Corporate Profile

As of 29 February 2008

Name:
MINISTOP CO., LTD.

Number of Stores

Ministop Co., Ltd.

FY20051,641

FY2006

1,689

FY2007

1,728

Franchise stores in Japan

Convenience store operations promoted
by franchises of Ministop "combo" stores,
which offer convenience store products
and services as well as fast food prepared in-store.

Representative:
Nobuyuki Abe, President and Representative Director

FY2005

123,179（47.3%）

Ordinary Income

Capital:Z7,491,533,000

268,189
11,087（4.1%）

20,717（7.7%）

282,240
Books, services
Household items
21,577（7.6%） 11,275（4.0%）

CSR Report(million yen)

FY20058,019

FY20067,925

FY2007

8,345

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

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

11,338（4.4%）

Fast foods, lunch boxes, etc.
79,152（28.0％）
Dairy products
34,106（12.1%）

Date established:
May 21, 1980

21,185（8.1%）

75,445（28.1％）

Processed foods
136,128（48.2%）

2008

260,193

32,208（12.0%）

FY20071.895(million yen)

73,685（28.3％）

128,729（48.0%）

1.842

167

30,804（11.8%）

FY2006

1,780

153

Revenues by product category (including franchise stores)

Scope of businessNo. of stores
139

FY2005634

FY2006659

FY2007703

Male

Female (No.)

699

65
73

732

89

792

＊ Revenues and income from operations are figures for Ministop Co., Ltd.

Company headquarters
1-1 Kanda-Nishikicho, Chiyoda-ku, Tokyo, 101-0054

Editorial Policy

Main business office
1-5-1 Nakase, Mihama-ku, Chiba City, Chiba 261-8540●Policy
1. Written for the customer
We consider anyone who has any dealings with Ministop to be a “customer” (see page 13).

Offices

2. Readability
Besides writing in an easy-to-read style, we kept the word count down
so that a reader could grasp all the essential facts in one reading.

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)

3. Website links
We prepared this report with a focus on only a selection of all Ministop activities infiscal 2007. Please visit our website for more detailed information.
http://www.ministop.co.jp/eco̲social/index.html
4. Prepared with reference to GRI Guidelines 2006, and Environmental Reporting
Guidelines 2007
We included everything in the report that we felt was important from Ministop's perspective.
●Period covered
Fiscal 2007 for Ministop Co., Ltd. (March 1, 2007 through February 29, 2008)●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.

Philippines:

194 stores

Postscript
We regret that there was no space to cover muchother than store-related activities, because of
space limitations due to the decision to make thisyearﾕs report highly readable, by reducing thenumber of pages (Japanese version), printing
with larger fonts, and just describing the overall
picture. More information is available on our website, however, so we hope that interested readers
will visit us there. Letﾕs all work together for asustainable future. The "C" in CSR can mean
both Citizen and Corporate.

49 stores
Republic of Korea:

993 stores
1,728 stores

01

MINISTOP CO., LTD.

MINISTOP KOREA CO., LTD.

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

Robinsons Convenience Stores, Inc.

MS KYUSYU CO., LTD.

2007
2008

Fair trade: Connecting People to People
03This report can be viewed at the website indicated above.
It can also be downloaded in PDF format.
◎Japanese edition (No.9) issued May 2008 (Next issue expected May 2009).
◎English edition (No.1) issued August 2008 (Next issue expected August 2009).
◎Reviewed by Cre-en Inc. ◎Design by Artemis Inc.

05

09 Ensuring Food Safety
10 Partnering with Customers to Prevent Global Warming

Environmental Report

Chat with the President

Creating a Dynamic, Enjoyable Workplace

Editorial team: Moride, Okamura, Nakai, and Noguchi (left to right)

Contact:
Yoshitaka Moride, Sachiyo Okamura, Hideaki Noguchi, Chizuko Nakai
Environmental Promotion, CA Promotion Dept., Management Planning Div.
Kandabashi Yasuda Building, 3rd Floor
1-1 Kanda-Nishikicho, Chiyoda-ku, Tokyo 101-0054
MINISTOP CO., LTD.
Phone: +81-03-3259-5284 Fax: +81-03-3294-2051

118 stores

Reportage Series

11 Energy Conservation and Management
12

A Word from the President

The 4 R's
Social Reporting

Our Goal: Customer Confidence

13 Ministop and Society

07

Third Party Opinion

15

08

Ministop Store Eco-Map

09

Special Topics

Ministop's Key Initiatives

Corporate Profile
Editorial Policy
Reader Surveys
Communication Tools
Comments Received by the Call Center
Results of Survey
about the Ministop Environmental & Social Report 2007

印刷サービスBy printing on FSC-certified paper
we are contributing to forest conservation.
For more details, please visit the Forest Stewardship Council(www.fsc.org), or Forest Stewardship Alliance (www.forsta.or.jp,
Japanese only).

This report was printed using the computer to plate (CTP) method, eliminating the use of polyethylene acetate film, which also eliminates the need foralkaline developing solution to develop the film. We use vegetable-based inks to reduce the release of air-polluting volatile organic compounds (VOCs).
The “Waterless Printing” technology is a water-based developing method that releases no hazardous liquids. After the developing process, the effluent
is harmless enough to be released into the municipal sewerage system. In contrast, the conventional “pre-sensitized plate” printing method requires therecovery and proper disposal of the leftover and highly alkaline developing solution (pH12 or higher) as regulated industrial liquid waste.

2008 Reader Survey

Cover Message
Ministop's puts a lot of thought into its efforts to protect the environment. As one small example, we sell handcrafted chopsticks made from the Japanese cypress
forests of Nara Prefecture. With these reusable chopsticks we are supporting local forestry, helping to improve the health of forests, taking a small step to fight global
warming, and helping to make people think about the environment.

（Photo location: Yoshino, Nara Prefecture）

Fair trade:1 Connecting People to People
Report of actions taken based on input received

After the 2007 "Chat with the President," Ministop launched a project
to deal with child labor in producer
countries and considered various
possible actions. Many comments
were received. For example: "Adonation box in the store is easy tounderstand, but should we stop
there?" "Can we procure our ingredients through fair trade?" "Whatare the certification criteria of Fair- Japan’s First Fair Trade Chocolate Ice Cream
trade Labeling Organizations International?"2 "What can we dowith product development?" "What about other products besides
soft ice cream?" In the end, Ministop decided to procure fairtrade cacao, and use it in our chocolate-flavored soft ice cream.
By selling fair trade products, we can create opportunities to
educate customers about the issue of child labor. We also believe that by buying from us, customers can contribute in a little
way to solve the problem of child labor.

Yokoo ： This ice cream is wonderful. You can really tellthat there's only one type of cacao used, not the typicalblend. It's very smooth!

Collaboration with ACE and Team Choco Revo

Director, ACE

We are a Japanese NGO dealing with the issue of childlabor, which affects 218 million children worldwide. Our goal
is a society in which children can be happy. Besides working
within Japan to inform corporations and governments about
the problem of child labor, we also act as an international
NGO to provide support for children in India.
Action against Child Exploitation (ACE)(http://acejapan.org/) (Japanese only)

Hiroshi Yokoo

President and Representative Director, Ministop(As of February 2008)

Being able to know the producer not only gives people
confidence in a product's wholesomeness and quality, but also
peace of mind. Fair trade products provide another method toprovide those new values demanded by consumers. I believethat it's important to deal seriously with the various issues
related to food, and also to broaden our forward-looking
efforts-not simply by spreading information, but also throughtwo-way communications with the customers.

Tomoko Hoshino

Founder/Representative, Team Choco Revo
Team Choco Revo is a non-profit organization for people wholove chocolate. Our slogan is “Choose your chocolate,change the world.” Through our website and events, we are asource of information about fair trade chocolate—chocolatethat is good for people and good for the Earth—and we also
conduct marketing and promotions.
Team Choco Revo(http://www.choco-revo.net/) (Japanese only)

social responsibility initiatives with the ingredients used in our
Ministop launched sales of Belgian Premium Soft Ice Cream, madeIwatsuki ： We are very happy that customers are becoming concerned about
the issue of child labor. As
a part of our "One MoreLove" fundraising campaign
Point-of-purchase display created with input
from Team Choco Revo
to tackle the child labor inWest Africa, we were able to place donation boxes in 12
Ministop stores starting on February 9.
Yokoo：Success will depend on how we can communicate
the idea of fair trade, isn't it? I suppose the first thing is toattract people with a gentle message and delicious taste.

