22nd Floor Taiyo Life Nihonbashi Building, 2-11-2 Nihonbashi, Chuo-ku, Tokyo, 103-0027 JapanTEL: +81-3-6281-9701

https://www.lactojapan.com

Printed in Japan

C O R P O R AT E P R O F I L E

1 Co r p o rate Pro f i l e 2

Managing Director’s Message

GLOBALFOOD PROFESSIONAL COMPANYCorporate Phi losophy

We are transforming Lacto Japan into a company that contributes to the development of food culture worldwide.Our goal is to continue growing and developing as a company that makes a difference to society. Based on strong relationships of trust with the world’s leading suppliers, we will ensure stable supplies of reliable and safe food and ingredients to our customers, ultimately contributing to consumers’ nutrition, health and enjoyment of food.

Dairy products, the main type of products handled by Lacto Japan, are sometimes referred to as gifts from heaven, as they contain almost all the daily nutrients we need.

In recent times, major advances in food processing technology have allowed us to create a wide variety of different dairy products, such as condensed milk and products made from milk extracts. As a result, dairy products are now used in a wide range of areas such as the health food and medical fields, in addition to the traditional area of food ingredients. That means Lacto Japan is directly involved in supplying ingredients to people of all ages – from infant to elderly person.

Our business environment has undergone some dramatic changes, even in the meat products industry, another key area for Lacto Japan. Since the start of this century, we have seen unusual weather patterns in all parts of the world, the rise of emerging markets with vast populations, and imbalances between feed supply and demand due to the growing use of grain to make bio-ethanol, which has caused sharp fluctuations in feed prices.

In response, we have opened overseas offices in the major dairy and livestock producing areas of EU, Australia and U.S.A., and formed partnerships with some of the world’s leading suppliers to ensure we have access to stable supplies.

Amid rapid globalization in domestic food procurement, Japan has put in place some of the world’s most rigorous rules on food safety and security. We are doing everything possible to ensure customer satisfaction, such as implementing traceability systems that cover all areas of production right back to the feed given to dairy cattle, pigs and other livestock, monitoring factory hygiene conditions and production lines, and conducting quality control checks.

Going forward, we will continue to grow and develop as a company that makes a difference to society, helping to solve some of today’s challenges by contributing to people’s nutrition, health and enjoyment of food.

ProfileOur company name comes from “lacto,” the Latin word for milk. Lacto Japan is specialist food trading company focusing on imports of dairy ingredients, cheese and other dairy products. Leveraging our expertise in the dairy products business, we have expanded the Group’s business reach into importing meat products such as pork and ham, and into Asia, where we sell dairy products and expanding our cheese manufacturing business and sales of our own-brand cheese.

Helping to solve some of society’s challenges by contributing to the nutrition and health of people worldwide

Motohisa MiuraManaging Director

Australia1999~

Subsidiary

Thailand2013~

Subsidiary

2019~Representative office

Overseas Network

China2013~

Subsidiary

Main manufacturing and sales sites　 Main procurement sites　 Lacto Japan’s FactoriesNote: Date is year of establishment

3 Co r p o rate Pro f i l e 4

101,334

70,019

15,253

88,679

11,797

60,543

16,338

13,503

69,048

15,449

98,00096,549

115,440

17,574

85,290

12,576

116,794

19,308

85,206

12,28016,061

(JPY million)

Meat Products Business

Dairy Ingredients and Cheese Business

Asian Business and Other

FY11/15 FY11/16 FY11/17 FY11/18 FY11/19

Our Business

Lacto Japan sources, processes and sells products such as dairy ingredients, cheese and processed meat.We have procurement, manufacturing and sales sites in ten countries worldwide, allowing us to supply high-quality ingredients at the optimal time to customers in Japan and Asian markets.In Asia, we are also expanding our cheese manufacturing business and sales of our own-brand cheese.

Our core business is importing dairy ingredients, cheese and other dairy products, but we also import pork, ham and other meat products, drawing on our expertise in the dairy products business. We also operate in Asia, where we sell dairy products and manufacture cheese and sales of our own-brand cheese.

We have built a unique position in the market by focusing on imports of dairy products. As a result, we now handle 38% of all imports of dairy products to Japan.

Using our strengths as an independent company with nocorporate affiliations, we trade with diverse customersfrom various corporate groups. Our sourcing networkalso covers the world’s major milk-producing regions,allowing us to reliably supply products to a wide rangeof customers.

