MEDICAL SYSTEM NETWORK Co., Ltd.
Fiscal Year Ending March 2024

Earnings Report
Standard Market of Tokyo Stock Exchange ; Securities Code: 4350

1

About contents covered* The contents of this report pertaining future earnings described are based on information
the company has held, and on certain assumptions supervising rational judgement, andare not what the company promises to achieve. There are numerous factors that may
cause actual earnings to differ. Caution is given to the accuracy of information, and we donot take responsibility for loss etc., as a result of misinformed information.

* Furthermore, this report is not prepared for the purposes of investment solicitation.

Readers are responsible for their own judgement in any decision regarding investments.

Please see the following link for our English information.

https://www.msnw.co.jp/eng/

2

FY3/2024 : Topics and Business Overview■ Full Year Results
Both Net Sales and Profits exceeded the previous year's levels
and achieved the plan.
‐ YoY change ‐● Net Sales +5.3%, Operating Profit +21.1%
・The unit price of prescriptions declined on the back of the end of
the transitional measures for additional fees related to community
support system.
→ Existing pharmacies unit price of technical fee -2.8%
・Due to category 5 migration of COVID-19, multiple infectious
disease outbreaks, prescription transmission benefits through theimpact of DX utilization, and medication follow-ups we saw;
→ No. of prescriptions at existing pharmacies +3.8％
・Strive to improve productivity and control expenses‐ vs Forecast ‐● Net Sales +1.4%, Operating Profit +9.5%
・No. of prescriptions filled at existing pharmacies +0.8% vs. plan
・Net increase in the number of network affiliates fell short of
expectations due to pharmacy closures and withdrawals resulting
from M&A activity. On the other hand, the total value ofpharmaceuticals orders placed by network affiliates was largely
in line with projections, thanks to an increase in the value ofpharmaceuticals procurements by existing affiliates.

Figures in parentheses indicate changes from the end of the previous FY* YoY＜ Community Pharmacy Network Segment ＞
Community Pharmacy
Prescription Unit price(All pharmacies)
No. of prescriptions (All pharmacies)

450 pharmacies（+22）
10,141 yen（-95 yen）
9,640K （+6.1%）
9,261K （+3.8%)

No. of prescriptions (Existing pharmacies)~ Our 3 Pharmacy Support Businesses ~Pharmaceutical Network Business•No. of affiliates

9,756 affiliates （+844）

Manufacture and Market Pharmaceuticals Business•No. of ingredients

48 ingredients（+3）•

No. of products

103 products（+10）•

No. of affiliates

4,998 affiliates（+1,261）

Digital Shift Business•

No. User registrations

1,049K（+400K）•

No. Installed pharmacies

4,682 pharmacies（+1,291)＜ Leasing and Facility related Segment ＞
Wisteria•

Occupancy rate of all 5 facilities

83.0%（+2.6%）

3

Table of Contents

Earnings Highlight・・・

5

Business Summary

・・・

15

Core strategies, Earnings Forecast for
FY3/2025

・・・

29

・・・

40

Reference Materials

41
Earnings
Highlight

5

FY3/2024 : Consolidated Results
FY3/2023(Results)

FY3/2024(Plan)

FY3/2024(Results)（Unit: million yen）

Full Year Forecast

YoY
ChangeChange (%)

Difference

Difference (%)

Net Sales

109,551

113,800

115,361+ 5,809+ 5.3%+ 1,561

101.4%EBITDA*

6,122

6,600

6,997

Profit margin

5.6%

5.8%

6.1%

+ 875

+ 14.3%+ 397

106.0%

3,163

3,500

3,832

2.9%

3.1%

+ 669

+ 21.1%+ 332

109.5%

3.3%

3,355

3,450

3,825

3.1%

3.0%

+ 469

+ 14.0%+ 375

110.9%

3.3%

1,610

1,650

1,860

1.5%

1.4%

1.6%

+ 250

+ 15.5%+ 210

112.8%

53.38

54.67

61.89

+ 8.51－+ 7.22－

Operating Profit
Profit margin

Ordinary Profit
Profit margin

Profit attributable toowners of parent
Profit margin

Earnings per share（Yen）* Calculated as "Operating income + Depreciation and amortization + Amortization of goodwill

6

FY3/2024－Core Strategies
Core Strategies andResults
Numerical Targets■

Acquisition of prescriptions using on-line tools (LINE,
prescription transmission tools)
No. of existing pharmacies prescriptions :+1.9％(YoY)

