Sunstar
Group Report
2022

January - December 2021

For healthy and fulfilling lives,
attuned to changing lifestyles
Sunstar Group Representative

Yoshihiro Kaneda
In 2021, people’s lifestyles and work styles continued to change dramatically, and are still

Management
Messageconstantly changing, affected by COVID-19 and the drift of world affairs. In this context, we
reaffirmed the purpose of Sunstar, that is, to remain in step with people around the world,
providing products and services that help solve health- and lifestyle-related social issues.
Sunstar is a corporate group with a wide range of consumer and industrial business areas.
Leveraging this unique strength, our aim is to provide products and services that meet theneeds of our customers’ new lifestyles. To this end, while closely monitoring technologicaladvances and changing social circumstances, we will contribute to the greater happiness ofpeople around the world through our business by developing new business areas by means ofvalue creation that is unique to Sunstar, mutually leveraging the strengths of our twobusinesses.
In addition, working as a unified group, we promote sustainability activities to contribute to thesustainable health of not only people, but also of the planet.
In recent years, society has been increasingly focusing on how companies are addressing
environmental, social, and corporate governance (ESG) issues. In the future, we anticipate thatthese ESG initiatives will be an important consideration for consumers when selecting products
and services. In 2021, the Sunstar Group disclosed information on its sustainability activities
and engaged in more substantial activities as part of its corporate activities. Specifically, in
addition to the priority theme of “Environment,” we will strengthen our response to “Risk andCompliance,” improve employee happiness in “Human Resources,” and continue to place
importance on “Partnership” to build good relationships with all stakeholders.
The Sunstar Group will continue to contribute to the healthy and fulfilling lives of people aroundthe world, as well as to their bright smiles and happiness, through innovation and global
teamwork that integrate the strengths of our diverse businesses.

SUNSTAR Group Report 2022 I 01

Sunstar Group News 2021
New mouthwash factory starts operations in Yamanashi, Japan
Production capacity tripled to meet market expansion in Japan and Asia
Next to the Sunstar Engineering Inc. Yamanashi factory, which produces adhesives andsealants, a new Sunstar Inc. factory was constructed and began operations in 2021,
producing mouthwash. Together with the Takatsuki factory, our aim is to triple our
production capacity for mouthwash in Japan and expand our business in the Japaneseand Asian markets. The new factory is capable of integrated production, from bottle
molding to filling and packaging, and can accommodate a wide variety of bottles, fromsmall to large volumes. In addition to being able to respond quickly to diverse needs,
progress has also been made in robotizing material transfers. The new factory also
features 864 rooftop solar panels as well as high-efficiency air conditioning throughout.
With the aim of further contributing to the community, we will also set up factory tour
courses allowing members of the local community, ranging from elementary school
children to senior citizens, as well as dentists and dental hygienists to visit the factory,
and we will hold seminars on overall health starting from oral care.

SUNSTAR
SUNSTAR
Group
GroupReport
Report2020
2022 I 02

Sunstar Group News 2021

Sunstar Communication Park
receives two prestigious awards for adapting to new work styles
Sunstar’s new office building in Takatsuki, Osaka received the National New Office Promotion Award and the Kinki New Office Promotion Award at
the 34th Nikkei New Office Award * 1 in 2021. Accolades included, “The office, which realizes a new way of working surrounded by natural light, isa manifestation of the corporate mindset of creating innovation based on communication and wellness.” The building is also a recipient of a Good
Design Award 2021. * 2 It was recognized that, “It is a good example of a comfortable office creating a healthy society. It is wonderful that it is open
to the community and considers the landscape.” The office incorporates a hot desking system and is designed to accommodate new work styles
such as flextime and telework, to improve employee comfort in the work environment, promote communication and enable creative and efficientwork. Consideration has also been given to reducing environmental impacts and better responding to disasters. In the future, the cafe space andgreen space will be open to the public, aiming to enhance co-creation through interaction with local people.
* As a preventive measure against COVID-19, public access to spaces has been postponed.
* 1. Nikkei New Office Award: Awards for offices with originality and ingenuity, sponsored by Nikkei Inc. and the New Office Promotion Association for the purpose of promoting the creation of comfortableand functional offices.
* 2. Good Design Award: One of the world’s largest and more established design awards, with the aim of discovering and publicizing designs from various fields around us which enhance the development ofindustry and the quality of life.