Lacto Japan is a specialist food trading company focused on dairy ingredients, cheese and processed meat, mainly operating in Japan and other markets in Asia.

Consolidated Net SalesKey Features of Lacto Japan

U.S.A.1998~

Subsidiary

Philippines2019~

Representative office

Singapore1998~

Subsidiary

Indonesia2012~

Subsidiary

Malaysia2010~

SubsidiaryItaly2001~

Agent

Netherlands2000~

Subsidiary

Specialist Food Trading Company Focused on Importing Dairy Products

1A Leading Company with38% of Japan’s Dairy Product Import Market

2A Global Business with a Diverse Supplier and Large Customer Base

3

62%

Other Companies

Our Share of Imported

Dairy Products FY11/18

Source: Lacto Japan

38%Lacto Japan

Consolidated Net Sales

JPY116.7billionFY11/19

73.0%Dairy Ingredients and Cheese Business

16.5%Asian Businessand Other

10.5%Meat Products Business

5 Co r p o rate Pro f i l e 6

Highly specialized food product experts providing unrivaled servicesOur staff provide customers with high added value by drawing on expertise built up over many years in the frontline of dairy and meat product distribution. Their expertise and know-how is also passed on to other employees through extensive human resources development and overseas training.

Human Resources

Technology Development

Proposals Sourcing Supplier Selection

Advanced Expertise and Information Gathering Capabilities

Customers(Food Product Manufacturers)

Suppliers

Our Strengths

Over many years, we have built a value chain where Lacto Japan links overseas suppliers of food ingredients to domestic companies that make food products. These suppliers and manufacturers are also experts in food products. By building up experience at the nexus of those two groups, we have accumulated information that has helped us enhance our own expertise in a wide range of fields related to food ingredients, from raw materials and finished products, to manufacturing processes, production equipment and systems. Based on strong partnerships with suppliers, we are working to further reinforce our technology development capabilities. Armed with this expertise and information, our staff are supplying customers with products and services of the highest quality.

Lacto Japan’s strengths come from its focus on food products and its market information gathering capabilities. These strengths are applied at every level of the value chain, allowing us to source and deliver the products customers really need.

Placing the highest priority on food safety management systems

▼When selecting suppliers, we look at areas such as product quality, technology, product development and the company’s ability to address customer needs. Our suppliers are also required to have adequate food safety management systems in place at all stages of the production process. We regularly visit suppliers’ facilities to check standards are being met in production processes and to carry out microbiological tests and other tests in food distribution channels as part of a rigorous assessment of quality control.

Overcoming the challenges of dairy ingredients distribution

▼Dairy ingredients are more perishable than other food products, leading to unique challenges in distribution channels. The customs regime for dairy ingredients is also complex, entailing rigorous testing and procedures for the customs clearance. Japan also has particularly stringent food standards that need to be met. Our expertise helps us to overcome these hurdles and our links with leading suppliers in the world’s main milk- producing regions mean we can ensure stable supplies of products and services that meet the needs of our customers.

Using technologies developed together with users and suppliers to reduce the burden on customers

▼Our customers in the food manufacturing sector are working to increase productivity, with more companies now outsourcing raw material processing and blending work to third parties. Based on technologies cultivated with the joint efforts of suppliers and users, we are taking some of the load of manufacturing and development off customers by processing the best food ingredients for them at the optimum time and place.

Offering products and solutions that preempt customers needs

▼Customer demands are becoming more sophisti-cated and diverse, with food manufacturing companies now requesting dispersed sourcing routes, food ingredients safety management systems and other requirements. To address these needs, Lacto Japan staff work closely with suppliers to develop optimum business model proposals. We visit suppliers’ plants with customers to check manufacturing processes and to conduct meticulous testing in food distribution channels to ensure rigorous quality control as part of a comprehensive response to customer needs.

