FY2015(Fiscal Year Ending March 31, 2016)

Financial Results（ Securities code： 4775 ）Contact
SOGO MEDICAL CO., LTD

Public Information and Investor Relations Division
Explanation of the appropriate use of financial result forecasts.

Tel: +81-92-713-9181 Fax: +81-92-713-7616
E-mail: ir@sogo-medical.co.jp

These financial result forecasts are based on currently available information.
Actual financial results could differ from these forecasts due to various factors.
（ The amounts are rounded down. ）These presentation materials have been releasedon the following web page:
URL : http://www.sogo-medical.co.jp/english/

Ⅰ. Long-Term Vision

Long-Term Vision

Tackling the Challenges of Achieving
a unique Japanese Healthcare Business Model
We aim to achieve a unique Japanese healthcare business modelthat contributes to the development of a medical system
where people can efficiently receive high quality medical care.

SOGO MEDICAL CO.,LTD. All Rights Reserved

2Realization of a Japanese healthcare business model
Concept
Mission statement

Good Medical Practice through Good Management

We shall work to build a better society through good medical practiceRealization of a Japanese healthcare business model
Creating solutions with our DtoD system and high-value pharmacies to deal
with social issues in the medical and healthcare field
1. Development and expansion of healthcare malls

２．Hospital management support(assist in the building of the integrated community care system)（１）Consulting services for the reorganization of hospital beds (consulting for the specializationand integration of hospital beds to conform to the medical situation)⇒ Targeting 2,000 hospitals, each with 200 or fewer beds, that are having difficultyfinding a successor（２）Support of establising a corporate to promote coordination of local healthcare

３．Create high-value pharmacies

Fully leverage functions and capabilities as a primary care pharmacist⇒ Become a primary care pharmacy that is chosen by local community members

SOGO MEDICAL CO.,LTD. All Rights Reserved【System】

Offices and pharmacies(1) Evolutionary healthcare malls“Community healthcare stations” that play a central role in community development
and the integrated community care system⇒ Create 100 malls by the end of FY2017 and 300 by the end of FY2020(2) New-model healthcare malls (rebuilding the healthcare delivery system)
Healthcare malls that promote the specialization and coordination of healthcare
functions to eliminate inefficiencies in the current medical system̶concentrationof patients with minor illnesses receiving care at sophisticated acute care hospitals(3) Promote support of medical practices carried on by successors(sustain and revitalize local healthcare)
Of the 600 clinics that are having difficulty finding a successor, Sogo Medical aims for a
30% in FY2018 and 90 practices in FY2016

Healthcare Mall
Development
Division(Higashinihon Office)

DtoD
Strategy
Division
Consulting Division

PharmacyManagement
Division3

Healthcare mall goals
Create 100 malls by the end of FY2017(target 22 malls in FY2016)
Create 300 malls by the end of FY2020(target 200 malls by the end of FY2017)

Target 200 malls

Target 22 malls
Expansion

65 malls by theend of the fiscal year

【FY2015】
SOGO MEDICAL CO.,LTD. All Rights Reserved

78 malls by the endof the fiscal year

【FY2016】

100 malls by the endof the fiscal year

【FY2017】4Create high-value pharmacies
Improve added-value as the “healthcare station for all”
by fully leveraging our functions and capabilities as a primary care pharmacist
Leveraging the functions andcapabilities of primary care pharmacists②Improve specialization (expertise)③Improve patient services●Implement at all pharmacies in
FY2016 (currently implemented
at 67% of all pharmacies)●Train pharmacists to deal with cancer
and diabetes●Increase in the number of sport
pharmacists●Provide support to prevent illnesses
from becoming serious●Increase the number of dementia
patient supporters● Healthcare consultation initiatives●Secure fees for supporting
out-patient pharmaceutical services●Secure premium for preventing the
duplication of doses and druginteractions●Promote the use of generics(implement at more than 80% ofpharmacies by FY2016)●Acquire wide-area prescriptions●Coordination between the Japan
Pharmaceutical Association (JPA),
local healthcare liaison office, caremanagers, visiting nurse stations,and others●Urge participation by healthcare
facilities● Train personnel by implementing
various types of training, including
OJT and GOES

●Implement training on handling patients●Promote brown-bag movement andtrace reports●Urge participation by local community①Strengthen support of in-home care

SOGO MEDICAL CO.,LTD. All Rights Reserved

5Ⅱ. FY2015 Financial Results&
Financial Result Forecasts

6

Consolidated financial results
Net sales ¥ 120,776 million （up 11.9％ Y/Y）, Ordinary income ¥ 6,196 million （up 18.5％ Y/Y）
✔ Achieved 15th consecutive fiscal year of sales growth since listing✔ All-time high operating and ordinary income✔ Net income fell 16.5% YoY due to the posting of extraordinary losses✔ Extraordinary losses included ¥1,014 million in impairment losses related to goodwill and other factors（\millions）

FY2011FY2012FY2013

FY2015FY2014FY2015plan

Year-on-year
ChangeOver plan

Change (％)

ChangeChange (％)

Net Sales

80,22286,658103,318

107,945

120,000

120,776

12,831

11.9%

776

0.6%

Operating income

4,848

4,324

5,014

5,017

5,556

6,087

1,069

21.3%

531

9.6%

Ordinary income

4,881

4,343

5,068

5,227

5,500

6,196

969

18.5%

696

12.7%

Extraordinary loss

118

85

70

51

-

1,371

1,319

-

1,371

-

Proﬁt attributable to owners of parent

2,504

2,532

2,856

2,774

3,252

2,318

-456

-16.5%-934-28.7%Net income per share (\)

173.5

175.4

197.8

192.2

216.6

154.6

-37.6

-

-62.0

-

* Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Quarterly net income per share and Net income per share for fiscal years ended March 31, 2015, and before have been calculated adjusted for the stock split.

【Factors behind posting of goodwill impairment loss】●Business plans were revised as earnings performance at three consolidated subsidiaries, in which we recently acquired equity, underperformed initialplans (made at the time of acquisition).
●We calculated the recoverable amount based on future cash flows in the revised business plan. The unamortized goodwill that exceeded therecoverable amount was ¥868 million. This was posted as an impairment loss.

