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’, ’CALPIS WATER’, ‘カルピスウォーター’, ‘カルピス酸乳’, ‘アミールS’, ’AMEAL’, ‘大人の健康’, ‘CALPIS SODA’, ‘カルピスソーダ’, ‘健茶王’, ‘CALPICO’, ‘CALPICO SODA’, ‘カルスポリン’, ‘CALSPORIN’, ’ファインラクト’, ’FINELACT’, ‘カルピスサワー’, ’CALPIS SOUR’, ’毎朝野菜’, ‘アレルケア’, ‘健彩生活’, ’可爾必思’, ‘可尓必思’, ‘The Premium CALPIS’, ‘ザ・プレミアムカルピス’, ‘しなやかケア’, ‘ビオマイン’, ‘年齢ペプチド’ are registered trademarks of Calpis Co., Ltd. ‘LTP’, ‘L-92乳酸菌’ are trademarks of Calpis Co., Ltd.

I-BC-1212-030

Corp

orate Profile 2 012-2013

English

Let’s Put a Smile on Your Face.“Karada ni Peace”Made with fresh milk and lactobacilli, CALPIS® was created from the blessings of nature. Healthy and delicious, we stay true to our natural beginnings.Dedicated and passionate, our dreams know no bounds.We are here to bring smiles to customers’ faces, all throughout the world.

“Tanabata” (Star Festival), July 7, 1919. CALPIS® is born.

Delicious “Karada ni Peace” products and services from four specialized divisions.

Let’s fill the world with peace.

Even when we speak a different language, a good product can bring a smile to people’s faces. We look forward to bringing the delicious flavor of CALPIS®, and the benefits of lactobacilli, to people all throughout the world.

Through developments in our Domestic Beverage Business, Institutional & Industrial Products Business, International Beverage Business, and Microorganism Application Business, we have continued to introduce health and flavor to the eating habits of generation after generation.

Bittersweet, mellow and refreshing. Japan’s first cultured milk drink, CALPIS®, has been bringing smiles to people’s face for generations.

Contents

Corporate Philosophy/ Four Divisions/“Karada ni Peace Calpis” 4Message from the President 5The CALPIS® Story 6Topics 1 CALPIS® Brings Fresh Value to the World 8

Y e s t e r d a y T o d a y T o m o r r o w

Topics 2 Researching CALPIS® 10Domestic Beverage Business 12Institutional & IndustrialProducts Business 16International Beverage Business 18Microorganism Application Business 20

Research and Development 22Initiatives on Safety and Reliability 24Communication 26CSR Activities 28Company Profile/ Executives/Locations 30

32

“Karada ni Peace Calpis,” throughout the World

Since its birth over 93 years ago, the cultured milk drink, CALPIS®, has been loved for generations 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 established 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 cultured 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 or animal feed probiotics. In October 2010, Calpis Co. reached a new turning point in its history by becoming a member of Asahi Group, a holding company specializing in spirits, beverages and foodstuffs.

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 generation to generation, and across national boundaries, one mission remains the same: to promote the undeniable flavor and healthy values of CALPIS®.

Corporate Philosophy

DomesticBeverageBusiness

InternationalBeverageBusinessInstitutional

& IndustrialProducts Business

Microorganism Application

Business

Corporate Slogan：“Karada ni Peace Calpis”

“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.

A Deepening Contribution to Society throughProducts and Technologies that Promote

Healthy Bodies and Minds.

Four Divisions

Fujio YamadaPresident and Representative Director

4

Story

1In 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 maintain their health, especially for those living in harsh natural environments. Kaiun was surprised by the drink’s good flavor and healthful properties. 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.

CALPIS® was developed as a health drink

Story

3The cultured milk drunk by Inner Mongolian nomads was key to the development of CALPIS®. For them, cultured milk was seen as a source of nutrition and a healing medicine.

In the 1970s, believing that properties in CALPIS® Cultured Milk may have special 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 properties 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 contribute to the health of our customers.

The hidden health benefits of CALPIS® Cultured Milk

Story

4CALPIS® 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 communicate 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.

The trademark polka-dot pattern of the CALPIS® brandStory

2CALPIS® 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 nurtured 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® beverages. 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 originates in nature and cannot be produced by other drinks. CALPIS® has become a beverage enjoyed by all ages, from small children to the elderly.

