guiding Principles on Business and Human Rights adopted by the United Nations Human Rights Council in June 2011.

1. Basic Principles

We support and respect international codes of conduct and standards concerning human rights, including the following:

• International Bill of Human Rights (the Universal Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights, and the International Covenant on Civil and Political Rights)
• ILO Declaration on Fundamental Principles and Rights at Work and conventions concerning wages, working hours, and other human rights of workers
• OECD Guidelines for Multinational Enterprises
• United Nations Declaration on the Rights of Indigenous Peoples
• United Nations Convention on the Rights of the Child

We also support and respect the Ten Principles of the UN Global Compact as a signatory company.
The Policy is the paramount policy on human rights which we strive to fulfill our responsibility of respecting human rights toward our stakeholders. The Policy marks our commitment to engage in respect for human rights in accordance with our Corporate Mission (our Corporate Slogan and Corporate Philosophy) and related internal policies and rules.

2. Scope of Application

The Policy applies to all officers and employees of the Morinaga Milk Group. We also expect all business partners involved with the operations, products, and services of the Morinaga Milk Group to understand and comply with the Policy.

3. Our Responsibility to Respect Human Rights

We recognize that our business activities may directly or indirectly, have adverse impacts on human rights. We will not infringe the human rights of any individuals affected by our business activities. In the event that our business activities have been found to have caused or contributed to adverse impacts on human rights, we will take appropriate corrective actions to fulfill our responsibility to respect human rights.
We do not intend any of our products or services to be used in a way that contributes to abuses of human rights. We also demand our business partners and other parties to respect human rights and not to abuse them. When there is suspicion that our operations, products, or services of the Morinaga Milk Group are involved in adverse effects on human rights, we strive to resolve them as necessary.

4. Human Rights Due Diligence

In line with the UN Guiding Principles on Business and Human Rights, we will establish human rights due diligence system to identify, prevent, and mitigate any adverse human rights impacts that we may have on our stakeholders.

5. Dialogue and Consultation

In the course of implementation of the Policy, we will seek advice from independent external sources with expertise and knowledge of human rights. We will engage in sincere dialogue and consultation with stakeholders, including those in the most vulnerable positions.

6. Education and Training

To ensure that the Policy is incorporated into all our business activities and is executed effectively, we will conduct appropriate education and training for officers and employees and, as necessary, for our business partners.

7. Remedy

We will work to remedy the situation through dialogue and appropriate procedures based on international codes of conduct, in case our business activities have been found to have caused adverse impacts on human rights, or our involvement through business partners is detected or suspected.

8. Person in Charge

The director in charge of human resources at Morinaga Milk Industry Co., Ltd. will supervise implementation of the Policy as the responsible manager.

9. Information Disclosure

We will disclose the progress and the results of our efforts toward respect for human rights on our website and through other media.

10. Applicable Laws and Regulations

We will comply with laws and regulations of the countries and regions in which we operate. When contradictions exist between international human rights standards and national laws and regulations, we will seek means to respect internationally recognized human rights principles to the utmost.

The Policy was approved by the Board of Directors of Morinaga Milk Industry Co., Ltd. on December 15, 2022.

December 15, 2022

President and Representative Director
Morinaga Milk Industry Co., Ltd.

Est. November 2018
Rev. December 2022

[Human Rights Policy Attachment]

Human rights issues that the Morinaga Milk Group addresses based on the Human Rights Policy include the following:

• Elimination of discrimination and harassment

We respect the basic human rights of individuals and eliminate all forms of discrimination and harassment based on race, nationality, ethnicity, creed, place of birth, political views, skin color, language, religion, ideology, gender, age, disabilities, gender identity, sexual orientation, assets, type of employment, etc.

• Protection of personal information and privacy
• Prohibition of forced labor and abolition of child labor in all corporate activities
• Consideration of occupational health and safety

We will create workplace environments where employees are protected from occupational health and safety risks, allowing them to work with peace of mind in a physically and mentally healthy state.

• Guarantee of minimum wages and management of appropriate working hours
• Respect for workers' freedom of association and the right to collective bargaining
• Diversity and inclusion

We will strive to achieve a motivating and vibrant corporate culture and organizational climate in which all diverse individuals respect the ideas and positions of each other and are able to exert their full potential through challenges and growth.

December 15, 2022

Basic Philosophy

The Morinaga Milk Group recognizes that health and safety are the foundation of the company and its management. We also recognized that ensuring safety in cooperation with the employees is the most important responsibility of the management and engages in activities to ensure safe and comfortable workplace for the employees.

