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 financial statements and opinions on how to disclose financial statements

<Vice President Nagata>
We will respond by nominating the chair. The main factor behind the increase in SG & A expenses in the income statement for the 14th fiscal period was advertising expenses, an increase of approximately 1 billion yen compared to the previous fiscal year. In addition, personnel expenses and management expenses have increased due to the consolidation of two companies, GeneQuest and Hook, resulting in a total increase of approximately 3 billion yen in SG & A expenses.
Regarding the lump-sum cost recording of the biofuel production demonstration plant, we have capitalized it as a construction in progress account, but we plan to account for the asset as a lump-sum depreciation cost instead of period amortization. In essence, the cash out itself is the same regardless of the amortization, but we thought that if we recorded a lump sum expense, it would be easier to understand the profitability and business performance of Euglena On the other hand, for tax purposes, it will be amortized over a period of time, so this case will be deducted from the next fiscal year onward.
In addition, factors that increase “current assets and others” on the balance sheet are refunds of income taxes paid and consumption tax receivable. In particular, the consumption tax has increased due to the investment in the biofuel production demonstration plant, and the refund has not been received, so other current assets are increasing.

Questions about the president's thoughts on stock prices

<President Izumo>
We think that the stock price is the voice of the market, so we must take it seriously. With the support of about 88,000 shareholders, we have never forgotten that we are today. From the 15th term, we separated management and execution and renewed corporate governance, and strengthened the board of directors to a transparent management system in which outside directors account for the majority.
Furthermore, I think it is necessary to invest about 6.4 billion yen in the biofuel production demonstration plant, which is Japan's first initiative, and to disseminate information not only in IR but also in an impactful manner to increase news value. I will.
In addition, for medium- to long-term growth, we will steadily grow the energy and environment business into a business with a certain scale. In the near future, we plan to supply the biofuels we produce to vehicles in all areas of land, sea and air and commercialize them by 2025. We will continue to work harder than ever to improve corporate value and shareholder value, and we would appreciate your continued encouragement.

Questions about "Euglena Green Juice" and raw material trading, and opinions on strategies to raise awareness

<President Izumo>
"Euglena difficult to drink powder type of product called green juice", takes a long time to wash the container, opinions that are to be charged than before, the capsule type as well as our products, "Euglena Plus" and tableting type of We sell the product "Euglena Green Juice Grain Type". In addition, as a raw material transaction, there is "Euglena Euglena raw material powder via ITOCHU Corporation. As you said, it is important to raise awareness in drugstores and design various opportunities for customers to pick up directly. We carry out package tests and evaluations for each store to raise awareness, and we will repeat the implementation and verification of various measures so that distribution sales staff can firmly pick up our customers.

Opinions about call center counters and product packages

<President Izumo>
The number of regular purchase customers has tripled from 100,000 to 264,000 in a few years, and the product lineup has expanded. Therefore, we are spending more time and personnel on the education of outsourced call centers. I myself am actively visiting the call center and creating opportunities to talk with the staff.
Regarding the package of "Euglena Plus", we have received opinions on why the product is individually wrapped from the viewpoint of cost and environmental consideration. On the other hand, there are a certain number of opinions that we want them to be individually wrapped when going on a business trip or traveling. Therefore, we have prepared a product lineup that suits the customer's application. For example, if it is "Euglena Pure" containing 90 tablets, we have redesigned the bottle to be smaller. In addition, the product "Super Euglena" of Epora, a group company, is designed to be easy to swallow by making each capsule as small as possible for those who find it difficult to swallow large capsules.

Opinions on sales strategy

<President Izumo>
We recognize that we need to steadily accumulate evidence that differentiates us from other materials, rather than doing the same things as other materials as materials that are unprecedented by other companies. For example, in addition to spreading awareness of Euglena to the general public through advertising investment, measures such as using evidence on the functionality of materials to firmly publicize to professional athletes and aiming for high-value-added products such as pet products. I think that we have to take measures such as.