The taste of nature—Fresh milk and the unique flavor of lactic acid fermentation

Original CALPIS® packaginglaunched in 1922

AMEAL® S (FOSHU) developedafter long studies

The CALPIS® Story

Founder, Kaiun Mishima

The plains of Inner Mongolia

CALPIS® concentrate, for sale in Japan

76 777

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 natural manufacturing methods developed over 90 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.

Topics

1 CALPIS® Brings Fresh Value to the World

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

In Indonesia In Taiwan

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.

Delicious café, restaurant and tavern menus featuring

CALPIS® are also available. We are committed to developing

and promoting new recipes and professional-use products

in order to promote these menus. Additionally, we work

together with a wide variety of manufacturers in order to

develop new foodstuffs which capitalize on the delicious

flavor of CALPIS® products.

The delicious flavor of CALPIS® can be found in countries

throughout the world, including Indonesia, 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.

CALPIS® Steamed BunsYamazaki Baking Co., Ltd.(Limited, Summer 2012.)

CALPIS® PopsiclesLOTTE Co., Ltd.

Our cookbook features recipes invented by our employees.

Cooking and Desserts...The Versatility of CALPIS®

CALPIS® StationFun to make and to drink, CALPIS® stations introduce the joy of CALPIS®, and can be found at mass retailers and other locations.

CALPIS® Starter (lactobacilli) has been passed down for over 90 years.

Choice Recipes from the Employees of CALPIS® (Ikeda Publishing)

Delicious, healthy, safe and economical. These are the values which our founder, Kaiun Mishima, entrusted to CALPIS®. Now, over 90 years later, we continue to pass on these same founding principles.

The sweet memories created by making CALPIS® together, with family and friends, is part 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®

In addition to ready-to-drink beverages like CALPIS WATER® or

CALPIS SODA®, products like The Premium CALPIS® bring “a

new delicious” to the CALPIS® line. The wide lineup of CALPIS®

products offers something perfectly suited to the beverage

tastes of each generation.

CALPIS® for All Enjoy the Taste ofCALPIS® Whenever and

Wherever You Are

Bringing Smiles to FacesThroughout the World

The growing CALPIS® lineup

The original CALPIS®, launched in 1919

The ‘Peace Bottle’ was introduced to

better protect flavor. For happier, more

delicious enjoyment of CALPIS®.

8 9

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 arteriosclerosis.

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 support 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 organic

farming. By harnessing the potential of microorganisms, we are working to

ensure a global environment with safe, reliable sources of food.

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.

Topics

2 Researching CALPIS®

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

CALPIS® StarterAn aggregation of microorganisms such as lactobacilli and yeast

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

Lactobacilli

Yeast

CALSPORIN®

The Science of CALPIS®:Possibilities and Results

CALPIS® was born as a delicious and healthy beverage for people

around the world, part of the special appeal behind our products is

the creation of complex flavors through technologies developed over

years of research. 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 ofEffective Microorganisms in other Fields

The positive effectsdiscovered in

cultured milk andlactobacilli

Reduces metabolic syndrome

Regulates blood pressure

Retains moisture for beautiful skin

Improves memory

Improves vascular function

Alleviates fatigue

Reduces allergy symptoms

Controls stress

10 11

ConcentratedBeverages

(for Dilution)

Domestic BeverageBusiness

CALPIS® concentrate offers a delicious taste which is healthy, safe and economical, with the added freedom of being able to mix to suit your tastes. CALPIS® concentrate is also versatile, and can be used as an ingredient in cooking and desserts. Time spent mixing CALPIS® beverages or adding new ingredients, is a great way to nurture family communication and fun. We emphasize promotion of the many ways of enjoying CALPIS® via our advertisements, websites and in-store campaigns.

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 in 1919 Japan’s first cultured milk drink, CALPIS®, was born. Since that time, we have continued to offer healthy and delicious beverages to generation after generation.

CALPIS® Diet for calorie watchers and the CALPIS® Fruit series(mixed with fruits juices) are also available.

A favorite for years, CALPIS® also makesan excellent gift.