SOGO MEDICAL CO.,LTD. All Rights Reserved

7

FY2015 Net sales / operating income (by business)✔ Sales declined in the medical practice support business but sales increased at existing pharmacies and we garnered benefits
from sales growth owing to the opening of new pharmacies. Reflecting this, net sales rose 11.9% YoY and operating income
grew 21.3%.
（\millions）

FY2013

FY2014FY2015

103,318

107,945

120,776

12,831

11.9

29,77925,811

23,302-2,509-9.7

Consulting

1,672

1,693

1,894

200

11.9 Consulting fees +170, Start-up supporting fees +38

Rental

5,914

5,922

5,465

-456

-7.7 Sales of rental contracts* -927, Rental sales +471

19,113

15,243

11,035-4,207-27.6 Sales of medical equipment -4,236

Others

3,079

2,952

4,905

1,953

66.2 Healthcare information service +1,894

Pharmacies

72,17180,66096,405

15,745

19.5

1,366

1,473

1,068

-405

-27.5 Sogo Medical Supply was sold in August

5,014

5,017

6,087

1,069

21.3

959

1,005

137

-868

-86.3 equipment -29,Healthcare information service operating income +25、SG & A＋324

Pharmacies

4,752

4,805

6,655

1,849

38.5 Profit expansion underpinned by sales growth

Others

-115

-123

-114

9

-

Reconciliation

(582)

(670)

(591)

78

-

Net sales
Medical practice support

Leasing/Installment

OthersOperating income
Medical practice support

ChangeMain factors

Change (％)

Existing pharmacies +7,478, Pharmacies open in FY2014 +2,974,
Pharmacies open in FY2015 +6,009

Gross profit on sales of rental contracts -261, gross profit on sales of medical* Sales are recognized when the company sells leasing contracts and rental contracts to other leasing companies. The company receives lease payments from the original lessee on behalf of the leasing companies, and pays the lease
payments to the leasing companies. The companyʼs income from sales is the difference between the sales price to the leasing companies and the purchase price from suppliers of underlying assets.

SOGO MEDICAL CO.,LTD. All Rights Reserved

8

FY2015 Net sales / operating income (by region)✔ Each region posted an increase in operating income owing to sales growth in the pharmacy business（\millions）

Net sales
Higashinihon
Medical practice support
Pharmacies
Nishinihon
Medical practice support

FY2013

FY2014FY2015

103,318

107,945

120,776

12,831

11.9

36,70039,614

43,838

4,224

10.7

10,177

8,617

7,750

-867

-10.1

ChangeMain factors

Change (％)

Sales of medical equipment -708、Rental +396、Consulting fees +114
Contribution in part from performance at existing pharmacies and26,52230,99736,0885,091

16.4 benefit from the 22 pharmacies opened in the previous fiscal year

27,39028,20533,176

4,970

17.6

9,863

8,420

6,765

-1,655-19.7

Sales of medical equipment -2,147、Sales of leasing contracts +904、Consulting fees +54
In addition to M&A benefits, contribution from performance at existing pharmacies and17,526

19,784

26,4106,626

33.5 benefit from the 16 pharmacies opened in the previous fiscal year

37,23837,79339,905

2,111

5.6

9,150

8,040

6,077

-1,963-24.4

28,08729,75233,8284,075

13.7 Substantial contribution from performance at existing pharmacies

1,989

2,331

3,855

1,524

65.4 Healthcare information service +1,894

Operating income

5,014

5,017

6,087

1,069

21.3

Higashinihon

1,289

842

1,228

386

45.9 Pharmacy sales increased

Nishinihon

1,324

1,510

2,082

571

37.8 Pharmacy sales increased

Kyushu

2,611

2,643

2,854

210

8.0 Pharmacy sales increased

Others

346

620

490

-129

-20.9

(558)

(599)

(568)

31

-

Pharmacies
KyushuMedical practice support
Pharmacies
OthersReconciliation

SOGO MEDICAL CO.,LTD. All Rights Reserved

Sales of medical equipment -1,430、Sales of rental contracts -380、Consulting fees +54

9Medical practice support （Consulting）
Points✔ Sales of general consulting services increased 16.1% compared with the year-earlier period to ¥1,232 million due to higher income
from facility leases such as healthcare malls.
✔ Fees from practice transfer/start-up support increased by ¥30 million compared with the year-earlier period to ¥662 million.
✔ The number of doctors wishing to transfer/start-up practice using the DtoD System has increased by 5,924 persons compared withthe end of the previous fiscal year to 62,429 persons.
Consulting sales (\millions)

Practice transfer/start-up support (instances)

FY2011FY2012FY2013

FY2014FY2015

ChangeFY2011

Change (％)

3,001

FY20124,279

FY20135,066

FY20145,535

FY2015

5,863

ChangeChange (％)

328

5.9%

1,289

1,334

1,672

1,693

1,894

200

11.9%

Transfer support

Consulting

733

806

1,044

1,061

1,232

170

16.1%

Full time

98

74

95

86

90

4

4.7%

Transfer/start-up support

2,903

4,205

4,971

5,449

5,773

324

5.9%

Total

556

528

628

632

662

30

4.8%

Part time

Transfer support

401

348

425

440

435

-5

-1.3%

Start-up support

160

215

314

308

304

-4

-1.3%

Start-up support

78

110

134

131

170

38

29.3%

Consulting

36

52

79

78

68

-10

-12.8%

76

70

67

59

57

-2

-4.4%

Non-consulting

124

163

235

230

236

6

2.6%

DtoD concierge
advertising

Succeed Members

Lease contracts through practice start-up support"Succeed Members" is a membership system throughwhich we provide business information related to private practice.

FY2011FY2012FY2013

FY2014FY2015FY2011

ChangeChange (％)

Lease contracts through

1,376

1,434

1,492

1,567

1,639

72

4.6%

Hospital

576

591

607

651

679

28

4.3%

Lease contracts throughClinic

695

726

767

796

832

36

4.5%

total lease contracts

105

117

118

120

128

8

6.7%

Total

Employed physicians,
othersstart-up support (\millions)practice start-up support toFY2012FY2013

FY2014FY2015

ChangeChange (％)

1,486

1,910

1,864

1,580

1,622

42

2.7%

15.9%

17.6%

15.9%

15.9%

16.3%

0.4%

2.5%

Number of doctors wishing to transfer/start-up a practice using the DtoD System (instances)
FY2011
Doctors registered

32,054FY2012

40,778FY201348,430SOGO MEDICAL CO.,LTD. All Rights Reserved

FY201456,505FY201562,429Change5,924

Change (％)

10.5%

10

Medical practice support（Rental, Leasing/Installment）
Points✔ Rental sales decreased 7.7% compared with the year-earlier period to ¥5,465 million.
✔ Leasing/installment sales totaled ¥11,035 million, a decline of 27.6% YoY, owing to a decline in sale of medical equipment.

