The Group has grown through generally providing the best solution specialized in 5 fields “Medical”, “Healthcare”, “Welfare”, “Nursing care”, and “Services” with the Group mission “Creating environments for medical professionals” through “SHIP” philosophy from its foundation. We are now launching our new growth strategy under the five-year medium-term management plan, “SHIP VISION 2030”. In this plan, we aim for creating new business including “Well-Being” field, more efficient management through reorganization and integration of Group companies which increase via M&A and further enhancement of Group synergy as well as the growth of existing businesses. Furthermore, to reinforce our financial and capital strategies, we will go beyond our existing commitment to maintaining a dividend payout ratio of 30% or more. We are establishing a clear capital allocation policy, enhancing the transparency of growth investments and shareholder returns.

Quantitative Targets

Promoting Well-Being

In line with our Group mission of “Creating environments for medical professionals.” we have traditionally focused on domains related to “Preserving Lives”. We further expand the way of capturing the field and expand it to the field of “Creating environments for better living.”

Selected as the designated operator (Park-PFI system*) for Esaka Park and Esaka Library in Suita City, Momoyama Park enhancement project, and Nakanoshima Park & Nakanoshima Sports Ground, and entrusted with management operations.
*Park-PFI system: A public offering installation management system for public return type profit facilities by private business operators.

Entrusted with facility management work for a total of 84 facilities, including elementary schools, junior high schools, kindergartens, and nursery schools owned by Suita City.
*Business period: October 1st, 2023 – March 31st, 2028

Further Promotion of Group Reorganization and Integration

We have engaged in aggressive internal Group reorganization and integration to be the leader Group in the Japanese healthcare industry under the severe business environment. As a result, as of April 1, 2024, 16 out of 65 Group companies had been successfully integrated, with the nursing care and pharmacy-related businesses consolidated into a single entity respectively. We continue to advance reorganization and integration to further enhance the promptness of management and to further utilize management resources efficiently during the period of the new medium-term management plan.
Especially within Medical Supply Business, facing intensifying price negotiations due to hospital management challenges and growing efforts by manufacturers to centralize distribution, we will deepen our business operations while enhancing cooperation and synergy with other segments such as Total Pack Produce Business.

Next-generation Logistics Initiative

In Medical Supply Business, we have made efforts for automation and efficiency of logistics of medical consumables by RFID in Osaka Solution Center. To address the increasing shortage of labor and limited in-hospital space, especially rising demand for off-site SPD* solutions, we will invest in a new automated warehouse in the Tokyo metropolitan area, about 1.5 times the size of our existing facility. This initiative will further differentiate us from competitors and establish our position as a nationwide, fully integrated healthcare trading company, becoming the partner of choice for both clients and manufacturers.

* SPD（Supply Processing and Distribution）is the system for logistics management in hospitals on behalf of hospitals.

5 points of the logistics initiative

• Logistics reform to address future labor shortages Improving operational efficiency through workforce centralization and automation
•  New procurement strategy Strengthening collaboration with manufacturers through inventory optimization and logistics improvements leveraging operational bases
• Group brand strategy tailored to meet diverse customer needs Capable of supporting bundled contracts with multiple hospitals under different management bodies
• BCP initiatives Establishing systems to ensure stable supply of medical materials
• Emerging demand for off-site solutions due to space constraints within hospitals As in-hospital SPD requires significant space, expanding business opportunities by capturing external SPD needs

Business Development Initiated from MSP Business

Personnel and materials expenses account for approximately 80% of hospital expenditure, making their management a critical issue in hospital operations. Medical Supply Business, being deeply integrated with daily hospital activities, allows us to offer detailed operational improvement proposals, IT support, and comprehensive outsourcing services. In addition, we advance reorganization and integration to gather information of various businesses. We set up a system for expanding this information to other segments including Total Pack Produce Business. We will expand this segment further, while simultaneously Reorganization to function as a hub for business intelligence. This intelligence will be leveraged across the Group, including in our Total Pack Produce and other segments, to support Group-wide growth and integration.

The Group locates shareholder return as one of its key management priorities. Emphasizing stable and sustainable dividends, the Company strives to enhance shareholder returns in line with earnings growth. Annual dividend in fiscal year ended in March 2026 is 60 yen per share, increased 2 yen from 58 yen per share in the previous period. Annual dividend in fiscal year ending in March 2027 is planned to be 65 yen per share, further increasing by 5 yen per share.
Going forward, the Company will continue to pursue an appropriate balance among growth investments, financial stability, and shareholder returns, while enhancing capital efficiency and increasing corporate value over the medium to long term.

We view Cash Flow from operation as the foundation of capital generation and the engine driving our growth. We continue to expand corporate value by challenging new business fields through M&A and capital investment and strengthening competitiveness of existing business. Through this, we will strive to deliver both “enhancing earning power in the future” and “further return to shareholders.”

We have positioned “achieving ROE (Return on Equity) of 12%” as a key management targets in the new medium-term management plan and aim to create return which exceeds capital costs.
As a part of the target, we have clear articulated our intent to execute agile acquisition of treasury shares and we plan to acquire treasury shares of up to 5 billion yen/3.3 million shares during the period from June 8 to December 31, 2026. This is expected to contribute to the improvement of Earnings Per Share (EPS) and ROE.
We will continue to balance growth investments and returns to shareholders, while steadily improving capital efficiency and enhancing long-term corporate value.