November 8, 2016(Translation)
Company Name
Representative
Stock CodeContacte-mailEPS Holdings, Inc.
Yan Hao, Chairman &CEO4282, TSE First Section
Shuzo Orihashi
Director & Executive Corporate Officer
ir@eps.co.jp

Notice Regarding the Establishment of a New Mid-Term Business Plan
In view of recent trends in the external environment and business performance, EPS Holdings, Inc.
hereby announces a newly-devised mid-term business plan (for the five years from FY September 2017 toFY September 2021) as follows:1.

Progress of Current Mid-Term Business Plan
In November 2014, the EPS Group announced a three-year business plan set to end this fiscal period(the period ending September, 2017). Numerical targets of the plan are as set out below.
< Target of Consolidated Net Sales and Operating Income >FY 2015/9（JPY million）
FY 2017/9

FY 2016/9

Net Sales

44,12047,50052,500Operating Income

4,625

5,500

6,700

The plan has proceeded favorably, particularly insofar as having achieved the sales targets for the outyear of the plan ahead of schedule in the preceding fiscal period. Accordingly, the EPS Group has newly
established a five-year plan culminating in the period ending September 2021 in light of a variety of factors,
including the 30th anniversary of the Group’s founding in that period.

2.

Overview of the New Mid-Term Business Plan
2.1 Basic Policies“We will contribute to the advancement of the healthcare industry by providing high-value-added
solutions to our clients.” is the driving philosophy of the EPS Group, and for the duration of the new
mid-term plan we shall remain steadfast as always in adhering to this driving philosophy as we institutethe following fundamental policies:（１） Establishing a Firm Position as a Provider of Solutions in the Healthcare Industry
While the EPS Group currently offers a variety of specialized services targeted primarily toward thepharmaceutical industry, we will aim to promote growth of our customer base to the healthcare industry
at large, including the medical equipment industry, hospitals, and more, in conjunction with growing ourexisting businesses as well as improving and enhancing the quality of a variety of services. Specificmeasures to be implemented are as follows:①

Providing solutions intended to enhance customer value(ア)Integrating an assortment of services based on the business needs of clients andoffering solutions that match those needs.

(イ)

Improving the quality of services and developing new services that are both alignedwith and anticipatory of the front-line needs of clients.

②Working toward and establishing business models that enable sustainable growth(ア)

Refining existing business models by means such as restructuring intra-group
operations(イ)

Creating new business models by means such as partnerships with outside parties（２） Securing the Scale
The EPS Group has established a steady foothold in the domestic Japanese market primarily
in areas related to clinical trials. However, in view of expected intensification in competition with
global leaders in the industry moving forward, the EPS Group will promote further bolstering of
its base in the domestic market as well as strengthening a framework to enhance its ratio of
business overseas, which still remains at 15%. Specific measures to be implemented are as
follows:①

Securing the top position in the domestic market(ア)Securing the top position in the sector related to clinical trials (contract researchorganization, “CRO,” and site management organization, “SMO”)(イ)

Further growth in our contract sales organization (“CSO”) business and creation of newventures geared toward new client bases such as hospitals②Enhancing expansion overseas(ア)Strengthening foundations in the Asia-Pacific market(イ)

Establishing a presence in American and European markets（３） Strengthening and Establishing a Structure of Management
In order to respond to the rapid growth in business scale and diversification of recentyears, the EPS Group adopted a holding company system in January of last year and, inassociation therewith, has proceeded with instituting organizational structure, including theactive decentralization of power delegated to each respective business segment. For theduration of the new mid-term business plan, we will deliver synergistic effects between each
respective business segment and aspire to the sound, sustainable advancement of theorganization, pushing forward with the following measures:①

Strengthening and establishing the basic structure of the management structure(ア)

Enriching the independent and autonomous management of each respective businesssegment(イ)②

Promoting group management

Promoting a management system that enables sustainable growth(ア)Further development of the basic structure of the management system from above(イ)Training and producing management personnel that will lead the next generation

2.2 Numerical Target and Plan
（１）Numerical Target of Out Year (FY2021/9)
ItemTarget

Net Sales

100 billion JPY

Operating margin

12.5％

CAGR

13.7％

Overseas Ratio

30%（２）Numerical Plan

（JPY : 100 million）
FY 2016/9

FY 2017/9

FY 2019/9

FY 2021/9

ResultsPlan

PlanPlan

CAGR

Net Sales

527580

750

1,000

13.7%

Operating Income

6265

90

125

15.0%

11.8%

11.2%

12.0%

12.5%-Overseas

Domestic

Operating Income MarginCRONet Sales

268294

380

500

11.9%

SMO

Net Sales

109

128150

200

12.8%

CSO

Net Sales

75

83

115

15014.8%

Subtotal

Net Sales

453505

645

850

12.6%

GR

Net Sales

40

51

90

150

29.9%

EKISHINNet Sales

3960

100

150

30.5%

Subtotal

Net Sales

80

111

190

300

30.2%

2.3 Actions for the Successful Accomplishment of the Plan
To successfully achieve the objectives of the plan, we will execute all action measures in line withThe Three Principles of Behavior listed below, which have long been held by the EPS Group.
Customer Oriented: We always place the highest priority on meeting client’s needs andproviding high-value-added service.
Business Oriented: We contribute to the advancement of society through sustained
development of our business
Human Oriented: We grow through our service to clients, and improve quality of life (QOL) of all
stakeholders
Specific measures to be implemented in each respective business segment are as follows:（１） Domestic①CRO Business (Japan)(ア)Improving existing products that match clients’ needs along with developing newproducts that anticipate those needs, as well as exceeding the market growth rate byensuring and maintaining stable supply(イ)②

Active development of new businesses including M&As

SMO Business (Japan)(ア) Improving supply capacity utilizing the largest-scale CRC and our network of facilities,
as well as expanding market share by enhancing expertise in areas such as oncology(イ) Active development of new businesses including M&As, particularly creating newservices geared toward contructed hospital, crinics.

③

CSO Business (Japan)(ア) Expanding a unique contract sales organization (“CSO”) combining contract medical
representatives (“CMR”), drug information management (“DI”), post-market surveys(“PMS”), MR direct services, and more(イ) Active development of new businesses including M&As, particularly BPO services,which are highly-specialized（２） Overseas①Global Research (“GR”) Business(ア)Strengthening and establishing an operational system in three regions: Japan, China,
and the Asia-Pacific(イ)Strengthening Japanese operations and promoting business development in Europe
and the United States(ウ)②

Establishing a global management system that can withstand business growth

EKISHIN (China) Business(ア)Strengthening and expanding the operations of our pharmaceutical and medical
devices business(イ)

Accelerating commercialization of investment in pharmaceutical ventures, etc.

(ウ)

Expanding and enhancing existing businesses, utilizing management basestrengthened by our capital partnership with SUZUKEN CO., LTD., as well as exploringnew businesses such as medical services, nursing care, and more