24-D-0578

July 31, 2024

JCR conducted evaluation of conformity of the bonds
issued by Meiji Holdings Co., Ltd. to the sustainability
finance framework
Japan Credit Rating Agency, Ltd. (JCR) has submitted a second-party opinion on conformity of the bonds issued by
Meiji Holdings Co., Ltd. to its sustainability finance framework.

*Please refer to the following pages for the details of the written opinion.

Disclaimer:
The information contained in this document has been obtained by JCR from the Issuer and from accurate and reliable sources;
provided, however, that such information may be erroneous due to human, mechanical or other reasons. Accordingly, JCR makes
no representation or warranty, express or implied, as to the accuracy, results, timeliness, completeness, marketability, or fitness
for a particular purpose of such information, and JCR assumes no responsibility for any error, omission, or result of using suchinformation. JCR’s sustainable finance evaluation does not express any opinion on various risks (credit risk, price fluctuation
risk, market liquidity risk, etc.) related to the sustainable finance subject to the evaluation. This evaluation is different from its
credit rating and does not promise to provide or make publicly available a predetermined credit rating. There are no capital or
human relationships that could cause conflicts of interest between the subject party and JCR. All rights to this document,
including data from JCR’s sustainable finance evaluation, are reserved by JCR. Any reproduction, translation, modification, etc.
without the permission of JCR is prohibited, regardless of the part or all of this document, including data from JCR’s sustainablefinance evaluation.

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Copyright © Japan Credit Rating Agency, Ltd. All Rights Reserved.

Second Party Opinion
Evaluation Target: Alignment of Bonds Issued by Meiji Holdings Co., Ltd. with the Sustainability
Finance Framework (Review after the Issuance)

July 31, 2024
Japan Credit Rating Agency, Ltd.

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Table of Contents
I.

Positioning and Objectives of this Second Party Opinion.......................................................................... - 3 -II. Items to be Confirmed in this Opinion ........................................................................................................ - 3 III.

List of this Evaluation Target ................................................................................................................... - 3 -IV.

Verification of Alignment with this Framework ..................................................................................... - 4 -1. Use of Proceeds ............................................................................................................................................... - 4 2. Selection Criteria and Processes of Use of Proceeds....................................................................................... - 6 3. Management of Proceeds................................................................................................................................. - 6 4. Reporting ......................................................................................................................................................... - 8 V.

Conclusion .................................................................................................................................................... - 12 -

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I.

Positioning and Objectives of this Second Party Opinion

In January 2021, JCR has evaluated the Sustainability Finance Framework (hereinafter referred to as "thisFramework") formulated by Meiji Holdings Co., Ltd. (hereinafter referred to as "Meiji HD" or "the Company") andconsequently has assigned SU 1 (F). This Opinion has intended to confirm whether the Bonds issued by Meiji HD(hereinafter referred to as "this evaluation target") have been assigned with this Framework established by theCompany beforehand.

II. Items to be Confirmed in this Opinion
The items that should be confirmed in this Opinion are as described below. The use and reporting of the proceeds
financed through this evaluation target will be thoroughly confirmed.
1. Use of Proceeds
JCR will confirm whether the project for which the proceeds of this evaluation target will be used has beenaligned with the eligibility criteria defined in the Framework. JCR will also confirm the negative impacts that
may wield on the environment and society by the project for which the proceeds will be used.
2. Selection Criteria and Processes of Use of Proceeds
JCR will confirm that the process to issue this evaluation target has been as prescribed in this Framework.
3. Management of Proceeds
JCR will confirm whether the proceeds raised through the evaluation target have been allocated to the project
for which the proceeds will be used in accordance with the plan stipulated in this Framework and whether theproceeds have been properly tracked and managed in line with this Framework.
4. Reporting
JCR will confirm whether the allocation of proceeds and impact reporting details for this evaluation target
have been in line with this Framework and whether the contents have been adequately disclosed (whether it isclearly planned to be disclosed).

III. List of this Evaluation Target
This evaluation target refers to the bonds issued on April 23, 2021 in the table below, based on the pre-establishedSustainability Finance Framework by Meiji HD.
Evaluation Target
10th Series of Unsecured Corporate
Bonds (Sustainability Bonds)

Issue
AmountJPY 10billion-3-

Issue Date

Redemption Date

Coupon Rate

April 23, 2021

April 23, 2026

0.050%

IV. Verification of Alignment with this Framework
1. Use of Proceeds
The use of proceeds subject to this evaluation target is as shown in the table below. JCR has confirmed that all the
projects for which the proceeds will be used have been in accordance with the eligibility criteria.
JCR has confirmed through interviews with Meiji HD that it has added the target project to the proceeds after
carefully examining negative impacts that may exercise on the environment and society of the projects for which
the proceeds will be used and determining there is no adverse impacts.
Accordingly, JCR has evaluated that the use of proceeds subject to this assessment has been aligned with thisFramework.

