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 plans and new shareholder benefits

<President Izumo>
The dividend is currently undecided. The reason is that we are advertising to people who do not know Euglena yet, and we are making an upfront investment in a biofuel production demonstration plant under construction. We would like to consider what measures will make our shareholders happy, and in the meantime, we will not pay due to upfront investment in advertising and research and development. We believe.
In addition, I would like to consider your opinion on the design of a shareholder benefit program that allows you to donate 1 yen per share to the Japanese Red Cross Society, etc., but at present, we are allocating funds to the upfront investment I just mentioned. I will. For this reason, we now want to promote socially meaningful activities such as corporate governance code and CSR activities while fulfilling our social responsibility as a company, for example, by paying corporate tax.

Opinions on stock prices and shareholder policies for the current term

<President Izumo>
First of all, the Nikkei average is the highest in more than 20 years, and the Dow is also the highest ever. Our business performance also reached record highs in both sales and profits for the fiscal year ended September 2017. However, the unwilling situation of our stock price continues. I have to reflect on that, but I do not do business or R & D without considering the stock price and shareholders.
In addition, regarding the sample distribution that received opinions, we understand and recognize that we have received such opinions and requests from investors who reach the IR window. However, I would like to mention the circumstances of the one-point company. Currently, we have more than 90,000 shareholders. If we distribute 1,000 yen to these 90,000 shareholders, it will cost 100 million yen. It has been pointed out that this is a regrettable sentence, but we have adopted a discount system for shareholder benefits because we would like to use it for upfront investment in research and development and advertising, which will be the next earnings base. We are here.
We are aware that we have received many inquiries and opinions regarding sample distribution and souvenirs at the general meeting, so we will improve corporate value and return shareholder value as soon as possible through upfront investment in advertising and research and development. I want to make it happen.
Stock prices are on a downward trend, which is the opposite of company growth, but we will firmly work on measures to change this.

Questions regarding the sale of individual shares held by President Izumo

<President Izumo>
The sale of the shares held is a fact. On the other hand, I would like to explain my thoughts here as it is a good time. Since its founding, I have been committed to the growth of Euglena and our company. As a proof of that, when I made an IPO with Mothers, I held it without selling any of the shares, and I made an effort to improve the corporate value of this company. And while the company is growing steadily, we want more people to become shareholders, and we are working on various measures in parallel with individual investors. Therefore, my commitment will never be reduced, and I would like to ask for your understanding and peace of mind.

Questions about material development of Euglena

<President Izumo>
Euglena is a plant resource and has five uses: food, fiber, feed, fertilizer, and fuel. We are considering the utilization of these five uses, and are currently developing foods, cosmetics, food for aquaculture, pet food, etc. in sequence. In the future, we are still in the research stage, but we are concentrating on biofuels. We believe that we can enter the business of films, biodegradable plastics, and fertilizers when Euglena can be used as a biofuel. Currently, we are promoting the business with the two pillars of making profits mainly in the healthcare business such as food and investing the profits in research and development.

Questions about IR activities and the shareholding ratio of foreign corporations

<President Izumo>
The shareholding ratio of foreign corporations is 2.1% as of September 30, 2017. We are aware that we must raise this level, and we carry out IR activities for overseas institutional investors several times a year. Specifically, I participate in conferences for institutional investors, travel to various regions such as Hong Kong, Singapore in Asia, London, Frankfurt, Geneva in Europe, and New York, Boston, San Francisco in the United States, with myself and Director Nagata. increase. We hold regular interviews with domestic institutional investors.
In addition, we started holding individual investor briefings in-house from the previous fiscal year.
By enhancing these three measures, we would like to provide information to foreign institutional investors, domestic institutional investors, and domestic individual investors, and strive to create shareholders this year as well. increase.
Regarding the indication that the ratio of foreign corporations is low at 2.1%, I think that this figure must be considered after comprehensively considering the type of business, business type, and how many years have passed since the company was founded. .. In the emerging markets of TSE Mothers listed companies, the shareholder composition ratio of foreigners is lower than that of TSE First Section listed companies, but since TSE First Section listed companies have a long history, the ratio of foreign investors is steadily increasing. It tends to be higher.
Under such circumstances, we were promoted to the First Section of the Tokyo Stock Exchange on December 3, 2014, so from 2015 and 2016, we will make appointments with foreign investors and explain them. Considering this point, it can be said that the value of 2.1% is gradually being successful in IR and PR for foreign investors. The Euglena, so I would like to explain to as many investors as possible and continue to work on shareholder development. ..

Question on investment amount during commercialization of biofuel production

<President Izumo>
Currently, the specific investment amount has not been decided. I would like to learn various things while operating the demonstration plant, which is scheduled to be completed in the next fiscal year and will invest 5.8 billion yen. Through the operation of this plant, we will first learn the know-how at the plant scheduled to be completed from the end of October 2018, and consider how much it will cost to make a commercial plant hundreds of times larger by utilizing all the data. We are doing it. While operating the actual machine, we are studying what we should do to make it as low as possible and hundreds of times larger, and we will discuss in detail what kind of equipment has the best cost performance after 2020. I would like to proceed with the examination.

