Strengthening European sales and technology development through the acquisition of a UK contact lens manufacturer

「This share acquisition was intended to expand coverage of specialty lenses through SL, which is based in Scotland and has extensive experience and a strong track record in customized specialty lenses tailored to each individual's eye shape, against the backdrop of the growing adoption of orthokeratology in the UK and Ireland. In addition, the aim was to create synergies for the group through cross-selling UV's specialty lenses and our disposable contact lenses via SL's sales network in Scotland and Ireland, where our presence had previously been limited.」

「This share acquisition was intended to expand coverage of specialty lenses through SL, which is based in Scotland and has extensive experience and a strong track record in customized specialty lenses tailored to each individual's eye shape, against the backdrop of the growing adoption of orthokeratology in the UK and Ireland. In addition, the aim was to create synergies for the group through cross-selling UV's specialty lenses and our disposable contact lenses via SL's sales network in Scotland and Ireland, where our presence had previously been limited. The acquisition price, paid in cash, was ¥465.979 million (£2,404,187.50).」

「At our consolidated subsidiary Contact Lens Precision Laboratories Ltd. in the UK, operating profitability continued to deteriorate and impairment indicators emerged due to a decline in asset profitability and other factors. Accordingly, we recognized an impairment loss of ¥424 million on the intangible assets and goodwill held by us.」

「Revenue reached ¥31,792 million, up 7.8% year on year, exceeding ¥30 billion for the first time in the Group. This reflected growth in sales, centered on the core contact lens business, and the effects of the European acquisition, despite a longer-than-expected decline in pent-up demand following the consumption tax rate increase in Japan and a drop in domestic and overseas demand due to the spread of COVID-19.」

「Revenue progressed steadily, driven mainly by core contact lens sales, due in part to front-loaded demand ahead of the consumption tax rate increase and the contribution from the European company acquired in the fiscal year ended March 2019, reaching ¥16,761 million, up 15.0% year on year.」

「Revenue generally progressed in line with the initial plan, despite weakness in some overseas sales, including China, due in part to the contribution from the European company acquired in the fiscal year ended March 2019, reaching ¥7,680 million, up 7.7% year on year.」

「Our current research and development is being conducted mainly at the Konosu Research Institute in Saitama Prefecture and at Contact Lens Precision Laboratories Ltd. in the UK, hereinafter referred to as CLPL.」

「Upon finalization of the provisional accounting treatment, intangible assets and deferred tax liabilities as of the acquisition date increased by ¥233,678 thousand and ¥71,552 thousand, respectively. As a result, provisionally calculated goodwill decreased by ¥162,126 thousand, from ¥670,977 thousand to ¥508,851 thousand.」

「As we acquired all shares of Contact Lens Precision Laboratories Ltd on 9 April 2018 and made it a new subsidiary, the company and its wholly owned subsidiary Ultravision International Ltd were included in the scope of consolidation from the first quarter of the fiscal year.」

「On 9 April 2018, we entered into a share transfer agreement for the shares of Contact Lens Precision Laboratories Ltd and acquired all of its shares on the same day.」