Number of stores

As of 28 February, 2010

Name
MINISTOP CO., LTD.

MINISTOP CO., LTD.

FY20071,728

FY20081,772

FY2009

1,834

Franchise stores in Japan

136,128（48.3%）

FY2007

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

282,240

79,152（28.0％）

156,415（51.6%）

21,577（7.6%）

11,275（4.0%）

302,91180,278（26.5％）

Processed foods
160,191（53.2%）

FY20092,021(million yen)

35,355（11.7%）

Representative
Nobuyuki Abe, President and Representative Director

1,939

187

34,106（12.1%）

FY2008

1,895

167

Revenues, by product category (including franchise stores)

Scope of business

(No.)
167

20,626（6.8%）

Fast foods, lunch boxes, etc.
76,505（25.5％）

10,235（3.4%）

300,442

Dairy products
Books, services Household items
34,231（11.4%） 19,994（6.7%） 9,520（3.2%）

Date establishedMay 21, 1980

Ordinary income(million yen)

FY20078,345

FY2008

CapitalZ7,491,533,000

7,152

FY20093,990

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

Stock exchange listing
Tokyo Stock Exchange, First Section(Listed August 1, 1996)
Company headquarters
1-1 Kanda-Nishikicho, Chiyoda-ku, Tokyo 101-0054

MaleFemale (No.)

FY2007

703

89

792

FY2008

725

117

842

FY2008

735

125

860

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

Editorial Policy

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)

A Word from the President●Policy
1. Written for the customers
We consider anyone who has any dealings with Ministop to be a "customer" (see page 2).
2. Readability
Besides writing in an easy-to-read style, we sought to produce a report compact enoughfor 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 thecontent 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
2009. Please visit our website for more details.
http://www.ministop.co.jp/eco_social/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.

01

Ministop at Thirty
Chat with the President

03●Period covered

Fair Trade: Delivering Prosperity and Wellbeing
Fair Trade: Realizing a Society Full of Beaming Smiles

Fiscal 2009 (March 1, 2009 through February 28, 2010)●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.

06

China:
3 stores
Republic of Korea:
1,207 stores
50 stores

Philippines:
283 stores
137 stores

1,834 stores

This year Ministop celebrated its thirtiethanniversary and adopted a new mission,"realizing a society full of beaming smiles."This mission is exactly what corporate social
responsibility (CSR) is all about. But we knowthat our mission will not be achieved only
through internal discussion. Communication
among many stakeholders must serve as thedriving force to accomplish it. Please send us
your opinions and feedback after you readthis report. The Editorial Team looks forward
to hearing from you.

Ministop's Key Initiatives
07

Environmental Initiatives

12

Ensuring Food Safety

Editorial Team: Tsuji, Ito, Noguchi
Kawasaki, Moride

Social Report

Contact:

MINISTOP CO., LTD.

MINISTOP Korea Co., Ltd.

N.B.G. MS Network Co., Ltd.

Robinsons Convenience

MS Kyushu Co., Ltd.

CSR MAP

Postscript

Stores, Inc.
Qingdao Ministop Co., Ltd.

Yoshitaka Moride, Shigeki Kawasaki, Hideaki Noguchi, Sukenori Ito, Kumiko Tsuji
Environmental & Social Contribution Section, Communication Promotion Dept.
MINISTOP CO., LTD.
Kandabashi Yasuda Building, 3rd Floor
1-1 Kanda-Nishikicho, Chiyoda-ku, Tokyo 101-0054
Phone: +81-3-3259-5284 Fax: +81-3-3294-2051
QR code for mobile website
http://www.ministop.co.jp/eco_social/pdf/env_2010_en.pdf
This report can be viewed at the website indicated above. It can also be downloaded in PDF format.
●Japanese edition (No.11) issued June 2010 (next issue expected June 2011).
●English edition (No.3) issued August 2010 (next issue expected August 2011).
●Reviewed by Cre-en Inc.

15

Ministop and Local Communities

17

Communication with Our Customers

19

Ministop and Our Franchise Stores & Employees

22

Third Party Opinion

Environmental Consideration for Printing This Report■Paper

The paper chosen for this report helps torejuvenate forests, as it is made from thetimber from the thinning of managed
forests.

■Ink

We support forest conservation by using
FSC-certified paper. The FSC 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).

■Printing Method

The "Waterless Printing" technology is awater-based developing method that releases nohazardous liquids. After the developing process,the effluent is harmless enough to be released
into the municipal sewerage system.

Cove
Co
Cover
er Me
Mess
Message
ssag
ss
age
ag
e
"Go En No Kizukai" Chopsticks from the Five Yen for Forest Care program
are made using woodthat comes from the careful management of thew
forests in the Yoshino
region of Nara Prefecture in Japan. Instead of the
Yoshtypical use of complete
logs to make disposable chopsticks, these special
compchopsticks are madema using the wood edges and ends (see photo) fromthe sawmilling process.
proc
Proper forest thinningand selective logging is essential for the proper
thinncare of managed forests,
but this work costs money. Revenues to coverfthose costs are needed
to help the functioning of a healthy forest industry.
nee
Imports of cheap timberfrom overseas are causing serious challenges fortiJapan’s forest industry.
By selling these "Go En No Kizukai" chopsticks,
indu
Ministop is helping make the Japanese forest industry more sustainable.

Note: See page 11 for more information about the "Go En No Kizukai" chopsticks.
(Photo location: Yoshino, Nara Prefecture (source of timber for "Go En No Kizukai" chopsticks)

e President
A Word from th

A new Ministop with eyes on the future

Ministop at Thirty: A New Mission
Ministop at thirty
I n M a y 2 0 1 0 , M i n i s t o p c e l e b r a t e d i t s t h i r t i e t h a n n i v e r s a r y.
Reflecting on the past 30 years, I believe Ministop has evolved inpace with the needs of the times as lifestyles changed with thewave of economic growth. Indeed, the entire convenience store
industry has evolved. The fact that our industry has been able tocreate this much infrastructure in society is, I believe, a large
achievement.
The downturn in consumption has made customers more selective
about products and service in recent years, so I feel it is importantfor us to have a new look at our own business.
We need to recognize the importance of interactions at the local
level through dialogue with customers in our stores every day,through our Child Internship Program, and so on, and to fulfill theproper role of each Ministop store in the community. In May 2009,
the Japan Franchise Association (JFA) announced the Declaration
on Convenience Stores as Infrastructure of Society. 1 As part of theinfrastructure of society, Ministop takes things further, working in its
own way to protect the environment and address food safety andsecurity, to contribute to the local economy, and to constantly
respond to customer needs.
Overseas, having already extended our operations into Korea andthe Philippines, in 2009 we also expanded into China. In both
Japan and overseas, we work to create new infrastructure while
respecting the cultures of each country, and aim to create newvalue in our roles as convenience stores.

Ministop's thirtieth year has been an important turning point. We
adopted a slogan of "going back to basics," reexamined our role insociety, and gathered ideas and input from the entire company. Now
we have adopted a new mission to be fulfilled together with ourfranchise stores. Our mission incorporates the idea of "realizing asociety full of beaming smiles," using Ministop's own special"deliciousness" and "convenience" to enrich the hearts of everyone
with whom we deal.
Dialogue is important if we are to fulfill this mission. To deepen this
dialogue, through the ABC (Abe Club) I have been making an effort
to directly exchange views with staff on a department-bydepartment level (see page 20). In addition, starting in fiscal 2010
we created the Ministop Customer Satisfaction (CS) Forum (seepage 19), in which each franchise store can dialogue directly with
Ministop management. By offering opportunities for this kind of
dialogue, we have been able to reach a shared understanding on
various issues more than ever before.
The importance of communication with customers was also raised in
the Chat with the President (see page 3). This discussion pointed
out that in the context of diversity of information and the interactions
between people, both inside and outside the company, better
communication is essential in order for individuals to better share
their thoughts and ideas.
Current economic conditions are not representative of the period of
the past 30 dynamic years, and customers today are only interested
in anything if it has real value. To help people feel a sense ofabundance, Ministop will constantly strive to offer true value, deepen
our connection with customers, and grow together with local
communities.

AEON's Basic Principles
As a member of the AEON group of companies, Japan's leading retail group,
Ministop adheres to AEON's Basic Principles and Code of Conduct.
The word "AEON" is originally a Latin word meaning "eternity."
The center of our philosophy is "our customers."
As a company that is committed to maintaining customer focus,
our consistent mission is to provide our customers with maximum benefit.

Peace

Our customers
PeopleCommunity

Peace: We are a company dedicated to the pursuit of peace
through prosperity.

People: We are a company that respects human dignity andvalues personal relationships.

Community: We are a company rooted in the local community anddedicated to making a contribution to the community.

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.

