2-4-1 Ebisu-minami, Shibuya-ku, Tokyo, Japan 150-0022TEL: +81-3-5721-3111 Global website: http://www.calpis.net/

’カルピス’ , ‘CALPIS’ , ‘カラダにピース’ , ‘ピースボトル’ , ‘カルピスウォーター’ , ‘カルピス オアシス’ , ‘カルピス酸乳’ , ‘アミール S’ , ‘CALPIS SODA’ ,‘カルピスソーダ’ , ‘健茶王’ , ‘CALPICO’ , ‘CALPICO SODA’ , ‘カルスポリン’ , ‘ファインラクト’ , ‘毎朝野菜’ , ‘アレルケア’ , ‘健彩生活’ , ‘可爾必思’ ,‘可尓必思’ , ‘初恋の味’ , ‘水玉模様’ , ‘THE PREMIUM CALPIS’ , ‘しなやかケア’ , ‘ビオマイン’ , ‘インターバランス L-92’ , ‘年齢ペプチド’ , ‘サーベリックス’are registered trademarks of Calpis Co., Ltd. ‘LTP ’ , ‘L-92乳酸菌’ , ‘守る働く乳酸菌’ are trademarks of Calpis Co., Ltd.

10-P-1406-030

Corporate Prof ile2014-2015

English

Printed in Japan

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Since its birth as many as 95 years ago, the cultured milk drink CALPIS® has been loved for genera-tions by the people of Japan, and its popularity only continues to grow. Originally conceived of as a concentrated beverage, the CALPIS® brand has now expanded to over 20 items, and has also estab-lished a presence in the restaurant and processed foods markets. We have earned the strong support of our customers by being a safe, reliable and exhilarating brand.

When our founder, Kaiun Mishima, discovered the nomadic people of Inner Mongolia drinking “cultured milk” (fresh milk fermented using lactobacilli), he was deeply impressed by the beverage. The combination of fresh milk and lactobacilli was key to the drink’s delicious flavor and healthy qualities. After many trials and with much hard work, Mishima succeeded in creating his own cul-tured milk, and so CALPIS® was born. His motivation in creating the beverage was simple: the sincere wish to better lives by creating something both delicious and healthy. That same desire, expressed in our company slogan, “Karada ni Peace Calpis,” remains the driving principle for Calpis Co. employees to this very day.

The lactobacilli and fermentation technologies used at Calpis Co. have been developed over many long years of research, and can be traced back to the company’s founding. These technologies are used to create new value in a variety of fields, from our uniquely delicious beverages to our health supplements and animal feed probiotics. At Calpis Co. we strive to remain the same safe and reliable brand which has earned our customers’ trust for so many years. As we move forward, from genera-tion to generation, and across national boundaries, one mission remains the same: to promote the undeniable flavor and healthy values of CALPIS®.

“Karada ni Peace Calpis,” throughout the World

Fujio YamadaPresident and Representative Director

Corporate Philosophy

A Deepening Contribution to Society throughProducts and Technologies that Promote

Healthy Bodies and Minds.

“Karada ni Peace Calpis” is a message expressing our corporate philosophy in a simple and

direct manner. It expresses our desire to be a company that creates new values, in terms of

both physical health for the body (Karada) and emotional health for the mind (Peace).

With this slogan, we strive to uphold and offer the value of health.

ContentsCorporate Philosophy/“Karada ni Peace Calpis”/Contents .... 2

Message from the President ............................................................. 3

The CALPIS® Story ............................................................................. 4

Topics 1 The CALPIS® Brand:

Bringing Fresh Value to the World ................................................. 6

Topics 2 Researching CALPIS® ........................................................ 8

A Look at Calpis Co.’s

Top Beverage Brands ...............10

Professional-Use Products .....12

Functional Foods ........................14

Animal Feed Probiotics ...........16

International Beverages ...........18

Research and Development ............... 20

Initiatives on Safety and Reliability .... 22

Communication Endeavors ................. 24

Company Profile/ Executives .............. 26

Locations ................................................... 27

Corporate Slogan:“Karada ni Peace Calpis”

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The CALPIS® Story

Story

1 CALPIS® was developed as a health drink

In 1904, Kaiun Mishima, the founder of our company, visited Inner Mongolia on business. There he found people drinking cultured milk, a drink made from milk fermented with lactobacilli. The drink helped the people of Mongolia to main-tain their health, especially for those living in harsh natural environments. Kaiun was surprised by the drink’s good flavor and healthful proper ties. His digestion, which had been weakened by the long journey to Inner Mongolia, was fully restored, and he soon discovered that both his body and mind were refreshed by the power of the cultured milk. Kaiun realized that the secret of the flavor and health of the drink lay in the milk and lactobacilli. After returning to Japan, he devoted his time to developing his own delicious and healthy cultured milk product.

“I want to make a drink that will contribute to people’s lives,” said Kaiun, who devoted himself to studying lactobacilli. The result was CALPIS®, the first cultured milk drink in Japan.

Story

3The hidden health benefits of CALPIS® Cultured Milk

The cultured milk drunk by Inner Mongolian nomads was key to the develop-ment of CALPIS®. For them, cultured milk was seen as a source of nutrition and a healing medicine.