Diagram of Dairy Ingredients

Milk Preparation, Confectionery, Ice Cream, Recombined Milk,Flavored Milk, Fermented Milk

Confectionery, Ice Cream

Milk Preparation, Confectionery, Ice Cream

Confectionery, Chocolate, Pharmaceutical Products

Confectionery, Ice Cream

Retail Butter, Confectionery, Processed Food Ingredients

Confectionery, Caramel

Bakery, Confectionery, Whey Beverages

Pharmaceutical Products, Sweetener

Bakery, Confectionery, Whey Beverages

Confectionery, Chocolate, Pharmaceutical Products

Natural and Processed Cheese

Paper Coating Material, Adhesive Material, Sausage

Bakery, Confectionery, Whey Beverages

Lactose

Lactose

Whey Powder

Confectionery, Chocolate, Pharmaceutical ProductsLactoseCrystallization

Spray Drying

Crystallization

Crystallization

RAW

MILK

Curd

Whey

Unsweetened Condensed Milk

Spray Drying

Cream

Skim Milk

Confectionery, Ice CreamSweetened Condensed Milk

Confectionery, ChocolateSweetened Milk Powder

Confectionery, ChocolateWhole Milk Powder

Casein Whey

Casein

Sweetened Condensed Skim Milk

Skim Milk Powder

Milk Protein Concentrate

Permeate

Butter Milk Powder

Butter

Butter Oil

Natural Cheese

Whey Cheese

Whey Powder

Lactose

Whey Protein Concentrate

Whey Permeate

Prepared Edible Fats

Sweetening

Spray Drying

Spray Drying

Spray Drying

Deproteinization & Demineralization

Sweetening

Sweetening

Coagulation & Whey-off

Heating & Evaporation

Churning

Heating & Evaporation

Maturation

Evaporation

Spray Drying

Ultrafiltration

Drinking Milk Milk, Recombined Milk, Flavored Milk, Fermented Milk

Pasteurization & Homogenization

Demineralization & Delactozation

Evaporation

Centrifugation

Coagulation &Whey-off

Co r p o rate Pro f i l e

Sales of globally procured dairy ingredients to Asia.Expand manufacturing and sales of our own-brand cheese.

We operate a network of affiliates in Malaysia, Thailand, Indonesia, Philippines and China, centered on our subsidiary in Singapore, Lacto Asia Pte Ltd. The Asian business supplies the same products as our dairy ingredients business, except in the Chinese market. We source ingredients from major milk-producing regions in EU, Oceania and U.S.A., and supply them to Japanese firms and local food product manufacturers in countries where we have overseas subsidiaries, or to customers in neighboring countries. Our manufacturing sites in Singapore and Thailand also use these ingredients to make and sell our own-brand cheese.

Asian Business and Other

Key Features of the Asian Business

▪ Provision of comprehensive services based on our expertise as a dairy ingredient trading company

▪ Cheese manufacturing and sales business focused on commercial-use customers

▪ Introducing new ways to use dairy products by expanding Japanese food culture into other parts of Asia

8

We procure safe and reliable dairy ingredients and cheese from overseas sources for supply to dairy and confectionery, other food, beverage and feed product manufacturers in Japan.

The Lacto Japan Group handles a wide array of ingredients derived from raw milk. In addition to supplying the products highlighted in the diagram on the opposite page, we also supply prepared dairy ingredients, which are processed products containing sugar, fats and other secondary ingredients. These prepared dairy ingredients are used in a wide range of food products, such as ice cream and other frozen desserts, milk beverages, and processed foods such as stew. We handled over 500 different products.

We source a range of meat products such as pork and ham, salami from suppliers overseas, which we sell to food manufacturers, wholesalers and retailers in Japan.

We handle products such as chilled pork, frozen pork, ham, salami and other meat products. We moved into the import and sale of these products in the fiscal year ended November 2005 in order to diversify our business portfolio. We mainly source products from overseas, with safety and reliability as our first priority. These products are sold to customers in Japan, such as ham and sausage manufacturers.

Key Features of the Dairy Ingredients Business

▪ Sourcing and sales network underpinned by a long track record in the dairy products industry

▪ Accurate market information gathered by overseas subsidiaries and personnel

▪ Timely analysis and provision of financial data such as forex and interest rates, which can change on a daily basis; regular distribution of technical information about dairy products in Japan and overseas

Key Features of the Meat Product Business

▪ Sales of high-quality pork to leading ham and sausage manufacturers using our long-standing partnership with major U.S. pork supplier Seaboard Foods

▪Sourcing of high-quality, well-known ham brands from major producing regions in Italy and Spain, supplied to wholesalers with distribution links to leading supermarkets and other customers

Dairy Ingredients and Cheese Business

Meat Products Business

Breakdown of Sales in the Dairy Ingredients Business

by Product

7

Business Overview

Using know-how accumulated from importing dairy ingredients, cheese and other dairy products, Lacto Japan has expanded its business reach into importing meat products such as pork and ham, and into sales of dairy products in Asia.

