Expansion of the SPD Business Leveraging the Logistics Platform

「At 山下医科器械株式会社, a core operating subsidiary, we are exploring the future form of a distribution center focused on efficiency and labor saving in anticipation of future business expansion. We are actively introducing material-handling equipment, including automated warehouses, transport robots and warehouse management systems, and are working to build a logistics system that combines greater operating efficiency through automation with improved working conditions.」

「Yamashita Medical Instruments Co., Ltd. — New Tosu TMS Center (provisional name) (Saga Prefecture, Tosu City) — Medical equipment sales business — Sales facilities, etc. — 2,173 — 914 — Internal funds — March 2024 — March 2027」

「At Yamashita Medical Instruments Co., Ltd., a core operating subsidiary, we are exploring the future structure of our distribution centers with a focus on efficiency and labor reduction in anticipation of future business expansion. We are actively introducing material-handling equipment such as automated warehouses, transport robots, and warehouse management systems, with the aim of building a logistics system that achieves both operational efficiency through automation and improved working conditions.」

「Yamashita Medical Instruments Co., Ltd. — New Tosu TMS Center (Saga Prefecture, Tosu City) — Medical equipment sales business — Sales facilities, etc. — Undecided (Note) — None — Internal funds — None — None — Improvement in logistics function quality」

「As Yamashita Medical Instruments Co., Ltd. plans to open a new distribution center on the site of its Tosu TMS Center, we recorded an extraordinary loss of ¥200 million as an impairment loss on the remaining book value of the existing buildings and other assets on the site,」

「Even amid the COVID-19 pandemic, while working to prevent employee infections, we will take every possible measure to maintain our logistics operations, centered on the MAL (Medical Active Logistics) Division of our core subsidiary, and secure a stable supply of medical materials. We will also effectively leverage the Group's logistics network to strengthen our competitiveness in logistics through further efficiency improvements and faster customer response.」

「Against this backdrop, in response to changes in global supply conditions caused by the COVID-19 pandemic and to meet demand from medical institutions accurately, we strengthened logistics management, centered on the MAL (Medical Active Logistics) Division of our core subsidiary, and worked to secure a rapid and stable supply of medical materials, including through the SPD business.」

「Against this backdrop, we strengthened sales in product areas such as advanced medical equipment, including diagnostic and operating-room equipment for acute-care medical institutions, and minimally invasive treatment equipment, including endoscopy-related products. We also worked to strengthen the stable supply system for medical materials, including through the SPD business, in order to respond accurately to demand from medical institutions. As a result of these sales efforts, sales of key product areas such as medical equipment and fixtures gradually recovered in the second half, and cumulative sales in the general equipment area for the third quarter exceeded the corresponding period of the previous year, with cumulative sales for the medical equipment sales business as a whole continuing above the previous year's level.」

「We are working to increase the Group's market value by supporting the management of medical institutions through initiatives including the promotion of the SPD business using our extensive logistics network, proposals for medical information systems such as electronic medical record systems, and new-clinic launch support for opening, relocating, or refurbishing clinics.」

「To provide firm support to medical institutions working to combat COVID-19, we will take comprehensive measures to maintain our logistics operations even as infections spread, centered on the MAL (Medical Active Logistics) Division of our core subsidiary, while preventing employee infections, and will ensure a stable supply of medical materials to medical institutions. We will also leverage our logistics network to strengthen our competitiveness in logistics by further improving efficiency and speeding up customer response.」

「Against this backdrop, our group is actively working to strengthen sales in key product fields, including advanced medical equipment and minimally invasive treatment equipment, within its core medical equipment distribution business, while continuing to promote the SPD (Supply Processing & Distribution) business.」

「In particular, to strengthen our core medical equipment distribution business, we are actively working to expand sales in key product fields such as advanced medical equipment and minimally invasive treatment equipment, while continuing to promote the SPD (Supply Processing & Distribution) business.」

「In particular, in our core medical equipment distribution business, we are actively working to expand sales in key product fields, including advanced medical equipment and minimally invasive treatment equipment, as well as promote the SPD (Supply Processing & Distribution) business, with the aim of strengthening our business platform.」

「In the logistics function, we established the MAL (Medical Active Logistics) Division as the overseeing department from this fiscal year and have been working to promote the SPD business, improve profitability, further enhance logistics efficiency, and reduce costs. These initiatives have improved productivity in the logistics function.」

「In addition, in June 2018, we established the MAL (Medical Active Logistics) Division to oversee the logistics function. The division is working to promote the SPD (Supply Processing & Distribution) business, improve profitability, and enhance logistics efficiency and reduce costs by strengthening coordination between distribution centers and SPD centers. As a result of these and other initiatives, net sales exceeded the cumulative results for the same period of the previous year in all 5 business areas, including the general equipment field.」

「In addition, in June 2018, we established the MAL (Medical Active Logistics) Division to oversee the logistics function. The division is working to promote the SPD (Supply Processing & Distribution) business, improve profitability, and enhance logistics efficiency and reduce costs by strengthening coordination between distribution centers and SPD centers. As a result, consolidated net sales for the cumulative second quarter amounted to ¥29,387 million, up 6.4% year on year. In terms of earnings, operating income was ¥161 million, compared with an operating loss of ¥36 million in the same period of the previous year, owing to higher gross profit from increased sales and the containment of selling, general and administrative expenses through more efficient logistics.」

「In addition, to achieve further logistics efficiency and cost reductions, we established the MAL (Medical Active Logistics) Division in June this year to oversee the logistics function. The division is working to promote the SPD (Supply Processing & Distribution) business, improve profitability, and strengthen coordination between distribution centers and SPD centers.」

「With the Nagasaki Distribution Center now operating at full capacity, we will leverage our highly accurate and efficient logistics infrastructure supported by an extensive logistics network to improve customer convenience by shortening delivery times, reduce logistics costs, and secure a stable supply of products during emergencies, including natural disasters.」

「Amid these circumstances, our group is working to expand its core SPD business by leveraging its robust logistics infrastructure, which enables the rapid and stable supply of products.」