Gaining Market Share in the Tokyo Metropolitan Area and Strengthening Regional Sales Operations

「During the current interim consolidated accounting period, sales of operating-room-related products and other products were strong as the number of cases increased. Net sales and gross profit also increased compared with the previous interim consolidated accounting period, owing to the inclusion of results from マコト医科精機㈱, which became a subsidiary in March 2024, and expanded sales by ㈱アルセント.」

「The Company decided to carry out this organisational restructuring after determining that integrating the management resources of the two companies and building a more comprehensive medical-equipment sales structure would accelerate share gains in Yamanashi Prefecture and enable the provision of better medical care.」

「The purpose is to further enhance the enterprise value of the Group as a whole by strengthening its sales platform in Yamanashi through Group synergies, including business scale expansion and greater cost efficiency in purchasing operations.」

「Sales of COVID-19-related products such as diagnostic reagents and PPE (personal protective equipment) declined for consumables. However, sales of operating-room-related products, mainly in orthopaedics, expanded, resulting in solid performance compared with the same quarter of the previous year and increases in net sales, gross profit and segment profit.」

「Although selling prices of surgical products, particularly in the cardiovascular field, declined following revisions to reimbursement prices, the recovery in case volumes and expanded sales at new facilities contributed to higher revenue. In addition, sales related to SPD contracts obtained in the previous fiscal year and increased share among existing customers resulted in higher net sales and gross profit year on year.」

「In maximising the value we provide, our core region is the Tokyo metropolitan area, centred on Tokyo, Japan's largest market.」

「The Company also acquired all shares of 佐野器械㈱ and made it a consolidated subsidiary.」

「Based on a resolution of the Board of Directors dated 20 April 2021, the Company established アクティブメディカル分割準備株式会社 as a wholly owned subsidiary effective 19 May 2021. Subsequently, effective 1 October of the same year, it transferred to the newly established company the assets and liabilities, contracts and other rights and obligations related to the Hokkaido business of 株式会社アクティブメディカル through a company split (absorption-type company split).」

「佐野器械 operates a medical-equipment sales business in Kyoto and Shiga prefectures, the Keiji region. Its strength is handling products in the endoscopy field, and it has long-standing relationships with customers and business partners. The Company decided to acquire its shares because it believes that making the company a subsidiary will further expand the Group's sales area and strengthen its management platform.」

「At a meeting of the Board of Directors held on 20 April 2021, the Company resolved to establish アクティブメディカル分割準備株式会社 as a wholly owned subsidiary effective 19 May 2021 (the "Active Medical Hokkaido"), and subsequently, effective 1 October of the same year, to transfer to the newly established company the assets and liabilities, contracts and other rights and obligations related to the Hokkaido business of 株式会社アクティブメディカル through a company split (absorption-type company split).」

「Although sales of consumables in the medical-equipment sales business were affected by a decline in surgical cases resulting from the spread of COVID-19, sales and gross profit increased year on year because of higher sales following the acquisition of SPD contracts and new customers, the establishment of new sales offices, and the integration with ㈱アクティブメディカル.」

「The Tokyo metropolitan area, centred on Tokyo, Japan's largest market, is our core region. We will continue to make active proposals to medical institutions in the Tokyo metropolitan area, using the expertise and information network we have developed to date and combining medical-equipment sales with various solution tools, including the Group's logistics management system, the operating-room support program "SURGELANE," the material-price optimisation support system "meccul®," and the operating-room information management system "MORISS," thereby contributing comprehensively to the provision of a high-quality medical environment and improvements in hospital management. We also plan to gain market share by strengthening sales to medical institutions providing acute care and focusing on minimally invasive surgery. At the same time, we will further solidify our operating structures in the Tokai, North Kanto, Tohoku and Hokuriku regions.」

「Following the acquisition of all shares of ㈱アクティブメディカル effective 31 March 2020, the Company included it in the scope of consolidation from the third quarter of the current fiscal year.」

「アクティブメディカル operates primarily in the cardiovascular field in the Tokyo metropolitan area and Hokkaido. The Company decided to acquire its shares after determining that making it a subsidiary would expand its sales share in the cardiovascular field in the Tokyo metropolitan area and further improve procurement capabilities, while also helping to enhance the enterprise value of the Group as a whole through sharing expertise and making mutual use of customer bases.」

「株式会社栗原医療器械店 decided to acquire the shares of アイテックスメディカル株式会社 because making it a subsidiary is expected to generate integration synergies, including improved market responsiveness in the region through expanded distribution channels in Chiba Prefecture.」

「For the fiscal year ending June 2020, we will continue to work to strengthen sales capabilities in the Tokyo metropolitan area, while further strengthening the business platform for medical-equipment sales by developing new customers, expanding scale and complementing regional coverage.」

「株式会社オズ, a consolidated subsidiary of the Company, absorbed ヴィッツジャパン株式会社, its wholly owned subsidiary, effective 1 October 2018.」

「株式会社オズ expects integration synergies from making ヴィッツジャパン株式会社 a subsidiary, including stronger sales capabilities in the arrhythmia field and improved market responsiveness in the region through expanded distribution channels in Shizuoka Prefecture, among other benefits.」

「In July 2018, to strengthen sales capabilities in the Hokuriku region, the Company acquired an additional 90.5% of the shares of ㈱ミタス (bringing its ownership to 100%) and acquired 100% of the shares of ディーセンス㈱.」

「We decided to make Mitas and D-Sense subsidiaries because we concluded that the integration would enable us to further enhance the value of the group as a whole by expanding its business scale, improving the cost efficiency of procurement operations, and strengthening the companies’ sales platforms in the Hokuriku region through group synergies.」

「Our basic policy is to further promote sales of medical materials by expanding services for healthcare institutions, including the operating-room support software “SURGLane®” and the medical materials database and analysis service “meccul®,” while expanding our business through M&A. We are pursuing continued growth by developing the group primarily in the Tokai, Tokyo metropolitan, and North Kanto regions, as well as in the Tohoku area.」

「The Group will continue to make proactive proposals to medical institutions in the Tokyo metropolitan area to gain market share, while further strengthening its operating base in the Tokai, northern Kanto and Tohoku regions.」

「Using the expertise and information network developed to date, the Group will continue to make proactive proposals to medical institutions in the Tokyo metropolitan area as a company capable of contributing comprehensively to hospital management improvements, not only through medical equipment sales but also through hospital logistics management systems, medical materials databases, medical materials consumption analysis and hospital management seminars. The aim is to gain market share while further strengthening its operating base in the Tokai, northern Kanto and Tohoku regions.」