Leveraging our strengths as an independent food trading company

23%

14%

8%

1% 1% 4%

49%Cheese

Blending Products

MilkPowder

Butter

Lactose CaseinOther

Net Sales

JPY85.2billionFY11/19

9 Co r p o rate Pro f i l e 1 0

Overseas Network

Team One

Team Two

Team One

Team Two

Corporate Data / Overseas Network

1998 May Lacto Japan Co., Ltd. established in Asakusa-bashi, Taito-ku, TokyoAug Head office moved to Iwamoto-cho, Chiyoda-ku, Tokyo Oct Representative office opened in U.S.A. Nov Representative office opened in Singapore

1999 Jun Representative office opened in AustraliaSubsidiary Lacto Japan (Asia) Pte Ltd. established in Singapore

2000 Feb Representative office opened in the Netherlands Apr Appointed import agent for Agriculture & Livestock Industries Corporation (ALIC)

2003 Dec Subsidiary Foodtech Products Pte Ltd. established in Singapore 2004 Jun Head office moved to Nihonbashi Honcho, Chuo-ku, Tokyo 2005 Mar Began sourcing and selling meat products2008 Jul Lacto Asia Pte Ltd. established through the merger of two subsidiaries in Singapore

Nov Invested in U.S. company Kawaguchi Trading & Consulting Inc., becomes a subsidiary2009 Sep Subsidiary Lacto Oceania Pty. Ltd. established in Australia

Oct U.S. subsidiary Kawaguchi Trading & Consulting Inc. changes company name to Lacto USA Inc.2010 Sep Subsidiary Lacto Asia (M) Sdn. Bhd. established in Malaysia2012 Feb Joint venture PT. Pacific Lacto Jaya established in Indonesia2013 Aug Subsidiary Foodtech Products (Thailand) Co., Ltd. established in Thailand

Nov Subsidiary Lacto Shanghai Co., Ltd. established in China2015 Aug Listed on the Tokyo stock exchange

Dec Subsidiary Lacto Europe B.V. established in the Netherlands2017 Sep Stock listing moved from Second Section to First Section of Tokyo Stock Exchange2018 May Head office moved to Nihonbashi, Chuo-ku, Tokyo2019 Jan Representative office opened in Thailand

Sep Subsidiary Lacto Philippines Inc. established in the Philippines

Company Name Lacto Japan Co., Ltd.Address 22nd Floor Taiyo Life Nihonbashi Building, 2-11-2 Nihonbashi, Chuo-ku, Tokyo, 103-0027 JapanMain Switchboard TEL: +81-3-6281-9701 FAX: +81-3-6281-9748Directors Managing Director Motohisa Miura

Director Masayuki MaekawaDirector Koji SukinoOutside Director Yoshihiko SomaOutside Director Naofumi HaraStanding Auditor Kiichiro KamakuraOutside Auditor Toshio HogaOutside Auditor Hiroko Sakamoto

Established May 1998Capital JPY 1,124.00 millionNumber of Employees 285 (Consolidated)

Business Foreign and domestic trade in agricultural and livestock products and processed products, food additives, food processing machinery, pharmaceuticals, quasi-pharmaceuticals, liquor and other beverages, and food products; agent, broker and consultant services

Main Products Whole milk powder, skim milk powder, butter, cream, whey powder, WPC (whey protein concentrate), casein, caseinate, milk preparation (for ice cream, dairy beverages, chocolate, etc.), butter preparation (for margarine and ice cream), other prepared dairy mixtures (ingredients for milk powder for infant formula, prepared condensed milk, etc.), ice cream, lactose, processed egg products (dried eggs, frozen eggs, etc), processed meat products, fresh meat (for table use and for processing), cheeses, liquor and processed food products, processed food products and functional food ingredients, etc.

