Medium-term Management Plan
2026 - 2028
Soaring into the Next Generation
The Group has formulated the Medium-term Management Plan “Soaring into the Next Generation,” covering the three-year period from fiscal year 2026 to 2028 (from the fiscal year ending March 31, 2027 to the fiscal year ending March 31, 2029).
The period of the Medium-term Management Plan 2026-2028 is positioned as a monetization phase built upon the foundation established during the previous plan. In this monetization phase, we will implement strategies and initiatives focused on achieving discontinuous growth in operating profit driven by further investments aimed at growth. We have adopted the slogan “Soaring into the Next Generation,” reflecting our determination to establish a profit structure that enables us to continue growing autonomously while adapting flexibly to changes in the external environment, and to rise powerfully toward the future.
While strengthening the profitability of our core pharmaceutical wholesaling business, we will transform into a Comprehensive Healthcare Solutions Provider that creates and delivers new value to all stakeholders in the healthcare industry by leveraging our experience and strengths to actively form alliances aimed at expanding rapidly into new business areas. Furthermore, by evolving into a value-creating organization led by self-reliant employees who are unafraid of challenges, we will make a powerful leap into the rapidly changing next generation and achieve sustainable growth and the enhancement of our corporate value over the medium to long term.
Positioning of the Medium-term Management Plan 2026-2028 "Soaring into the Next Generation"
From foundation creation to monetization phase by accelerating investment for growth
Medium-term Management Plan 2026-2028 “Soaring into the Next Generation”
- Overall architecture -
ROE
8%or more
Operating
profit
margin
1.5%or more
Operating
profit
30bn yen
or more
Investment in
growth fields
50bn yen
or more
Growth Strategies
Pharmaceutical wholesaling business
- Expanding the number of specialty pharmaceuticals acquired
- Strengthening the sales and delivery system and improving productivity by promoting Digital Transformation (utilizing BI and AI)
- Strengthening the development functions of customer support systems
New business
- Creating new businesses through proactive alliances and M&A with companies in fields such as prescription pharmaceuticals, medical devices/materials, reagents, OTC drug, medical IT, and logistics
- Accelerating the expansion of the Medical Digital Transformation business
Pharmaceutical manufacturing and sales business
- Expanding CDMO business for new modalities
Dispensing pharmacy business
- Strengthening of governance
- Improve efficiency and profitability by promoting Digital Transformation
Efficiency Strategy
Cost structure reform
Restructuring of unprofitable divisions, improving productivity in sales, logistics, and delivery, reduction of indirect material costs and business process reform
Strengthening the Management Foundation
- Sophistication of governance
- Contribution to the environment
- Promotion of Digital Transformation
- Human capital management (system and culture reforms, DE&I, and health and productivity management)
Capital Policy
- Total payout ratio of 100% or more
- DOE 4％ or more
- Stable dividend increases and flexible share buybacks (shareholder returns 50 billion yen or more)
Financial targets
FY2028 Targets (Consolidated)
ROE8%or more
(Maintain a level higher than the cost of equity* in the future)
*Recognized as approximately 6-7%
Operating profit margin
1.5%or more
Operating profit
30bn yenor more
Investment in growth fields
50bn yenor more
Shareholder returns, cross-shareholdings
DOE4%or more
(During the medium-term management plan period)
Total payout ratio
100%or more
(During the medium-term management plan period)
Crossshareholdings
less than10%
*Ratio to consolidated net assets (March 31, 2029)
Under this Medium-term Management Plan, the Company sets numerical targets for fiscal year 2028 of an ROE of 8% or more, an operating profit margin of 1.5% or more, and an operating profit of 30 billion yen or more, and will invest 50 billion yen or more in growth fields during the period. To achieve these numerical targets, we will implement four key strategies; “Growth Strategy,” “Efficiency Strategy,” “Strengthening the Management Foundation,” and “Capital Policy.”
As part of our capital policy, we aim to achieve a total payout ratio of 100% or more during this Medium-term Management Period by combining stable dividend increases with flexible share buybacks. We expect total shareholder returns over the next three years to exceed 50 billion yen, and we will maintain a dividend on equity (DOE) of 4% or higher. We will also maintain our target of keeping cross-shareholdings below 10% of net assets by the fiscal year ending March 2029, and we will continue discussions with the aim of achieving this goal as soon as possible.
Concentrate resources on growth domains and accelerate value creation.
Realize business portfolio transformation by accelerating promotion of growth and efficiency strategies
Enhance corporate value by allocating management resources to “strengthening the pharmaceutical wholesaling business,” “creating new businesses,” and “expanding CDMO business for new modalities,” with a view to achieving ROE of 8% or more, an operating margin of 1.5% or more, and operating profit of 30.0 billion yen or more.
