NIHON CHOUZAI
Corporate Report 2020
Corporate Philosophy
Achieving True Separation of Drug Prescribing and Dispensing Services
The separation of drug prescribing and dispensing services sought by Nihon Chouzai is not merely a separation wherein drugs prescribed in the hospital and dispensed in the pharmacy outside of the hospital are given to the patient.
Nihon Chouzai pursues the goal of "true separation of drug prescribing and dispensing services," which aims for doctors and pharmacists performing their functional roles from an independent position to ensure medical safety, provide high quality medical services for patients, and work to control the increase in medical expenses, including the reduction of financial burden on patients.
Contents
- Corporate Philosophy
- Growth Trajectory
- Business Portfolio
- Value Creation Model
- Strategy for Achieving Growth
1 Growth towards achieving true separation of drug prescribing and dispensing services
13 Message from the President
- The Year in Brief Nihon Chouzai Group
- Financial Highlights
2 Business Performance
23 Dispensing Pharmacy Business
33 Information Provision and Consulting Business
35 Pharmaceutical Manufacturing and Sales Business
43 Medical Professional Staffing and Placement Business
3 Base that supports Nihon Chouzai
49 Human
Environment (See page 42 for examples of environmental initiatives)
59 Social
61 Governance
4 Data section
- Main Prescription Dispensing Fee Revisions
- Explanation of Terminology
77 10-Year Summary of Financial and Non-financial Data
- Report of Business Results and Financial Analysis
- Risks of Businesses
- Company Profile
- History
- Stock Information
- Reference Pages for Major Contents
The Nihon Chouzai Group
Since Nihon Chouzai was founded in 1980, we have pursued the ideal functions and roles of a dispensing pharmacy that supports medical care in Japan, and has actively contributed to the development of society and medical care, as a pioneer in the dispensing pharmacy industry. With the Dispensing Pharmacy Business as our core business,
we create new businesses by capturing the contemporary needs of society and boldly taking on challenges in the medical peripheral businesses. Currently, we are engaged in four businesses. In addition to the Dispensing Pharmacy Business, there are Pharmaceutical Manufacturing and Sales Business, Medical Professional Staffing and Placement Business, and Information Provision and Consulting Business.
We will continue to boldly venture on peripheral businesses that contribute to "achieving true separation of drug prescribing and dispensing services," and build a multilayered business structure by creating new businesses, while also deepening the business model in which each of our businesses demonstrate synergies between each other.
Determining Degree of Importance
Corporate Report 2020 presents topics with a high degree of importance to the Nihon Chouzai Group and to society. This document is published on an annual basis as reference material for readers to gain an understanding of the Company's business status and its corporate policies. This year, Nihon Chouzai discusses two important themes on which the Company is focused: further growth as a comprehensive healthcare company and growth achieved by seeing the significant changes involved in industry reorganization as a positive opportunity.
Editorial Policy
In addition to the management policy and business strategy of the Nihon Chouzai Group, this report covers both financial and nonfinancial information in detail so that all stakeholders, and first and foremost, shareholders and investors, will have an understanding of the Company's medium- to long- term creation of corporate value. The period covered in this report is fiscal 2019 (April 1, 2019 to March 31, 2020). However, as necessary, the contents may also cover some aspects of fiscal 2020.
Notes Concerning Forward-Looking Statements
The Corporate Report 2020 includes forward-looking statements with regard to the Nihon Chouzai Group's plans, strategies, business performance and other information. These statements are based on judgements made by the Company's management, and these are gained from currently available information. Actual business performance and other information may be impacted by various risks and uncertainties and may differ significantly from these projections. Your understanding is therefore requested. Factors that may have an impact on business performance and future outlook include, but are not limited to, the economic situation in which the Company's business domains operate, the reform status of relevant laws and regulations, conditions with regard to revisions of medical service fees, and the progress of product development.
About the Cover
Since its founding, Nihon Chouzai has endeavored to contribute to the reform of Japan's social security system. With the advent of a "super- aged" society, now is a time of major changes with various measures to curb the increase in social security expenses and address other issues that are emerging. Seeing these changes as opportunities to create synergy between our Dispensing Pharmacy Business and other businesses, the cover of Corporate Report
2020 expresses the image of immense growth as a comprehensive healthcare company with a focus on the people who work in each company and each department.
