MEDICAL SYSTEM NETWORK Co., Ltd.
First Quarter of Fiscal Year Ending March 2025

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

FY3/2025 1Q : Topics and Business Overview
Net Sales

YoY change

29,419 million yen＋6.4％（＋1,762 million yen)

Progress rate
vs. FY
24.1％

Operating Profit
468 million yen

YoY change＋3.7％（＋16 million yen)

Progress rate
vs. FY
11.7％

Both Sales and Profits at each level increased year-on-year.
●
Contribution of new openings and M&A of community pharmacies
in the last period.
○ Number of prescriptions at all pharmacies +4.3% YoY change●
The number of pharmaceutical network affiliates grew steadily,
although the volume of pharmaceuticals handled fell short of theplan.
Failure to achieve the plan due to sluggish growth in the number ofprescriptions, etc.
●
Rebound from the outbreak of multiple respiratory tract infectionsin the previous year.
○ Number of prescriptions at existing pharmacies (2.1%)
compared to plan
○ Unit price of prescriptions at existing pharmacies: +3.0%
compared to plan●
Preparatory expenses for the launch of the logistics business

Figures in parentheses indicate changes from the end of the previous FY* YoY＜ Community Pharmacy Network Segment ＞
Community Pharmacy

451 pharmacies（+1）

Prescription Unit price(All pharmacies)

10,027 yen（+156 yen）*

No. of prescriptions (All pharmacies)

2,481K （+4.3%）*

No. of prescriptions (Existing pharmacies)

2,336K （-0.1%）*~ Pharmacy Support Businesses ~Pharmaceutical Network Business•No. of affiliates

10,178 affiliates （+422）

Manufacture and Market Pharmaceuticals Business

Due to change incounting method
No comparison withprevious year•

No. of ingredients

49 ingredients•

No. of products

113 products（+10）•

No. of affiliates

5,171 affiliates（+1,529）*

Digital Shift Business•

No. User registrations

1.15MN（+100K）•

No. Installed pharmacies

5,217 pharmacies（+535)＜ Leasing and Facility related Segment ＞
Wisteria•

Occupancy rate of all 5 facilities

82.3%（-0.7%）

3

Table of Contents

Earnings Highlight・・・

5

Business Summary

・・・

11

Core strategies, Earnings Forecast for
FY3/2025

・・・

23

Reference materials

・・・

26

4

1
Earnings
Highlight

5

FY3/2025 1Q : Consolidated Results（Unit: million yen）

FY3/2024
1Q (results)

FY3/2025
1Q (plan)

FY3/2025
1Q (results)

YoY
ChangeChange (%)

FY3/2025
vs. 1Q plan

Net Sales

27,65629,26829,419+ 1,762+ 6.4%EBITDA*

1,202

－

1,278

Profit margin+ 75+ 6.3%－

4.3%

Operating Profit

451

628

468

1.6%

2.1%

+ 3.7%(25.5%)

4,000

Profit margin

+ 16

1.6%

Ordinary Profit

410

623

468

1.5%

2.1%

+ 58

+ 14.2%(24.9%)

3,950

Profit margin

1.6%

Profit attributable toowners of parent

148

283

170

1.0%

0.6%

+ 22

+ 15.1%(39.7%)

2,000

0.5%

－

－

68.43

Profit margin

Earnings per share
（Yen）

4.92

4.3%

－

5.85

+ 0.93+0.5%

FY3/2025
Full Year Forecast

122,000
7,450
6.1%

3.3%

3.2%

1.6%

* Calculated as "Operating income + Depreciation and amortization + Amortization of goodwill

6

FY3/2025 1Q : Results by Segment■ Net Sales（Unit: million yen）

FY3/2024
1Q (results)

FY3/2025
1Q (results)

ChangeChange(%)

27,656

29,419+ 1,762+ 6.4 %

Community Pharmacy
Network Segment *26,35628,029+ 1,673+ 6.3 %

Leasing and Facility Related Segment
Meals Catering Segment
Home Visit Nursing Segment

