MEDIPAL HOLDINGS CORPORATION

This report provides a comprehensive overview of the business activities, organizational structure and strategies of the corporate group centered on MEDIPAL HOLDINGS CORPORATION, which operates wholesale and related businesses covering pharmaceuticals, cosmetics and daily necessities, in a format that allows comparison with disclosures for multiple fiscal years. The group has three reportable segments: the wholesale of prescription pharmaceuticals and related products; the wholesale of cosmetics, daily necessities and over-the-counter pharmaceuticals; and related businesses, including the wholesale of veterinary pharmaceuticals and food-processing raw materials. It comprises 32 subsidiaries and 19 equity-method affiliates. Its principal businesses are the sale of pharmaceuticals, cosmetics, daily necessities and veterinary pharmaceuticals, together with related services. Its medium-term vision sets out growth strategies that include overseas expansion, strengthening its digital platform, upgrading its logistics platform and co-creating value in community healthcare. With sustainability initiatives and human capital strategy as core priorities, the group is pursuing changes to its business portfolio and collaboration with partners. It has formulated the "2027 MEDIPAL Medium-Term Vision: Change the Wholesale Forever—Unceasing Transformation—," whose final year is the fiscal year ending March 2027. In pharmaceuticals, priority issues include coordination in community healthcare, upgrading logistics functions, quality management in line with GDP guidelines, responding to the impact of the drug pricing system and improving trading practices. In sustainability, the group has identified six material issues and is setting and monitoring KPIs.