Message from the President
Consistently returning to our philosophy, we are dedicated to advancing business activities that “Protect Lives.”
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President
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It has been four years since I assumed the position of President of the SHIP Healthcare Group. Under the unwavering group philosophy of “SHIP,” which embodies the aspirations of our founders, including Chairman Furukawa, I have been steering our business activities. Every time I face significant management challenges, I am reminded of the importance of returning to our core philosophy.
Entering a Super-Aging Society and the Challenges Ahead for Our Business Environment
With the continued progression of a declining birthrate and aging population, social security costs are rising sharply. Meanwhile, the significant decrease in the working-age population is reducing tax revenues, making it increasingly challenging to secure the resources needed for healthcare and eldercare.
As the “baby boom generation” reaches advanced age, demand for healthcare services will increase for some time. However, as the population declines thereafter, we anticipate a contraction in the overall market.
Despite these challenging business conditions, as Chairman Furukawa has emphasized, our group will not avert its focus from “Protecting Lives.” In such times, it is crucial to ensure the improvement of working conditions for those engaged in healthcare services while continuing to provide necessary services.
Looking Back to the Fiscal Year Ending March 2024
The fiscal year ending March 2024 presented unstable economic conditions, including heightened geopolitical risks worldwide and rising prices. Amidst this, our group achieved record-high sales and operating income since its founding by meeting our customers' needs, despite being impacted by the unstable political situation in Myanmar in the Total Pack Produce (TPP) business.
This achievement was driven by three main factors:
1. The steady progress of project-based initiatives.
2. The strong performance of the Medical Supply (MSP) business.
3. The sales contribution from the Kingrun Group.
The increase in operating income was largely attributed to the strong performance of project-based initiatives and manufacturer-related projects within the TPP business.
Current Challenges to Address
Given that our business activities are aimed at “Protecting Lives,” expanding both the quality and quantity of our services remains a significant challenge for the future.
In recent years, the wave of digital transformation (DX) has also reached the healthcare services industry. Responding to this trend is critical to enhance the scope and impact of our “Protecting Lives” initiatives.
To address this, we will actively recruit talent with IT-related skills and expertise, while also accelerating the development of digital talent within our existing workforce.
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Progress of the Medium-Term Management Plan “SHIP VISION 2024”
The three-year medium-term management plan “SHIP VISION 2024” concludes in the fiscal year ending March 2025 (this fiscal year). Our initial financial targets for the final year were set at ¥640 billion in sales and ¥26 billion in operating income. However, given the current favorable business performance, we aim to exceed these targets. Additionally, for operating income, we are committed to covering the figures originally anticipated from the Myanmar business through contributions from other business segments.
Business Model Evolution and Future Growth
Our group has leveraged the innovative capabilities of the Total Pack Produce (TPP) business to expand other business areas. Moving forward, we will continue to position the TPP business as the core of our group and cultivate it into an even more profitable operation. Furthermore, connecting the expanding Medical Supply (MSP) business with the TPP business will remain a critical priority. By addressing this challenge, we will strengthen a cyclical model that begins with the abundant data obtained from the MSP business.
In addition, we aim to foster a corporate culture where all group employees look beyond their immediate business areas, taking a comprehensive view of the group portfolio and collaborating both horizontally and vertically.
Placing “life” as our highest priority, we must maintain a proactive approach and respond flexibly to the sustainability challenges society demands in every era. Balancing these aspects in management is a vital responsibility as President.
Embracing Our Group Philosophy and Demonstrating Our Presence
To support a society where people can live better and achieve greater Well-Being, it is essential to co-create with a diverse array of stakeholders, including medical professionals such as doctors, private companies, and government agencies. Going forward, we see ourselves playing the role of a “connector”—a kind of adhesive that brings these stakeholders together effectively. To do this, it is important to expand our capabilities and build our network.
By continuing to leverage our unique “consulting expertise” and “producing capabilities”, we aim to grow our management resources while maximizing synergies within the group. As the third-generation president of our group, I am determined to confidently pass the baton to the next generation, ensuring a legacy of success.
We look forward to your continued support and invite you to anticipate even greater achievements from our group in the future.