Ensuring Product Safety and Reliability

Ensuring Product Safety and Reliability
Basic Approach

In order to provide products that will satisfy customers, Lion carries out quality assurance activities at all stages from thevery beginning of the product development process to consumption by customers.

Specifically, by identifying the key requirements at each stage of corporate activities— ①product planning, ②productdevelopment, ③production, ④sales and ⑤customer support—we are constantly pursuing customer satisfaction.

During product planning, valuable customer opinions are analyzed to identify specific needs. At the product development

stage, product quality is verified with respect to seven metrics, including function and performance, and consideration is
given to making labeling easy to read and accessible. During production, quality is thoroughly managed within eachprocess, and products that have passed inspection are shipped in identifiable lots, aiding in effective after-sales

management. A variety of information is sent to wholesalers and retailers, including product descriptions and samples.

Overview

Product Development Incorporating Customer Opinions

272

Lion Sustainability Website 2024

Developing Safe and High-quality Products* Access the Research & Development page for more information.

273

Lion Sustainability Website 2024

Initiatives

Approach to Quality Assurance, Safety andInitiatives to Respond to Our Customers

Reliability

Reinforcing the Provision of Information to
Customers

274

Lion Sustainability Website 2024

Ensuring Product Safety and Reliability

Approach to Quality Assurance, Safety and Reliability
Approach

Quality Policy

Approach to Quality AssuranceGroup-wide Reliability Assurance System
Approach to Safety and Reliability

Approach to Responsible Product Representations

Participation in Pharmaceutical Product Safety Initiatives

Animal Testing Policy

Approach

Lion’s mission is to earn the confidence and satisfaction of customers by providing excellent products and services thatmake a difference in everyday lives by redesigning habits.

Quality Policy

Based on our Quality Policy, we create high-quality products that meet customer needs.

Group-Wide Reliability Assurance System

In 2018, we established the Reliability Assurance Department to reinforce quality assurance based on a Product Management System covering the entire supply chain.

To implement quality assurance activities on a Company-wide basis, we have established the CS/PL Committee,* comprising

representatives of the Product Planning Division, Production Division, R&D Division, Consumer Service Center andheadquarters staff divisions. The Reliability Assurance Department serves as the secretariat for this committee. The CS/PL
Committee provides overall management of quality assurance activities, monitoring Group-wide efforts and responses toissues in the areas of legal compliance, setting voluntary standards and targets, and developing superior products from theperspective of reliability assurance. Lion manufactures and sells products ranging from everyday sundries topharmaceuticals, so its quality assurance system is designed in line with the respective standards for each product category.

Furthermore, Lion maintains a system for swiftly taking the necessary measures to address any serious problems that may
arise with its products. These measures include responding to individuals harmed or affected, disclosing relevant

information to government authorities and customers, issuing product recalls and taking steps to prevent recurrences.

275

Lion Sustainability Website 2024

Reliability Assurance System* CS/PL Committee: A committee focused on customer satisfaction (CS) and product liability (PL)Approach to Quality Assurance
Product Management System

Based on its Quality Policy, Lion has established a Product Management System, comprising regulations stipulating work

processes and quality assurance practices at each stage of product development, in order to steadily and rationally develop

excellent products and services that make a difference in everyday lives by redesigning habits.

This system is compliant with ISO 9001, the international standard for quality management systems. It defines the flow andmechanisms of quality assurance processes at each step of product development (strategy, planning, development,

production, sales, post-launch improvements and disposal). Through the system, we put these processes into practice.
Lion’s headquarters, Sapporo office, Sendai office, Nagoya office, Osaka office, Fukuoka office, Singapore office, research

centers (Hirai Research Center and Odawara Research Center) and plants (Chiba Plant, Odawara Plant, Osaka Plant andAkashi Plant) have acquired the ISO 9001 certification.

276

Lion Sustainability Website 2024

Quality Audits

Lion’s auditing officers and staff periodically carry out quality audits of Lion and its contractors, providing guidance on

improvement as needed. Locations are chosen from among all the operations of Lion and its contractors that are subject tothese audits, and the selection of locations to undergo on-site surveys is informed by the timing and results of previous
surveys.

Reinforcing the Quality Management Network among Overseas Group Companies

The Lion Group is expanding operations across Asia in line with its mission of providing excellent products and services thatmake a difference in everyday lives by redesigning habits. In recent years, the volume of intercompany import and export

business between overseas group companies has been expanding. At the same time, there is a growing trend toward tighter

regulations internationally, increasing the importance of greater coordination among quality management staff in eachcountry.

