Strengthening Production and Development Capabilities

「Building 4, completed in January 2026, began operations in March. As the challenges of securing personnel intensify, the Group is proceeding with the construction of production lines to achieve further labor savings. Under the first-phase plan, maximum production capacity is expected to rise from 65 million lenses per month before Building 4 began operations to 79 million in the fiscal year ending March 2027, and to 89.5 million per month in the fiscal year ending March 2028 after the second-phase plan.」

「At the Konosu Research Institute, the completion of the first phase of Building 4, scheduled to begin production in March 2026, is expected to significantly raise maximum monthly production capacity from 65 million to 79 million lenses (121% of the previous level). Preparations are also underway for the second phase of Building 4, which is expected to increase production capacity to a maximum of 89.5 million lenses per month (1.074 billion lenses per year) upon completion.」

「Specifically, maximum monthly production at the Konosu Research Institute was 58 million lenses at the end of the fiscal year ended March 2024, but rose to 65 million at the end of the fiscal year ended March 2025 following the start of operations at the annex to Building 2. The first-phase plan for Building 4 calls for adding 14 million lenses, which is expected to raise maximum monthly production to 79 million upon completion.」

「The first-phase plan for Building 4, which began construction in November 2024 and is scheduled to begin operations in the fiscal year ending March 2027, originally called for an increase of 10 million lenses in monthly production. To establish a stable product supply and implement the Company's future growth strategy, the plan has now been expanded, raising the planned monthly production increase to 14 million lenses. In addition, the total planned investment has been increased from ¥13.1 billion to ¥17.3 billion. Upon completion of the first-phase plan for Building 4, maximum monthly production is expected to rise to 79 million lenses. Upon completion of the second-phase plan for Building 4, equipment capacity is expected to expand to total monthly production of 89 million lenses.」

「At a meeting of the Board of Directors held on 7 February 2024, the Company resolved to construct a contact lens manufacturing plant, Building 4 of the Konosu Research Institute, and install manufacturing equipment.」

「At the Konosu Research Institute, the Group is proceeding with plans to raise maximum planned monthly production from the current 53 million lenses to 58 million in the fiscal year ending March 2024 through the renewal of aging production equipment in Building 1 and the addition of a new line in Building 3, and from 58 million to 65 million lenses in the fiscal year ending March 2025 through the construction of an annex to Building 2. As a result of strengthening the production system, monthly production has reached a new record, and further expansion of production capacity is expected from the third quarter onward as the plan progresses.」

「The Group plans to increase production capacity at the Konosu Research Institute, its main production base, including by adding production equipment. For the fiscal year ending March 2024, it plans to raise maximum planned monthly production from the current 53 million lenses to 58 million through the renewal of aging production equipment in Building 1 and the addition of a new line in Building 3. For the fiscal year ending March 2025, it plans to raise this from 58 million to 64 million lenses through the extension of Building 2 and construction of an annex.」

「The Group's total capital investment during the fiscal year was ¥1,199 million. The main investment was the installation of manufacturing equipment in Building 3 of the Konosu Research Institute for the contact lens and lens care products business.」

「Cash used in investing activities was ¥638 million (an outflow of ¥703 million in the same period of the previous year). The main factor was ¥650 million in expenditure on the acquisition of property, plant and equipment associated with the installation of equipment at the Konosu Research Institute to increase production of "SEED 1daySilfa (Silfa)."」

「The Group's total capital investment during the fiscal year was ¥2,632 million. The main investment was the installation of manufacturing equipment in Building 3 of the Konosu Research Institute for the contact lens and lens care products business.」

「Cash used in investing activities was ¥562 million (an outflow of ¥1,948 million in the same period of the previous year). The main factors were ¥410 million in expenditure on the acquisition of shares in 株式会社ユニバーサルビュー and ¥838 million in expenditure on the acquisition of property, plant and equipment associated with the expansion of the manufacturing area and installation of equipment at the Konosu Research Institute.」

「Cash used in investing activities was ¥703 million (an outflow of ¥1,638 million in the same period of the previous year). The main factors were ¥410 million in expenditure on the acquisition of shares in 株式会社ユニバーサルビュー and ¥692 million in expenditure on the acquisition of property, plant and equipment associated with the expansion of the manufacturing area and installation of equipment at the Konosu Research Institute.」