SUNSTAR Group Report 2022 I 03

Sunstar Group News 2021

Sunstar products
receive various awards worldwide
Sunstar products were again selected for various awards this year. In France, GUM BIO, a
toothpaste sold in Europe which is made with 99% naturally derived ingredients, won the
Les Victoires de la Beauté Bio category. In the United States, the GUM Technique Deep
Clean (Soft) toothbrush was among seven toothbrushes selected by dental professionals.
And in Japan, the Ora 2 Me Toothbrush Miracle Catch won first place in the product testingmagazine MONOQLO’s Best Buy of the Year, and GUM Mouth/Throat Disinfectant Sprayand GUM Dental Rinse won the “Best Buy of the Year 2021 - I Can Remove My Mask with
Confidence” award from women’s product testing magazine LDK.
Pure-ria, designed to care for your skin while cleansing your hands, came third in the Hand
Care category of the LIPS Best Cosme New Products Award for the first half of 2021, andOra 2 Me Aroma Flavor Collection Paste came third in the Oral Care category in the same
awards for the second half of 2021. VO5 Hairspray Extra Hard Unscented was awarded
third place in the Hair Styling category at the Cosme Repo 2021 Best Cosmetics Award.

GUM BIO

GUM TechniquePure-ria

Ora 2 MeGUM Mouth/Throat Disinfectant Sprayand GUM Dental Rinse

VO5 Hairspray

Sunstar conducts world’s largest oral healthand general well-being awareness survey across fifteen countries
Sunstar surveyed about 15,000 men and women across 15 countries in the world’s largest awareness survey on oral hygine, well-being and air quality. We
published the results in the 2021 Global Healthy Thinking Report. Distinctive regional differences were observed in values, understanding oral carebehaviors, including prevention of bad breath, teeth whitening, and overall health. The results were used for country-specific marketing of oral careproducts.

SUNSTAR Group Report 2022 I 04

Group Business Performance 2021
In FY2021, despite the prolonged impact of COVID-19, sales recovered thanks to a market turnaround attributable to the easing of restrictions and the promotion of e-commerce. Compared to the previous year, sales grew in
the Americas, Europe, and Asia, translating to growth in overall global sales from 1,123 million Swiss francs (CHF) to CHF 1,159 million, an increase of 3.2%. Operating income increased in all regions, from CHF 42 million to
CHF 92 million, an increase of 119%. The financial information in this report complies with International Financial Reporting Standards (IFRS).

Net Sales by Region

Americas［million US Dollars］

22%

140
120

109

124

280

80

［hundred million Yen ］

40

800

20
0

225

12/2019

12/2020

12/2021 ［month/year］

18％

Asia

200
175
0

49％

100

249

250

125

60

289

275

11％

Europe［million Euro］

325
300

Japan

12/2019

12/2020

Based in
SUNSTAR Group Report 2022 I 05

［million Singapore Dollars］

12/2021 ［month/year］

23

325
300

299

282

275

246

250
225
200

countries
worldwide

175
0

12/2019

12/2020

12/2021 ［month/year］

740

700

688

680

12/2020

12/2021 ［month/year］

600
500
400
0

12/2019

Group Business Performance 2021

Sales by Business Sector
Sales recovered in both the Consumer and Industrial business sectors.
However, the effects of COVID-19 and supply chain disruptions have lingered,and there continues to be a drop in consumption and production cutbacks bybusiness partners.

Industrial
Business

36％*Consumer Business: Oral care goods, cosmetic, health foods, etc.
*Industrial Business: Metal parts for motorcycles, automobiles, and adhesives/sealants for automobiles, buildings,
electronic parts, etc.

ConsumerBusiness

64％
Net Sales

BIO

1,500

1,307
1,250

1,123

1,159

1,000

Operating Income

750
500

120
250
100
0

1,159

12/2019

12/2020

12/2021

M - CHF［month/year］

99

92

80
60

42

40
20
0

12/2019

12/2020

12/2021［month/year］

92

M - CHF
SUNSTAR Group Report 2022 I 06

Consumer Business overview
The Consumer Business is a business whose purpose is to help extend healthy life expectancy

Consumerthrough products and services that promote overall health, starting with oral health. In FY2021,
amid a difficult business environment, we not only launched and nurtured new products ineach area, but also worked on starting operation of a new factory, providing new services, andreducing environmental impacts.