February 2008.

Hoshino ：This is the Valentine's Day season, so now is aperfect time to let people know this kind of message.
We would be happy if this effort somehow helps theself-sufficiency of cacao producers.

Here Ministop welcomes Ms. Yuka Iwatsuki of ACE and Ms. Tomoko Hoshino of Team Choco Revo-two organizations that cooperated in this project-and ask them for their comments.

Yokoo ： I would like to see if we can create opportunities
for producers to let us know more about the producer
region.

For more scenes from this discussion, please visit our website.
Belgian Premium Chocolate Soft Ice Cream and Fair trade Cacao

Follow-up to the "Chat with the President"
was the social dimension of cacao, an ingredient formaking chocolate.
Cacao production often becomes entangled with the
problem of child labor, so it was agreed that Ministop
would make further efforts to consider this problem andthen take concrete action.

Meeting of the "Res Choco"3 Project team
1. Fair trade: The concept of trade that connects consumers that desire safe and high-quality products, withproducers that seek to produce products while earning stable livelihoods. This approach results in fair pay,making it possible for producers to produce high-quality products with environmentally-friendly methods, andfacilitates continuous, stable trade.
2. Fairtrade Labeling Organizations International (FLO)：A "fair trade" certification body working globally, withmembers in 17 countries.
3. Res Choco: Short for "Responsible Chocolate."

Social Reporting

Social Reporting01

Hoshino ： On the promotions side, I was able to help withthe design of some of thein-store displays. At Team
Choco Revo, we have received
manyinquiries
through our website regarding this initiative at
Ministop.

Environmental Report

Environmental Reportwith fair trade cacao, in select stores for a limited period inAt the 2007 "Chat with the President," under the topic of"Some concerns about chocolate," participants heard
from the president of Puratos Japan (a chocolate supplier) about safety efforts in the chocolate production process, followed by a detailed explanation of the Ministop
hygiene management system. One topic for discussion

Yokoo：We have already received feedback from customers and are conducting separate promotions in 12 stores. I
think we' ll get a good response.

Iwatsuki ： Yes, that's right. A convenience store may not
be the place for serious messages, but we can still let
people know about the issues and what individuals cando.

products. Taking input from last year's "Chat with the President,"

http://www.ministop.co.jp/eco_social/msg_2007.html (Japanese only)

Hoshino ： Perhaps it's like wine, always interesting todiscover the features of this year's crop.

Special Topics

Special Topics

Black since 2006, we have communicated to customers about our

Yokoo ： We were aiming for a chocolate ice cream for
adult tastes, with a touch of bitter chocolate flavor. But weonly use one type of cacao, from the Dominican Republic,
and the taste can change every year or depending on thatyear's cacao crop.

Third Party Opinion / Ministop Store Eco-Map

Third Party Opinion / Ministop Store Eco-Map

Yuka Iwatsuki

Ms. Iwatsuki and Ms. Hoshino had offered comments during the"Chat with the President," and when we let them know later
about the progress of our discussions, it was decided that they too
would participate in our project. Fromthem we received further input on
how to communicate about fair trade
to customers.
Based on the input from Ms. Hoshino, we created a leaflet and othermaterials for in-store distribution, andworked to develop a product timed forValentine's Day, the most popular day
Donation box for efforts to deal
with child laborof the year in Japan for chocolate.

Hoshino：Yes, that's right. It's very smooth and has a niceluster too. And it's not too sweet.

A Word from the President

A Word from the President

In-Store discussion on the outcomes

Chat with the President

Chat with the President

A project begins

Reportage Series

Reportage Series

Reportage Series

02Creating a Dynamic, Enjoyable Workplace

This discussion was held on March 14, 2008. Please visit the website for more details. http://www.ministop.co.jp/eco_social/msg.html (Japanese only)
1. Store Advisors (SAs) are Ministop employees who develop programs and measures to enhance store operations for the greater satisfaction of both customers and franchise store owners, and by so doing,
to increase company revenues.

Business Process Transformation Team: Background and status

Merchandising Division

Operations Divisionn

Market researchFranchise store satisfaction

Product development
Production quality control

Ministop personnel satisfaction"Motivation" and "Growth""Business Process Transformation Team" Value Map

Harumi Onodera

Store Advisors themselves must rise to a new level if Ministop is toraise the value of franchise stores. I believe that if Store Advisors improve, we will create better relations with franchise stores, and thatwill ultimately lead to higher customer satisfaction.

Kuwasako : Convenience means being open for business 24 hours aday, 365 days a year. The concepts of days off work and overtime
work gets a bit muddled in this context. But if we combine work hours
more tightly, employee would find that they have better lifestyles, andcould recharge themselves in order to be more effective when they'reback at work. To look into these ideas further we started a study
group called "Let's create a day when we all go home at the sametime." The "No overtime" slogan really means what it says—not working overtime. Right now, we are testing this at the corporate headquarters and Tokyo office, and we plan to introduce this system one
day a week at all offices starting the first week of April.
(Note: Starting April 3rd, it was decided to make Thursday every week the day that all office employees leave work on time.)

Yokoo : Contrary to what one might expect, much of our work is done
alone. So one key issue for the future is to share our skills so that we
can work more efficiently and effectively. One idea might be to createa backup system for Store Advisors, with a call center that can takeinquiries on holidays and at night.

An aim of service improvement: higher motivation in the store
Abe : Work itself is a means for people to live their lives, so one of
the missions of this company should be to create the conditions bywhich people can say "I was able to enjoy my life because I worked
at Ministop."
Onodera : I think it would be good if Ministop could be a company
where people can feel a sense of personal achievement, where they
can feel motivated and enjoy their work, and where both men andwomen feel they are challenging themselves.

Dessert & Beverage Development Manager,
Dessert & Beverage Merchandising Dept., Merchandising Div.
(Subleader of Women's Work Style Study Group)
In a company with the majority of employees being male, there is a tendency to see limits on the positions and time periods in which female employees' talents can be put touse. I believe that a workplace that is good for women will also be a good workplace formen. By increasing the number of women working here, based on a healthy balance ofpower, I believe that the result will be a good atmosphere of mutual understanding.

Kuwasako : This is a company of young people, with the average ageof employees being about 36 years old. It would be good to make thisa company where people are encouraged think for themselves atwork—by having a corporate culture that lets people say, "We canchange things for the better."
Abe : The store is the point of contact between Ministop and the customers. Thus, it is necessary for everything to become more appealing—the franchise stores and people working there, and the Store
Advisors, staff and company that are there to support them.
In that sense, the Business Process Transformation Team will ultimately make Ministop more appealing as a whole.
Yokoo : We need to make this business appealing, so that customers
say, "Ministop, that’s a great company." We constantly need new
ideas to differentiate ourselves from competitors. The Business Process Transformation Team is one effort in that direction. Some working
groups are not yet making much progress, but it's important that they
not just give up. They should continue their efforts for a certain periodof time, then review their results, and it’s important that the company
provide a support system for their efforts.

Summary of Discussion
・Expand the activities of Business Process Transformation Team to covermanagement reforms of the entire company
・Identify short-, medium-, and long-term issues, and create the motivation toaddress them.
・Promote mutual understanding between male and female employees.

Logistics
Franchise store

Store Development Division
Construction
Information development
Location planning
Franchise development
Staff Section

Customer

Store Advisors
(SA)

ice
Serv tss ton
Key ovemerpImFranchise store

FC support * FC store training

Social Reporting

Social Reporting

Business Process
Transformation Team

Nobuyuki Abe (As of May 1, 2008, at the time of writing.)
Director of FC Support Div., Managing Director

Environmental Report

Environmental Report

Customer satisfaction

The key thing about service improvement is to see how far we cango to create a situation that makes it easy for employees to offer
their views, and then to take that information, summarize it, circulate it, and share it. This is not something that just should beworked on by a certain group of people in the organization, but by
having everyone in the company involved.

Special Topics

Special Topics

Kuwasako : At this point, we have focused on 20 core themes among themany responses we received from employee surveys. To address one of

The Business Process Transformation Team is the first step toward
improving the workplace environment, with employees themselves
thinking things out and making proposals. The company needs toprovide backup support for the commitment of Store Advisors totackle the various issues that they've been dealing with until now inserving the franchise stores.

