Number of stores

As of 28 February 2009

Name
MINISTOP CO., LTD.

MINISTOP CO., LTD.

FY2006

1,689

FY20071,728

FY2008

1,772Franchise stores in Japan

Convenience store operations promoted by franchisesof Ministop "combo" stores, which offer convenience
store products and services as well as fast foodprepared in-store.

Representative
Nobuyuki Abe, President and Representative Director

FY2006

128,729（48.0%）(million yen)

75,445（28.1％）

136,128（48.3%）

268,189
11,087（4.1%）

20,717（7.7%）

282,240

79,152（28.0％）
34,106（12.1%）

FY2008Processed foods
156,415（51.6%）

21,577（7.6%）

11,275（4.0%）

Fast foods, lunch boxes, etc.
80,278（26.5％）

Ordinary income

8,345

FY20087,152

Employees (Employees of MINISTOP CO., LTD. only)

Company headquarters
1-1 Kanda-Nishikicho, Chiyoda-ku, Tokyo, 101-0054
Main business office
1-5-1 Nakase, Mihama-ku, Chiba City, Chiba 261-8540
Offices
Main business office (Mihama-ku, Chiba City, Chiba)
Tokyo District Office (Chiyoda-ku, Tokyo)
Tohoku District Office (Miyagino-ku, Sendai City, Miyagi)
Tokai District Office (Nakamura-ku, Nagoya City, Aichi)
Kinki District Office (Chuo-ku, Osaka City, Osaka)

Philippines:

CSR Report

7,925

FY2007

Stock exchange listing
Tokyo Stock Exchange, First Section(listed August 1, 1996)

Household items
10.235（3.4%）(million yen)

FY2006

CapitalZ7,491,533,000

2009

302,911

Dairy products
Books, services
35,355（11.7%） 20,626（6.8%）

Date establishedMay 21, 1980

1,939

167

32,208（12.0%）

FY2007

1.895

167

Revenues by product category (including franchise stores)

Scope of business(No. of stores)
153 1.842

MaleFemale (No.)

FY2006657

FY2007

703

89

792

FY2008

725

117

842

73

730

＊ Revenues and income from operations are figures for MINISTOP CO., LTD.
＊ Figures here are rounded down to the nearest million yen.

Editorial Policy●Policy
1.Written for the customers
We consider anyone who has any dealings with Ministop to be a "customer" (see page 15).
2. Readability
Besides writing in an easy-to-read style, we sought to produce a report compact
enough for the reader to grasp all the essential facts in one reading.
3.Level of detail
In order to give readers a deeper insight into Ministop, this year we have expanded
the content and increased the number of pages in the report.
4.Website links
We prepared this report with a focus on only a selection of all Ministop activities in fiscal 2008.
Please visit our website for more details.
http://www.ministop.co.jp/eco̲social/index.html (Japanese Only)
5.Prepared with reference to GRI Guidelines (G3), and Environmental Reporting Guidelines 2007 by
the Ministry of the Environment, Japan
We included everything in the report that we felt was important from Ministop's perspective.
●Period covered (for figures, affiliations, titles)
Fiscal 2008 (March 1, 2008 through February 28, 2009)●Report coverage
MINISTOP CO., LTD. and stores under a valid franchise agreement＊Some data covers stores that have an area franchise contract with MINISTOP CO., LTD.
＊Overseas stores not covered.

240 stores

Postscript

45 stores
Republic of Korea:

1,091 stores
1,772 stores

Society must constantly respond to change.
Examples include not only global warming, butalso the global financial crisis that began in 2008,
and a new strain of influenza. Corporations aim tosurvive in the midst of that change, and corporatesocial responsibility initiatives are comprised ofboth constant and changing components. This
report describes constant and critical matters thathave materiality for a corporation, namely foodsafety and global warming countermeasures. Wevery much welcome your comments and opinions
regarding our activities and their results.

01 Chat with the President

Creating New Lifestyle Values
by Tackling Global Warming
Editorial team: Kawasaki, Noguchi, Ito
Okamura, Moride

Contact:

Yoshitaka Moride, Sachiyo Okamura, Shigeki Kawasaki, Hideaki Noguchi, Yuki Ito
Environment and Social Contribution Dept., Management Planning Div.
Kandabashi Yasuda Building, 3rd Floor
1-1 Kanda-Nishikicho, Chiyoda-ku, Tokyo 101-0054
MINISTOP CO., LTD.
Phone: +81-3-3259-5284 Fax: +81-3-3294-2051
http://www.ministop.co.jp/eco_social/pdf/env_2009_en.pdf

122 stores

MINISTOP CO., LTD.

MINISTOP KOREA CO., LTD.

N.B.G. MS NETWORK CO., LTD.

Robinsons Convenience Stores, Inc.

MS KYUSYU CO., LTD.

This report can be viewed at the website indicated above.
It can also be downloaded in PDF format.
◎Japanese edition (No. 10) issued June 2009. (Next issue expected June 2010)◎English edition (No. 2)issued August 2009. (Next issue expected August 2010)◎Reviewed by Cre-en Inc.

Environmental Consideration for Printing This Report■Paper■Ink■Printing Method

03 A Word from the President

Creating New Lifestyle Values

and Environmental Management
14 The 4Rs for a Recycling-Oriented Society
Social Report
15 Ministop and Society
15 Ministop and Our Customers

05 Third Party Opinion

16 Ministop and Our Employees

06 Ministop Store Eco-Map

17 Ministop and Our Franchise Stores
18 Using Fair Trade as a Bridge to Connect Producers and Customers

Special Topics

Ministop's Key Initiatives

Corporate Profile
Editorial Policy

07 Preventing Global Warming

Reader Surveys

09 Food Safety

Communication Tools
Comments Received by Call Center
Results of Survey about the Ministop CSR Report 20082009 Reader Survey

11 Ministop and Local Communities

copy

Environmental Report
13 Global Warming Prevention

印刷サービスCover Message

We are contributing to forest conservation by using
paper certified by the FSC, which verifies that theprocesses-from logging to paper manufacturing
and printing-are conducted in a sound way.

We use vegetable-based inks to reduce
the release of air-polluting volatile organic
compounds (VOCs).

The “Waterless Printing” technology is awater-based developing method that releases
no hazardous liquids. After the developing
process, the effluent is harmless enough to bereleased into the municipal sewerage system.

Trees in Japan take many years to mature, and we have a long tradition of using with great care the trees cut from forests. The attitude of making the most of the gifts ofnatureーeven the bark of the tree, for exampleーhas been conveyed to us from people involved in forests. By using portable chopsticks made from trees grown in Japanas an example of these gifts of nature, let us try to make contact with those gifts of the forests and the sentiments of those people involved in caring for our forests.
Photo location: Yoshino, Nara Prefecture (source of our domestically produced chopsticks named Go En No Kizukai)

Creating New Lifestyle Values by Tackling Global Warming
The need to deal with global warming has become a serious issue in society, and Ministop is called upon to further step up
its efforts in this area. For this report, we engaged some experts in discussion to consider what directions Ministop shouldtake next. This discussion was held on February 17, 2009.

Mika Takaoka

Kikuko Tatsumi

Professor of Marketing, Rikkyo University

Executive Director, Nippon Association of Consumer Specialists

Corporations should make their principles visible by

Consumers need to look at carbon footprints andproviding information together with the “carbon footprint”

environmental labeling information not only as general guides

and fair trade products, as well as through shelf allocation,

to select products, but also to understand that this information

product packaging, and so on.1

relates to the environmental impacts intrinsic in those products.

Nobuyuki Abe

Katsumi Watanabe

Current and future efforts to tackle global warming
Many people wonder about the role of convenience
stores in fighting global warming. What is the focus of
Ministop’s efforts?
Abe: Broadly speaking, the initiatives at our stores are
related to either equipment or store operations. We havealso done a variety of communication-related efforts toraise awareness of customers and staff, for example, toreduce the use of plastic bags at the checkout stand.
Watanabe: In terms of equipment, the most effective
action is to install energy-efficient models.
Takaoka: What kind of equipment are you referring to?
Watanabe: From greatest to least electrical power
consumption in our stores, these would be refrigerators,
freezers, air conditioning and lighting. We are converting
each of these to energy-efficient types. Regarding fryers
used to create deep-fried foods, no high-efficiency
models are available yet, so for the moment we must
make some changes to the cooking methods and so on.
For example, we believe we can save energy by putting
a cover on fryers when they're not being used.
Tatsumi: I heard that a Kyoto store has converted a lightsign to LEDs, correct?
Watanabe: Yes, they are darker than fluorescent lights,
but they make a huge difference in energy savings. If weconsider the actual purpose of those signs, we believe it
is enough if people clearly recognize our shops as
Ministop stores.
Takaoka: Perhaps the signs used before were too bright.
It seems that businesses are trying to compete withbrightness, but perhaps this is not really necessary on
busy shopping streets.
Abe: Until now, there was some rivalry to be brighter
than other stores. But it is important to look at things
seriously and ask ourselves whether this is the right kindof competition. If we find something wasteful, we need
the courage to stop it.
Watanabe: In the future, perhaps we could call this achallenge to promote darkness. In terms of equipment
and energy efficiency at stores, we have already done all
we can. There is still some potential, for example, tointroduce renewable energy such as photovoltaic power,
or to start using old cooking oil to make biodiesel, butthese still come with many issues to be resolved
regarding cost, regulations, and so on.
Tatsumi: Do you think you are adequately
communicating to your customers about the extent ofsuch efforts at your stores?
Abe: Well, one issue is that at present we are not01adequately communicating with customers.
Tatsumi:That'sunfortunate.
Environmental
considerations are an important factor when customers
choose where to shop. And people feel better about
themselves when they shop at stores that are making a
positive effort.