Protecting and nurturing the environment
One can easily get the sense that in society overall, concern about
environmental issues is rising. This is evident in meetings like theinternational conference on climate change (COP15)2 at the end of
2009, and an international conference on biodiversity protection(COP10)3 to be held in Nagoya in 2010.
To do its part to prevent global warming, Ministop is undertaking avariety of energy conservation efforts where the impacts are largest
in its own stores, in lighting, refrigerators, freezers, and so on.
In 2009, we introduced efficient LED lighting in store signage as
standard equipment in new stores. We also opened Japan's first
FSC-certified store in Saitama Prefecture (100% of structural
timber for the building is made using Japanese FSC-certified
timber). We are working both inside and outside our stores toreduce carbon dioxide emissions, through a variety of new
initiatives such as providing used cooking oil as a raw material forbiodiesel fuel, and launching a car-sharing service using store
parking lots (see page 7). Customers cannot see the actual LED
lights inside the store signs or the timber inside the walls, but aspart of our communication with customers, we make an effort to letthem know about our initiatives even in places where they cannot
see them.
Another example of our efforts is the "Kubiki" line of original chilled
sake (see page 11). Many of our people, myself included, haveactually gone to the sake brewery, and by getting directly involvedin the work of rice planting and sake making, have been able toreally experience the importance of human harmony with nature.
One could say with this product line, people, the environment andthe product are very closely connected to each other.

4. AEON people continually challenge themselves to find new ways
to accomplish AEON ideals.
5. AEON people support local community growth, acting as corporate
citizens in servicing society.

Nobuyuki Abe
President and Representative Director
Ministop Co., Ltd.

"Mission" of Ministop Business
We realize a society full of beaming smiles
with "deliciousness" and "convenience."

Spreading fair trade around the world
Ministop has already been handling fair trade products since 2006(see page 5). Fair trade is a very meaningful framework in society,because by protecting producers' interests it enables them to be
more self-sufficient. Unfortunately, however, the level of awarenessabout fair trade is still relatively low in Japan, and the volume of fairtrade products in the market is also relatively low, so there is a lotof room for expansion. Perhaps one reason for the low receptivity
to fair trade here is the lack of effort by the corporate world.
Some say that fair trade has not attracted many businessprofessionals, but Ministop has made it a goal to turn fair trade into
a viable business. As one step to accomplish this, in fiscal 2010 weappointed a person in charge of fair trade, and we aim to reallypromote fair trade, working also in liaison with experts, NGOs andother organizations.

Customers
Local communities

Business
partners

Franchise
Employees
storesShareholders

Ministop is supported by a wide range of parties, including customers, shareholders, local
people and communities, business partners, franchise stores and employees. We value
dialogue to help our business activities bring a smile to everyone with whom we interact.
Customers :All individuals and groups that utilize our products and services are our customers.
Communities:
We aim not only to offer convenience for shoppers, but also to serve as an essential part of our local communities,
through cooperation with local governments, schools, neighborhood activities, and more.
Business partners:
We build partnerships based on fair business practices.
Franchise (FC) stores:
Franchise stores are partners that share with headquarters our mission to be part of the community and bring smiles to customers.
Employees:
Employees are individuals working at the headquarters. Each employee plays a part in making this a company of motivated people.
Shareholders:
We raise corporate value by enhancing our financial performance and management, and also by paying attention to thesocietal dimensions of our business.

1. Japan Franchise Association (JFA) http://www.jfa-fc.or.jp/particle/108.html
3. 10th Conference of the Parties to the UN Convention on Biodiversity01

2. 15th Conference of the Parties to the UN Framework Convention on Climate Change

02Chat with the

President

Reiko Inoue

Shigenori Funaki

President
PARC Interpeoples' Cooperation (PARCIC)

Account Director
Business Planning Department, Business Producing Division, HAKUHODO Inc.

Approaches that emerged in the West have become
the international standard for fair trade today, but I
think it would be a good thing to develop a new style
centered on Japan and Asia. There is an opportunity
to do this now because the awareness of fair trade isstill relatively low here. I would like to find ways tocommunicate the meaning of fair trade that are easy
for Japanese to understand.

Fair Trade: Delivering Prosperity and Wellbeing
Ministop invited specialists to join an exchange of ideas and opinions about how to have more customers know about and be interested inbuying our fair trade products (see more on page 5).
This discussion was held on December 22, 2009.

Fair trade in Japan: Current status, issues,and Ministop's initiatives
Fair trade offers valuable ways to address social concerns indeveloping countries, but it should not be used only to promote
an image of social contribution; if fair trade does not mature intoa market that sustains fair trade mechanisms, it will not beeffective in solving problems. In this discussion we look atcurrent status and issues relating to fair trade, and reflect upon
Ministop's initiatives.

Abe

Popularity of fair trade products
Fair trade products still present many challenges, but to raise
their popularity, specifically, what kind of initiatives are needed?

I n o u e : Fair trade certification and labeling (see page 5) are
effective ways to help fair trade products get better
recognition, but certification does cost money. In Japan, alot of business is being conducted in folk handicrafts thatare not subject to labeling, so the level of awareness has
not risen higher and consumers are not yet at the stage
where they will choose to purchase a product simply
because it has a fair trade mark on the label.

: Ministop wants to offer customers a sense of fulfillment
and a new sense of value, so since launching sales ofFair Trade Can Coffee Black in 2006, we have added
other fair trade products, including chocolate, fruit juices,
dried mango, and so on. We continue to procure raw
materials, develop new products, and sell the products instores, while cooperating with manufacturers, nonprofit
organizations, experts, and others.

Maeda: Fair Trade Can Coffee Black was the world's first product

Funaki: Besides labeling as a means of letting people know more
about fair trade products, it might also be worth thinking
about
communication
approaches
available
toconvenience stores exactly because they are familiar topeople and located nearby in the neighborhood.

I n o u e : Many organizations are engaged in fair trade and work
under the principles of fair trade, even if their products are
not certified with an international label. The important thingis to convey the fact that they are fair trade products.
Labeling is an effective way to have people recognize a
product, but it is at best only one of several approaches.

of its kind. By offering it in cans, we made it easier forcustomers to purchase this coffee and have made theproduct easier to sell in convenience stores.

Fujimoto: This was a year of continued price-cutting in the coffee
market, but even though we maintained our original
prices on our Fair Trade Can Coffee Black, customer
demand was steady, so I get the sense that customers
also recognize its quality.

Abeproperly introduce products to customers. The same goesfor any product. This is why it is essential that franchise
store staff convey information during their interactions
with customers in the store, for example, by mentioning
the meaning of fair trade products.

I n o u e : It was during the 1980s and 1990s that fair trade really
got started in Japan, but it has been only in the past ten
years or less that the average person has become awareof fair trade. The awareness level and market here are
not as mature as in Western countries.

Maeda: Besides Fair Trade Can Coffee Black, Ministop has also
handled other fair trade products. But with the exceptionof coffee, it is difficult to secure a stable source of
product, so we tend to offer limited quantities for only acertain period of time or only in a certain part of thecountry.

Funaki: Perhaps Ministop can consider itself to be a communication
platform. Advertising is not the only form of communication.

Abe

03

Akihiko Maeda

Akihiro Fujimoto

President and Representative Director
Ministop Co., Ltd.

Managing Director, General Manager of Merchandising Div.
Ministop Co., Ltd.

Director, General Manager of Fast Food Merchandising Div.
Ministop Co., Ltd.

I would like to create a new sense ofvalue, different from the conventional
concept of a convenience store. Fair
trade is one of those new senses ofvalue. Ministop is looking seriously
at the issues facing fair trade today
and is committed to tackle themhead on in a realistic way.

We started this initiative with fair trade
products to create something of value
and boost customer satisfaction with
Ministop. Convenience stores arealways launching new products.
Many of them don’t survive as regular
products, but we are making an effort
to keep offering fair trade products.

If we can carry fair trade products inthe category of fast foods―for which
Ministop is well-recognized in themarket―I believe we can strengthen
our communication with customers
and win greater customer recognition.

Future initiatives
A variety of opinions emerged about addressing the issues
involved in fair trade products and popularizing them in Japan.
What approaches can Ministop take to tackle them?

I n o u e : I hope that Ministop will match up people involved in fairtrade and a variety of senses of values, help to create
cooperative relationships, and work collaboratively todevelop products.

Funaki: What if, in cooperation with experts, nonprofits, and otherorganizations, we were to establish Ministop's own
standards and communicate them to customers? This
would be something like Ministop's own fair trade label.

Funaki: I would like to see Ministop continue challenging itself
and working confidently as a convenience store
committed to continue selling fair trade products. I also
encourage you to develop ways to visually portray yourachievements in handling these products.

Fujimoto: There already exist various concepts of certification
labels for fair trade, but Ministop probably also has someof its own unique ways. We will consider the best
approaches to popularize fair trade products.

Funaki: To create a sustainable society, people need to get asense of fulfillment that cannot be obtained simply by the
pursuit of practicality. Fair trade products are one type of
product that can give people this sense of fulfillment.

Maeda: The fact that we are able to have customers enjoy buying
Ministop's soft ice cream as a regular Ministop product is,I think, because we have consistently communicatedabout our high standards for ingredients and production
methods to our customers. By engaging in this type ofcommunication with customers, we will work topopularize our fair trade products as well.