Third Party Opinion / Ministop Store Eco-Map

Third Party Opinion / Ministop Store Eco-Map

Achievements, future challenges on two themes: “Women” and “days off”

Manager, Business Process Transformation Team, FC Support Div.

A Word from the President

A Word from the President

Abe : Ours is a business based on franchise stores, and it is our Store Advisors who support them. Franchise stores will not grow dramatically without changes in the Store Advisors' work standards and ways of functioning.
To date, we have tried a number of improvements, but based on frank input from the frontlines, we still recognize the need for reforms in order tochange the Store Advisor activities while also responding to changes in society.
Yokoo : There are limits to what can be accomplished simply by dependingon the top-down management approach. By using a cross-function andcross-department approach to address the issues that staff are actuallydealing with, we've seen the awareness of staff members begin to change.
I sense that our first steps are already showing results.
Kuwasako : There are two things worth noting about the Business Process
Transformation Team. First, we have created a forum where all employees
can participate and state their opinions. Second, we announce the decisions made and the processes used to make them, and we share information with all employees. I hope we are conveying a message that Ministop
is a place where anyone can create change if they have the desire.
Abe : Employee awareness is also rising. We had 11 study group meetings
in the first half of the 2007 fiscal year, and 20 in the second half. Over 60
proposals that arose from those meetings have already been implemented.
We looked at the periods of time required to deal with each issue, and thendecided on short-, medium-, and long-term themes.
Yokoo : Yes, the use of video conferencing and the form of meetings areconcrete examples of changes made for the short-term themes. By introducing new meeting styles, even if the Store Advisors from each region
don't meet physically in one location, they can still obtain the necessary information directly from each other.

these, the Women's Work Style Study Group was launched in September and it soon became a forum for active discussion.
Onodera : The idea behind this study group was "Let's create a goodwork environment for women." A study revealed that female employees were concerned about how they could work after marrying andhaving children, and men were concerned about increases in thenumber of female employees, but I think that a key point for the future will be how to create an environment where both sides can accept a diversity of work styles for women.
Abe : At Ministop today, only about 80 of 800 employees, and only 11
of 240 Store Advisors are female.
Onodera : It is certainly important to increase the number of female
employees, but it is also important to create an environment that allows childcare leave, and to raise employee awareness to make iteasier for people to use these systems. Some male employees don’teven know about the childcare leave system. It's also important for
male employees to understand and cooperate, so I would also like to
see more men participating in this study group.
Abe : Female employment numbers have been increasing since lastyear, so I believe that things will be quite different a few years fromnow. By then, if they can see positive examples of senior female employees in this company, the women will feel more assured that they
have future potential in their work here.
Onodera : Yes, that's right. In terms of medium- and long-term topics,
we need to make an effort to find cases in which, even after having
children and getting married, women are working as Store Advisors
and in positions where women are not currently working.
Yokoo : Women have much diversity in their ways of living, so it isnecessary to be able to respond to that diversity. We need to create aplace where women can realize their full potential at work.
Abe : Another area where we are addressing the theme of employee
work styles is in the study group called "Let's Have More Holidays
and Reduce Overtime."

Shunji Kuwasako,

President and Representative Director, Ministop Co., Ltd.

Chat with the President

Chat with the President"The key to increasing customer satisfaction is to create the environment for franchise stores and Store Advisors to have dynamic and enjoyable workplaces.1 So let's review the business operations of the entire company from the perspective of theworkplace."
This appeal marked the inception of service improvements at Ministop. One year later, we had an exchange of views about
activities and their results, as well as future issues and prospects, with the employees who played leading roles in the reforms.

Hiroshi Yokoo (As of May 1, 2008, at the time of writing.)

Reportage Series

Reportage Series

STAKEHOLDER MEETING

Chat with the President

Systems, equipment, leasing
General Administration Div.
/ Management Planning Div.

03

Study group in session Business Process Transformation (BPT) meeting(any employee can attend)

Franchise store"Business Process Transformation" means operational reforms for the entire company

04

Our Goal: Customer Confidence
Environmental policies: Balance with the big pictureHigh public concern

5. Carry environmentally-friendly products

6. Reduce the use of fuel for company vehicles
7. Reduce the use of electricity
at corporate headquarters

Employee awarenessOur customers
PeopleCommunity

Hiroshi Yokoo
President and Representative Director
MINISTOP CO., LTD.

We will continue promoting global warming countermeasuresand food recycling, with the aim of overall balance.

Further strengthening of systems for food safety
and peace of mind
During 2007 many people in Japan became concerned about
various problems reported in the media relating to food safety
and quality-false place-of-origin labeling, the sale of food past
its expiry date, and concerns about food and ingredients imported from China.
Our response was to make our food inspections stricter thanever. We improved our in-store controls, initiated in-housesystems like the "Food Safety Hotline" to allow personnel toreport concerns anonymously, and strengthened systems at
the management level (see page 9).

It is important to integrate the CSR perspective into day-today operations. At present, Ministop is expanding its Business
Process Transformation Team. Its objective is to re-think thebusiness of Ministop as a whole, by improving the work stylesof our Store Advisors. First, we are starting with tasks that canbe easily realized, and then we plan to gradually ramp up ourefforts to improve and reform the entire organization.
I think it is important for the company to create a supportive
system that enables employees to think about work-life balance in their own lives, and to create a workplace environment where they can feel motivated.
To connect with local communities, we have been conducting the Circle of Flowers program2 continuously for twenty
years. For retailers, communication with the local community
is extremely important.
Now the AEON Group
companies are in the
midst of organizational
reform under a holding
company, and are reviewing and improving
their CSR orientation(as of May 2008). As
the direction becomes
clearer, Ministop will set
its course to include
key issues, and aims to
be a company thatearns the strong trustof society.

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 ・Fairnes
・Enjoying life and work.

1. AEON Private brand based on the concept of SELF+SERVICE.
2. Circle of Flowers program: A program that collects donations from customers and receives financial contributions from soft-serve ice cream sales,
and by makes a gift of flower plants or tree seedlings to schools that have applied, with the selection being by lottery.

Social Reporting

Social Reporting

As one example of our efforts to fight global warming, the introduction of videoconferencing (see page 3) produces multiple
benefits, including the reduction of travelling time for employees,
and the reduction of CO2 emissions. On the other hand, from theperspective of effective resource use, we are re-using food leftovers as compost and animal feed, and are using pork from pigs
raised with this "ecofeed" as an ingredient in minced pork cutlet
lunch boxes. This creates a complete cycle (see page 12).

Peace

Environmental Report

Environmental Report

4. Promote food recycling

and our operations are thus customer-focused to the highest degree.

to the pursuit of peace through prosperity.

Earning the trust of society

As of 29 February 2008

3. Reduce the use of plastic bags
at the sales counter

At AEON, our eternal mission as a corporate group is to benefit our customers,

Special Topics

Special Topics

emissions reduction

has its origin in a Latin root meaning "eternity."
The starting point of our principles is the customer.

Third Party Opinion / Ministop Store Eco-Map

Third Party Opinion / Ministop Store Eco-Map

Biggest impacts on CO2

2. Reduce the use of fuel for delivery vehicles

The word

Peace: AEON is a corporate group whose operations are dedicatedMinistop's Approach to Fight Global Warming
1. Reduce in-store electricity consumption

AEON's Basic Principles

A Word from the President

A Word from the President

In 2007, the issue of climate change started to enter the public consciousness in a big way in Japan and to be reflected in the responses of society as a whole. In order to ensure that these efforts are notjust a passing fad, in the context of climate change, as a retailer we
too at Ministop must think about the global environment, and create
a store environment that facilitates the ongoing efforts of individual
consumers in their daily lives.
The purpose of environmental action is to have the global environment continue in a healthy state, but I get the impression thathuman actions are actually destroying the balance in the environment. For example, there has been a shift of agriculture away fromfood production to agrofuels for the purpose of reducing carbon dioxide emissions, which has changed the world's grain supply, andnow there is also a new problem with the clearing of forests for thispurpose.
Furthermore, economic problems in the United States triggered
events that are affecting the prices of oil and grains worldwide, andwe are seeing the balance that once existed at the international
economic level is being disrupted.
If the balance in the environment and economy is disrupted, it
may become more difficult to procure raw materials and resources
like food, grains, energy, and so on. Thus, more than ever it is important to think about measures to effectively use resources.
Ministop is doing its part to eliminate waste in various ways, suchas through using energy efficiency to fight global warming, and foodproduct recycling to use resources efficiently. At Ministop we havecommitted ourselves to identify and work out measures to fightglobal warming, to establish numerical targets, and to take action.

