Strategy by Capitals
Vision
Realizing the ideal organization (fostering of a creative corporate culture and diverse human resources),
ideal human resources (future-oriented human resources), and ideal human resources portfolio
(matching the right person to the right job position)
DATA
Number of Group Employees
13,075
Percentage of female employees in management positions
8.5％
Number of ARs*
Approx.2,400*1
*1Number of personnel who have passed the MR* qualification exam
*AR: Assist Representatives An internal designation given to Marketing Specialists (salespeople for the Prescription Pharmaceutical Wholesale Business), pharmacists and others who have passed the MR qualification exam.
*MR: Medical Representatives Person in charge of drug information at pharmaceutical companies.
Strengths
- ●A shared sense of values emphasized as the standards for making decisions (integrity, morality, and a sense of mission)
- ●Diverse human resources, embodying our management philosophy
- ●An organizational culture that generates diverse business models in the “Pharmaceuticals, Health, and Beauty” business fields
Weaknesses to Overcome
- ●Centralization, visualization, and analysis of HR data
- ●Personnel exchanges among Group companies
- ●Establishing the foundation for Group development targeting systematic, strategic, and sustained development of future-oriented human resources
- ●Increasing the percentage of female employees in management positions
- ●Setting concrete indicators (KPIs) and increasing the sophistication of KPI-based management
Future-Oriented Human Resources
We have defined future-oriented human resources as our vision for the human resources that we need to realize the MEDIPAL Group’s management philosophy. We have also identified six human resource requirements: sharing management philosophy; creativity; understanding the essence; involving others; communication; and analysis, identifying issues, and resolution. Having clarified these requirements, we are actively working to develop future-oriented human resources while reviewing our systems for hiring, training, personnel system, evaluation, and compensation, and are putting into practice measures that will enable the MEDIPAL Group to foster a creative corporate culture and allow full participation by diverse human resources.
◯ Common values
For its human resources, the MEDIPAL Group places great importance on integrity, morality, and a sense of mission as common values and considers these qualities to be the foundations of decision making.
Integrity:
Always take a sincere approach and behave with fairness and honesty
Morality:
Act with general common sense as well as in compliance with laws and industry rules
Sense of mission:
Take responsibility and behave in accordance with what is right for the organization and oneself
Vision
Optimizing the entire supply chain from manufacturing to final consumers
Building the largest healthcare distribution platform in Japan with advanced functionality to provide safe and secure distribution for “Pharmaceuticals, Health, and Beauty”
Improving distribution productivity
DATA
Number of distribution sites
Prescription Pharmaceutical Wholesale Business (ALC*)
13sites
(as of March 31, 2024)
Number of distribution sites
Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business (RDC*)
16sites
(as of March 31, 2024)
Consolidated capital expenditures
¥20.3billion
(FY2023)
*ALC: Area Logistics Center A state-of-art distribution center that supplies prescription pharmaceuticals, medical materials and clinical diagnostic reagents, etc., primarily to dispensing pharmacies, hospitals and clinics.
*RDC: Regional Distribution Center Large-scale distribution centers that handle cosmetics, daily necessities, over-the-counter pharmaceuticals and other items. They supply products to retailers.
Strengths
- ●State-of-the-art nationwide distribution network (ALCs, RDCs)
- ●Safe and secure distribution systems that can deliver in normal times and during emergencies
- ●High delivery accuracy
- ●Quality control systems compliant with the Good Distribution Practice (GDP) guidelines
- ●Distribution systems that are kind to people and the environment (White Logistics Movement)
Weaknesses to Overcome
- ●Preparations for sharing logistics infrastructure
- ●Development of supply chain management for realizing sustainable distribution
- ●Improved productivity and greater logistics efficiency in line with workstyle reforms
- ●Development of efficient and effective distribution systems (shared logistics, modal shifts, home deliveries, unmanned distribution)
Vision
Develop new business models in the “Pharmaceuticals, Health, and Beauty” business fields that meet needs for products that support people’s lives and well-being and create markets
Create new value by developing a borderless supply chain network
DATA
Earnings contributions from new businesses
Gross profit from new businesses
¥8.7billion
(FY2023)
Earnings contributions from new businesses
Development investment programs
Over20programs
(as of March 31, 2024)
Strengths
- ●Insight and execution capable of identifying promising concepts (projects or needs) at an early stage and connecting them to new value creation
- ●Highly efficient and accurate distribution systems to meet diverse needs, and credibility
- ●Synergies between logistics know-how across the Group
- ●Information-gathering and provision capabilities covering medical institutions across the country
- ●Manufacturing technologies for unique materials from natural sources
Weaknesses to Overcome
- ●Enhancement of the business with and in digital
- ●Discernment and knowledge sharing within the organization when evaluating and signing new programs to expand the pipeline in the PFM®* business
- ●Acquisition of expertise in pharmaceutical development procedures
- ●Acquisition of expertise to build overseas sales bases
- ●Discernment when building partnerships in prevention and pre-disease fields
- ●Knowledge relating to DX and oral health in dentistry fields
*PFM®: Project Finance & Marketing A business model in which MEDIPAL HOLDINGS CORPORATION invests in the development of new drugs of pharmaceutical companies in order to share in the risk and return.
