Mid-Term Business Plan
The medical industry and medical equipment sales industry surrounding MEDIUS Group are facing multiple challenges, including work style reforms for doctors, policies to curb medical expenses in light of the aging population, and rising logistics and medical material costs.
Even in this environment, our group has achieved sales and market share expansion by continuing to provide a stable supply to "Persistent Medical Care" and by working to solve our customers' problems. Based on this, we have adopted ordinary profit as a key management indicator in our medium-term management plan covering the period from the fiscal year ending June 2025 to the fiscal year ending June 2027, and have set a target of 10% annual growth.
With a decline in gross profit margins predicted across the industry, we recognize that securing profits and enhancing management resources is an important issue for sustainable growth, and are promoting improvements to strengthen existing businesses and improve profitability. Furthermore, we will continue to expand our business scale through M&A, and aim to improve business efficiency and further growth by creating new business models.
Furthermore, in the fiscal year ending June 2025, we achieved ordinary profit that significantly exceeded our target. In response to this, we have reviewed our medium-term management plan using a rolling method and formulated a new three-year plan from the fiscal year ending June 2026 to the fiscal year ending June 2028. This plan is based on past performance and is in line with actual conditions.
Our group will strive to further increase our corporate value under our management philosophy of "contributing to regional medical care," aiming for stable growth through strengthening our unique service proposals, expanding our corporate scale through M&A, allocating resources efficiently, and creating synergies.
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.
Our top priority is to increase profits, and to achieve this, we will pursue productivity improvements in sales activities in existing regions.
Specifically, we will improve sales efficiency by reviewing sales processes and utilizing sales support tools.
Additionally, we will refrain from measures aimed solely at increasing sales without generating profit growth, and will instead strive to streamline all expenses related to business operations.
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.
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.
We aim to establish a solid financial foundation by improving business efficiency and capital efficiency.
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.
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.
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.
We provide services that contribute to streamlining operations within medical institutions, manufacturers, and group companies, and strive to improve efficiency.
For manufacturers and medical equipment dealers who are being asked to respond to rising logistics costs and reduce working hours, we undertake inventory management and shipping operations through our pick-up logistics and 3PL business, contributing to solving logistics issues.
Furthermore, within the group, we will implement reforms to our business management to improve the efficiency of sales activities and customer satisfaction. We will promote digitalization to prevent work from becoming dependent on individuals and enhance organizational strength, and we will also focus on creating an environment and training that supports employee growth and demonstrates their abilities.
Based on our management philosophy of "contributing to local medical care," MEDIUS Holdings Group places a high priority on addressing global environmental and social issues in our management policy, and contributes to the realization of a sustainable society. In particular, we define the important social issues that we address through our business activities as "materiality" and use this as our guideline.
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.
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.
We will address global warming by reducing GHG emissions and work to realize a circular economy.
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.
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.
Through these strategies, MEDIUS Holdings Groupwill contribute to a sustainable society and achieve growth for itself.