Management Policy

(1) Management Policy

Since its establishment in 1965, under the founding spirit of "For People's Precious Lives" the Group has been striving to accurately identify issues in the medical field and to create and provide value that is truly useful in solving them in order to realize its corporate philosophy of "Being a bridge for the people who give and seek medical care, and to bring smiles to people by contributing to healthy and better lives". Through these corporate activities, the Group's management policy is to operate appropriately and efficiently as a stock company, to secure sound profits and increase corporate value, and to realize the interests and happiness of all stakeholders, including shareholders, patients, healthcare professionals, business partners, and local residents.

(2) Business Environment

In the environment surrounding the Group, stable growth is expected in the medical device market against the backdrop of an aging population, an increase in chronic diseases, and the development of medical infrastructure in emerging countries, in addition to a recovery from the stagnant demand caused by COVID-19. At the same time, however, there is a trend toward more stringent regulations on the safety of medical devices and the need to respond to new regulations, as well as a shortage of human resources in the medical field. Even in this environment, demand is rising for products that meet advanced medical needs, such as home medical care and diagnostic and therapeutic support. In particular, there is a demand for the digitalization of medical care, including online remote and home medical care, the use of collected and analyzed data to reduce the burden on medical workplaces, and the streamlining of medical services through the use of AI (artificial intelligence), etc. As a result, the importance of providing optimal solutions through the integration of medical devices and digital technology is expected to grow in the market.

(3) Medium-Term Management Strategy

Our group has defined its aspiration to be a "solutions company that develops products and services with the constant aim of solving issues in the medical field". In May 2024, we formulated Medium-term Management Plan 2027 under the theme of "Change and Challenge to Create the Future". We will not only improve profitability in the short term, but also enhance our corporate value over the medium to long term by responding to various demands of society, transforming ourselves into a company with long-term durability, and taking on the challenge of creating a sustainable society in cooperation with our stakeholders. In order to realize these goals, we have established the following basic policies and initiatives, and are taking the following actions.

basic policy

1.Profit Structure Reform
To optimize the Group's structure through a fundamental review of the Group's profit structure based on the efficiency of invested capital, and to achieve stable profit generation by executing business strategies that adapt to the market environment in Japan and overseas.

2.Promotion of Globalization
Accelerate global expansion by focusing on allocating management resources and strengthening the structure to capture growing overseas demand and strengthening problem-solving capabilities for customer.

Initiative
Under the basic policy, we will promote four initiatives: "Strengthen business portfolio management", "Strengthening the management base through structural reforms", "Expand global business profit", and "Promotion of Sustainability Management".

>Mid-term Management Plan

(4) Priority business and financial issues to be addressed

The Group's business activities are focused on the development, production, and marketing of products in four main Business Segment: Infusion and Nutrition, Dialysis, Cardiovascular, and Blood Management & Cell Therapy.

Infusion and Nutrition

Needs for medical safety and minimally invasive procedures continue to increase, and demands for cost reductions in medical equipment are accelerating in line with the revision of reimbursement for medical services. Therefore, while leveraging alliances in each business area, in the infusion and nutrition area, we will provide total systems of products that solve the issues of nosocomial infection control, infusion control, and medical accident prevention, centered on infusion pumps that contribute to medical DX, and in the nutrition area, we will provide total nutrition therapy from nutrition management to rehabilitation and recovery. By becoming a coordinator, we will establish unwavering trust in the medical field. In addition, we will aim to expand our earnings as a global mainstay business by concentrating management resources in the oncology area to increase our domestic market share and accelerate overseas expansion.

Dialysis

While comprehensive community support and service delivery systems are being promoted and a shift to home medical care is underway, in the dialysis field, we aim to be a provider of safe, reliable, and advanced dialysis treatment that contributes to improving the quality of life (QOL) of patients and labor saving and efficiency in the medical field. In Japan, we are promoting medical DX centered on dialysis information systems, in addition to raising awareness of selective therapy through our lineup of both hemodialysis and peritoneal dialysis systems. Overseas, we are promoting the spread of excellent dialysis treatment in Japan to China and marketing to Asian countries where chronic kidney disease is increasing.

Cardiovascular

Amid the ongoing reorganization of hospitals by function and specialization in medical treatment due to continuous reductions in medical fees, we are promoting proposals for safety and security to contribute to extending people's healthy life expectancy by accurately responding to customer needs with a total system that combines our unique products and services in the fields of life-saving and intensive care treatment in addition to the surgical treatment area, leveraging our strengths in high reliability based on in-house development, manufacturing and sales, and our product portfolio enhanced through alliances.

blood management & cell therapy

In the blood management & cell therapy area, we aim to develop devices necessary for "From blood collection to transfusion" of blood and cell therapy, and to become an innovation management company in the Blood Management & Cell Therapy Business. In the cell field, we are developing devices that are necessary from the "collection to administration" of blood and cells, and are working to become an innovation management company in the cell and regeneration business.

(5) Target Management Indicators

In its Medium-term Management Plan 2027, JMS aims to achieve Operating profit of 2.5 billion yen in terms of profitability and ROIC (return on invested capital) of 3.5% in terms of capital efficiency as targeted management indicators for the fiscal year ending March 31, 2027, the final year of the plan. In order to promote the restructuring of the business and product portfolio through selection and concentration as part of the structural reform phase of this Medium-term Management Plan, we have set targets that are not focused on Growth Business (sales).