President and Representative Director, Ministop Co., Ltd.

General Manager,
Store Business Promotion Div., Ministop Co., Ltd.

The price of our pursuit of material fulfillment has led to today’s

CO2 emissions will not be dramatically reduced simply by

problem of global warming. As we promote efforts to tackle

switching to LEDs. We will pursue the most effective measures

global warming, we aim to be a company that creates products

while keeping in mind the need for balance with management

and provides services that can make customers feel fulfilled.

priorities, based on a variety of cost-related risks.

Offering a new sense of fulfillment and values
The new "carbon footprint" (CFP) system has begun.
Tatsumi: CFP is a labeling system that shows theamount of carbon dioxide (CO2) emitted from the time a
product is produced until it is disposed and recycled. I
expect that the CFP symbol will be displayed on
products in the future. At the moment, we are moving
ahead with preparations of calculation methodologies for
CFP, but the point is not just to compare the amount of
CO2 emitted. The real significance of the CFP system isthat it will make people aware that products areconnected with global warmingーfrom production towaste and recycling.
Note: CFP is a national labeling system promoted by the Ministry of Economy, Trade and Industry thattells consumers about the carbon emissions associated with a product.

Abe: This is true not only with CO2 information, but
because information flows back up the supply chain to
the production stage―if we are talking about a foodproduct, for example―efforts like this also connect to thesense of trust and peace of mind customers feel about
products.
Tatsumi: You mentioned an awareness of the productsupply chain. This also relates to fair trade products,
doesn't it?
Abe: Yes, and besides the fair trade iced coffee we havealready been offering, in 2008 we also started to selldried mango, chocolate, and other products.
Takaoka: Department stores used to tell us that they
were retailers that offered a sense of fulfillment, places
that offered new lifestyles and culture. Customers felt
fulfillment by consuming not only physical things but also
lifestyles. By offering CFP and fair trade products, I
believe that you too are offering new lifestyles.
Abe: We are currently experiencing the kind of economic
conditions that happen only once every hundred years,
so people have a tendency to pay more attention to theeconomy than the environment. But it is exactly at a time
like this that we need to suggest ideas that change
people's traditional ways of thinking about fulfillment.
Takaoka: If you create and offer new lifestyle values,
customers will appreciate it, and if you earn their trust in

your store principles, they will feel they can make theirpurchases with peace of mind. It would be excellent if
you could become something like a town "concierge" tothe extent that people felt confident about any productjust because it's sold at Ministop and didn't need to rely
on labeling information.

Ministop's purpose in tackling global warming
How will suggestions from experts be put into
practice ?
Abe: I think that we need to bolster our communication.
Our approaches must differ depending on whether weare dealing with staff at franchise stores or the company
headquarters, the local community, or customers, but it isimportant to convey our messages clearly and ensurethat people understand us.
Tatsumi: This is not exactly the same as the "concierge"
idea, but I have a comment. Soft ice cream is one of theflagship products of Ministop. If you provide basic CO2
information about your soft ice cream, I believe theinformation will be correctly conveyed to franchise store
staff, headquarters staff and customers as well, and that
there will be a greater interest in all the phases fromproduction of soft ice cream to the selling stage.
Abe: We are working to reduce CO2 emissions through amodal shift in the transport of what we call "soft mix."2,3
Yes, through our products, we absolutely do want toconvey information about what makes us special at
Ministop. I would like to convey information at our stores
about all of our initiatives connected with tackling global
warming, have our customers come to Ministop, pick up
our products, and talk with store staff-and in this context
feel that they are being fulfilled. This is the kind ofcompany we aim to be.
1. Shelf allocation: The method used to determine how to arrange or allocate products on store shelves.
2. Modal shift: The process of shifting the transport of cargo from the use of trucks to rail or ship.
3. Soft mix: The liquid ingredients used to make soft ice cream.

Summary of discussion
We aim to create stores that make people reexamine the conventional sense of values.
We will communicate with customers andfranchise store staff with various information at
stores about efforts to tackle global warming.

02

Creating New Lifestyle Values
Making Ministop a dynamic place to work

governments, with our 24-hour store operations we will also play arole as Safety Stations (see page 12)ーas refuges for women andchildren, and as places that offer support for people returninghome after disasters.
We also have stores overseas. Some of the countries are not so
advanced in initiatives to deal with social concerns such asenvironmental problems and labor related aspects, and withinitiatives relating to food safety. Ministop is tackling these issues
while respecting each country's culture, customs, and regulations,and through our efforts we are earning trust in those regions.

During the past year, as president of this company, I have put myefforts into education and communication with staff in stores andthe headquarters. In particular, by bolstering our independentlydeveloped FC Staff Education Program (Yellowtail Program, seepage 17), we are training Store Leaders who can take greater
responsibility. I believe that this program will increase their pride inworking at Ministop, make them more cheerful and thereby
transform the ways they work. This will all boost our service tocustomers.
To communicate this spirit to our customers, we must also imbue
our headquarters staff with this attitude. In this respect, starting lastyear, I have created opportunities to speak directly with
headquarters staff, department by department, and haveexchanged views with them on key issues, in each workplace.
Ministop will soon celebrate its thirtieth anniversary in business, so
we are starting a project in which headquarters staff are asked toconsider what kind of Ministop they would like to create in the next
30 years.

Turning Ministop into places of fulfillment
Today, both the economy and the environment are affected on a
global scale, and in many cases, something occurring in one placethat seems to have no direct connection with us can have an
impact on our own lives. The current economic conditions are,some might say, a result of seeking excessive profit, but this is also
an opportunity to re-examine our lifestyle values and sense offulfillment.
In our stores we want to provide "the real thing" and we have astrong commitment to quality. For example, fair trade products offer
healthy alternatives for our bodies and peace of mind in our hearts.
This offering of lifestyle values and a sense of fulfillment issomething new, and allows us to distinguish ourselves from otherconvenience stores. I aim to make this a company whose
customers can feel a sense of fulfillment when they come into ourstores.

Communicating about the environment and food safety
Convenience stores are always in the spotlight regarding
environmental and food safety concerns. Why? The reason is that
we are closely connected to customers’ daily lives, and I also
believe that since convenience stores are so ubiquitous, we areviewed with a corresponding level of expectations as we make up
part of the infrastructure of society.
In terms of food safety, we continue to make an effort in various
areas—procurement of raw materials and ingredients, sanitation,
monitoring and control of food expiry dates, and various otheraspects related to the selling of food items. In terms of raw-material
procurement, our managers travel to production sites andprocessing plants—whether they are in Japan or overseas—andthrough this we are making an effort to ensure that we can provide
products that we ourselves have verified are safe. To maintainhygienic standards at the desired level for society and customers, it
is essential to implement ongoing staff education.
Through proper dialogueーfor example, through close mutual
relationships every day, between headquarters and franchise
stores, between owners and store staff, and between stores andcustomersーwe are striving to create a situation in which anyone
can feel confident when they purchase products at our stores. We
want them to say, "If we shop at Ministop, we know it's good."
One particular issue on the environmental dimension is that we are
increasingly being called upon to make a greater effort to prevent
global warming. There has been some debate about convenience
stores being open 24 hours a day, but when we talk about reducing
carbon dioxide (CO2) emissions, we must look at issues rationallyand seek a balance between environmental impacts and the role ofconvenience stores as a part of society's infrastructure. For
example, to operate freezers and refrigeratorsーwhich consume alot of electricity not only during store hours but 24 hours a dayーthismeans shifting to more energy-efficient models wherever we can.

03

Peace

President and Representative Director, Ministop Co., Ltd.

Nobuyuki Abe
We already expect to achieve the targets of our Voluntary Action
Plan, and plan to make further efforts to reduce CO2 emissions.1
As for recycling, we started a trial in the autumn of 2008 to
expand the coverage of our recycling loop from food waste to rice
growing. We also reuse store equipment whenever the situation
permits, and thereby are making an effort to use resources more
effectively.
Because we are incorporating these environmental initiatives oneby-one into our daily operations, to be most effective we must
further increase the environmental awareness of staff in stores
and at our corporate headquarters. If we are able to communicate
this environmental awareness to customersーas in the example ofreducing the number of plastic bags usedーwe will be able topromote initiatives with the store and customers working together.