Community
Pharmacy
Business■Strengthen interpersonal services and provide quality
drug treatments■

Development of new 15 pharmacies, mainly in medical
malls

■

Increased productivity through appropriate cost controls■

Number of prescriptions
Existing stores YoY +3.8%
All pharmacies YoY +6.1%■

Achieved year-end target for community support
system

■13 new pharmacies opened, 18 M&A■

Increased Productivity
No. of prescriptions handled per pharmacist +8%
YoY

Evalu
ation

◎

3 Pharmacy Support Businesses

Community
Pharmacy
Network
Segment

Pharmaceuticals
NetworkBusiness*

Manufacture andMarketPharmaceuticals
Business*■

10,400 affiliates at the end of March 2024 (+1,488 )■

9,756 affiliates■

Promote distribution improvement; Our pharmacies
deliver once a day on weekdays, no deliveries on
Saturdays, and reduce urgent deliveries■

Promote distribution improvement initiatives suchas once-a-day delivery■

In-home consultation■

Launched an inventory information sharing
service■Core system renovation and renewal■

Expansion of services for affiliates■

Maintaining stable suppy■■

Increasing the No. of transacting pharmacies. At the endof fiscal year: 5,000 (+1,263)

Shipment adjustments generally resumed, but
sales plan was not achieved■

No. of affiliates transacting business 4,998■

Expansion of pharmacies with official LINE accounts→ Installed 5,300(+1,909 YoY). Registered users
1MN(+360k)
Continued functional enhancements■

Installed pharmacies 4,682
1.05MN users registered■

Adding new features

Digital ShiftBusiness*■* 3 Pharmacy Support Businesses

△

△

〇

7

FY3/2024－Core Strategies

Core Strategies andResults
Numerical Targets■
Leasing and Facility
related Segment

Meal Catering Segment,
Home Visit Nursing
Segment■■■
Finance, ESG and HealthManagement■

Achieved 90% occupancy rateand stable operation in Wisteria
Appropriate cost control andreview of labor and advertisingcosts

As the impact of COVID-19 fades,
returns to normal operations andraises break-even line
IT investment in building area
collaboration
Secure profit through cost control
while building up capital■Occupancy rate of all 5 buildings: 83.0%■

Improved the occupancy rate of Wisteria
Minami Ichijo by strengthening
consultation services and revamping the
new application system■

Brought back to profitability■

Gross profit declined due to higher
procurement costs■

Revision of contract unit price from thesecond half of the fiscal year

■ Careful selection of investment projects■

Repayment of interest-bearing debt

Eval
uati
on

△

△

〇

8

FY3/2024 : Results by Segment■ Net Sales

FY3/2023(Results)（Unit: million yen）

FY3/2024(Full Year
Forecast)

Full Year Forecast

YoY

FY3/2024(Results)

ChangeChange (%)

Difference

Difference (%)

109,551

113,800

115,361+ 5,809+ 5.3 %

+ 1,561

101.4 %

Community Pharmacy
Network Segment*¹

104,399

108,391

109,904+ 5,504+ 5.3 %

+ 1,512101.4 %

Leasing and Facility related
Segment
Meal Catering Segment
Home Visit Nursing Segment

6,089

6,120

6,285

+ 196

+ 3.2%+ 165

102.7 %

(937)

(712)

(828)

+ 108

－

(116)

－

3,163

3,500

3,832

+ 669

+ 21.1 %+ 332

109.5 %

2.9 %

3.1 %

3.3 %

+ 0.4pt

5,887

6,021

6,433 *

+ 546

+ 9.3 %

+ 412

106.8 %

5.6 %

5.6 %

5.9 %

+ 0.2pt

(180)
－

115

70
1.1 %

－

－

(44)

61.5 %

1.9 %(2,542)－(2,636)－(2,671)
－

(129)

－

(35)

－

Net Sales

Adjustments（Unit: million yen）

■ Operating Profit Profit margin in brackets
Segment Profit
Community Pharmacy
Network Segment*¹
Leasing and Facility related
Segment
Meal Catering Segment
Home Visit Nursing Segment
Adjustments

2

*2

+ 251

－

*1 Community Pharmacy Business, Pharmaceutical Network Business, Manufacture and Market Pharmaceuticals Business, and Digital Shift Business*2 Transferring expenses related to the development of pharmacies from the Leasing and Equipment Related Business to the Community Pharmacy Businessfrom FY3/2024. Transfer of expenses 147 million yen