Put a Smile on Your Face.Healthy and Delicious Beverages Packed with Flavor in Every Drop

CALPIS® Gift Set

CALPIS® has Been Enjoyed by Generation after Generation, for Over 90 Years

12 1333

Low-AlcoholBeverages

Healthy andFunctional

Drinks

Ready-to-Drink

CALPIS®Beverages

The wide variety of CALPIS® brand milk-based beverages are beloved by customers for their delicious flavor and originality. To keep our beverages so irresistible we use fresh all-natural milk, unique fermenting techniques, and lactobacilli which has been nurtured since the company’s founding. With products suited for every lifestyle, we have beverages to satisfy the needs of all customers, from young to old.

The evolving CALPIS® brand

Using original technology developed over many years of research, Calpis Co. also produces beverages which have been specially designed to promote our customers’ health. We offer products ranging from our AMEAL® S Series (a FOSHU (Foods for Specified Health Uses) product

series) to our Otonano Kenko CALPIS® Series, (which combines the delicious flavor of CALPIS® with much-needed daily nutritional components). CALPIS® health drinks provide nutritional support for the busy, modern consumer.

CALPIS® goes excellently with alcoholic beverages, and cocktails and sours made with CALPIS® often appear on bar and tavern menus. Knowing the popularity of CALPIS® cocktails, we set about to create a low-alcohol beverage which highlights the delicious CALPIS® flavor, via CALPIS SOUR®.

CALPIS SOUR®’s brisk and mellow flavor is made by using clear, refreshing vodka and charcoal filtered water.

In addition to milk-based beverages, we also offer other long-time best-selling products such as Welch’s juices, and the number one* selling hot fruit drink, Hot Lemon. The pure delicious flavor of fruit juices and the rich relaxing tone of our hot beverages help to ensure that our customers remain healthy and hydrated throughout the day, and can feel happier, in mind and body.

* According to PET bottle fruit juice shipping volume data for Sep. 2011-Mar. 2012 (internal examination).

Healthier Hydration, for Peace of Both Body and Mind

Domestic BeverageBusiness

That Something Extra—The Benefits of CALPIS® Milk-Based Beverages

Made with select ingredients,to ensure safety for infants.

Suku suku CALPIS® kids

The rich flavor and quality is a favorite with many.Welch’s Brand Fruit Juice Series

Hot and delicious, to relaxyou in body and mind.

“Hotto” Series

A Variety of Healthy and Functional Drinks to Support Busy Modern Lifestyles

A FOSHU (Foods for Specified HealthUses) product series, for customers

with blood pressure concerns.

AMEAL® S SeriesA FOSHU (Foods for

Specified Health Uses)product series,

for customers concernedabout their blood sugar levels.

KEN-CHA-OH Series

A best-selling product with afirm place on the canned

highball market.

CALPIS SOUR® Series

A product series for adultswhich combines the delicious

flavor of CALPIS® withmuch-needed daily

nutritional components.

Otonano Kenko CALPIS® Series

Sweet Mellow Relaxation with CALPIS® Alcoholic Beverages for Adults

14 155

Professional-Use

Products

DairyProducts

Business discussion at an exposition

Exposition of CALPIS® dairy products

We offer specialized professional-use products for a wide variety of uses by customers in the culinary business. These products are used in the creation of own original drinks and dishes. Additionally, we are also committed to inventing fresh new recipes uniquely tailored towards individual venues (such as casual diners, fast food restaurants, bars and taverns).

In order to share Calpis Co. news and information as widely as possible we have also established a website for culinary business professionals which introduces these professional-use products and special recipes (Japanese only).

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 milkfat produced from the highest quality fresh milk.

Our dairy products are sold via Calpis Foods Service Co., Ltd., and are available mainly through professional channels and in department stores. A preferred product of deluxe class restaurants, hotels and confectioneries, our dairy products help to create ‘the added value of flavor’ so integral to these venues.

Fresh Creations in Flavorfor Every Culinary Scene

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.

Our Institutional & Industrial Products Business exists especially to serve culinary professionals—such as food experts, restaurant outlets, confectioneries and wholesale manufacturers—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.

Institutional &IndustrialProductsBusiness Diverse Foods and Original Menus

for all Culinary Scenes

Rich Flavorful Dairy Products Crafted with Quality Ingredients and Unparalleled Technique

A variety of multi-purpose butters andfresh creams are available to help support

culinary professionals in their trade.