1 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 2 |
Growth Trajectory
governmentand policies | 1974 | 1999 | 2005 | 2007 | 2013 | 2014 | 2015 | TrajectoryGrowth | ||||||||
(The first year of separation | pharmacies became | without having manufacturing facilities | 2008 | announced by the | Based on new standard | A Vision of Pharmacies for Patients announced by the | ||||||||||
With the revision of the | Revision of Worker | Pharmaceutical Affairs Act (the present | Action Program Promoting the Usage of | Roadmap for | Prescription dispensing fees | Basic Policy on Economic and Fiscal Management and | ||||||||||
medical service fee, the | Dispatching Act | Pharmaceuticals and Medical Devices | Generic Pharmaceuticals announced by the | Promoting the further | raised significantly based | Reform 2015 announced by the Cabinet Office | ||||||||||
prescription fee was raised | Dispatching of | Act) revised | Ministry of Health, Labour and Welfare | use of Generic | on generic pharmaceutical | Target of 80% ratio of generic pharmaceutical use set | ||||||||||
from 100 yen to 500 yen | Pharmaceuticals | recommendations | ||||||||||||||
pharmacists to | Entry into the manufacturing industry | for the end of September 2020 | ||||||||||||||
Legal | of the prescribing and | possible | became possible | Prescription dispensing fees established based | Ministry of Health, | volume | Ministry of Health, Labour and Welfare | |||||||||
dispensing functions) | on generic pharmaceutical recommendations | Labour and Welfare | 55-65%: 18 points; 65% | Functions required of pharmacies in the future are | ||||||||||||
Dispensing ratio 30% or more: 4 points | ||||||||||||||||
or more: 22 points | clearly defined. | |||||||||||||||
1980 | 2000 | 2004 | 2006 | 2012 | 2017 | ||||||||||||
Group | Established NIHON CHOUZAI | With amendment of the | NIHON CHOUZAI Co., Ltd. was listed on the Tokyo Stock | NIHON CHOUZAI Co., Ltd.'s | Started the Information Provision and | Formed business partnership agreement with Dai-ichi Life Insurance | |||||||||||
Co., Ltd. | Worker Dispatching Act, the | Exchange (TSE) Second Section | listing upgraded to the TSE | Consulting Business (Japan Medical | Company, Limited | ||||||||||||
Started dispensing pharmacy | Medical Professional Staffing | First Section | Research Institute Co., Ltd.) | ||||||||||||||
Chouzai | and Placement Business was | ||||||||||||||||
macy, in Sapporo, Hokkaido | 2005 | Tsukuba Plant No. 2 (Nihon | |||||||||||||||
business | started (The current Medical | 2018 | |||||||||||||||
Opened first dispensing phar- | |||||||||||||||||
Resources Co., Ltd.) | |||||||||||||||||
Nihon | 1995 | With the revision of the Pharmaceutical Affairs Act (the | 2010 | 2013 | Generic Co., Ltd.) completed | ||||||||||||
present Pharmaceuticals and Medical Devices Act), the | Started manufacturing | Choseido Pharmaceutical Co., Ltd. | as Japan's largest generic drug | ||||||||||||||
Pharmaceutical Manufacturing and Sales Business was | manufacturing plant | ||||||||||||||||
Relocated the headquarters | generic drugs | made into a group company | |||||||||||||||
started (Nihon Generic Co., Ltd.). | |||||||||||||||||
from Sapporo to Tokyo |
Our first pharmacy | One-on-one pharmacies | Medical center pharmacies |
Hospital-front pharmacies
Mentaio pharmacies | Hybrid-type pharmacies | On-site pharmacies |
Pharmacy-opening strategy
1980
After that, we opened one-on-one style pharmacies in Sapporo with one pharmacy for each individual practitioner, and we opened medical center pharmacies to attract multiple practitioners.
