[Reference Translation]
May 14, 2024
Company name:
JMS Co., Ltd.
Name of representative: Ryuji Katsura, President and Representative Director(Securities code: 7702; Tokyo Stock Exchange)
Inquiries:
Jo Sueda, Executive Officer, Head of Corporate Affairs Division(Telephone: +81-82-243-5844)

Notice Concerning Formulation of Medium-Term Management Plan.
We are pleased to announce the outline of our medium-term management plan 2027, which covers the threeyear period from fiscal 2024 to 2027 (fiscal year ending March 31, 2025 - fiscal year ending March 31, 2027).
Medium-term Management Plan 2027
Theme "Change and Challenge to Create the Future"
I. Previous Medium-Term Management Plan + FY2023 Review
The previous medium-term management plan started with the unprecedented COVID-19. While fulfilling
our responsibility to continue our business and ensure a stable supply, we generally achieved our sales target,
thanks to a recovery in demand from the COVID-19 both in Japan and overseas, as well as the impact offoreign exchange due to the yen's depreciation. However, profits fell far short of targets due to the impact ofhigher-than-expected prices for raw materials costs and electricity costs, leaving us with the task of improving
profitability.
II. Medium-Term Management Plan 2027
Under the theme of "Change and Challenge to Create the Future," we will not only improve profitability inthe short term, but also enhance our corporate value in the medium to long term by responding to various
demands of society, transform ourselves into a company with long-term durability, and take on the challengeof creating a sustainable society in cooperation with our stakeholders. We have established the following
basic policy and medium-term initiatives to achieve these goals.
1. Basic Policy(1) Profit structure reform
To optimize the Group's structure through a fundamental review of the Group's profit structure based on theefficiency 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.
2. Initiatives(1) Strengthen business portfolio management
Strengthen business management with an awareness of the cost of capital, and through a management
orientation that balances growth, profitability, and capital efficiency, build a portfolio that can withstandchanges in the environment and enhance corporate value in order to achieve our long-term vision.
(2) Strengthen management base through structural reforms
With an eye on the next 10 years, promote structural reforms to optimize the entire group and build a strong
management foundation that will generate stable profits even in a changing environment, while maintaininga high level of competitiveness.
(3) Expand global business profit
Develop optimal solutions business suited to regional characteristics, accelerate globalization of business,

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promote penetration of the JMS brand, build a solid business foundation, and expand business profit.
(4) Promotion of Sustainability Management
To realize a virtuous cycle of profit contribution to society and the economy as a whole and medium to longterm enhancement of corporate value by actively and proactively promoting initiatives as part of ourmanagement strategy to realize a sustainable society and to resolve materiality through our business andcorporate activities.
3. Management Indicators(Consolidated) Operating profit 2.5 billion yen ROIC 3.5% or more (FY2027)*For details of the Medium-term Management Plan 2027 "Change and Challenge to Create the Future",
please refer to the attached document.
END

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Securities Code: 7702

Medium-term Management Plan 2027
― Change and Challenge to Create the Future ―©️2024 JMS CO.,LTD.

May 14, 2024

Table of Contents

1. What is the future of JMS
2. Review of the Previous Medium-term Management Plan

3. New Medium-term Management Plan 2027

©️ JMS CO.,LTD. All Rights Reserved.

2

Table of Contents

1. What is the future of JMS
2. Review of the Previous Medium-term Management Plan

3. New Medium-term Management Plan 2027

©️ JMS CO.,LTD. All Rights Reserved.

3

JMS Philosophy and Long-term Vision
Our Spirit
Corporate
Philosophy

For People’s Precious Life

- Our Mission -To be a bridge for the people who give and seek healthcare, and tobring a smile to people by contributing to a healthy and quality life.

Long-term
VisionA solutions company that develops products and services with theconstant aim of solving issues in the healthcare field.

©️ JMS CO.,LTD. All Rights Reserved.

4©️ JMS CO.,LTD. All Rights Reserved.