9FY3/2024 : Consolidated Results Quarterly Changes■Net Sales・Operating Profit（Quarterly Changes）
Increase in the number of prescriptions filled due to the category 5 migration of COVID-19, multiple
infectious disease outbreaks, and enhanced medication follow-ups.
Net sales（Unit: million yen）

Operating profit※※※ Includes inflation
allowance
2023/3 4Q: 202 million yen
2024/3 4Q: 209 million yen

10FY3/2024 : Comparison to previous FY■ Operating profit■ Net sales(Unit: million yen)

(Unit: million yen)**

* Transferring expenses related to the development of pharmacies from the Leasing and Equipment Related Businessto the Community Pharmacy Business from FY3/2024. Transfer of expenses 147 million yen

11

FY3/2024 : Comparison to Forecast■ Operating profit■ Net sales(Unit: million yen)

(Unit: million yen)*

*Existing stores: Number of prescriptions +0.8%, unit
price +0.7% compared to plan12

FY3/2024 : Consolidated Balance Sheet■End of FY3/2023（Unit: million yen）

■End of FY3/2024（Unit: million yen）

Assets

66,223 Liabilities

51,735

Assets

68,149 Liabilities

52,930Current assets

20,265 Current liabilities

21,349Current assets

20,773 Current liabilities

23,213

Cash and deposits

8,141 Short-term loans*¹

6,168

Cash and deposits

8,273 Short-term loans*¹

5,710

Fixed liabilities

30,385

Fixed liabilities

29,716

Fixed assets

45,958 Long-term loans

20,226

Fixed assets

47,376 Long-term loans

18,309Tangible fixed assets

27,060 Net assets

14,488

Tangible fixed assets

28,336 Net assets

15,219Intangible fixed assets

11,807 Share capital

2,128

Intangible fixed assets

11,281 Share capital

2,128

Goodwill

11,183 Capital surplus

1,182

Goodwill

10,613 Capital surplus

937

Investments and otherassets7,090 Retained earnings

11,606

Investments and otherassets7,759 Retained earnings

Treasury shares(326)

Total liabilities andnet assets

66,223

Total assets

Equity ratio

21.8%

Equity ratio（Equity ratio with taking into account net cash*²*1 Includes long-term loans that will be repaid within 1 year
*2 Own capital / (Total assets – Cash and deposits)

24.9%)

Total assets

66,223

68,14913,100Treasury shares▲ 882

Total liabilities andnet assets

68,149（Equity ratio with taking into account net cash*²

22.3%
25.3%)

13

FY3/2024 : Consolidated Cash Flows
Reduced interest-bearing debt by 9.7 BN yen over the last 5 yrs

EBITDA*
Changes in working capital

6,997 million yen
121 million yen* Calculated by “operating profit + depreciation + amortization of goodwill”

Opening of new pharmacies
Existing pharmacies renovation costs, etc.
M&A (share acquisition, business acquisition,business transfer)(1,468) million yen(714) million yen(1,185) million yen

Decrease in interest-bearing debt
Acquisition of treasury stock(2,778) million yen(555) million yen

14

2
Business
Summary

15

Community Pharmacy Business：
Trends in No. of Pharmacies
13 new
outlets（18 from acquisition）and 9 outlet closures/transfers since end of the previous FY
ポイント①Nanohana Pharmacy
Minami gyotoku②Nanohana Pharmacy
Sapporo kitano

FY3/2024

Hokkaido area120
outlets

track record

Full Year Plan

No. of openings

13

15

No. ofprospects connected
to Medical
Institutions

18

10

②
Tohoku area

Tokai/Hokuriku③Nanohana Pharmacy
Ikejiriohashi

Chugoku/Shikoku

22
outlets32
outlets

44
outlets①③

Kyushu75
outlets

Kinki

Kanto/Koshinetsu
105
outlets【First entry into Yamagata and Kagoshima Prefectures】
Cosmos Pharmacy Shinmachi

Tsurumaru Dispensing
Pharmacy Murasakibaru

52
outlets■ Community pharmacy outlet no. trends of the past 10 years※

FY3/2015

FY3/2016

FY3/2017

FY3/2018

FY3/2019

FY3/2020

FY3/2021

FY3/2022

FY3/2023

FY3/2024

Openings

10

9

8

8

5

8

7

12

8

13

Closing andtransferring

(13)

(8)

(4)

(5)

(14)

(15)