RentalLeasing/Installment

Rental sales （\millions）

Leasing sales （\millions）

FY2011FY2012FY2013

FY2014FY2015

ChangeFY2011

Change (％)
Total-4,207-27.6%

7,414

9,458

9,824

8,622

8,690

68

0.8%

Leasing

847

907

954

945

867

-78

-8.3%

Installment

383

445

568

514

554

39

7.7%

Sales of medical equipment

458

2,168

7,767

5,159

923

-4,236-82.1%

-456

-7.7%

Sales of rental contracts*

2,864

1,373

1,650

1,728

800

-927

-53.7%

Sales of leasing contracts*

Rental

4,468

4,422

4,263

4,193

4,665

471

11.2%

Rental assets （\millions）
Number of rental TVs（in thousands）

FY2014FY2015

ChangeChange (％)

8,723

7,985

6,871

5,929

5,177

-752

-12.7%

137

134

133

132

148

16

12.4%

Lease assets （\millions）
FY2011
Total
Lease receivables andinvestment assets

 Rental
Rental of television sets to inpatients

Change (％)

11,0355,465

FY2013

Change15,2435,922

FY2012FY2015

19,1135,914

FY2011FY2014

12,9795,795

Rental assets

FY2013

9,104

7,333

Total

FY2012

Accounts receivableinstallment sales

FY2012FY2013

FY2014FY2015

ChangeChange (％)

3,580

3,498

3,702

3,508

3,277

-230

-6.6%

2,175

2,120

2,014

1,701

1,403

-298

-17.5%

1,404

1,377

1,687

1,806

1,874

67

3.7%

Lease contracts

 Leasing/Installment
Lease and installment sales of medical equipment

FY2011
The company's lease contracts（\millions）
Medical equipment lease contracts
in Japan （\100millions） **FY2012FY2013

FY2014FY2015

ChangeChange (％)

9,347

10,871

11,670

9,928

9,937

9

0.1%

2,604

2,728

3,022

2,259

2,504

244

10.8%

*

Sales are recognized when the company sells leasing contracts and rental contracts to other leasing companies. The company receives lease payments from the original lessee on behalf of the leasing companies, and pays the lease
payments to the leasing companies. The companyʼs income from sales is the difference between the sales price to the leasing companies and the purchase price from suppliers of underlying assets.
** Source: Lease Statistics （Japan Leasing Association）We estimated leasing sales for December 2015.

SOGO MEDICAL CO.,LTD. All Rights Reserved

11

Pharmacies （Sales/Number of pharmacies）
Points✔ 47 new pharmacy openings lifted the total to 576.
✔ 12 pharmacies were opened by doctors to whom we provided practice start-up support and 25 pharmacies were opened
through merger and acquisition.
✔ Sales increased 20.0% from the year-earlier period to ¥95,119 million on contributions from the existing pharmacies,and new openings from the previous and current fiscal years.
Dispensing pharmacies

Pharmacy sales（\millions）
FY2011Total

FY2012FY2013

FY2014FY2015

Change59,062

63,42072,17180,66096,405

15,74519.5%

58,19862,33771,00879,271

95,11915,84820.0%

Prescription drugs

43,68846,21253,06359,346

72,60913,262

22.3%

Dispensing technical fees

14,50916,125

17,94519,92522,510

2,585

13.0%

864

1,082

1,162

1,388

1,285

-102

-7.4%

Dispensing

Non-prescription drugs

Dispensing sales （\millions）
FY2011

Total
Existing pharmacies
Open in FY2014
Open in FY2015
Closed pharmacies

FY2012FY2013

FY2014FY2015

ChangeChange (％)

58,19862,33771,00879,271

95,11915,84820.0%

56,915

61,16369,98775,60583,083

7,478

9.9%

-

-

-

2,871

5,845

2,974

103.6%

-

-

-

-

6,009

6,009

-

1,282

1,174

1,021

795

181

-613

-77.1%SOGO MEDICAL CO.,LTD. All Rights Reserved

FY2011

Change (％)

Pharmacies

366

FY2012417

FY2013493

FY2014FY2015

538

576

ChangeChange (％)

38

7.1%

Newly open pharmacies
FY2011

New pharmacies

FY2012FY2013

FY2014FY2015

ChangeChange (％)

40

53

78

48

47

-1

-2.1%

including new client

13

21

28

20

12

-8

-40.0%

including existing client

17

16

17

19

10

-9

-47.4%

including M&A

10

16

33

9

25

16

177.8%

12

FY2015 financial positions（\millions）
FY2013

FY2014FY2015Main factors

Change66,982

69,811

74,621

4,810

37,04736,584

39,189

2,605

5,873

4,988

6,376

1,387

18,326

17,485

19,6172,131 Increase in dispensing remuneration claims in the pharmacy business（Inventories）

6,475

7,543

6,583

-960 Reduction in pharmaceutical inventory at the end of the fiscal year

Noncurrent assets

29,93433,22635,431

2,205

19,43321,801

23,542

1,741 Buildings and structures＋2,953、Rental assets -756

6,248

6,283

7,034

43,04843,29044,975

1,685

30,35830,10931,237

1,128

2,155

2,903

4,046

1,143 Newly long-term loans payable increased

12,68913,18013,737（Long-term loans payable）

5,191

6,835

9,204

2,368 Newly long-term loans payable increased（Long-term accounts payable-installment purchase）

4,450

3,055

1,938

-1,117 Reflects repayment of installment obligations

15,552

16,572

18,447

1,874

Total net assets

23,934

26,52129,646

3,124

Total liabilities and net assets

66,982

69,811

74,621

4,810

Net assets per share (\)

1,655.7

1,824.1

1,967.1

143.0

Total assets
Current assets（Cash and deposits）（Notes and accounts receivable-trade）（Property, plant and equipment）（Intangible assets）
Total liabilities
Current liabilities（Current portion of long-term loans payable）

Noncurrent liabilities（Interest-bearing debts）

751 Goodwill +581

557

Net income +2,318, Disposition of treasury stock+2,262,

Purchase of treasury stock -708、Dividend payment -629

*Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Net assets per share for fiscal years ended March 31, 2015, and before has been calculated
adjusted for the stock split.

SOGO MEDICAL CO.,LTD. All Rights Reserved

13

FY2015 cash flows（\millions）
FY2013

FY2014FY2015Main factors

Change

7,461

6,051

7,004

953

（Income before income taxes and minority interests）

5,046

5,175

4,824

-350

(Depreciation)

3,522

3,746

3,836

90

34

51

1,014

962

（Decrease (increase) in notes and accounts receivable-trade）-3,468

1,050

-993

-2,044（Income taxes paid）-1,842-2,108-2,559-451

Net cash used in investing activities-5,335-5,296-4,981

314（Purchase of own-used assets）-3,308-3,767-4,233-465（Purchase of property for lease）

-69

-359

-876

-517 Rental assets increased

Net cash used in ﬁnancing activities-1,370-1,637

-635

1,002

（Proceeds from long-term loans payable）

3,650

4,749

6,485

1,735 Newly loans payable increased（Repayment of long-term loans payable）-1,910-3,211-3,001

209

-573

-512

-751

-239

-1,963-2,094-2,092

2

-0

-1

-708

-707 Reflects repurchase of 190,000 shares

-577

-577

-629

-52

Net increase in cash and cash equivalents

755

-882

1,387

2,270

Cash and cash equivalents at end of period

5,851

4,968

6,356

1,387

Investment in plant and equipment-3,378-4,127-5,110-983

Net cash provided by operating activities（Impairment loss）（Repayments of lease obligations）（Repayments of installment payables）（Purchase of treasury stock）（Cash dividends paid）

