Subsidiary Reorganization and More Efficient Store Operations

「While expanding the scale of the dispensing pharmacy business through the M&A pursued through the previous consolidated fiscal year, we rapidly advanced integration activities, thereby achieving higher revenue and improved profitability.」

「As a result of proactively pursuing M&A during the previous fiscal year as a measure to strengthen earnings in the core dispensing pharmacy business, the Group increased revenue. Its rapid post-acquisition integration efforts have also contributed steadily to profit growth.」

「The period covered by the medium-term management plan is positioned as a foundation-building period for achieving further growth centered on the dispensing pharmacy business, by completing the post-M&A integration process for newly added Group companies and stores as quickly as possible and raising profit margins and operating efficiency.」

「The company is working to reduce costs, including through the consolidation of administrative functions and cash management functions at head office and the introduction of systems for these functions across each subsidiary, as well as through lower interest costs.」

「March 2023: An absorption-type company split in which ファーマライズ株式会社 was the split company and 北海道ファーマライズ株式会社 was the successor company.」

「In addition, net income attributable to owners of the parent declined year on year, mainly because the company terminated a fixed-term lease agreement in order to operate its head-office-related offices more efficiently and recorded the resulting amount as an extraordinary loss.」

「We will review our operating processes and the Group's organizational structure. Specifically, we will conduct an inventory of operating processes not only for stores but also for head-office functions, undertake a fundamental review, and reduce costs by automating and improving the efficiency of the relevant tasks.」

「③ We will promote improvements to the earnings structure by further strengthening the management base.」

「We will review our operating processes and the Group's organizational structure. Specifically, we will conduct an inventory of operating processes not only for stores but also for head-office functions, undertake a fundamental review, and reduce costs by automating and improving the efficiency of the relevant tasks.」

「This was due to progress in improving profitability through the closure of unprofitable stores and expense reductions, despite the impact of COVID-19.」

「This was due to improved profitability resulting from the closure of unprofitable stores and expense reductions, despite the impact of COVID-19.」

「During the consolidated fiscal year, to consolidate management resources, improve management efficiency and further strengthen the business base, 関西ファーマライズ株式会社, 株式会社エム・シー and 薬ヒグチ＆ファーマライズ株式会社, 3 companies in total, were absorbed and merged effective 1 June 2019, with ファーマライズ株式会社 as the surviving company. In addition, 新世薬品株式会社 and 株式会社ドゥリーム, 2 companies in total, were absorbed and merged effective 1 September 2019, with ファーマライズ株式会社 as the surviving company.」

「Effective 1 September 2019, 新世薬品株式会社 and 株式会社ドゥリーム, 2 companies in total, were absorbed and merged, with ファーマライズ株式会社 as the surviving company. During the six-month consolidated period, to consolidate management resources, improve management efficiency and further strengthen the business base, 関西ファーマライズ株式会社, 株式会社エム・シー and 薬ヒグチ＆ファーマライズ株式会社, 3 companies in total, were absorbed and merged effective 1 June 2019, with ファーマライズ株式会社 as the surviving company.」

「During the three-month period, to consolidate management resources, improve management efficiency and further strengthen the business base, 関西ファーマライズ株式会社, 株式会社エム・シー and 薬ヒグチ＆ファーマライズ株式会社, 3 companies in total, were absorbed and merged effective 1 June 2019, with ファーマライズ株式会社 as the surviving company.」

「An absorption-type merger in which ファーマライズ株式会社 is the surviving company and 東海ファーマライズ株式会社, 北海道ファーマライズ株式会社, 株式会社エシックス and 株式会社フォーユー are the absorbed companies.」

「③ We are promoting improvements to the earnings structure by reviewing operating methods and the Group's organizational structure.」

「We will accelerate steady growth through the continued opening of stores and pursuit of M&A, subsidiary reorganization, and expansion of non-dispensing businesses.」

「Effective 1 December 2017, 株式会社双葉, which operated 8 stores in Kyoto, was absorbed by 株式会社テラ・ヘルスプロモーション, the surviving company, and 有限会社イノセ商事, which operated 1 store in Saitama, was absorbed by ファーマライズ株式会社, the surviving company. On the same date, 1 store operated in Osaka by 新世薬品株式会社 was transferred to 株式会社テラ・ヘルスプロモーション through an absorption-type company split.」

「During the six-month consolidated period, to consolidate management resources, improve management efficiency and further strengthen the business base, 株式会社鬼怒川調剤センター, which operated 1 store in Tochigi Prefecture, was absorbed and merged effective 1 June 2017, with ファーマライズ株式会社 as the surviving company.」

「Effective 1 March 2017, 1 store operated by ファーマライズプラス株式会社 in Tokyo and 1 store operated in Chiba were transferred through a business transfer to 薬ヒグチ＆ファーマライズ株式会社. On the same date, ファーマライズプラス株式会社, which operated 8 stores in Tokyo as of the end of February 2017 excluding the 2 stores above, was absorbed and merged, with ファーマライズ株式会社 as the surviving company. On the same date, 株式会社川口薬局, which operated 3 stores in Hokkaido as of the end of February 2017, was also absorbed and merged, with 北海道ファーマライズ株式会社 as the surviving company.」

「Effective 1 September 2016, 12 stores operated by ファーマライズ株式会社 in Aichi Prefecture, 3 stores in Shiga Prefecture and 2 stores in Gifu Prefecture were transferred through an absorption-type company split to 株式会社みなみ薬局 (now 東海ファーマライズ株式会社). Subsequently, effective 1 October 2016, 株式会社みなみ薬局 changed its corporate name to 東海ファーマライズ株式会社.」

「During the first quarter of the consolidated fiscal year, to consolidate management resources, improve management efficiency and further strengthen the business base, 11 stores operated by ファーマライズ株式会社 in Shizuoka Prefecture, 1 store operated in Yamanashi Prefecture and 1 store operated in Aichi Prefecture were transferred through an absorption-type company split to 株式会社みなみ薬局 effective 1 June 2016. On the same date, 3 stores operated by 株式会社みなみ薬局 in Fukushima Prefecture and 1 store operated in Yamagata Prefecture were transferred through an absorption-type company split to ファーマライズ株式会社.」

「As part of measures to improve management efficiency, we have continued to reorganize subsidiaries to improve store operating efficiency and close unprofitable and duplicate stores.」