In order to use limited resources effectively, we will work to reduce plastic used in our products and services from the perspective of the 4Rs^※1.

1. Reduce (reduction in the amount of plastic used for our containers), Reuse (reuse of containers), Recycle (recycling of container recovery), Renew (switch to recycled or plant-based materials)

• The scope of "4R compatibility in container packaging materials in which plastic is used" includes the cosmetics and health food products of FANCL Corporation and ATTENIR CORPORATION.

We are contributing to the realization of a decarbonized, recycling-oriented society by working with customers to reduce the amount of plastic used in containers and packaging. We have actively promoted a "Reduce and Reuse" initiative which has achieved a reduction in plastic use.
We work to reduce the environmental impact of products by incorporating a renewable perspective when using plastic materials for sealed containers, which are needed to maintain product quality.
Our recycling efforts include the recovery and recycling of FANCL cosmetic product containers and the creation of appealing upcycled products. In the future, we will collaborate within the Kirin Group, and work together toward the realization of closed-loop recycling, in which collected cosmetic containers are processed into new cosmetic containers using chemical recycling technology.

We are reducing our plastic use by reducing the weight of containers and changing the container material from plastic to paper.

We are reducing plastic use by using a more lightweight design for containers for various products, including Mild Cleansing Oil and foundation cosmetics.

• The percentage of plastic reduction is compared to the container prior to the renewal.

FANCL has started to use aluminum pouch bags to hold its health food products. As we strive to sell healthy foods at reasonable prices, we have adopted aluminum pouch bags in place of plastic bottles to reduce manufacturing costs. In 2013, we succeeded in reducing the thickness and weight of these aluminum pouch bags by 11% and 5%, respectively.
We are also currently working to reduce the standard size of the packaging itself.
In addition, we are switching from using gusseted bag packaging (plastic outer bags with gussets) to instead using decorative.

Since the fiscal year ended March 2024, we have been switching the packaging for makeup accessory products (19 products) and dedicated packaging for skincare products sold wholesale at drugstores and convenience stores (six products) from conventional plastic packaging to environmentally friendly forest-certified paper packaging. For our health food products, we have also switched from using gusset bags (folded exterior bags made from plastic) to external boxes made of forest-certified paper.

We sell environmentally friendly refills while maintaining product quality.

Refillable packaging uses considerably less plastic than conventional bottle-type packaging. It also contributes to reducing plastic waste.
In addition to face washes, we have also developed refillable packaging for other cosmetics products, such as foundation cosmetics and special care items, that still maintains Mutenka quality.
For our toiro essence products which were launched in April 2024, we developed proprietary refill pouches that maintain Mutenka quality by enabling refills to be poured quickly through a small opening, preventing it coming into contact with air as much as possible. We will continue working to expand our range of refillable packaging.

Attenir has been working to commercialize eco packs since 1995, spurred on by customers who have spoken up about the wastefulness of throwing away containers after a single use.
Eco pack containers for its mainstay product, Skin Clear Cleanse Oil, use about 85% less plastic, while Attenir Bright Inception uses a refillable container that reduces the amount of plastic by 63%.
In the fiscal year ended March 2024, it also launched refillable containers for the basic skincare products Dress Snow and Dress Lift, realizing a considerable further reduction in plastic use.

The percentage of plastic reduction is compared to the product's main container.

We collect and recycle used cosmetic containers.

The FANCL Recycling Program is an initiative that collects used cosmetic containers from customers at stores nationwide. These containers are sorted, cleaned, dried, and crushed by our special subsidiary FANCL SMILE and then recycled into flower pots by a partner recycling company using material recycling technology. The flower pots are donated to Yokohama City, where FANCL's head office is located, where they are being put to use by local residents, including for the flower and greening event Garden Necklace Yokohama, and for environmental education at the city's elementary schools. This initiative started with six stores in July 2021, but following a series of discussions with local governments in areas where we have directly managed stores, in November 2023 it was expanded to enable containers to be collected by all 159^※ of our directly managed stores. In the fiscal year ended March 2024, we collected 197,979 containers (2,465kg), resulting in a cumulative total for the initiative of 265,338 containers (3,306kg). For the fiscal year ending March 2025, we are developing new upcycled products, such as tote bags and accessories, which will be sold as limited-edition items. We have also set a new target of getting 100,000 customers to participate in the container recycling initiative by the fiscal year ending March 2027 and we will work to expand our efforts in partnership with customers.

• Number of stores is current as of March 31, 2024.

Upcycled items (flowerpots, tote bags, accessories)

We use materials that have a low environmental impact, such as plant-derived and recycled plastics.

FANCL Group and Kirin Group collaborate and result in various ongoing joint development projects. One of these such projects involves the repurposing of recycled resin derived from plastic bottle caps as part of the polyethylene spout mechanism used for our Skin Clear Cleanse Oil Eco Pack containers, and as a first in Japan, we have utilized the same material for our cosmetics containers . As a result of these efforts, Kirin Beverage was able to reuse about 30-40% of its manufactured bottle caps, succeeding in reducing the environmental impact caused through waste. In addition, ATTENIR has been able to reduce the amount of plastic used for its Skin Clear Cleanse Oil packs by about 40% through the repurposing of recycled resin.

PET containers used for FANCL cosmetics (the main container bottles) are now entirely made from chemically recycled PET materials (Excluding some products). We also use recycled and plant-derived plastics for the caps and pumps (PP and PE) of our basic skin care product containers, including for 100% of essence products and 87% of milk products.
Chemically recycled PET plastic is also used for Attenir's Skin Clear Cleanse Oil. These initiatives have achieved a considerable 87% reduction in CO₂ emissions.

We exclusively use plant-derived plastics in containers including facial cleansing powder bottles and for BABY MOISTURE WASH and BABY MOISTURE MILK in our baby care line.
We also use a plant-derived plastic made from sugar cane in the containers for Signs Effector and ATTENIR SALON PREMIUM Scalp & Volume.