SOGO MEDICAL CO.,LTD. All Rights Reserved

Reflects posting of impairment losses,
including goodwill impairment loss
Reflect increase in dispensing remuneration
claims in the pharmacy business

14

Financial indicators✔ We posted EBITDA of ¥10,107 million, a growth of 11.7% YoY.
FY2011FY2012FY2013

FY2014FY2015\173.46\175.41\197.82\192.20¥154.65

ROA

10.1%

7.9%

8.2%

7.6%

8.6%

ROE

13.6%

12.3%

12.6%

11.0%

8.3%

9.8%

9.0%

8.4%

8.4%

8.4%

ROI

14.5%

12.3%

13.0%

12.4%

14.6%

PBR

1.1

1.1

1.2

1.8

1.9

PER

8.6

9.5

10.5

17.6

24.7

36.7%

37.8%

35.7%

37.7%

39.5%

Net D/E

0.54

0.43

0.40

0.44

0.41

Dividend per share

\35

\40

\40

\40

¥45

20.2%

22.8%

20.2%

20.8%

29.1%

Net income per share

Proﬁtability

EBITDA margin

Investment

SafetyDividend

Capital adequacy ratio

Dividend payout ratio* ROA=Ordinary income / Average of total assets Average of total assets＝(Total assets at the beginning of FY + Total assets at the end of FY) /2* EBITDA Margin=EBITDA / Sales
EBITDA=Ordinary income＋Interest expense・Discount expense ＋Depreciation Expense* ROI=(Ordinary income＋Interest expense・Discount expense) / (Interest-bearing debts＋Shareholders’ equity)* PBR=The market capitalization / Net assets at the end of FY
The market capitalization＝(Number of shares issued at the end of FY－Number of treasury stocks at the end of FY)×Stock price at the end of FY* PER= The market capitalization / Net income* Net D/E= Net interest-bearing debts (Interest-bearing debts－Cash and deposits －negotiable deposits) / Shareholders’ equity Interest-bearing debts include lease obligations andaccounts payable-installment purchase.
* Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Net income per share, PBR, PER, and dividends per share for fiscal years ended March 31, 2015,
and before have been calculated adjusted for the stock split.
SOGO MEDICAL CO.,LTD. All Rights Reserved

15

FY2015 operating results by region
Pharmacies

Number of doctors wishing totransfer/start-up a practice using the
DtoD System by region

Higashinihon
Kyushu13%
Nishinihon
27%

Higashinihon

KyushuNishinihon

167

166

243

60%

Number of doctors wishingTransfer

to transfer/start-up

supporta practice using the DtoD

(instances)

System (instances) *1*2

Start-up
support(instances)

Lease contracts
through start-up
support（\millions）

Pharmacies
Lease contracts throughstart-up support to total

SucceedOpen in FY2015

Members（M&A）

lease contracts

61,065

5,863

304

1,622

16.3%

1,639

576

47（25）

Higashinihon

36,763

2,507

169

607

19.9%

380

243

17 （5）

Nishinihon

16,211

2,665

98

566

15.9%

459

166

24（20）

Kyushu

8,091

690

37

448

13.5%

800

167

6 （0）

Total

*1: In total 62,429 doctors were registered, including 1,364 doctors not registered in a specific region.
*2: Projects in more than one region are rounded doun.

SOGO MEDICAL CO.,LTD. All Rights Reserved

16Quarterly financial results（by business）✔ In 4Q FY2015, net income totaled ¥200 million. This was due to impairment losses posted in 4Q.
（\millions）

FY2013

FY2014FY2015

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

23,063

26,04725,373

28,83324,896

26,84527,26828,93327,506

29,511

31,45332,304

5,716

8,360

6,194

9,508

5,474

7,150

5,857

7,328

5,387

5,926

5,606

6,382

335

406

324

606

334

419

370

569

377

513

415

588

Rental

1,436

1,291

1,341

1,844

1,085

1,499

1,265

2,071

1,345

1,643

1,162

1,314

Leasing/Installment

3,524

5,628

3,877

6,083

3,275

4,491

3,604

3,871

2,567

2,673

2,690

3,104

419

1,033

651

973

778

739

617

816

1,097

1,095

1,337

1,375

17,031

17,33918,83018,97019,07019,31921,032

21,23821,75323,32625,62025,705

315

347

348

354

351

376

379

366

366

258

226

216

Cost of sales

19,87322,80921,77324,432

21,61823,614

23,57324,33323,65325,365

26,84327,314Gross proﬁt

3,189

3,238

3,599

4,400

3,278

3,230

3,695

4,600

3,853

4,146

4,609

4,989

SG & A

2,352

2,317

2,293

2,450

2,507

2,455

2,413

2,411

2,891

2,891

2,794

2,933

836

920

1,306

1,950

770

775

1,282

2,189

961

1,255

1,814

2,055

-21

322

5

653

-98

284

81

737

-98

111

-334

459

1,010

766

1,497

1,476

1,073

688

1,375

1,668

1,244

1,328

2,252

1,829

-21

-42

-31

-20

-36

-27

-19

-39

-35

-21

-14

-42

Reconciliation

(130)

(126)

(164)

(160)

(168)

(169)

(155)

(177)

(149)

(163)

(88)

(189)

Ordinary income

841

919

1,355

1,952

848

808

1,345

2,225

1,000

1,280

1,848

2,066

Proﬁt attributable to owners of parent

478

471

800

1,105

471

390

796

1,116

544

509

1,063

200

Quarterly net income per share (\)

33.1

32.7

55.4

76.7

32.6

27.1

55.1

77.4

37.4

33.6

70.6

13.0

Net sales
Medical practice support
Consulting

OthersPharmacies
OthersOperating income
Medical practice support
Pharmacies
Others* Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Quarterly net income per share for fiscal years ended March 31, 2015, and before has been calculated adjusted for the stock split.

SOGO MEDICAL CO.,LTD. All Rights Reserved

17Quarterly data summary（\millions）

FY2013
1Q

2Q

FY2014
3Q

4Q

1Q

2Q

FY2015
3Q

4Q

1Q

2Q

3Q

4Q

Consulting sales

335

406

324

606

334

419

370

569

377

513

415

588

Consulting

229

278

214

321

220

267

265

307

255

349

295

332

Practice transfer/start-up support

106

127

109

284

114

152

104

261

122

164

120

256

Practice transfer support

78

74

73

199

83

103

61

193

84

97

75

178

Practice start-up support

10

36

20

67

15

34

28

52

22

53

27

66

DtoD-concierge advertising

17

16

16

17

15

14

14

15

14

13

16

11

2,419

1,766

1,611

1,856

2,820

1,718

1,977

1,560

840

1,887

1,621

1,576
1,302

Number of doctors wishing to transfer/start-up
a practice using the DtoD System （instances）
Practice transfer support （instances）

