Worth reading
74In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
300
¥100 million or more (operating profit target for the fiscal year ending March 2029)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedOperating profit+0.1%
基準 2,025Target2,028100 million
ROIC+3.0pt
基準 2,025Target2,028%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
Operating profit marginNot disclosed → 1.5% or more (fiscal year ending March 2029)
ROENot disclosed → 8% or more (fiscal year ending March 2029)
Only the target level is shown because the current level for comparison was not provided.What happened to the previous planShare repurchases of ¥30 billion (target) → Share repurchases of ¥37 billion (actual)（Approximately 23.3% increase）+23.3%Calculated from the two disclosed figures
Investment amount by sectorField Strengthening human capital / Amount ¥10 billion, Field Qualitative strengthening of logistics functions and other areas / Amount ¥25 billion, Field Upgrades to core systems / Amount ¥8 billion, Field Growth Investment / Amount ¥50 billion or more, Field Shareholder Returns / Amount ¥50 billion or more
Statements about the use of capital
Payout ratio / DOE policyDuring the period covered by this medium-term management plan, the Company will maintain a DOE of at least 4% and a total payout ratio of at least 100%, while implementing stable dividend increases.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Treasury share acquisition policyDuring the period covered by this medium-term management plan, the Company will conduct flexible share repurchases under a policy of maintaining a total payout ratio of at least 100% and a DOE of at least 4%. Shareholder returns will total at least ¥50 billion.
Cost of capitalCost of equity: approximately 6–7%; WACC: 6–7%The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Key initiatives
01Strengthening the profitability of the pharmaceutical wholesaling business
02Improving profitability through efficiency gains in the dispensing pharmacy business
03Expanding the CDMO business to address new modalities
04Rapidly expanding new businesses through diversification of business domains via alliances and M&A, and by promoting healthcare DX
05Implementing company-wide cost-structure reforms
06Shareholder Return Policy
07Capital allocation
08Establishing an aggressive governance structure and other measures to advance the new medium-term management plan
Plan assumptionsThe cost of equity is recognized as approximately 6–7%, WACC of 6–7%, Hurdle rate for growth investments of 8–10%, The assumptions include continued declines in drug prices, limited market growth, continued global inflationary trends, and rising prices and labor costs.
Segment targetSegment Pharmaceutical wholesale business / Target ¥5 billion increase in gross profit; ROIC of 9% in FY2028, Segment Dispensing Pharmacy Business / Target Operating profit of ¥2 billion through efficiency gains and improved profitability; ROIC of 10% in FY2028, Segment Pharmaceutical manufacturing and marketing business / Target ROIC of 6% in FY2028; operating profit has upside potential, Segment New Businesses / Target Operating profit has upside potential
Non-financial targetsIndicator Greenhouse Gas Emissions / Target 60% reduction (from FY2019) / Timing FY2030, Indicator Renewable electricity utilization rate / Target 80％ / Timing FY2030, Indicator Mileage of company vehicles / Target 30% reduction (from FY2024) / Timing FY2030
Risks identified by the company
Continued reforms to the drug pricing, medical reimbursement, and dispensing reimbursement systems
Continued declines in drug prices
Limited market growth
Continued global inflationary trends
Rising prices
Rising labor costs
Increasing geopolitical risks
Paradigm shifts caused by discontinuous advances in technologies such as AI
Declining working-age population
Growing elderly population
The possibility that actual future performance may differ materially from the outlook
Reason for revision or withdrawal
Having achieved certain targets for “building a foundation for the next generation,” the Company will use the “foundation” built during the preparation period as a base for further growth-oriented investment. It will focus on realizing a non-linear increase in operating profit as it enters the “monetization phase.”