Chat with the President

Chat with the President

05

Giving "peace of mind," at Ministop means that we provide
customers all the information we have about food ingredientsin order to eliminate doubts or concerns. We have strengthened various systems to that end.
We are also aware of the perspective of "delivering health."
We have been receiving very positive feedback for our efforts
to consider a balance of food education and nutrition, and forcarrying organic food items and fair trade products.
Ministop product lines include fair trade coffee and orange
juice. In February we sold fair trade Belgian chocolate softserve ice cream in select stores for a limited period of time(see page 1).
In the future we will work to build up sales results and to further promote fair trade products.
Also, we started handling SELF+SERVICE1 brand products in
the Kanto district (Tokyo region), based on the idea that we'dlike to deliver convenience, health and peace of mind.

Reportage Series

Reportage Series

PRESIDENT COMMITMENT

A Word from the President06Independent Opinion - Towards a Better Ministop

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A Word from the President

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Details about waste material, distribution and energy can be found on the Company's website. http://www.ministop.co.jp/eco_social/eco_pd.html (Japanese only)

Social Reporting

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Social Reporting

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Environmental Report

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Cooperate with requesting local governments to collect plastic bottles

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in●Special Topics

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Special Topics

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Used toner cartridges for color
copy machines are collected
and reused

Third Party Opinion / Ministop Store Eco-Map

MIN

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Third Party Opinion / Ministop Store Eco-Map

I enjoyed reading the 2008 Report, and its content has made me
look forward to Ministop’s future initiatives. In particular, I found
the relationship with local communities, the food safety and ecofriendly initiatives, and the efforts to provide a good working environment for women to be impressive. Overall, I identified with Ministop's sincere and pro-active stance.
It is terrific that each area continues to offer a Child Internship
Program and "Circle of Flowers program." As a suggestion, howabout going even one step further in developing your efforts in local communities, such as producing your own "local production for
local consumption" brand, or working with local farmers to launch
morning markets? People of all ages come to convenience stores,
so it seems like there are possibilities unique to convenience
stores.
The experiment of making lunch boxes of minced pork cutlets
using the pork from pigs that you feed with "ecofeed" from recycling leftover food products demonstrates a strong commitment tobeing eco-friendly. Similar to the "rice planting tour," I would love
to see you take advantage of this cycle to offer workshops for children and others in the community to visit the pig farm.
I recently had a child, and my life is now focused on child-raising. I firmly believe that it is meaningful for society for women to
apply the things they feel and learn from taking care of a homeand children into their work. Providing a work environment that uti-

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A Word from the President

dio personality.

w is based on the most recent equipment and fixtures available for stores. Some Ministop stores may not have all such measures in place.

Glo

Chat with the President

After working as a TV announcer at Fuji Television, Ohashi
studied in the U.K., where she
became an aromatherapist certified by the International Federation of Aromatherapists (IFA).
Since then, she has worked as
an aromatherapist in hospitals
and also as a writer, translator,
television program host, and ra-

At Ministop, we deliver peace of mind, convenience and safety to customers. We also undertake a variety of initiatives
earth's environment. Please visit your local Ministop and check that the following measures are in place.

g

Maki Ohashi

lizes women's ideas to design schemes will definitely lead to astronger company. I hope you will continue to do this. I would also
like to see more convenience stores near me that are barrier-free
and where I can push my stroller, or where I can choose green
products from gift catalogs, or where I can buy healthy food andfair trade products.
A store's employees are just as important as a store’s products.
People are naturally inclined to visit stores where the staff takepride in their work and do their best. In this respect, I think that thesoft-serve ice cream meister training system is great. I would also
like to see the faces of the people involved in developing and producing the groundbreaking products that show Ministop's sincerity,
such ecofeed pork, fair trade canned coffee and chocolate. How
about placing more of a spotlight on the people who approach workwith a pure heart and pour their energy into their daily activities
with a low-profile, and showing them off in a "cooler" way? All kindsof people visit convenience stores, so doing so would have a significant impact on the public.
The way in which things are communicated to people is also extremely important. I think that there is a lot of room for improvement in this area. The campaign to have people use their own
chopsticks is one example of this. This campaign was carried out
with the plain message of asking people to conserve natural resources and reexamine the "throwaway" lifestyle. But I think you
could have done a better job of expressing the true hope behindthe campaign. This might have involved promoting the idea that using your own chopsticks is a luxury, or creating posters for premium Belgian chocolate soft-serve ice cream which use fair trade cacao. Eco-friendly and fair trade initiatives may not seem soremarkable on an individual basis, but you can get people interested with sophisticated designs.
Many people have begun to feel guilty when they buy things thathave a large impact on the environment. I am hoping that you willcontinue to be the kind of convenience store that, rather than simply promoting consumption, helps people to consume in an ecofriendly manner. I would like to be able to feel good about buying
products and services that are based on a sense of goodness. I
look forward to Ministop's continued unique efforts in this respect.

Ministop Store Eco-Map

inAromatherapist

07

Reportage Series

Reportage Series

Third Party Opinion

08

Reportage Series

Reportage Series

Ministop's Key Initiatives
Partnering with Customers to Prevent Global Warming

Food safety is an important part of Ministop's corporate social responsibility (CSR)* program. We work with our suppliers to provide

With the cooperation of customers, Ministop works to prevent global warming through our efforts to reduce use ofsafe food as well as information using labels.

plastic shopping bags and disposable chopsticks.

Procurement of ingredients

Reducing the number of plastic bags used

■Routine checks of safety controls at licensed manufacturing

At Ministop, many customers purchase microwave-heated prepared meals and side dishes, and a lot offacilities both in Japan and overseas, including China

1.RaisingCIQ inspection ●Voluntary inspection■ After broiling● CIQ inspection ● Voluntary inspection

A sample of the eel to be exported isshipped to Japan and a Japanesepublic agency conducts a customs
clearance inspection●

ask our staff to encourage customers to try to conserve as well.
We have also shifted to using thinner plastic shopping bags and bags of the appropriate size.
Broiling of eel raised in China■A new attempt to reduce plastic shopping bag use
Starting from June 2007, the AEON Tower Store in Chiba city has
Voluntary inspections at the public agency level

Rm 0,

Product Development Manager,
Delicatessen Merchandising
Dept., Merchandising Div.

※All inspections are inspections of designatedresidual chemicals

Rm

1,

We always try to procure safe, tasty, and high-quality
ingredients, regardless of location. We specify the location in which the eels (for broiled eel) are farmed, andemploy a system that allows us to trace the eels, fromthe time they are young to the time they are cooked.

4.Import to Japan
Rm 2,■ Customs

Inspection of designated residual chemicals
by the Ministry of Health, Labour and Welfare● Inspection of designated residual chemicals
by Japanese public agency●

Expiration date control■ In-store self checks
Because we offer in-store prepared fast foods, it is necessary for eachstore to keep track of expiration dates for ingredients after packages are
opened, as well as the sell-by date for food after it has been prepared.
We have established rules for using checklists and control charts todeal with food ingredients, the details of which are discussed below.

●●

Fast food checklist
Check expiration dates of fast-food ingredients (excluding frozen ingredients)
Fast food control chart
Ingredients that have passed expiration date are recorded on the fastfood loss control chart and disposed of.
Fast food sell-by date receipts
Foods that have been defrosted or opened are given expiration dates
which are observed.

■Handling of stores that used expired ingredients

Plastic shopping
bags

231,464

237,215

244,598

Disposable
chopsticks

plastic shopping bags, such as giving customers eco-bags (durable

58,171

56,65055,849bags that can be used over and over) for free.

Thoughts on disposable chopsticks
At Ministop, we use chopsticks to communicate the importance of forest resources. In order to reduce the amount of disposable
chopsticks that we give customers for free with food purchases, we sell Go En No Kizukai (meaning "five yen to care for our trees")chopsticks and portable chopsticks sets, and support the My Chopsticks Club. These activities are part of our overall effort to havemore people adopt a lifestyle in which they either use their own reusable chopsticks or at least use chopsticks made from Japanese
trees cut for forest management, and try not to use disposable chopsticks (made overseas).

