We wish to express our gratitude to all our shareholders for your continuing support.

The Group has started the five-year medium-term management plan "SHIP VISION 2030" from the current period, FY ending March 2026. Under this plan, we began to seriously develop "Well-Being area" as the new initiative with an eye on medium- to long-term growth from the existing areas, which are "Medical", "Healthcare", "Welfare", "Nursing care" and "Service". In this management message, we outline our approach and key points for expanding into the "Well-Being area", as well as our vision for the future.

Japan is currently facing structural challenges arising from demographics changes. While the government has been implementing social security reforms to address the "2025 problem", when the baby boom generation reaching the age of late elderly stage over 75 years old, an even more profound challenge lies ahead.
However, it is anticipated that declining birthrate, population decline and super-aging progress further toward 2040, when baby boomer junior generation becomes elderly people. Corresponding to the "2040 problem" will become the important social issue in the future.
It is estimated that in 2040, each elderly person will be supported by 1.5 working-age individuals. This rapid transformation of social structure poses serious challenges to the medical and healthcare industry. The Group recognizes that it has to accelerate reforms we have engaged in pioneering the industry and "SHIP VISION 2030" is the declaration of the determination.

The first major initiative taken during the formulation of the new medium-term management plan was redefining the business areas. As Japan's population continues to age and birth rates decline, creating environments where children can grow up in better conditions and where seniors can live vibrant, fulfilling lives is becoming increasingly essential.
The Group recognized the role it should fulfill, expanded the existing framework and clarified to expand its business area to new large framework of "Well-Being area." In other words, we expand our efforts to "Creating environments for people to better live" around existing "Creating environments for medical professionals" as the axis.
The Group began exploring the "Well-Being area" several years ago. During the previous medium-term management plan period, we have been entrusted with designated management of parks, a library and a sports field in Suita city, Osaka prefecture, where our headquarters is located. Furthermore, we also entrusted with management business of total of 84 facilities including elementary schools, junior high schools, kindergartens, and nursery schools. We have built up experience and results rooted in the area.
Moving forward, we will steadily continue to expand new businesses for creating environments for children to grow better. We will seriously expand business in the "Well-Being area" during the current medium-term management plan and create unique solution of SHIP HEALTHCARE Group with correspondence to future social issues including the "2040 problem."

Our top priority is to further deepen the core business "medical and healthcare area" as a foundation which support expanding business toward "Well-Being area." We recognize that it is essential to evolve the core business "Creating environments for medical professionals" into the next growth stage. The key measures for realizing above are "reorganization and integration of Group companies" and "promoting next-generation logistics initiative." We will strengthen business foundation in medical and healthcare area through these measures and further enhance adaptability for customer needs.
First, regarding reorganization and integration of Group companies, we reorganized Group companies mainly dispensing pharmacy business companies. The number of Group companies reorganized from 65 as of April 1, 2024, to 52 as of September 30, 2025. This reorganization has improved the speed of management decision making, enabled more efficient utilization of management resources and established the environments for bringing out maximum synergy effect across the Group. We will continue step-by-step reorganization and integration and proceed optimization of the organization.
At the same time, we are promoting next-generation logistics initiative which brings logistics innovation to the medical and healthcare industry. We will strengthen logistics network by establishing logistics base in the Tokyo metropolitan area in addition to the current Osaka area and realize the Group which trusted by both customers and manufactures as a trading company covering all over Japan. A efficient logistics infrastructure, combined with organizational strength enhanced through reorganization and integration, will enable faster and high-quality services delivery to our customers.
We will further deepen our core business in the medical and healthcare area by both reorganization and integration of Group companies and next-generation logistics initiative and dramatically enhance competitiveness of our Group. We are convinced that these measures will become an important foundation for achieving next stage of growth.
The Group promotes optimal capital allocation which balances both aggressive growth investment and shareholders return, with the goal of maximizing corporate value. We kindly ask for your continued support and guidance as we embark on these new challenges.