In the 1970s, believing that proper ties in CALPIS® Cultured Milk may have spe-cial health benefits, we launched a scientific study. By joining forces with RIKEN, a leading Japanese institution which has conducted comprehensive research in science and technology for more than 30 years, we discovered, through animal tests, that cultured milk contains proper ties that prolong life, suppress the growth of cancer cells and boost immunity.

We also proved, through tests in humans, that CALPIS® Cultured Milk can offset fatigue and stress and regulate blood pressure. In 1997, as a result of this study, we succeeded in developing AMEAL® S, a supplement for people with high blood pressure problems. AMEAL® S was approved for sale as a Food for Specified Health Use (FOSHU).

We are determined to continue discovering the benefits of CALPIS® Cultured Milk and lactobacilli, and to develop techniques and products that will contrib-ute to the health of our customers.

Story

2The taste of nature—Fresh milk andthe unique flavor of lactic acid fermentation

CALPIS® is made from nonfat milk. The milk is slowly fermented by adding microorganisms, including lactobacilli, that are unique to our company. These microorganisms have been nur tured by us for generations. Cultured milk produced in this manner is called “CALPIS® Cultured Milk.” Sugar and other ingredients are then added to CALPIS® Cultured Milk to create CALPIS® bev-erages. The white color of CALPIS® represents the color of milk, and its sweet and tangy flavor is produced by our own lactobacilli. The refreshing taste origi-nates in nature and cannot be produced by other drinks. CALPIS® has become a beverage enjoyed by all ages, from small children to the elderly.

Story

4 The trademark polka-dot pattern of the CALPIS® brand

CALPIS® was launched on July 7, 1919, on the day of Tanabata (the Star Festival).

In some Asian countries, including China and Japan, the custom is to gaze at the stars on this day. Because the product was launched on Tanabata, the design of the polka dot pattern on CALPIS® packaging was inspired by the image of stars in the Milky Way.

The original pattern contained white dots on a blue background. It was later changed to blue dots on a white background. This pattern continues to com-municate the refreshing image of CALPIS®, and retains its sense of freshness after all these years.

The trademark polka dot pattern is featured on all CALPIS® brand products available throughout the world.

Founder,Kaiun Mishima

The plains of InnerMongolia

CALPIS® concentrate, for sale in Japan

AMEAL® S (FOSHU) developed after long studies

Original CALPIS® packaginglaunched in 1922

1Topics

CALPIS® Star ter (lactobacilli) has been passed down for over 95 years.

Employee offering free samples of CALPIS® to commemorate the drink’s bir thday on the day of the yearly “Tanabata” Star Festival on July 7

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Created in 1919 as Japan’s first cultured milk drink, CALPIS® has been enjoyed by generation after generation of happy customers.

Inheriting the same lactobacilli and the natural manufacturing method known as “fermentation” devel-oped over 95 years ago, CALPIS® has evolved to meet the changing needs of the time. From home-use beverages to the outdoors, from young to old, and from beverages to foodstuffs, there is a CALPIS® for all customers, whoever they are and wherever they may be found.

Choice Recipes from the Employees of CALPIS® (Ikeda Publishing) / Released in June 2011

Our cookbook features recipes invented by our

employees.

Not just for beverages, CALPIS® can also be used as an ingredient in desserts and cooked dishes. A unique flavor born from nature, CALPIS® makes dishes much more delicious.

Cooking and Desserts...The Versatility of CALPIS®

In addition to ready-to-drink beverages like CALPIS WATER® and CALPIS SODA®, products like CALPIS OASIS, a perfect way to stay hydrated in day-to-day activities, bring “a new delicious” to the CALPIS® line. The wide lineup of CALPIS® products offers something perfectly suited for each generation.

CALPIS® for All

The growing CALPIS® lineup

The CALPIS® Brand: Bringing Fresh Value to the World

The Evolution of CALPIS®:Introducing the Blessings of Nature to One and All

In order to offer the delicious taste of CALPIS® in non-beverage variants such as ice cream and confectionaries, we work alongside a wide variety of manufacturers to develop and release collaboration products.

Additionally, we are also committed to offering professional-use products for the purpose of expanding delicious menus that feature CALPIS® at eating-out establishments such as cafés, restaurants and taverns.

Enjoy the Taste of CALPIS® Whenever and Wherever You Are

Delicious, healthy, safe and economical. These are the values which our founder, Kaiun Mishima, entrusted to CALPIS®. Now, over 95 years later, we continue to pass on these same founding principles.

The sweet memories created by making CALPIS® together, with family and friends, is par t of what has endeared us to so many. In the future, CALPIS® will continue to preserve the same tradition of values and trust. Our one goal remains the same, to join people together in smiles.

The Values of CALPIS®

The delicious flavor of CALPIS® can be found in countries throughout the world, including Thailand, Indonesia, Vietnam, China, Taiwan and America. We create new flavorings and product styles to suit the preferences of individual countries and regions. Our goal in expanding our business is to see CALPIS® enjoyed in locations all across the world.

Bringing Smiles to Faces Throughout the World

The original CALPIS®, launched in 1919

In Indonesia!

