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Management Policy

Management Policy

(1)Basic policy of company management

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, demand in Japan is on the road to recovery, as vaccination and other responses to the new coronavirus (“new coronavirus”) have improved the situation of outpatients refraining from seeing doctors and postponing non-urgent surgeries and procedures.Demand recovery is expected to continue in the future due to deregulation of new coronas and other factors, such as the revision of the position of new coronas under the Infectious Disease Control Law to category 5 in May 2023.Overseas, demand for medical equipment has been growing steadily against the backdrop of the global aging of society, increasing health consciousness, expectations for advanced medical care, and rising demand in emerging countries, and this trend is expected to continue in the future.Even in this environment, the outlook for the medical equipment market is that the medical DX trend will demand a reduction in the burden on medical workplaces and more efficient medical services through online medical care and the use of collected and analyzed data, and the provision of optimal solutions to meet these demands is expected to become increasingly important.

(3) Medium-Term Management Strategy

Our group aims to realize our long-term vision, which defines our ideal state in 2030 as “to become a company that supports further improvement of the health and quality of life (QOL) of people around the world by creating new value that anticipates the future of medicine.” 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, and transform ourselves into a company with long-term durability, while taking on the challenge of creating a sustainable society by expanding our circle of activities in cooperation with our stakeholders.

>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 areas: Infusion and Nutrition, Dialysis, Cardiovascular, and Transfusion.

Based on the business environment described in (2) above, the business and financial issues that the Group must address on a priority basis in order to implement the management policies and medium-term management strategies described in (1) and (3) are as follows by area.

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 the infusion area, by providing a total system 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, by becoming a total coordinator of nutrition therapy from nutrition management to rehabilitation and recovery, we will establish unshakable We will continue to establish our credibility in the medical field.In addition, we will accelerate the expansion of our domestic market share by concentrating management resources in the oncology field and promoting overseas development, aiming to expand earnings as a global mainstay business.

Dialysis

While comprehensive community support and service delivery systems are being promoted and a shift to home medical care is underway, in the field of dialysis, we aim to be a provider of safe, reliable, and advanced dialysis treatment that contributes to improvement of patients' QOL 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 Japanese dialysis treatment in China and marketing our products to Asian countries where chronic kidney disease is on the rise.

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.

Transfusion

In the blood field, we are working to become an indispensable manufacturer in each process "from blood collection to transfusion" through the manufacture and sale of high-quality products. In the cell field, we are developing devices necessary for "from 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

The Group aims to expand its business over the medium to long term with an overall balance of growth, profitability, efficiency, and stability, and considers net sales, operating income, and ROIC (return on invested capital) to be important management indicators. In the medium-term management plan that we are currently formulating, we will set targets for these management indicators and work to transform ourselves into a company with long-term durability in line with the basic policies and initiatives outlined in our medium-term management strategy.