Professional-Use Dairy Products

16 1777

Europe(2008–)

(2006–)

(1994–)

(1991–)(1995–)

(2005–)China

Indonesia

TaiwanU.S.A

Vietnam

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 important 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 seven 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.

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

Overseas Locations

Local subsidiaries Liaison offices and laboratories

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 a CALPIS® specially suited to the area. By introducing CALPIS® products and beverages, our goal is to deliver worldwide smiles.

InternationalBeverageBusiness

Bringing Happiness and Comfort. Bringing CALPIS® to the World

18 19

AnimalFeed

Probiotics

FunctionalFoods

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. Available via mail order, these supplements provide customers with the potential to develop healthier lifestyles.

The need for safe and reliable products in the livestock industry has been growing worldwide. In order to promote the raising of healthy livestock without resort to antibiotics, we provide products such as CALSPORIN® and FINELACT® to approximately 40 countries throughout the world. These products contain effective microorganisms like hay bacilli or lactobacilli. Additionally, by providing technical support to producers throughout the world, we help to ensure that safe,

high-quality animal produce is delivered to customers’ dinner tables.

Harnessing the Powerof Microorganismsto Create New Valuefor Safer and Healthier Lifestyles

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 pursue research into lactobacilli and other effective microorganisms. The results of our research have led to the creation of many products, such as ‘functional foods,’ which help to promote personal health, or animal feed probiotics, which are used to rear high quality meat, poultry and eggs.

By exploring the immeasurable benefits of these microorganisms, we will continue to contribute to the healthy and rich dietary lifestyles of all people, as well as to the environment.

MicroorganismApplication

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

SHINAYAKA-CARE helpscustomers concerned about

their age or lifestyles to remainhealthy and physically fit.

KENSAI-SEIKATSU /SHINAYAKA-CARE

A simple everyday supplement forcustomers who wish to grow

healthier from the inside.

KENSAI-SEIKATSU /ARERU-CARE

The probiotic strain C-3102 promotes health by

controlling microbial flora.

KENSAI-SEIKATSU /BIOMINE

CALSPORIN®

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

Animal Digestive Track

Positive bacillusreduced due to stress

Increasing positivebacillus leads toimproved feed

efficiency

Lactobacillus BifidusLactobacilli

Stress CALSPORIN®

CALSPORIN®

20 21

Research and Development

Creating New Value by CombiningUnparalleled Expertisewith the Latest Scientific DevelopmentsWe pursue healthier and more delicious products through the use of scientific evidence.

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 convictions 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.

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

Since our companies founding, we have carried out research into lactobacilli-producing materials as well as the properties 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 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.

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 composition of a creature’s intestinal flora has a significant impact on their health and well-being.

Upon request, our Intestinal Flora Laboratory—part 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 support the research, development and quality certification of universities, pharmaceutical firms, food companies, and other such outside organizations.

Lactobacillus acidophilus L-92 strain

CALPIS® Starter

Intestinal Flora Laboratory

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

Pursuing diverse research focused on microorganisms, fermentation techniques 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 beverages and food.

Research andDevelopment

PlanningDepartment

Research andDevelopment

Microbiology &Fermentation

Laboratory

ProductsDevelopment

Center

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

The FoundationBehind Calpis Co., Ltd.

CALPIS® Cultured Milkand microorganismssuch as lactobacilli.

The Pursuitof Flavor

The Search for Effective

Microorganisms

The Value of Health

Development of tasty beverages and foods

Studies of flavors derived from fermentation

Biogenics LTP

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

Animal Feed ProbioticsCALSPORIN®, FINELACT®

Immunomodulatory lactobacillusLactobacillus acidophilus L-92 strain

22 23

* HACCP (Hazard Analysis and Critical Control Points): A systematic preventive approach that is established and instituted to reduce or eliminate 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.)

DevelopmentIngredients, Proportions,

Design, Packaging

IngredientsSafety Inspections, Compliancy

Quality, Preservability

ProductionFacilities, Suitability,

Standards, Compliancy

LabelingCompliancy, Classification,

Listing of Ingredients,Expiration Dates, Storing Methods,

Manufacturer's Name,Nutrional Infromation,

Warnings, etc.