1,468

1,614

+ 145

+9.9%

Adjustments

(168)

(224)

(55)

451

468

+ 16

1.6 %

1.6 %

( 0.0pt)

Community Pharmacy Network
Segment *

1,077

1,061

(16)

4.1 %

3.8%

(0.3pt)Leasing and Facility Related Segment
Meals Catering Segment
Home Visit Nursing Segment

(0)
－

2.9%

Adjustments

(626)
－

(639)
－

Net Sales■ Operating Profit－（Unit: million yen）
Profit margin in brackets

Segment Profit

46+ 3.7 %
(1.5)%

+ 46

－

(13)
－

－

* Community Pharmacy Business, Pharmaceutical Network Business, Manufacture and Market Pharmaceuticals Business, Digital Shift Business,
and Pharmaceutical Logistics Business7

FY3/2025 1Q : Consolidated Financial Results - Quarterly■Net sales・Operating profit（Quarterly Trends）
・Although there was a reaction to increased incidence of infection outbreaks in the previous fiscal year in the first quarter, newpharmacies opened in the previous fiscal year and M&A pharmacies contributed to the results, and the number of network affiliates
grew steadily, resulting in an increase in both sales and profit.
・Operating Profit tends to be lower in 1Q due to the impact of the revision of medical service fees and seasonal
factors.

Net sales（Unit: million yen）

Operating profit*** Includes 209 million yen
of inflation allowance paid

8

FY3/2025 1Q : Consolidated Balance Sheet■End of FY3/2024■End of FY3/2025 1Q（Unit: million yen）

（Unit: million yen）

Assets

68,149 Liabilities

52,930Assets67,779 Liabilities

52,548Current assets

20,773 Current liabilities

23,213Current assets

20,016 Current liabilities

23,918Cash and deposits

8,273 Short-term loans*¹

5,710

Cash and deposits

6,723 Short-term loans*¹

6,277

Fixed liabilities

29,716

Fixed liabilities

28,630

Fixed assets

47,376 Long-term loans

18,309Fixed assets

47,762 Long-term loans

17,189Tangible fixed assets

28,336 Net assets

15,219Tangible fixed assets

28,751 Net assets

15,230Intangible fixed assets

11,281 Share capital

2,128

Intangible fixed assets

11,139 Share capital

2,128

Goodwill

10,613 Capital surplus

937

Goodwill

10,463 Capital surplus

946

Investments and otherassets7,759 Retained earnings

Investments and otherassets7,872 Retained earnings

Total assets

68,14913,100Treasury shares(882)

Total liabilities andnet assets

68,149Total assets

22.3%

Equity ratio

Equity ratio（Equity ratio with taking into account net cash*²

25.3%)

67,77913,094

Treasury shares(891)

Total liabilities andnet assets

67,779（Equity ratio with taking into account net cash*²

22.4%
24.9%)*1 Includes long-term loans that will be repaid within 1 year
*2 Own capital / (Total assets – Cash and deposits)

9FY3/2025 1Q : Consolidated Cash Flows
EBITDA*
Income taxes paid
Changes in working capital

1,278 million yen(1,030) million yen
404 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)(786) million yen(308) million yen(184) million yen

Loan amount reduced(552) million yen

Operating CF increased in 1Q FY3/2024 due to one-time reasons such as tax refund. (Reference) FY Mar.2023 1Q Operating CF: 653 million yen

102
Business
Summary

11

Community Pharmacy Business：
Trends in No. of Pharmacies
6 newポイント
outlets since the end of the previous FY, Acquired 1 pharmacy through M&A, closed 6 pharmacies, or〔Medical Mall〕
Hokkaido area〔Medical Mall〕 transferred business. As of the end 1Q, we expect123
New pharmacy openings to exceed the full year
outlets
plan.
FY3/2025 （As of June 30）〔Nanohana Pharmacy
Front of Itabashi Ward Office〕

