Environmental Management System Integrating company-wide environmental activities based on ISO14001 standards 　 By FY2002, Takara Shuzo had completed ISO14001 certification for all its domestic workplaces: headquarters (including group companies), 10 branches, and 6 factories. We had earlier pursued environmental activities on a per-location basis, but as of FY2004, we began integrating the environmental activities off all workplaces. Takara Shuzo is promoting activities with new environmental targets set so the company can work together as a whole.

Takara Group Environmental Management System Organization 　After the integration, the ISO Environmental Main Division, which bears the role of control tower for the entire system, leads the development of environmental activities. The Company-Wide ISO Environmental Management Committee, composed of the environmental managers from each site, undertakes concrete activities. Establishing the Takara Group Environmental Policy Our environmental policy was revised when ISO was integrated throughout the company.

Takara Group Environmental Policy 1. Takara Shuzo Corporate Philosophy Through our fermentation technology and biotechnology, we will contribute to healthy lifestyles and the creation of an active society in harmony with nature. Based on this fundamental philosophy, the Takara group will work toward preserving the environment and contribute to the creation of a rich society. 2. Basic Policy The Takara Group’s business activities are diversified to include promotion of group strategies, such as Takara Group-wide distribution of resources; IR activities; and the general business of alcohol, food, and spirits with the marketing surveys, human resources, IT development, and other activities that support the above. To fully grasp the impact on the environment of these activities and to contribute to the preservation of the global environment, we base our activities on the following fundamental policies. 1) Make the balance between environmental conservation and normal business activities a key management issue. 2) Create an environmental management system for pollution prevention and continual improvement of environmental conservation efforts. 3) Observe the laws relating to the environment and other important items agreed upon by the organization. 4) Promise that we will improve our environmental performance by performing precise environmental impact assessments for all corporate activities, establishing and executing targets and goals set within technological and economical limits, and reviewing these periodically. 5) Within the business activities carried out by the Takara Group, the following are given priority and promoted as environmental preservation activities: 　a) Treat natural resources with respect and work toward resource and energy conservation. 　b) Work to develop environmentally considerate products. 　c) Work toward green purchasing. 　d) Work toward communication with society by disclosing environmental activities and environmental performance data. 6) All members of the Takara Group will be notified of this environmental policy through educational activities and all employees will be encouraged to participate in social contribution activities. We make this environmental policy open to the general public. April 1, 2004 Hisashi Omiya President, Takara Holdings Co., Ltd. President, Takara Shuzo Co. Ltd.

Note: The members of the Takara Group for ISO14001 are Takara Holdings Co., Ltd, Takara Shuzo Co. Ltd., Total Management Business, Co. Ltd., and Takara Network System Co., Ltd. Compliance with relevant environmental laws To prevent environmental pollution, Takara Shuzo implements environmental management that is not only observant of the laws, but that goes a step further with independent standards and guidelines. Effectively using the company-wide program that enabled the acquisition of ISO14001 certification, we perform periodic reviews and verify compliance with laws. Takara was not in violation of any environmental laws during FY2003. Major Environmental Laws: 　Pollution Laws (Air, Water, Noise, Vibration, Soil contamination, Noxious odors), Waste Processing Laws, Chemical Product management Laws (PRTR Law, Poisons and Toxins Control Law), Recycling Laws (Container and Packaging Recycle Law, Foodstuffs Recycling Law, Resource Recycle Law), Laws concerning disasters and hazards, etc.

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