Alfresa : Prospects for Further Value Creation

The Alfresa Group's Value Creation

Prospects for Further Value Creation

Building upon our strengths in the Ethical Pharmaceuticals Wholesaling Business, which include strong relationships with our trading partners, a highly functional logistics infrastructure, and abundant human capital, we will focus on enhancing the businesses the Group was founded on, fostering growth businesses, and developing new businesses as sources of value creation. Through digitization, digitalization, and digital transformation, we aim to leverage the functionality of our pharmaceutical supply chain, built across the entire Group, to strengthen and expand our total supply chain services. We are committed to creating social value by contributing to patients, medical practitioners, medical institu- tions, local communities, and domestic and international companies.

Medical Practitioners, Medical Institutions, Local Communities

Contributing to Community Healthcare

Sources of Value Creation

Strong Relationships of Trust with Suppliers

Our strong relationships of trust with pharmaceutical companies and other suppliers enable us to deliver a wide range of products and services to our customers nationwide, including medical institutions and dispensing pharmacies. In the ethical pharmaceuticals wholesaling industry, we have earned the leading share of the Japanese market.

• To ensure that we remain the company of choice for busi- ness partners and customers, we will continue to improve our logistics infrastructure and leverage our abundant human capital. Furthermore, we will strive to help resolve the challenges our business partners and customers face.

Highly Functional Logistics Infrastructure

As part of the social infrastructure that distributes lifesaving pharmaceuticals, we have logistics bases located close to medical institutions. We maintain substantial levels of inventory and ensure appropriate temperature control, doing our utmost to provide pharmaceuticals reliably, safely, and sincerely to medical institutions and patients.

• We will continue expanding our capabilities to accommo- date new modalities and adapt to the need for small-lot,high-mix pharmaceuticals as the field of personalized medi- cine expands.

Abundant Human Capital

In the Ethical Pharmaceuticals Wholesaling Business, we have around 2,800 marketing specialists, who work with some 2,000 sales assistants to sustain a steady supply of pharmaceuticals. They also provide new value that contributes to medical institutions, as well as the pharmaceutical companies that are our suppliers.

• We will leverage digital technology to help streamline busy medical environments by reducing physicians' workloads and enhancing operational efficiency. We will also connect medical and care professionals with individuals through the activities of marketing specialists qualified as medical management specialists. In addition, we will provide information to physi- cians via pharmaceutical companies' MRs* and create oppor- tunities for communication among medical practitioners, allowing them to focus even more on patient care.

• MRs (medical representatives): Salespeople at pharmaceutical manufac- turers who provide information about drugs to doctors and pharmacists, as well as gather and communicate information

Enhance and

Expand Total Supply

Chain Services

Strengthen Core Businesses

• Ethical	• Manufacturing
Pharmaceuticals	Business
Wholesaling Business	• Dispensing pharmacy
• Self-Medication	business
Products Wholesaling
Business

Cultivate Growth Businesses

• Medical goods	• Newly developed
• Self-prevention	pharmaceuticals
products	• Post-marketing sur-
• New channels	veillance, etc.

• Consigned manufac- turing of pharmaceuticals

Develop New Businesses

• Regenerative medi-	• Treatment-adjacent
cine supply chain	business
• Health technology,	• Dispensing center
data-driven business	business, etc.

Furthering Digital Transformation (DX)

We will combine the in-person sales function of the Ethical Pharmaceuticals Wholesaling Business with digital tools to promote workstyle reforms for medical practitioners and enhance the operational efficiency of medical institutions. We will promote activities that connect these parties by utilizing digital tools and contributing to initiatives such as the Community-Based Integrated Care System.

Patients

Extending Healthy Life Expectancies

We aim to improve access to pharmaceuticals by providing the necessary products and services to patients at the right time and in the appropriate manner, thereby contributing to their treatment, health, disease prevention, and overall quality

of life. Our goal is to extend healthy life expectancies.

Domestic and

Overseas Companies

Contributing through Innovations in Healthcare

By providing manufacturing, distribution, and new services to R&D-oriented companies in Japan and overseas, we will create an environment in which pharmaceutical companies can focus their resources on drug discovery. For patients, this will lead to new treatment options.

Our Aspiration

By leveraging Group synergies in our manufacturing functions, wholesale and distribution functions, family pharmacy functions, and information management functions in the health and medical fields, we aim to accompany people along their life journey and become a "Healthcare Consortium that provides products and services in every health-related field."

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Alfresa Group Integrated Report 2023

Alfresa Group Integrated Report 2023

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