INTEGRATEDREPORT

2023

Morinaga Group For the Fiscal Year Ended March 31, 2023

5-33-1 Shiba, Minato-ku, Tokyo 108-8403
https://www.morinaga.co.jp/company/english/
Inquiries
Sustainable Management Division
TEL +81-3-3456-4351 FAX +81-3-3451-3625

2030 Vision

The Morinaga Groupwill change into a Wellness Company in 2030.
We will further evolve reliability and technology building on our 120-year history to support people’swellness lifestyles in all generations worldwide.

Three values
to provide

Health ofmind

Health ofbody

Healthofenvironment

The Morinaga Group defines “wellness” as“the state of realizing or pursuing an enriched
and glorious life on the basis of health of mind,
body, and environment.” By providing the threevalues of “health of mind,” “health of body,”

Values areprovided forand “health of environment” to the three

Customers

Employees

Societystakeholders of customers, employees, andsociety, the Morinaga Group will achievesustainable growth.

Contents
Introduction
Corporate Philosophy

46 Structural Reforms of Production Functions

04 The Morinaga Group’s Commitment and Efforts to Resolve

48 DX Strategy

06 Message from Top Management
12 Special Feature: Value Co-Creation Story—Resolving Social
Issues through the “in-” Business

Our Mission(Purpose)

Our Visions(Vision)Our Commitments(Value)The Code of Conduct andStandards of Behavior

Delicious, Fun, and Healthy

49 Human Resources Strategy
52 Special Feature: Employee Roundtable
Discussion—Toward Achieving Our 2030 Vision
Sustainable Management

16 Financial and Non-Financial Highlights

55 Approach to Sustainable Management

Future Vision and Path to Achieve It

56 Promotion of Health Management

18 The Morinaga Group’s Materiality

58 Sustainable Value Chains

The Morinaga Group will continue tocreate healthy foods that can be enjoyedbeyond generations, thereby bringing smiles to thefaces of people around the world now and in the future.

20 Value Creation Process for Achieving Our 2030 Vision

60 Conserving the Global Environment

22 Strategic Road Map for Achieving Our 2030 Vision

64 Initiatives for Human Rights

24 Long-Term Business Plan: 2030 Business Plan

Governance

26 Medium-Term Business Plan: 2021 Medium-Term Business Plan

66 Messages from Outside Directors

Good quality

Act globally

Value Creation Strategy

68 Corporate Governance

Expand the scope andpossibilities of activities

29 Message from the CFO

74 Compliance and Risk Management

34 “in-” Business

76 Executive Management Team

36 Direct Marketing Business

Financial Performance

38 U.S. Business78 11-Year Financial and Non-Financial Summary

40 Frozen Desserts Business

80 Financial Summary

Only-one value

Pursue quality with integrity Create new value and inspiration

Link together

Sustainable society

Strengthen relations of trust with stakeholders

Contribute to a sustainable society

Give first priority to customers

Al tru is m

Corporate
Message

44 R&D Strategy

02 At a GlanceSocial Issues through Business

The Morinaga Group’s
Corporate Philosophy

42 Confectionery and Foodstuffs BusinessBe a pioneer

88 Corporate Profile/Stock Information/

Have an indomitable spirit
Value ties between people
Align our business imperatives with social challenges

The Morinaga Group’s Corporate Philosophy is composed of Our Mission, Our Visions, and Our Commitments.
Our Mission states how the Group will contribute to society. Our Visions comprise the five visions that we will pursue toward
the future. Our Commitments represent the values that we have developed during the more than 100-year history since thefounding of the Group and will continue to uphold as our firm belief for many more years to come. To describe the essence ofThird-Party Assurance
Cautionary Statement about Forward-Looking Statements
This report contains forward-looking statements on such matters as the Morinaga Group’s plans, strategies, and business performance.
These statements are based on judgments made using information obtainable at present. Consequently, actual performance could vary
greatly from forecasts because it is subject to various risks and uncertainties. Elements affecting forward-looking statements include
the economic environment surrounding the Morinaga Group’s business domains, competitive pressures, relevant laws and regulations,changes in the development status of products, and fluctuations in foreign exchange rates. However, elements affecting future forecasts
are not limited to these. Furthermore, the Company applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29,
March 31, 2020), and other regulations, from the beginning of the fiscal year (FY) ended March 31, 2022. The figures for FY2020 are fromafter retroactive application of the said accounting standard.

our corporate philosophy in one expression, it is “Delicious, Fun, and Healthy.”Morinaga Group INTEGRATED REPORT 2023

01

Future Vision andPath to Achieve It

Introduction

Value Creation
Strategy

Sustainable
Management

Financial
Performance

Governance

At a Glance
The Morinaga Group engages in the confectionery and foodstuffs business, thefrozen desserts business, the “in-” business, and the direct marketing businessin Japan, and in the food manufacturing business overseas mainly involving
the U.S. business. Particularly, we aspire to drive the entire Group’s
growth, defining four businesses—the “in-” business, the direct
marketing business, the U.S. business, and the frozen desserts
business—as the focused domain categories.

Net Sales and Operating Income (FY2022)*5

Morinaga Group

Morinaga GroupNet sales

Operating income

194.3

15.2

The Morinaga Group Today
Strategic Business Categories
Main Products

Net Sales/Operating Income

Confectionery & Foodstuffs Business*1(Billion yen)

■ Net sales

73.3

72.4

Operating income

74.3

6.1
3.2

HI-CHEW

Milk Cocoa

2020(Billion yen)Frozen Desserts Business■ Net sales

40.1

38.4

4.8

7.4

Choco Monaka Jumbo

Ita Choco Ice

2020(Billion yen)Japan

“in-” Business*1

2021

2021

■ Net sales

28.0

23.6

1.5
2022(FY)
Operating income

40.5

3.4

6.8

7.0

in BarDirect Marketing Business

2020

2021

2022(FY)(Billion yen)

■ Net sales

9.1

7.4

Oishii Collagen Drink

Operating Subsidiaries and Others

0.6

0.6

2020

2021

2022(FY)■ Net sales

15.0

13.4

0.5

Aunt Stella Inc./
Assorted cookies

U.S. Business*

10.2

0.3

(Billion yen)

Morinaga Market
Development Co., Ltd./
Assorted confectioneries

Operating income

16.9
0.7

(0.7)
2020
(Billion yen)

2

2021

■ Net sales2022(FY)
Operating income

14.6
10.5

Overseas

7.2

ChargelChina, Taiwan, Exports, etc.