1,212

1,271

1,445

1,138

1,247

1,396

1,562

1,330

1,434

1,475

1,652

Full time

19

12

12

52

14

18

7

47

14

20

11

45

Part time

1,193

1,259

1,433

1,086

1,233

1,378

1,555

1,283

1,420

1,455

1,641

1,257

74

45

70

125

95

82

68

63

93

66

67

78

1,436

1,291

1,341

1,844

1,085

1,499

1,265

2,071

1,345

1,643

1,162

1,314

397

196

294

762

67

406

229

1,024

279

433

86

0

1,039

1,095

1,046

1,082

1,017

1,093

1,036

1,046

1,065

1,209

1,075

1,314

Lease contracts

2,484

3,001

2,107

4,077

1,389

2,703

2,339

3,495

2,295

2,407

2,397

2,837

Leasing sales

3,524

5,628

3,877

6,083

3,275

4,491

3,604

3,871

2,567

2,673

2,690

3,104

2,030

2,563

1,731

3,499

1,245

2,275

1,961

3,139

1,946

2,160

2,213

2,369

Leasing

229

262

208

253

236

239

230

238

222

220

203

220

Installment

121

135

119

192

121

125

132

134

136

139

137

140

1,143

2,667

1,817

2,138

1,672

1,849

1,280

357

261

152

135

373

436

458

472

493

508

525

530

538

567

574

575

576

19

23

14

22

15

17

7

9

35

7

1

4

1,953

1,928

2,097

2,115

2,201

2,166

2,361

2,368

2,388

2,412

2,594

2,644

Practice start-up support （instances）
Rental sales
Sales of rental contracts*
RentalSales of leasing contracts*

Sales of medical euipment
Dispensing pharmacies (Pharmacies)
New open
Number of prescriptions （in thousands）*

Sales are recognized when the company sells leasing contracts and rental contracts to other leasing companies. The company receives lease payments from the original lessee on behalf of the leasing companies, and pays the lease
payments to the leasing companies. The companyʼs income from sales is the difference between the sales price to the leasing companies and the purchase price from suppliers of underlying assets.

SOGO MEDICAL CO.,LTD. All Rights Reserved18

FY2016 segment targets✔ Aim to open 13 healthcare malls, provide support for 90 medical practices carried on by successors,and open 30 pharmacies.
(instances)

Healthcare mall
(Number at the end of the ﬁscal year）

Result for each fiscal year
Support of medical practices
carried on by successors

Pharmacies(Number at the end of the ﬁscal year）

New pharmacies
M&A

SOGO MEDICAL CO.,LTD. All Rights Reserved

FY2011FY2012FY2013

FY2014FY2015FY2016

Results

Results

Results

Results

Results

Targets

32

36

41

53

65

78

4

4

5

12

12

13

37

47

80

50

74

90

366

417

493

538

576

606

40

53

78

48

47

30

10

16

33

9

25

ー

19

FY2016 Financial result forecasts✔ Sales rose 4.7% YoY. The increase in the medical practice support business offset the negative impact of dispensing
remuneration revisions in the pharmacy business.
✔ Operating income declined by 1.3% YoY as sales did not absorb the increase in SG&A costs.
✔ We estimate an increase in net income of 60.9% YoY owing to the disappearance of special losses.
（\millions）
FY2015Interm

FY2016 Forecast
Full Year

IntermChangeFull Year

IntermInterm (%)

Full Year

Full Year (%)

57,018120,776

59,121

126,507

2,102

3.7%

5,730

4.7%

11,31423,302

12,33328,162

1,019

9.0%

4,859

20.9%

891

1,894

966

2,177

75

8.4%

282

14.9%

Rental

2,989

5,465

3,122

7,320

133

4.4%

1,854

33.9%

Leasing/Installment

5,240

11,035

5,330

11,851

89

1.7%

815

7.4%

Others

2,192

4,905

2,915

6,814

723

32.9%

1,908

38.9%

Pharmacies

45,07996,40546,31397,358

1,234

2.7%

953

1.0%

Others

624

1,068

476

987

-149

-23.9%-81-7.6%

Gross proﬁt

7,999

17,598

8,324

18,222

324

4.1%

623

3.5%

SG & A

5,782

11,511

6,063

12,216

280

4.8%

705

6.1%

Operating income

2,216

6,087

2,261

6,005

44

2.0%

-81

-1.3%

Ordinary income

2,280

6,196

2,254

6,020

-27

-1.2%

-175

-2.8%

Proﬁt attributable to owners of parent

1,054

2,318

1,327

3,730

273

25.9%

1,412

60.9%

71.0

154.6

88.5

248.8

17.5

-

94.2

-

Net sales
Medical practice support
Consulting

Net income per share (\)

SOGO MEDICAL CO.,LTD. All Rights Reserved

20

Ⅲ. FY2015 Medium-Term Management Plans

21

Long-Term Vision

Tackling the Challenges of Achieving
a unique Japanese Healthcare Business Model
We aim to achieve a unique Japanese healthcare business modelthat contributes to the development of a medical system
where people can efficiently receive high quality medical care.

SOGO MEDICAL CO.,LTD. All Rights Reserved

22Medium-term management plan (April, 2014 –March, 2017)“Further Challenge”-Toward a better society in which people can live with a sense of securityWe are striving to build a platform for regional healthcare networks
by leading the industry with our DtoD (Doctor to Doctor) system and high-value pharmacies.

Main priority initiatives

1

Undertaking New Businesses

We will provide support for managing and coordinating medical services ranging from acute medicalcare to in-home care to help build a platform for regional healthcare networks.

●We offer medical management support to major regional medical institutions.
●We provide support for coordinating medical services between major medical institutions andsmaller medical institutions and institutions that provide in-home care for elderly people.

2

Improving Existing Businesses●Medical practice support●Pharmacies

3

We will provide medical support based around DtoD systems by constructing ideal healthcare malls, enhancing
support for starting up practices, improving user services, and expanding stock-style businesses.

P.24

We will create high-value pharmacies by helping pharmacistsʼ fully utilize their skills to enhance coordination
between pharmacies and medical institutions, make medical costs more reasonable, improve in-home medicalcare services and self-health-care support.

P.26

Acting in accordance with our management principle, we strive to always be an organization thatwith its employees and at which employees can take pride in their work and feel a sense of
Expanding to Corporate Value grows
purpose.

●Improve value of human resources

We will strength comprehensive abilities to invigorate employees and help themdevelop their skills.

●Strengthen consolidated governance system

We will make decisions quickly and promote compliance management by revisingand strengthening our management system.

●Improve business efficiency

We will improve business efficiency by reforming companywide operations,reorganizing, and using ICT.

SOGO MEDICAL CO.,LTD. All Rights Reserved

P.29

23

Topics１

Medium-term management plan ②Improving Existing Businesses
Alliance with GM Co., Ltd.
●On February 10, 2016, acquired 75% of outstanding shares in GM Co.,
Ltd., a company which handles the construction of medical facilities, andinstalls and provides maintenance for medical machinery, devices, andinstruments.
●Anticipating synergistic benefits with SOMTECH (planning, design, andconstruction of healthcare and nursing facilities), an existing groupcompany in the area of maintenance for private practitioners that are
newly opening their practice and after they open their practice.