Business

In Japan, in response to the growing demand for mouthwash in the Asian market including
Japan, we began full-scale operation of the new Yamanashi factory in December, tripling our
production capacity of liquid products in Japan. In August, we launched the Virtual
KENKODOJO, a new online service where users can experience the Sunstar Mind and Body
Kenkodojo, Sunstar's original health method developed over 36 years. In China, we havesteadily increased sales by developing the GUM series and working on new advertisingpromotion activities for Ora2.
In Europe, ongoing efforts to strengthen our digital marketing of GUM are contributing to sales

EQUITANCE

2％

800

700

725 740

KENKODOJO

6％

Others

16％
15％

600

16％
GUM

Ora 2

growth. We are also working to develop products and sales promotion tools aimed at reducing

Europe

61％

Japan

53％

environmental impacts. Furthermore, in August, we acquired Playbrush, the Group’s first
healthcare IT company, and will take on the challenge of actively utilizing data related toAmericas23％

toothbrushing.
Asia

2020

8％

2021

Net Sales（million CHF）

Net Sales by Brand

Net Sales by Region

In the Americas, we are actively conducting educational activities in collaboration with dental
professionals. At the same time, we are striving to develop interdental cleaning tools, resulting
in steady sales growth.
In the Consumer Business, we will continue to engage in business activities with the mission of“100-year mouth, 100-year health”, so that our customers can reach the age of 100 years ofhealthy life.

SUNSTAR Group Report 2022 I 07

Consumer Business

Oral Care
Toothpaste / Mouthwash / Toothbrushes / Between teeth cleaning / Dental treatment products

GUM brand sells well in
Scandinavia, Benelux, etc.

GUM BIO becomes a driving force
in European toothpaste market

In European countries, the G U M
brand performed well because ofpromotions at trade shows and on theInternet. During the GUM Challengein Denmark, influencers reachedmany c onsumer s t hrough S N S ,communicating the importance ofusing interdental cleaning tools in
addition to toothbrushes, and sales
increased.

GUM BIO, an organic certified toothpaste that has
been on the market for two years, is steadily
increasing sales in Europe. In France and Italy inparticular, it performed well, claiming third place inthe bio-toothpaste market.

GUM PAROEX
enjoys strong sales in Europe

Sales in Latin America growthanks to unique promotions

With the increase in hygiene awareness in recent years, the useof oral care products has also increased. GUM PAROEX for
keeping healthy gum
increased sales inFrance and other
European countries.

In Mexico, we rolled out a taxi advertisement
for GUM Flosser and GUM Soft-Picks. The
introductory video was played 22.5 million
times, creating hype and contributing tosales. In Argentina, awareness of the GUM
brand increased, and sales were strong
because of a campaign from dentists to
inform consumers about the importance ofinterdental cleaning.

SUNSTAR Group Report 2022 I 08

Consumer Business

Beauty Care
Oral Care

Skin care cosmetics / Hair care products / Oral beauty care products

Sunstar acquires Playbrush in Austria,
develops businesses in the connected healthcare field

Strong sales of Ora 2 brand in Japan thanks to promotions linking TV,
the Internet and in-store advertisements

Sunstar has acquired Playbrush, an Austrian company that develops,
sells, and operates a subscription business for smart toothbrushes anddigital oral care. In the UK and Austria, we will develop businesses in thefield of connected healthcare, such as smart toothbrushes that makechildren want to brush their teeth correctly, happily and voluntarily, andwe will work for Sunstar’s global expansion in the digital field.

Sales of Ora 2 Premium Stain Clear Toothpaste and Ora 2 Premium Cleansing Paste were strong, thanks
to promotions linking “Intensive Whitening at Home” TV commercials, YouTube ads, Instagram, Amazon
and in-store advertisements.

Sunstar releases GUM Mouth Barrier in Japan, encouraging
new oral hygiene habits before and after going out
Sunstar has released GUM Mouth Barrier, a mouthwash that prevents badbreath and cleanses the mouth with a sterilizing barrier and cleaning
reset. As awareness for hygiene grows, we sought to acquire newcustomers in their 30s and 40s, through TV and digital advertising, by
highlighting the importance of maintaining the cleanliness of the oral
environment as a new hygiene habit before and after going out.