CALPIS® PopsiclesLOTTE Co., Ltd.

CALPIS® CandyCALPIS® x MINTIAAsahi Food & Healthcare Co., Ltd.

In Taiwan!

Created with CALPIS® drinkers in mind, the “Peace Bottle” is notable not only for retaining the deli-ciousness of its contents, but also for being both easy to use and environmentally-friendly.

CALPIS® StationFun to make and to drink, CALPIS®

stations introduce the joy ofCALPIS®, and can be found at massretailers and other locations.

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Researching CALPIS®

The Science of CALPIS®:Possibilities and Results

CALPIS® is made using our original cultured milk. Years of study into the hidden properties of CALPIS® Cultured Milk has led to the discovery of a variety of healthy and beneficial effects.

Research into CALPIS® has expanded to include research into fields such as functional lactobacillus, effective microorganisms, and intestinal environments, all leading to impressive results.

Since the 1970s, our company has been engaged in research into CALPIS® Cultured Milk. This has led to the discovery, for instance, of components which help to regulate blood pressure. In recent years, we have also discovered qualities which improve vascular function and circulation, and which may prove useful in the prevention of ar teriosclerosis.

In addition, we are also pursuing promising new research into the improvement of memory and sleep habits. Over the years we have also discovered lactobacilli which can reduce allergy symptoms, control stress, and reduce metabolic syndrome. We strive to suppor t the health and happiness of our customers, and will continue to search for the many hidden benefits of cultured milk and lactobacilli.

Calpis Co.’s research into intestinal environments and foodstuffs has led to the accumulation of a number of other effective microorganisms in addition to lactobacilli. These discoveries have led, in turn, to the development of products such as animal feed probiotics or products for use in sustainable farming. By harnessing the potential of microorganisms, we are working to ensure a global environment with safe, reliable sources of food.

CALPIS® was born from the desire to provide a delicious and healthy beverage to people around the world. This sentiment is at the root of the flavoring technologies that we have developed over years of research to bring for th a multitude of flavors. In turn, these technologies serve as the foundation underpinning the special appeal behind our products. Our in-depth research into the delicious flavors created using the blessings of natural milk and lactobacilli is what guarantees our products are of the highest quality.

The Study of Flavor

Researching the Healthy Benefitsof Cultured Milk and Lactobacilli

The Potential Application of Effective Microorganisms

in other Fields

CALPIS® StarterAn aggregation of microorganisms such as lactobacilli and yeast

CALSPORIN® and Animal Feed AdditivesCALSPORIN® helps to improve the intestinal environments of livestock, allowing animals to grow and/or reproduce to their full genetic potential.

Lactobacillus acidophilus L-92 StrainAn original strain of lactobacilli discovered by Calpis Co., known to help balance the immune system and reduce allergy symptoms.

Lactobacilli Yeast

CALSPORIN®

The positive effectsdiscovered in

cultured milk andlactobacilli

● Improves memory

● Improves vascular function

Controls stress ●

Retains moisture for beautiful skin ●

Alleviates fatigue ●

Reduces allergy symptoms ● ● Regulates blood

pressure

● Reduces metabolicsyndrome

* These beverage brand products manu-factured by Calpis Co., Ltd. are distributed by Asahi Soft Drinks Co., Ltd.

CALPIS® Gift Set

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The “Hotto” series of canned beverages made its debut in 1992 with “HOT LEMON.” Since then, it has been an increasing favorite among people of all ages for delivering a soothing taste while also warming up the body during cold seasons.

From 2003 onwards, the “Hotto” series has also been available in concentrate form to enable families to casually enjoy its warm and soothing taste at home as well. We will continue to expand on the lineup of this series while preserving the gentle sweetness that defines our flagship “HOT LEMON” beverage and other products under the “Hotto” brand.

In 1904, our founder, Kaiun Mishima, discovered an extraordinary drink while traveling through Inner Mongolia. That drink was cultured milk—cow or horse milk fermented using “lactobacilli.”

After drinking the fermented milk for several days, Mishima soon noticed that he felt stronger and happier. He had just discovered a healthy and delicious new drink. When Mishima returned to Japan, he began studying milk and lactobacilli for himself, and carried out a series of repeated experiments that eventually yielded an unprecedented deliciousness. This would go on to become Japan’s first cultured milk drink, CALPIS®, in 1919.

Since that time, we have continued to offer healthy and delicious beverages to generation after generation.

A Look at Calpis Co.’s Top Beverage Brands

CALPIS® concentrate offers a delicious taste which is healthy, safe and economical, with the added freedom of being able to mix it to suit your tastes. CALPIS® concentrate is also versatile, and can be used as an ingredient in cooking and desser ts. Time spent mixing CALPIS® beverages or experimenting with it as a complementary ingredient is a great way to nur ture family communication and fun. The unmistakable deliciousness of CALPIS®, which has been nur tured using lactobacilli and the natural manufacturing method known as “fermentation” passed down for over 95 years, will continue to bridge generations with the smiles that it creates.

The wide variety of CALPIS® brand milk-based beverages is beloved for their delicious flavor and originality. From thirst-quenching drinks to desser t-like drinks for leisurely savoring a mild flavor, CALPIS® and its sweet and sour taste serves up beverages to satisfy the needs of all customers, from young to old.