Medical practice support

Number of doctors wishing to transfer/start-up a practice using the DtoD System
Exceeded 60,000 people in total.
28％ of the approximately 210,000 （※）doctors employed in public practice.

56,50562,42948,43040,77832,054*Source: Overview ofDoctors/Dentists/Pharmacists in2014 (Ministry of Health, Labourand Welfare)

FY2011

Healthcare Management seminar（Osaka/Fukuoka: February; Tokyo: March）

Seminar open to owners and top executives of
medical institutions

FY2012FY2013

FY2014FY2015

Clinic-opening seminar
22 seminars were held nationwide from April 2015 to March
2016, with participation by 367 doctors in total.

●Hold lectures on issues such as
dealing with the reorganization of
local healthcare sectors and revision ofreimbursement of medical fees.
●Held in Osaka and Fukuoka in
February and in Tokyo in March.
More than 100 people attended eachseminar.

SOGO MEDICAL CO.,LTD. All Rights Reserved

24Topics２

Medium-term management plan ②Improving Existing Businesses

Medical practice support

Creating the ideal healthcare mall
Medical Mall FUJIMI
Opened April 2015 (Saitama)

MEDICAL Hills KORIGAOKA
Opened September 2014 (Osaka)

Practice support
Start-up consulting, Leasing, Design, Pharmacy Opening,
Facility Leasing, Introduction of doctors, Operation management

Key points●The medical mall is located in a large shopping center, Mitsui Shopping
Park LaLaport Fujimi.
●The medical mall consists of a clinic for several different specialties(including internal medicine, pediatrics, dermatology, gastroenterology,
and rheumatics), an ophthalmic clinic, and a dispensing pharmacy.
●The clinic covering several different specialties can efficiently offer highquality medical treatment by unifying patientsʼ data.
●The medical mall is open weekdays and also on Saturdays, Sundays,
and national holidays.
This is expected to help gather new patients from wide areas,
contributing to the attraction of customers to LaLaport Fujimi.

SOGO MEDICAL CO.,LTD. All Rights Reserved

Practice support
Start-up consulting, Leasing, Design, Facility Leasing, , Pharmacy
Opening

Key points●Internal medicine, ophthalmology, and serviced housing for the elderly.
An orthopedics department was added and initiated in April 2015.
●Cooperative interaction is growing, such as mutual introductions ofpatients of the internal medicine and ophthalmology departments.

25

Topics ３

Medium-term management plan ②Improving Existing Businesses
47 dispensing pharmacies were opened in
the current fiscal year.
The number of dispensing pharmacies stood at 576, as of theend of March 2016.

Pharmacies

Playing a role in eliminating leftover meds!
Full-fledged promotion of the medicine calendar● From February 2016, began offering support for drug administrationand sales with the medicine calendar. Aim to achieve proper drug
therapies and eliminate leftover drugs by actively supporting drug
administration.
● Initially distribute one medicine calendar for free to those patients thatthe pharmacists believes could use the calendar.
(Second calendar will be sold for 100 yen each.)● This is being implemented at all Sogo Pharmacies. It is scheduled to be
implemented at group pharmacies.
● The results of the medicine calendar trial(September-October 2015; 92 pharmacies)(1) Improvement as it helped patients to remember to take their medicine andprevented them from taking the wrong medicine
A survey of 453 patients was implemented. Of this, more than 50%, or 242
patients, said they saw an improvement in how they took their medications.
(2) Elimination of leftover drugs: Improvement in 85 cases, which is equivalent to¥176,000.
(3) Improvement in polypharmacy (taking of multiple drugs), etc.

 Patients as well as family members
and caretakers can check at a glance
to see what drugs the patient is taking
and when they need to be taken.
 Clear pockets let the user partition off
the days and doses for each drug.
 The calendar can be hung on the wall
(size: 52 cm ・ 37 cm)

SOGO MEDICAL CO.,LTD. All Rights Reserved

26Topics ４

Medium-term management plan ②Improving Existing Businesses
A new function was added to the electronic medication
notebook (medical and healthcare information browser service).
●In March 2016, the electronic medication notebook (Healthcare
Notebook®) our group is installing can now be used to browse
medical and healthcare information provided by HOKENDOHJINSHA
Inc. free of charge●Provides up-to-date health information, including well-talked about
illnesses and lifestyle diseases, mental health, healthy recipes, andhealth insurance.
●Currently, the Healthcare Notebook® has more than 28,000 users.
It can be used at group pharmacies, including Sogo Pharmacies,
nationwide.

Pharmacies

Opened the Sogo Pharmacy e-shop on Amazon●In January 2015, opened up Sogo Pharmacy e-shop on Amazon●Also opened up shops on Rakuten Ichiba and Yahoo Shopping.
There are now a total of three online shops.

Sogo Pharmacy e-shop
Amazon store

Adding private-brand products※Healthcare Note® is a trademark of Panasonic Healthcare Holdings Co., Ltd.

SOGO MEDICAL CO.,LTD. All Rights Reserved●Products are jointly developed by senior
nutritionists and pharmacists.
●Glucosamine
・1,000 mg of N-acetylglucosamine, a cartilage
substance, was combined to surpass previously
available glucosamine products
・A new type of chewable glucosamine that iseasy to take daily●Vitamin C + Vitamin P・Pureway C 500 mg, a fat soluble vitamin C
was combined with 50 mg of vitamin P, which
is derived from oranges.
・Daily energy support with a select, sustainable
vitamin C tablet

27

Topics ５

Medium-term management plan ②Improving Existing Businesses
Establishment of advisory for diabetes patients●Since October 2014, pharmacists at Sogo Pharmacies in Tsushima
City, Nagasaki Prefecture, are providing diabetes patients withadvice on drug administration, diet, exercise, and other lifestyleadjustments to help patients prevent their condition fromdeteriorating.
●This is the first such program to support diabetes patients inmanaging their condition commissioned by local government.

Pharmacies“Cancer conversation café”●These meetings provide cancer
patients and their family memberswith a place for frankly expressing
their various thoughts and worries
while having tea.
●Specialist pharmacists (pharmacists
in charge of particular diseases)
participate in the meetings.
●A monthly meeting has been heldat the Sogo Pharmacy Tenjin Chuo shop, since 2013.
●TV coverage of the meetings in September generated many
responses.

Supply trace reports●For information such as the voice of patients, including information on
drug administration and doses, create trace reports to provide feedback
to doctors.
●We plan to improve the quality of patient care by cooperating withmedical institutions.
【Trace report】【Number of trace reports】

More than 70,000 reportsContributing to regional communities as general health stations.
Creating new fields of activity for pharmacists.
FY2011SOGO MEDICAL CO.,LTD. All Rights Reserved

FY2012FY2013

FY2014FY201528

Topics ６

Medium-term management plan ③Expanding to corporate value Improve value of human resources
Increasing the number of female employees
in leadership positions
Starting training for future female managers －in August 2015

●The goals of this training are forfemale employees to learn mental
preparation and the skills required ofmanagerial staff, and to consider aclear life and career plan.