Questions about shareholder returns

<President Izumo>
This does not mean that there is no return to shareholders, but we offer three shareholder benefits to shareholders who have held for one year or more and two to shareholders who have held for less than one year. One of the special treatments is a genetic testing service. This is limited to shareholders and we will inform you in advance. Currently, there are 90,000 individual shareholders, and shareholder benefit measures will affect business performance in a single year, so while taking that into consideration comprehensively, what kind of shareholder return method can be taken in addition to the enhancement of benefits and benefits? I would like to think about this in a way that has as little impact on business performance as possible. We will continue to consider improving shareholder value and returning profits to shareholders.

Questions about the development of biodiesel fuel

<President Izumo>
We have been aware of the recent trends in EVs overseas. Under such circumstances, I think that two strengths remain in diesel fuel development.
First of all, it is predicted that EV conversion will progress very rapidly regardless of whether passenger cars are gasoline or diesel. On the other hand, commercial trucks and long-distance transportation are areas where it is difficult to switch to electricity. In addition, electric airplanes are a field that is difficult to put into practical use. We believe that long-distance transport vehicles will not easily turn into electricity, and those using diesel engines will remain for a while.
Another point is that the biodiesel fuel we develop can be dropped in without having to tamper with existing engines. For commercial vehicles such as trucks and buses, we believe that trucks and buses that use existing internal combustion engines will continue to run for quite a long time, just like airplanes. From the above points, we believe that the demand for biodiesel fuel will remain to some extent.

Questions about future prospects such as genome editing and genetic modification technology

<President Izumo>
First of all, we are a biotechnology company. Genome editing, which is a gene recombination technology called CRISPR-Cas9 of the third generation, is actively researching the technology that has been used before this third generation gene recombination technology. To avoid misunderstanding, we do not use any genetic recombination technology for Euglena that you eat. In addition, we carry out research, production, and safety management under strict control so that such recombinants are not accidentally mixed. In Japan, GMO, that is, genetically recombinant, needs to be operated under extremely strict laws and regulations compared to other countries, so it is necessary to research and develop quickly and flexibly, so the University of California, San Diego UCSD in the United States We have also jointly worked on research in this field. As you pointed out, I thought again that it is necessary to proactively disseminate these things as IR activities.

R & D safety and safety questions

<President Izumo>
Euglena is naturally affected by pathogens and weather conditions, but on December 16, 2005, we completed the world's first outdoor mass culture technology for Euglena. For the next 12 years, we have continued culturing under various pathogens, pests, and various weather conditions, but in the past, the weather conditions were not suitable for culturing Euglena. At the production site on Ishigaki Island, we have doubled the production capacity to 80 tons until 2016 and 160 tons from February 2017, but thanks to you, we have never faced the risk of weather conditions and their pathogens and pests. , We continue to achieve the planned production. Understand that in order for the energy environment business to succeed after 2020, ensuring a stable supply of manufacturing and operating the promised amount will be particularly important for the energy business in any weather conditions. We are here.

Opinions and questions regarding Our

<President Izumo>
We would like to thank you for your understanding of our dividend policy. On top of that, our company is small compared to a large company like Amazon, but my feelings are to bear the opinions and expectations of shareholders and realize the world's first thing like Amazon. I think that. We have not paid any dividends yet, but we will continue to make steady progress in returning profits to shareholders and improving shareholder value, both domestically and internationally.

Questions about the development of products containing Euglena

<President Izumo>
First of all, our company has a 50-50 male-female ratio as a stand-alone situation. Approximately 20% of female managers will be able to easily return to the company after childcare leave, maternity leave, etc. We are working on it. We will take the points you have just pointed out seriously and reflect them in the future.

Questions about biofuel production plans

<President Izumo>
As announced, the biofuel production capacity of the biofuel production demonstration plant currently under construction is 125 kiloliters per year. On the other hand, as you pointed out, Nissan's 5 barrels do not reach sufficient supply for the demand of 580,000 KL. From 2020 onward, we are planning to use the data obtained from the demonstration plant to increase production by several hundred times.
Japan has announced that it will reduce CO2 emissions by 26% in 2030 at COP21 held in Paris as an international promise, while the number of people traveling by air has doubled in the last 15 years.
Looking at Asia alone, it is expected that airplane fuel will be doubled in the next 10 years. While the number of people traveling by air has doubled, CO2 emissions need to be reduced by 26%, which requires enormous reductions in CO2 emissions and the supply of bio-jet fuel. Since there is a huge market, I don't think that even a scale of several hundred times will be enough to increase production, but first of all, take this step and gradually enter the society like solar panels and other renewable energies. We would like to raise awareness as a new energy used.