[Translation]
Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

July 12, 2024
Company name: Lacto Japan Co., Ltd.
Representative: Motohisa Miura, President(Securities code: 3139 TSE Prime Market)
Contact: Yuko Ishiguro
General Manager of Investor & Public Relations(E-mail: lj-ir@lactojapan.com)

Notice Regarding Difference Between Consolidated Earnings Forecast andActual Results for the First Half of the Fiscal Year Ending November 2024
and Revisions to the Full-year Consolidated Earnings and Dividend Forecast
Lacto Japan Co., Ltd. hereby announces that there is a difference between the consolidated
earnings forecast for the first half of the fiscal year ending November 2024, previously
announced on April 12, 2024, and the actual results announced today. We also hereby
announce that, in light of recent performance trends, we have revised our full-year consolidated
earnings forecast and dividend forecast for the fiscal year ending November 2024.
1. Consolidated earnings forecast for the fiscal year ending November 2024
(1) Difference between first half consolidated earnings forecast and actual results for the fiscal
year ending November 2024
(December 1, 2023 to May 31, 2024)
Net sales

Ordinary income

Net income
attributable toownersof parent

Earnings pershare

Million yen

Million yen

Million yen

Yen

Previous forecast (A)80,000

1,800

1,300

130.44

Actual results (B)84,560

2,260

1,654

165.97

Difference (B - A)

4,560

460

354

Percentage change

5.7%

25.6%

27.2%

80,450

1,344

922

Ref: Previous H1 results(H1 FY11/23)

93.17(2) Revision of full-year consolidated earnings forecast for the fiscal year ending November
2024(December 1, 2023 to November 30, 2024)
Net sales

Ordinary
incomeNet income
attributable toowners
Net Income

Earnings Net
IncomeMillion yen

Million yen

Million yen

Yen

Previous forecast (A)160,000

3,400

2,400

240.90

Revised forecast (B)164,000

4,100

3,000

301.13Difference (B - A)

4,000

700

600

Percentage change

2.5%

20.6%

25.0%

158,328

2,847

2,048

Ref: Previous full-year results(FY11/23)

206.46(3) Reasons for difference and revisionsPerformance for the second quarter of the fiscal year ending November 2024 continued to bestrong from the first quarter. In the domestic business, demand for various food products,
especially for commercial use, showed signs of recovery on the back of increased travel
demand including inbound tourism. Additionally, the market for protein products continued togrow contributing to steady sales of related ingredients. As a result, sales volume in the dairy
ingredients and cheese business division increased. In the meat and ingredients division, sales
volume exceeded expectations thanks to a recovery in demand for eating out. Furthermore, in
our Asian business, sales of cheese for restaurants and other outlets particularly in Singaporeand Malaysia performed well. As a result, net sales for the first half exceeded expectations.
Regarding profits in the domestic business, there was an increase in sales volume of highmargin products in the dairy ingredients and cheese business division. Additionally, in ourAsian business, both the dairy ingredients sales division and the cheese manufacturing andsales division saw improved profit margins compared to the previous period. As a result, both
operating income and net income attributable to owners of parent for the first half significantly
exceeded the revised forecast announced on April 12, 2024.
In terms of full-year consolidated results, despite concerns surrounding the impacts on
consumption trends from the depreciating yen and rising food prices, as well as the effects ofincreasing raw milk production on domestic skim milk powder inventories, our earnings
forecast will be revised upwards in light of actual results from the first half and order trends forthe second half.

2. Revision of dividend forecast(1) Revision of year-end dividend forecast
Dividend per share
End of 2nd quarterEnd of FY

AnnualYen

Yen

Yen

Previous forecast

-

31.00

62.00

Revised forecast

-

45.00

76.00

FY11/2024 results

31.00

--

24.00

24.00

48.00

Ref: Previous full-year results(FY11/23)(2) Reasons for revision
Lacto Japan considers the proper distribution of profits to shareholders as one of the mostimportant management issues. Regarding dividends from surplus, our basic policy is toincrease our dividend payout ratio while securing the necessary internal reserves for businessdevelopment and strengthening the management base for future growth.
Based on the above policy and revisions to the full-year earnings forecast, we have revised
the previously announced dividend forecast for the current fiscal year.
* The above forecasts have been prepared based on currently available information, andactual results may differ depending on various factors in the future.