A comprehensive healthcare model covering everything from advanced medical care to everyday healthcare

「Leveraging its supply platform for medical gases, the company identified the needs of medical institutions and focused on developing medical equipment and undertaking outsourced hospital operations. It also worked to strengthen earnings power through direct orders for hospital equipment projects, including operating-room renovations.」

「The Home Healthcare Unit performed well, with increased production and sales of injection needles and steady sales of consumer products by 川本産業（株）. In the Dental Care Unit, handling of dental materials and digital forming equipment for oral healthcare increased against a backdrop of the dental industry's advanced digitalisation, while profit from the equity-method affiliate （株）歯愛メディカル also contributed.」

「Leveraging its supply platform for medical gases, the company identified the needs of medical institutions and focused on developing medical equipment and undertaking outsourced hospital operations. It also worked to strengthen earnings power through direct orders for hospital equipment projects, including operating-room renovations.」

「The company identified needs in medical settings through its medical gas supply infrastructure and focused on developing medical equipment, promoting direct orders for hospital facility construction, including operating rooms, and accepting outsourced hospital operations. It also strengthened its operating structure in businesses closer to consumers' daily healthcare needs, including home healthcare, dental care, sanitary materials, injection needles, aerosols and cosmetics. In the disaster prevention field, it also worked to win construction projects for data centres.」

「Sales of the “Biyoku” shower bathing units for nursing care facilities also expanded steadily.」

「The Medical Products business improved profitability in the medical gas field through price revisions and a review of low-margin projects, and the number of cases involving inhaled nitric oxide therapy expanded steadily. However, the business fell below the level of the same period of the previous year due to the impact of municipal lease contracts for oxygen concentrators ending at the end of the previous fiscal year.」

「The Disaster Prevention business performed steadily as hospital renovation projects increased and demand for data-center fire protection systems expanded.」

「To promote the development, manufacture and sale of medical equipment and nursing-care products that contribute to improving people's health, reducing the burden on healthcare professionals and enhancing the quality of life of patients receiving care at home, without being confined to the traditional boundaries of healthcare, we will consolidate the human resources, technologies and other resources held by our group into a core subsidiary effective 1 July 2023.」

「The services business performed steadily as efforts to acquire new customers by proposing measures to improve hospital operating efficiency resulted in the acquisition of new projects, including pharmaceutical SPD services. The contract sterilization services business also made progress in increasing the number of contracts and improving profitability.」

「The Dental business performed steadily after materials for CAD/CAM crowns became eligible for insurance coverage as inlay materials for cavity treatment from April 2022.」

「Segment revenue was ¥109,637 million, up 106.0% year on year, and operating profit was ¥5,845 million, up 112.5%. Across the business as a whole, in response to the shift in government policy toward living with COVID-19, the company focused on proposing products and services that contribute to stabilizing the healthcare delivery system. As a result, it steadily captured demand for home healthcare for people recuperating at home, renovation work on hospital facilities, and more efficient hospital management through SPD (hospital supplies logistics management), generating higher revenue in all businesses.」

「Although profits were affected by higher raw-material prices in the aerosol and hygiene-materials fields, among others, we maintained higher profits by comprehensively proposing products suited to the needs of medical settings, including leasing medical oxygen concentrators to local governments.」

「Overall business performance improved from the corresponding period of the previous year, when almost all business fields were significantly affected by COVID-19, as the operating environment for the hospital-facing business continued to recover. In addition, by responding to changes in healthcare needs related to COVID-19 treatment, infection prevention and vaccination, and focusing on proposals that address issues in medical settings, the company expanded its medical gas, home healthcare and injection needle businesses, resulting in higher revenue and profit year on year.」

「In this segment, the Company is creating new forms of healthcare by leveraging its comprehensive capabilities across a diverse range of businesses, from the "advanced healthcare" field centred on medical gases and medical equipment to the "healthcare for daily life" field covering dental products and sanitary materials. In response to living with COVID-19, it is further expanding infection-control products and pursuing initiatives that contribute to COVID-19 countermeasures, including supplying oxygen concentrators and installing oxygen supply equipment at so-called "oxygen stations."」

「In this segment, we are creating new forms of healthcare by leveraging the combined strength of diverse businesses, ranging from advanced healthcare centered on medical gases and medical equipment to everyday healthcare involving dental products and hygiene materials. In response to living with COVID-19, we are further expanding infection-control products and supplying medical oxygen concentrators in Japan and overseas, while pursuing initiatives to support people affected by COVID-19. We are also further strengthening our earnings base, centered on the integration and reorganization of group companies and stronger cooperation with regional operating companies. Segment revenue was ¥45,180 million (111.4% year on year), and operating profit was ¥2,221 million (291.5%).」

「NOALON, a telemedicine support system launched in May 2020, received the Japan Power Award at the 10 Best New Products Awards sponsored by Nikkan Kogyo Shimbun. As the novel coronavirus infection spread rapidly, the system enabled specialists to monitor patients' conditions in real time, helping to reduce infection risks for healthcare workers.」

「Although sales of simple negative-pressure devices expanded, the Facilities business faced difficult conditions due to the postponement of hospital facility construction, including operating rooms, and maintenance and inspection work as a result of hospitals' response to COVID-19, particularly during the first half.」