In light of these changes, starting in 2018, we held the first annual Asia QA* Meeting, bringing together import, export andquality management staff from overseas Group companies. This meeting, which has been held online since 2020, was also

held in person for the first time in four years in 2023, with the cooperation of Lion Chemical Corporation’s Sakaide Plant in

Sakaide, where the meeting was held and onsite conditions were confirmed. Discussions were conducted, focusing mainlyon the status of operations and issues on the ground as well as the creation of a system for coordination going forward, withthe aim of reinforcing the Group-wide quality assurance system.

Going forward, we will continue to implement initiatives like this, striving to provide better products and services tocustomers in all the countries where we do business.
* QA: Quality assurance

The Asia QA Meeting (2023)

277

Lion Sustainability Website 2024

Approach to Safety and Reliability

To ensure that customers can use Lion products with confidence, we evaluate the safety of raw materials and ingredients aswell as of final products during use.

Safety of Raw Materials and Ingredients

Before using a raw material, we first review existing data and information to determine its physical characteristics and if it

has any hazardous properties (hazard assessment) as well as whether we will be able to safely use it in the product being

developed (risk assessment). With the wide-ranging customers that use our products in mind, and with reference to safety

reports from international organizations and standards in and outside Japan, we determine whether or not the material issuitable for use in the product.

Furthermore, in addition to health-related considerations, we similarly examine the material’s impact on the environment

after its use by consumers in line with the latest scientific appraisals. Based on these comprehensive considerations,substances deemed to require caution are carefully listed and managed.

When existing data is insufficient to reach a determination, we perform safety tests using officially designated and otherobjective methods of evaluation. Through such testing, we determine the limits within which the raw material can be usedsafely, taking into account the way the product will be used. Finally, for raw materials deemed suitable for use, we establish

standards based on their applications (such as use in pharmaceuticals, food products, quasi-drugs, cosmetics or sundries).
Raw materials that meet these standards are used in product manufacturing.

As with the raw materials of the product contents, we use only materials that meet appropriate standards for productpackaging and containers.

Even after products are launched, we continue to analyze research data on the raw materials and ingredients used toconfirm that there are no issues with their continued use.

In some cases, small amounts of impurities arising from raw materials or manufacturing processes end up in products. Evenif such impurities present no health concern, Lion implements quality management at every stage, including raw materialpurchasing and production, to reduce impurities as much as is feasible. One example of such efforts is Lion’s response to a

notice published by the Japanese government in 2012 about organic pigments that could have been unintentionallycontaminated with polychlorinated biphenyls (PCBs). Upon the notice’s publication, Lion moved quickly to confirm that
there were no safety issues with its products. Since then, in accordance with the government’s guidance, Lion haspurchased and used such raw materials produced using designated best available technologies (BATs). Through efforts likethese, we ensure that any impurities in our products are maintained at low levels that are safe for customers and theenvironment.

Fragrance Policy

278

Lion Sustainability Website 2024

Safety of Products During Use

Giving due consideration to the various ways products may be used as well as product use by socially vulnerable customers,

we perform safety evaluations based on an approach of avoiding risks at the product design stage.

To this end, we use a checklist to determine whether the product design ensures safety in both “normal use” and “mistakenuse” cases. For “irregular use” cases, we assess whether risk reduction is possible and whether the risk is tolerable, and asnecessary clearly label the product with an explicit safety warning.

Scope of Safety Assurance

In addition, the quality verification meeting, which encompasses representatives of related departments, performs

assessments based on customer use scenarios in order to prevent harm related to product use and to prevent the omissionof items that should be checked for safety.

If there is trouble with a product, we have an internal system in place, ready to promptly issue product recalls or otherwise

respond as needed.

Centralized Management of Data on Bodily Issues Experienced by Consumers

Businesses must swiftly collect and centrally manage information from customers about the bodily issues they experienceand quickly respond as appropriate.

Information on bodily issues from customers who have used Lion products is collected and centrally managed by theConsumer Service Center. We have in place a framework for quickly and appropriately responding to such information,

including sharing the information received with multiple specialized departments and reporting it to top management.

Going forward, we will continue to educate staff involved in implementing responses about the importance of centralized

data management and to collect and manage such information.