Vision
Sustainable growth for the Group by creating of social and customer value through collaboration with partner companies
DATA
Number of CVC investment projects
12projects
Digital health: 4 projects
Drug discovery: 3 projects
Medical equipment: 3 projects
(as of July 31, 2024)
Strengths
- ●Ability to create value through co-creation with partners
- ●Broad nationwide network and strong relationships with municipalities and business partners including manufacturers, medical institutions, pharmacies, and retailers
- ●Cooperation with start-ups and ventures
Weaknesses to Overcome
- ●Investigation and selection of best partners in the field of prevention and pre-disease
- ●Investigation and selection of partners in DX fields
(clarification of selection criteria) - ●Development and disclosure of business schemes to create synergies
Vision
Maximizing Group sustainable growth and corporate value based on optimal capital structure
DATA
Net worth ratio
33.4％
(as of March 31, 2024)
ROE
7.1％
(FY2023)
Total shareholder return ratio
39.2％*1
*1The percentage of return on profit before exclusion of amortization of goodwill and intangible assets accompanying the growth investment in the 2027 MEDIPAL Medium-Term Vision over the cumulative two-year period of the fiscal year ended March 31, 2023 and the fiscal year ended March 31, 2024.
Strengths
- ●Stable financial position
- ●Expanding growth opportunities and diversifying risks through the possession of multiple business segments
Weaknesses to Overcome
- ●Increasing ROE
- ●Reducing the cost of capital
- ●Enhancing financial management, including setting concrete indicators (KPIs)
Capital Policy and Shareholder Returns
In order to generate profits that exceed the cost of capital, we will regularly monitor and verify this cost and pursue an optimal capital structure for the Company while ensuring financial soundness.
Basic Capital Policy
Strive for sustainable corporate growth and maximization of corporate value through business and financial activities founded on the dual focus of increasing ROE and reducing the cost of capital
Vision
Reduction in greenhouse gas emissions by 50% in FY2030 (compared to FY2020), and achievement of carbon neutrality in FY2050
Optimization of entire supply chain and reduction in environmental burden
Realization of management incorporating the opportunities and risks posed by climate change
DATA
Greenhouse gas emissions
(Scope 1*1 and Scope 2*2)
73,575t-CO2
(FY2023)
Percentage of energy from renewable energy
14.5％
(FY2023)
Number of Company-owned electric vehicles
143
(as of March 31, 2024)
*1Direct emissions from Company fuel consumption
*2Indirect emissions from electric power used by the Company
Strengths
- ●Building an optimal distribution model through collaboration with customers
- ●Jointly developing eco-friendly products aimed at expanding ethical consumption
- ●Reducing greenhouse gas emissions during transportation between distribution centers through a modal shift
- ●Improving the efficiency of long-distance relay transportation through collaboration with partners
- ●Implementing operations and recycling to control the volume of waste
Weaknesses to Overcome
- ●Switching to EVs and hybrid vehicles in Company-owned vehicles
- ●Diversifying renewable energy procurement methods
- ●Shortening vehicle running distance per vehicle and operating time of distribution locations
- ●Conducting quantitative analysis of the impact of climate change on management and considering countermeasures in the future
- ●Reducing the environmental burden throughout the supply chain, and improving calculation accuracy and setting targets for Scope 3*3
*3Emissions by other companies from business activities