Suzuken Co., Ltd.TSE: 9987

One Team Report 2025

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One Team Report

2025 Suzuken Group Integrated Report


‌Suzuken Group Integrated Report 2025

Contents

Contents

About Suzuken Group Toward Realizing a Health Creation Enterprise Implementing Value Creation and Growth Strategies Results and Challenges by Segment Governance Financial and Corporate Information 01

About Suzuken Group

  1. Contents

  2. Editorial Policy

  3. Philosophies

  4. At a Glance

  1. Milestones in Business Expansion

  2. Our Vision

    Toward Realizing a

    Health Creation Enterprise

  3. Message from the President

  1. Management Capital

  2. Value Creation Process

  3. Value Proposition for Stakeholders

  4. Material Issues

17 Long-Term Management Plan 18 Medium-Term Management Plan

Implementing Value Creation and Growth Strategies

Business Strategy 22 Improving Productivity in Healthcare Distribution and Reducing Social Costs 25 Creating New Services Based on Medical and Nursing Care Needs Infrastructure Enhancement 27 Building a Digital Platform 29 Logistics Platform as Social Infrastructure 31 Financial / Capital Strategy Sustainability Initiatives 34 Sustainability Management 36 Human Capital Management

  1. Social Contribution Activities

  2. Addressing Climate Change

Results and Challenges by Segment

Governance

Financial and Corporate Information

Segment Reports

  1. Pharmaceutical Distribution Business

    45 Healthcare Product Development Business 47 Community Healthcare and Nursing Care Support Business 49 Specialty Drug Contract Distribution Business 51 Healthcare-Related Services Business 53 Executives 55 Corporate Governance 61 Compliance / Risk Management 65 Director Roundtable Discussion

    1. 11 Years of Financial Highlights (Consolidated)

    2. Non-Financial Highlights (Consolidated)

    3. Stock Data

    4. Corporate Data





    ‌Suzuken Group Integrated Report 2025

    Editorial Policy

    About Suzuken Group Toward Realizing a Health Creation Enterprise Implementing Value Creation and Growth Strategies Results and Challenges by Segment Governance Financial and Corporate Information 02

    Editorial policy Scope of reporting

    About "One Team Report 2025" ■ Organization

    In 2016, the Suzuken Group began to issue a One Team Report that integrates the content previously included in our Annual Report and CSR Report and presents both financial and

    non-financial information. It is our hope that through this report, a wide range of stakeholders including shareholders, investors, and others will gain a deeper understanding of the Group.

    The performance and financial data in this report are based on the annual securities report.

    In its One Team Report 2025, the Group explains the progress and outlook for its transformation into a "Health Creation Enterprise" looking ahead to its 100th anniversary in 2032. Within the medium-term management plan "For your next heartbeat - Creating a movement toward tomorrow," the report presents the Group's pursuit of "ambidextrous management," simultaneously driving the transformation of its existing businesses centered on pharmaceutical distribution and the creation of new growth businesses leveraging digital technologies. It offers a clear, reader-friendly introduction to initiatives such as reforms in healthcare distribution, smart logistics, and the development of information businesses, all aimed at solving social issues while driving corporate growth.

    The report discloses KPI progress on both financial and non-financial fronts and, as part of strengthening human capital, includes messages from frontline employees alongside those from executives. From a frontline perspective, it communicates the overall scope of business activities rooted in our founding spirit-"For society and for people" and "Learning from our customers"-our mission to maintain the function of pharmaceutical distribution as social infrastructure, and our commitment to ongoing transformation.

    Suzuken Co., Ltd. and 40 consolidated subsidiaries

    This report uses the notations below to indicate the reporting scope. Item-specific differences are stated separately.

    Suzuken Group / The Group / Our Group: Suzuken Co., Ltd. and

    40 consolidated subsidiaries

    Suzuken / The Company / Our Company: Suzuken Co., Ltd.

    • Reporting period

    April 1, 2024 - March 31, 2025

    However, some information from April 2025 onwards is also included.

    Forward-looking statements

    This report contains forward-looking statements regarding the future of the Group, based on assumptions, expectations, and plans that Suzuken's management considered appropriate at the time of preparation. However, such statements, being predicated on presuppositions, involve risks and uncertainties. Accordingly, please be aware that actual performance may differ from such statements due to changes in social and economic conditions.

