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 Taketomi shrimp farming and chitin / chitosan (animal dietary fiber contained in crustaceans such as crabs and shrimp), opinions on how to respond to the venue

<President Izumo>
We would like to continue our efforts to expand sales channels by utilizing Euglena for various feeds, not limited to shrimp farming. I would like to be able to explain carefully each time what kind of relationship it has with the business, such as the acquisition of Taketomi Shrimp Culture, and what kind of potential it has as a research.
Next, collecting chitin, chitosan, etc. from crustaceans and turning them into new businesses is exactly the research we are conducting under the Cabinet Office's "Strategic Innovation Creation Program (SIP)". Currently, research and development is being carried out on a daily basis, such as converting discarded substances into chitosan and recovering multivalent higher unsaturated fatty acids such as DHA and EPA.
Also, thank you for your valuable opinions regarding the venue support. We will reflect the correspondence firmly.

Questions about the efficacy explanation in product PR advertisements and the shape and form of products

<President Izumo>
At present, it is not possible to make a description that reminds us of the effect of a product because it is not permitted by the current law. On the other hand, when new research results are obtained or functionality is elucidated, we report in the form of reports. As you said, we are reporting on data such as suppression of purine absorption and reduction of triglyceride count. I would like to summarize the alleviation of rheumatic symptoms and influenza symptoms that were newly discovered this year in the same way.
In addition, we receive various opinions every day regarding the shape and form of our products. We are working hard every day to reduce the size of capsules and develop products with rich flavors, so we would be very grateful if you could give us such opinions in the future.

Questions about expanding the healthcare business, questions about production capacity, questions about Chevron's technology in biofuel manufacturing

<President Izumo>
We are aiming for 150,000 regular customers by the end of next fiscal year, but in the future we are aiming for 1 million as a supplement major. Euglena ・ Of course, I would like to deliver related products containing Euglena, mainly green juice from the farm, to as many people as possible. From this year, we have started full-scale business in China. I think it is natural that we should strive to reach 1 million customers who love Euglena in Japan and overseas over the long term.
Next, regarding production capacity, if we compare the sales of this term and three years ago, it will naturally increase the amount of Euglena to be shipped. As a result, we are expanding our production capacity so that products containing Euglena will not be out of stock. The production site does not suddenly become larger, and we can understand the issue of what is the biggest bottleneck among various ancillary equipment such as culture layers and dryers, so from the most urgent part. We have made a detailed capital investment and production plan so that we can keep up with sales expansion.
Due to confidentiality, we cannot provide details on the contract with Chevron Lummus Global. However, there is currently no biojet fuel derived from Euglena and biodiesel fuel that can be dropped in 100%. Chevron, a major US oil company, Chevron Lummus Global, a subsidiary, and ARA, a research and development engineering company, are positive about taking on the challenge of this nonexistent technology.

Questions about the impact of low crude oil prices on jet fuel development, and questions about the determination to produce jet fuel from Euglena

<President Izumo>
I am worried about the slump in crude oil prices in some respects. However, it is consistently competitive at any price, rather than predicting how crude oil prices will change after 2018, when the demonstration plant goes live, and 2020, when commercial plants are scheduled to be built. We will strive to reduce costs so that we can ship at a price. There is a secondary benefit to reducing costs. Research and development for jet fuel will result in innovative cost savings not previously available. If it is applied, the cost of Euglena manufactured for food and cosmetics will be reduced. We are striving to reduce costs toward the goal of being able to ship at crude oil prices and competitive prices, so even if it does not reach a competitive price immediately, the effect will be returned to our business. I will.
Therefore, not only the price but also the carbon tax, CO2 reduction issues and energy security perspectives can be raised. Japan is not self-sufficient in energy, so in the unlikely event that Japan runs out of energy. Considering this point, the government and related organizations are strongly aware that operating airplanes and buses with domestic biofuels is extremely important from the viewpoint of energy security. I would like to work on it over the long term without worrying about changes in crude oil prices.
In addition, it should never happen that the production of euglena is the only raw material and the production on Ishigaki Island is stopped, making it impossible to produce biofuel. In order to hedge the risk and make it a continuous business, we are planning to design a plant that can input raw materials other than Euglena. From the perspective of taking leadership, we will work to make this plant an all-Japan plant.
Finally, we do not recognize other companies engaged in the production of microalgae-derived biofuels as competitors. Biofuel production technology using microalgae is based on fermentation technology that controls microorganisms, and we are working with the pure idea of creating domestic energy resources in Japan, where resources are scarce. Therefore, we will design the plant so that resources other than Euglena can be invested so that we can work on it all-Japan.

Questions about Equity and Our

<President Izumo>
I answered the question in the Ito report at the beginning, but I am naturally aware that ROE 8% is often heard recently as an easy-to-understand index.
From 2020, we plan to complete five uses of the 5th floor of biomass. Up to this point, we have the idea of allocating the company's profits to R & D investment and advertising activities.
By using fuel for airplanes and buses that are used daily after 2021, and by having 1 million people around the world, including Euglena I think it is. When I grow up from all these indicators and perspectives, I will implement return measures such as dividends. Therefore, for the time being, we would be grateful if you could continue to support and hold shares after understanding that the company's profits will be allocated to R & D expenses and advertising expenses.