1986
After entering the Tokyo market, we opened pharmacies intensively in high population-growth areas
2011
Began opening mentaio (near the station and in the shopping district) pharmacies to meet prescription demands of multiple
2015 | 2017 | |||
Accelerated the opening | Started opening on-site | |||
of hybrid-type pharmacies | pharmacies |
that combine medical center
Started with one dispensing pharmacy in Sapporo, Hokkaido
near National Route 16. We began opening hospital-front pharmacies, and expanded nationwide.
medical institutions near the pharmacy, without being dependent on prescriptions from one specific medical institution.
pharmacies with mentaio (near the station and in the shopping
district) pharmacies. | * All years mentioned on this page are calendar years. |
Consolidated net sales | Started | 268.5 | |||||||||||||||||||||||
the Information | Sales | ||||||||||||||||||||||||
Provision and | exceeded | billion yen | |||||||||||||||||||||||
Consulting | |||||||||||||||||||||||||
200 | |||||||||||||||||||||||||
Started the | Business | ||||||||||||||||||||||||
Pharmaceutical | Choseido | billion yen | |||||||||||||||||||||||
Started | Manufacturing | Pharmaceutical | |||||||||||||||||||||||
Started | and Sales | made into a group | |||||||||||||||||||||||
the Medical | Sales | ||||||||||||||||||||||||
Business | company | ||||||||||||||||||||||||
the Dispensing | Professional | ||||||||||||||||||||||||
exceeded | |||||||||||||||||||||||||
Pharmacy | Staffing and | ||||||||||||||||||||||||
100 | |||||||||||||||||||||||||
Business | Placement | ||||||||||||||||||||||||
Business | Sales | billion yen | |||||||||||||||||||||||
exceeded | |||||||||||||||||||||||||
50 | |||||||||||||||||||||||||
billion yen | |||||||||||||||||||||||||
1980 | 1996 | 1997 | 1998 | 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | (FY) |
3 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 4 |
Business Portfolio
Dispensing Pharmacy
Business
80.5%
Dispensing Pharmacy Business
75.6%
A numerical view of the Nihon Chouzai Group
Portfolio Business
Sales |
composition |
ratio |
Pharmaceutical
Manufacturing and
Sales Business
15.0%
Medical Professional
Staffing and
Placement Business
4.5%
Operating |
profit |
composition |
ratio |
Pharmaceutical
Manufacturing and
Sales Business
10.1%
Medical Professional
Staffing and
Placement Business
14.3%
Consolidated net sales
268.5 billion yen
FY2019
14 consecutive terms of growth since being
listed on the stock market
Number of employees
(consolidated basis)
5,715
FY2019 (Number of employees and average number of employees)
A group of skilled professionals
centered on pharmacists
Annual number of
prescriptions
14,700,000
FY2019
Supports a wide range of prescriptions from advanced medical care to at-home medical care
* Percentages are rounded to the nearest unit.
Prescription unit price
15,479 yen
Average price for FY2019
Opening pharmacies
in front of university hospital
45.6%
As of October 1, 2018
Pharmacies that provide
at-home medical care
94.1%
As of March 31, 2020 (At least once a year)
Dispensing Pharmacy Business
A leading dispensing pharmacy company
Net sales per pharmacy
No.1
(millions of yen) | Net sales per pharmacy | |||||
400 | 367 | 349 | 359 | 352 | 370 | |
300 | ||||||
200 | ||||||
100 | ||||||
0 | ||||||
2015 | 2016 | 2017 | 2018 | 2019 | (FY) |
Pharmaceutical Manufacturing
and Sales Business
Manufacturer of a full line
of generic drugs
Unrivaled business model
Only one
(billions of yen) External sales Internal sales
50
Sales strategy review
40 | Price competition | 24.2 | 24.8 | ||||
30 | 24.1 24.6 | ||||||
20.3 | |||||||
15.4 18.3 | |||||||
20 | 16.4 18.1 | ||||||
10 | 12.2 12.6 13.3 | ||||||
7.7 | 9.2 | ||||||
0 | |||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 (FY) |
Medical Professional Staffing and
Placement Business
Human resource services company that specializes in the medical field
Dispatching of pharmacists
No.1
High growth potential
High profitability
High reliability
Track record of handling highly specialized
pharmaceuticals
Share of generic drug use
88.8%
As of March 31, 2020 (volume based)
No. 1 in promoting use of
generic drugs
Supporting advanced medical care and
accumulating know-how
Number of generic drugs sold
681products
As of March 31, 2020
Handling a number of products comparable to
major generic manufacturers
Proactive initiatives toward
at-home medical care
Number of Job offers in the Medical
Professional Staffing and Placement Business
Approx. 61,000
As of March 31, 2020 (total number of people)
Developing a staffing and placement business
specialized in medical professionals
In the Dispensing Pharmacy Business, we have focused on opening Nihon Chouzai pharmacies, while flexibly conducting M&A according to strict standards. This has allowed us to open pharmacies that are not easily affected by revisions. In addition, by maintaining annual net sales per pharmacy at around 350 million yen, we are scaling up and adding functions to our pharmacies, in order to build a structure and constitution that can survive the industry reorganization.
