Yakult Honsha : Group Expands Decarbonization Initiatives in Japan and Abroad

Yakult Group Expands Decarbonization Initiatives in Japan and

Abroad

Yakult Honsha Co., Ltd. (President: Hiroshi Narita) today announced that it has switched the purchased electric power it uses at all domestic production plants in the Group to CO2- free electricity (electricity which does not emit CO2 in the generation process).

The Yakult Group has been switching to CO2-free electricity in steps since April 2022, through which it expects a 38,000-ton reduction in CO2 emissions annually, including the business entities (five business entities) and affiliates (one plant and four business entities) that are switching to CO2-free electricity in fiscal 2023.

The Group has also been actively introducing solar power generation equipment both in Japan and overseas since fiscal 2008. In fiscal 2023, it plans to introduce a total of about 3 MW of solar power at facilities, including Yakult Okayama Wake Plant Co., Ltd. (approx. 700 kW; approx. 300 kW already introduced by fiscal 2022) in Japan, and the head office and plant of Yakult (Malaysia) Sdn. Bhd. (approx. 700 kW), Yakult Vietnam Co., Ltd.'s plant (approx. 480 kW), and Tianjin Yakult Co., Ltd.'s plant (approx. 1,100 kW) outside Japan.

From the start of introduction of solar power in fiscal 2008 and including the planned introduction in fiscal 2023, the total solar power it has introduced reaches about 7 MW, which is expected to lead to a reduction of about 4,000 tons in CO2 emissions annually.

Toward the achievement of Environmental Vision 2050, the Yakult Group will further promote introduction of renewable energy and energy saving, and proactively contribute to global environment conservation based on its corporate slogan of "In order for people to be healthy, everything around them must also be healthy."

The Group companies that have switched to CO2-free electricity and those which have installed solar power generation equipment are as described below.

1. Group companies switching to CO2-free electricity (30 business entities in total) *1 [Shaded portionrepresents production plants (all production plants within Japan).]

[Underlined business entitiesare those switching in fiscal 2023]

(1) Yakult Honsha Co., Ltd. (14 in total: seven plants, seven business entities)

Fukushima Plant, Ibaraki Plant, Fuji Susono Plant, Hyogo Miki Plant, Saga Plant,

Shonan Cosmetics Plant, Fuji Susono Pharmaceutical Plant

Head Office, Hokkaido Branch, East Japan Branch*2, Metropolitan Branch*2, Central Japan Branch, Pharmaceuticals Sapporo Branch, Tokyo Logistics Center

(2) Plants at production subsidiaries (five in total: five plants)

Yakult Iwate Plant Co., Ltd., Yakult Chiba Plant Co., Ltd., Yakult Aichi Plant Co., Ltd., Yakult Okayama Wake Plant Co., Ltd., Yakult Fukuoka Plant Co., Ltd.

(3) Affiliates (eleven in total: five plants, six business entities)

Yakult Corporation Co., Ltd.*2, Yakult Management Service Co., Ltd.*2, Yakult Materials Co., Ltd.*2, Yakult Pharmaceutical Industry Co., Ltd.*2, Yakult Materials Co., Ltd.(Fuji Susono Plant),

Yakult Food Industry Co., Ltd.(head office and plant, Yokotake Plant),

Yakult Health Foods Co., Ltd.(head office, Oita Matama Plant), Hakodate Wine Co., Ltd.(plant)

2. Companies that have installed solar power generation equipment (23 business entities in total)*1

[Underlined business entitiesare those installing or expanding solar power generation equipment in fiscal 2023]

(1) Yakult Honsha Co., Ltd. (seven in total: six plants, one business entity)

Fukushima Plant, Ibaraki Plant, Fuji Susono Plant, Hyogo Miki Plant, Saga Plant, Fuji Susono Pharmaceutical Plant, Yakult Central Institute

(2) Marketing companies (total of two business entities)

Yakult Chiba Ken Sales Co., Ltd., Yakult Tokai Co., Ltd.

1. Plants at production subsidiaries (four in total: four plants) Yakult Iwate Plant Co., Ltd., Yakult Aichi Plant Co., Ltd.,
   Yakult Okayama Wake Plant Co., Ltd., Yakult Fukuoka Plant Co., Ltd.

1. Affiliates (ten in total: eight plants, two business entities)

1. Japan (three in total: two plants, one business entity)

Yakult Materials Co., Ltd. (Fuji Susono Plant), Yakult Food Industry Co., Ltd. (head office, plant)

1. Overseas (seven in total: six plants, one business entity) Yakult Danone India Pvt. Ltd. (Sonipat/Rai Plant)
   Hong Kong Yakult Co., Ltd. (Tai Po Plant), Wuxi Yakult Co., Ltd. (Wuxi Plant 1) Yakult (Malaysia) Sdn. Bhd. (head office, Malaysia Plant)
   Yakult Vietnam Co., Ltd. (Vietnam Plant), Tianjin Yakult Co., Ltd. (Tianjin Plant)

*1 Business entities denote the head office and consolidated subsidiaries.

*2 Located in Takeshiba Building, which also houses Yakult Honsha Co., Ltd. head office

"Yakult Group Environmental Vision" Overview

Yakult Honsha Co., Ltd. established the Environmental Vision 2050, setting out its ideal vision for 2050, with the aim of achieving net-zero greenhouse gas emissions (in Scopes 1, 2, and 3*1) for a value chain with zero environmental impact. In order to promote effective initiatives based on this vision, the company has used backcasting*2 to establish both Environmental Targets 2030 and Environmental Actions (2021-2024).

The Yakult Group sees society as not just consisting of people, but a complex web which exists between humans, water, soil, air, animals, and plants. It is only when every element of this web is healthy that people and society as a whole become healthy.

At a time when the global environment is at risk from global warming, environmental pollution, dwindling resources, and a loss of biodiversity, we will strive for business activities that do not impact the environment and pursue a society that unites "People and Planet as One," guided by the Yakult Group Environmental Vision.

• Yakult Group Environmental Vision

Please visit the special page of our website for detailed information on Environmental Vision. https://www.yakult.co.jp/english/csr/environment/vision/index.html

*1 Scopes 1, 2, and 3

Areas of greenhouse gas emissions monitoring

Greenhouse gas scopes (summary based on GHG Protocol)

Scope 1: Direct emissions resulting from fuel used in a company's own business activities

Scope 2: Indirect emissions linked to electricity, steam, and heat purchased from an external company

Scope 3: Indirect emissions occurring in the supply chain linked to a company's business activities

*2 Backcasting: A method of identifying actions to be taken now based on a desired future result