In the first half of the fiscal year ending March 2025, although sales of COVID-19-related products decreased compared to the same period of the previous year, the decline did not fall as expected at first, and sales of specialty pharmaceuticals and other limited-handling products for selected wholesalers continued to grow steadily. In price negotiations with medical institutions, in order to comply with the Guidelines for the Improvement of Commercial Transaction Practices of Ethical Drugs for Manufacturers, Wholesalers, and Medical Institutions/Pharmacies that were revised in March 2024, we continued our efforts to negotiate unit prices for individual products to better reflect their individual value and distribution costs. We also worked to negotiate separately for drugs that are particularly needed for medical purposes.

　As a result, the Company’s consolidated operating results for the first half of this fiscal year exceeded the initial plan, with net sales of 754,974 million yen (up 2.7% year-on-year) and operating income of 7,380 million yen (up 13.7% year-on-year).

　With regard to dividends, in line with a basic policy that calls for a stable increase in dividends with a view to achieving a DOE (dividend on equity) of 2%, the annual dividend for this fiscal year was set at 50 yen, an increase of 10 yen from the previous fiscal year (25 yen each for the interim and the end of the fiscal year). In addition, the interim dividend will be 25 yen per share, as initial forecast, and we decided to increase the year-end dividend by 15 yen from the initial forecast of 25 yen per share to 40 yen, and increase the annual dividend by 25 yen from the previous fiscal year to 65 yen.

　The Group developed the Medium-term Management Plan 2023-2025 “Create the Next Generation,” for a period of three years from 2023. It set out four basic policies: (1) Business transformation, (2) Investment for growth and improvement of profitability, (3) Sustainability management, and (4) Improvement of capital efficiency and enhancement of shareholder returns. Based on these policies, we implemented specific measures to maintain sustainable growth and enhance corporate value through such means as active business alliances and digital transformation (DX).

　Furthermore, we established the Management Strategy Committee in April 2024 for the purpose of accelerating the implementation of the initiatives of the Medium-term Management Plan and enhancing their effectiveness, and based on the results of the verification, we decided on a concrete action plan and announced it on November 8.

　As CEO, I will lead this action plan with unwavering determination, and the entire company will work together to realize our strategic goals and maximize our corporate value.

　We look forward to your continued support.