    IR related materials

    Summaries of Financial Results

    Financial Results Presentation Materials

    Financial Statements

    Data Book

    Corporate Governance Reports

    Suzuken Group Website



    ‌Suzuken Group Integrated Report 2025

    Philosophies

    About Suzuken Group Toward Realizing a Health Creation Enterprise Implementing Value Creation and Growth Strategies Results and Challenges by Segment Governance Financial and Corporate Information 03

    The very heart of our founding

    For Society and for People Learning from our customers

    Corporate philosophies of the Suzuken Group Message from the Suzuken Group

    The Group's customers include not only medical institutions, pharmacies, and pharmaceutical manufacturers, but also those working in medical and nursing care, patients, and even local residents and local communities.

    Recognizing the relationships of trust that we have built with our customers thus far as a traditional asset, we deliver value that contributes to solving

    Hiromi Miyata

    Yoshiki Bessho

    Business domain

    The Reason for Existence and Duty

    brings together the collective wisdom of the

    Group to continuously contribute to fulfilling lives filled with smiles for all people.

    Vision

    Ideal Vision of the Future

    As a "health creator," the Suzuken Group is

    committed to pioneering new value across diverse healthcare fields, aiming to be the best partner that brings smiles to all people.

    Value

    Code of Conduct

    SMILE

    We are a company that embodies

    Sincerity

    and Morality,

    leverages a unique Identity,

    continuously Learns from our customers, and strives for Evolution.

    With "Smile" expressing key ideas of its corporate philosophies, the Suzuken Group is committed to creating healthy, prosperous lives for all people.



    Mission

    As a "health creator," the Suzuken Group

    social issues and reducing social costs.



    Health creation

    Creating healthy and prosperous lives for all people-The Suzuken Group has defined its business domain as "health creation" and is comprehensively developing medical and health-related businesses.

    Supreme Advisor SUZUKEN CO., LTD.

    Director and Chairman SUZUKEN CO., LTD.

    ‌Suzuken Group Integrated Report 2025

    At a Glance

    About Suzuken Group Toward Realizing a Health Creation Enterprise Implementing Value Creation and Growth Strategies Results and Challenges by Segment Governance Financial and Corporate Information 04

    Group and Business Overview

    2,399.9

    Establishment

    93

    Net sales by business

    Healthcare product development business

    rd anniversary

    (November 2025)

    Since its founding in November 1932, the company has been supplying pharmaceuticals throughout Japan and expanding its business to meet evolving social needs.

    Community healthcare and 52.6 billion yen nursing care support business

    Specialty drug contract distribution business

    295.4 billion yen

    94.4 billion yen

    Healthcare-related services business

    1. billion yen

Pharmaceutical distribution business 2,313.9 billion yen

billion yen

As a company in the business of "health creation," we operate a broad portfolio of healthcare-related businesses, centering on the wholesale distribution of ethical drugs. Beginning in FY2024, the Specialty Drug Contract Distribution Business was newly elevated to a standalone segment, increasing the total number of business segments to five.

201

15

Note: Net sales include intersegment sales.

Number of Group companies

51

Pharmaceutical distribution business

21.5

Domestic market share of ethical drugs

(drug price basis)

Number of sales offices Number of distribution centers

companies

The Suzuken Group consists of Suzuken Co., Ltd., 40 subsidiaries, and 10 affiliated companies. In addition to this, we are partnering and collaborating with a wide range of external companies.

%

Four companies account for 90% of Japan's ethical drug distribution market. In that context, Suzuken has maintained a market share of 20% or more for ten consecutive years.

nationwide

We have a sales and distribution network covering all of Japan, and we are constructing a sustainable pharmaceutical distribution system as social infrastructure.

Number of Group employees

12,923

With diverse talent involved in the fields of medicine and health working together as One Team, we are taking on the challenge to create new value.

Specialty drug contract distribution business

50

Product share

% or more

We boast an industry-leading track record in handling specialty drugs that require stringent temperature, inventory, and security controls, contributing to enhanced quality in pharmaceutical distribution and lower social costs.

Number of facilities with Cubixx installed

522facilities

Our Cubixx solution, which provides traceability for specialty drugs, is in use at approximately half of Japan's designated cancer hospitals and around 70% of national university hospitals.

Number of registrations on the COLLABO Portal

300,000

Approx.

user accounts

COLLABO Portal, a comprehensive medical digital transformation (DX) platform, provides medical and nursing care professionals with seamless, one-stop access to digital services and medical information.

Note: Figures are for FY2024.