FANCL REPORT 2022
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————■■■■■■■■■■■—■FANCL produces both cosmetics and health food products under a management framework that complies with GMP standards. The Company’s domestic network comprised of six production bases manufactures in pursuit of “Upholding Quality” under a strict standard unique to FANCL and under its stated mission of delivering products that provide customers with safety and reliability.Standards for Production BasesFANCL B&H CORPORATIONFANCL B&H CORPORATIONProduction System StrengtheningHaving adopted the vision of “becoming a company that provides the world’s best gentleness, safety, and assurance,” FANCL B&H CORPORATION supplies safe, reliable, and high-quality products from a factory with a well-equipped, hygienic environment.ManufacturingBases and Major ProductsChiba FactoryShiga FactoryYokohama FactoryGunma FactoryNagano FactoryMishima FactorySupplement counting machineAccurately counts content volume before fillingBusiness ModelCovering the entire roof of the center, the largest solar panel in the Group has been installed and is providing about 35% of the electricity used.The Kanto Logistics Center (Chiba Prefecture) renewed its dedicated shipments system in November 2021 to respond to the increase in orders for Personal One. Its previous shipment capacity has been increased by five times, thereby realizing further improvements in productivity.By building the East-West dual base framework, we have pursued business continuity and at the same time unprecedented levels of safety, reliability, and quality. This has enabled us to quickly deliver fresh products to customers.StandardsFANCL’s Kansai Logistics CenterGMP*1 StandardsFSSC 22000*2FacilityClean RoomRobot for picking productsScheduled for acquisition in FY Mar/202325*1Good Manufacturing Practices (GMP) was drawn up by the U.S. Food and Drug Administration to maintain production management and quality control for such items as cosmetics, pharmaceuticals and foods.*2Internationally recognized Food Safety System Certification (FSSC) 22000FANCL B&H CORPORATIONMishima FactoryIntroductionSince 2021, we have been transitioning from analog to digital data management, and forms previously handled using paper media are being gradually digitized. These moves are contributing to faster analyses and the saving of resources.With regard to our business continuity plan (BCP), we have reconstructed an all-hazard-type BCP mechanism that covers risks such as infectious diseases within its range of risk. In addition to reports from each factory, we have created an environment in which on-the-spot damage status can be confirmed using a central monitoring system and camera images. Should the need arise, we will utilize multiple production bases inside and outside the Company to enable product supply continuity.In addition, at the Mishima Factory (Shizuoka Prefecture), which commenced operation as a core supplement plant in April 2021, we started the contract production of supplements for the Kirin Group in August. We are making full use of this factory while creating synergies through collaboration.ManagementCosmetics, supplementsCosmeticsSupplementsCosmeticsGerminated brown rice, supplementsSupplementsEnhancing Distribution Shipment CapabilitiesThe Kansai Logistics Center (Osaka Prefecture), which commenced full-scale operations in June 2021, has realized manpower efficiencies, labor saving as well as the increased sophistication and streamlining of logistics by making full use of the latest technologies, such as automated warehouses and automated picking systems. We are contributing to the improvement of the FANCL Group’s overall shipment capacity, so that we can deliver products quickly and efficiently while increasing the number of items we handle.SustainabilityData SectionManufacturing and Logistics That Provide Safety and Reliability

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