Using its proprietary lactobacilli and fermentation technologies cultivated through years of research, Calpis Co. also produces beverages that have been specially designed to promote health. Through offerings such as the FOSHU (Foods for Specified Health Uses) “AMEAL® S” and “KENCHAOU” as well as “MAMORU HATARAKU NYUSANKIN,” a delicious way to stay active, we suppor t the health of the people of today.

“Welch’s” is a fruit juice beverage that has remained a perennial consumer favorite by vir tue of its rich taste and high quality. CALPIS® offers an attractive lineup of grape-centered Welch’s products for a variety of occasions.

This lineup includes the “100%” series, which comes in a sizeable 800g PET bottle for the whole family to amply enjoy the rich taste of Welch’s, as well as carbonated and various types of juice variations for adults. All of these promise the deliciousness of juice produced with the highest quality.

The Fun of CALPIS® Starts Even Before You Drink It

Pairing the Appeal of the CALPIS® Brand with a Variety of Needs

A Variety of Healthy andFunctional Drinks to Support BusyModern Living and Eating Habits

For Genuine Grape Taste,Look No Further Than Welch’s

Growing in Popularity Year after Year for Its Soothing

Taste: The “Hotto” Series

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CALPIS® is made from fresh, unprocessed milk—the same high-quality milk used to create our dairy products such as butter and fresh cream. Adding the lactobacilli and fermentation techniques cultivated in the manufacturing of CALPIS® further enhances the taste, creating a fresh evolution in flavor and taste.

Our Institutional & Industrial Products Business exists especially to serve food experts, restaurant outlets, confectioneries, wholesale manufacturers and other culinary professionals by offering quality goods and services. In recent years we have even collaborated with several companies to create special products, such as sweets or breads, which allow consumers to enjoy the delicious taste of CALPIS® in a variety of new forms.

Fresh Creations in Flavor and Tastefor Every Culinary Scene

Rich Flavorful and Tasty Dairy Products Crafted with Quality Ingredients and Unparalleled Technique

The advanced dairy processing techniques and strict quality controls developed through the manufacturing of CALPIS® are also used to create our premium dairy products, such as butters or fresh creams. These products are made from milk-fat produced from the highest quality fresh milk.

Our dairy products are distributed by Calpis Foods Service Co., Ltd., and are available through professional channels and at depar tment stores and mass retailers (butter only). A preferred prod-uct of deluxe class restaurants, hotels and confectioneries, our dairy products help to create ‘the added value of flavor and taste’ so integral to these venues.

Exposition of CALPIS® dairy products

Professional-Use Dairy ProductsA variety of multi-purpose butters and fresh creams are available to help support culinary professionals in their trade.

Professional-UseProducts

Originally, dair y products by Calpis Co. were manufactured for profes-sional use. It wasn’t long, however, until we received numerous requests to make them available to the general public. To satisfy such requests, we commercialized “CALPIS CO. TOKUSEN BUTTER” for general public consumption. With its white hue and rich dair y taste, this product has a highly dedicated following.

● Everyone’s Spreading the Word after Spreading the Butter

Buttermania(Published by DAIWASHOBO)/Released in October 2013A book filled with recipes using CALPIS® Specially-Selected Butter by the greatest experts of all—Calpis employees.

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Our founder, Kaiun Mishima, created CALPIS® in order to contribute to people’s health and happiness through the use of lactobacilli. At Calpis Co., we have inherited this same determination, which is why we have spent years researching lactobacilli and other effective microorganisms. Behind this research is the sincere hope that our results will help customers spend every day feeling healthy and happy. We will continue to offer wholly-unique functional foods with this sentiment in mind.

KENSAI-SEIKATSU / ARERU-CAREA simple everyday supplement for

customers who wish to growhealthier from the inside.

KENSAI-SEIKATSU /SHINAYAKA-CARE

SHINAYAKA-CARE helpscustomers concerned about

their age or lifestyles to remainhealthy and physically fit.

KENSAI-SEIKATSU / BIOMINEThe probiotic strain C-3102 promotes health by controlling microbial flora.

FunctionalFoods

Through Technologies Borne from Our Pursuit of Lactobacilli and Fermented Milk, We Strive to Do Our Part to Keep People Feeling Healthy and Happy Every Day

Calpis Co. offers a range of functional foods which make use of our own original compounds and technologies. Products include “ARERU-CARE,” which contains the functional lactobacillus, Lactobacillus acidophilus L-92 strain, “SHINAYAKA-CARE,” with distinct peptides, and “BIOMINE,” with the new probiotic strain C-3102. We offer these supplements and other functional foods to customers via mail-order to provide suppor t for healthier lifestyles.