279

Lion Sustainability Website 2024

Approach to Responsible Product Representations
Basic Policy

In accordance with the Lion Group Charter for Corporate Behavior and Behavioral Guidelines Lion complies with thePharmaceuticals and Medical Devices Act, Act against Unjustifiable Premiums and Misleading Representations, Health

Promotion Act and other related laws and regulations. Furthermore, Lion strives to consider customer perspectives in orderto make accurate and reasonable product representations (such as labels and advertising) that will not lead tomisunderstandings or negative customer experiences.

To improve the quality of representations about all the products it sells (including food and pharmaceutical products), Lionhas clearly defined its basic approach to product representation and established a representation drafting manual,comprising guidelines for preparing precise, appropriate product representations at each step of product development

under its Product Management System. These guidelines apply to all product packaging and presentation as well as thewording and expressions used in instructions, pamphlets, sales handbooks, advertisements and other representations(including those for samples).

In line with the guidelines for product representations, representations are subject to stringent checks by specialized staff
as well as external experts (attorneys, etc.), as needed. Through this system of thorough management, we advance the useof representations that are clear and easily recognizable to customers.

Lion’s specialized representation checking staff strive to improve their expert abilities to ensure that they can makedecisions and offer advice about representation quality that accurately reflect the latest legal interpretations, governmental

tendencies and changes in society. To this end, they participate in lectures offered by governmental bodies and externalseminars and, as needed, consult with external experts and governmental authorities.

Product Representations in the OTC Drug* Business

The information displayed on pharmaceutical product labels is subject to the stipulations of the Pharmaceuticals andMedical Devices Act (statutory labeling). The laws and regulations regarding fairness and appropriateness in pharmaceuticalproduct advertising include the Pharmaceuticals and Medical Devices Act and the Standards for Proper Advertisement ofPharmaceuticals, etc., while industry self-regulations include the Japan Federation of Self-Medication Industries’ Guidelines
for the Proper Advertising of Over-the- Counter Medicines.

We believe that advertisements for pharmaceutical products that protect users’ lives and health should be not only

marketing information, but also information to encourage customers to use pharmaceutical products properly. Suchadvertisements must not encourage improper use, abuse or overuse due to insufficient caution.

Lion’s departments in charge of creating and checking product representations share pharmaceutical product information
templates for statutory labeling and an advertising check sheet based on the Standards for Fair Advertising Practices

concerning Pharmaceutical Products, etc., for advertisements. By ensuring that representations are created and managed
based on a common understanding of the regulations stipulated in the Pharmaceuticals and Medical Devices Act, we strive

to efficiently and accurately advance proper representations.

280

Lion Sustainability Website 2024

The Japan Federation of Self-Medication Industries has established an advertising screening committee, which works

toward appropriate advertising and evaluates pharmaceutical product advertisements after their publication. Comprising
third-party and over-the-counter (OTC) drug manufacturer representatives, the committee works to ensure proper

expressions in OTC pharmaceutical product advertising and enhance confidence in such advertising. Lion participates as acorporate member, contributing to efforts to ensure proper OTC drug advertising.

* OTC drugs: Pharmaceutical products that can be purchased at a pharmacy or drug store without a prescription. (Source: Japan SelfMedication Industry)

Product Representations in the Food Product Business

The contents to be labeled on food products are defined by the Food Labeling Standards under the Food Labeling Law(statutory labeling). In addition, the Act against Unjustifiable Premiums and Misleading Representations, the Health

Promotion Act, and other legal regulations govern the proper labeling and advertising of health food products* handled by

the Company, while the Fair Competition Code on the Labeling of Foods for Specified Health Uses and its enforcement
regulations serve as fair competition codes.

Food products have three basic functions. The first and most important is nutrition (the primary function), the second is thesensory and enjoyment function (the secondary function) and the third is contributing to biological regulation to help

maintain or improve health (the tertiary function). The food products that Lion sells are health food products that provide
this tertiary function. While these products are thought to provide a health effect, it is important to ensure that they areproperly marketed to avoid such misunderstandings as their being confused with pharmaceutical products or their effects
being exaggerated.

Lion uses food product information templates for statutory labeling and an advertising check sheet based on related laws

and regulations and voluntary industry rules for advertising. Furthermore, to ensure the provision of appropriate

information to customers, checks by external experts (attorneys, etc.) as a third-party perspective are established in theadvertisement confirmation step of the process as necessary.