5

Value Creation Process for″The Future of JMS″

Table of Contents

1. What is the future of JMS
2. Review of the Previous Medium-term Management Plan

3. New Medium-term Management Plan 2027

©️ JMS CO.,LTD. All Rights Reserved.

6

Review of the Previous Medium-term Management Plan
(FY2020-FY2022) and FY2023
Although net sales increased due to a recovery in demand in Japan and overseas and the impact of the yen's
depreciation, profitability declined due to the impact of higher raw material and electricity costs.
Need to increase corporate value through balanced response to growth, profitability, and capital efficiency byreorganizing business portfolio and promoting global expansion from a medium to long term perspective.
Performance(unit: JPY million)
Net sales 57,578
OperatingprofitResults

63,7402,127

65,292

58,169980▍Apheresis Kits and Blood Bags, mainstay products
overseas, grew, while Closed Drug Mixing/Infusion
Systems grew to become major products in Japan.
▍Aggressive M&A investment in COVID-19 disaster andacquisition of Acute Blood Purification business andLeukocyte Reduction Filter business.

724

(268)

FY2020

FY2021

FY2022

FY2023▍Alliances are promoted, although time is required tocreate value.

GAIN-RG2023 (FY2020-2022)
Previous Medium-term Management Plan©️ JMS CO.,LTD. All Rights Reserved.

7

Future Issues
Amid the need to improve capital efficiency as well as sustainable growth and profitability, the key is toallocate and utilize management resources in a balanced manner by leveraging the company's
strengths through selection and concentration.
Allocate Resources to Growth and New Businesses

GrowthPotential• Allocate resources from a focus on improving core businesses togrowth and new businesses• Developing human resources and establishing structure to create newvalue from the patient's perspective

Selection
andProfitability
Concentration
Efficiency

Optimization of Product Lines and Cost Reduction• Execution of consolidation of unprofitable products, integration ofstandards, price increase, etc.
• Promote thorough cost reductions and concentrate resources oncore products

Careful Selection of Investments and Use of Alliances• Promote capital and development investment with high ROI (return on
investment)• Supplementing or saving resources by utilizing external capital©️ JMS CO.,LTD. All Rights Reserved.

8

Table of Contents

1. What is the future of JMS
2. Review of the Previous Medium-term Management Plan

3. New Medium-term Management Plan 2027

©️ JMS CO.,LTD. All Rights Reserved.

9

Recognition of Business Environment
Sustainability management must be promoted with an overview on the external environment, which isundergoing drastic changes, such as rising raw material costs and the expansion of protectionist trade policies.
Especially in developed countries, there is an increasing need to improve quality of life (QOL) while coexistingwith illness from cure to care due to the aging population, such as home healthcare.
EconomySoaring Raw Material and Fuel Costs

Community
Transition to a Sustainable Society
Promotion of Human Capital Management

Rise in Manufacturing Costs

DE&I/Global Human Resource Development

Optimal Location Production/Appropriate Price Shifting

Politics
Expansion of Protectionist Trade Policies

Technology
Super-aging in Developed Countries

Expansion Led by China

From Cure to Care, Expanding Home Health Care

Localization of Production / M&A

Strengthening Oncological Therapy Area,
Providing Solutions©️ JMS CO.,LTD. All Rights Reserved.

10

Positioning of Medium-term Management Plan 2027
Under the new medium-term management plan, the company will move into a structural reform phaseto achieve optimal allocation of resources to achieve the long-term vision.
Firstly, Profit Level
Recovery before COVID-19

Corporate
Value
(270)

Operatingprofitmillion yen

ROIC

―

OperatingprofitROIC

2,500

Realization of Long-Term Vision
A solutions company that develops products andservices with the constant aim of solving issues
in the healthcare field.

million yen

3.5%
more than

Sowing the Seeds of New Value

Growth, Profitability and Efficiency

Issues to Look Back on

Decrease in Efficiency of
Reform of Profit Structure Based
Invested Capitalon Efficiency of Invested Capital
FY2024FY2027
GAIN-RG2023(FY2020-2022)

Medium-Term Management Plan
2027 (FY2024-2026)

Enhancing Corporate Value by
Increasing All Three

FY2030…

Next
Medium-term Management Plan
(FY2027-2029)©️ JMS CO.,LTD. All Rights Reserved.