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<Summary of Use of Proceeds (List of Assets Acquired) >■Use of proceeds for the 10th series of unsecured corporate bonds (Sustainability Bonds)
Theme

Applicable Project

Project Category

Use of Proceeds

Sustainable

Meiji Sustainable Cocoa

Green

Procurement of Meiji Sustainable

Procurement

Bean procurement

Sustainable environmental

Cocoa Beansmanagement of biologicalnatural resources and land
use
Caring forEnergy efficiency andGreen

Solar panels at its own plants

the Earthenergy creation at

Renewable energy

domestic and overseas

Green

Measures toward CFC-freeplantsPollution prevention and(Installation of energy-saving andmanagement

CFC-free refrigerators andfreezers)

Securing andGreenImprove water quality by installingconserving domestic

Sustainable water resource

RO membrane systems

and overseas water

and wastewater

resources

management

Switching to

GreenProcurement of bioplastics straws

environmentally friendly

Prevent pollution(e.g. straws used for Zavas -packaging (plastic-(creating a circular society)Protein drink)

paper)
Healthier

Capital investments andSocialDeveloping and manufacturing

Lives

R&D for initiatives- Access to necessary

cube-type infant formula, a highly

related to infant nutrition

services (health)convenient product that helps(General infant formulas- Food safety

reduce labor for working parents

and special formulas)raising infants

R&D and capitalSocialContributing to healthier lives byinvestments in infectious

Access to necessary

developing and manufacturing

disease prevention

services (health)vaccines and pharmaceuticals in
response to concerns of new andrecurring infectious disease
epidemics attributable to global
warming and other environmental
changes.

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2. Selection Criteria and Processes of Use of Proceeds
JCR has confirmed through interviews with Meiji HD that the process conducted in issuing this target evaluation
has been aligned with this Framework.
The goals/criteria and processes have been explained to investors in advance by disclosing the framework upon
issuance of the bonds on the Company's website.
Accordingly, JCR has evaluated that the processes for the bonds have been aligned with this Framework.

3. Management of Proceeds
The allocation of proceeds for this evaluation target is as shown in the table below. JCR has evaluated that Meiji
HD allocated all of the JPY 10 billion it had financed by FY 2022 to eligible projects in its alignment evaluation(23-D-0392) conducted last year. JCR has also confirmed through interviews with the Company that there havebeen no change to the projects to which the proceeds are to be allocated since the evaluation made in the previous
fiscal year.
Similarly, JCR has confirmed that this evaluation target was tracked and managed in a manner stipulated in thisFramework in the alignment evaluation carried out last year.
Consequently, JCR has evaluated that the proceed management structure of this evaluation target has been alignedwith this Framework.

-6-■10th Series of Unsecured Corporate Bonds: Allocation of Proceed
Allocations
Theme

Applicable Project

Use of Proceeds

Sustainable

Meiji Sustainable Cocoa

Procurement of Meiji

Procurement

Bean procurement

Sustainable Cocoa Beans（JPY 100 million）
FY 2021

FY 2022

Total

14.7

14.2

28.9

1.3

5.8

7.1

2.3

4.0

6.3

7.5

0.7

8.2

4.3

4.6

8.9

22.9

27.2

50.1

4.3

0.3

4.6

57.3

56.8

114.1

Installing solar panels at its
own plants, measures toEnergy efficiency and energy
creation at domestic andoverseas plants

Expense for measures
toward CFC-free, including
expenses to switch tonatural refrigerant, CFC

Caring for theEarth

reduce CO2

substitutes)
Securing and conserving
domestic and overseas
water resources
Switching to environmentallyfriendly packaging (plasticpaper)

Installing RO membrane
systems
Costs of purchasing
bioplastics straws (e.g.
straws used for SAVAS Protein drink)

Capital investments and
R&D for initiatives related toinfant nutrition (General
HealthierLives

infant formulas and special

Investment in manufacturing
facilities at Saitama Plant

formulas)R&D and capital investments
in infectious disease
prevention

Development of vaccine for
Dengue virus

Grand total* Of the total allocations, JPY 10 billion was allocated to the proceeds related to this evaluation target.