2020
(Billion yen)

1.4

2021

2022(FY)■ Net sales

5.7
4.5

HI-CHEW (China)

in Jelly Products (Taiwan)

Operating income

7.0
0.5

0.3

0.0
2020

*1 Products including candies, chocolates, and others in the “in-” brand are included in theconfectionery and foodstuffs business.
*2 Includes profits relating to exports bound for the United States from China and Taiwan.

02

1.4

1.0

HI-CHEW

2021■ Frozen Desserts Business■ “in-” Business■ Direct Marketing Business■ Operating subsidiaries and others

We are working to create new value aimed at “health of mind and body” throughfoods. in Jelly, which replenishes nutrition anywhere and anytime based on sports
science theory, has maintained its top share in the jelly drink market for 28 years.
Our product initiatives in the “in-” brand are meeting the health needs of various
lifestyles in modern society.

■ China, Taiwan, and exports, etc.

38.2%
20.9%
15.7%
5.3%
8.7%
7.5%
3.6%

Operating income%: component ratio■ Confectionery and Foodstuffs Business■ Frozen Desserts Business■ “in-” Business■ Direct Marketing Business■ Operating subsidiaries and others■ U.S. Business■ China, Taiwan, and exports, etc.

10.1%
22.6%
46.1%
4.3%
4.8%
9.7%
3.7%

Reach of the Morinaga Group (as of March 31, 2023)*6

Operating income

Oishii Aojiru**Aojiru is a Japanese vegetable beverage%: component ratio■ U.S. Business

Operating income

30.6

Net sales■ Confectionery and Foodstuffs Business

Our strength is found in products made with the Group’s unique confectionery
technologies in sub-zero temperatures such as in our top brands of Choco
Monaka Jumbo, which was released more than half a century ago, and Ita
Choco Ice, featuring the shape and texture of a chocolate bar. By concentrating
management resources on mainstay brands, we are implementing effective
marketing and achieving steady business growth.

2022(FY)

4.5

in Jelly

We are constantly creating new and delicious food solutions pivoting on our
long-selling brands such as Morinaga Biscuits, HI-CHEW, Choco Ball, andMorinaga Cocoa. Capitalizing on our proprietary food processing technology
cultivated over more than 120 years since our establishment and the resultsof our research and technological development related to ingredients, we areworking to provide products that benefit health of mind and body aimed at
becoming a wellness company.

billion yen

billion yen

Business Overview/Strengths2022(FY)

We support customers’ wellness lifestyle by directly bringing products with both
function and deliciousness to consumers. Oishii Collagen Drink, which is soldexclusively in the direct marketing channel, has sold more than 300 million units
to date*3, making it the best-selling collagen drink in Japan*4. In addition, we areworking to develop Oishii Aojiru as a product set to become the next importantpillar of our business in the future.
Aunt Stella Inc. manufactures and sells cookies and other products and operates
restaurants. Morinaga Market Development Co., Ltd., sells confectioneries
and foods to theme parks and companies as well as sells imported products.
Morinaga Shoji Co., Ltd., develops and markets commercial-use food ingredients.
Morinaga Institute of Biological Science, Inc., researches, develops,
manufactures, and markets food allergen test kits and other products. For otherbusinesses, we own real estate rental properties and manage a golf course.
In the U.S. business, we are expanding HI-CHEW, which has a real fruity taste andunique texture that has been embraced by customers in the United States. We areworking to expand the HI-CHEW brand while developing new products that provide
wellness value tailored to the needs of local customers and releasing products in
new packaging formats. Chargel, a jelly drink developed for the U.S. market, wasreleased in 2022. We are working to create a market in the United States for jelly
drinks harnessing the business foundation established with HI-CHEW.
Including global expansion of HI-CHEW, we deliver products with unique texture andtaste based on our long-standing technologies cultivated in our domestic business tocustomers around the world together with the Morinaga Brand and our Corporate
Message of “Delicious, Fun, and Healthy.” In Taiwan, in Jelly was launched in 1999
and is sold in response to rising health awareness. It is also sold in Hong Kong andSingapore. We are also working to tap into new markets while expanding wellness
products such as Oishii Collagen Drink in China via e-commerce.

*3 Includes the Oishii Collagen Drink series and products before and after the updating of existing products, as of October 2021
(survey by Morinaga & Co., Ltd.)*4 Source: H.B. Foods Marketing Handbook 2023 No. 1, Fuji Keizai (beauty effect/collagen category/2021 results), for the Oishii
Collagen Drink series, including products before and after the updating of existing products.

North America

Morinaga Group19

companies

Group companies: 2

Employees

Employees: 271

3,076

Morinaga America Foods, Inc.

Shanghai Morinaga Co., Ltd.
Morinaga (Zhejiang) Co., Ltd.
Morinaga America, Inc.
Morinaga Asia Pacific Co., Ltd.
Morinaga Bioscience (Thailand) Co., Ltd.

Taiwan Morinaga
Co., Ltd.

Japan
Asia (excluding Japan)
Group companies: 5
Employees: 399[Morinaga & Co., Ltd.]Business locations: Head Office,
1 R&D center, 4 factories,
and 2 supervising branches
Employees: 1,472[Group companies] 11
Employees: 934*5 Breakdown of operating income contains -1.3% as an adjustment excluding the above.
*6 Listed consolidated companies and non-consolidated companies accounted for using the equity
method. Employees represent the total for consolidated companies.

Morinaga Group INTEGRATED REPORT 2023

03

Future Vision andPath to Achieve It

Introduction

Value Creation
Strategy

Sustainable
Management

Governance

Financial
Performance

The Morinaga Group’s Commitment andEfforts to Resolve Social Issues through Business
Under the commitment of its founder, the Morinaga Group has been consistently providing customers
with new value and inspiration, while responding to changes of the times and those in the lifestyles ofcustomers. Through continuing to make food that helps to keep people’s minds and bodies healthy,
from today to tomorrow and from one generation to the next, we will continue to bring smiles to thefaces of people around the world.

Founder’s commitment

For our employees

1899 Establishment
Paving the way for the modernizationof Japan’s confectionery industry

1919
Introduction of theeight-hour workday

The Morinaga Group was established based on thecommitment of its founder, Taichiro Morinaga, wholearned confectionery manufacturing techniques in
the United States, to deliver highly nutritious anddelicious Western confections to the people ofJapan. The company created a foundation for the
confectionery business in Japan such as mass
production with machinery and mass sales throughsales networks and advertising, and spread
Western confections nationwide in the process.
In 1918, we became the first in Japan to begin
integrated production of chocolate from cacao
beans. Through huge capital investments andthe introduction of advanced technologies wemanaged to overcome several challenges andhelp popularize chocolates in Japan.