Contributions to community and society
Our Child Internship program (see page 11) not only contributes
to school education, but I hope it will also play a role as a forum
for learning about our stores' initiatives on global warming
countermeasures, fair trade products, food safety, and so on.
Working in cooperation with local communities and local

1. Voluntary Action Plan on the Environment: These are plans formulated by industry groups to help
achieve national emissions reduction targets under the Kyoto Protocol The convenience store industry isaiming to reduce its average greenhouse gas emissions intensity (energy consumption per unit of floor
space, multiplied by store operating hours per day) by 23 percent compared to 1990 levels over the five
years from 2008 through 2012.

Our customers
PeopleCommunity

Peace: AEON is a corporate group whose operations are dedicatedto the pursuit of peace through prosperity.

People: AEON is a corporate group that respects human dignity andvalues personal relationships.

Community: AEON is a corporate group rooted in local community lifeand dedicated to making a continuing contribution to thecommunity.

The AEON Code of Conduct
1. AEON people are always grateful to the many other individuals who
provide support and help, never forgetting to act with humility.
2. AEON people value the trust of others more than anything else,always acting with integrity and sincerity in all situations.
3. AEON people actively seek out ways to exceed customer
expectations.
4. AEON people continuously challenge themselves to find new ways
to accomplish AEON ideals.
5. AEON people support local community growth, acting as corporate
citizens in servicing society.

Management Philosophy of MINISTOP
Mission: Contribute to the health, peace of mind, and convenience ofeach Ministop customer in everyday life.
Differentiate Ministop from competitors through a strategy ofcombining convenience and food, and strive for growth andprosperity together with people who value independence.

Vision: The 21st century will be the age of Ministop. The Ministop brandimage in Japan and abroad will be the symbol of the highest
quality in stores renowned for convenience and delicious food.

Values: ・Customer first ・Adaption to change ・Store performance・Harmony with the community ・Respect for people ・Fairness
・Enjoying life and work04

Independent opinion - Towards a better Ministopgbal w ar m

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Copy machines use FSC certified paper

Uniforms made from recycledplastic bottles

Barrier-free store design with no
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Since about 15 years ago, I have been working to continuallyprovide working women with useful information. To maintain agood quality of life, people need new kinds of housekeeping
know-how; this is true not only for women, but also for anyone
who needs to be away from home during much of their day.
People should actively seek out convenient products andservices and make them part of their lives. I think it is importantto have that kind of transformation in our thinking.
This is where convenience stores come in. Back when I began
this sort of work, many families still resisted the notion of
shopping at convenience stores, even if it was handy. Since
then, that way of thinking has really changed; more and more
people say that convenience store lunches and other foods havebecome better tasting, and the impact on their budgets has really
eased thanks to the proliferation of private store brand items. I
think that convenience stores have now become important “keystations” in people’s lives. I use them myself quite often. The factthat Ministop stores have an “eat in” area makes them especiallyenjoyable to visit.
Looking at this latest CSR report, my thinking has undergone
another big change. I was really surprised to see that Ministop is
actively doing so many things, such as even working to recycle
mango peels and seeds, selling fair trade products, waste foodGloMs. Momose started her own business after working
for 10 years at a manufacturing company planningcultural and other projects. As an independent lifestyle columnist, she currently writes for newspapers
and magazines. She has served on committees
such as the "Strategy Council for Envisioning the
Future of Food" of the Ministry of Agriculture, Forestry and Fisheries, and is the author of books including Yareba Tokusuru! Business Hasso Kaji (SUCCEED by Running Your Household like a
Business)."
Her columns grounded in real life are full of new
ideas for transforming daily living, and have fansamong both men and women of diverse age groups.

recycling, working to reduce and reuse construction materials
and equipment, and making efforts to reduce the CO2 released
from power consumption for product display cases and lighting.
In learning about the wide-ranging efforts that are being madeto address environmental concerns, I gained a good
impression about your “ecological” attitude. At the same time, I
also wonder why, since you are doing such great things, you
don’t tell everyone more about them.
While convenience stores can offer enjoyable shopping, somesmall concerns definitely come to mind each time I visit. What
will happen to food in any unsold lunch boxes? Aren’t the lights
too bright, and are the materials used in the products safe? Nomatter how much we customers use our own shopping bags
and our own chopsticks, and try to reduce the amount of trash,
there is nothing we can do about the places where products are
made and sold. Andso, as consumers,
we shop while having
concerns and feelingunease, about what
is happening inplaces we cannot
Ms. Momose receiving an explanation at a store.
control.
When we reach out to buy a prepared lunch, it would put us atease if we could see a sign that explains what the store is doing
to implement recycling. If we saw a sign at the entrance
explaining that the fluorescent lighting is automatically adjusted
to conserve energy, then we would feel a little better when wepass by the store at night. We would think, let’s go to that
Ministop, and take our children there, even though it may be a
block farther away. We change our shopping habits based onwhat we know. So that is why you should share with us evenmore about what you are doing. I think there is an obligation tolet us know. I hope that Ministop’s positive activities will become
better known among consumers.

gLifestyle Columnist

inIzumi Momose

Ministop Store Eco-Map

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Cooperate with requesting local governments to collect plastic bottles
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06

Partnering with customers to prevent global warming

I did it!

In addition to working to reduce the usage of plastic shopping bags and disposable
chopsticks, we strive to sell "green" products (environmentally-friendly products). In
2008, we supported the global warming prevention efforts of our customers bylaunching sales of compact fluorescent light bulbs, rechargeable batteries and carbon
offset products.1“E
E F 
” S   M  I visited Ministop.

Preventing Global Warming

Signboard utilizing blue LEDs

Because about 80% of Ministop's total energy-related greenhouse gas emissions are due to electricity use at stores, keeping power consumption
down is an important point for preventing global warming. (For more on this topic, see pages 6 and 13.)

Using energy-conserving equipment in stores
Refrigeration and freezer equipment uses the greatest amount ofelectricity in stores (accounting for approximately 33.6% of totalenergy consumption). Our first priority is therefore to reduce ourCO2 emissions by reducing the energy used by this equipment,
before moving on to lighting fixtures and other equipment.

By using low-voltage controls for refrigerated display cases,
products can be cooled to the optimal temperature from ourcustomers' perspective, while at the same time reducing energy
consumption. 1 Also, the insulation efficiency of walk-in
refrigerators can be improved with double-pane glass for doors,which prevents condensation andeliminates the need for heaters toprevent the door glass from clouding
up.2
By using low-voltage systems andmaintaining optimal temperatures, we
can reduce the CO2 emissions of eachPower-efficient beverage display
store by 20%.
1. Low-voltage controls: An inverter can reduce the voltage used by equipment, thus improving energy efficiency.
2. Walk-in refrigerators: Refrigerators that allow shelves to be stocked from behind.

Fluorescent light fixtures in stores use automated dimming
systems.3 Also, lights in parking areas and restrooms now use
LEDs.4 By switching to LEDs we can reduce CO2 emissions ofparking area lighting by 80%, and lighting in restrooms by 40%.
Energy-conserving fixtures are installed as a matter of principle
in new stores, but because existing stores are open for business24 hours a day, 365 days a year, it can be difficult to replaceequipment. Therefore, we install energy-efficient equipment
when we can take advantage of
temporary store closures for retrofitting.
We plan to switch over to energy-saving
equipment at some 50 to 100 of ourexisting stores each year.
LEDs used in outdoor lighting
3. Automated dimming system: A system that senses the brightness of outside light, and automatically adjusts
the brightness level of fluorescent lights.
4. LED: A light-emitting diode, which requires less electricity than fluorescent lights, but at a higher cost for fixtures.

07

There really are a lotof “eco” goods!

Carbon offset certificates
1. Carbon offset products: Products for which a portion of the profit from sales is used
to purchase CO2 emissions credits. Ministop purchased 120 tons of emissions credits
from an industrial plant in Brazil, contributing to Japan’s goals under the Kyoto Protocol.

New approaches
We have started to use LEDs for some of the signboards above theentrances to our stores.5 By switching to a design that justemphasizes our logo, we have been able to reduce electricity
consumption by some 80% compared to signboards using
fluorescent lighting. Because the light rays from LEDs travel in astraight line, and thus do not illuminate the surrounding area, LED
signboards appear darker than conventional signboards.
Nevertheless, the purpose of a signboard is just to let people know
the location of the Ministop store. As long as the sign is brightenough for people to find the store, that ought to be sufficient. We
will continue to switch over to LED signboards, as we measure thecosts and benefits.

e.
ink
I th y thesrI'll t“KIZUKAI-UNDO”(Wood Products Use Campaign)“Go En No Kizukai” chopsticks
Made in Yoshino, Nara Prefecture

My Chopsticks Set
made in Owase City,
Mie Prefecture

Letter of Appreciation from the Minister of Agriculture,
Forestry and Fisheries

In March 2009, Ministop received a Letter of Appreciation from the Minister ofAgriculture, Forestry and Fisheries for our promotion of the "KIZUKAI-UNDO."