In the Pharmaceutical Manufacturing and Sales Business, we are deepening our unrivaled business model, in which the expansion of the Dispensing Pharmacy Business leads to the expansion of this business. In addition, we have recently stepped up efforts to expand external sales.
In the Medical Professional Staffing and Placement Business, we are achieving value-added staffing and placement not offered by other companies by taking advantage of the high-qual-
ity education system created by the Dispensing Pharmacy Business. We are also working to expand the business by increasing the number of service lines beyond pharmacists.
Market environment
Dispensing pharmacy | Generic drug market size | Number of pharmacists | ||
market size | nationwide | |||
Approx. 1 | ||||
Approx. 7.4 | Approx. 310,000 | |||
trillion yen | trillion yen | pharmacists | ||
FY2018 | FY2017 | FY2018 | ||
Source: Fuji Keizai Co., Ltd. | ||||
Survey results of the domestic generic drug market |
5 NIHON CHOUZAI CORPORATE REPORT 2020
NIHON CHOUZAI CORPORATE REPORT 2020 6 |
Value Creation Model
The business of the Nihon Chouzai Group helps solve social issues facing Japan, and our business is directly linked to the creation of social value. We will help to solve social issues by making the most of our management resources and raising our corporate value.
Economic value
Control of the increasing costs of medical care
Realizing medical care at a reasonable cost
An achievable society
Social value
Realizing high-quality medical care
Spreading medical care for pre- symptomatic diseases and disease prevention
SDGs
Resilient system for providing pharmaceuticals
Job creation, active participation of women
Ensuring healthy lifestyles | The Nihon Chouzai Group supports the Sustainable Development Goals (SDGs). | ||
and promoting welfare | |||
Model Creation Value
Social issues | Input (management capital) | Business activities | ||||
Financial capital | Business model | |||||
Capital investment | ||||||
12.0 billion yen | Pharmaceutical | |||||
Climate change risk | Manufacturing | |||||
and Sales | ||||||
Maintenance of medical infrastructure | Business | |||||
in case of disaster | Human capital | Social demand | ||||
Investment in | Family pharmacists and | Expand | ||||
business | ||||||
human resources | pharmacies | operations | ||||
5,715people | Regional-cooperation/ | |||||
Specialized medical | ||||||
institutions cooperation | Corporate Philosophy | |||||
Manufacturing | Expand | Achieving True Separation | Raise | |||
Super-aging society | capital | internal | corporate | |||
sales | of Drug Prescribing and | |||||
Increased medical expenses | 5plants | value | ||||
Industry trends | Dispensing Services | |||||
research | ||||||
2institutes | Dispensing pharmacy | |||||
restructuring | ||||||
Intellectual capital | Generic drug | Medical | ||||
manufacturer | Dispensing | |||||
restructuring | Professional | |||||
R&D expenses | Pharmacy | Staffing and | ||||
Work style reform at | 2.9 billion yen | Business | Placement | |||
medical institutions | Business | |||||
ESG: Corporate governance | ||||||
Social and | Cooperation | Expand market | ||||
related capital | Expand | share of | ||||
with medical | pharmacist | |||||
Customer confidence | institutions | business scope | business | |||
Strength of the | to include | |||||
doctors and | ||||||
Acquisition of | Nihon Chouzai | |||||
nurses | ||||||
Unused drug issue | brand | |||||
certification | ||||||
Polypharmacy |
Output (value provided)
For Patients/Consumers
Providing higher quality medical care
Support for pre-symptomatic diseases and disease prevention care
Reduction of the medical expense burden
For Local Communities
Providing sustainable healthcare
Integrated cooperation of various occupational disciplines in the community
Providing a steady supply of pharmaceuticals Clean manufacturing facilities
For Medical Institutions
Cooperation with medical institutions
Follow-up after medication instruction Rationalization of dispensing work
For Employees
Recruiting diverse human resources
Providing diverse playing fields
Investment in human resource education
Priority issues in the SDGs
(1) Aging population and | |
increasing medical | |
expenses | |
Providing | Promoting |
sustainable | manufacturing |
medical care and | and use of |
reducing medical | generic drugs |
expense burden | |
(2) Improving medical | |
infrastructure | |
Improving pharmaceuticals supply | |
system in case of disaster | |
Providing stable supply of | |
pharmaceuticals | |