■My Chopsticks Set

Food product labels■Go En No Kizukai chopsticks

Our food labels include information about food additives, allergens, and otherrelevant items. In the past,
our labels contained boththe expiration date and the
manufacturing date of a
product, but we now include
only the expiration date. This has made it easier forcustomers and staff to identify the expiration date.

The Go En No Kizukai chopsticks that Ministop has sold since

At Ministop, we sell personal chopsticks sets called My Chop-

June 2006 are made using wood from the thinning of Yoshino

sticks Set at our stores in order to promote the use of reusa-

Note: Details about food product labels can be found on the Company's website.
http://www.ministop.co.jp/eco_social/social_safecom.html (Japanese only)(Nara Prefecture) Japanese cypress tree forests and residual

ble chopsticks. The "My Chopsticks Club" is a network com-wood after cutting trees

prised of people who carry their own chopsticks, want tofor lumber. A portion of

reexamine the throwaway lifestyle and be grateful for thethe five yen goes to-food that they use the chopsticks to eat.

wards promoting forest
development

in

the

Yoshino region. Using
Japanese wood contributes to curbing global
warming because it al-

Keeping stores cleanlows forests to grow in

We commission third-party sanitation checks and inspections of stores, and work to keep stores clean
and improve the level of cleanliness.

a healthy cycle and ulti-●●

Store sanitation checks (twice a year)
We check whether or not a store's level of sanitation
meets voluntary standards.
Voluntary inspection of soft-serve ice cream machines
We check the safety of ice cream machines byinspecting for bacteria six times per year.

mately absorb morecarbon dioxide.

Go En No Kizukai chopsticks

My Chopsticks Set

Ministop is a member of "Team Minus 6%"
The first commitment period under the Kyoto Protocol began in 2008. Japan has an obligation to reduce its annual greenhouse gas emissions by 6% from 1990 levels during

My Chopsticks Club website
http://myhashi-club.net (Japanese only)

Social Reporting

Social Reporting

In 2007, upon seeing news reports about numerous cases in which expired
ingredients had been used in Japan, we conducted a new, detailed
inspection of our stores. The inspection revealed that a store in the Kanto
region had inadequate expiration date control, and as a result theFranchise Agreement was subsequently terminated. Ministop takes thiscase very seriously, and is working to prevent a recurrence and to ensure
food safety. One initiative has been the establishment of a Food Safety
Hotline so that store staff can report any problems or issues that may exist.

FY2007

Environmental Report

Environmental Report●

FY2006

Special Topics

Special Topics

Voluntary inspection includes inspection for six types of microorganisms, inspection for 45 types of antibiotics, pesticide testing, bacterial examinations, food testing, etc.
1. CIQ: The Entry-Exit Inspection and Quarantine Bureau of Republic of China

FY2005

Customers who ask for their items not to be bagged receive a oneAlso, certain stores have made their own efforts to use fewer

Hitoshi Sakuma

Annual consumption per store

been testing a new method for using fewer plastic shopping bags.
yen discount. The effect of this campaign is now being studied.

●

Poster on automatic door

Third Party Opinion / Ministop Store Eco-Map

Third Party Opinion / Ministop Store Eco-Map■ When eel is brought to plant

Inspection of Ministop-approved feed
● Inspection of water quality■ Pre-shipment inspection● Inspection of designated residual
chemicals by CIQ1
● Inspection of designated residual
chemicals by processing plant●■ Pre-import inspection

shopping bags. We put up posters (see right) that urge customers to use fewer plastic shopping bags and2.Broiling■ During raising

3.Pre-inspection

customers stop in to shop while they are out doing other errands. This naturally involves the use of plastic
A Word from the President

A Word from the President

During 2007 there were a number of instances in which the Japanese public's
trust in food safety was compromised. Taking food safety as an issue of utmost
importance, Ministop employees involved in product development, production
control and quality control inspect food ingredients at locations where food isgrown and at plants where food is produced, both in Japan and overseas.
At Ministop, in order to provide grilled eel that is easy to buy, safe anddelicious, we only use eel that has cleared numerous inspections during acontinuous control process that starts with the eel farming and broiling in China,
and ends with the secondary processing in Japan.

Chat with the President

Chat with the President

Ensuring Food Safety

the years 2008 to 2012. To meet this reduction target, in addition to efforts by industry,
individuals will need to reexamine their lifestyles and find ways to reduce emissions intheir daily lives.

09

10

Reportage Series

Reportage Series

Environmental Report

Energy Conservation and Management

The 4 R's

Reduce, Reuse, Recycle, and Reasonable Treatment

Greenhouse gas management

Stores recycling food
Scope of GHG management system
Joint Distribution CenterAll stores recycle cooking oil

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 find the most productive way to recycle food that has reached its expiration date. The result was the start in 2004 of our"ecofeed" project, producing feed 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 is currently in operation in Kanagawa Prefecture, and weplan to gradually establish similar projects in more regions in the future.

Offices

1. Greenhouse Gas is defined in the Law Concerning the Promotion of Measures to Cope with Global Warming (1998)
and applies to carbon dioxide, methane, nitrous oxide, chlorofluorocarbon (CFC) alternatives, and sulfur hexafluoride.
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.

Staff travel between
offices & stores,
store development
research.

Future priority areas for recycling
Aichi: 7 stores(In Nagoya)
Expanded ecofeed
operations plannedin February 2009

For more information about our efforts to reduce carbon dioxide emissions, please visit:
http://www.ministop.co.jp/eco_social/eco_pd.html (Japanese only)

In 1998, we began introducing vehicles that run on compressed natural gas (CNG) andemit less carbon dioxide, and in 2002 introduced the Integrated Transport and Delivery
Control System to reduce energy consumption throughout our delivery operations. The system incorporates radio communications and a global positioning system (GPS), and aims
to lower fuel consumption and reduce engine idling.

ISO 14001 certification

Regulatory compliance

192,086ｋＷｈ

CO2 emissions 4

74.65t-CO2

75.1t-CO2

4. Based on the Ministry of the Environment's published carbon
dioxide emission factor of 0.391.

Carbon dioxide emissions by operation

Stores recyclingfood

FY2005

FY2006

FY2007258 Stores

269 Stores

260 Stores

In FY2007,store closures reduced the number.

Headquarters(building)
0.2％

Headquarters(company vehicles)
1.1％
Delivery vehicles
12.5％

Ministop food recycling
Bulk disposal(Food still in containers)

in FY2007

154,943t
Stores (electricity)
85.9％
Note: 151,042t in FY2006

Meat usedin lunch boxes

Container waste(About 1 kg daily)

Food waste(About 10 kg
daily per store)
Store

Ministop environmental policy (Third revision)

Continuous improvement
We will continuously improve our environmental management
systems, and will set and periodically revise our environmental targets and objectives based on this Environmental Policy.
We will incorporate environmental practices (green procurement, resource conservation, energy conservation, reuse, recycling, waste reduction, etc.) into all our business activities.
Compliance
We will comply with all laws and regulations, as well as any
environmental commitments made by Ministop in response torequests.
Safe and reliable products and services
We will develop and select safe and reliable products andservices, while considering 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.
Policy disclosure
We will make our Environmental Policy available to the public
and properly disclose all related information.

Recycling plant

Delivered to pig farm

We will consider the global environment, together with ourcustomers, franchise stores, and business partners. Aiming tocreate a recycling-oriented society, we will learn together andtake action, with a full recognition of our respective roles.
Pig farm

Pig feed(About 3.5 kg daily)

Cooking Oil Recycling

Fuel pellets(Solid fuel made of waste plastic,
Food waste
burnable garbage,(About 9 kg daily)
and waste paper)

For more information about food recycling, please visit:
http://www.ministop.co.jp/eco_social/eco_pd.html (Japanese only)

Annual emission volume per store
FY2005Since its founding in 1980, Ministop has been recycling 100 percent of its
used cooking oil through specialized contractors. The cooking oil is currently recycled for use in livestock feed, soap, and ink products.

FY2006

FY2007

General waste

19.3t

22.1t

Cooking oil

2.4t

2.1t

Note: Fiscal 2005 data is not available due to a revision in calculation methods.

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 waste material produced, while also enabling unit reuse. During store renovation or closure, furnishings and equipment are collected at the
Ministop Repair Center where they are repaired and reconditioned for use in future stores.

Kitchen equipment/
furnishings
22.35 t (603 items)

Refrigerators/
freezers 8.8 t(53 units)

11％
Unit construction method
Reconditioning a panini toasterat the Ministop Repair Center.

