Fiscal Year Ending March 2027 Second Quarter (Interim) Financial Summary [Japanese GAAP] (Non-consolidated)

Overview of Performance

Sales during this interim period increased substantially year-over-year, with the regenerative medicine products business contributing particularly strongly. Total net sales were approximately 1,499 million yen, operating income returned to profitability, ordinary income was approximately 7.357 million yen, and interim net income was approximately 4.097 million yen. While sales of regenerative medicine products expanded significantly, contract regenerative medicine services declined and the lab site business showed a slight increase. Financial condition remains solid with total assets of 5,770 million yen and an equity ratio maintained at a high level of 88.3%. There are no changes to the assumptions underlying the earnings forecasts.

Segment Trends and Outlook

The regenerative medicine products business was driven by five core areas—autologous cultured epidermis, cartilage, corneal epithelium, oral mucosal epithelium, and melanocyte-containing epidermis—which boosted orders and sales. The contract regenerative medicine business experienced lower revenue as educational and know-how provision projects from the prior year tapered off, but demand for late-stage clinical trial support and regulatory affairs assistance is expected to expand. The lab site business is building a foundation for stable growth, including European expansion. Going forward, the company aims to grow sales through the dissemination of new pipeline products and partnership activities.