Signatory Name: Yakult Australia Pty Ltd

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1 Signatory Name: Yakult Australia Pty Ltd The question numbers in this report refer to the numbers in the report template. t all questions are displayed in this report. Status: Complete The content in this APC Annual Report is hereby endorsed by the Chief Executive Officer, or equivalent officer of the organisation Industry sector (please select 1 only): Brand Owner / Wholesaler / Retailer Packaging Manufacturer Waste Management Other - Commercial Organisation Community Group Industry Association Government Raw Material Supplier Other: Industry type (please select 1 only): Food & Beverage Pharmaceutical / Personal Care / Medical Hardware Homewares Communications / Electronics Clothing / Footwear / Fashion Chemicals / Agriculture Fuel Large Retailer Tobacco Shipping Company Airline Other: Please indicate your organisation's reporting period: Financial Year: 1 July June 2014 Calendar Year: 1 January December 2014 Please indicate the entire period your accepted APC Action Plan covers (e.g ) Start Date: End Date: 31/07/ /06/2015

2 Goal 1: Design KPI 1: % of signatories with documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent. 9. Does your company have documented policies and procedures for evaluating and procuring packaging using the SPGs or equivalent? 10. Of the types of packaging existing at the beginning of the reporting period, what percentage had been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting period? 1 Have any new types of packaging been introduced during the reporting period? 1 Provide details of policies and procedures SPG has been incorporated into the Employee Induction Booklet since 1/7/2014. The booklet specifies Yakult Australia's policy on: On-site Waste Management Buy Recycled Policy 3. Double Sided Printing 4. The company's commitment on continuous improvements in accordance to Australian Packaging Covenant guidelines. All Yakult Australia's employees are provided with the booklets and briefed during their inductions. 70 % If yes, of the new types of packaging introduced during the reporting period, what percentage have been reviewed using the Sustainable Packaging Guidelines (SPG) by the end of the reporting 100 % 13. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 1 Review content of locally sourced packaging materials against the SPG including: Reviewing local suppliers of packaging materials to determine recyclable content of the products Inquiries has been made to identify the local suppliers of packaging materials which includes: - Cardboard pads - Plastic pallet wrap - Labels -Wooden pallets The suppliers of the above products will be contacted to clarify if their products are in line with SPG. Targeting to complete the review in Q Review the advertising materials to determine recyclable content of the products Meeting was held with Public Relations Department to identify the suppliers providing advertising materials. Inquiries made on whether their products were in line with SPG. Yakult Australia is satisfied with their environmental capabilities. The matter is closed in Q

3 14. Describe any constraints or opportunities that affected performance under this KPI Yakult Australia is a member of the Yakult Group companies that are headed by Yakult Honsha, based in Tokyo, Japan. As polystyrene resins (to manufacture Yakult bottles), shrink wrap (for Yakult Light bottles, 5 and 10 pk outer wrapping and slab wrapping) and some raw materials (i.e. Yakult Essence) are all sourced via Yakult Honsha, Yakult Australia is not able to revise or implement changes for these materials without direction from Yakult Honsha. Goal 2: Recycling KPI 3: % signatories applying on-site recovery systems for used packaging. 15. Do you have on-site recovery systems for recycling used packaging? at all facilities/ sites at some, but not all facilities/ sites 16. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 3 Clearly marked recycling bins to be installed throughout Production and Office buildings (including work areas and staff break rooms). On-site recycling methods are to be reviewed annually. - Clearly marked recycling bins have been installed throughout Production and Office buildings as of 15 September Waste services providers have been changed to increase the level of on-site recycling of the company as of 15 September A memo dated 12th September 2014 was issued regarding these changes. Guidelines and signage to be created and displayed on-site to ensure waste is disposed of correctly. - A memo for all employees has been issued on 12th September 2014 to inform them of the changes and the correct ways of disposing different type of waste. - Guidelines and signage has been created and displayed on-site to ensure waste is disposed of correctly. - The policy and guidelines have been incorporated into the Employee Induction Booklet and all existing and new employees are briefed about them. 17. Describe any constraints or opportunities that affected performance under this KPI Yakult Australia reviewed pallet system that was being used by the production area. It rents the pallets rather than buying them, hence, the pallets get to be re-used after being returned to the owner. Enquiry has been made in regards to the ultimate destinations of the outer shrink wrap packaging once it has been delivered to our corporate customers. The customers confirmed that they are signatories of APC and have active recycling programs for plastics such as the type Yakult Australia use. 3. Yakult Australia has signed on with a resource recovery company to recycle its used photocopy cartridges and drums in Q and has been receiving Resource Recovery Certificates from them.