We Use Special Beneficial Microorganisms, Compounds and Technologies in Our Many Mail Order “Functional Foods”

Online shop (Japanese only)https://www.calpis-shop.jp/

* KENSAI-SEIKATSU-brand products are only available through mail-order

Animal Digestive Tract

［ 　　　　　　　 ］Effective Microbes

Lactobacillus Bifidobacteria CALSPORIN®

StressCALSPORIN®

Increasing Beneficial Bacteria makes improved

feed efficiency

Beneficial Bacteria reduced due to stress

Upon administering CALSPORIN®…

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Microorganisms, or microbes are microscopic life forms that cannot be seen with the naked eye. There are countless and tiny microbes that reside inside the digestive tract of humans and animals, and they may play important roles to control the overall health balance. We, CALPIS, apply our longstanding research and technology of microbes to contribute support for healthy growth in livestock. Our probi-otics for animal feed is to effectively help the livestock farmers while keeping smile of consumers beyond the table utilizing great capacity of these tiny microorganisms.

Animal Feed Probiotics

We Provide Support from Production Field in order to Bring Healthy and Safe Food to the People around the World

Our Proprietary Probiotics for Animal Feed orWater Help Produce Safe, High Quality Livestock and Poultry Products

CALSPORIN®

Available both within and outside of Japan, our CALSPORIN® and FINELACT® are animal feed probiotics that incorporate the use of Bacillus subtillis, Lactobacillus and other microbes to help to improve the balance of the intestinal flora and hereby enhance the performance and health of livestock.

As the need for safe and dependable livestock products continues to grow worldwide, livestock industries are feeling the pressure to offer live-stock products that do not incorporate the use of antibiotics for growth promoter.

In all animal-producing countries, people are seriously concerned about the use of antibiotics in feed. The impor tance of reducing antibiotic usage in animal production is a topical issue.

By vir tue of enabling livestock breeders to raise animals without depending on antibiotics and being tailored for efficient use in animal feed, CALSPORIN® and FINELACT® are receiving remarkable attention from livestock industries overseas as a par t of the solution. Scientifically-designed trials implemented both within and outside of Japan testify to the growth-boosting effects of CALSPORIN®, which is currently uti-lized by major meat producers both domestically and overseas.

We currently engage in sales activities paired with technical suppor t worldwide to serve the interests of such producers while also ensuring that consumers at the end of the chain are able to get their hands on livestock products that are both safe and delicious.

CALSPORIN® and other products under our Animal Feed Business

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We hope that one day all the people of the world will get to experience the one-and-only flavor of delicious and healthy CALPIS®. To help see this happen, we are concentrating on expanding our beverage business internationally, bringing CALPIS® to Asia and the world beyond.

Calpis Co.’s international beverage business is committed to offering the unparalleled flavor of CALPIS® in a form best suited to each country’s culture and economic climate. In neighborhoods throughout the world, we hope to see CALPIS® products and beverages specifically suited to the area. By introducing CALPIS® brand, our goal is to deliver worldwide smiles.

Let’s Fill the World with Peace.Because We Love to See the Whole World Smile

International Beverages

Our eating habits are closely related to the climates, cultures and lifestyles of our regions. In order to run a successful beverage business overseas, it is impor tant to grasp the characters and features of each country, and to offer value tailored to those local markets.

Currently, Calpis Co. has local subsidiaries and offices in eight locations across the world. Each location offers the healthy and delicious flavor of CALPIS® through products specially designed for the region. Because, even when we can’t speak the same language, we believe that a good product will bring smiles to people’s faces.

Offering products specially suited to each country or region’s needs.

Bringing Happiness and Comfort. Bringing CALPIS® to the World

Overseas Locations

◦ Local subsidiaries ◦ Representative offices and branches

Thailand(2013-)

Vietnam(2006-)

China(2005-)

Taiwan(1995-)

U.S.A.(1991-)

Indonesia(1994-)

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Research and Development

Creating New Value by Combining Unparalleled Expertise with the Latest Scientific Developments

We pursue healthier and more delicious products through the use of scientific evidence.

Researching the undiscovered benefits of lactobacilli, we contribute to society through the development of new technologies and functional components.

A Laboratory Specializing in Evaluating Intestinal Environments for the Promotion of Food and Medical Research

CALPIS®, the first cultured milk drink in Japan, was born from our founder, Kaiun Mishima’s desire to contribute to the wellbeing of people throughout the world by creating something that was both healthy and delicious. Inheriting the same convic-tions as our founder, we pursue research into effective microorganisms such as lactobacilli and yeast, which are key to creating healthier, more delicious beverages and foods, and which have the potential to improve the happiness and wellbeing of those around us.

Since our companies founding, we have carried out research into lactobacilli-producing materials as well as the proper ties of lactobacilli itself. This research has led to the successful development of a variety of functional components and new technologies.

For instance, research into CALPIS® Cultured Milk has led to the discovery of qualities which regulate blood pressure, including discovery of the component responsible, Lactotripeptide (LTP). This in turn led to product development of CALPIS® Cultured Milk/AMEAL® S. Recently, “immunomodulatory” lactobacilli with anti-allergic effects and protection against influenza have also been discovered and are being developed for productization. Also, research into lactobacilli-producing cultured milk and peptides has resulted in the discovery of many new benefits, such as improved vascular

Countless microorganisms (bacilli) reside in the intestinal tracks of both humans and animals, and unique bacterial microbiota (known as “intestinal flora”) form according to a creature’s age and diet. The compo-sition of a creature’s intestinal flora has a significant impact on their health and well-being.