Popular Chinese actress Tan Songyun appointed as Ora 2 ambassador
Sunstar introduces BUTLER GrindCare to the Japanese market,
a device for managing bruxism* 1 during sleep
BUTLER GrindCare, measures clenching and grinding during sleep andreduces them by generating weak electrical stimulation if any clenching is
detected. The product has been launched in Japan for dental clinics.
* 1. Bruxism is repetitive jaw-muscle activity characterized by clenching or grinding of the teeth and/or by bracing or thrusting of the mandible.
( F. Lobbezoo et al: J Oral Rehabil. 2013; 40: 1, 2-4)

SUNSTAR Group Report 2022 I 09

Tan Songyun, a popular film and TV
actress, has been appointed for Ora 2
advertisements. A leading actress withmore than 24 million followers on
Chinese social media, Tan has helped
expand sales and increase overallawareness of the Ora 2 brand throughboth online and offline activities.

Beauty Care
MAGMAS shampoo for men launches new kit
for measuring hair zinc age and trialing zinc(an ingredient for hair protection) infusion
Men’s hair care brand MAGMAS has launched the “Zinc Infusion Challenge Kit”
comprising a “Hair Zinc Age Check” for customers to send their own hair to haveits zinc content (a factor in loss of bounce and resilience) measured, plus a
week’s worth of zinc-infused shampoo for customers to experience bounce andresilience in their hair. The kit was developed as a new service for men to receive
advice on care tailored to their own hair conditions and to try MAGMAS shampoo.

Consumer Business

Health Care
Health foods / Household goods

Sunstar releases new KENKODOJO Rice Bran Life,a food product that up-cycles rice bran
KENKODOJO Rice Bran Life was launched to provide an easy and tasty way toconsume nutrient-rich rice bran and improve nutritional balance. Rice bran, the hull andgerm of brown rice that is often discarded when rice is polished, contains dietary fiber,
vitamins, minerals, and other nutrients. We propose to incorporate these nutrients into
desserts and dishes as a powder flavored with roasted soybean flour.

KENKODOJO Green Yellow Vegetable renewed as a food with function claims
It is a popular vegetable drink made by fermenting a puree of organically growncarrots with lactic acid bacteria and using a unique process to enhance theflavor. While keeping the ingredients unchanged, Sunstar’s application for thedrink as a food with function claims containing 12.3 mg of GABA per can—aningredient of organic vegetables which is reported to lower high bloodpressure—was accepted in 2021. This renewed product was launched withbroad appeal to help people maintain good health.

MAGMAS brand releases new volumizing product for hair
MAGMAS shampoo for men has added a
new item that infuses hair with zinc, astrengthening component of hair that
decreases with age. Sprayed while styling,
the new MAGMAS Volume Up Tonic uses
zinc to strengthen the hair’s bounce andresilience, creating a style with a natural
volume by lifting hair from the roots.

Virtual KENKODOJO opened, allowing online users
to experience Sunstar’s way of staying healthy
Sunstar has launched online content that allows users toeasily experience its unique way of staying healthy, which wasdeveloped at Sunstar’s welfare facility, Sunstar Mind and Body
Kenkodojo. The Virtual KENKODOJO provides advice on simple
diet, exercise and mental conditioning techniques based on
answers given by the user.

SUNSTAR Group Report 2022 I 10

Industrial Business overview
The Industrial Business Group provides technical solutions to support the creation of healthy
and comfortable living environments for people across the world. Leveraging our strengths in

Industrial

adhesive and metal processing technologies, we are working to strengthen thecompetitiveness of our existing businesses, expand sales areas, develop businesses insurrounding areas, and create new living environment businesses such as the indoor air quality
improvement business.