(13)

(6)

(7)

(9)

M&A

27

7

20

19

30

3

6

3

2

18

No. of outlets

345

353

377

399

420

416

416

425

428

450

16

Community Pharmacy Business :Monthly Dispensing Fee（YoY)

2nd half total
all pharmacies +2.8%
existing pharmacies +0.4％

1st half total
all pharmacies +5.5%
existing pharmacies +3.7％
1st half total
all pharmacies +1.5%
existing pharmacies +0.1％

2022

2nd half total
all pharmacies +4.7%
existing pharmacies +2.5％

2023• Existing pharmacies definition: Pharmacies that have been continuously open since April 1, 2021 for the previous fiscal year and since April 1,
2022 for the current fiscal year

17Community Pharmacy Business :Monthly Prescription Volume and Unit Price of Existing Pharmacies（YoY)
・ With the end of the transitional measures for the additional fee related to the community support system,
the unit price of prescriptions declined.
・ Increase in the number of prescriptions due to category 5 migration of COVID-19, multiple infectious
disease outbreaks, prescription transmission benefits through the impact of DX utilization, and medication
follow-ups.
2nd half total
Unit price (1.4%)
No. of prescription +1.8%

1st half total
Unit price (0.3%)
No. of prescription +4.0%

st1 half total
Unit price (1.2%)
No. of prescription +1.3%

2022

2nd half total
Unit price (1.1%)
No. of prescription +3.7%

2023

18

Community Pharmacy Business : Dispensing Fee Breakdown
FY3/2023■ All pharmacies
No. of prescriptions (1,000)

Unit price(yen)

FY3/2024

ChangeChange (%)

9,088

9,640

+ 551

+ 6.1%

Drug charge perprescription

7,789

7,773

(16)

(0.2%)

Technical fee perprescription

2,446

2,368

(79)

(3.2%)

10,236

10,141(95)(0.9%)

93,02997,765+ 4,735+ 5.1%

8,918

9,261

+ 342

+ 3.8%

Drug charge perprescription

7,748

7,741

(7)

(0.1%)

Technical fee perprescription

2,450

2,381

(69)

(2.8%)

10,198

10,122(76)(0.7%)

90,952

93,742+ 2,790+ 3.1%

Total
Dispensing fee (million yen)

■ Existing pharmacies
No. of prescriptions (1,000)

Unit price
(yen)

Total
Dispensing fee (million yen)

*Dispensing fees are calculated based on the number of prescriptions x unit price of prescriptions

19

Community Pharmacy Business : Dispensing Fee Revision・Achieved year-end target despite decrease in weighted average score from the end of the previous
fiscal year due to termination of transitional measures for additional payment for community support
system・Continued to focus on interpersonal services*Additional fee for regional support system is calculated based on the number of sheets.

20

Community Pharmacy Business :Efforts to Enhance In-House Education System and Promote Home Healthcare■ Developing an education system covering all stages from new pharmacists to pharmacy managers
and block managers
・Basic education

Newcomer training, on-the-job
training, etc.

・Comprehensive education

・Management education

Clinical certification training, hospitaltraining, etc.

Pharmacy manager and block
manager training, etc.

・Focus on training certified/specialized pharmacists. We are also focusing on having thesepharmacists practice in the broader sense for the community beyond just the place ofconsultation.
（19 certified primary care pharmacists, 14 certified heart failure care leaders, etc.）【Conferences and academicpresentations】

・Actively participate in academic conferences and make academic presentations(43 presentations on a national scale in FY2024/3)
・Newly launched “Nanohana Clinical Research Design School”■ Efforts to promote home medical care

Number of cases of additional calculation for home care・Promote all pharmacists to have experience in home medical care by
conducting activities tailored to each locality, such as visiting areas regardless of
disease type or place of residence
・Providing home medical care such as patient medication management incooperation with multiple professions related to patients・Strengthening level of home care, and increased the number of additional homecare visit cases by 14.3% YoY

Jun Sep
FY2023/3

Dec

Mar

Jun
Sep
FY2024/3

Dec

Mar

21

Community Pharmacy Business :Trends in the number of prescriptions※ Only pharmacies that have been continuously open since March 2019

・Significant increase in prescriptions for acute diseases in FY2024 due to the outbreak of multiple
respiratory infections
・The number of prescriptions that declined due to the COVID-19 epidemic is gradually returning, but has not yet
fully recovered■ Quarterly Chronic/Acute Disease Prescriptions■ Number of prescriptions for the last 5 years（百万枚）
Millionprescriptions▲2.5%(2.5%)▲9.0%(9.0%)