Upon request, our Intestinal Flora Laboratory—par t of our Microbiology & Fermentation Laboratory—can use its wealth of scientific data, collected over many years of research, in order to evaluate intestinal environments. By measuring and analyzing bacterial flora and metabolites, the laboratory helps to suppor t the research, development and quality cer tification of universities, pharmaceutical firms, food companies, and other such outside organizations.

Lactobacillusacidophilus L-92 strain

CALPIS® Star ter

◦ Animal Feed ProbioticsCALSPORIN®, FINELACT®

◦ Immunomodulatory lactobacillusLactobacillus acidophilus L-92 strain

◦ Biogenics LTP

◦ New functional foods and componentsTo control stress, reduce metabolic syndrome, and fight aging, etc.

◦ Development of tasty beverages and foods

◦ Studies of flavors derived from fermentation

Supervising the Microbiology & Fermentation Laboratory and the Products Development Center, this department focuses on strategic planning for the promotion of research and development.

Pursuing diverse research focused on microorganisms, fermentation tech-niques and peptide application, this department specializes in developing functional components which help to support healthy bodies and minds.

Driving our original products, this department uses technologies in dairy treatment as well as expertise in the creation of rich and complex flavors to develop healthy and delicious bever-ages and food.

Research andDevelopment

Microbiology &FermentationLaboratory

Research andDevelopment

PlanningDepartment

ProductsDevelopment

Center

The FoundationBehind Calpis Co., Ltd.

CALPIS® Cultured Milkand microorganismssuch as lactobacilli.

The Valueof Health

The Search forEffective

Microorganisms

The Pursuitof Flavor

Intestinal Flora Laboratory

function, skin moisturization, and memory. These benefits promise a range of non-beverage applications, such as the creation of new foodstuffs or cosmetics.

By pursuing the benefits hidden in lactobacilli and other effective microorganisms, we at Calpis Co. will continue to make contributions to society through the development of new bioactive materials and products.

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Initiatives onSafety and Reliability

Calpis Co. Follows Strict Quality Control Measures,with Safe, Reliable Products as our First Priority

Our unique quality assurance system is based on ISO 9001 and HACCP quality controls.

In order to provide safe, high-quality products to our customers, we follow an original quality assurance system based on ISO 9001 international quality man-agement cer tification and HACCP* food sanitation control management systems. Strict quality controls are enforced during all stages of production, from product development, to the selection and supply of ingredients, to manufacturing and shipping.

During product development, ingredients, packaging, production methods, labeling and so on are inspected according to a 200-point inspection list so as to ensure safety, quality, and accurate labeling. Only when an item passes all points can it be released as a product. Ingredi-ents used during production have a strong impact on final safety, so all ingredients are evaluated for safety before being selected. In addition to choosing suppliers with strict quality controls, we also continue to randomly select and check ingredients once mass production has begun. These voluntary inspections help to fur ther ensure quality and safety.

* HACCP (Hazard Analysis and Critical Control Points): A systematic preventive approach that is established and instituted to reduce or elimi-nate the risk of food safety hazards at all stages of food production and preparation, including packaging, distribution, etc.

Major Items for Inspection

PlanningProduct Concept

(Brand, Flavor, Packaging, Volume, etc.)

ProductionFacilities, Suitability,

Standards, Compliancy

DevelopmentIngredients, Proportions,

Design, Packaging

LabelingCompliancy,

Classification,Listing of Ingredients, Expiration Dates,

Storing Methods, Manufacturer's Name,

Nutritional Information, Warnings, etc.

IngredientsSafety Inspections,

Compliancy, Quality, Preservability

● Gunma Plant

● Okayama Plant

PackagingSafety, Compliancy

All manufacturing processes follow the higheststandards of quality and safety.

Strict hygiene and quality controls are carried out on-site during manufacturing. For instance, when producing CALPIS®, all processes, from the receiving of ingredients to fermentation, maturation, filling and packaging, are performed with the latest in automated equipment. Strict hygiene control and inspection before shipping, based on HACCP techniques, is also carried out, to fur ther ensure quality and safety.

In 2008, an aseptic production line for PET bottle beverages was also installed. We have improved the quality and safety of the production line, followed up with an additional line in 2014. The reduction of water and vapor when using the aseptic line has helped to reduce environmental burdens.

Fermentation tank for theproduction of CALPIS®

Cultured milk storage tank inGunma Plant

Peace Bottles before labeling

Est. 1972● Area: 135,960 m2

● Products:CALPIS® (Peace Bottle), CALPIS WATER®, Welch’s, AMEAL® S, and other PET bottle beverages; Butter ; CALSPORIN®; FINE-LACT®; etc.

Est. 1968● Area: 72,037 m2

● Products:CALPIS® (Peace Bottle), CALPIS WATER® and other PET bottle beverages; Butter ; etc.

● Equipment:-Capacities are listed in parentheses.Concentrated beverage bottle line (500/min.)Small PET bottle line (500/min.)Aseptic PET bottle line (600/min.)Butter production lineEtc.

● Equipment:-Capacities are listed in parentheses.Concentrated beverage bottle line (200/min.)PET bottle line (500/min.)Butter production lineEtc.