Abe: Fair trade products will probably not become more
popular just because they are fair trade products. We
have to satisfy customers on all dimensionsーproductquality, price, and the message that comes with the
product.
From this discussion, I also realized the importance of
having store staff who can properly communicate themessage about fair trade products when customers ask
for them, so that customers can really feel the sense offulfillment not possible through mass production andmass consumption.
We will work to further develop, offer, and popularize fairtrade products and contribute to society in Ministop’s own
special way as a convenience store.

: We can also see some potential for word-of-mouth toFunaki: I believe Fair Trade Can Coffee Black has its own strong
customer appeal as a coffee beverage in a can. It sells
because the product itself is appealing. From thecustomer's perspective, it is after drinking the coffee thatthe person becomes aware it is a fair trade product. The
next time, the customer may decide to seek out a fairtrade product to buy.

fair trade products in Japan. Packaging and stocking arestill done mostly in small units in Japan, with the result
being that production costs are higher than necessary
here compared to Europe.

interest in fair trade, one problem is that not enoughinformation is getting across to consumers. Interest in fairtrade is gradually rising today, so it is important to let
more people know that they can buy fair trade products at
Ministop.

Nobuyuki Abe

spread product awareness. For example people may
mention to family and friends that Ministop is carrying fairtrade products, or simply raise the topic of fair trade.

I n o u e : These kinds of problems always arise when we try to sell

Funaki: With the exception of people who have a higher level of: It is essentially the store staff who have the ability to

A key question is how you want customers toview Ministop's fair trade products, so your choiceof how to communicate the message is critical. If
you can establish these as strategic products that
Ministop customers can feel an affinity for, I think
you can create a sense of attachment for
Ministop as their store of choice.

Abe: We cannot ignore the price point if we want to popularize
a product. I would like us to create a framework that can
attract a lot of customers to make a purchase, while we
still maintain a certain price and product quality. This is aframework we can achieve and these are products wecan procure exactly because of the large number of
Ministop stores, so we will tackle the issues of fair trade
products while making the most of our strengths.

Note on fair trade: By paying fair prices to producers and laborers of low social and economic standing in developing countries, fair trade helps to protect their rights and support their independence.

04

CSR MAP

Fair Trade: Realizing a Society Full of Beaming Smiles
Ministop has been carrying fair trade products since 2006. By having customers purchase fair trade products, we are both securing the profits
of producers and delivering peace of mind to customers.

Ministop's Initiatives for tthe Environment and Society
MinistopMi
i t aimsi
tto create
t storestwherehallll people
l iinvolved
l d will have smiling faces.

P3 - 5
Sustainable trade
We promote fair trade and convey
the smiling faces of producers.

'st o pp'sM
Miinniiss t od ee
ffaaiirr ttrraa dts
pprroodduucc t s
Mango growers
C Mayumi Ishii/People Tree

P7 - 9
〜
2010

Fair
F
i T
Trade
d C
Coffeeff
Dominican Republic

Fair Trade
Can Coffee Black

〜
2006

〜
2008

Preventing global warming
We reduce CO2 emissions,particularly by curbing electrical
power consumption at stores.

Fair Trade
Dried Mango

P19 - 21
Turn lights on only
when people are present

P10 - 112008
Fair Trade 100% Pineapple
and Orange Juicefrom Concentrate

2008
Fair Trade
100% Orange Juicefrom Concentrate (in cans)

2009

2008
Fair Trade Cafe Au Lait
Fair Trade Tea Au Lait

More than half of the people in England and Germany know about
the concept of fair trade, and in these countries the market for fairtrade products has grown to a considerable size. The spirit of fairtrade is for producers, retailers and consumers to all enjoy thebenefits of fair trade products, and to support the continued
independence of producers. Another big advantage is that many fairtrade products are healthy because they use organically-growningredients.

Trrade Chocolate
Chocolate Bar
Fair Trade

Carefully using resources
We reduce the use of unnecessary plastic
shopping bags and disposable chopsticks;
we recycle food, and otherwise use
limited resources effectively.

2008
Fair Trade Belgian Premium
Chocolate Soft Ice CreamFairtrade Certification
Mark: Only businesses
which have met thestandards set by Fairtrade
Labelling Organizations
International (FLO) arelicensed to use this label. FLO-CERT, an
independent organization, verifies
compliance with the standards.

Creating a dynamic workplace
By placing importance on dialogue with franchise
stores and employees, we aim to create
workplaces where all people associated with
Ministop can work with pride.

Save energy by switching to
air conditioners with inverters-Save energy by switching toin-store lighting fixtures with inverters-Automatic brightness adjustment
depending on outside light

FY2009Number offair trade
products soldPrevent condensation
without door heaters
Save energy by switching torefrigerators and freezers with inverters

1.36

LED lighting

millionP15 - 16
Co-existence with local communities
We aim for our stores to be part of thefabric of local communities throughactivities such as our Child Internship
Program.

P12 - 14

Promoting fair trade products

Future initiatives

In 2009, we launched sales of three new fair trade items.
While few customers choose an item just because it is afair trade product, we hope that since we will continue
selling these products, more customers will discover themand become interested in fair trade. In May, we starteds e l l i n g F a i r Tr a d e C a f e A u L a i t , a n d s o l d o u r e n t i r einventory in just one month. Besides coffee, which has ahigh sales volume, it is extremely difficult to develop otherfair trade products from a priceperspective, but I hope to expand ourfair trade lineup to other items as well.

Going forward, I would like to focus on two big
objectives: having people understand the fair tradeconcept and knowing what effect buying theseproducts has, as well as expanding the lineup of fairtrade products we sell in our stores. It is important for
franchise stores, employees, NGOs, NPOs, customers
and other people in a variety of positions to takeadvantage of their respective strengths and work
together to accomplish theseobjectives.

Safe and delicious products
We conduct rigorous checks to makesure that people feel safe eating ourfoods, including fast food.

AT

M-Turn lights on only
when people are present-LED lighting

Vehicles that run
on natural gas

VNG
P17 - 18

Rie Zukawa
Dessert & Beverage
Merchandising Dept.,
Merchandising Div.

05

Sachiyo Okamura
Coordinator Merchandising Dept.,
Merchandising Div.

Communication with customers
We value our dialogue with customers andcreate stores in which they can enjoy
shopping.

06

ey Initiatives

Ministop's K

Ministop launches car-sharing service3

Environmental Initiatives
Because at least 80% of Ministop's total CO2 emissions are from electricity use at stores, keeping our power consumption down is an
important part of our efforts to prevent global warming.
In addition to reducing electricity consumption in our stores, Ministop is advancing various efforts together with customers to prevent global
warming.

Energy intensitywith FY1990

Reducing CO2 emissions at stores

Reduction of

in stores compared26.6%

To cut CO 2 emissions, Ministop has set the goal of reducing
the energy intensity in stores by an average of 23% (comparedwith the fiscal 1990 level) between 2008 and 2012. 1
Refrigeration and freezer equipment uses the greatest amountof electricity at Ministop stores, accounting for 39.1% of thetotal electricity consumption in stores. Therefore, Ministop has
been working steadily to install high-efficiency freezers andrefrigerators.
Ministop has successfully reduced the energy intensity instores by 26.6% (from the fiscal 1990 level) in fiscal 2009 by
gradually introducing the latest energy-efficient air conditioning
and lighting facilities at existing locations.

in FY2009

0.178
1990

Base year

0.138
0.140
2006

0.135
2007

Averagereduction of

23%

from 2008
to 2012

0.131
2008

1. Energy intensity (kWh/m 2・h) in stores is the amount of energy consumed per unit of floor
space, per hour of store operation.

2009

Target2012 (FY)Stores constructed using FSC-certified wood
Switching store signs
to LED lights
Ministop is reducing electricity consumption
by 63.8% from conventional stores byswitching the light tubing of our three-color
decorative facade store signs fromfluorescent to LED lighting, beginning withnew outlets in the last half of fiscal 2009.
We are also reducing electricity
consumption 55.4% by adopting LED
lighting for our pylon signs as well.

Number of storesthat introduced
LED lighting
in FY200934

In December 2009, Ministop opened the Ministop
Koshigaya-Laketown East Store, in Saitama Prefecture, thefirst commercial facility in Japan constructed using 100%
FSC-certified timber grown in Japan. This store itself is also
FSC-certified.2
At stores built using Japanese FSC-certified timber, the CO 2
emissions generated from resource extraction through tomaterials production are 33% less than generated forsteel-frame structures. These stores contribute toward Japan's
goal of using forests to reduce CO 2 emissions by 3.8%, torealize the Kyoto Protocol targets.
Ministop plans to open at least 20 FSC-certified stores per
year from now on.

Ministop launched the "i-share" car-sharing service, whichmakes use of convenience store parking lots, in collaboration
with Japan Car Sharing, Inc. from October 2009.
We aim to meet consumer demand for access to cars justwhen people want to use them, taking advantage of
convenience stores, which have become part of theinfrastructure of our lives. While expanding the number oflocations where this service is offered, Ministop is also
considering the introduction of electric vehicles and charging
stations to further reduce impact on the environment.