Having valued the spiritof co-existence andco-prosperity, we have considered the health ofmind and body of our employees since 1919 when
we introduced the eight-hour workday. We alsoestablished the Morinaga Health Insurance Society
in 1926. This management stance has been passed
down to the present day, and we were certified as a
Health & Productivity Management Outstanding
Organization for 2023 (Large Enterprise Category).

1905
Registered our first symbolic trademark
We registered our first symbolic trademark to set ourselves apart from low-quality
knockoffs. Our belief in quality, that is, “not allowing containers with raised bottoms forthe sake of appearance” and “adopting individual packaging to protect quality,” has been
passed down since our establishment.

Delivering deliciousness and smiles to people around the world
The Morinaga Group has created new value pivoting on technology developed inconfectionery manufacturing with the aim of resolving social issues through food. First,
we expanded the business of foodstuffs, frozen desserts, and health products focusing on
Japan. In recent years, we have also been accelerating the growth of our overseas businesscentered on HI-CHEW. In 2022, we launched Chargel, aiming to create a market for jelly
drinks in the United States.
We continue to take on the challenge of realizing richer and healthier eating habits forpeople around the world.

Short Stories Symbolizing Our Commitment

For our customers

Aiming to Resolve Social Issues through Food

For society
2008
Launched the
One Chocolate for
One Smile campaign
Since 2008, we have used proceeds from productsales to fund initiatives to improve the educational
environment for children and future generations
and address child labor issues in cacao-producing
countries such as Ghana. Our commitment is to“pave the road to the future with the smiles of bothpeople who eat chocolate and the children being
educated in cacao-producing countries.”

Looking back on our history and ahead to the future, we formulated a new corporate philosophy in 2021. In this corporate
philosophy, we redefined our commitment nurtured over our more than 120 years in business in the form of “Our Commitments(Value).”* With these commitments, we will contribute to the realization of a sustainable society through our business.
*Give first priority to customers, Be a pioneer, Have an indomitable spirit, Value ties between people, and Align our business imperatives with social challenges. See page 1 for details of our corporate philosophy.

1913

1994

2022

Spreading Highly Nutritious
Confections

Creating New Foods
in Response to Consumer Needs

Bringing Delicious and
Healthy Foods to the World

Released Milk Caramel

Released in Jelly

Released a health-conscious
version of HI-CHEW

At a time when Japan faced a challenging
food situation, we aimed to popularize
caramel, which offers high nutritional value.
After repeated trial and error to adapt to theclimate and tastes of Japan, we released
Milk Caramel in 1913. The following year, in
1914, Milk Caramel became a major hit after
we packaged it in inexpensive and portablecontainers. With the slogan of “rich innourishment/exquisite flavor,” Milk Caramel,
which symbolizes the founder’s commitment
to popularize caramel, is now beloved acrossgenerations.

Released in 1994, in Jelly was developedwith the goal of helping to create a healthy
body. At that time, this jelly drink in a pouchwith unparalleled portability delivered quick
nourishment in various situations. It also led
to the creation of a new food culture andmarkets. Even now, in Jelly continues to
evolve while responding to the needs of thetimes for simplifying food and maintaining
health.

HI-CHEW is known for its unique texture
and fruitiness and is growing in popularity
around the world. In 2022, we released
HI-CHEW REDUCED SUGAR in the UnitedStates featuring added wellness value. By
using dietary fiber as an alternative to sugar,
we lowered the amount of sugar usedby 30% compared to the conventional
HI-CHEW while maintaining the same taste.
Leveraging our strengths in productdevelopment, production, and mass
production technologies, we provide value
and inspiration to people around the world.

History of creating foods and Morinaga’s main brands
Brands more than a century old

1913
Milk Caramel

1919
Milk Cocoa

Brands more than 50 years old

1923
Marie

1957
Morinaga Hotcake Mix

1967
Chocoball

Brands more than 30 years old

1971
Koeda

1972
Choco Monaka
Jumbo

1973
Morinaga
Ramune1974
Morinaga Amazake(canned)1975
HI-CHEW

1982
OttottoBrands more than 10 years old

1989
Ice Box

1993
DARS

1994
in Jelly

2003
Carré de chocolat

2006
OishiiCollagen Drink2009
in BarNote: Product names and images as of September 2023.

04

Morinaga Group INTEGRATED REPORT 2023

05

Introduction

Future Vision andPath to Achieve It

Value Creation
Strategy

Sustainable
Management

Governance

Financial
Performance

Message from Top Management

The Morinaga Group will change into a Wellness
Company in 2030 by accelerating reforms andstrengthening its business foundation.

Eijiro Ota
Representative Director, President

Looking Back on FY2022
Posted the Second Consecutive Year of Record High Net
Sales Despite the Challenging Operating Environment
FY2022 saw several alarming events throughout the year. In addition
to the COVID-19 pandemic, raw materials and energy prices soared
due to heightened geopolitical risks, which, combined with thesignificant depreciation of the yen, led to a higher-than-expected
increase in the cost of business. These changes in the external
operating environment will persist, and the pace of these changes
is expected to speed up.
Despite these challenges, the Group was able to achieve record
high net sales* for the second consecutive year thanks to its accurate
understanding and response to changes in consumers and the strong
sales of the U.S. business. On the other hand, to secure operating
income, we successfully offset most of the 7.8 billion yen increase incosts. This was made possible through the effects of price revisions,increased sales, and Company-wide efforts such as pursuing low-cost
operations in production to absorb higher costs. Although profitability
remains an issue, the ratio of sales in the focused domains and theratio of overseas sales far exceeded the targets set in the 2021
Medium-Term Business Plan, and we were able to improve ourbusiness portfolio while achieving strong growth.
Over the medium to long term, we are working to secure net sales
and operating income, while increasing corporate value through theenhancement of functions that contribute to heightened productivity
and proactive investments in intangible assets. We are strategicallyinvesting in advertising to accelerate growth, mainly in the focuseddomains. With the aim of improving profitability by optimizing
operational efficiency, we are also promoting several other efforts.
These include the visualization of factory operation status, thechangeover to smart factories with even more stable operation using
the digital data of manufacturing equipment, and the development ofa data utilization infrastructure by revamping the direct marketingsystem. To realize the 2030 Vision, we will continue to invest in
growth that leads to the enhancement of corporate value.
*Accounting Standard for Revenue Recognition applied retrospectively.

