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Medium-Term Management Plan
(Announced January 30, 2008)
Mediceo Paltac has formulated its vision for the Mediceo Paltac Group five years from now, the year ending March 2013, and has drawn up a medium-term management plan covering the three years from April 2008 to March 2011 in order to realize this vision.
Medium-Term Management Plan (Summary) pdf [564KB]

1. Purpose of Formulating the Medium-Term Management Plan

The Mediceo Paltac Group closely follows changes in the market environment and in customer and consumer needs, and is adapting to these changes by proactively promoting innovations to enhance and expand its business. Mediceo Paltac has crafted a five-year vision for the year ending March 2013 that the Group will work to realize through these innovations.

At the same time, Mediceo Paltac has drawn up a medium-term management plan comprising policies and targets for the three-year period ending March 2011. This plan provides common guidelines for the Mediceo Paltac Group to ensure the realization of the vision.
The Mediceo Paltac Group will continue to carry out innovations based on this medium-term management plan to become an even more dynamic corporate group with growth potential.

Prescription Pharmaceutical Wholesale Business (Mediceo Business)
The Mediceo Paltac Group will promote business innovations designed to maximize efficiency and customer satisfaction while adapting to changes that include healthcare system reforms and the growing need for enhanced functions to ensure a stable and uniform supply of prescription drugs and other life-related products.

Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business (Paltac Business)
The Mediceo Paltac Group will promote business innovations to achieve enhanced functions at a low cost as consumer needs change, with more new products on the market and shorter product life cycles, and customers require a higher level of in-store support (store solutions).

2. Five-Year Vision (For the Year Ending March 2013)
Net Sales 3 trillion yen
SG&A Ratio 6.2% or lower
Operating Margin  1.8% or higher
3. Medium-Term Management Plan (April 2008 to March 2011)
(1) Basic Policy
Aim to be a corporate group with growth potential by developing new wholesale functions to maximize customer satisfaction.

(2) Medium-Term Business Policies of Prescription Pharmaceutical Wholesale Business (Mediceo Business)

Medium-Term Business Policies:
  1. Offer solutions that increase customer satisfaction.
  2. Strengthen logistics to create and broaden our demand chain.
  3. Contribute to the market penetration of prescription pharmaceuticals with a focus on new drugs.
  4. Diversify revenue sources using merchandise strategies.

(3) Medium-Term Business Policies of Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business (Paltac Business)

Medium-Term Business Policy:
Intermediate Distribution Innovation
--Enhance Our Top-Level Functions as a National Wholesaler--
Maximize customer satisfaction and minimize distribution costs with the following measures:
  1. Improve store solution functions and create new sales functions.
  2. Aim for one-stop distribution to help customers reduce costs (contribute to supply chain management).
  3. Expand our multi-channel wholesaling model nationwide.
  4. Enhance profitability by reducing costs and increasing productivity.
  5. Create a solid business foundation with the aim of aggressive growth.

(4) Consolidated Performance Targets (Year Ending March 2011)
for 11 Consolidated Subsidiaries

Net Sales 2,695 billion yen
SG&A Ratio 6.75% or lower
Operating Margin  1.53% or higher
(5) Dividend Policy (Year Ending March 2011)
Aim for a payout ratio of 25%.
Note: The payout ratio target has been set excluding goodwill (SG&A expenses) and negative goodwill (non-operating income).
4. Management Philosophy and CSR
Management Philosophy
We will contribute to people's health and the advancement of society through creation of value in distribution.
CSR
  1. Close attention to compliance, pharmaceutical management, disaster prevention, information management, and environmental preservation
  2. Improvement of work attitudes as an honest company with a strong sense of ethics
  3. Universal service and response to emergencies in pharmaceutical supply.
For reference: Consolidated subsidiaries (as expected on April 1, 2008)

Prescription Pharmaceutical Wholesale Companies (9):

SENSHU YAKUHIN CO., LTD.
USHIODA KURAYA SANSEIDO Inc.
KURAYA SANSEIDO Inc.
YAMAHIRO KURAYA SANSEIDO Inc.
HEISEI YAKUHIN CO., LTD.
IZUTSU KURAYA SANSEIDO Inc.
EVERLTH Co., Ltd.
ATOL Co., Ltd.
MEDICEO MEDICAL CO., LTD.

Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Company:

PALTAC KS CORPORATION

Related Business Company:

KURAYA KASEI, INC.

Medium-Term Management Plan (Summary) pdf [564KB]
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