Worth reading
67In 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
2.7
¥2.7 trillion (consolidated revenue target for the fiscal year ending March 2029)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedROE+2,022.0pt
基準 9Target2,031％
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).
Net SalesNot disclosed → At least ¥2.7 trillion (fiscal year ending March 2029)
Only the target level is shown because the current level for comparison was not provided.Total investment plan¥60 billion (cumulative total for the three-year period)
Statements about the use of capital
Payout ratio / DOE policyThe Company will continue to pay stable dividends each fiscal year and raise DOE to 3.0% by the fiscal year ending March 2029. Total payout ratio will be maintained at a benchmark of 100%.The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Cost of capital6.0％The cost of capital is the minimum rate of return expected by shareholders and banks from the company.
Self-assessment of PBR and share priceAlthough PBR has recently improved to around 1x, the Company does not believe it is yet at a level that fully reflects the cost of capital and future growth potential, and recognizes that there remains room for further improvement.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Evolution into a next-generation pharmaceutical wholesaler
02Redesign of the business portfolio
03Strengthening the management platform
Segment targetSegment Consolidated / Indicator Ordinary income margin / Target At least 1.5% / Timing Fiscal year ending March 2029, Segment Wholesaling business segment / Indicator Ordinary income margin / Target At least 1.0% / Timing Fiscal year ending March 2029
Non-financial targetsIndicator CO2 emissions (Scope 1 + 2) / Target 40% reduction from fiscal 2020 / Timing Fiscal 2030 (fiscal year ending March 2031) / Latest results Fiscal year ending March 2026: 69,397 t-CO2, approximately 21% reduction, Indicator Percentage of Female Managers / Target At least 20% / Timing Fiscal 2030 (fiscal year ending March 2031) / Latest results Fiscal year ending March 2026: 15.2%, Indicator Male parental leave uptake rate / Target Maintain 100% every year / Timing Each year / Latest results Fiscal year ending March 2026: 100.0%, Indicator Compliance training completion rate / Target 100% required every year / Timing Each year / Latest results Fiscal year ending March 2026: 100.0%
Risks identified by the company
Continuation of policies to restrain medical expenditure
Progress in institutional discussions concerning pharmaceutical distribution
Rising proportion of specialty pharmaceuticals
Rising labor and logistics costs
Sustainability of a business model based on the conventional earnings structure
Reason for revision or withdrawal
The business environment has changed significantly due to the continuation of policies to restrain medical expenditure, progress in institutional discussions concerning pharmaceutical distribution, the rising proportion of specialty pharmaceuticals, and increases in personnel and logistics costs. With the sustainability of a business model based on the conventional earnings structure now being called into question, a structural transformation has become necessary.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan (the Plan) |
| Plan period | The 3-year period from the fiscal year ending March 2027 through the fiscal year ending March 2029 |
| Progress against the plan | Formulated |
| Sales Target | Not disclosed → At least ¥2.7 trillion (fiscal year ending March 2029) |
| ROE target | Most recent fiscal year: in the 9% range (including the temporary impact of gains on the sale of cross-shareholdings) → Fiscal year ending March 2029: at least 7.0%; fiscal year ending March 2031: at least 8.0% |
| Payout ratio / DOE policy | The Company will continue to pay stable dividends each fiscal year and raise DOE to 3.0% by the fiscal year ending March 2029. Total payout ratio will be maintained at a benchmark of 100%. |
| Cost of capital | 6.0％ |
| Self-assessment of PBR and share price | Although PBR has recently improved to around 1x, the Company does not believe it is yet at a level that fully reflects the cost of capital and future growth potential, and recognizes that there remains room for further improvement. |
| Total investment plan | ¥60 billion (cumulative total for the three-year period) |
| Segment target | Segment Consolidated / Indicator Ordinary income margin / Target At least 1.5% / Timing Fiscal year ending March 2029, Segment Wholesaling business segment / Indicator Ordinary income margin / Target At least 1.0% / Timing Fiscal year ending March 2029 |
| Non-financial targets | Indicator CO2 emissions (Scope 1 + 2) / Target 40% reduction from fiscal 2020 / Timing Fiscal 2030 (fiscal year ending March 2031) / Latest results Fiscal year ending March 2026: 69,397 t-CO2, approximately 21% reduction, Indicator Percentage of Female Managers / Target At least 20% / Timing Fiscal 2030 (fiscal year ending March 2031) / Latest results Fiscal year ending March 2026: 15.2%, Indicator Male parental leave uptake rate / Target Maintain 100% every year / Timing Each year / Latest results Fiscal year ending March 2026: 100.0%, Indicator Compliance training completion rate / Target 100% required every year / Timing Each year / Latest results Fiscal year ending March 2026: 100.0% |
| Key initiatives | Evolution into a next-generation pharmaceutical wholesaler, Redesign of the business portfolio, Strengthening the management platform |
| Reason for revision or withdrawal | The business environment has changed significantly due to the continuation of policies to restrain medical expenditure, progress in institutional discussions concerning pharmaceutical distribution, the rising proportion of specialty pharmaceuticals, and increases in personnel and logistics costs. With the sustainability of a business model based on the conventional earnings structure now being called into question, a structural transformation has become necessary. |
| Risks identified | Continuation of policies to restrain medical expenditure, Progress in institutional discussions concerning pharmaceutical distribution, Rising proportion of specialty pharmaceuticals, Rising labor and logistics costs, Sustainability of a business model based on the conventional earnings structure |
| Publication date | 14 May 2026 |
Items this document does not state (10)
Operating profit targetOperating profit margin targetNet income targetROIC targetTreasury share acquisition policyInvestment amount by sectorPlan assumptionsResults under the previous 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.The business environment has changed significantly due to the continuation of policies to restrain medical expenditure, progress in institutional discussions concerning pharmaceutical distribution, the rising proportion of specialty pharmaceuticals, and increases in personnel and logistics costs. A transformation of the business structure has therefore become necessary to secure medium- to long-term earnings power while fulfilling the responsibility of ensuring stable supply.
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