Medium-term Management Plan

Medium-term Management Plan（FY2026 to FY2028）

Becoming a Health Creation Enterprise in Our Third Phase of Development
—Evolving into a Next-Generation Distributor Beyond the Traditional Concept of Wholesaling—

The business environment surrounding the Group in the healthcare and pharmaceutical industries is undergoing significant changes due to the continuation of policies to contain medical expenses, ongoing discussions regarding systems related to pharmaceutical distribution, an increasing proportion of specialty drugs, and rising personnel and logistics costs. In particular, in the pharmaceutical distribution sector, the sustainability of existing business models based on traditional profit structures is being called into question. While fulfilling its responsibility to ensure a stable supply as part of social infrastructure, structural transformation is required to secure medium- to long-term profitability.
Against this backdrop, the Group has formulated a new Medium-Term Management Plan covering the three fiscal years from the year ending March 31, 2027 to the year ending March 31, 2029 as a management guideline for the next stage of growth following the previous medium-term management plan.

The Medium-Term Management Plan (FY2026–FY2028) is positioned as a critical execution phase toward achieving our ultimate target of a return on equity (ROE) of 8% in five years, for the fiscal year ending March 31, 2031. While the Group’s ROE in the most recent fiscal year was in the 9% range, this figure includes temporary gains from the sale of cross-shareholdings. From the perspective of earning power based on operating profit, ROE remains at the 6% level, and we recognize that further improvement is necessary. While achieving and maintaining an ROE of 8% is positioned as a key management target, transforming our business structure and establishing new revenue models will require a certain amount of time. Accordingly, we have set an ROE of 8% for the fiscal year ending March 31, 2031 as a clear milestone. Based on a backcasting approach from this target, we will implement the Medium-Term Management Plan to build a new earnings foundation. Through these initiatives, we aim to enhance our profitability and realize sustainable growth in corporate value.