As a result of re-evaluating our business portfolio, we have determined that we need to quickly expand into new business areas in order to achieve our targets for fiscal year 2028.
In addition to further strengthening our core pharmaceutical wholesaling business, we will allocate management resources toward expanding new businesses and our CDMO business for new modalities to accelerate growth. Meanwhile, in the dispensing pharmacy business, we will thoroughly streamline operations by focusing on investment and operational efficiency.
For businesses that continuously fall below WACC, we will strictly judge the appropriateness of ownership. By doing so, we will promote management that emphasizes ROIC and maximize the corporate value of the entire Group.
Achieve operating profit target of 30 billion yen by strengthening our revenue structure and implementing growth investments.
Shifting gears in growth and efficiency strategies
Aim to achieve operating profit of over 30 billion yen by promoting four growth strategies and cost structure reforms
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- Promotion of cost structure reform 6 billion yen
-
- Improving productivity in sales, logistics, and delivery
- Restructuring of unprofitable divisions
- Reduction of indirect material costs
- Thorough business process streamlining by driving Digital Transformation to cope with the natural decrease in personnel
- Pharmaceutical wholesaling business Expansion of gross profit 5 billion yen
-
- Expanding the number of specialty pharmaceuticals acquired
- Concentrating resources on high-growth and high-profit products
- Improving productivity in sales and delivery
- Dispensing pharmacy business Improving profitability by efficiency 2 billion yen
-
- Strengthening of governance
- Improving efficiency and profitability by promoting Digital Transformation
-
Expansion of the pharmaceutical manufacturing and sales business
Upside potential
-
- Expanding CDMO business for new modalities
-
Growth of new businesses
Upside potential
-
- Creating new businesses through proactive alliances and M&A with companies in fields such as prescription pharmaceuticals, medical devices/materials, reagents, OTC drug, medical IT, and logistics
- Accelerating the expansion of the medical Digital Transformation business
We will implement the above measures to achieve our fiscal 2028 operating profit target of 30 billion yen or more.
First, we aim to generate 6 billion yen in profits by promoting cost structure reforms. In our core pharmaceutical wholesaling business, we aim to increase gross profit by 5 billion yen by enhancing profitability through initiatives such as expanding our portfolio of specialty pharmaceuticals, concentrating resources on high-growth, high-profit products, and improving sales and distribution productivity. In addition, in our dispensing pharmacy business, we aim to contribute 2 billion yen in profits by strengthening governance and improving efficiency and profitability through the promotion of digital transformation. As well as these initiatives, as upside potential, we aim to achieve our profit targets by expanding our CDMO business to accommodate new modalities and vigorously driving the growth of new businesses.
Building on our cash generation capabilities, steadily implementing growth investments and shareholder returns
Capital allocation
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We anticipate total cash inflows of approximately 143 billion yen during the term of the current Medium-term Management Plan. To break this down, we will first secure 68 billion yen from the operating cash flow – which reflects the core earnings power of our business – through stable generation driven by an improvement in the operating profit margin. In addition, while maintaining financial soundness, we plan to reduce cash on hand to improve efficiency and secure 50 billion yen in liquidity. We also plan to secure an additional 25 billion yen through the sale of cross-shareholdings, the securitization of assets, and the utilization of interest-bearing debt.
With regard to cash outflows from these funds, we will allocate at least 50 billion yen, giving top priority to growth investments aimed at establishing pillars for future growth. Specifically, we will invest 10 billion yen in strengthening human resource development, 25 billion yen in enhancing the quality of our logistics operations, and 8 billion yen in upgrading our core systems, with the aim of strengthening our management foundation.
In parallel with these investments in growth, we will ensure the implementation of shareholder returns totaling more than 50 billion yen, aiming to optimize our capital structure through stable dividend increases based on a 4% DOE and flexible share buybacks.
Through the steady implementation of our Medium-term Management Plan 2026-2028, “Soaring into the Next Generation,” our Group is committed to achieving sustainable growth and enhancing its corporate value over the medium to long term.
For details, please refer to the Medium-term Management Plan 2026-2028 "Soaring into the Next Generation."
Notice Regarding the Medium-term Management Plan 2026-2028 “Soaring into the Next Generation
Medium-term Management Plan 2026-2028 "Soaring into the Next Generation."
For details on the Action Plan developed based on verification results of Management Strategy Committee, please refer to the following:
Please refer to the following for past Medium-term Management Plan:
Medium-term Management Plan 2023-2025 "Create the Next Generation"