Looking Toward the Final Year of the2021 Medium-Term Business Plan
As a result of these initiatives, in FY2022 we were able to steadily
increase the top line, mainly in the focused domains, despite thechallenging operating environment. Our results exceeded the initial
forecast, and we posted record high sales for the second consecutive
year. Price revisions proceeded as planned, and I strongly feel thatmanagement resilience is steadily increasing.
On the other hand, operating income in FY2022 declined
significantly. The operating income to net sales ratio was 7.8% in
FY2022, compared with the target of 11% in the 2021 Medium-TermBusiness Plan. Although we had not achieved our ROE target as of
FY2022, we are determined to proactively recover to the targeted
10% level in FY2023.
FY2023, the final year of the 2021 Medium-Term Business Plan,
represents an important year that will lead to the next Medium-TermBusiness Plan, and we will work together to strengthen our efforts toachieve our targets.

Instilling Our Corporate Philosophy and Promoting
Internalization in Realizing the 2030 Vision

06

Formulated Corporate Philosophy, Purpose,and the 2030 Vision

Initiatives for Realizing the Corporate Philosophy
and the 2030 Vision

When I became President in FY2019, we posted record high profits,
but we faced a difficult situation with the outbreak of the COVID-19
pandemic at the end of the fiscal year and a significant decline insales of our mainstay brand in Jelly. Based on the belief that acompany with a clear purpose and vision has the resilience tocontinue to grow flexibly even in the face of dramatic environmental
changes, I have been formulating a long-term vision for the next 10
years alongside our new purpose since becoming President.
In FY2021, we announced our corporate philosophy, including our
Purpose, and the 2030 Vision, which is to change into a Wellness
Company in 2030.

To form an organization that continues to grow while responding tochanges, it is essential to clarify our corporate philosophy and visionand ensure that they are firmly instilled in each individual who
supports the organization. To avoid these becoming an empty
catchphrase or slogan, we held more than 70 meetings to exchange
opinions with approximately 1,700 employees in Japan and overseas
since the plan was formulated in May 2021. At the beginning of these
discussions, employees asked many questions to better understandthe content of the Vision, such as “What does it mean to change intoa Wellness Company?,” but gradually this changed into questions
about the definition of “health of mind” and specific strategies forrealizing the vision, such as how to effectively communicate wellness
to consumers. Regarding “health of mind,” we have set the target as
Morinaga’s six building blocks for “health of mind” (Kokoroku, kokoro
Morinaga Group INTEGRATED REPORT 2023

07

Future Vision andPath to Achieve It

Introduction

Value Creation
Strategy

truly great asset for my subsequent sales career and current role inmanagement as I took on multiple roles at the Himeji Branch Officeand experienced a wide range of on-site work such as delivery andsales. Based on my own experience that “experience will come inhandy later,” we make personnel changes centered on humanresources who will play a central role in the future and have them

Sustainable
Management

Governance

Financial
Performanceexperience fields completely different from those in the past. We
believe that the experience of working in a new place will not only
contribute to individual growth but also create new challenges toreach even greater heights. We will continue to work on humanresources, corporate culture, and organizational development topromote diversity.

Addressing Various Issues to Achieve the 2030 Business Planmeans mind and roku means six in Japanese) and organize seminars
to promote awareness throughout the Company to deepen common
understanding within the Company.

Kokoroku as the definition of “health of mind”
Positive
emotions
Relaxing
andfeeling
at ease

Feeling a
sense ofaccomplishment

Accomplishment

Smilingandfeelingenergetic

Healthofmind
Feeling
fully
engagedMeaningFeeling a
sense ofmeaningin life

RelationshipFeeling
connected
topeopleKokoroku
Morinaga’s six

Engagement building blocks

for health of mind

Increasing happiness in asustainable manner by satisfying
one or more of the conditions below

1 Smiling andfeeling energetic
2 Feeling a sense of
meaning in life
3 Feeling connected
to people
4 Feeling fully engaged
5 Feeling a sense ofaccomplishment
6 Relaxing and feeling at ease

Assumption:
Healthy state of mind. Not eligible for mentally unhealthy conditions.

Two years after the formulation of our corporate philosophy,
we surveyed our employees in Japan regarding it. About 90% of
employees empathize with and understand the corporate philosophy,
and about 60% feel that they have been able to internalize thecorporate philosophy. Our corporate philosophy and Purpose resonate
strongly with our employees outside Japan, too. During the opinion
exchange meetings with local employees held in the United States,
Taiwan, and Thailand last year, we were able to engage in active
dialogue in each location, focusing on questions with a high levelof ownership, such as “What should we contribute to realize our
purpose?” This left a strong impression on me. Looking ahead, we
expect our employees in Japan and overseas to deepen mutual
exchanges and motivate each other, thereby further instilling thecorporate philosophy and promoting internalization.

08

important for each and every employee to demonstrate theirpresence as an independent and strong individual, and to create
diverse and dynamic organizations that are strong and flexible enoughto make the most of each individual. We have established thepromotion of diversity and inclusion as one of our basic policies forrealizing the 2030 Vision. The goal is to create new value from theinnovation generated by diversity. I believe that by continuing tosolve the issues of our customers and society through continuous
innovation, we can be a sustainable company that continues to growand be chosen by customers.
As one specific example, we started an open recruitment system
for new businesses in 2020. We would like to foster a culture inwhich our employees take on challenges regardless of age or career,embrace mistakes in a positive light, and make efforts to pass ontheir lessons learned to the next generation.
Various milestones became opportunities for my own growth. In
my fifth year with the Company, I was transferred from the Yokohama
Branch Office, which had about 50 employees when I was first hired,to the Himeji Branch Office, which had only about seven at the time. I
was disappointed because I used to believe that I would have greater
opportunities working in a larger branch. However, it turned into a

Progress and Outlook of the2021 Medium-Term Business Plan

The Further Growth of the U.S. Business

In FY2022, despite the sudden and larger-than-expected surge in raw
materials and energy prices, coupled with the impacts of foreignexchange rates, we strategically increased investments in intangible
assets, resulting in lower profits than the previous fiscal year. In
terms of net sales, however, our performance in the focused domains
in the 2030 Business Plan, including the “in-” business, the U.S.
business, and the direct marketing business, continued to perform
well. This steady growth contributed to achieving record highnet sales of 194.3 billion yen and steadily increasing the top line,
achieving record high net sales*1 for the second consecutive year,
exceeding the initial forecast, and achieving the target of 190.0 billion
yen for the final year of the 2021 Medium-Term Business Plan one
year ahead of schedule. FY2023 marks the final year of the first stage
toward achieving the 2030 Business Plan. Although we anticipate
soaring raw materials and energy prices to significantly exceed
our expectations compared to when we formulated the 2021
Medium-Term Business Plan, we will continue to flexibly respondto changes in the external operating environment through various
initiatives and achieve increased net sales and profits in FY2023.

