当日回答したご質問・ご意見（事前にいただいた質問を含む）

Please note that the answers below are the contents at the time of the General Meeting of Shareholders and may differ from the latest information.

Questions about dividend schedule

<President Izumo>
Dividends are not currently paid (December 20, 2016) because we prioritize upfront investment in advertising and R & D expenses. We are aiming to achieve our medium-term management goals by 2020 (achieving consolidated sales of 30 billion yen, paying flights with domestic biofuels and driving on public roads), and we hope that our shareholders will understand this point. We would be grateful if you could continue to support and hold shares.

Questions about the progress of each research and opinions about the preparation of materials

<President Izumo>
As for the method of disclosing the materials, the fact is that we are worried about the disclosure. If you describe the explanations in detail, it will be difficult to understand in a specialized language, etc., and you may be asked to make the amount easy to understand. For important research results that easily contribute to sales, first apply for a patent. After applying for a patent, the research itself will be completed, but there will be a time lag before the approval for the acquisition of rights is granted. We will announce it in news releases as appropriate. In addition, regarding research progressing with government subsidies, etc., based on the report, we carefully and directly report directly at separate seminars and briefings.
We would also like to thank you for your valuable opinions and guidance for the General Meeting of Shareholders next year. The average number of shareholders of 2000 companies listed on the First Section of the Tokyo Stock Exchange is 22,000, but the number of shareholders of the Company exceeds 87,000. Under these circumstances, it is difficult to report the research in detail in the materials of the general meeting of shareholders, so if you have any questions, please see the news release separately from HP or TDnet, and if you have any questions, please do not touch insider information. I would like to explain within the scope.

Questions about overseas expansion from Shanghai, China and how to expand the business in the future

<President Izumo>
Although it has been a difficult time since our company was established in August 2005, sales have been steadily increasing since ITOCHU invested and actively participated in marketing in 2008. rice field. In other words, although we had the technological capabilities to produce, we received the strong support of a general trading company in order to bring new products to the market.
The functional food market in Japan is about 1.5 trillion yen, but the functional food market in the United States and China is larger than in Japan, and we were looking at the growth potential of that market and looking at the time to enter the market. .. Under such circumstances, ITOCHU has invested in China, so we chose the Chinese market with the aim of cooperating. Euglena is a completely new material in China, as a future development, Fukumoto, a director of the Company, has been appointed as chairman of the company and is focusing on it in order to raise its name locally. By 2020, we believe that we will be able to develop the Chinese market to a certain scale.

Opinions about products handled at convenience stores, and opinions that we would like you to provide better IR information so that stock prices do not fall.

<President Izumo>
Thank you for your opinion. Many other shareholders and customers have said, "I went to a convenience store to buy, but the product has already been sold." There is no excuse. However, FamilyMart and Ito-Yokado sell it in a limited-time, limited-quantity format, so once the quantity delivered is over, it will be sold out. With this merger, FamilyMart has expanded the number of stores to approximately 18,000. It is difficult to continuously deliver to all of these store networks without shortages at this point in time when our sales are growing so much. Demand for Euglena will also grow significantly, so we are making every effort at the production site on Ishigaki Island. In addition, it is necessary to prioritize sales and secure sales of in-house products with high profitability. The product Euglena to drink is continuously sold at Natural Lawson and Seijo Ishii.

Questions about Proposal No. 4 (setting of remuneration for directors (excluding directors who are Audit and Supervisory Committee members)) and Proposal 5 (setting of remuneration for directors who are Audit and Supervisory Committee members)

<President Izumo>
First of all, I would like to say that increasing the annual compensation amount for directors from 100 million yen to 200 million yen does not mean that my compensation amount will be doubled immediately. The remuneration amount proposed this time is only related to the setting of the frame, and as detailed on page 29 of the convocation notice, the latest remuneration amount is about 36 million yen for four full-time officers and 9 million yen per person. It is about.
With regard to raising the annual remuneration amount from 100 million yen to 200 million yen, I have such experience in fulfilling my duties as an officer of a listed company and realizing the domestic biofuel plan for 2020. We are aware that we need to secure excellent human resources. In addition, in order to secure corporate governance in the future, it is necessary to prepare to welcome new foreigners and women as officers. On the other hand, it is difficult to secure excellent human resources such as executives of listed companies unless the average level of compensation in the market is presented. Therefore, we would like to expand the scope of offers to achieve our medium-term management goals, and we would like you to understand this as such.

