Medium-Term Management Plan
Target figures
Priority measures
1.Further high growth of core business
2.Active expansion of our value
3.Functional enhancement strategy
4.Activities for Sustainability
New Medium-Term Management Plan
(FY03/2023-FY03/2025)
“SHIP VISION 2024” get started
(Formulation date May 16, 2022)
Formulated a new medium-term management plan in anticipation of a drastic change in the business environment
The Group has planned various initiatives to achieve consolidated sales of 1 trillion yen. With the declining birthrate, aging population and increasing medical costs in Japan, market needs are diversifying and changing day by day, and we have formulated a new medium-term management plan “SHIP VISION 2024” to achieve sustainable growth and further increase in corporate value. Through this medium-term management plan, the Group will aim for further growth as a corporate group aiming for consolidated sales of 1 trillion yen.
Background of SHIP VISION 2024
Diversifying and Complex Challenges in Healthcare industry
| Highly qualified medical care provision system |
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Promote comprehensive community care systems Securing home medical care and home nursing care |
| Work style reform |
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Decreasing workforce Task-sharing, Outsourcing |
| Infection control measures |
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Infection control measures according to the function of the medical institution |
| Improving sustainability |
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Limited medical resources Increasing social welfare spending |
Target figures
Create new value and further increase the added value of the business through four priority measures
Under the new medium-term management plan, we will deepen and expand existing markets, create new value and increase added value in response to changes in market needs, and strengthen the management base that supports our growth. In addition, as a top runner in the healthcare industry, we will contribute to sustainability toward a sustainable society through our business.
Regarding the outlook for the fiscal year ending march 2025, we anticipate exceeding the sales target (630 billion yen) set in our medium-term plan.
Priority measures
| 1.Further high growth of core business |
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Accelerate further growth of core business centering on the existing 4 business Optimization of management resources |
| 2.Further expand value |
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Proactive and strategic M&A implementation Creating value through new business |
| 3.Functional enhancement strategy |
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In-group functional enhancement strategy Securing consolidated dividend pay-out ratio over 30% |
| 4.Activities for sustainability |
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Realizing sustainability through our business |
Develop strategies that capture the trend of each business while promoting segments collaboration
1.
Further high growth of core business
Total Pack Produce Business (TPP)
Promote response to changing market needs
Further strengthening of consulting and producing capabilities
Providing high-quality and wide-ranging value for the consolidation and abolition of hospitals through the regional medical concept
Securing profits in service businesses such as Osaka Heavy Ion Therapy Center
Active development of new products, strengthening of maintenance service
Strengthen management of overseas business and promote its cooperation
* Kingrun Co., Ltd., which joined the Group in July 2022, is included in TPP Business.
| Plan | CAGR 22.3-25.3 | |
|---|---|---|
| Sales | 163 billion yen | 17.9% |
| Segment profit | 13 billion yen | 13.2% |
Medical Supply Business（MSP）
Expansion of business field and improvement of service quality
Strengthening competitiveness by utilizing the strengths of each operating company across the board
Development of Private Brand products capturing social needs
Further expansion and enhancement of advanced medical material distribution system “Smart Medical Solution”
Nationwide expansion through active and strategic M&A
| Plan | CAGR 22.3-25.3 | |
|---|---|---|
| Sales | 407 billion yen | 4.1% |
| Segment profit | 7.2 billion yen | 5.3% |
Lifecare Business（LC）
Maintaining high occupancy rate and creating new value
Corresponds to M & A, integration, etc. and responds to competition in terms of both scale and uniqueness
Efficiency and quality improvement through manufacturing consignment and joint utilization of equipment in food supply business
Realization of “well-being” society through regional exchanges and social advancement support through employment support for people with disabilities
| Plan | CAGR 22.3-25.3 | |
|---|---|---|
| Sales | 29 billion yen | 5.3% |
| Segment profit | 2.6 billion yen | 2.6% |
Dispensing Pharmacy Business (PH)
Strengthening information coordination with other segments
Preparing to open new large stores and improving the efficiency of existing stores
Promotion of dominant strategy through active M&A
Promote home dispensing and contribute to the realization of a comprehensive community care system
Respond to the demand for in-facility dispensing at affiliated nursing care facilities inside and outside the Company
| Plan | CAGR 22.3-25.3 | |
|---|---|---|
| Sales | 30 billion yen | 1.8% |
| Segment profit | 3.2 billion yen | 0.0% |
Active and strategic M&A and value creation with new business
2.
Active expansion of our value
Active and strategic M&A
Principle policy for M&A
| Deepen existing business | |
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| TPP Business | Improving manufacturer functions and expansion of other TPP-related business |
| MSP Business | Expansion of business field considering regional strategies |
| LC Business | Realization and expansion of high value-added and high-quality services |
| PH Business | Active grouping of high-margin pharmacies centered on front-end pharmacies |
| Overseas Business | Strengthening business in Bangladesh and Myanmar, discovering new markets |
| PMI enhancement |
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| Improve PMI by strengthening the functions of the Sales Strategy Department and steadily create synergies after M&A |
| Discovering new business |
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| Utilize M&A as a foothold for developing new business |
Value creation with new business
Providing more efficient and comprehensive services through DX
Development of management and operation services to medical institutions
Providing high value-added services such as solutions that integrate existing services and automated equipment
Planning and development of Private Brand products that accurately capture social needs
Strategy for strengthening functions within the group and securing a consolidated dividend payout ratio of 30% or more
3.
Functional enhancement strategy
| Promoting functional enhancement projects |
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Supporting sustainable growth through functional enhancement projects in addition to the organizational reforms implemented in the past fiscal year 1. Enhancement of management functions 2. Enhancement of sales functions 3. Enhancement of accounting and financial functions 4. Enhancement of human resources development and personnel functions 5. Enhancement of compliance function |
| Sound financial structure and improvement of shareholder returns |
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Strengthen growth investment and shareholder returns while ensuring the current liquidity on hand Continuous growth investment Repayment of existing loans and securing of new procurement capacity Consolidated dividend payout ratio of 30% or more |