Reusedequipment
andfurnishings

29％

60％

For more information about our store and equipment recycling operations, please visit:
http://www.ministop.co.jp/eco_social/eco_pd.html (Japanese only)

Social Reporting

Social Reporting

In January 2008, an ISO official examiner verified that the company would
successfully pass the ISO 14001 reexamination and the certification would remain valid. Examiners determined the company's environmental management system (EMS) complied with all ISO standards (no instances of nonconformance). The examiners also cited 10 categories to monitor, including
document control, internal communications, and specialized instruction, andwe are earnestly addressing those points. We plan to continue meeting andexceeding the ISO 14001 standards as we work to further reduce our carbon
footprint.

FY2007

190,932ｋＷｈ

Environmental Report

Environmental Report

In fiscal 2007, we completed the removal and dismantling of all kitchen refrigerators, freezers, and oth- Conversion to CFC alternatives (Unit: Tons)
3.276
er equipment that used
Specified CFCs
HCFCs
regulated CFCs (those
HFCs
that contribute to ozone
2.279
layer depletion). The removal and dismantling
0.407
was carried out by gov0.016
0.146
0.009 0.013
ernment-certified special- 0.004
0.003
ists.
2005
2006
2007

FY2006
Electricity usage

Special Topics

Special Topics

Elimination of ozone depleting substances

Amid increasing concern about food safety and security, and with over
60 percent of Japan's food being imported from overseas, this production system fulfills consumer demand for food that is both safe andgood tasting. The system provides full traceability and produces higher
quality products while efficiently recycling food waste. We are applying
our experience and expertise to make this a key component in the recycling loop for providing a stable and reliable supply of food.

Energy consumption per store

Third Party Opinion / Ministop Store Eco-Map

Third Party Opinion / Ministop Store Eco-Map

The largest volume of greenhouse gas emissions is carbon dioxide, and the most effective
way we can lower the carbon dioxide emissions from our operations is by reducing the electric power consumption at our stores. To minimize electricity usage, we select highly energy-efficient equipment following the Top Runners method (using the best-in-class technology) and install inverters and low-voltage control circuits on equipment. Other efforts include
systematically converting to self-adjusting fluorescent lighting control systems in our stores.

Kanto region
Tokyo: 187 stores
Kanagawa: 59 stores
Chiba: 7 stores

Kinki region
Under review

A Word from the President

A Word from the President

Reducing carbon dioxide emissions

For more information about our delivery and transport systems, please visit:
http://www.ministop.co.jp/eco_social/eco_pd.html (Japanese only)

Tohoku region
Under review

Arita Hog Science (Pig Farm)

Masanori Arita

During the past fiscal year, there were no instances of non-compliancewith government regulations, and no environment-related accidents.

11

Stores

Delivery vehicles(As of March 31, 2007)

Food product recycling

Customer

Chat with the President

Chat with the President

Ministop created its Greenhouse Gas (GHG)1 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 covering
Joint Distribution Centers, delivery operations, stores, andoffices as well as staff travel between offices and stores.

In-store furnishings, etc. 46.8 t(2,861 items)

For more information about our environmental management system, please visit:
http://www.ministop.co.jp/eco_social/eco_ems.html (Japanese only)
BeforeAfter

12

Ministop and Society

Shareholders

Franchises

Business
partners

NGOs,
NPOs

Complaint,
opinion,requestCus tom er

As needed
Database input,
analysis

Response

As needed

Call center As needed
Business partner
Store

Inform all stores of the incident via
the franchise newsletter
Report the incident information
throughout the company

Once weekly

Business modification meeting

Customer service or store operation improvement proposal
Revision to franchise owner training content

Store advisor
Further information about our Customer Response Policy is available at the following web site:
http://www.ministop.co.jp/correspondence/index.html (Japanese only)

Friendliness check
In 1997, we initiated unannounced store visits to verify the integrity of our store relations with customers. During the visits, a non-company
researcher posing as an ordinary customer observes and interacts with store staff. The researcher completes a point rating assessment, and thestore advisor reports the results to store. In fiscal 2007, some of the items found were dirty floor tiles in and around stores, bathrooms that
required cleaning, and substandard greetings from staff. In all cases, these checks allowed us to quickly respond and amend the situations.

Child Internship program

Further information about the Child Internship Program is available at the following web site:
http://www.ministop.co.jp/internship_child/index.html (Japanese only)

Franchiser(FC headquarters)

Equal business partners

Franchiser(franchise store)

Cooperative development

Product
development, etc.

Capital investment
Staff recruitment

Joining fee, royalties

Franchise Contract Overview and Key Points※Communications, opinions, and requests received from the franchise owners via the Owner Consultation
Department, Ministop 21 campaign and other sources are conveyed by the store supervisor to thecompany president.

Franchise contract officer certification program
Ministop established the FC Contract Officer Certification Program toensure the prospective franchise owners have a complete understanding of all aspects of the franchise contract content. Independent Contract Officers This system enables us to develop staff with insight towhat the franchise owners want to know and promotes developmentof a highly motivated staff capable of generating ideas for effective
problem-solving. Certification is received after one year of training,
and Store Development Supervisors are required to pass annual FC
Contract Officer qualification tests.

Safety Station initiative

Further information about the Safety station initiative is available
at the following web site:
http://www.ministop.co.jp/eco_social/social_safety.html (Japanese only)

Contract Conditions

FY2004

FY2005

FY2006

Franchise store openings(including relocated existing stores)

1633

189

200

Franchise stores closing mid contract(including stores closed before relocation)

84

67

79

Franchise stores renewing contracts

99

98

84

Franchise stores
not renewing contracts

38

54

73

2

Litigation cases1
Litigation Content

FY2004

FY2005

FY2006

Appeals Raisedby a Franchise or Franchisee

0

0

0

Appeals Raised by the Company

0

0

0

FC Contract Certification Officers
FC Contract Certification Officers

Ministop is an active participant in thecooperative initiative of the Japan Franchise
Association member convenience stores, thepolice and local governments to establish
convenience stores as community safety sites.
The initiative was expanded nationwide in 2005.

Number of franchise contracts1

FY2005

FY2006

FY200791

85

82

1. Fiscal 2007 data will be presented in the Franchise Contract Overview
and Key Points scheduled for publication in July 2008.
2. The contract period is seven years.
3. The figure includes 21 stores added with the consolidation of JR Shikoku MS Networks Co., Ltd.

FC Staff Education Program - The Yellowtail Program

Safety Station posters identify
Ministop stores as community
safety sites.

Report and incident response to the salesof alcohol and tobacco to minors
Ministop maintains a strict policy of asking any customer desiring to purchase alcohol or tobacco and who appears underage to show verification of their age at
the register at the time of purchase. Despite our efforts, two 18-year-old male customers were allowed to purchase alcoholic beverages at a store in Kanagawa
Prefecture in January 2008. Upon gaining knowledge of the incident, we reviewed our policy with all employees to ensure age verification is carried out
whenever uncertainty exists about whether the customer is of an appropriate age.

Ministop believes that a proactive attitude of store employees directly relates
to the level of customer satisfaction, and we instituted the unique Yellowtail
Program in 2004 to educate employees and promote consistency
throughout the workforce.1 The program has developed into a significant
part of our training and education system, and in fiscal 2007 some 650 ofour staff (30 percent of our staff workforce) were authorized Store Leaders.
In fiscal 2008, we plan to introduce a second stage to the Yellowtail
Program.
In addition, we are expanding the scope of our education programs to
respond to changes in Japan's general population. We believe securing andeducating staff will be an important issue in Japan owing to the declining
birthrate and a growing proportion of elderly people, and we are developing
curriculum to attract and train foreign staff, particularly in urban areas.2
1. The program, providing career-advancement opportunities for employees, is named for the fish known as yellowtail, which
in Japan is associated with gradual improvement.
2. We are currently preparing educational tools for Chinese speaking staff.