FY3/2023

FY3/2024

FY3/2020

FY3/2021

FY3/2022

FY3/2023

FY3/202422*1
3 Pharmacy Support Businesses：

Performance Summary
Supporting community pharmacies through 3 businesses : Our core Pharmaceutical Network,
Manufacture and Market Pharmaceuticals, and Digital Shift Initiative■ Progress against numerical targets for this fiscal year
Numerical Targets
for the Current Term

Pharmaceutical Network
Business

10,400 affiliates（+1,488 affiliates）

Result
9,756 affiliates(+844 affiliates)
9,964 affiliates（As of April 30, 2024）

Manufacture and Market
Pharmaceuticals Business

5,000 transacting pharmacies*（＋1,263 pharmacies）

4,998 (number of pharmacies transacting
business after April of each year)(+1,261 pharmacies)

5,300 installed pharmacies（+1,909 pharmacies）

4,682 pharmacies(+1,291 pharmacies)

1MN registered users（+360K users）

1.05MN registered users+400K users

Digital Shift Business*1 Pharmaceutical Network Division, Pharmaceutical Manufacturing and Sales Division, Digital Shift Division

23

Pharmaceuticals Network Business:
Performance Summary
Net increase in the number of affiliates fell short of the plan due to pharmacy closures and withdrawals resulting from
M&A, etc. However, pharmaceutical transaction volume was generally in line with the plan due to an increase in purchasesby existing affiliates.

24

Pharmaceuticals Network Business:
Expansion of services for aﬃliates■ Merchant inventory information sharing service (operational from September 2023)
Number of pharmacies using the service：876 pharmacies（As of October 31, 2023）→ Number of pharmacies using the service：1,300 pharmacies（As of April 30, 2024）
Network
affiliates＜Effects of Inventory Information Sharing Service＞
・Reduced uneven distribution of pharmaceutical inventory
・Reduced workload to secure inventory
・Reduction of urgent deliveries by pharmaceutical wholesalers
・Contributes to procurement of pharmaceuticals in times ofdisaster
Contributes to regional medical care by creating a networkin each region

Sharing of pharmaceuticalinventory information
Nanohana
Pharmacy

Network
affiliates■ Providing LINCLE, an inventory management system developed in-house（Sales started in October 2023）＜Effects of introducing LINCLE＞

Strengthen interpersonal
operations
Easy operation and automatic ordering
create more time for patient interaction

Reduction of pharmaceuticalwaste
Automatic acquisition of expiration
dates and management ofpharmaceuticals subject to disposal
loss

Efficient inventory
management
Propose optimal operation methods
based on the know-how of our directly
managed pharmacies

Increased operational efficiency and improved profitability
25

Manufacture and Market Pharmaceuticals Business：
103 products / 48 ingredients ( 10 products /3 ingredients were added from the end of the previous FY )・Steady increase in new clients, generally in line with the plan (+1,261 clients vs. previous year)
・Sales fell short of the plan due to the impact of shipment adjustments, but shipments resumed as needed in the second half of the
fiscal year.
*No. of products adjusted for shipment as of March 31: 6 products / 3 ingredients ( End of March 2023：19 products / 7 ingredients)■ Net Sales and No. of transaction■ Breakdown of sales plan for this fiscal year

pharmacies
Release DatePlan
4.2 billion yen*

Product nameLoratadine tablet 10mg
「FELDSENF」

3.2 billion yen
4,998
pharmacies

Loratadine OD Tablet 10mg
「FELDSENF」

2.6 billion yen
3,737
pharmacies

1.8 billion yen
1.1 billion yen

2,678
pharmacies

1,592
pharmacies

products /ingredients

June 2024

Rosuvastatin OD tablet
2.5mg/5mg「FELDSENF」

10 products /6 ingredients

Zonisamide OD Tablets
25mg/50mg TRE「FELDSENF」
4 products / 2 ingredients（plan）*No. of transaction pharmacies is total pharmacies that haveactually transacted business since April of each year.

