The Alfresa Group’s Medium- to Long-Term Vision
In order to further increase the corporate value of the Alfresa Group, we formulated our business strategy and financial and capital strategies in the Medium- to Long-Term Vision ahead of the three-year 22–24 Mid-term Management Plan and up to fiscal 2032.
The Alfresa’s Group Medium- to Long-Term Vision Overview
Improve corporate value over the medium to long term by pursuing the Healthcare Consortium® and improving capital efficiency by controlling B/S (the balance sheet)
Business Strategy
Secure profit growth by enhancing the profitability of core businesses and expanding the revenue of growth and new businesses to encourage higher profits
- Core businesses: Become a leading wholesaler and the choice of suppliers and customers alike
- Growth businesses: Expand medical goods (medical devices, diagnostic reagents, nutritional foods, etc.)
Promote self-prevention products in the Self-Medication Products Wholesaling Business
Expand contract manufacturing and promote evelopment of pharmaceuticals for new businesses in the Manufacturing Business - New businesses：Promote business related to regenerative medicine products
Promote activities to connect people using digital tools
Promote entry into treatment-adjacent businesses
Financial and Capital Strategy
Achieve dividend on equity (DOE) of 2.4% or higher (increase gradually following the period of the 22–24 Mid-term Management Plan)
Acquire treasury stock amounting to ¥35.0 billion in fiscal 2023, then continue to acquire flexibly in subsequent years
- Achieve capital efficiency and work as a social infrastructure company to establish a stable financial base, and establish an optimal medium- to long-term capital structure
(owners’ equity ratio in the low to mid 30% range) - Realize optimal cash allocation to facilitate the sustainable improvement of corporate value by making a balanced consideration of continued investment, optimizing capital structure, and providing stable shareholder returns
- Increase DOE gradually, with an emphasis on sustainable and stable increases to dividends
Acquire treasury stock in a flexible manner with a view toward optimizing capital structure
Non-Financial (ESG) Strategy
【Environmental】 Reduce CO2 emissions and promote efficient use of energy【Social】 Invest actively in human capital【Governance】 Promote thorough compliance
Conditions Surrounding the Formulation of the Alfresa Group’s Medium- to Long-Term Vision
The Company’s stock price has placed its price-to-book ratio (P/B ratio) below 1.0 since fiscal 2020, so we are investigating a response policy to gain a clear understanding of the situation and improve market evaluation. To direct policies to increase corporate value over the medium to long term, we formulated the Alfresa Group’s Medium- to Long-Term Vision
Position of the Alfresa Group’s Medium- to Long-Term Vision
Roadmap to Realizing Our Vision
Business Strategy: Story of Social Value Creation
Business Strategy: Expansions and Reforms to the Business Portfolio (Net Sales)
Business Strategy: Target Business Domains and Synergies over the Medium to Long Term
(Enhance and expand total supply chain services)
Business Strategy: Investments under the 22–24 Mid-term Management Plan and the Alfresa Group’s Medium- to Long-Term Vision
Invest ¥120.0 billion over the course of the 22–24 Mid-term Management Plan
Invest ¥320.0 billion in the Alfresa Group’s Medium- to Long-Term Vision to promote growth
Financial and Capital Strategy: Target Balance Sheet over the Medium to Long Term (Optimal Capital Structure)
Controlling B/S (the balance sheet) toward an optimal capital structure with capital efficiency and stability
Financial and Capital Strategy: Cash Allocation under the 22–24 Mid-term Management Plan
Invest ¥120.0 billion in business continuity and growth investments, with plans for a 100% cumulative total shareholder return ratio over three years through cash flows from operating activities and sales of assets, with consideration given to utilizing debt.
*For details, please refer to the news release titled “Notice regarding Determination of Matters Concerning Share Buyback” published on the Alfresa Holdings Corporation’s company website on May 15, 2023
Financial and Capital Strategy: Reduce Cross-Shareholdings
Reduce cross-shareholdings to less than 10% of net assets over the period of the 22–24 Mid-term Management Plan