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4. Reportinga. Reporting on the proceeds allocation

Meiji HD will disclose the following items as the appropriation of proceeds for this evaluation target on its website.
・Outline of the project subject to the use of proceeds
・Amount allocatedAs stated earlier, the proceeds were fully allocated and the results have been disclosed on the Company's website.
JCR has evaluated that the above-cited disclosure items have been aligned with the contents mentioned in thisFramework.
b. Reporting on Environmental and Social Benefits

Meiji HD will disclose the following items as impact reporting on its website.
As same as the appropriation of proceeds, the results for FY 2021 and FY 2022 have been already disclosed on the
Company's website and the performance results for FY 2023 in addition to these results will be disclosed.
The target was increased to 30% or more by FY 2030 compared to FY 2017 from the previous goal, 25% by FY 2030
relative to FY 2017 for plastic usage of one-way plastic containers and packaging, an indicator of the eligible project,"Switching to environmentally friendly packaging (plastic - paper)" as the plastic consumption has been reduced ata faster pace than the previous goal.

JCR has evaluated the disclosures aforesaid have been aligned with the details contained in this Framework.

-8-■10th Series of Unsecured Corporate Bonds: Impact Reporting
Impact Reporting

Applicable
Project

OutputOutcome

FY 2021

FY 2022

FY 2023

ImpactProcurementof Meiji
Meiji
Sustainable
Cocoa Bean
procurement

Procurement

Sustainableof cocoa beans

Cocoa Beans

with

as a

sustainable

percentage ofprograms

total cocoa- Improvement inproducer
42%

62%

62%

livelihoods- Ensure foodquality and safety
for consumers

beans
procured
Reduce CO2
Reduce CO2
emissions byat least 50%
compared with
FY 2019 by FY
2030

emissionsthrough
energyconservation
measures at

3,709t-7,625t-1,329t-

CO2

CO2

CO2

(FY 2021-(FY 2021-

2022)

2023)

2,358t-3,014t-1,669t-

CO2

CO2

CO2

(FY 2021-(FY 2021-

2022)

2023)

565 unit

717 unit*(FY 2021-(FY 2021-

2022)

2023)

new andexisting
plantsEnergyExpand use of

efficiency

electricity

and energy

derived fromcreation at

renewable

domestic andenergyoverseassources to atplantsleast 50% by

Reduce CO2
emissionsthrough solar
power
generation

FY 2030
Eliminate useof specified
fluorocarbons
at domestic
production
sites by
FY2030.

Number of
facilities
switched tonaturalrefrigerants

446 unitor
fluorocarbons
alternatives-9--Reduce CO2
emissions-Protect theozone layer

Impact Reporting

Applicable
Project

OutputOutcome

FY 2021

FY 2022

FY 2023

ImpactUpgradeReductionequipment at

rate of water

existing plants

consumption

and offices(basic unit)

Introduce*Reducewater-saving

waterequipment at

consumption

ReduceSecuring andnew plants,

comparedenvironmental

conservingetc.

with FY2020

8.4%

domestic and(From(compared

overseas

FY2022)

with FY2017)

impact through
13.3%

15.7%

efficient use ofwater andwater

Reduce water(Unit of sales

appropriate

resources

consumption

after applying

wastewaterby at least15%

themanagement, etc.

compared withAccounting

FY2020 by

Standard for

FY2030

Revenue

globally

Recognitionand otherstandards)

Reduce plastic
Switching toenvironmenta
lly friendly
packaging(plasticpaper)

used for oneway plastic
containers andpackaging by
at least 30%

Solve the issues
Plastic

13%

16%

18.3%

reduction(FY 2020)(FY 2021)(FY 2022)

of marine
pollution causedby plastic wastecompared with
FY 2017 by FY
2030- 10 -

Impact Reporting

Applicable
Project

OutputOutcome

FY 2021

FY 2022

FY 2023

ImpactCapitalInvestment ininvestments

production

and R&D for

facilities for

initiatives

cube-type- Achieve healthy

related to

Develop andinfant formula

growth of infants

infantproduce cube-

High-speed

and toddlers

nutrition

type infantline(Generalformulaproduction

infantfacility

formulas andconstruction

specialUtilities

formulas)construction

JPY 1,300

JPY 2,360

JPY 850

M

M

M*

JPY 990
M

JPY 360 M- Reducechildcare burden
on caregivers

JPY 260
M*- Decrease thenumber ofpatients suffering

R&D andfrom infectious

capitalinvestments

Product

in infectious

development

diseaseStatus ofprojects indevelopment

DuringPhaseⅡ

PhaseⅡ

diseases

Phase I

clinical trial

clinical trial- Support

trialsinin(overseas)

prevention

domestic medical

preparation preparation systems- Prevent severe
disease throughthe impact ofvaccines*It is a reference value as the proceeds were already appropriated by FY 2022.