(3) Global warming and | |
climate change | |
Adopting energy-saving equipment | |
from the construction phase | |
Introducing new energy-saving | |
equipment | |
(4) Cooperation with | |
medical institutions | |
Increasing importance of medical | |
collaboration | |
Support for increased outpatient | |
treatment | |
(5) Advancement of women | |
and work style reform | |
Promoting diversity and intra-personal | |
diversity | |
Investing in professional human | |
resource development |
7 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 8 |
Strategy for Achieving Growth
Long-Term Vision -- On the Road to 2030
The Nihon Chouzai Group's Long-Term Vision (announced in April 2018) shows the Group's vision for the future after having successfully emerged from a reorganization in the industry by using the major
Group Synergy
Achieving for Strategy
changes in the external environment in the medical and pharmaceutical industries as opportunities. We will achieve a dramatic expansion of our Dispensing Pharmacy Business through pharmacy-opening strategies and ICT strategies, then use this as a starting point to expand our Pharmaceutical Manufacturing and Sales Business and Medical Professional Staffing and Placement Business, thereby achieving sustainable growth as a comprehensive healthcare company.
View of corporate growth
Dispensing Pharmacy Business
Pharmaceutical Manufacturing and
Sales Business
The expansion of the operations of the Dispensing Pharmacy Business is linked to the expansion of the Pharmaceutical Manufacturing and Sales Business and this has become an unrivaled business model.
Dispensing Pharmacy Business
Medical Professional Staffing and
Placement Businesss
By developing the Dispensing Pharmacy Business, we are able to quickly grasp the human resource needs of medical professionals. This business model allows us to quickly expand into new fields.
Growth
Anticipated external environment
Strategy for rapid expansion
Measures to control increasing
medical expenses
Promotion of generic drug use
NHI drug price revisions
Measures for
high-quality medical services
Realization of a vision of pharmacies for patients
Differentiating functions of pharmacies due to the revised Pharmaceuticals and Medical Devices Act
Revisions to prescription dispensing fees
Social issues
Super-aging society | Decreasing population | |
Balanced pharmacy | ||||
Expand | ||||
strategy | operations | |||
Opening Nihon Chouzai pharmacies | of Pharmaceutical | |||
and M&A | Manufacturing and | |||
Hospital-front pharmacies and | Synergy | Sales Business | ||
hybrid-type pharmacies | ||||
(Improve | ||||
Pharmacy-opening areas | Increase internal | |||
Differentiating functions of existing | profitability) | |||
pharmacies | sales | |||
a Becoming Toward
Growth of Japan's elderly | Creation of patient-oriented | |
population | pharmacies | |
Major changes | ||
Improving the expertise of our | ||
Medical advancement | in external | |
pharmacy operations | ||
environment | ||
Functional differentiation | Management efficiency | |
of pharmacies | ||
Industry restructuring
Pharmacies that cannot make the grade will be eliminated
Pharmacy- | Core | Business | |||||||||
opening | Expand | ||||||||||
Dramatically expand | |||||||||||
strategy | market | ||||||||||
share | the Dispensing | ||||||||||
ICT strategy | |||||||||||
Pharmacy Business | |||||||||||
Comprehensive
Introduction of ICT to
medical care
Spreading electronic medication notebooks
Starting remote medication guidance
Centralizing medical care-related information
Examining electronic prescription formats
Long-term
ICT investment
In-house systems development from the time of our founding
Sophisticated dispensing system platform
Collaboration between various systems such as electronic medication notebooks and our own platform
Synergy
Closer cooperation | Expand the |
fields with which the | |
with medical | |
institutions | Medical Professional |
Staffing and Placement | |
Business is engaged | |
(Improve | |
profitability) |
Company Healthcare
9 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 10 |
An image of growth leading to 2030
Business scale
[Group sales] | [Market share] | |
Become a one trillion yen company | Dispensing | Pharmaceutical |
Pharmacy Business | Manufacturing and | |
Sales Business | ||
10% | ||
15% |
We set forth our vision of Group sales amounting to one trillion yen as the scale of our business in 2030. To achieve this, we are looking for a 10% share in the dispensing pharmacy industry and a 15% share in the generic drug industry.