Since I brought
my own bag,they didn’t needto give me one.
Than
k
you.

5. As a rule, all future stores built in the city of Kyoto will utilize LED lighting.

Ministop started introducing modular "unit" stores in 2001. In 2008,
unit stores were built using wood rather than metal materials. Trees
absorb CO2 from the atmosphere during their growth process,storing the carbon and helping reduce CO2 in the air. Trees thathave stopped growing will not release CO2, as long as they are notburned or allowed to decay; for this reason, wooden buildings canbe thought of as buildings made of stored
CO2. Currently, wood from Canada is being
used, but in order to revitalize Japanese
forests, FSC-certified domestic timber will
be used next.6 Our future aim is to make itstandard practice to use FSC-certified
Wood structure of a unit store
timber grown in Japan in our unit stores.
6. FSC certification: The certification of forests through the Forest Stewardship Council,
using a third-party system that evaluates whether forests are managed and logged in keepingwith practices benefitting the environment and local communities.

Katsumi Watanabe
General Manager, Store Business Promotion Div.
Because I was originally part of theconstruction division, it comes naturally to me
to deal with the “hard” or engineering side ofenvironmental concerns. I look forward tocontinuing to work to find practical and realistic
ways to minimize environmental costs.

Wall posters in stores ask customers to consider whether they need shopping bags
or whether they can just accept a piece of tape affixed to their purchases toindicate payment has been received. As a result, the total usage of shopping bags
has declined each year. We have also reduced the use of resources by making
shopping bags thinner and by using bags that are no larger than needed.

Starting in June 2007, 27 of our stores tried a trial in which one yen was
discounted from the total bill of customers who did not need a plastic shopping bag
for their purchases. While this resulted in a reduction in the number of shoppingbags, the costs were not balanced out by the benefits. We will review the criteria
for discounting, and try a similar trial again in the future.

After enjoying"eating in," I
recycled mytrash in theproper bins.

Number of items given out per store each year
FY2006

FY2007

FY2008

Shopping bags

237,215

235,861

227,495

Disposable
chopsticks

56,65054,51353,128ouey
Se in!
aga

Entrance poster about shopping bags

Supporting "My Chopsticks Club"
Since 2003, we have supported "My Chopsticks Club," calling on people
to rethink how they use chopsticks in their lives.

We can take steps in
the right direction evenas we shop.

08

2

Food Safety

When we are busy, there can be more than 600 people working at the
mango processing plant. Women account for 70% of staff. The plant,
which can process up to 20 tons of mangoes a day, has received
HACCP1 and GMP2 certifications for food safety and hygiene, and isoperated at a high standard for safety and quality control.

M        .
S     .

1

The mangoes used in Ministop mango parfaits aregrown at a contract mango farm in Thailand.

Ha

rve

Mangoes with dirt or bruises are
removed, and only items that meetstandards for sugar content andcolor are used.

goes head for the process

ing

pl

2.Washing and disinfecting
Mangoes are rinsed, disinfectedwith sodium hypochlorite, and thenwashed with water.

Education of staff is important for the hygienic management of the plant.
We ensure that staff understand the operation of the plant well,emphasizing the importance of each step in the process.
While all staff are meticulous about doing things properly,
and are proud of their work, everyone also enjoys working
together like one big family, thanks to various company
events and the consideration given to each employee.

Apple mango parfait(Mahachanok variety, commonly known as the "apple mango")

man
sted

1.Receiving and selection

1. HACCP: Short for “Hazard Analysis and Critical Control Points,” this is a system applied to prevent theshipment of defective food products, and to immediately correct any abnormalities, through the identificationand continual monitoring and recording of key control elements throughout the entire process, fromacquiring raw materials through manufacturing and shipping.
2. GMP: Short for “Good Manufacturing Practice,” these are management and compliance rules established
for the manufacture of food and other products.

What route does a mango parfait travel before it reaches you?
Let us introduce you to our mango farm and processing plant in Thailand

Mango farm

Mango processing plantan(Sodium hypochlorite is commonly used to disinfectand sterilize drinking water, fruits and vegetables.)Hygiene control at the entrance
To enter the work rooms, all employees
must wash their hands, be disinfectedwith alcohol, and have their work
uniforms cleaned by rollers to keep out
any foreign objects.

Pumit Sansawat
Processing Plant Quality Control Managert

Bacteria inspection
The contract farm in northern
Thailand.
Mangoes are grown on thishuge farm covering 330
hectares.

Spending time and effort tocarefully prune the trees, toavoid the spread of insects,
reduces the amount ofagricultural chemicals thatneed to be used.

These mangoes are so good,
we hope that everyone
in Japan will be able to enjoy them.
Nukul Thianan
Farm Manager

Pesticide testing
We carry out a total of four tests ofagricultural chemicals, including
inspections conducted before themangoes are accepted at theprocessing plant (which check for 80
agricultural chemicals to ensure that
residues are below levels established underJapan’s Positive List System for Agricultural
Chemical Residues in Foods), as well as at the time of receipt, and whenitems are packaged and shipped.
In addition, farmers are required to submit a list of all agricultural chemicals
they use, and inspections are held to verify proper usage and handling.

3.Cutting
The peels are removed and themangoes are diced. It takes greatskill to cut the fruit beautifully
without leaving any fibers.

Because mangoes are not treatedwith heat, the control of bacteria isvery important. Sample mangoes aretaken at each step in the processing fortesting in-house for common bacteria, as
well as for coliform bacilli, salmonella, andothers. In addition to the mangoes, employees andequipment are also tested twice each day. Whenever bacteria levels rise
above normal, even if they are within safety standards, the cause isinvestigated and procedures put in place to ensure that there will be no
problems with the final product.

Recycling mango peels and seeds

About 40% is used for food.

4.Freezing

About 60% is
recycled.

Mango seeds are large and only about 40% of the fruit is suitablefor eating. The remainder is composted for use as fertilizer.
Juice
Juice is mixed withbrown sugar and otheringredients and thenfermented to makeliquid fertilizer.

5.Selection09

We have adopted our "Quality Control Directive" (QCD), which aims to meet the demands of food safety, flavor, price and timeliness. In
addition, we make sure to follow each and every quality control step as outlined in our Quality Control Manual, from procuring the raw
materials through to sales in each of our stores.

3

The fertilizer is used at
our farm.

u go!

Here yo

The mango-based fertilizer isused to grow the large basil
used in Ministop's "Gapao
Pita Sandwich."

to Japan!

These are mixed withrice hulls and poultry
manure and fermented
to make fertilizer.

Keiko Fujii
Assistant Manager, Cold Dessert Sec.,
Fast Food Development Dept., Fast Food Merchandising Div.

Ministop's quality control philosophy

6.Packaging and shipping

Items are checked for color, The products are packaged forsize and impurities.
individual servings, and shipped.

Off

Seed and Peels
Each year when the mango parfait season approaches, we visit thefarm and processing plant to inspect the harvest and the status ofprocessing. Everyone is working passionately, wanting the people inJapan to enjoy eating these delicious mangoes, and they are proud tobe able to continue to provide such high quality, safe mangoes.

To ensure flavor andfreshness, each item isindividually flash frozen
using special technology.

Sales
At stores, we control
hygiene,mango
temperatures,
freezertemperatures, and productexpiry dates, and the soft
ice cream freezer issterilized every day.

10

Safety Station initiative
Ministop is an active participant in this cooperative initiative of the Japan Franchise Association's member convenience
stores, through which the police and local governments establish convenience stores as community "safety sites." Theinitiative was expanded nationwide in October 2005.

■ Prevent bank transfer scams before they happen!
Tomomi Tomioka
Manager, Gyoda Josai Store (Gyoda City, Saitama Prefecture)
One day about 3 o'clock in the afternoon, when there wererelatively few customers, an elderly couple came into thestore. As they stood in front of the ATM, they seemed a bit
confused, and one of them was talking on a cell phone. A lotof older people come into our store, but it is rare for them to
use the ATM. Because it seemed that they were following
instructions over the phone, it occurred to me they might becaught up in a bank transfer scam, so I went over to talk tothem.

Ministop and Local Communities
We strive to undertake activities that are suited to our role as a convenience store, and which take advantage of Ministop's uniqueness, in orderto gain the trust of local communities and to build support for our stores.

Child Internship Program

They said they were told that their son had caused sometrouble at work, and that they had to immediately send somemoney to a certain bank account. I said to them that I
thought it would be good if they made sure and talked totheir son directly. It turns out it was a bank transfer scam
after all.
I always try to talk with customers, but this particular time I’m
glad I was actually able to help prevent them from beingcaught up in a scam. We should continue to look out for ourcustomers and communicate well with them, serving our role
as a “Safety Station” within the community.

Number of stores hosting Child Interns

The Child Internship Program, started in 2005, offers educational work experiences forelementary and junior high school students.