Promoting the hiring of employees with disabilities●Establishing a section devoted to the employment of challenged
people, and concentrating on this section various kinds of work
supporting other sections around the company, including the
preparation of business cards, seals, and other office equipment.
●Aiming to raise our company to an organization that enables
challenged employees to be independent, feel more confident andproud of themselves, and work as valuable assets to the company.

●This training develops humanresources who are expected toexercise real leadership as managerial
staff members and candidates for
those posts in the future.

“Promotion of Career Progression of Women Employees”
Received the Excellence Award from the Director of the
Fukuoka Labour Bureau －in September 2015
● Awarded the Ministry of Health, Labour and Welfare's Equal Opportunity
and Work-Life Balance Promotion Awards in the section of Equal
Opportunity Promotion in 2015.
●Awarded for the following recognized efforts: Developmentof a diversity promotion project, promotion of career
progression of women employees into managerial positions,announcement of the numerical target (increase in the ratio of
women in managerial positions to 30% by March 2017), andcreation of positions with no relocation required (possible
promotion to managerial positions of women who are rearing
their child/children).
SOGO MEDICAL CO.,LTD. All Rights Reserved

Preparing business cards

Enclosing and wrapping PB product samples

In March 2016, selected by Fukuoka Prefecture as acompany devoted to helping the disabled●Fukuoka Prefecture certifies companies that
actively purchase products and services fromfacilities in Fukuoka Prefecture that hiredisabled employees, and which achieve thelegally mandated employment rate inaccordance with the Act on Employment
Promotion etc. of Persons with Disabilities.
●Also became certified in FY2016 .

29

Ⅳ. Management Principles & Business Model

30

Management principles / Concept

Good Medical Practicethrough Good Management
Our business concept is to support good medical practice by resolving themanagement issues faced by medical institutions and helping them realize
sound medical business management by responding to their various needs.
We also seek to practice good management ourselves so we can continue toprovide better services to our customers.

SOGO MEDICAL CO.,LTD. All Rights Reserved

31

Business modelBusiness model
The company will provide comprehensive medical
management support based on consulting services.

SOGO MEDICAL CO.,LTD. All Rights Reserved

DtoD
The company will continuously support regional healthcare
services both actively and efficiently through establishinghealthcare networks.

32

Reference materials(Revision of Reimbursement of Medical Fees in 2016)

SOGO MEDICAL CO.,LTD. All Rights Reserved

33

Revision of Reimbursement of Medical Fees in 2016
Revision of Reimbursement of Medical Fees in 2016
１．Medical fees (core) ＋0.49％

Revision rates

Medical services ＋0.56％
Dental services ＋0.61％
Dispensations＋0.17％

２．Drug price, etc.
①Drug price:－1.22％
In addition, based on the Repricing for Market Expansion Rule:－0.19％
based on special repricing for market expansion for drugs with high-volume annual sales:－0.28％②Material price:－0.11％

In addition to the revisions above, the following measures will be implemented: reduction in the prices of generic drugs
newly listed on the NHI drug price list; review of the replacement rates of long-listed products with generic products towhich the special price reduction rule applies; adjustment of evaluation criteria of large-scale dispensing pharmacies near
hospitals (so-called monzen yakkyoku) and other pharmacies; adjustment of costs of enteral nutrition products provided
as meals during hospitalization; restriction on the number of anti-inflammatory analgesic plasters per prescription interms of the proper use of drugs and from other perspectives; and adjustment of the use of dental materials withlowered cost-effectiveness.

*Source: Excerpts from Ministry of Health, Labour and Welfare material

SOGO MEDICAL CO.,LTD. All Rights Reserved

34

Revision of Reimbursement of Medical Fees in 2016
Basic view on FY2016 medical fee revisions○The medical fee revisions in FY2014 led to progress in the coordination and differentiation in use (functions) of hospital beds. Goingforward, further steps need to be taken.
We believe there is a need to further strengthen primary care functions for outpatient and home healthcare.
○We also believe the use of generics should be promoted further and steps should be taken to set reasonable prices.
○Taking into account the verification of impact from the FY2014 medical fee revisions, we plan to take the following outlook for the
FY2016 medical fee revisions.
Basic outlook on
revisions

Aim to expand the coordination and differentiation in use (functions) of hospital beds, and primary carefunctions, while focusing on innovation and outcome.
⇒ Achieve high-quality, eﬀective healthcare mainly for citizens in the local community

Promote a local comprehensive care system and make further advances in the diﬀerentiation, fortiﬁcation, and coordinationof medical functions, including the coordination and differentiation in use (functions) of hospital beds
Outlook 1○Promote the coordination and diﬀerentiation in use (functions) of hospital beds
○Evaluation of team medicine and improvement of work environment through the use of multiple professions○Secure high-quality home medical and nursing care, etc.

Outlook 2

Realize safe and secure healthcare for patients through the further promotion of primary care medicine, etc.
○Primary care doctors, primary care dentists, primary care pharmacists, pharmacy evaluations, etc.
Enhance medical ﬁelds that require attention

Outlook 3○Evaluation of high quality cancer treatments, including palliative care
○Evaluation of proper healthcare for patients with dementia○Evaluation of innovations and medical technologies, etc.
Boost the sustainability of the system by increasing eﬃciency and optimization

Outlook 4○Review rules for pricing schemes for generics○Implement proper evaluations for pharmacies located in front of large hospitals○Trial introduction of cost beneﬁt analysis (outcome evaluation), etc.
*Source: Excerpts from Ministry of Health, Labour and Welfare material

SOGO MEDICAL CO.,LTD. All Rights Reserved

35

Revision of Reimbursement of Medical Fees in 2016
Summary of FY2016 Medical Fee Revisions
Ⅰ Outlook on promotion of the integrated community care system andⅡ Outlook on the achievement of healthcare for patients that is safe,

the differentiation, fortification, and coordination of healthcare functions

secure, convincing, effective, efficient, and high quality○ Evaluation of in-patient healthcare depending on healthcare functions○ Alleviate burden on medical practitioners and secure manpower by promoting
team healthcare, improving the work environment, and improving operational
efficiency, etc.
○ Strengthen initiatives for promoting the integrated community care system○ Secure high quality home healthcare and visiting nursing care
○ Differentiation of outpatient healthcare functions, which also takes into account○ Evaluation of primary care doctors, primary care dentists, and primary carepharmacists and pharmacies○ Promote the gathering and use of information related to healthcare andmedicine by using ICT○ Promote quick patient recovery of functions, such as through the evaluation ofhigh quality rehabilitation, etc.
○ Promote free print out of detailed billing statements

healthcare insurance reform laws

Ⅲ Outlook on enhancement of medical fields that require attention

Ⅳ Outlook on enhancing the sustainability of precision through an
improvement in efficiency and optimization○ Evaluation of high quality cancer treatments, including palliative care
○ Evaluation of proper healthcare for patients with dementia, taking into accountthe Comprehensive Strategy for the Promotion of Dementia Measures○ Evaluation of high-quality mental healthcare, including extensive support fortransitioning and living in local communities○ Evaluation of proper healthcare for patients with intractable diseases, in light ofthe enactment of the Intractable Disease Law○ Extensive pediatric and perinatal care, and emergency medicine, given theincrease in senior citizens○ Measures to prevent oral diseases from getting severely worse and to deal witha decline in oral functions, promote healthcare that takes quality of life into
account○ Evaluation and reasonable costs by having primary care pharmacists andpharmacies contribute to the management of pharmaceuticals and to home