* Health Food Products

The term “health food product” generally refers to any product that is claimed to be beneficial to health. In Japan, health food products thatare labeled as having certain functions based on standards of safety and effectiveness established by the national government are classified
as foods with health claims. There are three types of foods with health claims: foods with function claims*2, foods for specified health*3
uses, and foods with nutrient function claims.

*2 Foods with function claims are food products that display claims of functions for which, prior to sale, manufacturers must submit

scientifically based information on safety and functionality to the Director-General of the Consumer Affairs Agency. The manufacturers
themselves are responsible for ensuring the accuracy of such information.
*3 Foods for specified health uses

Foods for specified health uses are food products for which permission to display claims of health functions has been granted by the

Director-General of the Consumer Affairs Agency based on evaluations by the agency of the product’s safety and usefulness in maintaining

or improving health.

281

Lion Sustainability Website 2024

Admonishment from the Consumer Affairs Agency Regarding Product Representations

Lion received an admonishment from the Consumer Affairs Agency under its Health Promotion Act regarding anadvertisement for its product Tomato Su Seikatsu Tomato Su Inryo that ran from September 15 to November 27, 2015 in thedaily newspaper on the grounds that said advertisement could be misunderstood by general consumers.

Lion takes this admonishment seriously. We have further reinforced advertisement submission management and aresteadily advancing measures to prevent recurrences of such issues.

Initiatives to Ensure Proper Use

Lion’s food products, particularly its processed food products in tablet form, are easy to consume and therefore present thepotential risk of excessive intake. By such means as displaying recommended intake amounts in large print on the front of

packages, Lion strives to provide clear labeling so that consumers can use its health food products appropriately.

Allergen LabelingLion requires its raw ingredient manufacturers and suppliers to provide information about their use of the eight ingredientsthat under the Food Labeling Standards are required to be listed on food product labels as allergens, as well as the 20

ingredients recommended for such labeling.* In particular, we carry out tests as appropriate to ensure appropriate labelingregarding functional substances (used as ingredients in foods with function claims) and substances with specified uses
(used in foods for specified health uses).

Lion shares information about revisions to allergy labeling regulations and other such developments internally, mainly
through a food safety team.

* Eight raw ingredients required to be listed as allergens: eggs, milk, wheat, buckwheat, peanuts, shrimp, crab and walnuts
20 raw ingredients recommended to be listed as allergens: apples, oranges, soy, sesame, etc.

Labeling in the Languages of the Places Where Products Are SoldTo ensure that customers can accurately understand the features of our products, our product labels, including usage

instructions and ingredient lists, are presented in the official languages of the places where they are sold.

282

Lion Sustainability Website 2024

KireiKirei Hand Soap labels

Thai

KoreanChineseEmployee Education and Training

To ensure thorough compliance with laws and regulations related to product representations (the Pharmaceuticals andMedical Devices Act, Act against Unjustifiable Premiums and Misleading Representations, Health Promotion Act, etc.), Lion

provides e-learning for all employees and lectures for employees in related divisions as part of its legal education initiatives.

OTC Drugs

Every year, Lion educates employees involved in the planning and sale of pharmaceutical and related products on productsafety. This education, based on the Ministerial Ordinance on Good Vigilance Practice for Drugs, Quasi-Drugs, Cosmetics,

and Medical Devices (the GVP Ordinance), teaches employees about the handling and correct use of safety information. Lion

uses specified procedures for education about product representations to promote proper promotional activities. The
education also covers related laws and regulations and appropriate product representations.

Participation in Pharmaceutical Product Safety Initiatives
Pharmaceutical Product Safety Activities

In Japan, under the Pharmaceuticals and Medical Devices Act, businesses must obtain a marketing license to manufactureand sell pharmaceutical products and quasi-drugs. Per this law, businesses must conduct appropriate management andsupervision by establishing and properly operating systems of quality assurance and post-marketing safety control for suchproducts and appointing a general marketing director, quality assurance director and safety control director.

As a company that manufactures and sells pharmaceutical products, quasi-drugs, cosmetics and medical devices, Lioncomplies with such legal requirements and operates an appropriate marketing framework. Lion has created a manual forcompliance with the GVP Ordinance for use in safety control. Safety control is carried out in accordance with this manualand managed by the safety control director. Furthermore, the safety control director manages the safety control divisions,and the general marketing director provides oversight to ensure proper operations and conducts post-marketing safetycontrol. The safety control divisions operate according to internal manuals, including implementing post-marketing safetymeasures for the products Lion sells, collecting and evaluating safety data about pharmaceutical and other products, and,as needed, implementing safety measures.

