To contribute to sustainable growth and improved corporate value over the medium to long term, Lacto Japan will build a long-term relationship of trust by actively engaging in constructive dialogue with its shareholders and investors.

Dialogue Framework

Dialogue with shareholders and investors is overseen by the Director in charge of Investor & Public Relations. It is also the Company's basic policy when it comes to dialogue to have the President, the Director in charge of Investor & Public Relations, or the General Manager of the Investor & Public Relations Department, attend meetings within a reasonable extent, taking into account the wishes of shareholders and investors, and the main matters of interest of the meetings.

Main Investor Relations Events and Information Disclosure

Dialogue with shareholders and investors conducted by the Company in fiscal 2024 (December 2023 to November 2024) is as follows.

Event

Details

Main Speaker

Financial results briefing

A financial results briefing for analysts and institutional investors is held twice a year after the year-end and second quarter financial results are released.

Information such as explanatory materials and main questions and answers from the day are posted on the Investor Relations page of the Company's website.

President

Executive Vice President (in charge of Investor & Public Relations)

Individual meetings

Individual sessions take place with domestic and foreign analysts and institutional investors.

Sessions: 54 in first half and 61 in second half (figures are total number of sessions that have taken place)

Executive Vice President (in charge of Investor & Public Relations)

General Manager of Investor & Public Relations

Small meetings

Small group meetings are held mainly for domestic institutional investors.

Sessions: 3/year

Executive Vice President (in charge of Investor & Public Relations)

General Manager of Investor & Public Relations

Shareholder meetings

Sessions for shareholders take place every year for domestic institutional investors who are our main shareholders.

Sessions: 10

Executive Vice President (in charge of Investor & Public Relations)

General Manager of Investor & Public Relations

Briefings for individual investors

Lacto Japan takes part in briefing sessions planned by companies that support investor relations. Explanatory materials from the day are posted on the Investor Relations page of the Company's website.

Sessions: 2

President

Other information disclosure

IR-related materials such as financial results, timely disclosures, financial results briefing materials, supplementary materials, annual securities reports, quarterly reports, notice of convocation of the General Meeting of Shareholders, the Lacto Japan Newsletter (shareholder newsletter), and integrated reports are posted on the Investor Relations page of the Company's website.

We also have an About Lacto Japan page to help investors understand our business, features and strengths.

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Content of Dialogue and the Company's Response

Main themes of dialogue
  • Recent business performance and the business environment

　・Business performance progress

　・Domestic business environment (mainly the status of skim milk powder inventory and future outlook)

　・Business environment and business development in Asia
  • Medium-term growth strategy

　・Initiatives for growth of key businesses, such as cheese manufacturing & sales in Asia and sales of functional food ingredients
　・Investment plan (status of the new Singapore plant and other investments)
　・Approach to financial strategy (operating cash flow)
　・Shareholder returns policy
  • Disclosure of sustainability initiatives and related information

　・Approach to promoting sustainability activities

　・Status of initiatives related to succession planning

Matters incorporated based on dialogue (main points)
  • Shareholder returns

　・Achieve the dividend payout ratio target (25%) declared in the Corporate Business Plan ahead of schedule
  • Enhance information disclosure

　・Enhance disclosure of English-language materials (financial results, timely disclosure information)
  •  Strengthen approach to sustainability activities and enhance disclosure thereof

　・ Enhance information disclosure through the integrated report

　・ Establish the Corporate Sustainability Department

　・ Respond to questionnaires from external rating agencies
  • Management focused on cost of capital

　・Introduce ROIC as a profitability management indicator of each business division

Feedback for senior management and board of directors
  • Report on the content of dialogue with directors (monthly report format)
  • Report on investor feedback for senior management (as and when required)