PackagingSafety, Compliancy

Major Production Facilities in Japan

Cultured milk storage tank in Gunma Plant

The CALPIS® Peace Bottle filling line

Peace Bottles before labeling

Fermentation tank for the production of CALPIS®

Gunma Plant

Initiatives on Safety andReliability

Calpis Co. Follows Strict Quality Control Measures, with Safe, Reliable Products as our First PriorityOur 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 management certification 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 accuracy and so on are inspected according to a 200 point inspection list so as to ensure safety and compliancy. Only when an item passes all points can it be released as a product. Ingredients 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 further ensure quality and safety.

All manufacturing processes follow the highest standards of quality and safety.

Area: 135,960 m2

Products: CALPIS® (Peace Bottle, glass gift bottle), CALPIS WATER®, AMEAL® S, and other PET bottle beverages; Butter; CALSPORIN® stock feed probiotics; FINELACT®; etc.

Equipment: Capacities are listed in parentheses.

Concentrated beverage bottle line (500/min.)Large PET bottle line (300/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.)Concentrated 1L carton line (40/min.)Butter production lineEtc.

Est. 1972

Area: 72,037 m2

Products:CALPIS® Peace Bottle; Professional-use paper cartons; CALPIS WATER® and other PET bottle beverages; Butter; etc.

Est. 1968

Okayama Plant

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 further ensure quality and safety.

In 2008 an aseptic production line was also introduced. In addition to furthering quality and safety, the large reduction in water vapor when using the aseptic line has helped to reduce environmental burdens.

Our manufacturing division, which bears the greatest responsibility for the safety and reliability of CALPIS® products, has been earning the trust of our customers for over 90 years. Each individual product they create is carefully produced with pride in and love for their work.

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Impr

oved

Labeling in Response to Customer Feedback

C o m m u n i c a t i o n

In order to continue providing goods and services which satisfy customers, we aim to incorporate the opinions and suggestions received from our customer relations department 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 departments. When complaints, requests, opinions related to marketing and so on are received, a Request for Improvement is sent to the relevant department. 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 Meetings, 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 products were created to ensure healthy minds and bodies. The mission of our salespeople is to create an environment where more customers can purchase our products, whenever and wherever those customers are found. In addition to explaining the special appeal and value of CALPIS® products, it is important to us that we create enticing sales points which delight our customers with every purchase.

For example, we offer fun spaces such as the CALPIS® station, where children can experience the joy of making and drinking their own CALPIS®. We also create sales promotions uniquely fitted to the season and to individual sales channels. These include seasonally themed sales points, or creative dining-out menus which make use of CALPIS®’s versatility.

In addition to company and product information, our company website is also full of fun original content which can be enjoyed by all ages. Online information tools such as customer submissions or Facebook not only serve to familiarize the public with CALPIS®, they also allow us to establish fully interactive, two-way communication streets between the company and our customers.

We also offer a mobile site, Mizutama Club (The Polka Dot Club), specially designed for cell phone users. Members can take fun quizzes, have the chance to receive free gifts, and much more.

Calpis Co. plans to continue developing fun useful web content which provides fresh and exciting company news.

Mass media advertisements such as television commercials are an important tool in introducing our products and brand appeal. Our advertisements are based on the fresh, invigorating message of our company slogan, “Karada ni Peace Calpis.”

Our advertising goal is not simply to explain the merits of our products, but also to share in our customers’ lives. Marketing is yet another way in which we aim to bring smiles to people’s faces.

CALPIS® StationIn-store events let children experience the fun of making and drinking CALPIS®.

We also offer simple homemade recipes using CALPIS®, such as pancakes or jelly desserts.

Allergy warnings were changed to a diagram so as to be

easier to understand.

Employee offering samples during Tanabata (Star Festival)

Rena Nounen(actress and model, CALPIS

WATER® commercial)

Masami Nagasawa (actress, CALPIS® commercial)“The CALPIS SODA®

Academy Astrology Club” (CALPIS SODA® advertisements)

Inside the company website: the “CALPIS® museum”

Mobile site homepage

Note: Packaging may differ according to product.

Communication

Customer Satisfaction Comes First, which Means Communication is EssentialCreating fun and enticing sales points to delight our customers.

Shared information and feedback allow us to incorporate customer opinions.

Our interactive customer website is both fun and useful.

With “Karada ni Peace Calpis” as our keyword, we forge new bonds of communication with our customers.