YP (Yellowtail Program) Pyramid
Owner, Store Manager (person in charge of store operations)Store Leader (deputy store manager)
SS Staff (S staff leader)
S Staff (staff in charge during predetermined timeslots)
A Staff (independent staff)
B Staff (new staff)
C Staff (staff in training)

Keisuke Horigome
YP & Human Resource Development,
FC store training Dept., FC support Div.
The Yellowtail Program presents a fun andenriching way to work that stimulates staff
to improve themselves and plays an impor-

Social Reporting

Social Reporting

The Child Internship Program offers educational work
experience for elementary and junior high school students.
The unique program was established in 2005 with the aim ofproviding young members of society with an opportunity tointeract with the local community and experience being acontributing member to the local community while also
allowing them to experience first-hand the rigors andresponsibility of employment, which contributes to anincreased sense of appreciation toward workers.
A record 375 students participated in the program at 129
stores in fiscal 2007, helping to further strengthen ties
between our stores and their local communities.

trademarks, system, know-how

Environmental Report

Environmental Report

Ministop and Local Communities

The Ministop Franchise System

Business meeting

Product or service improvement proposal

Headquarters

External
information

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 contracts. The contracts fully comply with the Small and Medium-sized Retail Business
Promotion Act, the Enforcement Regulations of the Small and Medium-sized Retail Business Promotion Act, and the Anti-Monopoly Law.

Special Topics

Special Topics

Customer comments and opinions are extremely
valuable to us. To encourage communication, we
created our call center in 1998 and established
the Customer Response Policy in February 2008.
All customer communications received via ourtoll-free number and email are maintained in aninternal database accessible by our headquarters,
stores, and business partners to ensure each
topic receives the proper attention and response.

The contract and conditions

Ministop follows a franchise system in which the headquarters provides the franchise store with products, operating systems, and other support, and the franchise store submits royalty payments to the headquarters. Ministop values its
franchise partnerships as a rewarding combination of thestrengths of the headquarters and the franchise stores.

Before Starting a Franchise Business
Every two months

Listening to our customers

The headquarters and franchise store relationship

Third Party Opinion / Ministop Store Eco-Map

Third Party Opinion / Ministop Store Eco-Map

Ministop and Our Customers

Fair and balanced contracts

A Word from the President

A Word from the President

Customers ・・・・・・・・・・・・Our customers are all individuals and groups that utilize our products
and services.
Local People and Communities・・・We cooperate with local law enforcement and proactively respond intimes of emergency.
Suppliers ・・・・・・・・・・・・ We build partnerships based on fair business practices.
Franchised (FC) store ・・・・・・・We seek partners that share our objectives to "be part of thecommunity and provide customer satisfaction."
Shareholders ・・・・・・・・・・・We seek to return profit to our shareholders and investors by raising
corporate value through fortifying our financial and management,
and social standing.
Employees ・・・・・・・・・・・・Employees are all individuals employed by the headquarters. Each
employee seeks to contribute to Service Improvement (see page 3)
with the goal of creating a "beneficial" company.
NPOs and NGOs・・・・・・・ ・・We fully cooperate with NPOs and NGOs in efforts to realize a sustainable
society (see page 1).

A Ministop store is the result of a franchise contract between our headquarters and the member store. Ministop headquarters provides
study sessions, seminars and other programs to strengthen the mutual partnership and works with the franchise owner to train staff, vitalize store operations and activities, and highlight the characteristics of the store and the local community.
Chat with the President

Chat with the President

Local people
andcommunities

Ministop and Our Franchise Stores

Ministop conducts its daily operations guided by the Management Philosophy of Ministop (see page 6) and the Basic Principles of the Aeon Group.
The company considers itself an active and responsive member of thecommunity and seeks to earn the support of its customers, shareholders,local people and communities, its business partners and franchises, andNPOs and NGOs as well as other stakeholders.
Ministop maintains an open dialogue with its stakeholders carries out its
operations and activities with the aim of continuing to fulfill the trust place in
it by society.

Customers

Employees

13

Reportage Series

Reportage Series

Social Reportingtant role in making our customers happy.

14

Comments Received by Call Center

Results of Survey about the 2007 MINISTOP Sustainability Report
Customer comments received by call centerIn fiscal 2007, the Call Center and individual departments received a total of 14,993 comments(114.7% compared to the previous year) from customers. Of the total, 75.6% were received via
phone calls, 24.1% via 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. Environment-related comments accounted for 1.5% of total, which was 110.9 percentage points higher than in fiscal 2006.
There were encouraging comments about February's trial marketing project of soft-serve ice cream
made using fair trade cacao.

FY2005

11,448（175）

FY2006

13,065（202）FY2007

14,993（224）

Facilities (0.3%)
Personal information (0.1%)

Cleanliness (1.5%)
Other(5.6%)

Inquiries about allergens 34（14.7％）
Other 44（19％）

Products(27.2%)

Operational errors(8.3%)

Opinions/requests(10.4%)

Number of Comments(*1)＊1 The number in parentheses indicates that ofopinions and requests related to the environment,
but does not include requests for copies of the Environmental and Social Report, and includes certain categories other than environment-related.

＊Please refer to page 13 for more detail about the Call Center.
Environment (0.9%)

Fiscal Year

Comments received
by call center
in FY2007
March 1, 2007 –February 29, 2008

Customer service(19.5%)

Questions, etc.
(26.4%)

Opinions and questions
about recycling 7（3.0％）
Opinions about environmental
initiatives 7（3.0％）
Danger related to vehicles entering/exiting parking lot 8（3.4％）
Opinions about packaging materials
and plastic shopping bags 8（3.4％）

FY2007 comments
about environmental
and social activities
March 1, 2007 –February 29, 2008

Complaints about garbage
in vicinity of stores 26（11.2％）

Complaints about order(loitering) 23（9.9％）

Request for materials
for environment-related research 8（3.4％）
Garbage management situation 9（3.9％）
Delivery truck noise(engine, door opening/closing)11（4.7％）
Noise when products are delivered(noise from empty boxes, dollies, etc.)12（5.2％）＊ Breakdown of "other"
Bicycles left in vicinity of stores 6
Opinions about smoking stands in front of stores 6
Opinions about disposable chopsticks 6
Odd smell in store 6

Problems with people bringing household garbage
to store garbage receptacles 6
Opinions about fair trade 4
Parking on the street 3
Noise from fireworks purchased and being lit near store 2

Customer vehicle noise(noise from engine, stereo, etc.) 20（8.6％）
Complaints about customers talking
in front of store or in parking lot 15(6.5％）
Noise from store equipment outside 2
Question/comment about separating garbage 1
Hearing noise from stores (in-store announcements, etc.) 1
Noise when construction work is done on store 1

CASE 1 Comment about smoking stand in front of store and customer service
E-mail received on September 25 (Tuesday) at 16:55
I work very close to a Ministop store so I go there twice each day, once in the morning and once at lunchtime. I would like to see some improvements
made so that going to the store is a more pleasant experience. Despite the fact that the road in front of the store is a no smoking area, there is a smoking stand situated at the store's entrance. Smokers sometimes gather at the store, which makes it rather unpleasant to go in.
Also, when I pay at the cash register, there are times when the store staff chat amongst themselves while working and sometimes the staff willroughly grab my items and scan them. This makes for an unpleasant experience. (From a customer living in Tokyo)

We received 50 comments with ideas and thoughts about the 2007 MINISTOP Sustainability
Report. We would like to thank those people who provided us with valuable feedback.
We will use the ideas and thoughts we received in our environmental and social initiatives,
starting with the preparation of this report, and will do our best to put such ideas into action.
※Due to space considerations, comments have been summarized.
※The position of the person making the comment is written in parenthesis.

Number of requests for sustainability report
Fiscal Year

Number of requests

FY2005783

FY20061,005

FY2007

1,663＊Includes data from ECO HOTLINE, a company
to which we outsource report mailing.

1 Opinions and thoughts about the Environmental and Social Report 2007

2 Opinions and thoughts about Ministopﾕs environmental and social activities［Praise］［Opinions and requests for initiatives for co-existing with customers●I really agree with your stance on fair trade. Also, it would be nice if

and local communities］

the people living nearby recognized Ministop as a safety station (reg-●I look forward to the ways in which you will respond to the aging of

istered refuge for persons needing help) . (Shareholder)society. I hope that you will make it easier for elderly people to shop.