S
I       C FY2005

FY2006

FY2007

FY2008

119

100

129

153

Activities in times of disaster
When large-scale disasters such as earthquakes occur, Ministop aims to continue our store operations in order to serve as lifelines for affected
communities. Also, in keeping with the circumstances, we supply relief goods and raise funds through our stores. In addition, we are prepared toprovide restroom access, tap water and information to those who are forced to travel on foot in a major disaster, and for this we have signed
agreements with local governments concerning support for people in need when returning home after a disaster, including an agreement signed
in March 2009 with Aichi Prefecture.

….

Hmmm

They gain experience
inspecting
products,
confirming the number
and type of each.

The day begins with cleaning
up, then greeting customers toa sparkling store.

Looks

Report on the sales of alcohol and tobacco to minors
At the checkout register, we check the age of those customers who appear underage but are attempting to purchase alcohol or tobacco
products. There have been cases, however, when the age of customers was not confirmed, and minors were able to purchase theseproducts.
In fiscal year 2008, 13 cases involved reprimands from the local police, referrals to prosecutors, or on-site investigations.1
So that each store employee will properly conduct age checks and not sell alcohol or tobacco products to minors under any circumstances,
all stores are instructed to conduct employee awareness-raising activities at least three times each year and to follow a checklist that
ensures proper training of staff.
1. There were some on-site investigations and cases of questioning by police inspectors, but none led to prosecution

tasty!

Welco
me!
Interns reflect on their experiences
and confirm future plans.

Serving customers at the register is
exciting. There are so many things tolearn from this new perspective.

Beginning in 1990 with the "Circle of Flowers" program, which donates flower and tree seedlings to elementary schools, every year wehave conducted fundraising campaigns that involve our customers for disaster relief and support for children.
FY2008 Overview of in-store fundraisingInterns experience making fast
food. Their first time in the kitchen
is very interesting.

Sanae Koido
Manager, Naka-Jujo Store (Kita Ward, Tokyo)
Receiving thank-you letters from the interns, andgetting reports of their school presentations after theon-the-job training, I really got the feeling that thisprogram helps students and schools, and also helps
our stores build strong relationships with communities.

11

Fundraising activities

Shigeki Kawasaki
Assistant Manager, Social Contribution Sec.,
Environment and Social Contribution Dept.,
Management Planning Div.
I want this to be a program that not only
contributes to the children’s development, butalso helps our staff gain fresh perspectives
that will help them in their jobs.

Beneficiary（yen）PeriodOrganizations Receiving Donations

Amount donated at stores

Laos School Building Campaign

4/21〜6/20

Japan Committee for UNICEF

6,663,529

Fundraising to support victims of the earthquake
in China’s Sichuan Province

5/14〜6/1

Embassy of the People's Republic of China in Japan

5,847,92624-hour charity television program "Love Saves the Earth"

7/4〜9/7

24-Hour Television Charity Committee(Nippon Television Network Corporation)

12,980,647

Put the brakes on global warming!
Give polar bears their ice back" Christmas wrapping campaign

11/17〜12/25

WWF Japan

3,427,365

2/1〜2/28

Association for Aid and Relief, Japan

3,686,899

Periods otherthan listed above

The Foundation for Flowering & Greening

23,366,520*

Ban landmines and cluster bombs!" campaign
Circle of Flowers program

Total amount donated by customers
Aeon group joint fundraising

55,972,886

Presenting children with flower seedlings
Recycled plastic donation
boxes that can be usedover and over.

Fundraising by Ministop Note: One percent of Saturday sales of soft ice cream is also contributed each week (total in FY2008 was 10,692,355 yen).

12

Global Warming Prevention and Environmental Management
Greenhouse gas management
Ministop created its Greenhouse Gas (GHG) Management
System based on GHG Guidelines2 with the aim of effectively
reducing emissions throughout its operations. In 2005, thecompany implemented the GHG Management System at alllevels of its organization and business activities,3 to cover directemissions caused by delivery from the Joint Distribution
Centers, stores, offices and staff travel between offices andstores.
1

1. Greenhouse gases are defined in the Law Concerning the Promotion of Measures to Cope with Global Warming(1998) as carbon dioxide, methane, nitrous oxide, chlorofluorocarbon (CFC) alternatives, and sulfur hexafluoride.
2. The Guidelines for Company Reporting on Greenhouse Gas Emissions (2005 revision)
3. Due to the diversity of the company's operations, measurement of the GHG emissions of N.B.G.MS NETWORK
CO., LTD. is limited to the company’s retail stores.

Transport-related initiatives

Food product recycling

In 1998, in regions where the necessary infrastructure is inplace, we began introducing vehicles that run on compressed
natural gas (CNG) and emit less carbon dioxide. In 2002, we
introduced the Integrated Transport and Delivery Control
System, which incorporates radio communications and a global
positioning system (GPS), and aims to lower fuel consumption
and reduce engine idling.

The fiscal 2008 food recycling rate was 46.8%. In accordance with theFood Recycling Law, we will raise the recycling rate by 2% each year
through 2012.

Integrated Transport and Delivery Control System

SystemproviderRemoteTravel management server
maintenance Communications control server Temperature data from insidedelivery truck’s refrigerated
area is sent to server fromtemperature sensor on delivery
truck via onboard terminal.

Scope of GHG management system
Delivery vehicles

Server handles
data processing

Customer(Direct Emissions)

Joint Distribution
CenterReduce, Reuse, Recycle, and Reasonable Treatment

Stores

Ministop views leftover food items not as waste but as a resource. In
1998, we began trials and tests of composting and other methods torecycle this leftover food. The result was the start in 2004 of our"ecofeed" project, producing feed mainly for use by pig farmers.
Meat from the pigs raised on ecofeed is used in our minced pork cutlet
lunch boxes, which went on sale in April 2008. The ecofeed project iscurrently in operation in Kanagawa Prefecture, and we plan to gradually
establish similar projects in more regions in the future.
We have also begun an experiment in which pig manure is turned into
compost and used by farmers under contract to cultivate rice. We aim tocreate a recycling loop, whereby rather than throwing away food, we
effectively utilize it and once again return it in a new form to our stores.

Stores recycling food(As of March 31, 2008)
All stores recycle cooking oil
Future priority areas for recycling

Aichi: 19 stores(In Nagoya)
Expanded ecofeed
operations plannedin July 2009

Tohoku region
Under review

Kanto region
Kinki region
Tokyo: 192 stores
Under review Kanagawa: 57 stores
Chiba: 11 stores

Stores recycling food

FY2006

FY2007

FY2008269 stores

260 stores1

279 stores

1. In FY2007, the number declined due to store closures.

Offices

Ministop

Staff travel between
offices & stores,
store development research.

(Indirect Emissions)

Initiatives at stores
Reducing the emissions of greenhouse gases from stores is themost important task. Beginning with new and retrofitted stores,
we are introducing high-efficiency equipment in phases using
the Top Runners Approach based on cost-benefit analyses(seepage 6).
Electricity usage and CO2 emissions per store
Electricity usage

CO2 emissions4

FY2006106.0 t-CO2

FY2007106.0 t-CO2

FY2008106.3 t-CO2

Ministop’s ISO14001 certification was renewed after a renewal
inspection in January 2009.

Environment-related regulatory complianceDuring the past fiscal year, there were no instances of noncompliance with government regulations, and no environmentrelated accidents.

We will consider the global environment, together with our customers,
franchise stores, and business partners. Aiming to create a recycling-oriented
society, we will learn together and take action, with a full recognition of ourrespective roles.

Ministop's food recycling loop

5. The net increase in stores, found by subtracting the number of stores that closed from thenumber of stores that opened.

13

21.1 tCooking oil

2.4 t

2.1 t

2.1 t

Bulk disposal(food still in containers)

Rice usedin lunch boxes

Compliance
We will comply with all laws and regulations relating to environmental
protection, as well as any environmental commitments made by Ministop in
response to requests.
Safe and reliable products and services
We will develop and select safe and reliable products and services, whileconsidering the diverse lifestyles of our customers.
Environmental protection activities
We will participate proactively in tree planting and other environmental
protection activities.
Policy awarenessWe will promote awareness of our Environmental Policy among Ministop
employees and all people associated with Ministop operations.

Container waste(about 1 kg daily)

Food waste(about 10 kg
daily per store)
Store

Contract farmer’s rice paddy

Meat usedin lunch boxes

Continuous improvement
We will continuously improve our environmental management systems, andwill set and periodically revise our environmental targets and objectives basedon this Environmental Policy. We will incorporate environmental practices(green procurement, resource conservation, energy conservation, reuse,recycling, waste reduction, etc.) into all our business activities.

4. Based on the Ministry of the Environment's published carbon dioxide emission factor of 0.555.

Overall CO2 emissions increased 12.7%, owing to the fact thatthe number of stores increased by 44.5 Per store emissions
increased by 0.2%, due to the heavy use of air-conditioners tocope with the extreme summer heat. Going forward, we will
work to keep per store emissions from rising.