In August 2009, Ministop began providing usedcooking oil as a raw material for biodiesel on atemporary basis in fiscal 2009 from 218 stores (as ofJune 2009) in the 23 wards of Tokyo. 4 The used oil
was refined into biodiesel, blended with light diesel(to make B5 fuel), and mostly used for municipal
buses.
The use of this fuel reduced CO2 emissions by about
83 tons per month compared with using light diesel
only.

3. Car-sharing is a new model of car use whereby individual cars are accessed (shared)by multiple users.

4. Biodiesel is a plant-based fuel. While the combustion of biodiesel
does emit CO 2 , this is the CO 2 that was fixed in the plants fromwhich the fuel was made, so these are not counted as new CO 2
emissions. Biodiesel is considered to be carbon neutral, andreduces CO 2 emissions when it replaces fossil fuels.

Sales of carbon offset products5
In 2008, Ministop began selling carbon offset products,
whereby customers can contribute to the reduction of CO 2
emissions by buying products.
When customers purchase carbon offset products, a portionof the sales price is used to purchase CO2 emissions credits
under the Clean Development Mechanism (CDM) of the
Kyoto Protocol. 6 These credits are donated to the Japanese
government to help Japan achieve its CO 2 reduction
goals. In addition to regularr carbon offset products,
Ministop introduced carbon offset winter gifts
in 2009.
Total sales
2008

of 2009 carbon offset
winter gifts

373
units

Carbon footprintlabeling
Ministop is participating in
activities toward theestablishment andauthorization, under Japan's
carbon footprint system, of a
PCR for chilled beverages. 7, 8
Unified carbon footprint mark7. Carbon footprint system: A Japanese government initiative to prevent
global warming whereby the life-cycle greenhouse gas emissions(CO 2 emissions equivalent) from a given product or service arecalculated, and clearly displayed with a unified mark.
8. PCR (Product Category Rule): The PCR stipulates the use of common
CO 2 emissions calculation standards for each product or service
category.

Hello Kitty shopping bags and tumblers

2009 ftsi
er g

storesProviding used oil for biofuel

wint

2009 fts
i
er g

wint

Cutting work-related
travel emissions
Ministop Store Advisors, who move from one store to
the next, frequently travel by car.
We are recommending the use of public transport andof park and ride arrangements to reduce the CO 2
emissions from car travel.

LE
07

Shabondama Sekken(additive-free soap company) gifts

D
2. FSC certification: The Forest Stewardship Council (FSC) is an international non-profit
organization which provides certification of lumber that is produced in an economicallysustainable manner. The certified lumber is produced giving consideration to preserving
the forest environment, and without harming the interests of local communities. The
use of FSC-certified products contributes to maintaining the health of the world's
forests and protecting the global environment.

People TreeFair trade organic herb tea set
Fair trade organic tea set

5. Carbon offset products: Products for which CO2 emissions credits are purchased to offset
the CO2 emitted during product manufacturing, etc.
6. Clean Development Mechanism (CDM): The CDM is a framework under the Kyoto Protocol
whereby industrialized nations provide technical, financial or other support to reduce CO2
and other greenhouse gas emissions in developing countries, and the donor nations candeduct a portion of the emissions reductions achieved from their own emissions volumes.
These reductions can be bought and sold as emissions credits.

08

Ministop Environmental Policy (Third revision)

Environmental management
Conformity with ISO 14001
Starting in fiscal 2010, Ministop will check the status of conformity with
ISO 14001 environmental management system requirements throughinternal audits based on Ministop's environmental manual.

Greenhouse gas management
Ministop created its Greenhouse Gas1 Management System based on
GHG Guidelines2 with the aim of effectively reducing greenhouse gas
emissions throughout its operations. In 2005, the company implemented
the GHG Management System at all levels of its organization andbusiness activities,3 to cover direct emissions caused by delivery fromthe Joint Distribution Center, stores, offices and staff travel between
offices and stores.
1. Six greenhouse gases are defined in Japan’s Law Concerning the Promotion of Measures
to Cope with Global Warming (1998), including carbon dioxide, methane, nitrous oxide, andthree chlorofluorocarbon (CFC) alternatives.
2. The Guidelines for Company Reporting on Greenhouse Gas Emissions (2005)
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.

We will consider the global environment, together with our customers,
franchise stores, and business partners. Aiming to create arecycling-oriented society, we will learn together and take action, with a fullrecognition of our respective roles.
Continuous improvement
We will continuously improve our environmental management systems,
and will set and periodically revise our environmental targets andobjectives based on this Environmental Policy. We will incorporate
environmental practices (green procurement, resource conservation,energy conservation, reuse, recycling, waste reduction, etc.) into all ourbusiness activities.
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 tree planting and other environmental
protection activities.

Reducing waste
Food product recycling(Direct emissions)Customer

Delivery vehicles

Stores(As of February 28, 2010)
All stores recycle cooking oil
Future priority areas for recycling
Implementation area

Aichi: 26 stores(In Nagoya)

Kinki region
Under review

About 10 kg
daily per store
Lunch box

Policy awarenessWe will promote awareness of our Environmental Policy among Ministop
employees and all people associated with Ministop operations.

StoresComposting
As of endof fiscal year

Food waste
Transported
via refrigerated
truck

20

2006

Headquarters (offices)
0.2％

Headquarters (company vehicles)
1.0％

Other
0.2％

Delivery vehicles
11.7％

FY2009164,687t

Stores (electricity)
86.9％

Initiatives at company headquarters and offices

Note: 174,678 t in FY2008

Distribution initiatives
Annual amount of electricity consumption per store（kWh）195,000

190,937

191,072

191,540

190,000

185,982
185,000

180,000

Ministop has worked to reduce the total number of delivery routes by making
routes more efficient, thereby increasing the number of stores serviced oneach route. As a result, the driving distance per store has decreased by 2.1
kilometers since fiscal 2008, while average monthly emissions of CO2 andother greenhouse gases have been cut by approximately 29 tons.
In addition, we have proactively introduced vehicles that run on compressed
natural gas (CNG). As of February 28,
2010, we had 34 CNG vehicles in our
fleet. In fiscal 2010, we aim to reduce
the weight of our temperature-controlled
delivery trucks by approximately 85
kilograms, thereby increasing fuelefficiency and reducing CO2 emissions.

２００７

２００８

09

252

269

253

260

19
2008

260

279

270

275

EcofeedPig farm

5
2009

Commitment to quality feed0

For our food recycling initiatives to be sustainable, the feed and compost from foodrecycling must be of high quality so as to satisfy farmers. To this end, Ministop uses
high-grade recycling plants and plays a central role within the AEON Group to develop
schemes that will ensure stable supplies.

50

100

150

200

250

300

(Number of stores)

FY2009
Food recycling
rate

47.4%

Since Ministop's founding in 1980, we have recycled 100% of the used cooking oil comingfrom the preparation of fast foods for our stores, using outside contractors to convert the usedcooking oil into livestock feed, soap, and ink, etc.
We also carried out a project (see page 8) to supply used oil as a raw ingredient for biodiesel
fuel.

Reducing construction waste and reusing equipment
For buildings that meet certain requirements, we assemble prefabricated units on-site, which
Reused equipment and furnishings
reduces the amount of waste material produced.
Air conditioning-related items
Signs
When stores are renovated or closed, furnishings and equipment are collected at the Ministop
5% (62 items)
1% (14 signs)
Repair Center, where they are repaired and reconditioned for use in future stores.
In-store furnishings,
Unit construction method

Repairing a microwave oven at the Ministop Repair Centeretc.
(112 items)

8％
17％

Refrigerators/freezers(222 units)

２００９(FY)
Natural gas-powered truck

2007

About
3.5 kg daily
Turning pig manure
into compost

0

２００６

258

7
Recycling plant

Carbon dioxide emissions, by operation

238
17

Meat usedin lunch boxes

Offices

The headquarters and other offices strive to reduce CO2 emissions byinstituting "cool biz" and "warm biz" dress systems (these terms relate
to a government-sponsored awareness campaign promoting businesswear that better matches the season, in order to reduce office heating
and cooling costs), and by setting the
air conditioning at appropriate
temperatures.
In addition, the Saitama Nara-machi
Store (Saitama Prefecture) began
using an electric vehicle (Mitsubishi
Motors i-MiEV) on a trial basis infiscal 2009 to contribute to lowering
Electric vehicle i-MiEV
CO2 emissions during staff travel.

Producing feed2005

Contract farmer's
rice paddy(Indirect emissions)

Kanto region
Tokyo: 178 stores
Kanagawa: 53 stores
Chiba: 13 stores

Stores recycling food waste

Rice usedin lunch boxes

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

Staff travel between
offices & stores,
store development
research

Miyagi: 5 stores

Ministop's food recycling loop

Scope of GHG Management System
Joint Distribution
CenterAreas recycling food waste

The fiscal 2009 food recycling rate was 47.4%. In accordance with Japan's Food Recycling
Act, we will continue to work towards a target of increasing the recycling rate by 2% eachyear through 2012 to achieve our ultimate target of a 50% recycling rate.
Ministop views leftover food items not as waste but as a resource. In 1998, we began trials
and tests of composting and other methods to recycle leftover food. The result was the startin 2004 of our "ecofeed" project, producing feed mainly for use by pig farmers.
Meat from pigs raised on ecofeed is used in our minced pork cutlet lunch boxes, which went
on sale in April 2008. The ecofeed project is currently in operation in Kanagawa Prefecture,
and we plan to gradually establish similar projects in more regions in the future.
In addition, we are implementing a program in which pig manure is turned into compost andused by farmers under contract to cultivate rice. We aim to create 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.