Profitable portfolio
1 Growth
towards achieving true separation of drug prescribing and dispensing services
13 Message from the President
- The Year in Brief Nihon Chouzai Group
- Financial Highlights
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
[Composition of operating profit]
FY2004FY2017
Pharmaceutical Manufacturing and Sales Business and Medical
Professional Staffing and Placement Business
Dispensing Pharmacy Business | 19% | |
3% | ||
Operating profit | Operating profit | |
2.9 billion yen | 10.5 billion yen |
FY2030
49%
We constantly strive to heighten overall operating profit, and to be a company with Group sales of one trillion yen, we aim for an operating profit composition ratio where operating profit accounted for by businesses other than the Dispensing Pharmacy Business is raised to 49% of the total. It is our intention to hike the ratio of operating profit attributable to businesses excluding the Dispensing Pharmacy Business so as to ease fluctuations in financial performance due to drug price and dispensing fee revisions.
Chouzai Nihon supports that Base
View of business environment changes and corporate growth by 2030
FY2004 (results) | FY2017 (results) | FY2030 (forecast) | ||
Net sales | 51.8 billion yen | 205.2 billion yen | 900.0 billion yen | |
Dispensing Pharmacy | Per-pharmacy annual sales | 294 million yen | 359 million yen | 700 million yen |
Business | Number of pharmacies | 174 pharmacies | 585 pharmacies | 1,000 pharmacies |
Share of Nihon Chouzai | - | 83.6% | 90-100% | |
generic drug use | ||||
Pharmaceutical | Net sales | -*1 | 38.1 billion yen | 300.0 billion yen |
Manufacturing and | - | 6.2 billion tablets | 15.3 billion tablets | |
Sales Business | Maximum production capacity | |||
Medical Professional | 0.7 billion yen | 12.0 billion yen | 25.0 billion yen | |
Staffing and Place- | Net sales | |||
ment Business | ||||
Separation ratio*2 | 53.8% | 73.2% | 90-100%*5 | |
External environment | (outside of hospital prescription ratio) | |||
Share of generic drug use, | ||||
4.6%*3 | 72.5%*4 | 85-95%*5 | ||
volume-based |
*1: The Nihon Chouzai Pharmaceutical Manufacturing and Sales Business launched in fiscal 2005.
*2: Prepared by Nihon Chouzai based on progress of separation of drug prescribing and dispensing (trend of health insurance dispensing) according to the Japan Pharmaceutical Association.
*3: Share of generic drug use, volume-based as of end of FY2005 (previous standard). FY2005 data posted because FY2004 data was not publicly disclosed.
*4: Share of generic drug use, volume-based as of end of February 2018.
*5: Nihon Chouzai estimates
section Data
11 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 12 |
Message from the President
Message from the President
We will work more actively to dig deeper into medical care, and provide a new standard for Japanese medical care in the coming era. We will "Be Active" in all our endeavors!
QLooking back on your first year since assuming position as top executive of the Nihon Chouzai Group, could you tell us what you have emphasized in your efforts?
I have worked to share my policy, "Be Active!" at every opportunity for dialogue and discussion with employees.
drug of separation true achieving towards Growth services dispensing and prescribing
Business
In the first three months since I took office as Pres- ident, I decided to proceed with initiatives that would have relatively immediate effects. One of these initiatives was drastic cost reduction, which I always thought could be done at a level that would not hinder our current business operations. We had already been running a cost reduction project since April 2019, but there were some matters that should be determined by the President, and others that had a major impact on our financial results; therefore, I gave priority to making decisions on those matters with speed. As a result, we posted a gain on sales of non-current assets of approximately 6.7 billion yen under extraordinary income mainly due to the sale of various assets in the fiscal year under review (fiscal 2019).