●Overall, the report was very easy to understand, and I enjoyed it. I(Shareholder)

love Ministop soft-serve ice cream, so I thought the section about the●Companies should return profits to society. Please continue to de-process of making the ice cream was especially interesting. (Environ-velop good initiatives. (Customer)

mental officer for company/organization)●There are still only a small number of store workers who ask wheth-●Product labels are easy to understand, which helps me because it

er or not I need plastic shopping bags. (Shareholder)

allows me to shop safely for my son who has allergies. (Customer)●Convenience stores are everywhere, so I want them to have a good
impact on society and the environment, as well as on people. (Cus-［Requests for additional initiatives and other opinions］

tomer)●The "Initiatives Important to Ministop" section made me stop and●I think that the stores' promotion of individual activities is insuffi-

think. Consumers should not expect Ministop to solve environmental

cient. Activities to protect the environment require everyoneﾕs cooper-

problems alone. If we don't do our part we will not achieve good re-ation, so I think you should promote this more. (Shareholder)sults. (Customer)●I use as few plastic shopping bags and disposable chopsticks as●Concerning stores' eco-friendliness on page 6, I was surprised as

possible. I think that both stores and consumers should try to be kind

there were a lot of things I wasn't aware of. I hope you will continue toto the earth. (Customer)

try lots of ways to reduce waste. (Shareholder)●While there are children who live in wealthy countries, have nice●After reading the report I understand Ministop's activities, but Minis-

lives, and are able to become knowledgeable about a variety of

top stores don't promote the fact that they are making such efforts. If

things, I was surprised that there are many child laborers in the world.

you promoted this more, I think that customers would become more

It would be nice if you could help the children in those countries. (Cus-aware of the problems. (Customer)

tomer)●I think that your CSR-related activities were summarized well in theSpecial Topics section. I would like you to give a more detailed explanation about food safety, so that consumers will feel secure andhave more trust in the safety of food. (Customer)

E-mail received from same customers after situation was addressed

□ No
□ Yes
Would you like to receive next year's CSR Report?
(Scheduled for release in May 2009)）□ Involved with a Ministop store □ Other（□ Shareholder □ Research/educational institution □ Student □ Governmental body（

Telephone number□ Customer □ Business partner □ NGO/NPO □ Environmental officer for company/organization

ー
）

）
ー
Address 〒（Name

From what position did you read the report? (You may check up to 2 boxes)

Gender ( M / F )Age Range ( ____ 's)

3rd floor Kandabashi Yasuda Building,
1-1 Kanda-Nishikicho, Chiyoda-ku,
Tokyo 101-8796-517

MINISTOP CO., LTD.

差出有効期限平成21年5月
20日まで

Environmental Promotion,
CA Promotion Dept.
Management Planning Div.

7463

神田支店
承認

料金受取人払郵便

P O S T C A R D

E-mail received on January 28 (Monday) at 21:10
I frequently shop at Ministop. Today I bought the new salt and caramel soft-serve ice cream and the service from the employee working in the store
was great, so I decided to write this e-mail to show my appreciation. I have a nine-month old son who I am still breast-feeding. He is allergic to eggs
and wheat so I completely avoid eating both eggs and wheat, which means I can't eat soft-serve ice cream or cones both of which I love. I had given
up on them, but today I decided to ask the woman working at the cash register if she could put it in another container since my son is allergic and I
can't eat the cone. She said sure and then said that she could take off the things on other desserts that I wasn't able to eat. I love sweets, and had
been refraining from eating them because of my son's allergies, so I am so grateful that I can eat soft-serve ice cream and other desserts at Ministop.
I think I will go to Ministop frequently from now on, thanks so much! The salt and caramel soft ice cream was really delicious!! I will go and get it
again. If other Ministop stores could provide the same kind of service it would really be great for me as a mother of a child with allergies. (From customer living in Tokyo)

falsification, damage, loss or improper accessing of personal information.

CASE 3 Words of encouragement

appropriately and conducts oversight to verify, in order to prevent the leakage,

The store had just recently opened and I wasn't aware (of what was going on outside), but I spoke with the owner and we will try to be a store well-accepted by the community. The owner promised to tell the young people to stop hanging out in the parking lot.

nal vendor. Ministop instructs the vendor to manage all personal information

Report from store advisor

tions to an external vendor, and personal information is provided to this exter-

E-mail received on July 28 (Saturday) at 22:30
I went to the store at a little after 10 pm, and on one side of the parking lot a group of young people were gathered in front of their cars. They weremaking a commotion about something, but the staff didn't ask them to settle down even though they could be seen from within the store. I am glad thata Ministop store opened nearby, but I am worried that it will turn into a hangout spot for young people. (From a customer living in Shizuoka Prefecture)mailing soft-serve ice cream tickets. Ministop outsources report mailing opera-

CASE 2 Comment about customer service

The personal information you provide will be used only for the report and forSoon after I sent my e-mail the smoking stand was removed, much to the delight of both my colleagues and me. Some people still smoke there out of habit but
I think as time goes by they will stop. At any rate, thank you for taking the smoking stand away quickly.

Feedback Manager

Please visit http://www.ministop.co.jp/eco_social/index.html (Japanese only)

Our online Feedback Manager system allows anonymous submissions of opinions and comments about our environmental andsocial activities. We welcome and internally review all comments about any of our activities.

A Sample of Customer Comments Received in FY2007
Fair trade products●In the future, I believe people are going to select products "ingood conscience" based not just on product ingredients but also in
consideration of the environment and human rights. When buyingthat I don't have time to refuse. Because people may not like excessive
packaging, but still find it hard to refuse, I urge you to ensure that staff
first ask customers whether or not they would like a bag.

things for consumption, no one would feel good about purchasing
something knowing the item impacted the environmental or humanrights. The Aeon Group was highly commended when it beganoffering fair trade goods, and I was pleased to hear that Ministop
was also offering fair trade chocolate, canned coffee, and other

Food product recycling●I recently saw on TV that it was difficult finding buyers for animal
feed made from food waste, so I am glad to see that you are actually
recycling the food yourselves. It may be a tough road, but I urge you tocontinue adding stores that implement the system until all your storesare participating.

items. It is very meaningful for a convenience store to be sellingfair trade products. I sincerely hope that this will become thestandard.

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.

Questionnaire

Communication Tools
for All Customers

Reducing usage of plastic bags
●I realize that it might be difficult for a 24-hour convenience store to
charge for plastic bags, but I think you can do more to cut down on theamount of bags used. Staff often put my purchases into the bag so fastCommunication Tools

Call Center

Feedback Manager

Please Send Us Your Opinions and Feedback
Reports to Shareholders(Shareholder Briefs)

Environmental Promotion, CA Promotion Dept., Management Planning Div.

Company Brochures

CSR Report

MINISTOP CO., LTD.

Fewer People

TEL: +81-3-3259-5284 FAX: +81-3-3294-2051 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
and operations. Please use the postcard below to send us your unreserved opinions and comments. Your input
will be used to help determine our future activities and how we can continue to improve.

■1. Which points in the Ministop CSR Report 2008 would you like to know more about?
■2. What opinions and comments do you have about the Ministop CSR Report 2008?
■3. Please share any other opinions or comments you would like to communicate to us.

More People
Communication Tools
for In-Store Customers

Kandabashi Yasuda Building, 3rd Floor 1-1 Kanda-Nishikicho, Chiyoda-ku, Tokyo 101-0054

WebsiteIn-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
Posters

Thank you.

Point-of-Sale
Display Commercials

Communication Tools for All Customers
In appreciation, we will send a coupon
for a free soft-serve ice cream cone to anyone
who submits a postcard,residing in Japan.

About Ministop CSR report 2008.

■1.Which points in the Ministop CSR Report 2008 would you liketo know more about?

■2.What opinions and comments do you have about the Ministop CSR Report 2008?

Thank you.

■3.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 carries interestingbackground information about some of our popular products.
http://www.ministop.co.jp/ (Japanese only)●Company Brochures
Ministop publishes company brochures about its business andfranchise system, particularly for Ministop franchise owners.
●CSR Report
For customers and all stakeholders, CSR reports introduce ourapproaches and the details of our environmental and social activities●Reports to Shareholders (Shareholder Briefs)
These printed reports (also available by Internet) provide details of interest
to our shareholders, including outlines of our business operations, alongwith detailed financial information and management policies.
http://www.ministop.co.jp/company/ir/business_report.html (Japanese only)

Communication Tools for In-Store Customers●In-Store Broadcasts
In-store broadcasts seek the cooperation of customers with Ministop
initiatives, such as requesting drivers to turn off vehicle engines whenparked and to participate in our efforts to reduce plastic bag usage.
●Point-of-Sales Display Commercials
Post-of-sale LCD screens in stores introduce our environmental andsocial activities, such as reducing plastic bag usage.

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