11

Medium-term Management Plan 2027
In the structural reform phase, build up stable profit earning capacity and strengthen problem-solving
capabilities to capture overseas demand as a new growth driver.
Medium-term Management Plan Theme:- Changes and Challenges to Create the Future -Basic Policy:
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.

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.
©️ JMS CO.,LTD. All Rights Reserved.

12

Company-wide Management Targets
Aim to achieve return on invested capital (ROIC) in excess of cost of capital (WACC) through selection
and concentration management strategy to increase excess profit and corporate value.
As part of the restructuring phase, set targets that are not limited by growth potential (sales) in orderto reorganize the business and product portfolio through selection and concentration.
FY2027
Operating profit

Profitability

2,500 million yen
ROIC

Capital Efficiency

3.5％ level （＞WACC）*The assumptions used in setting the targets are exchange rates of US$1 = 145 yen, 1 euro = 156 yen, and 1 Singapore dollar = 106 yen.

©️ JMS CO.,LTD. All Rights Reserved.

13

Logic Tree for Corporate Value Enhancement
Implement the following four key initiatives to enhance corporate value from a company-wide perspective.
1

Business Portfolio Management
Strengthen and expand growth areas

Enhancement of Economic Value

Optimization of product lines

ROIC Improvement
 Careful selection of investments

Expansion of new business and OEM2

 Effective use of existing assets

Enhancement ofCorporate Value
4

Optimal location production in group
Optimization of cost control

Enhancement of Social Value

Promotion of Sustainability
Management
 Establishment of a soundgovernance structure Creating impact to solve
environmental and social issues©️ JMS CO.,LTD. All Rights Reserved.

Strengthening of Management Foundation

Enhance human capital and foster a culture of change

3

Global Expansion
Overseas expansion of core businesses
Optimal location production / M&A / Alliances

Direct Marketing and Product Development
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Initiative 1:
Strengthen business portfolio management
Strengthen business management with an awareness of the cost of capital, and through a management orientationthat balances growth, profitability, and capital efficiency, build a portfolio that can withstand changes in theenvironment and enhance corporate value in order to achieve our long-term vision.

Growth Potential

Strategic Investment Areas

New Business

Growth Business

Create and nurture new businesses that will
become future core businesses

Businesses that have competitive
advantages and will be our growth driver

Businesses that improve profitability
through efficiency gains or identify direction

Growth Potential
Profitability
Capital Efficiency

Improvement Business

Base business with stable demandCore Business

Improvement of invested capital efficiency and labor productivity

Concentrated
Investment ofManagement
Resources

Optimization of Product Lines Based on Product Life Cycle

Profitability / Capital Efficiency (ROIC)©️ JMS CO.,LTD. All Rights Reserved.

15

Concentrated investment of management resources
Aim for sustainable sales and profit growth by increasing allocation of R&D
investment to new and growth businesses, which are strategic investment areas.

New

GrowthImprovement

Core

Business Areas
Home Therapy
New Area

Research and Development
Investment Allocation

New
GrowthOncological
Therapy
Blood
Management
Business

Enhance
AllocationsCore

improvement
FY2023

FY2024 ‐ 2026 Cumulative Total
Medium-term Management Plan 2027
©️ JMS CO.,LTD. All Rights Reserved.