4 KPI 4: Signatories implement formal policy of buying products made from recycled packaging. 18. Does your company have a formal policy of buying products made from recycled packaging? Provide details of policies and procedures (including names of policies/ procedures) In Yakult Australia Employee Induction Handbook, there is "Buy Recycled Policy" which states that where possible, the company will purchase and use supplies that promote sustainable sourcing/farming or contain recyclable materials. 19. Is this policy actively used? 20. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 4 Draft and implement a formal Yakult Australia Buy Recycled policy. Upon implementation, the policy is to be reviewed annually. The Policy has been implemented and the Employee Induction Booklet which contains the policy has been issued to all employees in July All employees including the managers has been briefed on the policy. All new employees will be briefed on the policy during their induction to the company. 2 Describe any constraints or opportunities that affected performance under this KPI As stated in the action plan, there are constrains on purchasing materials sourced via our parent company. Goal 3: Product Stewardship KPI 6: % signatories with formal processes to work collaboratively on packaging design and / or recycling. 2 Does your company have formal processes in place for collaborating with other companies or organisations on improved packaging designs and/or recycling which aims to reduce or eliminate waste? Provide details of policies and procedures (including names of policies/ procedures) In Yakult Australia Employee Induction Booklet, there is an Environmental Sustainability section which includes " Buy Recycled Policy" and its commitment on complying with all the Australian Packaging Covenant guidelines. 23. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 6 Research Yakult Honsha (parent company) policies/plans to determine any proposed changes regarding content and design of product packaging. Yakult Honsha has no plan to change the content and design of product packaging at the moment. Speak to Corporate clients to determine their current waste management systems (particularly relating to pallet wrap plastics) and influence this process where possible. The Director of Sales and Corporate Affairs has spoken to Yakult Australia's corporate clients and they have confirmed that both of them are signatories to APC and have active recycling programs.

5 3. Work with suppliers to improve packaging design consistant with SPG Pallet sheets have been used to protect the stock when transporting the pallets to customers' premises. The Senior Advisor from Yakult Honsha and Manufacturing Supervisor from Yakult Australia worked with the supplier of pallet sheets to reduce the thickness of the pallet sheets but still providing the same level of protection to the stock. The new design was used since September The saving of materials (cardboard) are as follows: Old 4mm pallet sheet grams/sheet New 3mm pallet sheet - 487grams/sheet Saving per sheet: 15 grams Reduction of material: 99% per sheet Average usage per day: 45 sheets Saving of material per day: 675 grams Saving of material per year: Kg 24. Describe any constraints or opportunities that affected performance under this KPI KPI 7: % signatories showing other Product Stewardship outcomes. 25. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 7 Draft and implement a procedure to ensure office/administrative staff print documents double sided Trial a reduction in the amount of cardboard pads used to palletise and stabilise transported product. Policy has been drafted and implemented in July The policy is in Yakult Australia Employee Induction Booklet. Cardboard footers have been used to pad layers of stock when transporting via road to Perth to ensure against stock damage. From September 2013 the amount of cardboard footers per pallet has been reduced from 6 per pallet to one (bottom layer). This was trialled and without a noted increase in stock damage has been implemented permanently. To approximate the savings of materials, vember 2013 data has been analysed as follows:. of pallets of stock transported to WA: 86 pallets. of cardboard footers used: 86 footers. of footers that would have been used under old procedure: 516 footers Reduction of material usage: 83.33% Materials saved: Approx. 430 cardboard footers per month

6 3. 4. Contact current printer to determine recyclable content of finished PR/marketing products. Investigate the implementation of lighting with greater energy efficiency for the production building with the intent to inform future action. Printer and supplier of PR/marketing products contacted. They have verified that when printing Yakult Australia's brochures, the following has been used: Papers - FSC certified stock which is acid free and elemental chorine free. Inks - soy based 3. Machinery - A.C. powered, not D.C. powered - a lower energy consumption of up to 35% per impression 4. Digital Printing - n Silicon based Toner Energy Assessment Report by external party was done in Q Yakult Australia proceeded with the replacing of incandescent and fluorescent lighting with energy efficient LED lighting throughout the manufacturing buildings and administrative offices (Yakult Australia Energy Efficiency (LED Lighting) Project). There were 4 sets of installation carried out in the period of July to October Every light fitting in all of our buildings was replaced with energy efficient LED lighting. The implementation of the project reduces electricity usage of the company by 6.51% in terms of kwh and reduces the electricity bill by 214%. 26. Since the beginning of the reporting period, has your company had any other outcomes related to product stewardship? If yes, please give examples of other product stewardship outcomes Please refer to 25) and 25) 4. above. 27. Describe any constraints or opportunities that affected performance under this KPI KPI 8: Reductions in packaging items in the litter stream. 28. Please indicate your progress this year towards achieving your annual targets and milestones for KPI 8 Provide clearly marked bins in hotspot areas of the workplace (i.e. break rooms, smoking areas etc.) to decrease littering. Review bin lift data and breakdown of waste content annually. Investigate the process/ cost involved to implement disposal information on consumer packaging. Recycle bins implemented and notice to all employees issued in Q Bin lift data and breakdown of waste content pending. t due till Q However, currently all products have SA recycle information printed on their bottles. 29. Describe any constraints or opportunities that affected performance under this KPI

7 Your Experiences This section lets you share with us any achievements, good news stories and areas of difficulties in making progress against your plan and the Covenant goals and KPIs. 30. Key achievements or good news stories - Replaced inefficient incandescent and fluorescent light fittings with energy efficient LED light fittings - Reducing the use of material (cardboard footers) for transporting products - Increasing awareness of environmental sustainability of employees 3 Areas of difficulties in making progress against your plan, Covenant goals or KPIs Constraints on changes to materials sourced via our parent company.

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