Basic Policy

1. All employees work on safety and health activities and act to realize "safety first" practices and “zero accidents” at the workplace.
2. We promote the creation of a corporate culture and environment where "everyone always follows prescribed rules," and comply with the Industrial Safety and Health Act, related laws, and internal regulations.
3. We promote the creation of a work environment that is both physically and mentally comfortable and cooperate with industrial physicians to conduct periodic health examinations and health guidance to improve our employees' health.
4. We, especially our manufacturing department, work on the following safety and health activities:

① Implementation of measures to eliminate and reduce potential hazards and harmful effects through risk assessment

② Preparation of work standards for regular and irregular works, dissemination of those standards to employees, and compliance with the rules

③ Prevention of the recurrence of occupational accidents through information sharing and the promotion of activities to prevent similar disasters
In particular, the implementation of measures based on past disaster lessons to completely prevent the recurrence of accidents such as "pinched and rolled," "falling," and "burn injury" types

④ Implementation of safety and health education and training to improve safety knowledge and safety awareness

⑤ Promotion of the “Keep safe!” activities by all employees

5. This Basic Policy is made known to all employees and also announced outside the company.

Est. April 2017
Yohichi Ohnuki
President and Representative Director
Morinaga Milk Industry Co., Ltd.

Basic Philosophy

Engaging in business on a foundation of understanding from communities around us, Morinaga Milk Group engages in unique activities at business sites across Japan, providing learning opportunities to promote health and support the growth of the next generation through active dialogues with residents of communities. By doing so, we help to create communities full of brighter smiles.

Basic Policy

1. We minimize the environmental risks associated with our business while protecting local environments through environmental conservation activities.
2. We work to resolve social issues related to Food and Wellness and contribute to the sustainable development of communities.
3. We support the healthy growth of children by providing learning opportunities and experiences.
4. We engage in communication with people in communities and work toward mutual respect and coexistence.

Est. March 2022

As a food company that aims to contribute to healthy and enjoyable lifestyles through offering unique products derived from advanced milk technology, the Morinaga Milk Group engages in activities with ethics and integrity and strives to prevent corruption.

1. Compliance with Anti-corruption Laws and Regulations
   In order to prevent corruption, we will comply with all applicable anticorruption laws and regulations in countries and regions in which the Group operates, in accordance with our Guiding Principles and ethical standards.
2. Prohibition of Bribery, etc.
   We will not provide, offer, or promise bribes to civil servants (including foreign civil servants) or parties corresponding to civil servants (hereinafter collectively "civil servants, etc."), whether directly and indirectly, domestically or internationally. We will maintain fair and transparent relationships with business partners, civil servants, etc., and will comply with laws, regulations, guidelines, norms, internal regulations, sound business practices, etc. regarding the prevention of bribery and corruption. We will also prohibit the giving or receiving of improper money, gifts, entertainment, or other gains that deviate from social standards.
3. Handling of Audits and Investigations
   We will fully cooperate with audits by external auditors and internal auditing departments and with investigations by relevant authorities of each country and region, and will bear accountability for compliance with this policy.
4. Improvement of Relevant Structures
   In order to ensure the prevention and early detection of corruption, we will improve our internal whistleblowing system based structures for accepting whistleblowing reports and consultations from all employees (including officers) regarding acts that violate or may violate this policy. We will properly operate the internal whistleblowing system to ensure that whistleblowers are not subject to unfair treatment and that confidential information concerning whistleblowers is not leaked.
5. Education and Training for the Prevention of Corruption
   We will strive to prevent corruption by making this policy known to all employees (including officers) through education and training, and by enlightening all employees concerning the prohibition of bribery. We will also ask that our business partners and other relevant parties understand and cooperate with these efforts.
6. Disciplinary Measures, etc.
   We will strictly discipline employees (including officers) who have violated anticorruption laws and regulations or internal regulations regarding prevention of corruption (including this policy), in accordance with personal legal liability and with internal work regulations and other rules.

Est. October 2020

Morinaga Milk Industry Co., Ltd. and its Group companies (hereinafter "Morinaga Milk Group") hereby establish this policy for the purposes of complying with tax laws and regulations in the countries and regions where we conduct business, and of minimizing tax risks and optimizing tax costs while properly paying taxes.

1. Observance of Tax Laws and Regulations, and Maintenance/Improvement of Tax Compliance Awareness We comply with tax laws and regulations in the countries and regions where we conduct business, as well as with other international agreements including the OECD Guidelines, and work to maintain and improve tax compliance awareness.
2. Minimization of Tax Risks
   We seek to minimize potential tax risks by deepening our understanding of tax laws and regulations in the countries and regions where we conduct business, and by adapting appropriately to changes in the applicable tax systems and tax administration. When conducting transactions for which the interpretation of taxation is unclear, we will seek expert advice as necessary, evaluate the validity of tax treatment and the magnitude of risks, and strive to make appropriate decisions.
3. Fulfillment of Proper Tax Payment Obligations and Optimization of Tax Costs
   In order to fulfill our tax payment obligations in an appropriate manner, we will not engage in artificial tax avoidance or excessive tax saving separated from the aims or circumstances of our business. At the same time, we will strive to optimize tax costs through the application of available tax incentives, within the scope of the normal conduct of business.
4. Transfer Pricing
   We take into consideration prices between independent companies in our transactions with parties overseas, and strive for appropriate profit distribution in line with the functions and the contributions of individual countries and companies.
5. Relationships with Tax Authorities
   We cooperate with tax audits and tax collection procedures in al l applicable countries, and strive to establish sound and healthy relationships with tax authorities through constructive dialogs.