BeforeDuring repair

FY20091,320 items 69％

Kitchen equipment/furnishings(910 items)

Repair completed10ey Initiatives

Ministop's K

Reducing usage of plastic shopping bags and disposable chopstickss
Because convenience stores sell box lunches and other prepared food for customers to heat andenjoy right away, and because most sales are to people on their way to something, we always makesure to ask if customers need plastic bags or disposable chopsticks, rather than automatically giving
them to everyone.

33％

Reducing plastic bag usage
We hope to change customers' habits, by asking those who do not really need plastic bags tocooperate in cutting down on unnecessary plastic bag usage and making sure that appropriate sizedbags are used; we are also increasingly utilizing bags that use less material. By continuing our
experimental effort to provide cash back to customers who do not use bags, we achieved a 33%
reduction in plastic bag consumption in fiscal 2009 (exceeding our target of a 32% reduction
compared to 2001).
We will continue to strengthen our efforts, with a 2010 goal of achieving a reduction of 35% in plastic
bag consumption compared to 2001.

Ensuring Food Safety
地域との共生Average store
consumptionof shoppingbags comparedto FY2001

reduction

Annual usage of shopping bags per store
14%
reduction

25%
reduction

33%
reduction

877kg

764kg

687kg

FY2001・・・ FY2007

FY2008FY2009Number of items given out per store each year
FY2007

FY2008FY2009Shopping bags

235,861

227,495

218,868

Disposable chopsticks

54,51353,12849,2501,025kg

In-store sign encouraging
reduced usage of disposable bags
and chopsticks

Supporting the "Go En No Kizukai" Chopsticks campaign
and the "My Chopsticks Club"We participate in waste-reduction activities through our stores, including the "My
Chopsticks Club" and sales of our "Go En No Kizukai" (Five Yen for Forest Care)
Chopsticks, which contribute to the "KIZUKAI-UNDO" (Wood Products Use Campaign)
to revitalize forests by making use of domestic timber thinnings. In addition to reducing
the number of chopsticks we give to customers, we work through our stores tocommunicate the benefits of more customers using our "Go En No Kizukai" disposable
chopsticks.

At Ministop, we undertake a variety of efforts to ensure that our customers can enjoy our products with peace of mind.
In addition to ensuring sanitary conditions at all our stores and withdrawing any products that have passed their expiration dates, we
carefully control the quality of our products at every step, from the procurement of raw materials to processing at our plants, and up to thepoint of sale.

Quality and hygiene control
Cooperation with our suppliers

Hygiene and quality management at stores

Ministop brand products (including fast foods, box lunches, bread
products, prepared foods and cooked noodles) must undergo a"line test" prior to sale, to confirm that the products meet
specifications for taste and product safety.1 Product inspections arealso conducted in-store to ensure safety.
We further ensure safe and reliable products by having third-party
audits that confirm the hygiene and quality management conditionsat our factories. We utilize world-class inspection agencies toensure the safety of the production processes of our overseas
suppliers.
In addition, we have created a Quality Improvement Committeethat brings together our business partners, and regional
sub-committee meetings are held regularly so that each company
can share information and know-how, including with government
and industry participants. Through sharing best practices, we work
to improve the level of performance of each processing plant.

To continue to provide safe and reliable products for our customers,
third-party "store hygiene audits" are conducted twice each year,
including surface swab tests of equipment and fixtures, oil
oxidation tests, checking of hygiene conditions in kitchens, andchecking of product storage and control conditions. Store Advisors
also conduct inspections each week to verify hygienic conditions
and quality assurance at our stores.
The equipment that serves our soft ice cream, a popular Ministop
product, is sterilized daily, and disassembled, cleaned andsterilized every week, with quarterly safety inspections andreplacement of parts. Additionally, third-party product testing is
performed six times per year, toensure product safety.

1. Line Tests: Tests conducted on the actual production line to verify that products are produced inaccordance with required quality standards prior to offering them for sale.

Choosing products with confidence
Allergy and nutrition information

TOPICS
Since 2005, Ministop has collaborated with the Kubiki Sake Brewing Co.,
Ltd., based in Kakizaki, Niigata Prefecture, on the Kubiki line of original
nal
chilled sake.
Ministop set out to create fine sake products, and our initiative spread as far
as those working in rice paddies and sake breweries, addressing every
eryelement leading to fine sake, including the land, water, rice, and even therice malt. Our employees have even participated in rice planting andharvesting, as well as the preparation and pressing stages of thesake-making process, sharing both the hard work and the joys of theprocess.
Our hope is that through these products, we can provide an opportunity for
not just those producing and selling the products but everyoneーincluding ourcustomersーto join with us in thinking about the value of nature. For thisreason, since 2008, we have also donated a portion of sales to support tree
planting activities in the watershed around Kakizaki.
We aim to contribute to public appreciation of biological diversity throughthese tree-planting activities and by helping people learn about water.

11

We provide nutritional information and warnings of potential allergens on the product labels of our box lunches, bread products, preparedfoods, cooked noodles and other food items. Information is provided on 25 allergens, including the seven items mandated by law, as well as
for eighteen items that we list voluntarily.
Allergen and nutrient information for our fast food items is also available through our website and special web browser for handheld devices.
In consideration of those customers having multiple allergies, we make it easy to search these websites for multiple allergens (up to 25
items), allowing users to specify whether they are searching for products that either do, or do not, contain the specified items.

Screen views of our online allergen information websites (http://www.ministop.co.jp/menu/allergen/) (Japanese Only)

Users can check for allergens,calorie counts and other nutritional information.

Users can searchfor products containing
potential allergens.

12

The
Crunchy Chicken
Story

Raising
chickens

Sales

Ministop's popular Crunchy Chicken, a delicious
combination of chicken and potatoes.
Here is the story behind this safe andd tasty treat,from the source to the customer.

To
The chickens are raised on a poultry farm in the outskirts of Beijing under amanagement policy formulated by the poultry farm based on the "Five
Uniformities" recommended by the Chinese government.

Wang Wan Li
Chicken Farm Plant Manager
BEIJING HUADU BROILER CO.

ormitiestry)

r raising poult guidelines fornmen(Chinese gove

Cuttingfactory

pplierby the same su
chicks provided
Have all broiler
disease
s:
on
ick
mm
Ch
co
rm
ifo
low
fol
・Un
all poultry farms
nization: Have・Uniform Immu
ns
tio
ula
reg
disinfection
supplierprevention anded from the samee all the feed us
ds
urc
So
:
ed
Fe
me
nage nt metho
・Uniform
medicine and mabutchering
ine: Use uniform
for
dic
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Me
ba
rm
gle
ifo
・Un
ture birds in a sin
ering: Ship all ma
・Uniform Butch

Chicken meat
inspections

The chicken meat is inspected prior toacceptance for shipment using testingfor viruses and so on, on samples fromeach coop.

13

The inspection laboratory,
which has received ISO
17025 certification, runs
tests to confirm that thebirds have no diseases.
This ensures that only
high-quality, safe chicken
meat is used to make
Crunchy Chicken.

Because the chickens are preparedat a cutting factory adjacent to theprocessing plant, they can beprocessed raw, without losing theirflavor.

Wang Hong Wei
Veterinarian and Vice President
BEIJING HUADU BROILER CO.

All Crunchy Chicken is prepared at a chicken meat processing
plant in the outskirts of Beijing. This facility has received ISO 9001,
ISO 22000 and other certifications, and implements strict quality
management under the HACCP standards. 1 The plant is also
certified as a heat processing facility by Japan's Ministry ofAgriculture, Forestry and Fisheries.

Flavoring

The chicken is marinated in aliquid with potato flour, which
gives Crunchy Chicken its
flavor.

Han Jian Fei
Vice President
BEIJING HUADU BROILER CO.

Fried one more time at the store and served tothe customer!

It took about 18 months to create
Ministop's original Crunchy
Chicken, from concept to
product. We wanted to achieve acrisp, crunchy sensation withsimple in-store handling. We
carried out extensive researchon the ideal size and shape. I
can recommend our Crunchy
Chicken with all confidence.

Processingplant

The most important aspect of chicken farming is good health management to prevent birds
from becoming ill. The farmers carefully control temperature, moisture and airflow in thechicken coops, and the birds receive regular health examinations by resident veterinarians.
To prevent infection, the coops are located away from town, and the entry of humans isstrictly limited. The manager resides on site, and avoids all outside contact. The coops also
follow the all-in, all-out method whereby all the mature birds are shipped at once and thenreplaced with an entirely new batch of chicks after the coops are sanitized in accordancewith international standards.
The birds are given feed prepared at a directly managed factory and raised under uniform
practices for three generations (grandparent, parent and product generations) to produced
high-quality
high quality chicken meat.