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Environmental Contributions

As a company providing goods and services which rely on the Earth’s important resources, we at Calpis Co. are thankful for the blessings nature has given us. As a corporate citizen, we are committed to effective environmental management.

In order to decrease the environmental burden at all stages of operations, from product and package development to production and sales, we have acquired ISO 14001 international environmental management certification, and continually pursue company-wide improvements.

For instance, we have reduced our environmental burden via product development by decreasing the weight of packaging and containers (as with the shrink label of the new packaging for CALPIS WATER®) and through the use of biomass materials* (as with the new Peace Bottle container). During production, CO2 emissions have been reduced for all factories through the use of low burden natural gas in place of crude oils. We also recycle 100% of our waste materials, and are working to reuse slurry produced during water treatment as an effective natural fertilizer.

Employees’ suggestions are the inspiration behind many of our environmental activities.

One of the unique features of environmental activity at Calpis Co. is that it involves all of our employees. Employees from all departments help to develop a wide range of environmental initiatives.

For instance, in order to promote communication and environmental awareness, factory members create their own biotopes*.

These biotopes are home to endangered black killifish, which are raised and then gifted to nearby schools.

Additionally, at home and branch offices in Japan and abroad, Calpis Co. engages in initiatives

such as summertime sprinkling (to lower temperatures, control dust, etc.), or local cleaning and beautification projects.

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 (Girl’s Day) 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 Girl’s Day.

Currently, invitations are sent to kindergartens and nursery schools throughout the country. Participating schools are then sent presents of CALPIS®, for toasting the holiday, and miniature picture books. Over 3 million children now celebrate the festival with CALPIS® every year.

Lactobacilli School, a nutritional education program geared towards higher grade elementary school students, was started in 2009 as a method of social contribution capitalizing on our unique products and technologies. Employees visit local schools near our offices and factories as guest instructors, where they hold hands-on workshops centered on the theme of lactobacilli and fermentation. Children get to see, smell and taste firsthand, as they learn the important role living organisms play in supporting their everyday foods and diets.

CALPIS® Picture Books, produced in cooperation with external publishers, have been available since 1982. Every year, we also contribute to “Ehon World (picture book world)” an event held by the Association for the Promotion of Child Reading. Our goal is to help nurture the healthy imaginations

of our children by promoting the love of picture books and reading.

Since 2007 we have also been holding reading events during the Japanese festivals of Hina Matsuri and Tanabata. During these festival seasons, our employees visit kindergartens and nursery schools where they read picture books, perform magic, dance, and hold other fun activities which leave lasting positive impressions on the students.

Biotope (Gunma Plant)

‘Green Curtain’(Okayama Plant)

CALPIS® and mini picture bookfor Girl’s Day, 2012

The CALPIS®Picture Books series

Reading event

* Biomass materials: The efficient use of biotic resources and renewable organic/plant matter as raw materials.

* Biotope: A space in which wild organisms, such as plants, fish or insects, cohabitate and thrive. A man-made space may also be called a biotope.

CSR Activities

As a Corporate Citizen, Our Mission is to Do All We Can, for the Global Environment and for Local Communities

We engage in environmental action, and give thanks for the blessings of nature.

Social Contributions

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

“Lactobacilli School,” a hands-on nutritional workshop, helps to teach children the importance of healthy eating.

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

CALPIS® Hina Matsuri Gift ProgramCelebrating Hina Matsuri with local school children

Lactobacilli SchoolGroups of 5-6 students are paired with their own guest teacher

The New CALPIS® Container:Peace Bottle

Because the cap, label and bottle are all made from the same material (plastic), they do not need to be sorted before recycling.

Created with biopolyethylene (6-12%) produced from vegetable materials, for reduced CO2 emissions.

SoSo

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Company Profile

NameHeadquartersPostal codePhoneEstablishedCapital stockNumber of employeesNet sales

Stockholder

Calpis Co., Ltd.2-4-1, Ebisu-minami, Shibuya-ku, Tokyo, Japan150-0022+81-3-5721-3111October 13, 1917¥13.056 billion797 (as of March 31, 2012)¥107.4 billion (FY 2011)¥6.1 billion (Income before Extraordinary Profit)Asahi Group Holdings, Ltd.