The CALPIS® Peace Bottle filling line

To live up to the trust of our customers that we have earned for over 95 years, our manufacturing division, which bears the greatest responsibility for the safety and reliability of CALPIS® products, carefully produces each individual product with pride in and love for their work.

Major Production Facilities in Japan

Impr

oved

Lab

eling in

Response to Customer Feedback

Allergy warnings were changedto a diagram so as to be

easier to understand.

Note: Labels differ according to the product.

24 25

Communication Endeavors

Each and Every One of Us at Calpis Co. Will Do Everything in Our Power to Put Smiles on the Faces of Our Customers

Environmental Contributions

Shared information and feedback allow us to incorporate customer opinions.

Calpis Co. remains as committed as ever to seeing our children grow up healthy and strong.

In order to continue providing goods and services which satisfy cus-tomers, we aim to incorporate the opinions and suggestions received from our customer relations depar tment as swiftly and as accurately as possible.

All feedback received from our customers and clients via telephone and email is entered into a database. This information is then shared with the relevant depar tments. When complaints, requests, opinions related to marketing and so on are received, a Request for Improve-ment is sent to the relevant depar tment. This allows us to continually better our products and services. Additionally, to more fully understand our customers’ wishes and to bring greater satisfaction and joy through our business, we also hold Customer Satisfaction Improvement Meet-ings, where specific methods for improvement are discussed.

In the future, we at Calpis Co. will continue to incorporate customer inquiries into our business activities as swiftly, accurately and fully as possible. Customer feedback will always remain the guiding light in bettering our products.

Our children are the future, and Calpis Co. has developed a variety of programs to ensure that they grow up healthy and strong. An excellent example of this is the CALPIS® Hina Matsuri (Doll’s Festival on March 3) Gift program, which has been a feature of the company since 1963. First suggested by our founder, Kaiun Mishima, this program provides children with delicious CALPIS® to enjoy in place of the traditional white saké drunk as a toast on Doll’s Day.

Currently, invitations are sent to kindergar tens and nursery schools throughout Japan. Par ticipating schools are then sent presents of CALPIS® for toasting the holidays as well as and miniature picture books. Over 3 million children now celebrate the festival with CALPIS® every year.

Through onsite classes for elementary school students, we support learning about “food” as well as the formation of dreams for the future.

As a unique form of community activities that takes advantage of our knowledge regarding lactobacilli and fermentation, since 2008, we have been conducting onsite classes for elementary school students. These classes have been dubbed the “CALPIS® Children’s Lactobacilli Laboratory” as of 2013. The hands-on por tion of these classes, which is themed after lactobacilli and fermentation and incorporates all five senses, stimulates student par ticipants’ interest in “food.” In the discussion por tion, which has student par ticipants ponder the “future” alongside employees of Calpis Co., the impor tance of “creating something from nothing and tying it into future dreams” is con-veyed while shedding light on the story of the bir th of CALPIS®.

Nurturing healthy imaginations for our children by promoting picture books and the love of reading.

CALPIS® Picture Books, which we produce in cooperation with external publishers, have been available since 1982. These are a crystallization of our goal of helping to nur ture the healthy imagina-tions of our children by promoting the love of picture books and reading. Also, upon the Hina Matsuri (Doll’s Festival) holiday in 2014, Calpis Co. hosted an event at its headquar ters where local parent and child residents were invited to hear employees read aloud picture books and try making CALPIS® together. Through such happy activities, we leave lasting positive impressions on par-ticipating students.

The CALPIS®

Picture Books series

CALPIS® and mini picture bookfor Hina Matsuri (Dolls’ Festival)

Biotope (Gunma Plant)

Green Curtain (Okayama Plant)

We engage in environmental action, while thanking for the blessings of nature.

In order to reduce our environmental footprint at all stages of opera-tions, from product development to production and sales, we at Calpis Co. have acquired ISO 14001 international environmental management cer tification, and continually pursue company-wide improvements. For instance, at the product development step, we have reduced the envi-ronmental footprint of our product by decreasing the weight of packaging and containers (as with the shrink label of CALPIS WATER®) and through the use of biomass materials (as with the new Peace Bottle). At our plants, in addition to using low burden natural gas in place of crude oils, we successively recycle 100% of our waste materials. Moreover, we are working to effectively reuse the sludge generated during water treatment as a raw material for fer tilizer.

CALPIS® Hina Matsuri (Doll’s Festival) Celebration:Fun event in which employees read aloud picture books to children

CALPIS® Children’s Lactobacilli Laboratory Groups of 5 to 6 students are paired with their own guest teacher

Social Contributions

26 27

Company Profile

Organization (as of April 1, 2014)

Overseas OperationsExecutives (as of March 19, 2014)

Performance Trends (consolidated)

Name Calpis Co., Ltd.Headquarters 2-4-1, Ebisu-minami, Shibuya-ku, Tokyo, JapanPostal code 150-0022Phone +81-3-5721-3111Established October 13, 1917Capital stock ¥13.056 billionNumber of employees 513 (as of March 31, 2014)Net sales ¥103.4 billion (Ordinary income of ¥4.6 billion) Consolidated figures for FY 2013*

*As of September 2013, Calpis Co., Ltd. has transferred control of its Japanese domestic beverage businesses to Asahi Soft Drinks Co., Ltd.