The Five Unif

!
an
p
Ja

Coating

The chicken is delicately coated byhand with specially produced breadcrumbs that are mixed with raw
potatoes, and then deep fried in oil.

Fumiaki Mitsuzuka
Food Section
Fast Food Merchandising Dept.
Merchandising Div.

1. HACCP is an abbreviation for Hazard Analysis and Critical Control Point.
When used in food products manufacturing, the HACCP management system identifies potential foodsafety hazards, specifies critical control points, and continuously monitors these points to prevent risks.

Frying, freezing and sorting

The chicken is fried, frozen,
and sorted by color and size.

We do certain work by hand at the production
plant to bring out the flavor of chicken andpotatoes. We cannot produce the best chicken
without the direct attention of each employee.
We e d u c a t e a l l o u r e m p l o y e e s i n q u a l i t ymanagement and hygiene management. We
help workers from distant regions find housing,organize recreational activities, and otherwise
strive to create a comfortable work environment.

Inspection and packaging

The finished product is packaged
after a final inspection to check for
any foreign matter or otherirregularities.

Third-party inspectionsof Ministop supplier factories
SGS conducts annual inspections on 252
items specified by Ministop, including
verification and discussions on
improvements with factory managers. 2
The SGS inspections have given highratings to the Crunchy Chicken plant.

2. SGS is an inspection, verification, testing and certification company
based in Switzerland.

14

Social Report"Safety Station" activity

Ministop andLocal Communities
地域との共生What is a Safety Station?
One role our stores play on a daily basis is to serve as "a safe and secure base" within the community. Through our voluntary efforts toprovide Safety Stations, we partner with local communities and governments, helping nurture a safe and secure community and provide a
healthy environment for young people. The Safety Station program is organized under the Japan Franchise Association.

Ministop strives to gain the trust of those we serve, making the most of our unique position as a convenience store integratedg
into the life of
local communities.

Safety Stations participating stores' conferenceーAward-winning store at the Fukuoka Prefecture conference

Working with schools
Ministop's Child Internship Program, initiated in 2005, offers educational work experiences
es forfo relementary and junior high school students. Our hope is that this program helps participants learn
rn theeimportance of greeting others, and that they will gain an appreciation for all those working in
n their
thei rcommunity.

A woman in her twenties came into the store and asked us to call the police
because she was being followed by a stalker. I felt a bit nervous calling the
emergency number for the first time, but I called right away. She was able towait in our Eat-in corner, and the police soon came and she was in good
hands. I think she was able to avoid a bad situation by being able to stay inthe store, in sight of other people.

Total
participants

Number of students participating in the Child Internship Program

FY2005

FY2006

FY2007

FY2008FY2009
09

365

300

375

454

908

2,402

Yuka Kuroiwa, Store Manager
Ministop Kurume Mii Store (Kurume City, Fukuoka Prefecture)

Safety Station poster displayedon store entrance doors

students

We h a v e b e e n v e r y f o r t u n a t e t o h a v e t h e c o o p e r a t i o n o f t h e M i n i s t o p
Kita-Kogane Store through such activities as the work experience it offers
local children and the "Exciting Expedition Team" program, through which
students explore and learn about the local community. The children get tolearn about both the fun and the challenges of work, which helps them as
they think about their future.
Working side-by-side with store staff
has been really good for the children.
We see how they greet others more
warmly and are more accommodating
to their younger schoolmates.

Mr. Hajime Miyamoto, Mr. Kohei Sueyoshi
Kogane Elementary School(Matsudo City, Chiba Prefecture)

Cooperation with local governments
We have signed cooperative agreements with various local
governments (19 prefectures and8 cities) to support people who
may encounter difficulties returning home during times of disaster.1
In 2009, we signed a comprehensive agreement with Chiba
Prefecture to contribute to regional development and support,
including assisting people returning home during disasters. Thisagreement covers eleven areas under which Ministop commits topromote broad-ranging activities for the community, including
promoting localized production of goods for local consumption as
well as cooperation for responding to disasters in the area. We willcontinue to expand the geographical coverage and diversity of ouractivities in cooperation with local communities.
1. These include the prefectures of Aichi, Chiba, Fukui, Fukuoka, Gifu, Hyogo, Kagawa, Kanagawa,
Kyoto, Mie, Nara, Oita, Osaka, Saga, Saitama, Shiga, Tokushima, Tokyo and Wakayama, and thecities of Chiba, Kawasaki, Kobe, Kyoto, Osaka, Sakai, Saitama and Yokohama.

Meeting with the Governor Kensaku Morita of Chiba Prefecture"Specialties of Chiba" Lunch Box

Fundraising activities
Beginning with the Circle of Flowers program, through which flower and tree seedlings have been donated to elementary schools
since 1990, we conduct fundraising campaigns every year involving our customers, including for disaster relief and support fordeveloping nations.
Because we want our store to be an integral part of the local community, we havebeen actively participating in the program to provide elementary and junior highschool students with the experience of working at our store. We help the students
prepare by working with them to draw up a work schedule, explaining what theirduties will be and what it will be like to work at the store, all of which helps them gaina clear idea of what the work experience will involve.
There are also a lot of ways in which the store benefits byhosting the interns. In particular, because the children
need to be shown how to greet customers with energy
and welcoming smiles, the employees become motivatedto be good role models, and the store becomes very lively.
We plan to keep hosting the Child Interns and to further
deepen our ties with the community.
Yoshiharu Ohashi, Store Manager
Ministop Kita-Kogane Store (Matsudo City, Chiba Prefecture)

FY2009 Overview of in-store fundraising
Beneficiary(yen)Amounts donatedat stores

PeriodOrganizations receiving donations"Chocolate for Happiness" Campaign

3/1〜3/31

Action against Child Exploitation (ACE)

45,388Laos School Building Campaign

4/21〜6/21

Japan Committee for UNICEF

7,127,234

7/3〜9/6

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

12,136,355

Philippine Typhoon Ketsana Relief Fund

9/29〜10/13

Embassy of the Republic of the Philippines in Japan

3,766,519

Sumatra Earthquake Relief Fund

10/14〜10/20

Embassy of the Republic of Indonesia in Japan

741,078

Haiti Earthquake Relief Fund

2010/1/15〜1/31

Japan Platform

4,356,363

Circle of Flowers program

Periods other than listed above

The Foundation for Flowering and Greening

21,144,305

224-Hour charity television program "Love Saves the Earth"3

Total amount donated by customers
AEON group joint fundraising

Flower seedlings presented to children

49,317,242

Fundraising by Ministop

Recycled plastic
donation boxes
that can be reused
many times

2. The "Chocolate for Happiness" fundraising campaign was carried out at nine stores.
3. Total of in-store donations (11,052,670 yen) plus 1% of sales of soft ice cream every Saturday (10,091,635 yen).

15

16

Social Report
How we listen to our customers

地域との共生with Our Customers
Communication
We place great emphasis on communicating with our customers in stores, so each customer can fully experience the convenience anddelicious products at Ministop.

Relations with customers (Call Center)In fiscal 2009, the Call Center and individual departments received a total of 17,490 comments (a 0.5% increase over the previous year)
from customers. Of the total, 69.3% were received by telephone, 22.9% by the company website, and the remainder by letter and postcard.
Ministop formulated a Customer Response Policy in March 2008, and will use this policy as a platform for the further use of customer
comments to improve our business with our franchise stores and business partners. Environment-related comments increased by 4.8%
from the previous year, and acc
accounted for 1.9% of total.

p
About personnel（0.5％）

Other（1.9％）

Opinions about packaging materials
and plastic shopping bags
11（3.3％）Complaints about garbage
storage and management11（3.3％）Complaints
about garbage in vicinity of stores18（5.5％）

Customer approach
We think it is important for each store staff to serve customers with cordial hospitality at convenience stores with strong ties to the local
community, where customers feel free to drop by at any time.
Communication with customers, starting with heartfelt greetings and assistance while shopping, is the very essence of the retail business.
We actively seek customer opinions and feedback, and reflect these in making better stores.

FY2009About stores（33.1％）

Comments received
by call center
Gene
Generalquestiquestions（46.0（46.0％）Store communication example

Aiming to become a community baseWe have made various efforts, right from the store opening,with the goal of becoming a store that is loved by the local
community. Since our store is located in the center of anindustrial zone, we participate in the industrial zone
association to form closer ties with people from the factoriesn e a r b y, a n d o t h e r w i s e w o r k a t l o c a l c o m m u n i c a t i o n b ypositively stepping out into the community. We receive orders
for box lunches to cater industrial zone events held twice eachyear. We also cater local elementary and middle school
baseball tournaments.
We put up a community bulletin board on the wall next to ourEat-in corner, which locals use to publicize their events.
We also actively participate in the Yellowtail Program (seepage 19) to improve the communications skills of store staff.
Staff are on the front line of our operations, so staff training isessential to create a good atmosphere in stores. We will keep
striving to ensure our staff greet and welcome customers into
our stores, put smiles on customers' faces, and create an
enjoyable shopping experience.