Business

In FY2021, although profit growth was sluggish due to the soaring cost of raw materials andlogistics due to COVID-19, sales recovered worldwide amid improving market conditions in theautomotive and construction industries, and there was remarkable sales growth in China andEurope.
In the automotive adhesives sector, sales were strong for various adhesives used in car bodymanufacturing processes by Japanese and Chinese car manufacturers, adhesives forin-vehicle electronic devices, and formed-in-place gaskets (FIPGs) for electric vehicle battery
EuropeOthers

400

4％

1％

500

398

419

300

MaterialCore

31％
Chemical( Living
Environment＊2 )AmericasChemical( Industrial
Materials＊1 )

47％

21％

2020

Japan

41％

21％
Asia

34％

Net Sales by Business* 1 Adhesives for automobiles and electronics* 2 Sealants for constructionthat will contribute to achieving carbon neutrality in the automotive industry. In our constructionsealant and adhesive business, there were strong sales for sealants for renovation projects andexterior panels in Japan and for sealants for large construction projects in China. Sealants thatminimize the emission of volatile organic compounds (VOC) in consideration of indoor air
quality are also being increasingly adopted. In our metal parts business, sales grew and profit
margins increased due to the expansion of product varieties and sales channels for motorcycle

2021

Net Sales（ million CHF）

covers. Looking to the future, we are also developing products and manufacturing methods

Net Sales by Region

parts for the Japanese and Asian markets, the increase in orders for metal parts for a wide
range of industries including the automotive industry, and the promotion of in-houseproduction. In the new business sector, sales have increased due to the expansion of the QAIS
brand product lines, such as photocatalytic deodorization and sterilization systems, and the
expansion of e-commerce and distributor sales channels, and we will continue to aim forbusiness growth through new product development and global expansion.

SUNSTAR Group Report 2022 I 11

Industrial Business

Chemical
Adhesives / Sealants for automobiles, electronic parts, and construction

Adoption of automotive adhesives grows in Japan and China
Advances were made in the take-up of new products, mainly in Japan and China, such as high-rigidity direct glazing windshieldadhesives as well as structural adhesives that help to reduce vehicle weight for lower vehicle CO2 emissions and to reduce noiseand vibration inside cabins.

Orders increase
for formed-in-placegaskets (FIPGs) for EVs
Sales of formed-in-place gaskets( F I PGs ) increased primarily inEurope, but in the US and China too,for EV battery cover applications
by European car manufacturers.

Strong sales of adhesives for in-vehicle displays
and heat-dissipating materials for in-vehicle cameras

New entry into structural adhesives
for automotive repairs

By utilizing the new adhesive production line withhigh air cleanliness set up at the Yamanashi factoryin Japan, new adhesives for in-vehicle displays that
suppor t large and narrow frames have been
adopted for major Japanese manufacturers,
resulting in increased sales. In addition, following
confirmation of the adoption of new heat-dissipating
materials for in-vehicle cameras, demand for whichis growing due to automated driving and otherapplications, preparations for mass production ofthese materials are underway.

Penguin Cement 1040J, a weld
bond structural adhesive
boasting excellent workability
at repair sites, has beenreleased in Japan. Thanks to
its high reputation for adhesivestrength and weldability, it was
the first automotive adhesive
to be recommended by theJapan Autobody Repair Work
Association.

＊for illustrative purposes＊for illustrative purposes

SUNSTAR Group Report 2022 I 12

Industrial Business

Material Core
Chemical

Metal parts for motorcycles and automobiles

Strong salesof sealants for home exterior panels

Sunstar launches motorcycles chains in Japan,
records strong sales for racing brake pads

Sales of sealants expanded, especiallyto panel manufacturers, due to thefavorable appreciation of eco-friendly
containers along with an increasein sales of home exterior panels.

As part of its motorcycle parts business expansion, Sunstar launched a new chain for the aftermarket. Sales havebeen strong due to compatibility with our sprockets (gear parts), which are renowned for their quality, and to the
popular color variations. Sales of racing brake pads also expanded.

Construction sealant business expands in China,
boosted by launch of new products with excellent workability
Penguin Seal SR2518, a new one-component sealant boasting excellent workability, was launched in
China for the use in assembling concrete plates and other materials, winning orders from universities,
condominiums, and other large construction projects.

SUNSTAR Group Report 2022 I 13

Sales of custom partsto Thai motorcycle fans grow significantly
Sales of brake discs and other custom
parts to motorcycle fans in Thailand,
where the market for large motorcycles
is booming, doubled year on year since
they started last year. Original designand high-quality products that meet
local needs have become popular.

Industrial Business

E-Science
Material Core

Indoor air quality improvement business

Automotive metal parts businessexpands

Sales channels for the QAIS space deodorization and sterilization system expanded
due to e-commerce sites, experience-based sales and agency contracts

In Japan, Sunstar received orders formetal parts including large presses andthick plate presses for transmissions.
In Thailand, our automotive metal parts
business expanded, which include
receiving orders for thin plate parts fortransmissions using high-speed presses.