Chugoku/Shikoku

22
outlets

Tokai/Hokuriku

Tohoku area

44
outlets

31
outlets

KyushuKanto/Koshinetsu

Kinki
52
outlets

72
outlets

Fixed No. /results in 1Q

Full
Year
Plan

No. of openings

22 / 620

No. of prospects
connected to
Medical Institutions

11 / 2

10〔Nanohana Pharmacy
Front of Sapporo Kotoni station〕

107
outlets〔Medical Mall〕〔Nanohana Pharmacy
Minatomirai〕

Record 22
new pharmacy openings expected■ Community pharmacy outlet no. trends※of the past 10 years

As of June 30, 2024

FY3/2016

FY3/2017

FY3/2018

FY3/2019

FY3/2020

FY3/2021

FY3/2022

FY3/2023

FY3/2024

FY3/2025 1Q

Openings

9

8

8

5

8

7

12

8

13

6

Closing andtransferring

(8)

(4)

(5)

(14)

(15)

(13)

(6)

(7)

(9)

(6)

M&A

7

20

19

30

3

6

3

2

18

1

No. of outlets

353

377

399

420

416

416

425

428

450

451

12

Community Pharmacy Business :Monthly Dispensing Fee（YoY)

1st half total
all pharmacie +5.5%
existing pharmacies +3.7％

2023

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

1Q total
all pharmacies +5.9%
existing pharmacies +2.2％

2024• Existing pharmacies definition: Pharmacies that have been continuously open since April 1, 2022 for the previous fiscal year and since April 1,
2023 for the current fiscal year

13

Community Pharmacy Business :Monthly Prescription Volume and Unit Price of Existing Pharmacies（YoY)
Although the number of prescriptions filled decreased in reaction to the outbreak of multiple respiratory
infections in the previous fiscal year and the impact of fewer business days than in the previous fiscal year,
the unit price of prescriptions rose due to an increase in the unit price of drug charges.

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

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

1Q total
Unit price +2.4％
No. of prescription (0.1％)

2024
2023

14

Community Pharmacy Business : Dispensing Fee Breakdown
FY3/2024
1Q■ All pharmacies
No. of prescriptions (1,000)

Unit price(yen)

FY3/2025
1Q

ChangeChange (%)

2,379

2,481

+ 102

+ 4.3%

Drug charge perprescription

7,526

7,640

+ 114

+ 1.5%

Technical fee perprescription

2,345

2,387

+ 42

+ 1.8%

9,871

10,027+ 156+ 1.6%

23,48424,878+ 1,394+ 5.9%

2,339

2,336

(3)

(0.1%)

Drug charge perprescription

7,586

7,765

+ 179

+ 2.4%

Technical fee perprescription

2,350

2,406

+ 56

+ 2.4%

9,935

10,170+ 235+ 2.4%

23,247

23,764+ 517+ 2.2%

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

15

Community Pharmacy Business : Dispensing Fee Revision
・Although the weighted average number of points decreased from the end of the previous fiscal year
due to the end of the transitional measures for the Additional Allowance related to Community
Support System, the acquisition of points exceeded our original plan.
・We continue to focus on interpersonal services.
Weighted average number of points (points)

70.3

74.4

■ Community support system premium ratio

74.9*The percentage contribution for pharmacies with 0-point
regional support system surcharge has increased since the endof March 2024. This is because many pharmacies acquired
through M&A in the 4Q of FY2024/3 received 0 points.
Note that the calculation percentage at the end of March 2024
does not include pharmacies acquired through M&A in the 4Q of
FY2024/3.

