2019 MEDIPAL Medium-Term Vision

2019 MEDIPAL Medium-Term Vision
(April 2016 to March 2019)

(Announced July 29, 2016)

MEDIPAL HOLDINGS CORPORATION (“MEDIPAL”) has formulated its new vision, “2019 MEDIPAL Medium-Term Vision: Change the Oroshi next – Innovate and Create,” covering the three-year period ending March 31, 2019. Details of the vision follow below.

1. Purpose of Formulating the Vision

The MEDIPAL Group formulated a vision, “2017 MEDIPAL Medium-Term Vision: Change the Oroshi – Innovate and Create,” covering the three years ending March 31, 2017, and has innovated existing businesses by enhancing distribution and sales functions as well as created new businesses. As a result, the MEDIPAL Group achieved the profit targets it had set for the fiscal year ending March 31, 2017 one year ahead of schedule, in the fiscal year ended March 31, 2016.

The operating environment of the MEDIPAL Group is undergoing increasingly rapid changes, including the low birthrate and aging of society, healthcare system reforms, and diversification of lifestyles. Amid these changes, we have formulated the “2019 MEDIPAL Medium-Term Vision: Change the Oroshi next – Innovate and Create” to guide the MEDIPAL Group in the next three years (the three years ending March 31, 2019). We will strongly promote further innovation of existing businesses and creation of new businesses, and will capture synergies by making full use of the functions and resources of MEDIPAL Group companies to expand our earnings foundation and achieve sustainable growth.

2. Basic Policy of the Vision

We will expand our earnings foundation and achieve sustainable growth by pursuing a new oroshi business model that benefits society with distribution in the fields of medical care, health and beauty.

3. Management Targets (Year Ending March 31, 2019)

(Billions of yen)

For return on equity, the MEDIPAL Group is aiming for 8 percent or higher.

4. Capital Investment Plan

(Billions of yen)

5. Shareholder Returns

Basic policy:

Our basic policy is to increase shareholder value through sustained growth in profits. While proactively making investments for future growth, we will seek to maintain stable dividends and deliver shareholder returns based on performance.

Dividend policy:

We will maintain stable dividends with a target consolidated payout ratio of 25 percent.