Sunstar began selling QAIS at our own online store as well as
at major e-commerce malls. We also expanded sales channels
through sales agency contracts and the development oftouchpoints where customers can touch and feel the products,
and we worked to expand contact with customers, by productplacements in TV dramas. These efforts led to an increase insales volume.

QAIS product categories expanded
to meet both home and professional requirements
Strong sales in Japanfor outboard motor parts
Sales of ring gears to outboard motor manufacturers expanded significantly due to an increasein demand for outdoor and leisure activities in North America.

For the QAIS -air- 03 home-use space deodorization and sterilization system to better integrate into daily life, we soldaccessories that can turn the system into a clock or light. We also commercialized the QAIS -shield- dental face shield,
which was developed based on feedbacks from dental professionals.

＊for illustrative purposes

SUNSTAR Group Report 2022 I 14

Sunstar Group Long-Term Vision 2032

Sustainabilit y

Ideal Image in 2032

The Sunstar Group celebrates its 90th anniversary in 2022. Looking back on our
history, it has been a constant series of challenges to develop our business from new
perspectives. As we look toward our 100th anniversary in 10 years, we will strive for
ESG-driven management to fulfill our corporate social responsibility of becoming acompany that contributes to the happiness of all people involved with Sunstar and theplanet. We will take on the challenge of new innovations to solve social issues byintegrating the advantages of both our consumer and industrial businesses while
passing on Sunstar’s DNA to the next generation.

Sunstar is a company that contributes to enhancing healthy life expectancy and quality of life
(QOL), starting from good oral health to preventive medicine and holistic wellness. It is
important for us to be recognized as the most trustworthy company in the world, providing
total support for people to live a healthy and comfortable life in all living environments
including mobility and buildings.

Customers
Clients
Business
Partners

FutureEmployees

Int’l and Local
Communities

Shareholders
Investors

Universities
Research
Institutes

Governments
Administrations

We will contribute to solving social issues through businesses that are aimed at our
Ideal Image in 2032. At the same time, we will work on environmental initiatives, enhancementof employee happiness, and improvement of the management platform as priorities requiredby society, and in partnership with our stakeholders, we will create new values for the
wellbeing of people and the planet.

Environment

Human Resources

Employees
and Families

We are contributing to the achievement of United Nations’ SDGs through our business activities,
realizing the Sunstar Group's Long-Term Vision.
Sunstar’s SDGs Key Goals
We will provide products and services that will help
people live healthier lives, from the promotion of orala n d over all he al t h to imp r ov ing t he li v ing
environments of people all around the world.
We will work to make living environments moresecure and comfortable, with regards to mobility andbuildings.
We will work to prevent, reduce, and reuse waste
products through the entire life cycle of our
products—from procurement to manufacturing,logistics, sales, and even after consumer use.

Partnership
Sunstar's sustainability web pagehttps://www.sunstar.com /sustainability/

SUNSTAR Group Report 2022 I 15

Management Platform

Responding to the increasingly severe climate change on our planet,
Sunstar aims to achieve environmental targets designed to reduce the environmental impact of all Group companies worldwide.

Mid-term environmental targets

Efforts to meet targets

As part of its environmental initiatives, Sunstar has establishedGroup-wide global environmental targets to be achieved by 2030.

● Reduction of plastics in products and packages(1) Plant-based/recycledplastics used in containers
and packaging: 50%● Recycling initiatives(2) Recyclable or reusable material
used in post-consumer containers
and packaging: 100%In the Netherlands, in collaboration with TerraCycle, we have launched a collection
and recycling program for interdental cleaners. In Japan too, we are participating
in an experimental test to collect and recycle plastic containers, toothbrushes, andtoothpaste tubes in cooperation with industry companies and local governments.
We are building expertise and cooperative networks for the collection andrecycling of used plastic and for designing products that are easy to recycle.

(3) FSC ® -certified or othercertified paper used in containers
and packaging: 100%
(4) RSPO-certified or other certified
palm oil used in products: 100%

● Initiatives for biodiversity conservation

In an effort to conserve biodiversity, we joined the Roundtable on Sustainable Palm Oil (RSPO) asa global group and began purchasing certified palm oil to use in our products. We are also
switching to use FSC ® -certified paper in our business activities as it is made from properly
managed forests and recycled resources, and does not contribute to illegal logging or
environmental destruction. In Switzerland, in an effort for biodiversity conservation, employees
participated in activities to remove invasive plants to help maintain ecosystems.

