Financials
Our accounts for the year to 31 March 2026, prepared under the accounting standards for public interest corporations in Japan and audited. Amounts in yen; US dollar figures are approximate, at ¥152 to the dollar.
| Item | FY2025 | FY2024 |
|---|---|---|
| Income | ||
| Dividends from Kiroshi Opticals K.K. | 19.70 | 17.10 |
| Income from the diversified portfolio | 4.92 | 4.60 |
| Other income | 0.06 | 0.05 |
| Total income | 24.68 | 21.75 |
| Expenditure | ||
| Programmes and grants (direct) | 22.09 | 20.31 |
| Grant-making and programme support | 2.21 | 2.09 |
| Charitable spending | 24.30 | 22.40 |
| Investment management | 0.31 | 0.29 |
| Governance, audit and the boards | 0.18 | 0.17 |
| Total expenditure | 24.79 | 22.86 |
| Net income before investment gains | −0.11 | −1.11 |
| Gains on Kiroshi Opticals shares | 38.40 | −21.60 |
| Gains on other investments | 11.21 | 7.84 |
| Change in net assets | 49.50 | −14.87 |
Gains and losses on Kiroshi Opticals shares follow the company’s share price and are not realised unless shares are sold. The Foundation sold no shares in either year.
| Item | 2026 | 2025 |
|---|---|---|
| Assets | ||
| Kiroshi Opticals K.K. shares | 451.00 | 412.60 |
| Other listed investments | 192.80 | 182.84 |
| Property, including the Tokyo headquarters | 22.10 | 21.20 |
| Cash and deposits | 18.30 | 18.06 |
| Endowment | 684.20 | 634.70 |
| Dividends and interest receivable | 5.20 | 4.20 |
| Other receivables | 0.90 | 0.80 |
| Total assets | 690.30 | 639.70 |
| Liabilities | ||
| Grants payable within one year | 1.78 | 1.29 |
| Grants payable after more than one year | 0.90 | 0.49 |
| Other payables | 1.60 | 1.40 |
| Total liabilities | 4.28 | 3.18 |
| Net assets | 686.02 | 636.52 |
| of which designated by the founder’s gift (Kiroshi Opticals shares to the 20% floor) | 379.00 | 346.70 |
| of which general | 307.02 | 289.82 |
The endowment is the Foundation’s investments, property and cash. Net assets are the endowment plus receivables, less grants and other sums owed.
| Item | FY2025 |
|---|---|
| Dividends and interest received (income of 24.68, less 1.10 more owed to us at the year end) | 23.58 |
| Grants and programme payments (spending of 22.09, less 0.90 more grants payable) | −21.19 |
| Support, investment management and governance (spending of 2.70, less 0.20 more other payables) | −2.50 |
| Net cash from operating activities | −0.11 |
| Proceeds from sales of other investments | 9.40 |
| Purchases of other investments and property | −9.05 |
| Net cash from investing activities | 0.35 |
| Increase in cash | 0.24 |
| Cash at 1 April 2025 | 18.06 |
| Cash at 31 March 2026 | 18.30 |
The endowment
| Asset | ¥ billion | Share |
|---|---|---|
| Kiroshi Opticals K.K. shares (23.8% of the company) | 451.0 | 65.9% |
| Global equities | 118.6 | 17.3% |
| Bonds | 64.2 | 9.4% |
| Property, including the Tokyo headquarters | 22.1 | 3.2% |
| Cash and deposits | 18.3 | 2.7% |
| Other | 10.0 | 1.5% |
| Total | 684.2 | 100% |
| Year | Share of endowment | Share of the company held | Note |
|---|---|---|---|
| 1996 | 88% | 34.1% | The Arrangement is signed |
| 2004 | 84% | 31.0% | Shares sold after the founder’s death |
| 2012 | 79% | 27.9% | Diversification policy adopted |
| 2019 | 69% | 23.8% | Most recent sale |
| 2026 | 66% | 23.8% |
Investment policy
The diversified part of the endowment aims to return inflation plus 4% a year over rolling ten-year periods, so that the Foundation can keep spending at its current level whatever happens to Kiroshi Opticals. It does not invest directly in companies whose main business is weapons, tobacco or thermal coal, or in any other maker of optical implants.
The holding in Kiroshi Opticals is governed by the founder’s gift and the 1996 Arrangement rather than by this policy. The board considered in 2024 whether the exclusion for weapons should apply to it, given that the company’s Professional Systems division makes optics, implants and perception software used by security and defence customers. It concluded that the division’s products are not weapons, that the holding is not covered by the policy, and that the Foundation’s influence as a shareholder is better used than lost. Two directors asked for their disagreement to be recorded in the minutes. The question will be considered again in the 2027 review.
Selected notes to the accounts
Note 9. Grants payable
Grants awarded but not yet paid at 31 March 2026 were ¥2.68 billion, of which ¥0.90 billion falls due after more than one year. Of the total, ¥2.04 billion is owed on grants of ¥5 million or more, every one of which is listed in the grants database; the rest, ¥0.64 billion, is owed on smaller grants, which are paid in one or two instalments. Grants are paid a year at a time, in advance.
Note 12. Remuneration
Independent directors received ¥3.6 million each and the chair ¥6.0 million. The Executive Director’s salary was ¥24.8 million. The two directors nominated by Kiroshi Opticals received nothing from the Foundation. The ratio of the highest to the median salary of staff in Japan was 3.4 to 1.
Note 14. Related parties
Kiroshi Opticals K.K. is a related party because the Foundation holds 23.8% of its shares and the company nominates two of the Foundation’s directors. Transactions in the year:
| Transaction | Amount |
|---|---|
| Dividends received | ¥19.70 billion |
| Products bought through partner hospitals and clinics | ¥2.82 billion |
| Spare parts and batteries bought directly for Continuity | ¥0.18 billion |
| Rent paid by the company for one floor of the Tokyo headquarters | ¥0.04 billion (received) |
| Data services agreement (KURA): consent forms at aftercare clinics, and hosting at the Chiba Centre | Nil consideration |
Under the data services agreement, aftercare clinics funded by the Foundation offer wearers of older Kiroshi Opticals devices the maker’s consent form for diagnostic readings, and the company’s data service is hosted in the Chiba Centre’s data hall. No money changes hands. The agreement was approved by the directors without a connection to the company in November 2023.
Note 16. Events after the year end
On 1 April 2026 the Foundation renewed core funding for the Independent Implant Register for three years, at ¥1.12 billion.