The safety control divisions provide education and training to divisions that implement safety control to better promote theproper use of pharmaceutical and other products.

283

Lion Sustainability Website 2024

Participation in Industry Groups

To further enhance the safety of the pharmaceutical products it sells, Lion has been a member of the Japan Self-Medication

Industry, an organization of OTC drug manufacturers, since 1978. A representative from Lion serves as a vice chair of saidorganization. The Japan Self-Medication Industry works to provide information about the correct use of OTC drugs andexamines all kinds of issues related to OTC drugs, for example, researching how to make drug package inserts easier to readand understand.

Lion’s safety control director and others regularly take part in the organization’s committee meetings to gather the latest

information on safety about the Act on Pharmaceuticals and Medical Devices and OTC drugs for safety control and legal

compliance.

In addition to the Japan Self-Medication Industry, in the area of pharmaceutical products, Lion is a member of thePharmaceutical Manufacturers’ Association of Tokyo, and in the areas of quasi-drugs and cosmetics, Lion participates in theactivities of the Japan Dentifrice Manufacturers’ Association (JDMA) and the Japan Cosmetic Industry Association. Throughsuch participation, Lion suggests research initiatives and measures related to regulations and conducts educational

programs for customers about correct product use with the aims of promoting the manufacturing and quality control ofpharmaceutical and other products as well as post-marketing safety management and correct product use.

Animal Testing Policy

The Lion Group adheres strictly to the international principles of the 3Rs for animal testing (Replacement, Reduction,

Refinement) and supports the philosophy of animal welfare.

We proactively work to thoroughly ensure the safety and enhance the functionality of our wide range of products andservices to better serve our customers. In developing cosmetics (including medicated cosmetics), we do not use animal

testing apart from exceptional circumstances in which it is required to ensure safety or satisfy legal requirements. Similarly,

in developing other products, we employ alternative methods as long as the accuracy and replicability of the scientific data

used as the basis for evaluating products are not negatively affected. When no alternative methods are available and wemust use animal testing, we strive to do so properly and in line with the principles of the 3Rs and the laws of relevant

countries.

Lion Corporation has long focused efforts on related research through participation in the Long-range Research Initiative of
the Japan Chemical Industry Association and the Japanese Society for Alternatives to Animal Experiments. We will continue

actively developing alternatives to animal testing and advancing business activities that contribute to both the health of ourcustomers and animal welfare.

284

Lion Sustainability Website 2024

Ensuring Product Safety and Reliability

Initiatives to Respond to Our Customers
Approach

So that we may leverage inquiries received from customers to develop new products and improve our products andservices, such inquiries are registered in a database operating under a strict personal information management system andshared across the Company through an information sharing system that excludes personal information.

Items that are considered impactful to customer satisfaction and product use, and insights gleaned from contact withcustomers are shared daily to top management- and product development-related departments in the form of the VOC*lLetter. Through such efforts, Lion works to improve customer support quality by gaining an understanding of the customer’s

perspective and by quickly considering and responding through improvement measures.

Customer feedback comes from a wide range of sources, including not only telephone calls and emails, but also SNSs*2 andthe like. An internal dedicated organization (The Consumer Service Center) interprets and analyzes such this feedback andproactively disseminates information gleaned from it to the relevant departments.
*l VOC: Voice of Customers*2 SNS: Social networking services (such as X (formerly Twitter), Instagram, etc.)

Overview

More information about how our customer feedback is put to concrete use is available here [Japanese]

285

Lion Sustainability Website 2024

Customer-Oriented Management Declaration

In the course of developing and improving products and services, Lion places the utmost priority on customer satisfaction.

At the same time, by implementing environmental conservation activities and further enhancing the corporate governancesystem, we aim to ensure the high level of trustworthiness that stakeholders expect. Currently, government agencies,

consumer groups and business associations are working together to promote customer-oriented management initiatives atcompanies. In January 20l7, Lion voluntarily declared that it would proactively work toward customer-oriented
management, and we report progress on this front on our website and to the Consumer Affairs Agency.
More information about Lion’s customer-oriented management declaration is available here [Japanese]

Received an Award in the Good Practices of Consumer-Oriented Management Awards for the Second

Consecutive Year

Lion received the Minister of State’s Award in the Good Practices of Consumer-Oriented Management Awards sponsored by

the Consumer Affairs Agency in 2020, and in 202l, won the Selection Committee Chairman’s Award together with Kao
Corporation. This award recognizes companies that have made a consumer-oriented management declaration andimplemented outstanding initiatives based on such declarations.

