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Medium-term Growth Strategy "One Suzuken 2019"

Guided by the Suzuken Group message “Design Your Smile ? Creating Health through the Suzuken Group,” we will continue to contribute to rich and fulfilling lifestyles that are full of smiling faces.
The Suzuken Group has established “health creation” as its field of business. We will work hard to increase long-term corporate value as we aim to achieve the continued creation of new added value in the medical and nursing care fields, and to establish an indispensable presence in medical care and health in Asia as well as Japan, rooted in the basic management policies of “customer-oriented management” that can meet the needs of our customers and management which respects the human nature of our employees and in which “all employees participate.”

To this end, the Suzuken Group formulated its medium-term growth strategy, “One Suzuken 2016.” According to the medium-term growth strategy, we are advancing each one of strategies in order to make three medium-term visions a reality. We aim to continue to increase our corporate value by preferentially investing our business resources in those enterprises that need to be strengthened, and by contributing to medical care and health.

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Medium-term Vision 1. Number One – Strive to maximize customers' trust

    (1)Strengthen customer contact points to pursue functions and value that customers really want
    (2)Establish a system for nationwide wholesaling closely linked to communities
    (3)Evolve the medical distribution platform
    (4)Build a new distribution model for generics and other products.

The Suzuken Group will carry out thorough improvement activities in response to customers' needs, aiming to maximize customer trust and continuing to implement our strategy of becoming the No. 1 Group for customer trust.
We will strengthen this strategy by reviewing our sales and distribution systems, and improving productivity. We will also evolve these initiatives into activities for providing solutions that meet customers' needs.
Moreover, we will further evolve the medical distribution platform, aiming to build an independent distribution platform capable of supplying products reliably and safely, not only to our nationwide network, but also to the various different regions.

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Medium-term Vision 2. Only One – Create a unique business model

    (1)Strengthen the profit structure of existing Group businesses.
    (2)Establish a business foundation in the Asian markets
    (3)Establish a full-line of contracted services focused on specialty products
    (4)Creation of new services in response to the advance of comprehensive community care

The Group will strengthen the profit structure in its existing businesses in preparation for environmental changes, while merging Group business functions and further collaborating with alliance partners and external companies to build new business models for the future.
The Group's social mission is to realize "safe, reliable pharmaceutical distribution." We believe that the way to approach this mission is by building a new business model that can contribute to society by reducing social costs and so forth.

Strengthen each business base

①Pharmaceutical Manufacturing

  • Thorough sales expansion of existing products
  • Creating new added value through cooperation with partner companies
  • Research and development based on the diabetes and kidney disease area

②Insurance Pharmacy

  • Brand building as a safe and secure pharmacy
  • Enhance business by strengthening business base and M&A etc.
  • Strengthen synergies with other businesses within the group, including Pharmaceutical Distribution etc.

③Nursing care business

  • Improve profitability of business
  • Construction of a cooperative model with Pharmaceutical Distribution and Insurance Pharmacy in the region

④Global business

  • Establish a business foundation in the Asian markets
  • Contribution to further development of medicine distribution and medical-related industries in Asian countries

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Medium-term Vision 3. One Group – Common platform and common values

    (1)Enhance the Group's governance
    (2)Enhance communication within the Group
    (3)Create systems and corporate culture for nurturing human resources with future aspirations.

Compliance is our foremost priority as a corporate group. We will work to enhance the Group's governance by strengthening the Groupwide governance functions and communication.
In human resource development, we will identify young talent and provide them with growth opportunities to strengthen our middle management layer, while cultivating systems and an organizational culture that enable people to grow.

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Medium-term Vision 4. One Point Improvement – Improve sales and administration cost efficiency through productivity increases

    (1)Reform operation and cost structure though companywide waste-elimination
    (2)Realize work style reforms

The Group is committed to eliminating waste. We will undertake operational and cost structure reforms, as well as aiming to strengthen our profit structure. We will aim to improve labor productivity per hour by making operational efficiency gains using IT and thoroughly eliminating waste without being unduly attached to previous customs.
In our operational reforms for increasing productivity, we aim to achieve "workstyle reforms" including the active participation of women and of employees of diverse backgrounds.
The Group will implement its medium-term growth strategy, "One Suzuken 2019 Changes Present Opportunities for Self-Transformation and Advancement," aiming to become "a presence indispensable for medical care and health in Japan and elsewhere in Asia, by continuously creating new levels of added value in the fields of medical and nursing care."

Although net sales and ROE are management indices important to Suzuken, we have not announced medium- and long-term forecasts for them because it is difficult to give a reasonable indication at this time. This is because there are many uncertainties in the Group's current operating environment that could have a material impact on earnings.

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