Est. September 2021

1. Philosophy

（1）Corporate slogan
“For Ever Brighter Smiles”

（2）Corporate philosophy
Contribute to healthy and enjoyable lifestyles through offering unique products derived from advanced milk technology.

2. Guiding Principles

（1）Our Eight Questions:

①Do we share our passion with our customers?

②Do we feel and express gratitude to all stakeholders?

③Do we have confidence in our quality?

④Do we always pursue safety and reliability?

⑤Do we continue to challenge ourselves?

⑥Do we contribute to building "Team Morinaga"?

⑦Do we engage in and enjoy what we do?

⑧ Do we exchange our visions and progress toward them?

3. Initiative Policy

（1）Management commitment

We publish and share the following messages from management on our website and in the Sustainability Report and the Integrated Report.

① We will continue to provide products that meet customer needs and offer products and services of value that provide customers with satisfaction and empathy.

② In accordance with ISO 10002, we have established our "Basic Policy on Customer Satisfaction" ^（※1） and "Guiding Principles" ^（※2） and will actively work to continuously improve customer service.

（※1）

We value communication with customers in response to their comments, including complaints, requests, and inquiries, and strive to deliver "reliability" and "happiness." We think and act with the customer as our starting point, and aim to be a company that is trusted more.

（※2）

1. We take the views of customers seriously and strive to respond equitably and fairly acting with integrity and speed.

2. We share the valuable opinions of customers internally to utilize these opinions for making products and services.

3. We strive to actively provide customers with appropriate and easy-to-understand information.

4. We respect the rights of customers and comply with relevant laws, regulations and norms for employee conduct.

（2）Sustainability management promotion

① We will promote sustainability management based on the Sustainability Vision (“The Morinaga Milk Group contributes to a prosperous "every day, society, and environment" by delivering "deliciousness and health," to continue creating brighter smiles for all.”).

② We will contribute to the health of our customers by delivering high quality value that is unique to our group.

③ We will contribute to a sustainable global environment in order to perpetually develop together with supply chain partners.

④ We respect the human rights and diversity of all of our stakeholders, and will contribute to the creation of a sustainable society.

（3）Positive action by employees (fostering corporate culture and employee awareness)

① We will provide training to ensure that all employees think and act with the customer as the starting point and continue to work on activities with an even stronger customer starting point.

② We will encourage the acquisition of specialist qualifications related to consumer affairs, such as consumer advisor.

（4）Seamless collaboration of relevant internal departments

① We will build a system for the acquisition of customer opinions and promptly share them companywide.

② We will analyze customer opinions and share them more deeply internally through opportunities such as liaison meetings.

③ We will build mechanisms for promptly contacting the management team and relevant departments when product accidents occur or signs that predict such occurrence are found. We will also create internal emergency troubleshooting standards and follow them when solving problems.

（5）Enhancing provision of information to consumers and bilateral exchange of information

① We will post information related to safety, reliability and the environment on our website to assist choices and use by customers.

② We will provide customers with product information through various means including easy-to-understand labeling on packaging and on our website so that our products can be used in a safe and reliable manner.

（6）Improvement and development based on consumer and social demands

① We will regularly update the case studies on our website about utilization of customer opinions and requests in the improvement of products and services.

② Specifically, we will innovate to make product container materials, shape, and labeling easy to open, easy to carry, and easy to see.

③ We will develop products to meet the increasing need for health and nutrition for infants through to the elderly.

④ We will strive to develop and improve containers and packaging with a focus on consideration for the 3Rs (reduce, reuse, recycle), safety, and ease of use from the product planning and development stage.

January 2017
Yohichi Ohnuki
President and Representative Director
Morinaga Milk Industry Co., Ltd.

The Morinaga Milk Group calls attention to specific action criteria for all officers and all employees to engage in compliance on a daily basis using the "Five Action Check Points" and "Our Courage." These codes of conduct have been compiled on a portable compliance card that all employees carry and use during the course of their daily work to think about their own actions. The goal is to have each and every employee fully understand and put into practice these codes of conduct so that the Morinaga Milk Group can be trusted by society.

Five Action Check Points

Ask yourself, will your action...

1. Violate laws or regulations?
2. Subject the company to social criticism?
3. Embarrass your family, friends or acquaintances if they find out?
4. Damage the trust and brand of the entire Morinaga Milk Group?
5. Go against your own good conscience?

Our Courage

1. Courage to refuse a supervisor's orders
2. Courage not to cover up
3. Courage not to turn a blind eye

Est. October 2002
Rev. June 2004

Management and employees will:

• Respect the diversity of employees and work to create a workplace in which all employees can maximize their potential.
• Support employee “smiles” and “vibrancy” both at and away from work.
• Continue to express Morinaga Milk’s characteristic values to society through our employees’ smiles and vibrant work ethic.