Spurred on by this award, Lion will continue advancing consumer-oriented management and contribute to the realization ofa sustainable society.

News Release: Lion Receives the Minister of State’s Award in the Good Practices of Consumer-Oriented Management Aw
ards

News Release: Kao and Lion Awarded the New Selection Committee Chairman’s Commendation in the Good Practices of Consumer-Oriented Management Awards

286

Lion Sustainability Website 2024

Summary of Customer Inquiries in 2023

The Consumer Service Center receives an enormous volume of customer inquiries every year. In 2023, we received

approximately 80,000 inquiries (excluding those sent to direct-to-consumer sales divisions), 99% of the previous year’s

volume. By content, questions about product use, retail outlets that carry Lion products, product quality, safety and othertopics accounted for approximately 80% of all inquiries, while complaints and inquiries regarding problems and similar
topics accounted for around 20%.

Going forward, we will continue aiming to provide an environment that facilitates customer inquiries while responding toinquires in a sincere and timely manner. Contact information for inquiries by phone or email is available on the customer su

pport [Japanese] page of Lion’s website.

Information regarding customer support is available here [Japanese].

Inquiries by Type (2023)

Information Provision Leveraging Customer Feedback

To be able to solve our customers’ questions and concerns anytime, anywhere—24 hours a day, 365 days a year, the customer

support page of Lion’s Japanese-language website offers answers and solutions to common customer questions andproblems as well as examples of products improved based on customer feedback, attracting considerable customer traffic.

In addition, we have introduced a service that allows customers to locate products and store locations, as well as a chatbot
program.

Going forward, we will continue to provide useful information to customers.

287

Lion Sustainability Website 2024

Product Q&A on Lion’s website[Japanese]

Product and store locator
service [Japanese]

Examples of products developed or improved based on customer feedback are available here [Japanese].

Proactive Utilization of Employees

Lion strives to hire and develop the necessary human resources and foster an open and frank corporate culture in order tocreate innovative products and services that provide a high level of value to customers.

Fostering a Corporate Culture that Leverages Customer Opinions

We are working to foster a corporate culture in which all employees think and act based on an understanding of thecustomer’s perspective.

We hold events for new graduate hires and product development staff, etc., in which they listen to recordings of customer

inquiry calls to experience hearing directly from customers. These events help participants understand the importance of

the Company’s contact points with customers and serve as an impetus to think about customer perspectives in their work.

Furthermore, we report on the status of customer inquiries at regularly conducted meetings with planning and development

departments and related divisions and operating sites (businesses and plants) and share such information internally.

Going forward, we will work to further enhance employee awareness in order to better provide products and services basedon customer perspectives.

Employees listen to recordings of customer inquiry calls

288

Lion Sustainability Website 2024

Leveraging an Understanding of Consumer Perspectives in Our Operations

We are working to foster a corporate culture in which all employees think and act based on an understanding of thecustomer’s perspective. As part of our response to Japan’s severe demographic graying, we have a set of equipment thatsimulates the physical conditions of old age on hand at all times at the Consumer Service Center. By listening to feedback

from our senior customers and wearing the simulation equipment while looking at product labels or holding productcontainers, we strive to deepen our customer insight and foster consideration and understanding of seniors and all
customers among our human resources. These insights and considerations are put to use in product development,
customer support and communications.

We are expanding the range of these efforts to include not only staff involved in product development, but thecommunicators that staff our phone lines, the Meisters of Daily Life engaged in communication efforts, and even new

employees.

Meisters of Daily Life using equipment that simulates old age

Initiatives to Provide Support that Satisfies Customers

We hold phone service training in which customer support phone operators learn the skills to quickly and accurately

understand and respond to the issues that customers seeking support have as well as a broad knowledge of Lion products

and related topics. Specifically, we offer training in which operators discuss a wide range of case studies to mutually

reinforce their skills, study groups focused on the health and living issues behind products, and training in pronunciation
and word choice to make themselves easier for customers to understand over the phone in order to enhancecommunication.