■ Main contents of the FY2024 revision of dispensing fees
・Basic dispensing fee : flat +3pt
・Community support system surcharge : flat -7pt
・Strengthened collaboration surcharge : 2pt ⇒ 5pt (+3 pt)
・Medical DX promotion system preparation surcharge :New 4pt

16

1
Pharmacy Support Businesses*：

Performance Summary
Supporting community pharmacies with Pharmaceutical Networks at the core, Manufacture andMarket Pharmaceuticals, and our Digital Shift and Pharmaceutical Logistics Initiatives.
■ Progress against numerical targets for FY 2025/3
Progress（As of June 30）

FY 2025/3 Numerical targets

Pharmaceutical Network
Business

10,756 affiliates（+1,000 affiliates）

10,178 affiliates+422 affiliates（From the end of the previous FY）
10,324 affiliates（As of July 31）

5,171 transacting pharmacies＊2+1,529 pharmacies（YoY）
Manufacture and Market
Pharmaceuticals Business

7,000 transacting pharmacies（＋2,002 pharmacies）＊2No. of5,700 installed pharmacies（+1,018pharmacies）

5,217 installed pharmacies+535 pharmacies（From the end of the previous FY）

1.4 million registered users（+350K users）

1.15 million registered users+100K users（From the end of the previous FY）

transacting pharmacies is total
pharmacies that have actually transacted
business since April of each year.

Digital Shift Business*1 Pharmaceutical Network Business, Pharmaceutical Manufacturing and Distribution Business, Digital Shift Business, Pharmaceutical Logistics Business17

Pharmaceuticals Network Business:
Performance Summary
No. of new affiliates increased by 422 from the end of the previous FY to 10,178
Ordering volume of pharmaceuticals （Unit : billion yen）

10,178

Network affiliates （Unit: No. of network affiliates）

1,609

New membership picked up versus
last year when affiliates were more
inclined to wait till remuneration
system revisions became clear.

1Q

18

Manufacture and Market Pharmaceuticals Business：
113 products / 49 ingredients ( 10 products were added in 1Q )・The number of new transacting pharmacies, particularly pharmaceutical network affiliates, increased steadily.
✔ New transacting pharmacies +411
*No. of products adjusted for shipment as of June 30: 6 products / 3 ingredients ( End of March 2024：6 products / 3 ingredients)■ Net Sales and No. of transacting
pharmacies■ June 2024 New products.
4.4 billion yen

7,000 pharmacies
1Q

Product name
5,171
pharmacies

4,998
pharmacies

2.6 billion yen
1.8 billion yen
1.1 billion yen
1,592
pharmacies

3,737
pharmacies

3.2 billion yen

2,678
pharmacies

0.99 billion yen*No. of transacting pharmacies is total pharmacies that have

Indications or Effects*partly omitted

Loratadine tablet / OD tablet
10㎎ ”Feldsenf”

Allergic rhinitis, urticaria, etc.

Rosuvastatin OD tablets
2.5㎎/5㎎ ”Feldsenf”

hypercholesterolaemia
Familial hypercholesterolaemia

Zonisamide OD tablets
25㎎/50㎎ TRE ”Feldsenf”

Parkinson's disease, etc.

Tolvaptan OD Tablets
7.5㎎/15㎎ ”Nipro”

Fluid retention in heart failure/cirrhosis whereother diuretics such as loop diuretics are
insufficiently effective

ILUAMIX Combination Tablets
LD/HD ”Daito”

hypertension

actually transacted business since April of each year.

19Digital Shift Business : 1.15 million users registered
Official LINE Account・1.15 million users have registered and 5,217 pharmacies have installed the service.
・Medical DX efforts are accelerating in light of dispensing fee revisions, and orders are strong■ No. of users registrations and■ Response to revisions to dispensing fees

installed pharmacies
1.15M users① Conforms to revised electronic medication handbook guidelines.

5,217
pharmacies

・Published on the MHLW website portal as an electronic version of theMedication Handbook (compliant with the guidelines).

② Obtained international certification for information security
・In addition to the Privacy Mark,we have acquired ISMS certification.