「Cash used in investing activities was ¥675 million (an outflow of ¥477 million in the same period of the previous year). This was mainly due to ¥410 million in expenditure on the acquisition of shares in 株式会社ユニバーサルビュー, which involved a change in the scope of consolidation, and ¥292 million in expenditure on the acquisition of property, plant and equipment associated with the expansion of the manufacturing area and installation of equipment at the Konosu Research Institute.」

「Cash used in investing activities was ¥1,948 million (an outflow of ¥2,383 million in the same period of the previous year). This was mainly due to ¥1,917 million in expenditure on the acquisition of property, plant and equipment associated with the completion of the warehouse building and installation of equipment at the Konosu Research Institute.」

「The Group will also construct new materials-handling and warehouse facilities at the Konosu Research Institute, expand the production areas of the 3 existing production buildings to increase production capacity, and introduce a production system designed to support high-mix, low-volume production.」

「During the first 9 months of the fiscal year, the Group increased staffing, primarily in the manufacturing divisions for contact lenses and lens care products, to expand production lines for disposable contact lenses and strengthen sales capabilities. As a result, the Group had 1,002 employees at the end of the third quarter (977 at the end of the previous fiscal year).」

「During the first 6 months of the fiscal year, the Group increased staffing, primarily in the manufacturing divisions for contact lenses and lens care products, to expand production lines for disposable contact lenses and strengthen sales capabilities. As a result, the Group had 1,021 employees at the end of the second quarter (977 at the end of the previous fiscal year).」

「Total assets at the end of the first quarter were ¥41,915 million, an increase of ¥1,969 million from the end of the previous fiscal year. The main factors were an increase in property, plant and equipment associated with the expansion of the production area and installation of equipment in Building 3 of the Konosu Research Institute, and an increase in inventories for the launch of new products.」

「The Group's total capital investment during the fiscal year was ¥2,052 million. The main investments were the installation of manufacturing equipment in Building 3 of the Konosu Research Institute for the contact lens and lens care products business, and the replacement of manufacturing equipment in Building 1 of the Konosu Research Institute.」

「This was mainly due to the acquisition of ¥1,189 million in property, plant and equipment associated with the installation of new equipment at the Konosu Research Institute.」

「During the first 6 months of the fiscal year, the Group increased staffing, primarily in the manufacturing divisions for contact lenses and lens care products, to expand production lines for disposable contact lenses and strengthen sales capabilities. In addition, following the acquisition of all shares of Contact Lens Precision Laboratories Ltd on 9 April 2018 and its addition as a subsidiary, the 53 employees of that company and its wholly owned subsidiary, Ultravision International Ltd, were included in the consolidated scope. As a result, the Group had 874 employees at the end of the second quarter (750 at the end of the previous fiscal year).」

「This was mainly due to the acquisition of ¥428 million in property, plant and equipment in connection with the opening of childcare facilities and the installation of equipment at the Konosu Research Institute.」

「During the first 9 months of the fiscal year, the Group increased staffing, primarily in the manufacturing divisions for contact lenses and lens care products, to expand production lines for disposable contact lenses and strengthen sales capabilities. As a result, the Group had 762 employees at the end of the third quarter (690 at the end of the previous fiscal year).」

「During the first 6 months of the fiscal year, the Group increased staffing, primarily in the manufacturing divisions for contact lenses and lens care products, to expand production lines for disposable contact lenses and strengthen sales capabilities. As a result, the Group had 764 employees at the end of the second quarter (690 at the end of the previous fiscal year).」

「Further expansion of production capacity through the construction of a new production building (Building 3), and stronger capabilities for handling high-mix, low-volume production」

「During the first 9 months of the fiscal year, the Group increased staffing, primarily in the manufacturing divisions for contact lenses and lens care products, to expand production lines for disposable contact lenses and strengthen sales capabilities. As a result, the Group had 669 employees at the end of the third quarter (621 at the end of the previous fiscal year).」

「During the first 6 months of the fiscal year, the Group increased staffing, primarily in the manufacturing divisions for contact lenses and lens care products, to expand production lines for disposable contact lenses and strengthen sales capabilities. As a result, the Group had 666 employees at the end of the second quarter (621 at the end of the previous fiscal year).」

「We are actively investing management resources in the four highest-priority initiatives, namely sales strategy, product strategy, strengthening production and development capabilities, and strengthening the management structure, with the aim of responding to changing markets and strengthening future competitiveness.」

「We are actively investing management resources in "sales strategy," "product strategy," "strengthening production and development capabilities," and "strengthening the management structure" as our highest-priority initiatives, with the aim of translating them into responses to changing markets and stronger competitiveness going forward.」