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

The Group is advancing the Medium-Term Management Plan “SHIP VISION 2024.” As the second term (the fiscal year ended 31 March 2024), we had steadily advanced the steps of our “Growth” and “Progress” through operating high value-added business.

Despite the impact of political instability in Myanmar on the Total Pack Produce business, domestic project operations proceeded steadily as planned. The increase in treatment cases at the heavy ion cancer treatment facility, along with the performance of the Kingrun Group (which joined our group in July 2022) being accounted for from the beginning of the fiscal year, contributed to a solid increase in both sales and profits. Additionally, the Medical Supply business, Life Care business, and Pharmacy business also progressed steadily, contributing to increased sales and profits.
As a result, consolidated financial results of the year achieved an increase in sales and profit of two digits; net sales is 630.9 billion yen (increased 10.3% YoY), operating profit is 24.5 billion yen (increased16.0% YoY) and profit attributable to owners of parent is 13.7 billion yen (increased 14.3% YoY).
Considering these business trends, we have decided to further increase dividends for shareholders beyond our initial forecast. As a consequence, dividends per share is 50 yen, an increase of 8 yen from the previous year, consisting of 45 yen of ordinary dividend and 5 yen of commemorative dividend of 30th anniversary. This marks the eighth consecutive year of dividend increases. We will continue to aim for a payout ratio of 30% or more and strive to distribute profits in line with the growth of our performance.

We are making steady progress towards achieving the medium-term business plan, focusing on four important measures set forth at its inception “Further growth of core business”, “Further expand value”, “Functional enhancement strategy” and “Activities for sustainability”. Concretely, starting from “consulting capabilities” and “producing capabilities”, which exploiting various know-how of whole Group, we continue to expand the circle of providing high quality and wide-ranging value to regional healthcare.
In the Total Pack Produce business, we have undertaken distinctive projects such as the integration of two hospitals, one is public and the other is private, into the regional core hospital, Kawanishi City Medical Center（relocated and opened in September 2022）under the concept of “Empower local medical systems in Japan”, and AILE HOME CLINIC NAGAOKA（established in September 2023） as an urban redevelopment project in front of the Nagaoka station in Niigata prefecture, which aims to “contribution to urban development from medical care”. “Creating environments for medical professionals”, we take initiative, proceeded into a new stage with engaging various projects with brand new concepts.
In addition, as part of the Well-being business, we have secured comprehensive management operations regarding in total of 84 facilities, including elementary schools, junior high schools, kindergartens and nursery schools etc., which under jurisdiction of Suita city, Osaka (The contract term is 5 years, from 2023 to 2028).
In the Medical Supply business, we are particularly focused on “strengthening efforts for medical DX” . In the field of medical in Japan, under the leadership of “Headquarters for Medical Digital Transformation (DX) Promotion” which Japanese Government newly established, DX is promoted towards streaming services and improving quality. Our group anticipates these movements, proceed visualization of SPD date in medical facilities all over Japan and engage in initiatives for creating future medical service basis by Industry, Government, and Academia（including participating in “The Cross- ministerial Strategic innovation Promotion program”, which Cabinet office takes initiatives and supporting for “The Medical AI and Digital Twin Development Course” in the University of Tokyo）.
Challenges for creating new value for regional healthcare led to the coexistence of certain social contribution and improvement of corporate values, leading us towards the long-term goal of achieving a consolidated net sales of one trillion yen.
We sincerely appreciate all of you for your continued support and encouragement.

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.