26

our company

Digital Shift Business :－1.04MN users registered
Official LINE Account・1.04MN users have registered and 4,682 pharmacies have installed the service.
・Inquiries increased from pharmacies engaged in medical DX following the revision of medical
reimbursement, and orders were strong.
■ Number of registered users exceeds 1 million.
■ No. of users registrations andinstalled pharmacies

1.04MN
users
4,682
pharmacies

・Reached 1 million users in February 2024, 2 years and 11
months after service launch・No. 1 - far ahead of other dispensaries' official accounts
Our company
当社

1.04MN万人

CompanyA社
A

0.29MN

Company B社
B

0.27MN

CompanyC社
C

0.12MN

CompanyD社
D

0.09MN

Number of LINE Official Account Friend Registrations
As of March 31, 2024, according to our own research■ Growing need for introduction following revision of medical fee
Additional
Information forStrengthening
Cooperation
Online Medication
Guidance System

Additional fee forcommunity support
systemMedication
Follow-up
To obtain family
pharmacist
guidance fee

Additional fee for community
support system
Home support function
Development ongoing trying to build home
dispensing management
results

27

Leasing and Facility related Segment
Wisteria Occupancy Rate Trends

All 5 buildings occupied：83.0％(End of FY 3/2024 target：
90% occupancy rate)

・65 new move-in and 54 move-out of Wisteria locations.
・Decrease in move-outs by strengthening consultation services, and by reviewing the new application
system at the Minami ichi-jo location.
・Reviewed Wisteria's staffing and advertising expenditures.
✔ Leasing and Facility related Segment
Net Sales
3,611 million yen （YoY +3.3％）
Operating Profit 158 million yen （Operating loss for the same period of the previous FY
92 million yen）
*Transferring expenses related to the development of pharmacies from the Leasing and Equipment Related
Segment to the Community Pharmacy Business from FY3/2024. Transfer of expenses 147 million yen.
28

3Core Strategies
・Earnings
Forecast for
FY3/202529

FY3/2025: Core Strategies
Sixth Medium-Term Management Plan（FY3/2023～FY3/2026） 3rd year
Maintain profitability through “predictive response” to changes in the environment and “implementation of
specific initiatives” for inter-business collaboration
Community Pharmacy
Business

3 Pharmacy Support
Businesses** Pharmaceuticals Network

Business
Manufacture and Market
Pharmaceuticals Business
Digital Shift BusinessLeasing and Facility
related Segment
Meal Catering Segment■ Strengthen pharmacy functions to become “a beacon in the town”
・Foster a stronger medical mindset and strengthen interpersonal operations
・Steadily respond to medical DX
・Accelerate strategic store openings with targeted area considerations■ Execute inter-business collaboration and develop new services
・Establish a cross-business marketing
structure・Renew existing services and develop newservices
Inventory management system 「LINCLE」
Expansion of inventory information sharing services“Tsunagaru” Pharmacy New service development,etc.(Pharmashift)

End of FY3/2025 Target
7,000 pharmacies

End of FY3/2025 Target
10,756 affiliates（＋1,000 affiliates ）（＋2,002 pharmacies）

affiliates■ Measures to cope with rising prices andreview of unprofitable divisions
End of FY3/2025 Target
5,700 pharmacies

Home Visit Nursing
Segment

Investment and Financial
Strategies（＋1,018 pharmacies）■Investment in “new growth model”
・Establishment of a new business, MEDI LOGI NET, a pharmaceutical logistics company
・Pharmaceutical network backbone system and customer management system
・Secure profit through cost control and accumulate capital30

FY3/2025: Core Strategies－Community Pharmacy Business■ Foster a stronger medical mindset and provide
high-quality drug treatment【Regional Support System Plus Calculation of Targets】
FY2024/3 Result

FY2025/3 Target

・ Continuing education to improve pharmacy care
・ Promote home medical care and family pharmacists
・ Focus on obtaining Additional credit for Community Support
System 3 and 4■ Steady response to medical DX
・ Focus on obtaining additional medical DX credit (promote useof Individual Number Card as a health insurance card)
・ Acquire prescriptions through the use of “Tsunagaru”
pharmacies, etc.