FY200822.1 tOther

Note: 154,943t in FY2007

FY200719.3 tISO 14001 certification

Ministop environmental policy (Third revision)
Stores (electricity)
87.5％

FY2006
General waste

Bottles/cans

FY2008
174,678t

Delivery route is always newest and shortest

Cardboard
boxes

Delivery vehicles
11.2％

Headquarters (building)
0.2％

Delivery center checks processed data
in real time via internet.

Annual emission volume per store

Food waste

Headquarters(company vehicles)
1.0％

Deliverycompany

Non-burnablegarbage

Carbon dioxide emissions by operation

Deliverycontrol company

Since Ministop's founding in 1980, we have recycled 100% of the usedcooking oil coming from the preparation of fast foods, using outside
vendors to turn the used cooking oil into livestock feed, soap, or ink.

Fuel pellets(Solid fuel made of waste plastic,
burnable garbage, and waste paper)

Recycling plant

Food waste(about 9 kg daily)

Supplied to pig farmers

Turning pig manure
into compost

Pig farm

Pig feed (about 3.5 kg daily)

Reducing construction waste and reusing equipment
Ministop stores are built by assembling prefabricated units onsite. This construction method ensures the buildings comply withall building regulations and minimizes the amount of wastematerial produced, while also enabling unit reuse. During store
retrofit or closure, furnishings and equipment are collected at the
Ministop Repair Center where they are repaired andreconditioned for use in future stores.

Refrigerators/freezers
28.74 t (158 units)

U n i t c o n s t ru c t i o n me t h o dReconditioning a panini toasterat the Ministop Repair Center.

Kitchen equipment/furnishings
40.28 t(709 items)

38%
Reusedequipment and53%
furnishings

9%

Policy disclosure
We will make our Environmental Policy available to the public and properly
disclose all related information.

In-store furnishings, etc.
6.9 t (214 items)
BeforeAfter

14

Ministop and Our Employees
Ministop is supported by a wide range of parties, including customers,
shareholders, local people and communities, business partners,
franchise stores and employees. To remain a company trusted bysociety, we maintain open lines of dialogue with all involved parties
while carrying out our business activities.

Customers
Local people
andcommunities

Shareholders

Customers:
Our customers are all individuals and groups that utilize our products and services.
Shareholders:
We seek to return profits to our shareholders and investors by raising corporate
value through enhancing our finances and management, and by paying attention
to the social dimension.

Employees

Training system

NGOs
・
NPOs

NPOs and NGOs:
We work together with NPOs and NGOs in an effort to realize a sustainable society.

Employees:
Employees refers to individuals working in the headquarters. Each employee
seeks to contribute to creating a "motivated" company.

Sales Training

Development
Training

Product Training

Meeting
to compare
case studies

Franchise contract
officer certification
program

MD training

Manager training

Every othermonth

Listening to our customers
Complaints,
opinions,
requests

As needed

Database management,
analysis

Customer
Responses

OutsideInformation

Inform all storesof examples throughthe franchise newsletter

Call
CenterNew manager training

Primarylevel

Report the incident details internally
WeeklySA follow-up
training

Development
follow-up
training

MD follow-up
training

Intake training

Intake training

Sales meeting
Operations coordination meeting

Headquarters
Business partners
Stores

Product/service improvement proposal

MSP

SA preparation seminar

SA joint patrol

Customer service/store operation improvement proposal isreflected in franchise owner training

New employee training

Store advisors

Friendliness checks
Since 1997, we have conducted "friendliness checks" as a tool for improving each store's levels of customer service and cleanliness toensure that customers enjoy a pleasant shopping experience. During the visit, an independent investigator posing as an ordinarycustomer observes and interacts with store staff. The investigator completes an assessment based on points, and the store advisor
conveys the results and guidance to the store.
Fiscal 2008 results were better than fiscal 2007 results, but many issues were pointed out concerning customer service and cleanlinessaround the perimeter of stores, and stores are working to resolve these issues.

Universal design for stores
At Ministop, we are working to change our stores to conform to universal design standards so that customers with physical handicaps areable to visit our stores with peace of mind 24 hours a day. For example, we have installed automatic doors, toilets for persons withdisabilities, made store aisles at least 1.2 meters wide, and made other changes to make stores more accessible.

At least 1.2 meters

From 2008, the system was expanded to cover children up to the second year ofelementary school.

Balancing work and personal life

Bi-weeklyAsneededThe Women's Work Style Study Group, which was part of the 2008 Business Process
Transformation, issued and distributed to headquarters staff "Lifestyle NAVI," adocument that provides explanations on both company and social programs available
for women to utilize at different life events and stages, such as marriage, childbirth andchild-raising. Going forward, we will further promote initiatives in accordance with
employee diversity, including foreign employees and employees with disabilities.

Management
level

Ministop and Our Customers

Automatic doors

Training makes both individuals and the organization stronger, and leads to a higher
level of knowledge and a healthy attitude towards work. A passive approach does
not lead to results, however. An improvement in individuals’ abilities and awarenessmakes the organization stronger and leads to positive results. We train personnel to
use their own abilities to develop their careers and to take pride in their work.

Training system overview

Franchise (FC) stores:
We seek partners that share our goal to "be part of the community and provide
customer satisfaction."

自
動
ド
ア

Assistant Manager, Education and Recruiting Sec.,
Human Resource Dept., General Administrative Div.

Creating good workplaces

Business partners:
We build partnerships based on fair business practices.

Customer comments and opinions are extremely valuable
to us. To encourage communication, we created our callcenter in March 1998 and established the Customer
Response Policy in March 2008. All customer
communications received via our toll-free number and email are maintained in an internal database accessible byour stores, headquarters, and business partners, whowork together to ensure each topic receives the proper
attention and response.

Yukio Saito

Ministop's training system
consists of programs designedin accordance with individuals'
careers and responsibilities,
and allows each employee tobecome more skilled at his or
her own work.

Local people and communities:
We cooperate with local governments and law enforcement agencies, and respondin times of emergency.

Franchises

Business
partners

We have put in place a framework that allows headquarters staff to continually challenge themselves to grow in order to raise the qualityof stores and ensure customer satisfaction, while responding to the major trends in society.

MSP=Ministop Step-up Program
SA=Store Advisor
MD=Merchandiser (Product Developer)

Operations
training

By encouraging employees to find a balance between their work and personal
life, we aim to resolve problems concerning working hours and vacation days,
and to maintain and boost the motivation of headquarters staff.

Leave the office by 7 p.m. once a week
Employees are required to take 7 consecutive days off twice each year

Creating a dynamic workplace: One year after Business Process Transformation
At Ministop, we have carried out the Business Process Transformation for two
years beginning in 2007. Convenience stores must constantly make changes,
and we felt that under the former system we were not able to fully resolve
relevant issues. We therefore set our mind to building a better Ministop, andestablished a team to go across divisional boundaries to identify and resolve
issues. As a result, improvements were made with a focus on three areas:
People (human rights, diversity, and corporate culture), Stores (operations), andStore Advisors (sales).
With the Transformation we succeeded in creating a foundation whereby all
relevant divisions can work together to resolve issues identified by stores. Aware
that employee satisfaction is a reflection of customer satisfaction and store staff
satisfaction, we aim to create a corporate culture where all employees can
express their opinions and transform this openness into energy that produces
real results for Ministop.
We discussed the Business Process Transformation at the 2008 roundtable discussion. More details are available on the following website:
http://www.ministop.co.jp/eco_social/pdf/env_2008_en.pdf (See page 03 and 04)

15

Note: Not installed in some stores due to store location.

Shunji Kuwasako
Manager,
Store Operation Dept.,
Store Business
Promotion Div.
The efforts made by employees are juststarting to yield tangible results. Goingforward, we hope that the various initiatives
will steadily grow into large sources ofstrength for Ministop.

16

Ministop and Our Franchise Stores
Ministop consists of our corporate headquarters and member stores that have entered into a franchise contract. Ministop headquarters
provides study sessions, seminars and other programs to strengthen the mutual partnership and works with franchise owners to train
staff and promote store operations and activities-all with consideration given to the special characteristics of each store and local
community.

Headquarters and franchise store relationship
Ministop operates on a franchise system in which the headquarters
provides the franchise store with products, operating systems, and othersupport, and the franchise store pays royalties to the headquarters.
Ministop values its franchise partnerships as a rewarding combination of
the strengths of the headquarters and the franchise stores.
Ministop franchise system

Using Fair Trade as a Bridge to Connect Producers
and Customers
Ministop has been carrying fair trade products since 2006 as one way of helping address the problem of child labor in certain producer
countries. By selling fair trade products, we are providing profits to producers and peace of mind to customers.

Making fair trade products more accessible

The contract and conditions
Ministop provides prospective franchise owners with extensive
information materials a reasonable period in advance of the contract
signing to ensure the proper understanding of the franchise contract. The
contracts fully comply with the Small and Medium-sized Retail Business
Promotion Act, the Enforcement Regulations of the Small and Mediumsized Retail Business Promotion Act, and the Anti-Monopoly Law.