16

Strategic Investment Areas - New & Growth Develop new businesses by utilizing digital technology and promoting alliances, inNewresponse to the diversification of treatment and changes in the healthcare environment. Improvement

GrowthCore【New】: Home Therapy【Growth】: Oncological Therapy

Raising Awareness of Peritoneal Dialysis Therapy Options
through DX Promotion

Easy-to-use, Domestically Produced Devices Facilitate
Problem Solving

Automatic Peritoneal Dialysis Machines with enhanced
communication functions and support for seamless information
sharing among multiple professions in a comprehensive regional caresystem will create a better environment for peritoneal dialysis
therapy for aging patients and healthcare professionals who are
required to reform work-style.

▶ In Japan, as the number of patients requiring oncologicaltherapy increases and the healthcare field faces a serious
manpower shortage, we will promote the creation of newvalue to build a sustainable healthcare environment inoncological therapy by shifting tasks and improving
operational efficiency.
▶ Overseas, introduce Closed Drug Mixing/Infusion Systems in the
U.S. and other countries.

Automated Peritoneal Dialysis Machines"Automatic Peritoneal Dialysis
Machines PD-Relaxa"

Treatment Results
Devices for Safe Handling of Anticancer Drugs

NEO SHIELD

Change of Treatment©️ JMS CO.,LTD. All Rights Reserved.

17

Strategic Investment Areas - Growth Further increase presence in the global blood management-related market andexpand business profit by supplying newly acquired Leukocyte Reduction Filter.

New

GrowthImprovement

Core【Growth】: Blood Management Business

Synergy Generation through In-house Productionof Leukocyte Reduction Filter and Integrated
Business Operation with Blood Bags
Strengthening the supply chain for Leukocyte Reduction Filter to capture thehuge markets of Africa, the Middle East, Asia, and Oceania, where demandis growing.
November 2023
Acquired all equity of a subsidiary of Asahi Kasei Medical Corporation and newly
started as JMS Transfusion Technology (Zhangjiagang) CO., LTD.

Asia
Middle East

JMS Transfusion Technology(Zhangjiagang) Co., LTD.

AfricaOceania©️ JMS CO.,LTD. All Rights Reserved.

18

Core/Improvement Areas
Maximize operating income in the domestic core business, which has stable demand, by
responding to changes in the environment and improving efficiency.
Overseas core businesses will enhance brand presence and link to new growth businesses.
Domestic
Infusion and Nutrition
Blood Management andCell Therapy
Cardiovascular

new

growthimprovement

core

Overseas
Hemodialysis

Maximize Operating profit▶

Efficient sales activities through theuse of marketing automation anddistributor strategy▶

Create new value by building aplatform for ME(Medical Electronics)
equipment▶

Optimize product portfolio▶

Alliance promotion▶

Optimize pricing

Hemodialysis

OEM/ODM

Penetration of the JMS Brand▶

Introduction of AV Fistula Needles with New
Functions▶

Develop CDDS（central dialysis fluid delivery
system）, a dialysis system unique to Japan▶

Utilize alliances▶

Promote optimization of the entire supply
chain and improve QCD (quality, cost, delivery)

Key Resources for New and Growth Businesses
Strategically Utilize Acquired Cash, Technological Competitiveness, and Established Brands©️ JMS CO.,LTD. All Rights Reserved.

19

Initiative 2: Strengthening the managementbase through structural reforms
With an eye on the next 10 years, promote structural reforms to optimize the entire group and build astrong management foundation that will generate stable profits even in a changing environment, while
maintaining a high level of competitiveness.

Promoting
Structural
Reforms

Realizationof Overall Group
Optimization▍Optimize the entire supply chain in light ofprotectionist trade policies of emerging
countries▍Selection of appropriate costing methods,
establishment of management systems andintroduction of efficiency processes

Strengthening ofmanagement foundation

StableProfitGeneration▍Securing human resources to support
globalization and digitalization and building
a foundation for their development©️ JMS CO.,LTD. All Rights Reserved.

