Outlined below are the major risks identified by Meiji Group that could have an impact on the Group's business results and financial position, and which may materially influence investors' decisions. Therefore, please note that the items outlined below are not an exhaustive list of all the risks.
Forward-looking statements included in the outline below are the views held by the Group as of the submission date of the securities report (June 29, 2011) and include uncertainties related to future developments.

Prices of the Meiji Group's key raw materials (milk, dairy products, cacao beans, nuts, etc.) and energy commodities may be affected by supply/demand conditions, speculative influences, etc. in Japan and abroad. Such high prices have the potential to greatly impact procurement and production costs.

The Meiji Group purchases some of its raw materials and goods from overseas. It also operates businesses overseas. Therefore, sudden foreign currency fluctuations beyond the forecasted range have the potential to impact the Group's business results and financial position.

The Meiji Group's dairy products business and confectionery and health businesses may be affected by the weather. For example, a cool summer can decrease sales of ice cream and dairy products. Extreme heat can decrease sales of chocolate and other confectionery goods. These have the potential to impact the Group's business results and financial position.

In the Meiji Group's dairy products business, if there are sudden changes in the international trade system such as customs duties, in the dairy farming system such as the "Act on Temporary Measures concerning Compensation Price for Producers of Milk for Manufacturing Use," or in practices, there are potential impacts on the Group's business results and financial position.

The Meiji Group takes various actions to ensure product safety and preventive measures against risks foreseen to occur throughout production. However, if there is a large-scale product recall, or even if there is no direct problem with the Group's products, rumors in the food industry might affect the Group's products, and this could result in a drop in sales, huge costs, etc. These have the potential to impact the Group's business results and financial position.

The Meiji Group conducts product development, manufacturing, and marketing for the pharmaceutical business in compliance with various laws and standards enforced by regulatory authorities. Nevertheless, unforeseen side effects have the potential to occur during development and after product release. The Group prepares for such incidents by carrying appropriate insurance coverage for various types of liability, including product liability. However, there is no guarantee that insurance will be sufficient to cover all damages associated with such liability. Unforeseen side effects therefore have the potential to impact the Group's business results and financial position.

In the Meiji Group's pharmaceutical business, prices of medical care pharmaceuticals are affected by government medical policies, including drug price revisions and the healthcare insurance system. These have the potential to impact the Group's business results and financial position.

New product development for the Meiji Group's pharmaceutical business implements extended periods of product testing, which require significant expenses. Instances occur in which safety or efficacy issues compel the Group to extend, suspend or discontinue research and development projects. The progress status of research and development has the potential to impact the Meiji Group's business results and financial position. Moreover, launches of products developed by the Group may be delayed if research and development does not proceed as planned, which could require the Group to utilize products of other companies. Such cases have the potential to increase outlays for intellectual property rights and licensing.

In research and development and other business activities, the Meiji Group takes care to avoid infringing on intellectual property rights of third parties. However, the outcomes of unexpected litigation by third parties who claim infringement on their intellectual property rights have the potential to impact the Group's business results and financial position.

The Meiji Group has large amounts of confidential information required in business operations, such as personal information including that of customers, and important information concerning its management. For management of this information, the Group takes suitable actions including system controls: it established an Information Management Committee, provides training to employees, etc. However, there could be risks that currently unforeseeable unauthorized access or computer virus infection will cause leaks, falsification or loss of confidential information, the computer system could become temporarily unusable, etc. If such a situation occurs, it has the potential to impact the Group's business results and financial position.

The Meiji Group maintains a proper risk management system to prevent human injury and damages to facilities (including production plants) resulting from natural disasters like earthquakes. However, in the event of a large earthquake (or other disaster) that exceeds expectations or large-scale destruction of social infrastructure, this could have a negative impact on our business results because of a loss of assets, the destruction of facilities , and disruptions in product supply.