Questions about the progress of the biofuel demonstration refining plant and questions about increasing production of Euglena

<President Izumo>
We are sorry that the construction of the demonstration refining plant, which was scheduled to start in the summer of 2016, will be changed for about a year. Currently, there is no facility in Japan to refine bio-crude oil from Euglena. We have exchanged with CLG, which handles the technology license of Chevron Corporation in the United States, to manufacture jet fuel etc. using the technology of ARA, but this case is the first attempt in Japan, so it takes time here. I have. You may be wondering if the construction schedule will be pushed back further, but the basic design has already been completed, and we are preparing for the detailed design with the cooperation of Chiyoda Corporation. , No further schedule changes.
Regarding Euglena to be used for biofuel, Euglena, which will be newly increased in production in Taki Town, Mie Prefecture, will be used, and the project to be carried out in Saga City, Saga Prefecture will be for feed, not for fuel. If the supply is still insufficient, we are preparing to back up with Euglena produced in Ishigaki Island.

Our takeover defense measures

<President Izumo>
We would like to realize the management philosophy of "Health of people and the earth with Euglena" and the creation of new energy from resource-poor Japan. We want our shareholders to sympathize with Euglena, which we run with this kind of thought, and make them think that it was good to invest in this company and leave it to this management. That is my responsibility. We would appreciate it if you could trust us by improving our corporate value and giving back to our shareholders. Therefore, as a listed company, we do not have any special takeover defense measures. When a company that wants to acquire it appears, we will ask our shareholders to support us without selling our shares, and we will do our best to return it in terms of business performance and research. If you have any questions, we will accept them as ale.

Opinions about the long response time to President Izumo's question, and questions about our patent strategy in the presence of Euglena

<President Izumo>
We will answer as briefly as possible. Are thousands of species Euglena out of, the Company to take advantage Euglena might be kind of seems to be insecure if it is 100 species, many of Euglena not equipped with a capacity of about available on the industry is in. Euglena that we do not know at all, the possibility is not zero. Euglena with an unusual ability that we do not know, even if another company patents it, we think that there is no problem. We have 11 years of research experience, achievements, and know-how since we succeeded in mass cultivation outdoors. The more nutritious Euglena is, the easier it is to eat and it is very difficult to cultivate in large quantities, so it is very unlikely that Euglena We have the confidence and research results that we can make the same material at low cost, which we consider to be a risk that we can fully control.

Euglena Farm Green Juice-Matcha Tailoring-

<President Izumo>
Even if you put it in hot miso soup or cold yogurt, the contents of the product are originally sterilized at high temperature so that you can drink it safely. As for why I introduced the warm ones this time, Euglena contains a lot of unsaturated fatty acids such as arachidonic acid of omega 3, but when these are oxidized, it smells of shore, especially warm. When you drink it, the aroma of these substances is emphasized. Those who like this scent are good, but some people are not good at it, so there was an opinion that I would like it to have a more wonderful scent. Therefore, although the content of Euglena was slightly reduced, the product was launched with the product concept that the aroma is not strong even when it is warm and drunk. In other words, there is no problem in terms of the nutritional components contained, so I would like you to enjoy it in your favorite way of drinking.

Opinions on stock prices, dividends, and stable shareholders

<President Izumo>
Looking at this year's stock price, it has fallen throughout the year. Since the stock price is the corporate value itself, the management deeply apologizes for the fact that the stock price has become such a stock price. However, other management figures are growing steadily, so we will do our utmost to meet your expectations. Regarding dividends, you may think that if you have funds, you can use them for dividends, but do not delay the growth of sales due to future advertising and the practical application of biofuels by 2020. We would like to invest in achieving this, and we ask that you keep an eye on it until then.
Next, regarding measures for stable shareholders, the number of shareholders of the Company is higher than the average of 2000 listed companies. We would like to cooperate with the companies that promote our business together, so the ratio of liquid stocks is higher than that of other companies. We also believe that the large number of shareholders is one of the reasons for the high current ratio. We cannot disclose the specific company name, but we will create a cooperative system with companies that can become stable shareholders, and at the same time, we will practice IR that allows stable investment, so please keep an eye on it for a long time. I am.

Questions about PR methods such as commercials and cosmetics sales using actress Umika Kawashima

<President Izumo>
The commercial featuring actress Umika Kawashima will be used to spread Euglena In addition, the PR method is set based on what the customer is interested in on the Internet. For products sold directly, we would like to promote efficiently so that we can focus on the target. On the other hand, in order to visit general stores such as Aeon, a wide range of advertisements are required, so in addition to SNS tools such as Facebook, we would like to enhance the advertisements in IT.