Questions about growth strategy and financial soundness

<President Izumo>
What many people are expecting is to steadily generate cash flow and profits in the healthcare business to maintain financial soundness, and to invest those profits in the energy and environment business from a long-term perspective. We recognize that being able to rotate these two wheels is one of our strengths and characteristics as a venture company.
Of course, you should always be aware that your car will not be able to go straight, as the wheel of financial soundness will become too small and the risk of growth investment on the other wheel will increase. However, we believe that we are a group that realizes the first thing in the world, a venture company that exists to turn society in a positive direction. Even if we place too much emphasis on financial soundness and do not invest in growth, and say, "We will make a little more profit in the next fiscal year," I think that the market will not appreciate it. With a focus on growing as a venture company and achieving our goals, we will move forward with due consideration so as not to carry risks. As a measure to maintain financial soundness, we resolved to issue stock acquisition rights in September and raised approximately 3.8 billion yen.

Questions about the intent to use waste cooking oil in the production of biodiesel fuel

<President Izumo>
At present, the production of Euglena for fuel is technically unstable with respect to the planned supply of biofuel. Therefore, it is assumed that waste cooking oil accounts for the majority of the raw material at the stage of producing 125KL of biofuel at the biofuel production demonstration plant. However, after 2025, when we enter the stage of producing a huge amount of biofuel, we believe that the amount of waste cooking oil that can be procured will decrease due to the limited resources. Since waste cooking oil in Japan has already been exported to China and Europe, the price of waste cooking oil will rise if demand is expected to increase. If that happens, it can be expected that the supply ratio of Euglena as biomass will increase as the scale of biofuel production increases in 2025 and 2030. In any case, the biofuel business cannot do business without a stable supply of fuel to customers, so we should procure multiple types of biomass as a raw material and diversify it without depending on one type of raw material. I think I have to.
Waste cooking oil has been used as a raw material in the conventional biofuel FAME (fatty acid methyl ester), but the mixing ratio of these is limited to 5%. On the other hand, the biodiesel fuel produced at our biofuel production demonstration plant is a completely new technology that can be used at a mixing ratio of 100%. While considering the balance between supply and demand of waste cooking oil, we believe that there is still room to fully utilize waste cooking oil.

Questions about business performance after 2020 and executive holdings

<President Izumo>
The question you receive is not a pure dream, but a clearer explanation of your achievements. If the supply of biofuel is 250,000 KL in 2025, it may be difficult to imagine how big it will be, but assuming the price is 100 yen / L, the sales will be about every year. That's 25 billion yen. To establish a business of this scale, we are currently investing billions of yen in a biofuel demonstration manufacturing plant and are trying to put the biofuel business to practical use before any other company. In addition, even after making this successful, I think it is more than possible to grow the business by another digit by expanding the business in Asia and other countries.
Regarding holdings, at present, directors already have stock acquisition rights with performance conditions, and are ready to work from the same perspective as shareholders. In addition, we have made it possible to select the transfer-restricted stock-based compensation that we have submitted in this third proposal from this year.

Opinion about the naming of Euglena

<President Izumo>
Many people have the opinion that the name "Euglena" does not have a very good image. The shareholder who asked the question would like to take it as a valuable opinion and answer it because he / she recommends Euglena to his young lady, but he / she does not like it easily.
First of all, I think it is necessary to carefully convey that Euglena is not a worm but a kind of algae of kelp and wakame seaweed. Even when it is taken up by the media, I would like to not hide the word Euglena, but to spread it firmly even if it takes time.
On the other hand, a few years ago, we sold "Drinking Euglena" and "Drinking Euglena", which have the same ingredients but different names, separately in western and eastern Japan. The result was that the sales per store were higher for "Drinking Euglena". In addition, it has become clear that the name "Euglena" has better sales growth than "Euglena" for drinks that can be easily purchased for a few hundred yen each. In other words, we believe that there is only the royal road to communicate with customers in an appropriate way according to the product, customer, and channel. Rather, some people actually said, "Why don't you use the name Euglena?", Which is very annoying.
In addition, we must continue to make constant efforts regarding marketing, so if you have any questions, please feel free to contact us at any time. We have read the opinions and inquiries received from the call center, so we would appreciate it if you could continue to give us your opinions.