【Pharmacies openings and target number of pharmacies】■ Development of 20 pharmacies, mainly in medicalmalls
・ Maintain medium- to long-term growth potential bydevelopment of new pharmacies, mainly in medical malls
・ Attract physicians wishing to practice in existing medicalmalls

1st yearTarget 15
pharmacies

2nd yearTarget 15
pharmacies

3rd yearTarget 20
pharmacies

4th yearTarget 25
pharmacies■ Appropriate cost control
・ Increase in Productivity

FY3/2022

FY3/2023

FY3/2024

FY3/2025

FY3/2026

31

FY3/2025: Core Strategies－Pharmaceuticals Network Business【No. of affiliates】■ Target no. of affiliates at the end of FY3/2024 :
10,756 (Net Increase + 1,000)■ Promotion of Distribution Improvement
・ Our pharmacies implement once a day delivery on
weekdays, No Saturday deliveries, reduced “rush” deliveries・ Expansion of the above measures to affiliates
・ Expansion of users of inventory information sharing system■ Core system modification and renewal
・ Business system renewal
・ DSE (Dead stock exchange) system modification【LINCLE Hachinohe】
・LINCLE - an inventory management system for pharmacies thatallows for sharing of information related to dispensing performance.
New technology developed by the company
・Utilized to reduce urgent deliveries by pharmaceutical wholesalers,
procurement of pharmaceuticals in times of disaster, etc
・Scheduled to begin service in July 2024

■ Service Expansion
・ Establishment of an area network beyond the boundaries
of existing member affiliates
・ Education and training at our directly-managed
pharmacies to be made into a service for affiliates
・ Support services for response to Revisions, expansion of
in-home services

Out of 149 pharmacies
63 pharmacies are interested
in registering.
50 pharmacies are
considering the service(as of April 17, 2024)【Hachinohe regional health ＆ medical area】
32

Manufacture and Market Pharmaceuticals Business /FY3/2025: Core Strategies－ Digital Shift Business■ Stable supply■ Expansion of transacting pharmacies■ Expansion of pharmacies with official
LINE accounts

・ Installed pharmacies 5,700 (+1,018 YoY)・ Significant expansion of market share to Network affiliates
・ Expand sales to general pharmacies
・ 1.4MN users registered（+35 K YoY）
・ No. of total transacting pharmacies 7,000 *(+2,002 YoY)(
*include Network affiliates )■ Continue enhancement on functions
・ Net Sales 4.4 billion yen (+36.7% YoY)
【Generic drug purchases by network affiliates】
Per pharmacies
average amountpurchased

Amount of genericpurchases by Network
affiliates pharmacies
approx. 129.4 bil. yen【Users registered & Installed pharmacies】

Product Lineup
Expansion

Increase inswitching items

Switching rate
24.9％

Purchasing
Amount・ Enhancement of functions to respond to the revision of
medical fees
・ Development of home business support functions
・ Enhanced Settlement Functions
1.4MN users
registered

Network affiliates
Expansion
Feldsenf Pharma
product coverage amount:approx. 31.8 bill. yen

5,700
Installed pharmacies

Increase intransacting
pharmacies33

FY3/2025: Core Strategies－Leasing and Facility related Segment■ Improvement of occupancy rate and stable operation of Wisteria
・ Develop new sales channels, hold events to attract customers, and acquire new residents
・ Reduce relocation and evictions by improving the quality of “consultation” services■ Appropriate cost control
・ Examine and reduce labor and advertising costs( End of FY 3/2025 target )( All 5 buildings
Occupied target : 87.8% )34

FY3/2025: Core Strategies－Pharmaceutical Logistics Segment■ Purpose of Establishment
・Improve services for network affiliates in the pharmaceutical network segment
・Contribute to solving social issues such as stable supply of pharmaceuticals through safe, secure, and efficient pharmaceuticallogistics■ Business Overview
・Distribution of pharmaceuticals and other products, mainly generic drugs manufactured and sold by FELDSENF PHARMA・Business will begin in October 2024
April 1, 2024●
Establishment of acompany

June●
Licensed as apharmaceutical wholesaler

July●
Start trial at our directly-managed
pharmacies

October●
Commencement ofbusiness
Online Ordering

Order

Nanohana
Pharmacy

Arrival of
Goods

Network
affiliates

Shipment (delivered bydesignated delivery company)【Outsourcing of Logistics】
35

Earnings forecast for the FY3/2025: Consolidated Forecast
Despite the impact of wage hikes and the expected loss from the establishment of a new business (logistics
company), Sales and Profits are expected to increase due to an increase in the number of pharmaceutical network
affiliates, an increase in the number of prescriptions filled, and an improvement in the food service business.

