2027 MEDIPAL Medium-Term Vision

Outcomes and Issues of the 2022 MEDIPAL Medium-Term Vision, the Previous Medium-Term Vision

2022 MEDIPAL
Medium-Term Vision
(April 2019–March 2022)
Basic policy

We will expand our earnings base and achieve sustainable growth by
building new frameworks that benefit customers and society.
Key
strategies

Establishing business partnerships
Create new frameworks

Expansion of new businesses
Strengthen the earnings foundation

Innovation in existing businesses
Resolve customer issues and increase productivity

Strengthening human resources
and evolving our organization
Management
targets
Main
outcomes
  • ●Strengthened cooperation with start-ups through establishment of a corporate venture capital (CVC)
  • ●Used expertise in advanced temperature-controlled logistics to transport COVID-19 vaccines
  • ●Launched collaborative SDG and environmental, social, and governance (ESG) distribution initiatives with customers
    (MEDICEO CORPORATION, EVERLTH Co., Ltd., ATOL CO., LTD., and PALTAC CORPORATION)
  • ●Promoted human resource exchanges with Group companies and partner companies
  • ●Promotion of health and productivity management
  • ●Enhanced compliance management
Issues
identified
  • ●Growth investment results fell short of plan (¥48.0 billion vs. plan of ¥100.0 billion)
  • ●Established sales structure in response to changes in product characteristics of pharmaceuticals (shift from primary to specialty drugs)
  • ●Strengthened and expanded initiatives in response to the need to extend healthy life expectancy and increased interest in prevention and pre-disease
  • ●Responded to change in role required of MSs*
    Connected fragmented information (government, medical institutions, patients)
  • ●Responded to diversification of logistics needs
  • ●Responded to diverse work styles and promoted diversity and inclusion
  • *¹Gross profit from new businesses that use the MEDIPAL Group’s nationwide infrastructure and human resources. Includes profit from the sale of related products.
  • *MS：Marketing Specialist Person in charge of sales in the Prescription Pharmaceutical Wholesale Business.

2027 MEDIPAL Medium-Term Vision

We formulated the 2027 MEDIPAL Medium-Term Vision, “Change the Oroshi Forever -Constant Innovation-” in October 2022 as the Medium-Term Vision for the five years beginning in the fiscal year ended March 31, 2023 and ending in the fiscal year ending March 31, 2027, and are pursuing the strategies in this vision.

Overall Growth Image

We will carry out the following five growth strategies through business portfolio prioritizations and collaboration with partners.

  • ①Expansion of Overseas Business
  • ②Expansion of Prevention and Pre-disease Business and AGRO & FOOD Business
  • ③Enhancement of the Business with and in Digital
  • ④Building Sustainable Logistics
  • ⑤Value Co-creation in Community Healthcare

Our human resources strategy and financial strategy are the foundation of our growth strategies. We will create social value and customer value through execution of our strategies to achieve the sustainable growth of the MEDIPAL Group.
To realize the Medium-Term Vision, we designated new businesses, the medical devices and reagents business, and the Animal Health Products and Food Processing Raw Materials Wholesale and Related Business as priority businesses. By intensively investing management resources in these priority businesses, we aim to grow their share of ordinary profit to approximately 50% in the fiscal year ending March 31, 2027 from approximately 30% in the fiscal year ended March 31, 2022, and to achieve ordinary profit of ¥100 billion. Our core businesses consist of the Prescription Pharmaceutical Wholesale Business—the Group’s largest business that provides a stable supply of products that are indispensable to people’s daily lives—as well as the Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business. We will expand both of these core businesses, while also increasing added value and productivity further.