Overseas Offices Subsidiaries: Singapore, Malaysia, Thailand, Indonesia, China, U.S.A., Australia, The NetherlandsRepresentative Office: ThailandAgent: Italy

Company History

Organization Corporate Data November 30, 2019

General Meeting of Shareholders

Board of Directors

Board of Corporate Auditors

Managing Director

Internal Audit Office

Quality Management and Assessment

Dairy Ingredients Division 1

Skim Milk Powder, Whey Milk Powder, Butter, Whey Products, Infant Milk Ingredients, Lactose, Blending Products, Egg Powder

Products, Frozen Egg Products, Milk Powder for Feed, etc.

Corporate Staff Division

Overseas Business Office

Overseas Bases

Cheese Business Team

Accounting Department

Business Accounting Department

Finance Department

Human Resources & General Affairs Department

Corporate Strategy & Planning Department

Meat Business Team

Functional Food Ingredients Team

Singapore

Lacto Asia Pte Ltd. Subsidiary

URL: http://www.lacto.com.sg

Trading Division8 Eu Tong Sen Street #13-89 (Office Tower 1) The Central Singapore 059818TEL: +65-6224-1998FAX: +65-6224-1755MAIL: lacto@lacto-asia.com

Cheese Division171 Kampong Ampat #03-13/14 KA FoodLink Singapore 368330TEL: +65-6286-1360FAX: +65-6286-5034MAIL: enquiry@ftcheese.com

Malaysia

Lacto Asia (M) Sdn. Bhd. Subsidiary

No.33 Jalan PJU 3/42, Sunway Damansara Technology Park,47810 Petaling Jaya, Selangor Darul Ehsan, MalaysiaTEL: +60-3-7885-9925/9926FAX: +60-3-7885-9927MAIL: enquiry@ftcheese.com

Philippines

Lacto Philippines Inc. Subsidiary

4/F Unit 4 C&D Commerce and Industry Plaza Building, Mckinley Town Center, Park Avenue, Pinagsama, Taguig City, NCR, Fourth District, PhilippinesTEL: +63-2-8248-8905FAX: +63-2-8683-6201

Thailand

Foodtech Products (Thailand) Co., Ltd. Subsidiary

No.196 Moo 1, Tambol Baanlane, Amphur Bangpa-In, Pranakornsriayudhaya Province, ThailandTEL: +66 3 535 1510FAX: +66 3 535 1513MAIL: FTT_enquiry@ftcheese.com

Lacto Japan Co.,Ltd. Thailand Representive Office Representative Office

Level 32, Interchange 21, 399 Sukhumvit Road, North Klongtoey, Wattana, Bangkok 10110, Thailand

Indonesia

PT. Pacific Lacto Jaya Subsidiary

Jl. Raya Serang KM 12, Cikupa Industrial Complex Block A10Desa Sukadamai Kecamatan Cikupa Kabupaten TangerangBanten 15710 IndonesiaTEL: +62-21-5940-7389

China

Lacto Shanghai Co., Ltd. Subsidiary

Room No.1410, XinYin Building, No.888 Yishan Road,Shanghai, 200233, ChinaTEL: +86-21-64085660FAX: +86-21-64033752

U.S.A.

Lacto USA Inc. Subsidiary

3655 Torrance Blvd. Suite 470 Torrance CA, 90503 U.S.A.TEL: +1-310-316-6250FAX: +1-310-316-8019MAIL: latco@lacto-usa.com

Australia

Lacto Oceania Pty. Ltd. Subsidiary

Level 3, 50 Market Street, Melbourne VIC 3000 AustraliaTEL: +61-3-9620-0768FAX: +61-3-9620-0769MAIL: melbourne@lactojapan.com

The Netherlands

at Lacto Europe B.V. Subsidiary

World Trade CenterA-Tower 10th FloorStrawinskylaan 1009,1077XX Amsterdam,The NetherlandsTEL: +31(0)20 238 2520MAIL: lacto@lacto-europe.com

Italy

ak Keiichiro Abe Agent

Via Osoppo 7, Milano 20148 ItalyTEL: +39-3485177121MAIL: ljmilano@lactojapan.com

Organization / Company History

Dairy Ingredients Division 2Skim Milk Powder, Whole Milk Powder, Butter, Blending Products,

Prepared Edible Fats Whey Products, Milk Protein Products, Local Dairy Products, Food Stabilizer, etc.

Cheese Business Division

Various Cheeses

Meat and Ingredients Division

Business Development Department

Processed Meat Products,Meat Products

Functional Food Ingredients, etc.

Investor Relations & Public Relations Department

ak

at