Stockholder Asahi Group Holdings, Ltd.

DirectorsFujio YamadaPresident and Representative Director

Minoru YamasakiDirector

Shunsuke FujiDirector

Takeshi IchikiDirector

Takahiro NitandaDirector

Kazuo MotoyamaOutside Director

Katsutoshi TakahashiOutside Director

Statutory AuditorsSatoru IkedaStanding Statutory Auditor

Noriyuki NakanishiStanding Statutory Auditor

Yoshihiro TonozukaStatutory Auditor

OfficersFujio YamadaChief Executive Officer

Minoru YamasakiExecutive Officer

Shunsuke FujiSenior Officer

Takeshi IchikiSenior Officer

Takahiro NitandaSenior Officer

Youichi MarunagaSenior Officer

Yoshio SaitoSenior Officer

Takashi HiraharaOfficer

Kiichi MatsumotoOfficer

Jyun KuranariOfficer

Kazuhiro KawamuraOfficer

Headquarters

*1 Business results for FY 2012 are from the irregular period between April 2012 and December 2012 due to the Company amending its fiscal term.

*2 As of September 2013, Calpis Co., Ltd. has transferred control of its Japanese domestic beverage businesses to Asahi Soft Drinks Co., Ltd.

CALPIS AMERICA, INC. 455 Dividend Drive Peachtree City, GA 30269, U.S.A. Phone: +1-678-961-7000

Taiwan TAIWAN CALPIS CO., LTD. 4F-3., No.126, Sung Chiang Road, Zip 10457, Taipei, Taiwan, R.O.C Phone: +886-2-7702-0088

Indonesia PT CALPIS INDONESIA EJIP Industrial Park, Plot 7-C Cikarang Selatan, Bekasi 17550 Indonesia Phone: +62-21-897-0240

Thailand CALPIS OSOTSPA CO., Ltd. 6th Floor, White Group Building 1, 75 Soi Rubia, Sukhumvit 42Rd., Prakanong, Klongtoey, Bangkok 10110 Thailand Phone: +66-2-381-9941

U.S.A. China CALPIS CO., LTD. SHANGHAI REPRESENTATIVE OFFICE No.906B Citic Square, 1168 Nanjing Road (West), Shanghai City, China 200041 Phone: +86-21-6253-0316

CALPIS (SHANGHAI) COMMERCE & TRADE CO., LTD. Phone: +86-21-6259-6326

CALPIS CO., LTD. HO CHI MINH CITY REPRESENTATIVE OFFICE 9th Floor, ITAXA HOUSE, 122-124-126 Nguyen Thi Minh Khai St., Dist. 3 Ho Chi Minh City, Vietnam Phone: +84-8-3930-8485

CALPIS CO., LTD. EUROPE REPRESENTATIVE OFFICE 46, rue Paul Valéry 75016 Paris CEDEX 16, France Phone: +33-1-44-29-27-67

Vietnam

Europe

Income before Extraordinary Profit / Loss and Taxes (100 millions of Yen)Net Sales (100 millions of Yen)

2009 2010 2011 2012*1

(Year)

1,200

900

600

300

0

80

60

40

20

0

◦ Internal Auditing Office◦ Corporate Planning Department◦ Financial Department◦ Human Resources & General Affairs Department◦ Quality Assurance & Environment Department◦ Customer Service Department◦ Dairy Industrial Products Division

◦ Dairy Materials Purchasing Department◦ Functional Foods Business Department◦ Feed Division◦ International Beverage Division◦ Production Department◦ Production Technology Department◦ Materials Purchasing Department

◦ Hokkaido Branch◦ Tohoku Branch

Kita-Tohoku Sales Office◦ Tokyo Metropolitan Branch◦ Kanto Branch

Niigata Sales OfficeNagano Sales Office

◦ Chubu Hokuriku BranchShizuoka Sales OfficeHokuriku Sales Office

◦ Kinki Regional Branch◦ Chugoku and Shikoku Branch

Okayama Sales OfficeShikoku Sales Office

◦ Kyushu BranchMinami-Kyushu Sales Office

◦ Sales Promotion Department◦ Sales Department for Nationwide

Off-Premise Retailers◦ Concentrated Beverage & Gift Department◦ Beverage Business Department◦ Advertising Department

◦ Research and Development Planning Department◦ Products Development Center◦ Microbiology & Fermentation Laboratory

◦ Okayama Plant◦ Gunma Plant

Headquarters

Dairy Product Sales Calpis Foods Service Co., Ltd.3F Calpis headquar ters building, 2-4-1,Ebisu-minami, Shibuya-ku, Tokyo, Japan 150-0022

Phone: +81-3-5768-7481URL http://www.calpis-cfs.co.jp

CALPIS Global Website (English)　http://www.calpis.net/

Asahi Soft Drinks Co., Ltd. Sales Headquarters - Calpis Products

* The marketing and distribution of beverage brands belonging to Calpis Co., Ltd. in Japan is conducted by the Calpis Sales Division at Asahi Soft Drinks Co., Ltd.

Research & Development Plants

2013*2