The U.S. business is a major driver of the Group’s growth strategy.
We have continued to actively invest in its expansion. In the U.S.
business, we had set a target to reach net sales of 10 billion yen
in the 2021 Medium-Term Business Plan, but we already achieved
this target in FY2021, and in FY2022, due to the impact of foreignexchange rates, we saw net sales surge 39% year on year to 14.6
billion yen. Since we established operations in the United States in
2008, we have achieved dramatic growth.
On my business trip to the United States last year, I saw HI-CHEW
on the shelves of not only Japanese supermarkets but also local
American grocery chains. As of the end of September 2022, therecognition rate of HI-CHEW in the United States was 51%*2,
indicating that brand awareness has increased among local
consumers and is becoming more established in the marketplace. Asof December 31, 2022, the distribution ratio was 77.4%*3, covering awide area throughout the United States, and the retail store turnoverratio was up 14%*4 compared with the previous year, signifying thestrong sales situation. Even so, our market share was just 1.24%*3
as of December 31, 2022, so I still feel that there is great potential for
growth. Looking ahead to 2030, we will further increase sales andFinancial and Non-Financial Targets for 2030
Non-Financial Targets

Financial Targets*1
Net sales

300

Provide value of health to 70% or more of theJapanese population through new initiatives
aimed at becoming a wellness company*5

billion yen

Operating income
to net sales ratio

12%

or higher

Ratio of employees who find theirjob meaningful and who are in goodmental and physical health at work

Promoting Diversity &Inclusion and Creating Innovation

Overseas sales ratio

15%

Procurement ratio ofsustainable raw materials

An organization is made up of people. It all comes down to “people”
for achieving the vision and responding to change. I believe that it is

Focused domains’sales ratio

Dialogue session at Morinaga America Foods, Inc.

or higher

60%(cacao beans, palm oil, and paper)

CO2 emissions

80%*6
100%*730%*8reduction*1 The Company applied the “Accounting Standard for
Revenue Recognition (ASBJ Statement No. 29, March
31, 2020),” and other regulations, from the beginning of
FY2022.
*2 According to Morinaga’s research*3 IRI data
*4 IRI data (January to December 2022)*5 Scope: Products defined as a deep dive into “health ofmind,” accelerate “health of body,” and evolve “healthof mind” to “health of body.” Population percentage
calculated based on INTAGE Inc. SCI annual purchaserate (scope: consumers nationwide between the agesof 15 and 79). The Company intends to explore theestablishment of a vision on a global basis.
*6 Ratio of affirmative answers on the employee
awareness survey*7 Consolidated basis. Paper covers only productpackaging.
*8 Scope 1 + 2 (domestic Group consolidated basis;compared with FY2018)

Morinaga Group INTEGRATED REPORT 2023

09

Introduction

marketing of HI-CHEW and accelerate growth by making strategic
investments in advertising, while focusing on building the foundation
for the jelly drink Chargel, which was launched in the United Statesin February 2022. Chargel is now sold at Japanese supermarkets,mainly on the West Coast, and we are working to raise awareness ofChargel in the sports scene through free sampling at marathons andcycling events, and we are seeing positive results. In addition, we areconsidering launching new products as potential candidates for thethird arrow of earnings by the end of FY2023.

Achieving Growth Globally
Positioning the further global expansion of HI-CHEW as a growth
driver in the future, we established the HI-CHEW Global Branding
Office at our headquarters in April 2023. The Group’s overseas
expansion of HI-CHEW started in Taiwan and China ahead of theUnited States, and since then we have expanded these efforts toother countries such as Indonesia and various European nations.
However, in the 2030 Business Plan, we clarified that the “U.S.
business,” rather than the “overseas business,” is in the focuseddomains and Taiwan is in the basic domains, whereas China,
Southeast Asia, Oceania, and Europe are considered exploration andresearch areas. This strategy stems from our experience of developing
businesses in various regions, and we have identified areas where
HI-CHEW is highly accepted based on differences in climate,consumption behavior, people’s religion, culture, and other factors.
As a result of market development focused on the United States,
HI-CHEW has gained the substantial support of many customers andhas become firmly rooted in the U.S. market. At the same time, theacceptance of HI-CHEW is increasing in Oceania and Europe, whereseeds have been sown. To further expand HI-CHEW globally, there arechallenges in terms of production capacity and global procurement of

raw materials that we need to address. Therefore, the HI-CHEW
Global Branding Office will proceed with the development of an
optimal global system and the formulation of an integrated marketingstrategy for the HI-CHEW brand.

Capital Cost-Conscious Management
To achieve the 2030 Business Plan, we recognize that improving
profitability and efficiency is also a major challenge that we are
currently working to address. In FY2022, we implemented various
financial measures with a focus on capital costs and significantly
reduced our net cash position at the end of the fiscal year, marking
a decrease of 29.2 billion yen from the end of FY2021. To carry out
business structural reforms and further scrutinize investment plans,
we are promoting ROIC management to strengthen our profit
structure and raise awareness of investment efficiency. Recognizing
the important role of employee understanding in ROIC management,
we distributed our own video-based learning materials. By
understanding how the work of each individual impacts ROIC,
we support the “internalization” of ROIC management.

Creating Opportunities for Inorganic Growth
We aim to achieve inorganic growth in the runup to 2030. We are
specifically considering various projects with a view to businessgrowth in a non-continuous manner through M&A and businessalliances. In the focused domains, with growth markets but fierce
competition, we are actively seeking partner companies that
can accelerate the growth of the Group. From the perspective of“changing into a Wellness Company,” we are exploring various
investment opportunities including expertise in manufacturing healthingredients and functional foods, the procurement of raw materials,
and the development of new products for our Direct Marketingbusiness.