Question about what you are doing specifically about the environmental business

<President Izumo>
We will supplement the joint research with Saga City, Sumitomo Joint Electric Power Company, and Shimizu Corporation on page 36 of the convocation notice.
First of all, the joint research with Saga City is being promoted within the framework of the leadership project, which is the research and development of innovative sewerage treatment technology of the Ministry of Land, Infrastructure, Transport and Tourism. In this framework, Toshiba is in charge of separating and recovering CO2 from sewage treatment facilities. The CO2 emitted from the sewage treatment facility will be used by Euglena to reduce or increase production. This is the base first. Through this, we will increase production while effectively reducing carbon dioxide in factories that emit a large amount of CO2 with Euglena, which will be a part of reducing the culture cost of Euglena.
Next, in joint research with Sumitomo Joint Electric Power Co., Ltd., there is a coal-fired Mibugawa Thermal Power Station in Niihama City, Ehime Prefecture, which uses only coal to generate electricity. At this Mibugawa coal-fired power plant, we have already installed a pilot euglena culture facility on a trial basis, and are conducting a test to cultivate various euglena according to CO2 while operating continuously for over a year. Thermal power plants buy coal from various sources. This coal also has various components in the exhaust gas that change depending on the production area. Even if this changes, Euglena has been developing for over a year on the premises of the Sumitomo Joint Electric Power Plant so that photosynthesis can promote CO2 reduction and immobilization. is.
Finally, there is a joint research with Shimizu Corporation. This is not done in Japan. In Oman, a foreign country and the Middle East, Shimizu Corporation accepts this at an oil-related water treatment facility. When producing crude oil, a large amount of water contaminated with crude oil comes out, and this is a technological development that uses our Euglena to purify this water. For this purpose, we dispatch researchers to the Middle East as appropriate, and with the cooperation of Shimizu Corporation, we are conducting research on the development of Euglena and water quality treatment technology that can be cultivated locally. I think it is actually difficult to cut out only this research and become a business, but there is a point as to why we are working on this. This is because the temperature in the Middle East is high and the solar radiation conditions are good. In hot environments that Euglena cannot handle, the sunlight may be too strong and our Euglena may not be able to adequately remove antioxidants. It is a very important research to develop the technology of Euglena in a certain degree of stability by conducting culture experiments in Oman under such a harsh environment. We are working on each of these three with the right partners.
For all three points, new data on the progress of research will be obtained for large epoch making, and we will report appropriately through releases, etc. when we make patents and other intellectual property.

Questions about the current status of compliance with the Corporate Governance Code

<President Izumo>
We are aware that the Corporate Governance Code has been in operation since June 1, and is a compilation of the main principles that contribute to the realization of practical corporate governance. We are currently considering the implementation status of each principle of this Corporate Governance Code. I would like to report it as disclosure information when the content is finalized.
In addition, after the Board of Directors has a good understanding of the purpose and spirit of each principle of the Corporate Governance Code, we are currently considering the necessity of implementing each principle. If there is something that can be judged that it is desirable to implement other measures without implementing the principles such as the content of this examination, I would like to actively disclose it and strive for understanding.

Euglena can be used to generate electricity

<President Izumo>
We will answer this question from two aspects. The first is whether it can be used as fuel for power generation, and the second is whether Euglena itself can generate power.
First, Euglena can be used as fuel for power generation. On the other hand, fuel for power generation is cheaper than gasoline, light oil, or jet fuel for transportation. In other words, in order to use Euglena as a fuel for power generation, it is essential to cultivate it at a lower cost than bio-jet fuel. Regarding that, I think it is necessary to carefully select Euglena, which is suitable as a fuel for power generation, and thoroughly consider whether it has the potential to become a business.
The second is about the power generation of Euglena itself. Some types of soil bacteria can take up organic matter and generate electricity from the potential difference. On the other hand, generating electricity from the Euglena itself and extracting electricity in the form of a Euglena battery is a field with high technical hurdles. Therefore, the answer at this point is that if it is possible to consider whether it is profitable or not as a business, it is limited to Euglena as a fuel for power generation of the former.

Questions about the impact of air pollution and marine pollution on Euglena, questions about why Isuzu Motors Ltd. and All Nippon Airways were selected as partners

<President Izumo>
As you pointed out, serious air pollution and marine pollution due to the mass dumping of pollutants are urgent issues in China and other countries. On the other hand, when the environment is polluted, environmental pollutants are accumulated in high concentrations in large animals close to us by the food chain. For example, organisms such as Euglena make various nutrients, and plankton such as Daphnia eat Euglena. Next, small fish such as sardines eat Daphnia, and large migratory fish such as tuna and bonito eat sardines, resulting in the accumulation of nutrients in the tuna. If the environment is polluted by the same route as this food chain, high concentrations of heavy metals will also accumulate in large animals. As a result, it is the large animals close to us that are affected by marine pollution and have safety issues. In other words, Euglena, which we cultivate on Ishigaki Island, is the starting point of the food chain where we can enjoy it without being affected by marine pollution. Since it is a producer that produces nutrients, I hope you can enjoy it with confidence.
Next, I can't tell you the details of why Isuzu Motors and All Nippon Airways are partners, but they are the two companies who believed in the potential of Euglena. These two companies will be the companies that actually invested as shareholders and invested research expenses.

Opinions about the taste of Euglena

<President Izumo>
Many people have never drank euglena-related products, so I think it is important to have as many people as possible eat and taste euglena. When it doesn't suit the person who tasted it first, we humbly collect opinions for improvement. On the other hand, we are fully aware that tasting is important. Before the subscription, we will ask you to try it as a trial set for 980 yen per week. We would appreciate it if you could try this and if you like it, you can basically choose either capsule or granules according to your favorite way of drinking.