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Medium-term Growth Strategy "May I 'health' you? 5.0"

Guided by the Suzuken Group message “Design Your Smile - Creating Health through the Suzuken Group,” we aim to contribute to rich and fulfilling lifestyles that are full of smiling faces.

The Suzuken Group will continue to create new added value in the fields of medicine and nursing care to be “a presence indispensable for medical care and health” in Japan as well as other parts of Asia.

As our business environment changes with increasing rapidity, we are standing at a major crossroads.

Looking at Kenzo Suzuki’s establishment of Suzuken as the beginning of the first phase of our existence, and our listing on the first section of the Tokyo Stock Exchange, in 1997, as the start of the second, we are now entering the third phase—one in which our objective is to solidly implement our previous medium-term growth strategy, One Suzuken 2019, and realize our 2025 vision of becoming a presence indispensable for medical care and health.

To realize its vision for 2025, Suzuken Group developed "May I health you? 5.0"—the new medium-term growth strategy. This expresses our desire to be a company that is a contributor, an indispensable presence in the field of health creation (“health”), not only in Japan but throughout Asia (“you”), in the age of Society 5.0, the digital society Japan is aiming to realize. Our goal is to practice business in a new way that resolves social issues.

Looking ahead, the Suzuken Group taken as a whole will work essential part of each strategy of “New business establishment toward the third foundation,” “Growth of each business and exercising synergy between businesses,” and “Promoting leaner structure” and will seek to increase its corporate value even further by achieving three “One” in the new medium-term growth strategy and connecting functions of each “One.”

Medium-term Growth Strategy "May I 'health' you? 5.0"image

Medium-term Growth Strategy "May I 'health' you? 5.0"image

Medium-term Vision 1. Only One“New business establishment for the third development phase”

    (1)Establish a new business model in the digitalization era
    (2)Seek a business model contributing to local healthcare
    (3)Enhance a product portfolio

We recognize the importance of speed and aim to build our Only One business model that only we can do as the Group, including collabiration with various companies.
We will contribute to solving problems for our customers and the society when we bring together information for local communities and offer new solutions by having its real management resources in addition to network information of the digital world.

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Medium-term Vision 2. As One“Growth of each business and exercising synergy between businesses”

    (1)Rebuild a business model of pharmaceutical distribution
    (2)Establish two distribution models coping with changes in category
    (3)Business reform of pharmaceutical manufacturing segment
    (4)Growth of pharmacy business
    (5)Growth and becoming profitable of long-term care business
    (6)Further strengthening of China and Korea businesses

Suzuken Group will not only grow each of its existing businesses, but also create synergistic effects through collaboration, and will provide new value for As One as a whole group.
As for our wholesale business, we aim to be the number one in the distribution of specialty pharmaceuticals as a response to category changes. In generic drug distribution, we will build a new business model mainly based on TS Pharma Co., Ltd., a joint venture with Toho Holdings Co., Ltd.
In order for pharmaceutical wholesalers, pharmacies, and nursing care facilities to work together in the community to work on comprehensive community care and connect those efforts in real and digital, the digital environment is required. We will take on the challenge of creating new values ​​and services with bold ideas from each business, and will provide new solutions by combining the functions we have cultivated so far and our diverse human resources.

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Medium-term Vision 3. One Point Improvement“Promoting a leaner structure”

    (1)Drastic structural reform of pharmaceutical distribution operation
    (2)Cooperation of Group’s indirect functions
    (3)Optimization of Group head office function

We have been working to eliminate waste for three years. Adding to this, we will work to expand sharing of indirect functions across the Group and optimize Group back-office functions to achieve significant progress in centralization and efficiency in order to realize Group-wide productivity improvements.

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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