Future Vision andPath to Achieve It

Value Creation
Strategy

Sustainable
Management

Governance

Financial
Performance

Co-Creation with Stakeholders for Resolving Social Issues
Co-creation with stakeholders is indispensable for resolving social
issues. Currently, we are moving ahead with co-creation efforts invarious fields.
Through co-creation with more than 90 universities and research
institutes, and other companies, the Morinaga R&D Center isworking to elucidate the emotional value of confectionery foods that
contribute to “health of mind.” This involves utilizing various methods,
such as investigating aspects like deliciousness and enjoyment,
to develop and offer high-value-added products. For example, in
the Group’s strength in “physical properties and texture control
technology,” which is utilized in Choco Monaka Jumbo and HI-CHEW,
we aim to develop products with high emotional value. We aim todeepen our understanding of customer preferences by incorporating
the methods of sensitivity research to capture changes in the bodyand emotions during eating. The results of research on Choco
Monoka Jumbo are being widely disseminated externally as partof the Jumbo Smile Project*.
We have also been updating our business and human rights
initiatives to strengthen our foundation as a company with global
business operations. The Group signed the UN Global Compact inApril 2022, and in October 2022 we joined the Japan Center for
Engagement and Remedy on Business and Human Rights (JaCER) as
an inaugural member to establish a mechanism for remedying humanrights violations outside the Company. In April 2023, we revised theMorinaga Group Human Rights Policy and are now promoting humanrights initiatives such as clarifying the Group’s approach in linewith the UN Guiding Principles on Business and Human Rights. In
addition, we believe that sustainability initiatives, such as sustainableprocurement of raw materials and addressing climate change issues
and managing natural capital, are important for the Group’s corporate
activities. We believe that collaboration and cooperation with ourbusiness partners and other stakeholders are essential for the
implementation of these activities, and we will advance these
activities with their understanding and cooperation. Awareness of theSDGs and the environment is increasing, especially among young

people, and we believe that steadily advancing these initiatives will
not only benefit society but also create business opportunities for
the Group.
The 2030 Vision declares that we will provide “health of mind andbody” to our employees. We are promoting health and productivity
management to create a work environment where each employee
can maximize their abilities, and have been recognized as a CertifiedHealth and Productivity Management Organization 2023. The trainers
at the “in” Training Lab have created the Morinaga Factory Exercise
program tailored for our factory workers. In addition, our efforts toencourage voluntary activities for the well-being of all employees
have been recognized, earning us new certification as a “Sports Yell
Company 2023” by the Japan Sports Agency. We will continue toactively promote initiatives to maintain and improve the health of ouremployees as important stakeholders.
At the Sustainability Advisory Board meeting in March 2023, we
discussed with experts the three topics of diversity, health of mind,
and ESG information disclosure. We received positive feedback thatwill give us confidence regarding the initiatives I briefly explained
above. With advice and recommendations on the Group’s initiatives
based on a wide range of knowledge, including international
developments and social trends, we will now appropriately reflect
these insights in future sustainable management, thereby leading to
the creation of new value for the Group.

Second meeting of the Sustainability Advisory Board*An initiative launched in the spring of 2023 to enhance communication with customers with the goal of marketing Choco Monaka Jumbo as an ice cream product that brings smiles to all.

Aimed at Embodying Our Purpose and Realizing the 2030 Vision
With the aim of shining for a century, the Morinaga Group iscommitted to being a sustainable company that will continue to growtogether with our stakeholders while enhancing resilience and ourability to flexibly respond to changes. In FY2023, we will achieve a
V-shaped recovery in operating income while continuing to invest in
growth such as R&D and DX and hold discussions to formulate thenext medium-term business plan.
For shareholders, we increased dividends and initiated sharebuybacks for the eighth consecutive year, marking the largest

shareholder returns ever. We will continue to value dialogue withshareholders, investors, and all stakeholders to accelerate the speedof transformation and achieve further growth and evolution. With our
Purpose serving as our compass, and as the foundation for all
employees, we will strive to become a Wellness Company that cancontribute to the dynamic and bright lives of people around the world.
I appreciate your continued support as we move forward.

The Morinaga booth at the Sweets & Snacks Expo in Chicago

00
10Morinaga Group INTEGRATED REPORT 2023

11

Future Vision andPath to Achieve It

Introduction

Special Feature

Value Creation
Strategy

Sustainable
Management

Financial
Performance

GovernanceValue Co-Creation Story

Resolving Social Issues
through the “in-” BusinessThis section introduces the Group’s story of value co-creation detailing
how the “in-” business, which drives our growth, identifies social
issues related to “health of mind, body, and environment” andhow it works together with stakeholders to resolve them.

We Will Change intoa Wellness Company

Realizing the 2030 Vision by Providing

Minoru Sato
Executive Officer
General Manager of HealthMarketing DivisionMarketing Headquarters“Health of Mind, Body, and Environment”

Three values
to provide

Values areprovided forwith many top athletes and sports stakeholders built over many yearsof support are also invaluable assets.
At the same time, as a food manufacturer, the Group has honed its
food processing technology to achieve deliciousness while thoroughly
blending nutrients, along with its product developing capability suchas packaging formats tailored to different occasions.

By combining the strengths of the “in-” business with thestrengths of the Group, we intend to contribute to the “health ofmind, body, and environment” by providing customers and society
with deliciousness, convenience, nutrition, and information andopportunities related to sports.

71.8

opportunities for exercise also lead to fewer consumption
opportunities for in Jelly and in Bar, we are paying particular attention
to business opportunities for the “in-” business. In addition, theamount of physical activity in consumers’ daily lives is on a downward
trend due to fewer opportunities to go out with the entrenchment of
remote work and the increased use of online shopping, as well as the
spread of products and services that make housework convenient.
We believe if people continue with their current nutritional intake,there will be increased risk of lifestyle-related diseases such as
obesity. Furthermore, if the amount of physical activity by the elderly
remains low, the risk of frailty and nursing care increases due todeclining physical strength. For “health of body,” we believe that itis necessary to create opportunities for people to play sports anddevelop products that respond to changes in consumer behavior.
Regarding “health of environment,” we recognize thatenvironmental pollution caused by plastic waste is a global issue,
and we believe that the Group must act. Furthermore, to realize asustainable society, all people need to be aware of the SDGs and taketheir own actions. Nevertheless, although consumer awareness of
the SDGs is increasing, there are still relatively few people who are
acting. As a consumer goods manufacturer, we will contribute to

Customers

Employees

Societymind

Know-how of building a healthy
body and nutritional intake● Relationships with sports
stakeholders