We have the results of these activities evaluated by a third party and strive to provide service that will better satisfy

customers.

289

Lion Sustainability Website 2024

Further Enhancing Quality and Customer Satisfaction

Lion monitors its corporate brand penetration with the help of a market research company. The survey shown below

examines the likelihood of product users recommending Lion products and services, the degree to which they feel they needsuch products and their desire to and their preferences at the time of questioning (for the purposes of the study, the Lion

product users targeted were male and female general consumers over the age of l6). We will continue to gather objective
data on customer opinions in order to provide high-quality products and services.

2018

Overall number of survey respondents

752

Of these, current product users

644

Response rate*2(%)

85.6

Recommendation rate*3(%)

43.6

2019

784

64l

8l.8

43.l

2020*1

783

2021

664

84.8
47.6

773

628

8l.2

40.0

2022

783

640

8l.7

44.7

Data from “Brand Strategy Survey,” Nikkei Research Inc.

*l Overall scores of hygiene product suppliers increased due to the COVID-l9 pandemic.

*2 Refers to the percentage of total survey respondents who reported that they currently use such products and services.

*3 Refers to the percentage of current users who intend to recommend the products and services.

290

Lion Sustainability Website 2024

Ensuring Product Safety and Reliability

Reinforcing the Provision of Information to Customers

Providing Useful Information for Daily Living and Promoting Educational
Activities

Lion actively engages in communication with consumers with the aim of expanding our creation and dissemination of

information that contributes to healthy and comfortable living.

* Specialists who research and provide information useful for comfortable, healthy living

Initiatives of the Meisters of Daily Life

Lion’s Meisters of Daily Life, career researchers with specialist expertise, are conducting the following activities in the fieldsof oral care, healthcare, hygiene, laundry and living care. Meisters of Daily Life research useful lifestyle information to makeeveryday life healthy and comfortable and share colorful living ideas through various media and events.

291

Lion Sustainability Website 2024

Communication with Customers through Workshops

Oral care workshop at a juniorhigh school (November 29, 2023)

Kaji x Kaji Happy Share Project Housework
sharing seminar co- hosted by Taito Wardand Lion (December 2, 2023)

Communication with Customers Using the “Lidea” Lifestyle Information Website
Lidea is a lifestyle information website aimed at inspiring curiosity about living habits andhelping users cherish each day by providing content about Lion products, the technologies

behind them, and approaches to daily living. The site provides accurate information that isuseful for consumers’ daily living, presented mainly by the Meisters of Daily Life, lifestyle
information specialists.

Going forward, Lion will continue to provide information useful for daily living through Lidea

and use the information accumulated through Lidea to deepen diverse forms ofcommunication with customers.

Lidea [Japanese] https://lidea.today/

Sustainability Communication Booklet

To help consumers easily and enjoyably understand Lion’s sustainability initiatives,

Lion has created a booklet titled “Foundation of Daily Life: In Numbers” (in Japanese).

The booklet uses numbers to illustrate a variety of social issues closely related to dailyliving and highlights the ways that Lion is working to help solve these issues throughproducts, educational activities and communications.

The booklet is distributed at events related to health, cleanliness and hygiene, and theenvironment, where Lion comes into direct contact with consumers.

292[Japanese]

Lion Sustainability Website 2024

Initiatives for Those with Visual Impairments

Lion has provided various information to those with visual impairments.

The Roots of Our Information Provision

Across Japan, Lion provides everyday household goods, such as detergents,

toothpastes, toothbrushes, shampoos and household cleaners. We believe it is our

mission to provide such products as well as clear information about them to all
customers.

The Roots of Our Information Provision [Japanese]

Sawatte Wakaru Tooth Brushing Book

In collaboration with Dai Nippon Printing Co., Ltd., Lion published the Sawatte Wakaru

Tooth Brushing Book, a health guidebook incorporating universal design with tactile
diagrams for the visually impaired.

Sawatte Wakaru Tooth Brushing Book [Japanese]

Making Products Barrier Free

The page below highlights products developed incorporating a barrier-free perspective
and products that visually impaired customers have commented are convenient basedon their actual usage experience.

Making Products Barrier Free [Japanese]

Timeline of Initiatives

The page below provides a timeline of Lion’s initiatives aimed at addressing the needsof those with visual impairments.

Timeline of Initiatives [Japanese]293

Lion Sustainability Website 2024