A Financial Base That Supports Stability and Growth

Our financial foundation has been challenged by a persistent decline in ROE over the past 10 years. In response, the Medium-Term Business Plan sets forth three basic policies: improving capital probability to exceed the cost of capital, delivering stable and continuous shareholder returns, and enhancing ROI through strengthened investment discipline. Based on these policies, we will steadily carry out the capital investments necessary to maintain our production infrastructure, while actively promoting growth investments aimed at expanding our future earnings base.

Analysis of Current Situation (1) (Trend of Past Capital Profitability)

Analysis of Current Situation (2) (Yearly Trends in ROE and PBR over the Past Decade)

Performance targets

We aim to reinforce our organizational capabilities through structural reforms currently underway since FY2025, and to achieve stable growth of our core business, Premium Surgical Kits. At the same time, we will strengthen our production capacity and procurement capabilities for materials, whose prices continue to rise, thereby working to improve cost structure and restore profitability. We also plan to proactively invest in areas such as human resources and IT, in preparation for future growth.

Shareholder return policy

Under the current Medium-Term Business Plan phase of FY2025 to FY2027, we plan to implement progressive dividends by increasing dividends per share by approximately 15 yen each fiscal year, along with a large-scale share buyback, in order to achieve our ROE target of 6.0%. From FY2028 onward, we will consider shareholder returns based on a progressive dividend policy with a minimum DOE of 3% as the basic approach.

Cash allocation
(FY2023-FY2026: three-year total)

With a focus on improving capital efficiency and conscious of capital costs, we will optimally allocate capital to growth investments and shareholder returns by utilizing operating cash flows generated through profit growth as well as external funding such as borrowings.

Supporting Challenges Through the Effective Use of Capital

Executive Officer General Manager of Corporate Strategy Dept., Business Administration Div.

Yoshihiko Tenbo

Capital allocation is not only about meeting the expectations of investors—it also creates opportunities for employees to take on new challenges, which in turn leads to greater customer satisfaction. To remain a company that effectively utilizes capital, we will continue to reexamine the significance of past, present, and future expenditures and investments, and promote their visualization and systemization.