Food processing
technology● Planning anddevelopment●●

in BarBaseball(Tokyo Yakult Swallows)
Masanori Ishikawa

Judo
Naohisa Takato

Surfing
Shino Matsuda©Kazuyuki OGAWA

Photo: ISA/Pablo Franco

Future Forecast Concerning “Health of Mind, Body, and Environment”
After three years of the COVID-19
No
pandemic, anxiety about the virus
28.2%
is declining, as seen by Japan’s
downgrading of the virus to a
Do you feelstressed?
Class 5 disease under the
Yes
Infectious Diseases Control Act%
in May 2023. However, there
are still many people who feel
Hakuhodo Institute of Life and Living:stressed in their daily lives. There“The Chronological Lifestyle Survey on
the Japanese People,” May to June
are various stressors, such as2022, men and women ages 20–69,
work, personal relationships,
Tokyo metropolitan area + Hanshin area,
3,084 respondents
caring for a family member,childcare, the social environment, and geopolitical concerns, whichhave resulted in increased interest in mental disorders. Ideas such as
positive psychology*, which focuses on positive emotions and aims
for a good state of mind, are also garnering attention. We believethat the importance of “health of mind” will continue to increase in
the future.
“Health of body” has also changed significantly due to the
COVID-19 pandemic. Participation in sports is declining because
people’s activities were restricted during the pandemic. As fewer

body

Healthofenvironment

Deliciousness, Convenience,
Nutrition, and Sports“in-” brand contract athletesin Jelly

Health ofMorinaga “in” Training Lab

Source of “in-” Business Competitiveness
Against the backdrop of growing health consciousness, the Grouplaunched the health business, the predecessor of the “in-” business,in 1984 to contribute to the “development of healthy minds andbodies” for customers centered on sports nutrition. Since the startof the business, we have created products such as in Jelly that caneasily replenish nutrition and in Bar Protein that can easily replenish
protein, helping to resolve issues facing customers in the domain
of food. In creating these products, we have made full use of ourknow-how gained from the health business over the years. The “in-”business has been amassing know-how related to building a healthy
body and nutritional intake for close to four decades, from theestablishment of a high-tech laboratory for training and nutrition
counseling in 1986 to the current Morinaga “in” Training Lab. We
believe that the know-how related to building a healthy body andconditioning gained by supporting top athletes in various sports is aunique asset and strength of the “in-” business. The connections

Health ofTotal Score of the New Physical Fitness Test (points)“health of environment” by providing opportunities for customers towork together to achieve the targets of the SDGs.
Based on these situations and forecasts, we will utilize the assetsof the “in-” business as we work to provide “health of mind, body,and environment” to customers and society while co-creating withall stakeholders.

Sports Participation Rate (once a week or more) for Those
Aged 20 and Older (%)■ 2019 ■ 2022

20s–30s

43

35

41

34

40

33

39

32

38

31

37

30

36

29

35

28

34

40s–50s

36

42

Men Women Men Women
25–29
35–39

70

27

Men Women Men Women
45–49
55–59

Japan Sports Agency: 2019 Physical Fitness and Exercise Capacity survey; 62,936 men andwomen nationwide ages 6–79 (preliminary figures for 2022)

65
59.9

60
55.1

55

51.5

SDGs Recognition Rate (%)

56.4
53.6

52.3

50
45

■ 2019 ■ 2022

100

■ I know about the SDGs in detail80■ I have heard, but I don’t know

60
42.5

40

40

20

35
2016

2017

2018

2019

2020

2021

2022

Japan Sports Agency: FY2022 National Public Opinion Survey on Sports Participation; 40,000
men and women ages 18–79

0

86.0

about the SDGs in detail
54.2

51.8

91.6
51.2

33.8
29.1
16.0
40.4
14.8
19.1
34.2
20.5
11.1 3.6 11.8 4.2 10.0
Feb. 2018 Feb. 2019 Jan. 2020 Jan. 2021 Jan. 2022 Feb. 2023

Dentsu: Consumer Survey on the SDGs; first to sixth surveys, 1,400 men and women ages
10–70s nationwide (6,576 respondents in the second survey only)*The psychology that aims to nurture positive emotions, such as what is going well and looking to the future.

12

Morinaga Group INTEGRATED REPORT 2023

13

Introduction

Special Feature

Future Vision andPath to Achieve It

Value Creation
Strategy

Sustainable
Management

Financial
Performance

GovernanceValue Co-Creation Story

Resolving Social Issues through the “in-” Business

Health of

Body“Health of Body”

Provided by the “in-” Business

Providing Products That Control Nutritional Intake
Carbohydrates are an important nutrient as a source of energy forhuman activity. However, a rising number of customers are looking
to limit their intake of carbohydrates, such as those concerned
about weight gain, and we believe that the need for control ofcarbohydrates will continue to increase.
To meet such needs, we developed in Jelly Energy Management
containing medium-chain fatty acid MCT oil and released it first with
Seven-Eleven Japan Co., Ltd. This product replenishes energy withfats instead of carbohydrates and is the first in Jelly product to featurefats. We struggled to adjust for the way fats affect flavor and texture.
To minimize the influence of the fat-derived flavor and texture andachieve the same refreshing, delicious, easy-to-drink style of in Jelly,in Jelly Energy
Management

Tasting of prototypes

we explored and tested a combination of flavors and otheringredients many times, which eventually led to commercialization.
Furthermore, in April 2023, we renewed it as a food with functional
claims using evidence from Nisshin OiliO Group, Ltd., our supplierof MCT oil. We will continue to further improve our products andconcisely convey their value tocontribute to the “health of body”
of our customers.

Preparing prototypes

Health of

Mind

Satsuki Run & Walk, easily participablewith a smartphone“Health of Environment”
Provided by the “in-” Business

Improving Usability and Reducing Plastic Usage throughCollaborative Container Development with Suppliers

Koji Enomoto
Jelly Category Manager of
Health Marketing DivisionMarketing Headquarters

departments at Morinaga & Co., Ltd., and Hosokawa Yoko Co., Ltd.,
managed just that by sharing their wisdom and repeated trial anderror on the current shape ofcaps and straws.
We will continue to study
this issue and work on “healthof environment” with the aimof both customer satisfaction
and resolving social issues.
Business meeting with Hosokawa
Yoko Co., Ltd.

Satsuki Relay Marathon

Provided by the “in-” Business

Providing Optimal Foods for Situations Requiring Concentration

14

HealthofEnvironment*CHEER PACK is a registered trademark of Hosokawa Yoko Co., Ltd.