Trademarks, systems, know-how

Since November 2008, we have joined forces with People Tree, a fair trade
brand, to sell fair trade chocolate and dried mangoes at all Ministop stores.
We believe that on top of looking out for the physical health of our customers
by offering safe products, we can offer peace of mind by letting them enjoy
products knowing they are not promoting child labor.
Also, by carrying such products in local convenience stores, Ministop is
spreading awareness of fair trade products and serving as a bridge to connect
producers and customers.

Fair trade products timeline
October 2006
"Fair Trade Can Coffee Black"
Sales launch

Original
product

Today

February 2008

Future issues and challenges

Equal business partners
Franchisor(FC headquarters)

Growth through cooperation

Franchisee(franchise store)

Joining fee, royalties
Product
development, etc

Investment of capital
Staff recruitment

Communications, opinions, and requests received from the franchise owners via the Store Advisors (SAs)and Owner Consultation Department are conveyed by the store supervisor to the company president.

Franchise contract overview and key points

Before starting a franchise business

Number of franchise contracts1
FY2005

FY2006

FY2007(including relocated existing stores)

189

200

212

Franchise storesclosing during contract period2

67

79

82

Franchise stores
renewing contracts

98

84

110

Franchise stores
not renewing contracts

54

73

91

Contract conditions
Franchise store openings

Fair and balanced contracts
Franchise Contract Officer Certification Program
Ministop established the FC Contract Officer Certification Program toensure that prospective franchise owners have a complete
understanding of all aspects of the franchise contract content.
This system enables us to train staff with insight into what franchiseowners want to know and promotes development of motivated staff
capable of generating ideas for effective problem-solving. Certification isvalid for one year, meaning that Store Development Supervisors are
required to pass annual FC Contract Officer certification tests as they
strive to raise their skill level.

(including stores closed before relocation)

FY2006

FY2007

FY200885

8285

1. FLO (Fairtrade Labelling Organizations International): The organization that works internationally to coordinate Fairtradecertification in 23 countries.
2. Preda Foundation, Inc.: An organization that offers economically-disadvantaged farmers in the Philippines the opportunity
to earn income by growing mangoes, and uses the revenues earned to support children.

Kouichiro Shiraishi,
Litigation cases

FC Contract Certification Officers
FC Contract
Certification Officers

In the case of food products, especially processed foods, if non-fair trade items
are among the ingredients, FLO certification becomes difficult to obtain, so
even if the product is offered for sale, customers will not hear about the fairtrade aspects. 1
Also, high costs are a problem in Japan, because the overall fair trade market
is smaller here than in Europe and the United States. We succeeded in
procuring dried mangoes thanks to cooperation from the Preda Foundation, Inc.
and People Tree, but because most fair trade products rely on small-scale
producers, procuring a stable supply of raw materials will likely be a challenge
for future product development. 2
Going forward, we will continue to promote fair trade so that we can continue tospread the word through our stores.

1

Description

FY2005

FY2006

FY2007

Initiated by a franchise store
or franchisee

0

0

0

Initiated by Ministop

0

0

0

1. Fiscal 2008 data will be presented in the Franchise Contract Overview and Key Points scheduled for
publication in July 2009.
2. The contract period is seven years.

FC Staff Education Program - The Yellowtail Program

Assistant Manager, Processed Food Sec.,
Processed Food & Household Goods Dept.,
Merchandising Div.
As someone with a family, I cannot simply accept
child labor as someone else's problem. Throughproduct development I have been involved in fairtrade and have learned much. To offer customers
as many fair trade products as possible, we will continue to come up withnew ideas, clear the hurdles one at a time, and continue to pursue ourambitious goals.

(Course for Chinese personnel)
Ministop believes that motivated store employees directly translate into better customer
satisfaction, so we instituted the unique Yellowtail Program* in 2005 to educate employees andpromote consistency throughout the workforce. The number of participants has been increasing.
In 2007, we prepared an educational program for the increasing numbers of foreign staff
working in Japan. In 2008 we held a total of 18classes for Chinese nationals in the Tokyo, Tokaiand Kinki regions, and 56 staff attended theseclasses. At the classes, we helped the participants
to understand differences in business practices andculture, and gave them instruction we believe will
make them proud to work at Ministop.
Note: Because the program provides career-advancement opportunities
for employees, it is named after the yellowtail fish, which in Japan is
associated with gradual improvement.

17

Connecting producers
and consumers through fair trade products
Zhang Kaifeng

Yu Mingxia

Training Seminar Sec.,Store Operation Dept.,
Store Business Promotion Div.
Going forward, we want to visit theparticipants at stores and see how they are
doing, and otherwise continue to interact
with them outside of the classroom.

We had been hearing from customers that they wanted to buy fair trade
products but could not find them at nearby stores, so I think that by now
being able to buy fair trade products at convenience stores, these products
have become much more accessible to consumers. I am deeply grateful to
Ministop for practicing sustainable trade which is friendly to both people andthe environment, by providing a wide range of consumers with an opportunity
to support producers via fair trade, rather than by simply donating to charity. I
hope that Ministop will continue to connect producers with consumers byoffering fair trade products.

"Belgian Premium Soft Ice Cream""Fair Trade Chocolate Bar 3 "Sales launch in limited area,for limited period

June 2008"Fair Trade Can
Orange Concentrate"
Sales launch4

November 2008
"Fair Trade Dried Mango""Fair Trade Chocolate Bar 5 "Sales launch(sales limited to autumn and winter)

March 2009
"Fair Trade Pineapple Concentrate""Fair Trade Orange Concentrate"
Sales launch

May 2009"Fair Trade Café Au Lait"
Sales launch
3 and 5. People Tree product4. Ended can sales in November 2008, switched to plastic bottles

Safia Minney
CEO of People Tree
Not only does fairtrade help producers
raise their standard ofliving, it is a chance
to learn that respecting organic cultivationand natural farming methods leads toenvironmental protection.

18

Feedback Manager
Ministop utilizes various tools to communicate with customers, franchise stores, staff, shareholders and the
public about its environmental and social activities. We aim to provide the information they want in clear andeasy-to-understand formats.

Our online Feedback Manager system allows anonymous
submissions of opinions and comments about ourenvironmental and social activities. Readers can easily
enter their opinions according to topic covered in the report,
allowing us to convey specific feedback to the rightdepartment in the company.
Comment on activities to reduce the use of plastic shopping bags (Actual
text)●Are your activities to reduce use of shopping bags really genuine?
This also applies to other convenience stores companies as well, but
cashiers rarely ever ask me if I really need a bag. Particularly when thestore is busy in the morning, before I can say anything, the cashier puts
my purchases into a bag. (Woman from Tokyo)

Comment on the reuse of store equipment (Actual text)●In your reporting on dismantling of stores, are you listing the numbers of units ofequipment being reused? Or are you just comparing the increase or decrease in
the maximum number of dismantled stores? Or are these numbers the results ofyour efforts? The way information is presented is somewhat difficult to understand.
It’s good that you went through the effort of including that information, but
unfortunate that it’s not clear. (Woman from Kanagawa Prefecture)

Environment and Social Contribution Dept., Management Planning Div.
MINISTOP CO., LTD.
Kandabashi Yasuda Building, 3rd Floor 1-1 Kanda-Nishikicho,
Chiyoda-ku, Tokyo 101-0054
TEL: +81-3-3259-5284
Email: hp@ministop.co.jp
Thank you for reading the Ministop CSR Report 2008. We would like to know what you think of our activities andoperations. Please use the postcard below to send us your unreserved opinions and comments. Your input will be used tohelp determine our future activities and how we can continue to improve.

Communication Tools
for All Customers

Questionnaire

CSR Report

Call Center

Reports to Shareholders(Shareholder Briefs)
Company Brochures

Fewer People

WebsiteMore People
In-Store Broadcasts●Alcohol and tobacco age limits●Requests to turn off auto
mobile motors●Plastic bag reduction policy●Circle of Flowers program●No driving while intoxicated

Communication Tools
for In-Store Customers

Posters
Thank you.

About Ministop CSR report 2009

Which points in the Ministop CSR Report 2009 would you like to know more about?

Are there any items that you think should be reported in our printed version of the reportrather than just on the Ministop website? If so, please indicate them here.

Thank you.

Please share any other opinions or comments you would like to communicate to us.

●Website
The Ministop website introduces new products and provides corporate
data, explanations for people interested in opening a franchise,management information for shareholders and investors, and outlines ofour environmental and social activities. The website also carriesinteresting background information about some of our popular products.
http://www.ministop.co.jp/ (Japanese only)

キ
リ
ト
リ
線

Feedback Manager●Reports to Shareholders (Shareholder Briefs)
These printed reports provide details of interest to our shareholders,
including outlines of our business operations, along with detailed
financial information and management policies.