○ Promote use of and optimize prices for generics, and examine scheme for
evaluating long-listed drugs○ Promote at-home rehabilitation through initiatives, such as hospital discharge
support○ Promote the proper use of pharmaceuticals, including measures to reduce theamount of drugs leftover (went untaken), overlapping doses, improper
administration of multiple drugs, and dosage over a long period of time
○ Review dispensing remuneration to achieve the separation of medical anddispensary (pharmacy) practices that will be beneficial to the patient○ Promote measure to prevent diseases from becoming serious○ Proper evaluation including pharmaceuticals, medical devices, and testing

healthcare, etc.
○ Proper evaluation of innovations and medical technologies, including
pharmaceuticals, medical devices, and testing○ Proper evaluation of acute care that uses the DPC approach
SOGO MEDICAL CO.,LTD. All Rights Reserved*Source: Excerpts from Ministry of Health, Labour and Welfare material

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Revision of Dispensing Fees in FY2016
Newly set fees, including guidance fee charged by primary care pharmacist.
【Current fees】
 Medication history management/guidance fee
41 points* 34 points if information is not provided in the medication notebook【Post revisions】（calculations are per patient）●Guidance on taking medications provided by primary care pharmacist
 Guidance fee charged by primary care pharmacist（Newly set fee） 70 points[Calculation criteria］●With the consent of the patient, calculation begins from the second pharmacy visit.
●The calculation is only possible by one pharmacist for one patient at one pharmacy.
●24-hour consultation for the patient the pharmacist is responsible for (a different pharmacist can provide consultations in unavoidable events), etc.

 Comprehensive management fee charged by primary care pharmacist（Newly set fee） 270 points[Calculation criteria］●Applies to patients that are charged fees, including the medical departmentʼs local comprehensive medical fee.
●Conform to the calculation criteria of guidance fee charged by primary care pharmacist.

●Guidance on taking medications that are provided by a pharmacist other than the primary care pharmacist
 Medication history management/guidance fee（Requirement and point revisions）
１．In general, patients that brought in a prescription within the last six months 38 points
２．Patients other than those in (1) above 50 points

Patients that do not bring in their medication notebook, and bring in their prescription to a pharmacy that charges fees that are not based on
the basic dispensing fee 1 (41 points) or basic dispensing fee 4 (31 points): 50 points.
*Source: Excerpts from Ministry of Health, Labour and Welfare material

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Revision of Dispensing Fees in FY2016
Review of basic dispensing fee （revision of evaluation for pharmacies located in front of large hospitals）【Post revision】
Specialexceptions (*1)

Basic dispensing fee

50/100reduction (*2)(when factored in)(when factored in)

41 points―

21 points

25 points

Basic feeset at 1

13 points

20 points

Basic feeset at 1

10 points

Basic dispensing fee ４（Low price settlement rate for basic dispensing fee 1）

31 points―

16 points

Basic dispensing fee ５（Low price settlement rate for basic dispensing fee 2）

19 points

Basic feeset at 4

10 points

Special basic dispensing fee（Newly set fee）

15 points

Basic feeset at 4

8 points

Basic dispensing fee 1
Basic dispensing fee 2（Requirement revisions）●More than 4,000 prescriptions filled per month and a concentration ratio of 70%-plus●More than 2,000 prescriptions filled per month and a concentration ratio of 90%-plus●More than 4,000 prescriptions filled per month from a designated medical institution(Concentration ratio does not factor in.)

Basic dispensing fee ３（Newly set fee）

For health insurance pharmacies belonging to a pharmacy group that fills more than 40,000
prescriptions per month overall●Prescription concentration rate of 95%-plus●Leases real estate from a designated medical institution（Low price settlement rate for basic dispensing fee 3）※１：In the event all criteria is met●50% or more of pharmacists working at the pharmacy conform to facility standards for primary care pharmacist guidance fees
●Is a primary care pharmacist with considerable experience in guidance fees and comprehensive management fees
※2： Pharmacies that do not implement a fixed number of operations per year that are related to the basic functions of a primary care pharmacy（excluding pharmacies that fill 600 or fewer prescriptions per month）*Source: Excerpts from Ministry of Health, Labour and Welfare material

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38

Revision of Dispensing Fees in FY2016
Review premium for standard dispensing system【Current fees】
 Scheme to claim a premium for standard dispensing １
 Scheme to claim a premium for standard dispensing ２【Post revision】
 Scheme to claim a premium for standard dispensing

12 points
36 points
32 points[Calculation criteria]●Calculation only for health insurance pharmacies using the formula for the basic dispensing fee 1 (41 points).
[Facility standards］●Storing more than 1,200 types of pharmaceuticals.
●Open for business for more than 45 hours per week.
Operates more than 8 hours a day on weekdays, and open Saturdays and Sundays for a specified amount of time.
●Either independently or in alliance with a neighboring pharmacy, operates dispensing 24 hours a day and with a system in place for work-at-home
pharmacists jobs.
●Possesses a narcotics license.
●Has a work-at-home track record of one year.
●The supervising pharmacist must have more than 5 years experience working at a pharmacy. Prior to becoming a supervising pharmacist, the pharmacist
must have worked at the same pharmacy for more than 1 year. And the pharmacist must work at the pharmacy for more than 32 hours.
●Submitted regulatory filing for primary care pharmacist guidance fees and comprehensive management fees.
●The pharmacy must have a prescription concentration rate of over 90% and the ratio of generics dispensed must be more than 30%.

Requirements change for the scheme for claiming premiums for the dispensing of generics by pharmacies【Current fees】

 Scheme for claiming premiums for the dispensing of generics 1（Ratio of dispensing volume is 55% or higher）18 points
 Scheme for claiming premiums for the dispensing of generics 2（Ratio of dispensing volume is 65% or higher）22 points【Post revision】

 Scheme for claiming premiums for the dispensing of generics 1（Ratio of dispensing volume is 65% or higher）18 points
 Scheme for claiming premiums for the dispensing of generics 2（Ratio of dispensing volume is 75% or higher）22 points*Source: Excerpts from Ministry of Health, Labour and Welfare material

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