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan 2026–2028, “Soaring into the Next Generation” |
| Plan period | April 2026 to March 2029 (fiscal years ending March 2027 through March 2029) |
| Progress against the plan | Formulated |
| Operating profit target | ¥16.5 billion (FY2025 forecast) → ¥30 billion or more (FY2028 target)（81.8% or more） |
| Operating profit margin target | Not disclosed → 1.5% or more (fiscal year ending March 2029) |
| ROE target | Not disclosed → 8% or more (fiscal year ending March 2029) |
| ROIC target | FY2025 forecast: Pharmaceutical wholesaling 5.3%, manufacturing and marketing 2%, dispensing pharmacies 5.7% → FY2028: Pharmaceutical wholesaling 9%, manufacturing and marketing 6%, dispensing pharmacies 10% |
| Payout ratio / DOE policy | During the period covered by this medium-term management plan, the Company will maintain a DOE of at least 4% and a total payout ratio of at least 100%, while implementing stable dividend increases. |
| Treasury share acquisition policy | During the period covered by this medium-term management plan, the Company will conduct flexible share repurchases under a policy of maintaining a total payout ratio of at least 100% and a DOE of at least 4%. Shareholder returns will total at least ¥50 billion. |
| Cost of capital | Cost of equity: approximately 6–7%; WACC: 6–7% |
| Investment amount by sector | Field Strengthening human capital / Amount ¥10 billion, Field Qualitative strengthening of logistics functions and other areas / Amount ¥25 billion, Field Upgrades to core systems / Amount ¥8 billion, Field Growth Investment / Amount ¥50 billion or more, Field Shareholder Returns / Amount ¥50 billion or more |
| Segment target | Segment Pharmaceutical wholesale business / Target ¥5 billion increase in gross profit; ROIC of 9% in FY2028, Segment Dispensing Pharmacy Business / Target Operating profit of ¥2 billion through efficiency gains and improved profitability; ROIC of 10% in FY2028, Segment Pharmaceutical manufacturing and marketing business / Target ROIC of 6% in FY2028; operating profit has upside potential, Segment New Businesses / Target Operating profit has upside potential |
| Non-financial targets | Indicator Greenhouse Gas Emissions / Target 60% reduction (from FY2019) / Timing FY2030, Indicator Renewable electricity utilization rate / Target 80％ / Timing FY2030, Indicator Mileage of company vehicles / Target 30% reduction (from FY2024) / Timing FY2030 |
| Plan assumptions | The cost of equity is recognized as approximately 6–7%, WACC of 6–7%, Hurdle rate for growth investments of 8–10%, The assumptions include continued declines in drug prices, limited market growth, continued global inflationary trends, and rising prices and labor costs. |
| Key initiatives | Strengthening the profitability of the pharmaceutical wholesaling business, Improving profitability through efficiency gains in the dispensing pharmacy business, Expanding the CDMO business to address new modalities, Rapidly expanding new businesses through diversification of business domains via alliances and M&A, and by promoting healthcare DX, Implementing company-wide cost-structure reforms, Shareholder Return Policy, Capital allocation, Establishing an aggressive governance structure and other measures to advance the new medium-term management plan |
| Results under the previous plan | Share repurchases of ¥30 billion (target) → Share repurchases of ¥37 billion (actual)（Approximately 23.3% increase） |
| Reason for revision or withdrawal | Having achieved certain targets for “building a foundation for the next generation,” the Company will use the “foundation” built during the preparation period as a base for further growth-oriented investment. It will focus on realizing a non-linear increase in operating profit as it enters the “monetization phase.” |
| Risks identified | Continued reforms to the drug pricing, medical reimbursement, and dispensing reimbursement systems, Continued declines in drug prices, Limited market growth, Continued global inflationary trends, Rising prices, Rising labor costs, Increasing geopolitical risks, Paradigm shifts caused by discontinuous advances in technologies such as AI, Declining working-age population, Growing elderly population, The possibility that actual future performance may differ materially from the outlook |
| Publication date | 28 April 2026 |
Items this document does not state (6)
Sales TargetNet income targetSelf-assessment of PBR and share priceTotal investment planSize of the Target MarketDate of board resolution
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.Having achieved certain targets under the previous medium-term plan as part of building a foundation for the next generation, the Company will accelerate growth investments based on that foundation and transition to the monetization phase. The Company will strengthen the profitability of its pharmaceutical wholesaling business, rapidly expand new businesses, and transition to a healthcare total solutions provider.
How to read this page
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