●In-Store Broadcasts
In-store broadcasts seek the cooperation of customers with
Ministop initiatives, such as requesting drivers to turn off vehicle
engines when parked and to participate in our efforts to reduce
plastic bag usage.
●Point-of-Sale Display Commercials
Post-of-sale LCD screens in stores introduce in straightforward
terms our environmental and social activities, such as reducing
plastic bag usage

Point-of-Sale Display
Commercials●Company Brochures
Ministop publishes company brochures about its business andfranchise system, particularly for prospective Ministop franchiseowners.
●CSR Report
For customers and all stakeholders, CSR reports introduce ourapproaches and the details of our environmental and social
activities.

●Posters
In-store posters introduce and seek customer cooperation in
Ministop activities and initiatives.

In fiscal 2008, the Call Center and individual departments received a total of 17,402 comments(116.9% compared to the previous year) from customers. Of the total, 67.0% were received by
telephone, 24.6% by the company website, and the remainder by letter and postcard. In March
2008 Ministop formulated a Customer Response Policy, and will use this policy as a platform forfurther use of customer comments to improve our business with our franchise stores and business
partners. Environment-related comments accounted for 1.7% of total, which was virtually the sameas the previous year. Note: Please refer to page 15 for more detail about the Call Center.
Comments about personnel(0.3%)

Other (1.5%)

About stores(32.4%)

Generalquestions(41.4%)

FY2008 comments
received by call center
March 1, 2008
– February 28, 2009

Location of parked cars
(blocking road traffic, etc.)
13 (4.1%)

Delivery truck noise(engine, door opening/closing
13 (4.1%)
Comments about disposable chopsticks,
reusable chopsticks
18 (5.7%)

About products(24.4%)

Fiscal Year

Number of comments1

FY2006

13,065（202）FY2007

14,880（224）

FY200817,402（314）

1. Numbers in parentheses indicate opinions and requests
related to the environment, but do not include requests forcopies of CSR Report, and do include certain categories
other than environment-related.

Other
54 (17.3%)

Inquiries about allergens
87 (27.7%)

FY2008 comments
about environmental
and social activities

Complaints about garbage
in vicinity of stores
28 (8.9%)
Bicycles left in vicinity of stores 7
Opinions about environmental initiatives 5
Request for materials for environment-related research 4
Questions and opinions about recycling 2

We received 90 comments with ideas and thoughts about the 2008 Ministop CSR
Report, issued in May 2008, and would like to thank everyone who provided valuable
feedback.1 We review every opinion and comment received and put them into action to
make improvements.

Complaints about
disorderliness (loitering)47 (15.0%)

Customer vehicle noise(noise from engine, music, etc.)
36 (11.5%)
Opinions about cigarette smoking stands in front of stores 2
Problems with people bringing household garbage
to store garbage receptacles 1

CASE 1 Comment about being disturbed by high school students who were loitering and smoking in front of a store
E-mail received on Friday, August 29
I am writing to report a disturbing incident I experienced in one of your stores at about 10:30 p.m. on August 29.
・A group of high school girls (judging by their uniforms) who were obviously minors, were loitering and smoking in front of your Hiratsuka Goten
store at an hour when they should be under adult supervision.
・Store personnel did not caution them on their behavior.
・The female students came to disturb my associates and me, who were in the store having food.
・Store personnel still did not caution them.
I had no choice but to call the police. I realize that excellence in hospitality may be difficult to achieve in a convenience store, but I would
appreciate it if you at least instruct staff to ensure that customers are to be able to eat, drink, and shop in peace. I often visit the store, and I see
this series of incidents as unfortunate. (Woman from Kanagawa Prefecture)

Number of requests for CSR report
Fiscal Year

1. From May 2008 through April 30, 2009.

Cases presented are the actual text.

Number of requests

FY20061,005

FY20071,663

FY2008942

Note: Includes data from ECO HOTLINE, a company to which we outsource report mailing.

1 What I want to know more about from the Ministop CSR Report 2008
Most frequent response was about food safety (20). Comments
about false labeling and food ingredients procured from China
and other countries accounted for half of these (10). Next mostfrequent: food recycling (19) and fair trade (10).
I make it a point to frequently look at product labels regarding
food safety. I would like to see you reduce the use of foodadditives. (Woman from Chiba Prefecture)

March 1, 2008
- February 28, 2009

Complaints about noisefrom customers talking
at storefront or in parking lots
18 (5.7%)

Note: Breakdown of "other"Opinions about fair trade 9
Odor in store 8
Garbage management situation 8
Opinions about packaging materials and plastic shopping bags 8

Customer comments received by call center

Regarding food recycling, it's good that you convert unsold foodinto something else like animal feed, but is it not possible to offer
the food as it is to people in need?
(Woman from Chiba Prefecture)
Environment and Social Contribution Dept.
(Yoshitaka Moride, Manager)
In all cases, it is most important that Ministop is able toensure physical safety and delicious taste for ourcustomers, so we refrain from offering as a product any
food that has exceeded the sales expiry date.

Regarding your ongoing reportage series titled "Fair Trade" there
are some things I do not fully understand. If you were to provide
more complete written explanations in your stores regarding fairtrade, I think that I and other customers as well would be able tobetter understand and cooperate. (Man from Osaka Prefecture)

2 Opinions and Impressions of the 2008 Ministop CSR Report

I think that "food safety" is what consumers demand above all today.
There have been a number of incidents lately in which companies
deceived consumers about the details of food being sold. My
conclusion is that you will gain trust if you can give customers theconfidence to think that, “I know that I can eat the food at Ministop
without any concern.” (Woman from Chiba Prefecture)
1. Last year you covered fair trade as the main special feature, and it
is commendable that you have followed up on that story. I hope thatin future you will connect that awareness of the issues to debate andaction.
2. I hope that in the future you will continue to expand your foodrecycling activities and turn unsold food into ecofeed for animals.
3. You could make an effort to print more detailed data and initiatives.
(Man from Toyama Prefecture)
Your method of mailing your report (sealing it with tape rather thanusing an envelope) is a refreshing idea. (Woman from Tokyo)
Your explanations of how Ministop is tackling various issues are well
written. I suppose that food safety and environmental issues areimportant and that they boost your relationship with society. I
suppose they also increase your costs, so please be sure to take asuitable profit.
(Man from Chiba Prefecture)

□ No
□ Yes
(Scheduled for release in June 2010)

Would you like to receive next year's CSR Report?

（

Telephone number□ Customer □ Business partner □ NGO/NPO□ Environmental officer for company/organization□ Shareholder □ Research/educational institution □ Student □ Governmental body）
□ Involved with a Ministop store □ Other（

ー
）

）
ー

From what stance did you read the report? (Check up to 2 boxes.)）

Gender（ M ・ F ）Age range（
Address 〒（We sent the store's telephone number to the customer, and through the store advisor we also conveyed the customer's message to the store.

Name

ReportEnvironment and Social Contribution Dept.,
Management Planning Div.
MINISTOP CO., LTD.
3rd floor Kandabashi Yasuda Building,
1-1 Kanda-Nishikicho, Chiyoda-ku,
Tokyo 101-8796-517

Call received on the toll-free number on Monday, July 14
The other day my two children were on their way to their grandmother's place, but they made a mistake and got off at Moji station instead of Mojiko station.
There happened to be a Ministop store near where they got off the train, and I heard from the children that a store staff member took care of them andmade sure they got to their destination. I would like to thank that person, but I do not know the area so I'm not sure which store to write to. Could you
please tell me that store’s location? (Woman from Fukuoka Prefecture)

差出有効期限平成22年5月
31日まで

CASE 3 Customer comment

キ
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9523

Report from store advisor
I believe this occurred because the garbage container belonging to the store was not locked, and it appears that someone picked out that garbage
and carried it away. Someone had recently played a prank by pouring glue into the padlock on the garbage container, so for a number of days thepadlock was not usable. Today, the owner went to the address indicated, and cleaned up all of the scattered garbage. Furthermore, the owner has
purchased a new padlock and has locked the container.

神田支店
承認

E-mail received on Sunday, January 13
Garbage from a store is being disposed at my apartment building’s garbage collection site. Contents include many receipts, packing slips, disposable
lunch boxes, and so on. Crows are making enormous mess of this. Please check into this and take action immediately. (Man from Saitama Prefecture)

料金受取人払郵便

CASE 2 Comments about garbage from a Ministop store being disposed in a non-commercial garbage disposal locationP O S T C A R D

At the store in question, the owner should have encouraged any customers who were high school students, judging by their uniforms, to go home
after 10 p.m. and have cautioned them about smoking. Police should also be conducting their rounds. In this incident, however, the store staff
failed to contact the owner about the problem. The owner strongly regrets that you were made to feel uncomfortable. We have been told that toprevent this kind of incident from recurring in the future, all night staff have been reminded that they are to notify the owner of problems, and when
the owner is not available, to contact the police.

Personal information written here will be used only as a reference for the
preparation of the next report. When subcontracting mailing tasks to outsidecontractors, Ministop supervises them properly and takes steps to prevent
unauthorized access and any leak or abuse of personal information. Except
where required by legislation, we do not provide personal information to any
third party.

Reply to customer