(5) Renewable electricity
used in own plants and offices: 100%
(6) Reduction of water
consumption per production in own plants:
20% reduction
per kg compared to FY2020(7) Reduction of total CO 2
emissions from own plants (Scope 1 + 2):
85% reduction compared to FY2020

In Europe, we are proceeding to switch to recycled materials for productpackaging, and in Japan, we worked to reduce our use of oil-based plastics. At
our Tokushima Plant , we also successfully recycled plastic waste by collecting
product carrier trays used in the manufacturing process and using the resin to
make new trays.

Sustainabilit y Sunstar Long-Term Vision

Environment* Roundtable on Sustainable Palm Oil ( RSPO): Sunstar’s RSPO membership progress https://rspo.org/members/12085* Forest Stewardship Council ® ( FSC ® ): An independent, non-profit organization that promotes the responsible management of forests globally● Reduction of CO 2 emissions through the introduction of renewable power

CO 2

Following on from sites in Germany and Switzerland, in
2021, 70 % of the electricity used at our business sites inJapan was switched to renewable electricity, reducing CO2
emissions by 60%.

SUNSTAR Group Report 2022 I 16

Sustainabilit y Sunstar Long-Term VisionPartnership

Human Resources

We are working on various social issues
by deepening cooperation with stakeholders.

We are promoting the creation of workplaces encouraging diversity and inclusion,
allowing everybody to work in good physical and mental health.

For everyone’s smile

For greater employee happiness

Employees at all our sites undertake voluntary efforts to ensure peace of mind and happiness for
those in need. Donations of toys, household goods, food and funds for local playgroundequipment were delivered through support groups and government agencies at times like
Christmas, New Year, and Children’s Day.

We have created an environment where employees could communicate smoothly with each otherand can feel safe and connected, even during the COVID-19 pandemic. In Europe, we
implemented Sunstar Connect, a program to share Sunstar’s corporate values and purpose,connecting sites across the region and deepening exchange among employees. In Singapore, aspart of diversity and inclusion training, a workshop was held to deepen understanding about theculture of Japan—the birthplace of the Sunstar Group.

Switzerland

Germany

USA

Switzerland

Germany

For everyone’s health
In Europe and the Americas, as part of the oral and general health awareness, we held seminars
on the relationship between periodontal disease and diabetes, and donated to children with type I
diabetes. In Japan and Asia, dental hygienists from the Sunstar Foundation conducted seminars
in Thailand and Malaysia for nurses who support dental care. We are continuing to implement
initiatives and disseminate information that helps people maintain general health starting fromgood oral health.

Germany

SUNSTAR Group Report 2022 I 17

MexicoJapan, Thailand and Malaysia

China

Italy

Singapore

FranceSunstar’s History and Future
The origins of Sunstar

Sunstar has always strongly believed that we cannot deliver “health” and “comfortable living” to ourcustomers unless our employees themselves are healthy.
In 1963, these thoughts were expressed in our corporate motto “Always strive to help people
everywhere achieve better health and enhance their quality of life” and we began to engage incorporate activities.
Never forgetting the basic spirit of the corporate motto underlying Sunstar, and with an eye to thechanging world in which we live, we are committed to developing business that helps solve social
issues, while all our employees take good care of the global environment.
Sunstar will continue to provide total support for the health and enrichment of people’s lives globally,
by encouraging healthier lifestyles through oral health and creating safer, more comfortable living
environments.

Consumer BusinessIndustrial Business

Sunstar was founded as a manufacturer and vendor of bicycle parts and rubber glue for repairing flat tires. Later, byapplying the manufacturing technology used in pouring rubber glue into metal-tube containers, the company
developed and introduced toothpaste. This eventually became the Company’s Consumer Business, which currently
comprises Oral Care and Health & Beauty. The business of bicycle parts and rubber glue evolved into the Company’s
Industrial Business, which comprises metal parts for motorcycles and automobiles, and adhesive agents and sealants
for automobiles, construction, and electronics.

SUNSTAR Group Report 2022 I 18

Published by Sunstar Group Global Public Relations www.sunstar.com