MediPal : Notice of Completion of MEDICEO “Medical Distribution Center Kobe”

May 27, 2025 MEDIPAL HOLDINGS CORPORATION

MEDICEO CORPORATION(Chuo-ku, Tokyo; President: Kuniaki Imagawa; "MEDICEO"), a consolidated subsidiary of MEDIPAL HOLDINGS CORPORATION, is pleased to announce the completion of construction of its Medical Distribution Center ("MRC") Kobe in Kato City, Hyogo Prefecture. MRC Kobe is a distribution center that handles logistics operations such as order receipt, storage, management, and shipment of products consigned by pharmaceutical companies with manufacturing bases ("manufacturer logistics") in western Japan. The capital investment is expected to be approximately 6.4 billion yen.

Through business activities that support the distribution of "Pharmaceuticals, Health, and Beauty," our group is promoting multifaceted activities to realize a sustainable society. As part of these efforts, in recent years, we have been working to optimize logistics with a view to the entire supply chain from pharmaceutical companies to the final consumers, namely medical institutions, insurance pharmacies, and patients, in response to the demand for more efficient logistics.

MRC Kobe, which handles manufacturer logistics, will be the third MRC following MRC Tokyo and MRC Chugoku, which are already in operation. The center is a fully renovated version of MEDICEO's West Japan Logistics Center, which was in operation until January 2024. In addition to high-level logistics functions that comply with GDP Guidelines*1, the center is equipped with many labor-saving and manpower-saving functions, and is prepared to respond to green logistics in consideration of the environment. We have a system in place to ensure that we take all possible measures to promote sustainability.

MEDICEO will strive to optimize the entire supply chain from pharmaceutical companies to the final consumers and further contribute to healthcare and patients, by seamlessly linking these MRCs with ALCs*2located in 13 locations nationwide that handle delivery and distribution of products ordered by customers up to delivery.

*1 GDP (Good Distribution Practice) Guidelines: Guidelines for Good Distribution Practice for pharmaceutical products issued by the Ministry of Health, Labour and Welfare in 2018.

*2 ALC (Area Logistics Center): A state-of-art distribution center that supplies prescription pharmaceuticals, medical supplies and other items primarily to dispensing pharmacies, hospitals and clinics.

• Establishment of a Totally Optimal Distribution Platform from Pharmaceutical Companies
  
  
  to the Final Consumers

  Manufacturer Factories

  Manufacturer's

  Warehouse Wholesale and ALC

  Medical Institutions

  MRC Kobe is a logistics center that serves as a foundation linking supply and demand, safely storing and transporting the products of various pharmaceutical companies, thereby contributing to the optimization of the entire supply chain.

  (Reference)
• About the Facility

1. Outline

   1. Name: Medical Distribution Center Kobe

   2. Location: 6-6-2, Minamiyama, Kato City, Hyogo Prefecture

   3. Surface area 30,981 ㎡

   4. Building area 15,029 ㎡

   5. Extended bed area 44,585 ㎡

   6. Structure: Iron skeleton structure (earthquake resistant structure), 3-stage above ground construction

2. Features

   1. High-level logistics functions in compliance with GDP guidelines

      In compliance with GDP guidelines, we maintain SOPs* that correspond to each manufacturer's procedures and perform appropriate storage and management, including temperature control, counterfeit drug control, and hygiene control.

      *SOP (Standard Operating Procedures): Standard operating procedures that comply with GDP Guidelines

   2. Labor and manpower saving

      In preparation for the future decline in the workforce, we are introducing significant automation equipment. For the unloading of heavy items, robots have been introduced for automatic unloading and balancers have been introduced to reduce the workload of workers. Furthermore, for transportation within the center, unmanned automatic guided vehicles (AGVs) and high-speed pallet transfer carts have been introduced to achieve labor and manpower savings throughout the center.

   3. Green Logistics (SDGs)

      The center aims to reduce greenhouse gas emissions and environmental impact by improving the efficiency of transportation vehicles through joint storage, transportation and delivery. In addition, the introduction of a receiving reservation management system will reduce truck waiting time at the time of receiving, thereby realizing smooth logistics operations.

   4. Establishment of a system that takes all possible measures to promote sustainability

   MRC Kobe is fully equipped to handle all storage temperature zones, as well as to realize "non-stop logistics" even in the event of a disaster, including stable operation with in-house power generation equipment and instantaneous voltage drop compensation equipment, and prevention of falling or damaged products with seismic isolation equipment (μ-Solator™ ). We are striving to build a system to realize "unstoppable logistics" even in the event of a disaster. 3.

3. Capital Expenditures (planned)

   Total amount: approx. 6.4 billion yen (building, facilities, equipment, etc.)

4. Start of operation Mid-October 2025

Mid-October 2025

CONTACT:

MEDIPAL HOLDINGS CORPORATION

Public Relations Department Tel: +81-3-3517-5171

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