「In the medical equipment business, sales of infection-control products such as ultraviolet irradiation sterilization systems increased. In the home healthcare business, the number of new patients choosing home care to avoid hospital-acquired infections increased, and the business performed steadily. In the hygiene materials business, responding to stronger demand for infection-control products, sales of masks, hand sanitizers and other products expanded across a broad customer base including medical institutions, major mass retailers and drugstores, and the business performed strongly.」

「In addition, sales and rentals of the remote medical care support system NOALON (ノアロン) began in May this year as equipment that helps reduce the risk of hospital-acquired infections among healthcare professionals and patients.」

「As further market expansion is expected with the progression of the super-aging society, we will expand the "medical care in daily life" field by enhancing hygiene materials and oral care products. We will also work to commercialize businesses such as pulp regeneration using dental pulp stem cells.」

「The dental business, where sales of dental materials expanded, and the injection needle business, which modernized its production facilities, both progressed steadily. The new consolidation effect from M&A conducted in the previous consolidated fiscal year also contributed.」

「The medical services business performed well due to new SPD (hospital supplies logistics management) contracts and streamlined materials procurement. The medical equipment business remained solid on increased sales of hyperbaric oxygen therapy equipment and other products. The home healthcare business was in line with the year-earlier period, while the sanitary materials business remained solid as rationalisation of its production plants and other measures progressed.」

「In advanced healthcare, the facilities business was affected by a decline in new hospital facilities projects. However, the medical services business performed steadily through new contracts for SPD (hospital supplies logistics management) and rationalization of materials procurement, while the medical equipment business performed steadily through expanded sales of hyperbaric oxygen therapy equipment and ventilators.」

「In advanced medical care, medical services progressed steadily as the SPD (hospital supplies logistics management) business acquired new customers and rationalized materials procurement, while contract fees in the sterilization business were appropriately adjusted. Medical equipment also remained solid, supported by expanded sales of hyperbaric oxygen therapy systems following revisions to medical reimbursement and an increase in cases using inhaled nitric oxide therapy. Air Water Disaster Prevention Co., Ltd.　International Medical Center Kobe　Medical-related facility　4,400　March 2019 Denken High Dental Co., Ltd.　Head office plant　Head-office office and plant　Comprehensive Technical Development Center　3,660　April 2020 Misawa Medical Industry Co., Ltd.　Head office plant　Medical equipment manufacturing plant　1,614　December 2019」

「Medical services performed well as the SPD (hospital supplies logistics management) business acquired new customers and improved the efficiency of materials procurement, while the sterilization business made progress in bringing contracted rates into line with costs.」

「In medical services, profitability improved in the SPD (hospital supplies logistics management) and sterilization businesses through more efficient procurement of materials, rationalization of center operations and revisions to contract fees, and the businesses performed steadily.」

「In the Healthcare for Daily Life field, which provides products and services in areas closer to consumers, the home healthcare business performed well, while the dental-related and hygiene materials businesses also remained firm. Overseas, the hypodermic needle business expanded sales channels outside Japan through M&A and performed well as a result of process improvements and capital investment to increase productivity. Global Wide, a Singapore-based company specializing in hospital interior fit-outs and facilities construction acquired through M&A, also contributed to performance.」

「In medical services, the SPD (hospital supplies logistics management) business performed steadily, supported by new large-scale orders as well as the rationalization of supplies procurement and more efficient management operations. In the sterilization business, the company proceeded with the development of satellite locations nationwide in line with regional demand. The injection needle business also performed steadily as a result of expanding overseas sales channels and actively promoting capital investment to improve productivity.」

「In medical services, the SPD (hospital supplies logistics management) business performed steadily, supported by orders for large new projects and initiatives to improve profitability. In the sterilization business, construction progressed on sterilization satellite facilities tailored to regional demand, with efforts focused on expanding contract sterilization services carried out outside hospitals. The hypodermic needle business also performed steadily, as expanded overseas sales channels and initiatives to improve productivity produced results.」

「In medical services, the SPD (hospital supplies logistics management) business progressed steadily through the acquisition of new hospital contracts and operational efficiencies. The sterilization services business, which is establishing sterilization satellite facilities nationwide, also remained solid.」

「In the healthcare-related business, in addition to advanced medical fields including acute-care hospitals, which we have focused on to date, we made Kawamoto Sangyo Co., Ltd. a consolidated subsidiary and acquired a capital interest in Ci Medical Co., Ltd. to develop “healthcare for daily life,” delivering products and services in areas closer to consumers. We are building businesses capable of accurately identifying and responding to changing healthcare needs.」

「The healthcare-related business began developing a new business model through aggressive investment via M&A. From the third quarter of the consolidated fiscal year, the Company newly consolidated Kawamoto Corporation.」

「Although the number of hospital equipment projects completed this fiscal year has remained stagnant, the company has been implementing a strategic order-winning program focused on advanced medical care and steadily increasing orders from large hospitals and regional core hospitals.」

「In hospital facility construction, the company implemented strategic order-winning measures focused on advanced medical care and concentrated on projects for large hospitals and other facilities. In medical services, it strengthened the business through distinctive sales strategies, including promoting combined proposals for SPD and contracted sterilisation services.」

「In the healthcare-related business, the company will leverage the group's comprehensive capabilities to establish a healthcare business model unavailable from other companies, covering every area of healthcare from advanced medicine to everyday healthcare.」