17,490comments

FY2009Comments received
by call center,by category

Odors in store
21（6.4％）Other
28（8.5％）Inquiries about allergens
88（26.7％）

Comments
regarding
FY2009CSR activities

Complaints about noisefrom customers talking
at storefront and in parking lots30（9.1％）

About
products（18.4％）

Opinions about smoking stands in front of stores31（9.4％）
Note: Breakdown of "other"Opinions about fair trade 7
Requests for materials for environment-related research 5
Noise when deliveries are made (engine noise, doors opening and closing, flattening cardboard) 3
Parking location (cars blocking traffic, etc.) 3
Questions and opinions about recycling 3

Masahiko Aizawa, Store Manager (right in photo)
Ministop Shiroi Kawarago Store (Shiroi City, Chiba Prefecture)

Comments from our customers"The pasta salad labeling does not indicate the dressing
flavor.""The label states that the pasta salad contains dressing, but
the type of dressing is not clear from the outside labeling. I
only discovered that the pasta salad has pickled plum andbonito dressing after I opened the package. I am allergic topickled plum, so I had to throw it away. The label said it'contains dressing' so I bought the salad thinking it was anormal dressing, such as Japanese-style or Italian.
Common sense dictates that the label has to be improved.
Thank you for your kind consideration."(E-mail received June 7, 2009 from a customer living inTokyo)

Complaints about
disorderliness (loitering)49（14.8％）

Customer vehicle noise (engine noise, music, etc.)
43（13.0％）
Opinions about environmental initiatives 2
Opinions about disposable chopsticks, reusable chopsticks 2Problems with people bringing household garbage to store garbage receptacles 1
Bicycles left in vicinity of stores 1
Noise from outdoor units and other store equipment 1

Product Manager Reply
Thank you very much for your valuable comments. We will
make the improvements by attaching stickers indicating the
dressing flavor, and we will use easy-to-understand labelingin future product development.

Customer Reply
Thank you for your quick response. I will decline your offer
of a refund. Thank you for resolving the problem.
(E-mail received June 8, 2009)

Friendliness checks (Mystery Surveys)
Masato Miyamura, Assistant Manager, Kashiwa/Matsudo Area, Chiba Business Dept., Store Operations Div.
The theme at Store Operations Division this year is to maintain ongoing dialog with our franchise stores andcustomers. At Ministop, we deliver value to customers through our franchises. For that reason, we think it isimportant to maintain dialog between our Store Advisors and the franchisesーwhich are in direct contact withcustomers―to know our customers more deeply. We seek to use that knowledge to propose and realize Quality
Service and Cleanliness (QSC) as well as a product assortment that matches the demand at each locale.
Certain items such as pre-ordered products, WAON (AEON Group's e-money), mobile coupons (available formobile website members to receive a discount on a purchase) and Self Coffee foster communication andinteractions with customers, and we are strengthening these products as a sales district.
Ministop will continue working together with our franchise stores from a sales viewpoint in both selling products and services and in
valuing communication with our customers.

Note: QSC stands for Quality, Service and Cleanliness. These are the most fundamental and important principles to be observed by parties engaged in the food and beverages business.

17

Since 1997, we have conducted "friendliness checks" as a tool for improving each store's level of customer service and cleanliness to ensure that
customers enjoy a pleasant shopping experience. The surveys are conducted by independent investigators posing as ordinary customers.

Reader Survey on the 2009 Ministop CSR Report
We received 34 comments with ideas and thoughts about the 2009 Ministop CSR Report, issued in June 2009, and would like to thank everyone
who provided valuable feedback. We review every opinion and comment received, and put them into action to make improvements.

Comments about
abo the 2009 Ministop CSR Report
The article about the mango parfait was very detailed.
ed. Itgood, and the article about fair trade was also
was very goo
excellent. Not many people know about fair trade, soo youmore of an appeal in your stores. (Woman
might want to makemomanfrom Saga Prefecture)Pref

I read about
abo your initiatives to prevent global warming withinterest. You must be doing far more than the othergreat interes
While it may seem harsh from a cost-benefit
companies. W
please look beyond the immediate implications toperspective, pview. Your customers certainly appreciatecherish the long-termlonthose types of efforts. (Man from Ehime Prefecture)18

Social Report
Ministop and our employees

Ministop and Our Franchise Stores &Employees

Creating a dynamic workplace

Ministop consists of our corporate headquarters and member stores that have entered into a franchise contract. The headquarters andfranchise store owners work together to provide service to customers, with consideration given to the special characteristics of each store andlocal community.
We aim to build personal relationships in which all people related to Ministop respect one another and work with ambition.

Ministop and our franchise stores
Headquarters and franchise store relationship
Ministop operates on a franchise system in which the headquarters
provides franchise stores with product supply systems, and othersupport, and the franchise store pays royalties to the headquarters.
Ministop values its franchise partnerships in which both theheadquarters and franchise stores enjoy growth and prosperity.

Ministop CS ForumIn February 2010, we began holding the "Ministop CS Forum" togive franchise store owners and executives from the company
headquarters an opportunity to engage in dialogue. By sharing theirideas on Ministop's goals, as well as well as franchise stores, Store
Advisors and the staff that support the front line, they will build an
increasingly strong partnership.

Ministop franchise system
Trademarks,systems, know-how

Equal business partners
Franchisor(FC headquarters)

Brand Project
At Ministop, from 2007 we carried out a two-year Business
Process Transformation Team to resolve issues throughout theorganization, in order to find solutions to new problems
emerging in the ever-changing convenience store industry.
In connection with Ministop's thirtieth anniversary we launched
the Brand Project. The objective of the project is to create asustainable company by thinking about Ministop's future inorder to develop a sense of unity among employees and createa vibrant workplace, as well as enable employees to feel proudand confident about the company and their work.
Project implementation
We started by taking a thorough look at the essence of Ministop
by surveying employees and holding 15 staff meetings.
Repeated surveys and many meetings led us to the conclusionthat it is important for Ministop to reaffirm its corporate value
a n d c r e a t e a c o r p o r a t e c u l t u r e t h a t w i l l b e t h e c o m p a n y 's
foundation.
Our first action, on the occasion of our thirtieth anniversary, wasto determine the mission that Ministop and our franchise stores
would work together to achieve.

Franchisee(franchise store)
Growth through cooperation

Akira Iikubo, Assistant Manager
Branding Development Section
The Brand Project started as an
evolved version of the Business
Process Transformation Team toresolve issues throughout theorganization. We began withdiscussions about what we should
do going forward, focusing on how
we can create a sense of unity and energy among
employees. With an eye on Ministop's thirtieth anniversary,
we created opportunities for employees to gather anddiscuss Ministop's "core" in this project that started in 2009.
The debate returned to "square one" many times, and I
think about it now each day was really a challenge. The
many discussions led to the decision to redefine Ministop's
corporate philosophy in order to put all employees on thesame page, allowing us to arrive at a strategy for building a
corporate culture as a base. While placing importance on
the concepts of "talking," "thinking through things," and"order" cultivated in the Brand Project, we will shift to an
implementation phase which I hope will create a good
corporate culture. Also, as stipulated in our new corporate
mission, we will aim to bring smiles to the lives andlifestyles of all people related to Ministop.

Joining fee, royalties
Product development,etc.

Investment of capital
Staff recruitment

Communications, input, and requests received from the franchise owners via the Store Advisors andOwner Consultation Department are conveyed by the store supervisor to the company president.

Fair and balanced contracts
Franchise Contract Officer Certification Program
Ministop has established its own FC Contract Officer Certification
Program, and only those individuals who have passed the certification
test are allowed to explain the franchise contract to candidates hoping
to become franchise owners. Certification is valid for one year,
meaning that Store Development Supervisors are required to passannual FC Contract Officer certification tests as they strive to maintainand raise their skill level.
FC Contract Certification Officers
FC Contract Certification Officers

FY2007

FY2008FY200982

85

85

FC Staff Education ProgramーThe Yellowtail Program
Ministop believes that motivated store employees directly translate
into better customer satisfaction, so we introduced the unique
Yellowtail Program in 2005 to educate employees and promoteconsistency throughout the workforce. 3 The educational program
has become more widely utilized over the subsequent years.
In fiscal 2009 we worked to train SL (Store Leaders: Deputy store
managers). A total of 730 SLs are working at stores.
Going forward, we will focus on training A Staff (independent staff),aiming to ensure that all staff are able to communicate well withcustomers.

Number of franchise contracts1
Contract conditions

FY2006

FY2007

FY2008

Franchise store openings(including relocated existing stores)

200

212

210

Franchise storesclosing during contract period2(including stores closed before relocation)

79

82

90

Franchise stores renewing contracts

84

Franchise stores
not renewing contracts

Total ofOwner, Store Managerr
Store Leader(Deputy store manager))
110

28,00095

S Staff(In charge during predetermined timeslots)
73

91

79

Litigation cases1

19

FY2009Number oftraining classattendees

Description

FY2006

FY2007

FY2008Initiated by franchise store
or franchisee

0

0

0

Initiated by Ministop

0

0

1

1. Fiscal 2009 data will be presented in the Franchise Contract Overview and Key Points scheduled for
publication in July 2010.
2. The contract period is seven years.

