Aggressive Business Investment to Achieve High Medium- to Long-Term Growth and Enhance Corporate Value

「Using these cash resources, we plan to invest in growth initiatives, including more than ¥5 billion in the Eggshell Membrane Biomanufacturing Project, approximately ¥12.5 billion in the construction of a new pharmaceutical plant, and GABA development aimed at obtaining FDA GRAS certification in the United States, as well as approximately ¥10 billion in M&A targeting discontinuous growth.」

「In investment in new products, the company achieved a significant turnaround during the second quarter consolidated accounting period, with the number of new customers acquired increasing by more than 65,000 from the end of the previous quarter. This resulted from a sharp increase in investment, up 19.6% from the end of the previous quarter, to capture opportunities to improve customer acquisition efficiency, particularly for new pharmaceutical and quasi-drug products.」

「To implement these initiatives, the company will launch approximately ¥30 billion of challenging investments over the next 5 years.」

「As a result of these initiatives, the Group’s R&D expenses were ¥705 million, up 17.6% year on year. While strengthening advertising for new products, the company is also optimizing total advertising expenses, which amounted to ¥24,397 million for the third quarter cumulative consolidated period, down 21.7% year on year.」

「To become a leading company capable of meeting these healthcare needs, the company has established “New Value Creation: the 1K Project” as the theme of Medium-Term Management Plan 2026. To achieve this, it focused on R&D investment, new product development, the development of sales channels and strengthening its organizational structure. As a result of these initiatives, the Group’s R&D expenses were ¥482 million, up 16.6% year on year. While strengthening advertising for new products, the company is also optimizing total advertising expenses, which amounted to ¥16,990 million for the second quarter cumulative consolidated period, down 25.6% year on year.」

「To meet these needs, the company established “New Value Creation: the 1K Project” as the theme of Medium-Term Management Plan 2026. To achieve this, it focused on R&D investment, new product development, the development of sales channels and strengthening its organizational structure. As a result of these initiatives, the Group’s R&D expenses were ¥277 million, up 34.3% year on year. While strengthening advertising for new products, the company is also optimizing total advertising expenses, which amounted to ¥8,813 million for the first quarter cumulative consolidated period, down 31.1% year on year.」

「The company has worked to optimize advertising investment since the first half. In addition to reducing advertising expenses through rigorous KPI management, it is pursuing revenue generation through methods other than advertising, including reducing the churn rate by improving customer service and improving the quality of advertising content.」

「To meet these needs, the Group established “New Value Creation: the 1K Project” as the theme of Medium-Term Management Plan 2026. To achieve this, it focused on R&D investment, including the active development of new materials and increased hiring of researchers, as well as advertising investment in new and core products. As a result of these initiatives, the Group’s R&D expenses were ¥413 million, up 33.2% year on year, while advertising expenses were ¥22,835 million, up 46.2%.」

「As a result of these initiatives, research and development expenses rose 42.2% year on year to ¥206 million, while advertising expenses rose 90.2% to ¥12,800 million.」

「As a result of these initiatives, the Group's research and development expenses were ¥766 million, up 46.8% from the previous fiscal year, and advertising expenses were ¥35,748 million, up 43.8%.」

「To meet these needs and achieve the theme of the “Creating New Value 1K Project” under Medium-Term Management Plan 2026, the Company focused on research and development investment, including developing new materials and strengthening the recruitment of researchers, advertising investment in new and core products, promoting M&A and building alliances. As a result, the Group's research and development expenses were ¥475 million, up 34.1% year on year, and advertising expenses were ¥26,158 million, up 35.1%.」

「To meet these needs and achieve the theme of the “Creating New Value 1K Project” under Medium-Term Management Plan 2026, the Company focused on research and development investment, including developing new materials and strengthening the recruitment of researchers, advertising investment in new and core products, promoting M&A and building alliances. As a result, the Group's research and development expenses were ¥310 million, up 47.1% year on year, and advertising expenses were ¥15,614 million, up 18.7%.」

「To meet these needs, the Group actively invested in research and development for its functional materials and biomedical businesses and stepped up hiring of research and development personnel in order to achieve the theme of the medium-term management plan, “Creating New Value.” In the mail-order business, it continued to invest at a high level in existing products while maintaining efficiency, and made aggressive investments to expand sales of new products. As a result of these investments, research and development expenses were ¥145 million, up 48.5% year on year, while advertising expenses reached a quarterly record of ¥6,730 million, up 1.7%.」

「Under these circumstances, the Group continued to invest aggressively in each business, with advertising expenses of ¥24,860 million, up 237.0% from the previous fiscal year, and research and development expenses of ¥522 million, up 19.3%.」

「During the third quarter of the current consolidated cumulative period, the Company invested ¥19,365 million in advertising expenses (¥6,093 million in the same period of the previous fiscal year) and ¥354 million in research and development expenses (¥329 million in the same period of the previous fiscal year).」

「During the second quarter of the current consolidated cumulative period, the Company invested ¥13,157 million in advertising expenses (¥4,752 million in the same period of the previous fiscal year) and ¥210 million in research and development expenses (¥228 million in the same period of the previous fiscal year).」

「The Group continued to invest aggressively in each business, with advertising expenses of ¥6,618 million, up 188.2% year on year, and research and development expenses of ¥97 million, up 26.5%. In particular, in the mail-order business, the Company brought forward aggressive investment after new customer acquisition progressed with investment efficiency substantially exceeding its initial assumptions.」

「Even under these circumstances, the Group successfully achieved results by continuing to invest aggressively in each business, generating record-high quarterly consolidated revenue and profit. Advertising expenses during the third quarter of the current consolidated cumulative period were ¥6,093 million (¥4,314 million in the same period of the previous fiscal year).」

「Even under these circumstances, the Group continues to make extremely aggressive business investments aimed at achieving high growth over the medium to long term and enhancing corporate value.」