FANCL REPORT 2022
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798The FANCL Group handles every aspect of its business, from research and development to production and sales, on its own, and has grown as a company under an integrated manufacturing and sales framework business model. As a research and development manufacturer with a direct sales department, the Company creates products that reflect the needs and voices of its customers.Major Achievements in FY Mar/2022The FANCL Research Institute’s Application RangeThe Research Institute is responsible for the search for and development of new ingredients and product materials, foundational research conducted from a medical perspective, and the development of products needed by its customers. In short, The Research Institute forms the core of FANCL’s research and development effort.The Research Center’s Application RangeResearch / PlanningCustomers’ needs and voicesNumber of patent filingsDomestic: 65, Foreign:554Number of academic presentations15Number of research publications30Partners in joint researchResearch and development expensesManufacturingResearch FieldsSales*As of April 202221322Product development based on cosmetics commercialization planning and applied research into new technology development accompanying product development, etc.Basic scientific research regarding beauty science, and exploratory research, evaluation, and development of functional materials based on the research results thereofProduct development based on health foods commercialization planning and applied research into new technology development accompanying product development, etc.Basic scientific research regarding health science, and exploratory research, evaluation, and development of functional materials based on the research results thereofEvaluation of safety and quality for developmental cosmetics and health foods, and research relating to evaluation technology22P22-24Research / PlanningNumber of products developedFANCL CosmeticsNutritional SupplementsATTENIR CosmeticsHatsuga genmai, Kale Juice, and other food productsCosmetics Research InstituteBeauty Science Research CenterFunctional Foods Research InstituteHealth Science Research CenterQuality & Safety Research CenterP25¥3,492 millionP26-27Number of Researchers and Professional QualificationsResearchers3812Ph.Ds.28PharmacistsRegistered dieticians and dieticiansFANCL engages in basic technological and product development research on cosmetics, nutritional supplements, Hatsuga genmai(germinated brown rice), and Kale Juice in an effort to promote safety and functionality research with a focus on peace of mind and safety as well as the development of products based on scientific evidence.FANCL’s wide range of research and development activities, including joint research with many domestic and international research institutions and participation in industry-government-academia collaboration projects, is constantly evolving.Furthermore, FANCL is promoting joint research projects in multiple research fields, including cosmetics materials development, brain function research, and intestinal environment research, with the R&D Division of Kirin Holdings Company, Limited (Kirin) in accordance with the capital and business alliance agreement concluded with that company in August 2019.Promote research on solutions to eliminate new “negatives”Sustainable integrated manufacturing and sales framework business model that achieves “Upholding Quality”FANCL’s Business Model

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