The medical industry and medical equipment sales industry surrounding MEDIUS Group face multiple challenges, including reforms to doctors' working styles, policies to control medical costs in anticipation of an aging population, and soaring logistics and medical material costs. Even in this environment, our group has continued to provide a stable supply to ensure that "Persistent Medical Care" and has worked to solve our customers' problems, thereby achieving expansion in sales and market share. Based on this, we have adopted ordinary profit as a key management indicator in our medium-term management plan covering the period from June 2025 to June 2027, and have set a target of 10% annual growth.

While a decline in gross profit margins is expected across the industry, we recognize that securing profits and strengthening management resources is a crucial issue for sustainable growth. Therefore, we are promoting improvements to strengthen existing businesses and enhance profitability. Furthermore, we will continue to expand our business scale through M&A, aiming to improve business efficiency and achieve further growth through the creation of new business models.

Furthermore, in our final financial results for the fiscal year ending June 2025, we achieved operating profits that significantly exceeded our target. In response, we have revised our medium-term management plan using a rolling approach and formulated a new three-year plan covering the period from the fiscal year ending June 2026 to the fiscal year ending June 2028. This plan is based on past performance and is designed to reflect current circumstances.

Our group aims for stable growth through strengthening our unique service proposals, expanding our corporate scale through M&A, efficient resource allocation, and creating synergies, while striving to further enhance corporate value under our management philosophy of "contributing to regional healthcare."

Medium-term Management Plan: FY2026 to FY2028

Main themes and policies

Our company is based on sustainability management with five material issues, and our strengths lie in three areas: M&A, solution tools, and operational efficiency for medical institutions, manufacturers, and internal companies. In this medium-term management plan, we have positioned "structural reform of existing businesses" and "selection and concentration of business investments" as key themes and set out our policies.

Improved business efficiency

Our top priority is to increase profits, and to that end, we will pursue increased productivity in our sales activities in existing regions. Specifically, we will improve sales efficiency by reviewing our sales processes and utilizing sales support tools.
Furthermore, we will refrain from implementing measures that solely focus on increasing sales without accompanying profit growth, and instead strive to streamline all expenses related to business operations.

Improving capital efficiency

We will prioritize investment in M&A and alliance strategies that lead to growth, and will refrain from high-risk, challenging investments or investments that do not lead to improved profits. We will use the PDCA cycle to verify the effectiveness of investment projects and focus on corrective and improvement actions, aiming for early profit contribution.

Human capital strengthening explanation

By strengthening our profit structure, we will reflect this in employee compensation, enhance our recruitment and training, and steadily increase our human capital, which will serve as the foundation for increasing our corporate value in the future.

Strengthening the financial base

We aim to establish a solid financial foundation by improving business efficiency and capital efficiency.

Shareholder Returns

Our basic policy is to secure the necessary internal reserves to maintain stable growth over the medium to long term, while distributing results in line with that growth. We aim to provide stable shareholder returns with a consolidated dividend payout ratio of 30% or more.

Specific strategies that leverage strengths

Our company is based on sustainability management with five material issues, and our strengths lie in three areas: M&A, solution tools, and operational efficiency for medical institutions, manufacturers, and internal companies. In this medium-term management plan, we have positioned "structural reform of existing businesses" and "selection and concentration of business investments" as key themes and set out our policies.

M&A Strategy

Japan's medical device market is expected to grow until 2060 due to the aging society, but a slowdown in the growth rate is becoming an issue. With imports accounting for approximately 60% of our sales, the Japanese market is becoming less attractive to overseas manufacturers due to the slowdown in growth rate and high costs, and dealers are being required to have a wide-reaching distribution network and stable management. In order to become the dealer of choice for manufacturers, MEDIUS Group will expand its distribution network through M&A and alliances. Furthermore, by spinning off and integrating specialized fields, we will aim to build a more efficient management structure and further strengthen our sales capabilities.

Solution

Our clients, medical institutions, are facing increasingly serious management issues, including the need to adapt to work style reforms for doctors, reduced income due to medical cost containment policies, and soaring medical material costs. MEDIUS Group will increase its value by providing multiple solution tools necessary for medical institutions aiming to create a better medical environment and supporting medical and nursing care facilities from various angles. Based on the ASOURCE® database with 1 million master data, we combine multiple solution tools to provide custom-made solutions that meet customer needs, contributing to the efficiency of both medical institutions and dealer operations.

Efficiency

We provide services that contribute to and improve operational efficiency within medical institutions, manufacturers, and group companies. For manufacturers and medical device dealers facing increasing logistics costs and the need to reduce working hours, we undertake inventory management and shipping operations through pickup logistics and 3PL services, contributing to the resolution of logistics challenges. Within the group, we implement management reforms to improve the efficiency of sales activities and enhance customer satisfaction. We promote digitalization to prevent reliance on individual employees and strengthen organizational capabilities, and we also focus on creating an environment and providing training and education that supports employee growth and the development of their abilities.

Foundational Sustainability Management

Under its management philosophy of "contributing to regional healthcare," MEDIUS Group prioritizes addressing global environmental and social issues in its management policy, contributing to the realization of a sustainable society. In particular, it defines important social issues addressed through its business activities as "materiality" and uses this as its guiding principle.

Stable supplying reliable medical and nursing care equipment

As a medical equipment dealer, we aim to select high-quality, safe, and reasonably priced products and provide them promptly and stably. Furthermore, we will build a supply system that can respond to emergencies such as natural disasters and new infectious diseases, and will fulfill our responsibilities and contributions to society together with our suppliers.

Supporting medical and nursing care transform by using our imagination

We provide total solution services that contribute to medical and nursing care management, and contribute to providing information to medical and nursing care sites and improving infrastructure that is suited to local characteristics.

Conserving environment

We will address global warming by reducing GHG emissions and work to realize a circular economy.

Promoting human resource development that leads to value creation

Based on appropriate labor-management relations, we will create a workplace environment and systems that allow diverse human resources to thrive. Through personnel systems and education and training that allow both individuals and the company to grow, we will create a vibrant organization and maximize the value of our human capital.

Balancing sustainable trust and growth

We aim to remain a company that continues to be trusted by society by strengthening governance and risk management, while also achieving sustainable growth in our business.