Headquarters

Executives (as of October 1, 2012)

Performance Trends (consolidated managerial basis inc. profits for overseas bodies)

Calpis Co., Ltd.

DirectorsFujio Yamada

Hideki Obata

Minoru Yamasaki

Yukio Itagaki

Takahiro Nitanda

Shiro Kikuchi

Shiro Ikeda

President and Representative Director

Director

Director

Director

Director

Outside Director

Outside Director

OfficersFujio Yamada

Hideki Obata

Minoru Yamasaki

Yukio Itagaki

Makoto Utena

Katsuhiko Kishigami

Shunsuke Fuji

Takeshi Ichiki

Youichi Marunaga

Chief Executive Officer

Executive Officer

Executive Officer

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Senior Officer

Takahiro Nitanda

Yoshio Saito

Komei Arai

Takashi Hirahara

Shoichi Hosojima

Kiichi Matsumoto

Jyun Kuranari

Officer

Officer

Officer

Officer

Officer

Officer

Officer

Statutory AuditorsSatoru Ikeda

Noriyuki Nakanishi

Yoshihiro Tonozuka

Standing Statutory Auditor

Standing Statutory Auditor

Statutory Auditor

80

60

40

20

0

1,200

900

600

300

02008 2009 2010 2011

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

(Year)

* The graph is based on combined management and includes overseas operation sales.

Overseas Operations

Organization (as of October 1, 2012)

Headquarters

CALPIS U.S.A., INC.19191 S.Vermont Ave., #875,Torrance, CA 90502, U.S.A.Phone: +1-310-324-5900

U.S.A.

TAIWAN CALPIS CO.,LTD.3F., No.125, Sung Chiang Road, Zip10485, Taipei, Taiwan, R.O.CPhone: +886-2-2517-2194

Taiwan

P.T. CALPIS INDONESIAEjip Industrial Park, Plot 7C Cikarang Selatan, Bekasi 17550, IndonesiaPhone: +62-21-897-0240

Calpis Foods Service Co., 3F Daikanyama CA Building, 2-20-3, Ebisu-nishi, Shibuya-ku, Tokyo, Japan 150-0021

• Dairy Product Sales

Asahi Calpis Beverages Co., Ltd.1-23-1 Azumabashi, Sumida-Ku, Tokyo 130-8602

Phone: +81-3-3780-2280URL http://www.calpis-cfs.co.jp

Phone: +81-3-5619-5670• Beverage Sales (Vending Machine Business)

• Internal Auditing Office• Corporate Planning Department• Financial Department• Human Resources & General Affairs Department• CSR & Public Communications Department• Customer Service Department• Advertising Department• Sales Administration & Coordination Department• Concentrate Beverage & Gift Marketing Division• Ready-to-Drink Beverage Marketing Division• Direct Marketing Division

Sales Branches

• National Account Sales Department(at Headquarters)

• Sapporo Branch• Sendai Branch

Kita-Tohoku Regional Branch• Tokyo Branch• Kanto Branch

Niigata Regional BranchNagano Regional Branch

Research & Development

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

Plants

• Okayama Plant• Gunma Plant

• Nagoya BranchShizuoka Regional BranchKanazawa Regional Branch

• Osaka Branch• Chugoku and Shikoku Branch

Takamatsu Regional BranchOkayama Regional Branch

• Fukuoka BranchKagoshima Regional Branch

• Institutional & Industrial Products Division• Dairy Products Division• International Beverage Division• Feed Division• Production Technology Center• Production and Logistics Department• Materials Purchasing Department• Quality Assurance & Environment Department

Indonesia

CALPIS CO., LTD. SHANGHAI REPRESENTATIVE OFFICERoom 2310-11, 317 XianXia Road, Changning District, Shanghai City, China 200051Phone: +86-21-6275-6922

China

CALPIS CO., LTD. HO CHI MINH CITYREPRESENTATIVE OFFICE9th Floor, Itaxa House, 122-124-126 Nguyen Thi Minh Khai Street, District 3, Ho Chi Minh City, VietnamPhone: +84-8-3930-8485

Vietnam

CALPIS CO., LTD.EUROPE REPRESENTATIVE OFFICE46, rue Paul Valéry 75016 Paris CEDEX 16, FrancePhone: +33-1-44-29-27-67

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

Europe

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