“Health of Mind”

The Group believes that “health of mind” can be nurtured by focusing
on positive emotions and things that are going well, such as “feelingfully engaged,” “feeling a sense of accomplishment,” and “smilingand feeling energetic.”
To promote a work-life balance, we believe that more consumers
will place importance on their hobbies and entertainment. We believethat the value of our main product, in Jelly, which can easily replenish
energy and satisfy hunger to a moderate extent, can contributenot only to activities that use the body but also to hobbies andentertainment that use the brain.

in Jelly eSports
WORLD CHALLENGE CUP 2022

For more details, please refer to Morinaga’s Concept of “Health of Mind” on our corporate website.
▶ https://www.morinaga.co.jp/company/english/ir/policy/strategy/kokoroku/

Our product in Jelly has undergone four improvements to its cap
since its launch in 1994. These improvements were realized throughjoint development with Hosokawa Yoko Co., Ltd., which has been
supplying CHEER PACK®* since its release. While improving theease of opening caps, we have reduced the amount of plastic used,
thereby improving customer usability and contributing to “healthof environment.”
Given that the larger the diameter of the cap, the easier it tends
to be to open, it is difficult to increase size while reducing materials
usage. With that being the case, the people in charge of various

Creating Opportunities for Exercise
In May 2023, we sponsored an online sports event called Satsuki Run& Walk by R-bies, INC., which organized the website RUNNET andhas connections with many runners. The event makes it possible
for people to participate in running and walking events anytime,
anywhere, if they have a smartphone. As even those who are notgood at exercising and the elderly can easily participate during their
day-to-day lives, our aim was to create opportunities for exercise,
which have declined due to the COVID-19 pandemic. A total of
250,916 people participated in the event. We also sponsored theSatsuki Relay Marathon held at Japan National Stadium.
In October 2023, we plan to sponsor October Run & Walk. We willcontinue to strive to create opportunities for consumers to exercise
and encourage their participation.

contribute to similar situations where people are immersed insomething, and we have begun to expand promotions throughtournament organizers and supporting players in eSports, which is
expected to grow its footprint in the future.
In the “in-” business, we intend to contribute to “health of mind”
such as “feeling fully engaged,” “feeling a sense of accomplishment,”
and “smiling/feeling energetic” by providing nutritional support toimprove the performance of mind sports such as shogi and eSports.

As a symbolic
example of this,in response to
the fact that in
72nd ALSOK Osho Tournament
Jelly is a favoriteof players of shogi (Japanese chess), the “in-” business decided tosponsor the Osho Tournament, one of the eight titles in professional
shogi from 2022. Players embrace the fact that in Jelly can fill theirstomach moderately without being hungry or full, allowing them toconcentrate on the match. In addition, we believe that in Jelly can

Promoting the Spread of Plogging as a Hybrid Form of “Health of Mind, Body, and Environment”
Many of the products of the “in-” business have a high affinity
governments that are working to improve the health of citizens andwith active scenes such as sports and can be consumed anytime,create comfortable cities, and our company that provides foods
anywhere on the go. However, we recognize that this is closely
suitable for active scenes.
related to the social issue of plastic waste in cities.
Plogging is an opportunity for people who enjoy running on a
Therefore, the “in-” business hopes to contribute to “health of
regular basis, as well as people who are not good at sports, to moveenvironment” by spreading a new sport called “plogging,” in which
their bodies, leading to the creation of opportunities for exercise.
people pick up trash while jogging. In March 2023, we held a
We also believe that the experience of cleaning up the city while
plogging event with Kuki City, Saitama Prefecture, which has madeexercising with friends contributes to “health of mind,” such asa declaration to be a city of health, happiness, and sports and with“feeling connected to others.” By promoting these activities, we will
which we have a comprehensive partnership agreement. The
link them not only to “heath of environment” but also to “health ofevent was held in collaboration with Yokohama F. Marinos, withmind” and “health of body.”
which we concluded a partnership agreement in July withvolunteers from Yokohama City’s Tsurumi Ward Office, theward of which is the location of a manufacturing plant forin Bar Protein, and the Yokohama City Sports Association.
We believe that we can expand the circle of initiatives bycollaborating with companies and organizations from different
pathways, such as professional sports teams that embody theappeal of sports and have the power to communicate, local
Plogging event in Kuki City, Saitama
Plogging event held with Yokohama F. Marinos,
volunteers of Yokohama City’s Tsurumi Ward
Office, and the Yokohama City Sports Association

Morinaga Group INTEGRATED REPORT 2023

15

Financial and Non-Financial Highlights
Financial Highlights
Net Sales*1

Operating Income*1/
Operating Income to Net Sales Ratio*1(Billion yen)(Billion yen)

250

30

200

205.3

208.8
181.2

168.2

194.3

150

■ Operating income

Operating income to net sales ratio

25

9.8

20

20.2

10.2

9.8

50
0

2019

2020

2021

2022

6
4

5

2
0

2018

2019

2020

■ Shareholders’ equity

ROE

(%)

(Billion yen)

25

150

22.0

54.8

10.8
12.8

10

100

15

10.8

13.4

10.1*2

7.9

0

10

60.7

130.0

(%)

60

124.5

104.6

40

50

2020

2021

20

5
0

2019

(FY)

11.8

10.0

2018

96.4

60.7

55.7
122.7

27.7
13.2

2022

Shareholders’ equity ratio

60.5

20

30

2021

Shareholders’ Equity*1/Shareholders’ Equity Ratio*1■ Profit attributable to owners of parent

20

15.2

10

(FY)

Profit Attributable to Owners of Parent*1/ROE*1

40

8

0

2018

(Billion yen)

7.8
17.6

15
100

10

21.2
19.1

(%)

12

11.4

2022

0

0

2018

(FY)

2019

2020

2021

2022

(FY)

*1 The Company applied the “Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020),” and other regulations, from the beginning of FY2021. The figures for FY2020
are from after retroactive application of the said accounting standard.
*2 Excluding the impacts of extraordinary income from the sale of cross-shareholdings.

Non-Financial Highlights
Ratio of Female Managers*1

Rate of Occupational Injury

CO2 Emissions
Japan Scope 1 + 2*4(Frequency Rate*2/Total Frequency Rate*3)
(%)

10
8

9.4

Frequency rate

10.0

Overseas Scope 1 + 2*4(Thousand t-CO2)

Total frequency rate

3

80

75.7

76.3

9.6

10.4

10.8

2020

2021

2022

68.9

8.3

2.33

60

2

6

40
4

1

1.30

1.01

20

0.52

2

0.25
0.00

0

0
2020

2021

2022

(FY)

2020

2021

0
2022

(FY)

*1 Figures are non-consolidated for Morinaga & Co., Ltd., as of April 1 of each fiscal year.
*2 Frequency of occupational accidents indicates the number of injuries/fatalities (not including sick or injured due to non–lost work time accidents) due to occupational accidents per one million
working hours. (Figures for Morinaga & Co., Ltd., factories and production-related affiliated companies)*3 Frequency of occupational accidents indicates the number of injuries/fatalities (including sick or injured due to non–lost work time accidents) due to occupational accidents per one million
working hours. (Figures for Morinaga & Co., Ltd., factories and production-related affiliated companies)*4 Group consolidated basis

16(FY)