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V. Conclusion
From the foregoing insight, JCR has confirmed that this evaluation target has been aligned with respective elementsof this Framework.
(Responsible analysts for this evaluation) Atsuko Kajiwara, Tomohiko Inamura- 12 -

Important Explanation of this Second Party Opinion
1. Assumptions, Significance and Limitations of Second Party Opinion Provided by JCR
The Second Party Opinion assigned and provided by Japan Credit Rating Agency, Ltd. (hereinafter referred to as "JCR") represents acomprehensive statement of the JCR's current opinions on whether the evaluation target has been aligned with the Sustainability
Finance Framework formulated by the issuer, and it therefore does not express environmental and social benefits to be brought about
by the said evaluation target.
This Second Party Opinion is to evaluate the plans or circumstance at present based on information provided by the client andindependently collected by JCR and does not guarantee the evaluation on circumstances in the future. This Second Party Opinion
does not quantitatively demonstrate environmental and social benefits through the Sustainability Bonds, and JCR assumes noresponsibility for its effects. JCR will confirm that the issuer or the third party requested by the issuer has quantitatively andqualitatively measured the effect exerted on the environment and society by the proceeds financed through the issuance of the
Sustainability Bonds; however, JCR, in principle, does not directly measure it.
2. International Initiatives or Principles Referred in Conducting this Evaluation
JCR has JCR referred to the following principles and guidelines developed by ICMA, LMA, APLMA, LSTA, Ministry of theEnvironment and Financial Services Agency in carrying out this evaluation.
・Green Bond Principles (2021)
・Social Bond Principles (2023)
・Sustainability Bonds Guidelines (2021)
・Green Bond Guidelines (2022)
・Social Bond Guidelines (2021)
3. Relations with Conduct on Credit Rating BusinessThis Second Party Opinion is provided by JCR as its related business and differs from any conduct of its credit rating business.
4. Relations with Credit Ratings
This Evaluation differs from credit rating and is not committed to providing a predetermined credit rating or making available forinspection.
5. Impartiality of JCR
There is neither capital nor personal relations that cause conflicts of interest between this evaluation target and JCR.

■Disclaimers

The information contained in this document was obtained by JCR from the issuer and accurate and reliable sources; however, such information may be mistaken for human,mechanical errors or other reasons. JCR therefore makes no representation or warranty, whether express or implied, as to the accuracy, result, appropriateness, timeliness,completeness, marketability or alignment for any particular purpose of such information and assumes no responsibility for any errors, omissions or consequences of using
such information. JCR shall not be liable for any loss of opportunity and extraordinary, indirect, incidental or consequential damages of any kind, including any loss ofmoney, which may result from any use of such information under any circumstances, whether contractual liability, tort liability, negligence or other causes of liability, andwhether or not such damages are foreseeable or unforeseeable. This Second Party Opinion does not express any opinion on various risks, such as credit risks, price volatility
risks or market liquidity risks on the Sustainability Bonds that are subject to evaluation. This Second Party Opinion is an overall opinion of JCR at this time and is not a
representation of facts and does not constitute any kind recommendation with respect to risk assessments or decisions to purchase, sell or hold individual bonds, commercial
papers or other instruments. This Second Party Opinion may be changed, suspended or withdrawn due to changes in information, a lack of information or other reasons.
All rights to this document are reserved by JCR; therefore, it is prohibited to duplicate, translate or alter this Second Party Opinion, whether in whole or in part, without
permission from JCR.

■Glossary

Second Party Opinion: This report has provided a second opinion for the alignment of the Sustainability Bonds issued by the issuer with the Sustainability Finance
Framework formulated by the issuer from the independent, neutral and impartial standpoint in response to a request from the client.

■Status of Registration as an External Evaluator of Sustainable Finance・United Nations Environment Programme, Financial Initiative, Positive Impact Working Group Members
・Registered as an external reviewer of Green Bonds by Ministry of the Environment
・Climate Bonds Initiative Approved Verifier・ICMA (registered as an observer to the International Capital Markets Association), Social Bond Principles, Climate Transition Finance Working Group Members■Status of Registration as a Credit Rating Agency
・Credit Rating Agency: FSA Commissioner (Rating) No.1
・EU Certified Credit Rating Agency
・NRSRO: JCR has been registered in the following four of the five credit rating classes of NRSRO (Nationally Recognized Statistical Rating Organizations) defined by
the U.S. Securities and Exchange Commission: (1) Financial institutions, brokers and dealers; (2) Insurance companies; (3) Corporate issuers; and (4) Issuers ofgovernment securities, municipal securities and foreign government securities. In cases where any information is required to be disclosed under Rule 17g-7(a) of the U.S.
Securities and Exchange Commission, such disclosure will be attached to the news release posted on JCR's website at http://www.jcr.co.jp/en/.

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