Under the new Corporate Business Plan, we will strengthen our existing businesses and reinforce initiatives for the next stage of growth.
To date, we have disclosed our Corporate Business Plan on a rolling basis. The reason for this is that as the business environment in which we operate is rapidly changing, it is rational for us to assess the situation each year, review our strategies, and respond accordingly. Many of our stakeholders have understood this as well. On the other hand, we also believed that having more employees increase their awareness of the business environment from a macro perspective and become more strongly committed to the Corporate Business Plan would ultimately serve as a driving force to enhance our growth potential.
Therefore, on this occasion, we have announced a new Corporate Business Plan based on a fixed three-year method in order to give you a better understanding of Lacto Japan.
Growth scenarios for the management policies in the new Corporate Business Plan are organized into three categories as before: "Base," "Growth," and "Challenges." First, in the existing businesses which are our "Base," we will continue to evolve with ingenuity while appropriately assessing the business environment. Next, with regard to "Growth," we will expand our Asian business with processed cheese manufacturing and sales in Southeast Asia at its core. And then, under "Challenges," our plan is to build next-generation businesses, including the development of functional food businesses that lead to better health.
I have long felt a sense of crisis over global market saturation and the decline of the working-age population in Japan since its peak in 1995, and have believed that Lacto Japan must create its own demand in order to realize sustainable growth in corporate value in the future. The "Base," "Growth," and "Challenges" areas of the new Corporate Business Plan also reflect these thoughts of mine, and in particular, "Growth" and "Challenges" present specific paths for creating our own demand.
In terms of creating new demand, I recognize that one of our success stories is the manufacture and sale of processed cheese in Southeast Asia. When we started this business, the market for processed cheese for commercial use in Southeast Asia was virtually nonexistent. Against this backdrop, Lacto Japan has become a frontrunner, creating and expanding new markets while overcoming many hardships and difficulties. We will continue to accelerate our efforts to create new markets without being satisfied with our successes in Southeast Asia.
In addition, we have been focusing on strengthening and upgrading governance, which is the foundation for ensuring sound, transparent, and efficient management. This is due to my own strong recognition and intention that establishing solid governance is an essential foundation for Lacto Japan's sustainable growth, and not only in order to comply with the Corporate Governance Code established by the Tokyo Stock Exchange. We are keenly aware of the importance of governance and will continue to strive for its thorough implementation and further advancement.
Lacto Japan Co., Ltd.