Medium-Term Management Plan

We hereby present the Company’s management targets through the fiscal year ending March 31, 2028.
This plan has been formulated based on the business environment as of March 2025. To reflect business progress following the Company’s listing and to enhance the plan’s effectiveness, it is scheduled to be updated in conjunction with the announcement of the financial results for the fiscal year ending March 31, 2026, planned for May 2026.

Vision for the Medium- to Long-Term Management Plan

The Company has set forth a medium- to long-term vision of “pursuing areas that are difficult to replicate in fertility treatment products and establishing a strong global presence.”

As a company that stands alongside the beginning of life, the Company aims to continue being chosen by medical professionals around the world by leveraging Japan-originated technological capabilities and meticulous responsiveness. To achieve this goal, the Company will pursue the following vision based on three pillars: “establishing trust in the market,” “next-generation business operations,” and “an organizational culture in which each individual can thrive.”

1. Establishing Trust in the Market

• Building a high level of reliability supported by Japanese-made quality.
• Enhancing customer satisfaction through prompt and attentive responses tailored to the diverse needs of each customer.
• Maintaining unrivaled brand strength in the field of cryopreservation for fertility treatment.

2. Next-Generation Business Operations

• Expanding the Kitazato brand further globally to bring smiles to a greater number of users.
• Improving production efficiency to enable the manufacture and distribution of greater volumes of products.
• Developing new services leveraging cryopreservation technologies.

3. An Organizational Culture in Which Each Individual Can Thrive

• Creating an organization where each individual approaches work with autonomy and initiative.
• Fostering a workplace where employees’ efforts are evaluated objectively and provide a strong sense of fulfillment.
• Establishing an environment in which everyone can work comfortably and sustainably.

Target Indicators Toward Fiscal Year 2028

To achieve this plan, the Company aims to balance growth with high profitability by targeting the following management indicators.

Net Sales Growth Rate

Sustained growth with an average annual net sales growth rate of 4% or higher. While maintaining its domestic market share, the Company will steadily increase net sales by capturing demand in the expanding global market.

Overseas Sales Ratio

Expanding the overseas sales ratio to 70%. By accelerating the penetration of the Kitazato brand and promoting adoption by medical institutions worldwide, the Company aims to further globalize its sales composition.

Operating Profit Margin
Maintaining and enhancing a high operating profit margin of 50% or higher. The Company will pursue higher added value through proprietary technologies that are difficult to replicate, alongside improvements in production efficiency. In line with net sales growth, the Company aims to gradually improve profit margins and establish a robust and resilient management structure.

Three Strategic Pillars

1. Maintaining and Expanding Share in the Domestic Market

The Company will strengthen relationships with existing customers and expand adoption at new medical facilities by leveraging its strengths in implementation support and technical assistance rooted in on-site clinical operations, as well as its stable supply and quality documentation under the Japanese-made brand. Through meticulous customization and quality assurance based on standardization and multiple inspection processes, the Company will encourage continued use in its core areas—particularly cryopreservation-related products—and further enhance its presence in the domestic market.

2. Further Expansion of Overseas Markets

With Europe, the United States, China, and India designated as priority regions, the Company will sequentially advance local regulatory approvals and certifications, expand its product lineup horizontally, and strengthen collaboration with partners, including distributors, academic societies, and training organizations.
Through direct sales, optimization of distribution channels, and differentiation in quality and support, the Company aims to acquire new customers and increase the adoption of its products by existing customers, thereby achieving sustainable overseas growth.

3. Enhancing Product Supply Capacity Through Expansion of Production and R&D Facilities

Centered on the new headquarters facility, the Company will promote phased automation, enhanced traceability, and process optimization to achieve improved reproducibility, higher yields, and stable supply.
By strengthening a production and R&D structure capable of handling high-mix, low-volume manufacturing and shifting from OEM to in-house production, the Company will accelerate profitability improvements and the timely market introduction of new products.

Strengthening the Management Foundation and Allocation of Growth Investments

Leveraging stable cash flows generated by high profitability, the Company will allocate capital in a balanced manner across three areas: “effective investments” for future growth, “strengthening the management foundation” to enhance resilience to change, and “shareholder returns” to sustainably enhance corporate value.
Specifically, while accelerating growth through global market expansion and agile M&A initiatives, The Company will strengthen its management foundation by enhancing employee training and recruiting diverse talent to support these initiatives.
In addition, with a focus on capital efficiency, the Company will continue to provide stable dividends, targeting a consolidated payout ratio of 40% or higher, thereby meeting shareholder expectations and promoting a robust management approach that balances both offense and defense.