(Unit: million yen)

FY3/24(Results)

FY3/25(Revised
Forecast)

ChangeChange (%)

Net Sales

115,361

122,000+ 6,638+ 5.8 %EBITDA

6,997

7,450

+ 452

6.1 %

6.1 %

0.0 pt+ 6.5 %

Operating Profit

3,832

4,000

+ 167

Profit margin

3.3 %

3.3 %

(0.0 pt)

Ordinary Profit

3,825

3,950

+ 124

Profit margin

3.3 %

3.2 %

(0.1 pt)

Profit attributable to ownersof parent

1,860

2,000

+ 139

1.6 %

1.6 %

0.0 pt

61.89

68.43

+ 6.54

Profit margin

Earnings per share(Yen)+ 4.4 %

+ 3.3 %

+ 7.5 %－

36

Earnings Forecast for FY3/2025 : Forecast by Segment■ Net sales(Unit: million yen)

FY3/24

FY3/25(Results)(Forecast)

ChangeChange (%)

115,361

122,000+ 6,638+ 5.8 %

Community Pharmacy
Network Segment*1

109,904

116,819+ 6,915+ 6.3 %

Leasing and Facility related
Segment
Meal Catering Segment
Home Visit Nursing Segment

6,285

6,255

(30)

(0.5%)(828)(1,075)(246)－

Net sales

Adjustments■ Operating Profit(Unit: million yen)
Profit percentage in brackets

3,832（3.3 %）

4,000（3.3 %）+ 167(0.0pt)+ 4.4 %

Community Pharmacy
Network Segment*1

6,433（5.9 %）

6,435（5.5 %）+1(0.3pt)+ 0.0 %

Leasing and Facility related
Segment
Meal Catering Segment
Home Visit Nursing Segment70（1.1 %）

228（3.7％）+ 158＋ 2.5pt+ 223.3 %(2,671)（－）(2,664)（－）+7

Segment profit

Adjustments－－*1 Community Pharmacy Business,3 Pharmacy Support Business(Pharmaceutical Network Division, Pharmaceutical Manufacturing and Sales Division, Digital Shift Division)37

FY3/2025: Earnings Forecast (comparison to previous term)■ Operating profit■ Net sales(Unit: million yen)

(Unit: million yen)

*1.2

YoY

FY3/2024
Results

FY3/2025
Forecast

No.of prescriptions atexisting pharmacies

+3.8%

＋1.8%

Prescription unit price atexisting pharmacies(0.7%)(1.1%)*1 Including the founding loss of MEDI LOGI NET,
Inc. established in April 2024.
*2 20 new pharmacy openings costs upfront.

Existing pharmacies are pharmacies that have been continuously open since April 1, 2022 for the fiscal year
ending March 31, 2024, and since April 1, 2023 for the fiscal year ending March 31, 2025.

38

FY3/2025：Prospective Dividends
・Basic policy
Maintain the necessary retained earnings to strengthen our financial position, expand the scale of our business,and develop our human resources, while at the same time paying stable dividends to our shareholders in a mannercommensurate with our business performance.
・Dividend forecast for the FY ending March, 2025,
We plan to pay interim and year-end dividends of 6 yen per share, for an annual dividend of 12 yen per share, based on the
consolidated forecast【Shareholder Return Indicators 】■ FY3/2024（Prospects）
Annual dividend per share
Dividend payout ratio■ FY3/2025（Forecast）
12yen
19.4%

Annual dividend per share
Dividend payout ratio

12yen
17.5%

【 Annual dividend per share trend 】

12yen

39

３
４
2024年3月期
Reference
業績予想
Materials

4040

Sustainability Initiatives
As a company that supports the health of local residents, we aim to achieve both a sustainable
society and sustainable growth.
Environmental
Conservation Initiatives

Contribution to Society【Rationalization of Pharmaceutical Distribution】

・Reduction of CO₂ emissions by reducing returns
and urgent deliveries, placing regular orders, andoptimizing delivery frequency
・Reduction of pharmaceutical waste through tradingof immovable inventory among pharmaceutical
network affiliates and proper inventory
control through inventory management system
・Efforts to share pharmaceutical inventory among
pharmaceutical network member affiliates【Support for public awarenessof transplantation medicine】

Strengthening Governance【Support for employment of people
with disabilities and domestic【Contributing to Society throughproduction of Chinese herbal raw Sports】
materials】

・Ensure compliance・Establishment of risk management system
・Improvement of financial structure
・Prompt and accurate information discrosure
41

Nanohana Pharmacy new commercial
now on view!

New Commercial
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MEDICAL SYSTEM NETWORK Co., Ltd.

[Contact us]
Corporate Management Divisionhttps://www.msnw.co.jp/eng

E-mail： info@msnw.co.jp

MSNW

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