20

Group overall optimization and efficiency improvement
Promote optimization of the entire supply chain, centered on production in the optimal location for theGroup, by taking the opportunity of item review as a structural reform aimed at maintaining andimproving QCD (quality, cost, and delivery).
Supply Chain

Procurement

Manufacturing

 Strengthening Corporate
Social Responsibility (CSR)

Logistics

Sales

 Reorganization of Production Locations
and Product Lines
 Considering Outsourcing

 Product Portfolio Restructuring

Overall Optimization
 Optimize of Business Continuity Management (BCM) Introduction of Digital Technology and Establishment of Management
System/Process Efficiency

Optimal Location Production in Group
Japan

Korea

China

Philippines©️ JMS CO.,LTD. All Rights Reserved.

Indonesia

Singapore21

Human Resource Investment Strategy(Long-term Perspective)
Promote human resource mobility and human resource development to strengthen human capital as asource of competitive advantage.
Provide fair career development opportunities and aim for a diverse workforce.
Management

Strategy

Value Creation Activities

Promote Globalization and Provide Optimal Solutions

Organization & Functions
Marketing, New Business, Global

Human Resource Portfolio

Individuals and Skills
Understanding of Needs, Digital,
Overseas Laws and Regulations▍ Reskilling / DE&I (Diversity, Equity & Inclusion)▍ Improve Employee Engagement• Training rotation• Effective use of mid-career hires• Introduction of advanced IT (digital)/global human resources
development program• Increase ratio of female managers• Internal recruitment system / mid- to long-term careerdevelopment• Promote health management that keeps employees
physically and mentally healthy

Foster a Culture of Change that Promotes Leadership and Innovation©️ JMS CO.,LTD. All Rights Reserved.

22

Initiative 3: Expand global business profit
Develop optimal solutions business suited to regional characteristics, accelerate globalization of business, promote
penetration of the JMS brand, build a solid business foundation, and expand business profit.

Utilize
External
Resources

R&D

Alliances
M&A

Develop Optimal Solution BusinessSuited to Regional Characteristics

Core Resources

Accelerate Globalization

Human/Intellectual/
Social and
Relational CapitalMarketingPriority Allocation
Strengthening the Structure

Penetration of JMS Brand

Expand Business Profit©️ JMS CO.,LTD. All Rights Reserved.

23

Initiative 4:
Promotion of Sustainability Management
To realize a virtuous cycle of profit contribution to society and the economy as a whole and medium- to long-term
enhancement of corporate value by actively and proactively promoting initiatives as part of our management strategy
to realize a sustainable society and to resolve materiality through our business and corporate activities.
- Phase 2 • Formulate basic policy and set targets• Formulate Action plan

Virtuous
CircleFY2024

Sustainability Preparatory Committee
Establishment of Cross-functional TeamFY2023- Phase 3 • Practice and promotesustainability management

FY2022- Phase 1 • Formulate value creation
process• Identify Materiality

Basic Sustainability Policy
JMS, inheriting the thoughts of its founder who was a physician, will respond to
the environment, society, and governance that change with the times andprovide solutions that contribute to the future of healthcare worldwide, inorder to realize a sustainable society where all people can live healthy lives
with smiles on their faces.

©️ JMS CO.,LTD. All Rights Reserved.

24

Shareholder Return Policy (Consolidated)
Based on the basic policy of stable dividends, we will increase the level of returns to shareholders in line withprofit growth.
(unit: JPY million)
427
390

416

415

415

390

390

1,978

1,736
1,160
826

631

281
(36)
FY2017FY2018FY2019FY2020Total amount of dividends

FY2021

FY2022

FY2023

Profit attributable to owners of parent

Fiscal Year

2017

2018

2019

2020

2021

2022

2023

Dividend Payout Ratio

61.8%

33.6%

21.0%

23.9%

50.3%

147.8%

-

16

16

17

17

17

17

17(Forecast)

Annual dividend per share (Yen)©️ JMS CO.,LTD. All Rights Reserved.

25

The Bridge to Good Health Care

Explanation of the appropriate use of profit forecasts and other special notes
The forward-looking statements, including profit forecasts, contained in this document are based on
information currently available to the Company and certain assumptions that the Company
considers reasonable.

26