A Staff(Independent staff)

Communication with employees
In 2008, we launched the ABC (Abe Club)
with the aim of establishing a direct line ofcommunication between employees and top
management.
With the ABC, the company president visitscompany offices and franchise stores tocommunicate directly with employees about
the issues facing Ministop and lead to
improvements.
The company president has made 52 visits
thus far, and spoken with 526 people. In
fiscal 2010, the company president will once
again communicate with all employees.

B Staff(New staff)
C Staff(Staff in training)
3. Because the program provides career-advancement opportunities for employees, it is named after
the yellowtail fish, which in Japan is associated with gradual improvement.

20

pinionThird Party O

Independent opinionーTowards
opinion Tow
a better Ministop

Committee on Diversity in the Workplace activities
A "Women's Work Style Study Group," which focused on promoting
the activities of women, was established as part of a two-year-longeffort of the Business Process Transformation Team initiated in2007. The volunteer members of this group conducted surveys andheld seminars exploring how women can best continue working in
the key role of Store Advisors after they give birth to a child. The
group also developed "Lifestyle NAVI," a guide to making use ofprocedures and support services related to marriage, maternity
and childcare. In recognition of these activities, and the equal
employment systems and policies Ministop has been implementing,in October 2009 we received the Excellence Award from the
Director General of the Chiba Prefectural Labour Bureau in the
Corporation Awards for the Promotion of Gender Equality. The
award is based on the Commendations for Enterprises Promoting
Equal Employment/Work and Family Harmonization under the
Ministry of Health, Labor and Welfare.
In order to sustain the attention given to the issue of women's
employment even after the disbanding of this study group, weestablished the "Committee on Diversity in the Workplace," which
includes the participation of personnel representatives and union
representatives. Although the current focus is on women, we aim
to become an organization with a new value system that allows
staff having a variety of differences, not only in terms of gender, towork together and complement one another's strengths.

Genki Sudo
Writer andretired Japanese mixed martial artist

Chizuko Nakai
Branding Development Section
The staff of Ministop includes
many Store Advisors (SAs),
whose job is to support ourstores that are open 24 hours aday, every day of the year. One
big issue for our company is how
these SAs can continue theirwork even when they confront the time constraints that goalong with major life events such as pregnancy andchildbirth. Our diversity efforts also need to addressconcerns beyond those of women and of employees
taking care of children or other family membersーand ourchallenges will not be met simply by setting up new
systems and rules. While it can sometimes be stressful tocommunicate with one another and to understand all ofour differences, I hope we will learn to accept that every
individual is different, and create a vibrant company
w h e r e w e a l l u n d e r s t a n d a n d r e s p e c t e a c h o t h e r 's
uniqueness and strengths, bringing out the best in one
another.

Rate of employment of disabled persons

FY20061.91

FY20071.99

FY20081.97

FY2009

2.52

0.0

0.50

1.00

1.50

2.00

2.50

Starting out as a wrestler in high school,
Mr. Sudo progressed in the martial arts
while studying art at the University of
Santa Monica. After returning to Japan,
he gained fame as a leading fighter,leaving the ring at the end of 2006.
Since his sparring days, he has also
been active in a variety of fields,
including as an actor, calligraphist andauthor of numerous books including"Let's Cat." Active also in promoting
environmental awareness and charitable
activities, Sudo continues to promote themessage that "We are All One."

When I heard that Ministop was turning 30, I felt like it was
happening to an old friend. I was born right around the sametime as Ministop, and my generation grew up with Ministop
and other convenience stores. You could say my generation's
lifestyle is totally linked with convenience stores.
When I was a student, I would stop by one convenience store
or another at least once a day, to buy a manga comic book or
to grab a bite to eat or late night snack. Even now, when I'mworking or out on the town late, it's good to know thatconvenience stores are still open if I need anything, and so I
find myself stopping in. I'll flip through the magazines and buy
something to drink or a midnight snack. It's a way I can treat
myself.
There are a lot of convenience stores around town, but I have
my preferences, and when I feel like eating fast food, I
naturally choose Ministop. And when I see that familiar
Ministop sign, my appetite kicks in.
I got a chance to read this year's Ministop CSR report, andlearned for the first time just how much attention Ministop
g i v e s t o t h i n g s l i k e f o o d s a f e t y, c o o p e r a t i n g w i t h l o c a lcommunities and producers, and other social concerns. I haveto admit I was actually a little surprised.
Those of us in the first generation to grow up withconvenience stores might associate them with junk food or the
odd assortment of things they might sell, and we did not knowthat they could offer food items with such attention to foodsafety, or products with so much "added-value." We justknew we liked the taste of Ministop's fast food and box
lunches. So, it was exciting and eye-opening to learn thatbehind that good taste there are also high aspirations of the
management and staff.
We may have grown up with convenience stores around us,
but on the inside we're disappointed if we encounterproducts or services made with low aspirations. Even forsome little snack food, if someone makes sure that thematerials that go into it are first-rate, that's naturally the one
we will reach for. So when we learn that Ministop cares
about the safety of materials it uses, that it recycles foodwaste, and that it is working so hard to help local
communities and promote fair business practices, there isjust no question: Ministop is the one for us. But while all
those efforts are great to see, it is also kind of a shame thatthe story has not reached a lot of people like me. Maybe you
could give more thought to strategies to publicize what
you're doing, and communicate them to the public.
It's hard to give much further advice to Ministop when it
already has such high aspirations in developing its business,but if I were to offer one little thing, I'd suggest that more
traditional and natural packaging materials like as paper andwood be used to wrap boxed lunches and other items. Some
items might require plastic packaging, but products likeboxed lunches that you pick up and hold for a while canreally feel much nicer if they are made using natural materials that are pleasing to the eye and to the soul. This mightmean some challenges in terms of product management anddistribution systems, but this approach could have an important impact, since it would encourage those of us raised onconvenience stores to have more respect for the food weeat. Because convenience stores are so central to ourmodern lives, I'm sure that it would really have a major
impact on society if Ministop could take up this kind ofchallenge, and I'm sure it would further enhance Ministop's
brand image.
I have high hopes for what Ministop and its positive business
attitude can achieve.

3.00
（%）

Work system to support childcare
To support employees to balance work with raising children, we
have established both a childcare leave system and a childcare
support work program that allows for shorter working hours. We
also have programs that provide monetary gifts in recognition of thebirth of a child and the conclusion of childcare leave, and since
fiscal 2009 have also expanded the system to cover children up
through their entry into third grade.

Number of staff joining the work system to support childcare
FY2006

FY2007

FY2008FY200914

4

4

Physical examinations
All employees receive physical examinations appropriate for theirage group, in addition to stool testing. In order to increase thepercentage of those receiving physical examinations, employees
can use paid medical leave for this purpose.

Advancement system
Between September and December each year, employees in
middle management take part in testing for potential careeradvancement.

21

Percentage of staff receiving physical examinations
FY2006

FY2007

FY2008FY2009

Basic

96%

87%

99%

100%

Extensive

91%

90%

97%

100%

Comprehensive

89%

83%

98%

100%

Each number indicates those receiving physical examinations between April and the following March.

22

Please Send UsYour Opinions andFeedback

About Ministop CSR Report 2010
■1. Which parts of the Ministop CSR Report 2010 interested you the most?

POSTCARD
料金受取人払郵便
神田支店
承認

Environmental & Social
Contribution Section
Communication
Promotion Dept.

Which aspects would you like Ministop to work on in the future?

7471

MINISTOP CO., LTD.

■2. Which points in the Ministop CSR Report 2010 would you like to know

■ 3. Please share any other opinions or comments you would like tocommunicate to us.

Thank you.

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
2010. We would like toknow what you think of ouractivities and operations.
Please use the postcard
below to send us youropinions and comments.
Your input will be used tohelp determine our future
activities and how we cancontinue to improve.

MINISTOP CO., LTD.
Kandabashi Yasuda Building, 3rd Floor
1-1 Kanda-Nishikicho, Chiyoda-ku,
Tokyo

Cut here

Cut heremore about?

Environmental & Social
Contribution Section
Communication Promotion Dept.

差出有効期限平成23年6月
30日まで

Personal information you
provide will be used only
as a reference for the
preparation of the nextr e p o r t . W h e nsubcontracting mailing
tasks to outsidecontractors, Ministop
supervises them properly
and takes steps toprevent unauthorizedaccess and any leak orabuse of personal
information. Except whererequired by legislation, we
do not provide personal
information to any third
party.

Name
Gender（ M・F ）Age range（
Address 〒（

ー

）

）

Telephone number

（

）

ー

From what perspective did you read the report? (Check up to 2 boxes.)□ Customer □ Business partner □ NGO/NPO□ Environment/CSR officer for company/organization □ Shareholder□ Research/educational institution □ Student □ Governmental body）
□ Involved with a Ministop store □ Other（
Would you like to receive next year's CSR Report?
(Scheduled for release in August 2011)

□ Yes

□ No