③ "Home support function" released
・Main function
Faxing and emailinghome reports

4

Patient interview
checklist

20
2
n/

ar
M

Ju

/2
02

4

23
Se
p/

20

3
/2
02
M

ar

20
Se
p/

M

ar

/2
02

2

22

Efficient creationof home reports→ Additional functions to be released in the future include the creation ofcontracts and plans, dashboard functions, etc.
20

Leasing and Facility related Segment
Leasing and Facility related Segment
Net sales
942 million yen （YoY +17.8％）
Operating profit 56 million yen （YoY +145.5％）
・Increase in orders received for Construction work
・11 new move-ins, 14 move-outs
・Occupancy rate in Wisteria improved by 1.7 pt year-on-year.
・Implement effective advertising through appropriate cost control

Wisteria Occupancy Rate Trends

All 5 buildings occupied：82.3％(End of FY 3/2025 target：
87.8% occupancy rate)21

3Core strategies,
Earnings
Forecast for
FY3/2025【Republish】

22

FY3/2025: Core Strategies
Focused measures for the current period and Target value
Community
Pharmacy
Business■■■■

Fostering a medical mindset and providing high-quality drug treatment
Steady response to medical DX Number of existing pharmacies YOY +1.8%
Development of new 20 pharmacies, mainly in medical malls
Increased productivity through appropriate cost controls

3 pharmacy support business■

10,756 affiliates at the end of March 2025 (+1,000 )■Promote distribution improvement; Our pharmacies Deliver once a day on weekdays, nodeliveries on Saturdays, and reduce urgent deliveries■

Core system renovation and renewal■

Expansion of services ; Establishment of an area network beyond the confines of the Member
pharmacies

Manufacture andMarketPharmaceuticals
Business■■

Stable supply
No. of transaction pharmacies including network affiliates : 7,000 (+2,002)

Digital ShiftBusiness■■

No. of installed pharmacies : 5,700 (+1,018), 1.4 million user registrations (+350K)
Continued enhancements

Leasing and Facility related
Segment■■

Achieved 87.8% occupancy rate and stable operation in Wisteria
Appropriate cost control and Implementation of effective advertising

Meal Catering Segment, Home
Visit Nursing Segment■

Countermeasures against price increases and addressing profitability

Investment and Financial
Strategies■■

Pharmaceutical logistics company Mediloginet is launched as a new business
Secure profit and build up capital through cost control

Community
Pharmacy
Network
Segment

Pharmaceuticals
NetworkBusiness

23

Repubish

Earnings Forecast for 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(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 %

(0.0pt)Ordinary profit

3,825

3,950

+ 124

Profit margin

3.3 %

3.2%

(0.1 pt)

Profit attributable to owners ofparent

1,860

2,000

+ 139

1.6 %

1.6 %

0.0 pt

61.89

68.43

+ 6.54+ 4.4 %

+ 3.3 %

+ 7.5 %

Profit margin

Earnings per share
(Yen)

－

24

Repubish

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*

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%)

Adjustments(828)(1,075)(246)－

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

Segment profit
Community Pharmacy
Network Segment*
Leasing and Facility related
Segment Meal Catering
Segment Home Visit Nursing
Segment
Adjustments

3,832(3.3 %)

4,000(3.3 %)+ 167（0.0pt）+ 4.4 %

6,433

(5.9 %)

6,435(5.5 %)+1（0.3pt）+ 0.0 %

70

(1.1%)

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

(－)

+7

－

－

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

25

３
４
2024年3月期
Reference
業績予想
Materials

26
26

Sustainability Initiatives
As a company that supports the health of local residents, we support sporting events and activities
in the medical and welfare fields.

■ Examples of Initiatives

Special co-sponsor of the 7-man rugby tournament"Japan Sevens 2024
・July 15, 2024 at Chichibunomiya Rugby Stadium・Finding Talent and Creating Opportunities to Compete for
Olympic Medals©JRFU

・Nanohana Pharmacy commercial aired at the venue

Sponsored UHB Hokkaido Bunka Broadcasting's medical
program "Understanding Illness with Hiroko Matsumoto
・Broadcasts on the fourth Sunday of every month at 6:15 a.m.
・Next scheduled broadcast: August 25
Organ Transplantation Series (5): Liver Transplantation
Quote (from Hokkaido Bunka Broadcasting Corporation's "Yuko Matsumoto's
Disease" website)27

Nanohana Pharmacy new commercial
now on view!

New Commercial
YouTube QR Codeclick

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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