Message from the President

To our shareholders and investors, we extend our heartfelt gratitude for your continued trust and support in our business activities.

As of June 19, 2025, our company has transitioned to a new executive structure. Many of our founding members have stepped down, and we have moved to a new executive team. The new executives are well-versed in our company's operations, particularly in the field of cell-based products, and have demonstrated strong leadership. They will carry forward our vision of becoming a company that continues to grow as long as humanity exists and our vision of Creating a Future for Regenerative Medicine. They will ensure steady business growth and promote stable profitability.

For the fiscal year ending March 2025, we have revised our initial performance outlook downward. However, we have made steady progress in our three business divisions: regenerative medical products, regenerative medicine contract services, and research and development support division.

In the regenerative medical products division, the transplantation of our autologous cultured epidermis containing melanocytes, "JACEMIN," which was included in insurance coverage last October, has begun. Regenerative medical products need to be nurtured in collaboration with medical institutions after their launch. We will work with medical institutions to accumulate solid evidence of the efficacy and safety of "JACEMIN." Our autologous cultured cartilage, "JACC," received an additional indication for osteoarthritis in May 2025. We will communicate appropriately with relevant authorities to aim for earlier insurance coverage to prevent loss of treatment opportunities for patients.

In the regenerative medicine contract services business, our platform, which includes the experience and expertise gained from the development to post-launch response of five autologous regenerative medical products, has been increasingly recognized by academia and venture companies.

In the research and development support division, the promotion of alternative methods to animal testing from the perspective of animal welfare has been gaining momentum in recent years. This trend has provided a tailwind for the adoption of our LabCyte products as alternatives to animal testing overseas. We have also started developing a new product, an intestinal epithelial model derived from iPS cells.

Our company will continue to work as one to ensure that these three business divisions lead to tangible results. We sincerely ask for your continued support as shareholders and investors.