Taking into consideration the fact that this is my first year since assuming my current position as top executive of the Nihon Chouzai Group, another matter I have focused on is communication with our employees and part-time staff, who number approximately 6,000 nationwide.
Looking at the environment surrounding the Group, in a lot of ways, including the recent COVID-19 crisis, it is safe to say that social conditions and medical needs are going to change even further and in more drastic ways. Yet, I feel that the government and political administration are not keeping pace with these changes. As such, for the past year I have taken every opportunity for dialogue and discussion with employees and have shared the company value "Be Active!" with them, as my major policy going forward.
So long as we are involved in the medical and pharmaceutical business, we will always need to respond to systemic changes. However, if the perspective and activities of management are focused only on those responses, we will not be able to meet the medical needs that society requires in the first place. Moving forward, each and every employee and staff member of the Nihon Chouzai Group must "Be Active!" We will commit ourselves to our stakehold- ers, devising and implementing both big solutions and small feats of ingenuity alike, so that we can be an organization always needed by the world.
performance
Chouzai Nihon supports that Base
Yosuke Mitsuhara President & CEO
QWhat do you think about the future direction of the business under the major policy, "Be Active!"?
We will dig deeper into medical care, step further into the medical worksite, and work more actively to solve medical issues.
section Data
The Nihon Chouzai Group aims to grow as a comprehensive healthcare company centered on the Dispensing Pharmacy Business. As shown on page 6 of this report in the section "A numerical view of the Nihon Chouzai Group," although we are steadily growing as a comprehensive healthcare company, I think we are only halfway there in terms of building essential abilities.
Based on this idea, we will continue to dig deeper into medical care, so that Nihon Chouzai can become a brand widely needed and selected by stakeholders, which I committed to earlier. In other words, it means we will step further into the medical worksite and work more actively to solve medical issues, thereby establishing our future market position.
13 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 14 |
Message from the President
One related initiative is training for pharmacists who can offer cancer treatment. Outpatient treatment is quickly becoming the norm for cancer patients, and there is a need for pharmacy-based pharmacists with advanced skills and expertise so that pharmaceutical treatment can be continued safely outside of a hospital. One indicator of a pharmacist with that expertise is the "Accredited Pharmacist of Ambulatory Cancer Chemotherapy" established by the Japanese Society of Pharmaceutical Oncology (JASPO). Nihon Chouzai promotes acquisition of
four certified pharmacy-based pharmacists belong to the Nihon Chouzai Group.
Currently, the Japanese government's medical policy emphasizes communication between pharmacists and doctors or other professionals in the medical worksite, and the government has made policy evaluation accordingly. Creating a corporate culture in which pharmacists devote themselves to ongoing studies to improve their expertise will aid us in building a brand that is selected by stakeholders. Nihon Chouzai will continue to contribute to regional medi-
environment, we have received a certain degree of praise from doctors and other medical professionals, but I am aware that the Nihon Chouzai brand has not yet really established itself in the minds of patients and customers.
I recognize this as a major issue for us, and we have expanded the number of Nihon Chouzai stores not dependent on the location of a hospital, particularly in the metropolitan area, so that we can be closer to patients and general consumers. In July
2019, we renewed the Nihon Chouzai Online Store for healthcare products, and both access numbers and sales on the site are growing. I believe that we cannot survive and will have no value if we do not build our brand as a dispensing pharmacy that digs deeper into medical care, and work for at least ten years to raise awareness of the brand. Going forward, we will continue to take measures to connect deeper with our patients and customers.
drug of separation true achieving towards Growth services dispensing and prescribing
the "Accredited Pharmacist of Ambulatory Cancer Chemotherapy" by JASPO, and as of April 30, 2020, a total of 21 of our pharmacists have acquired this certification. This is the highest number in the dispensing pharmacy industry, and approximately one in
cal care by creating an environment in which pharmacists with advanced expertise can fully demonstrate their abilities.
QThe Nihon Chouzai Group has always been an industry leader in the pursuit of its
ICT strategy. How do you analyze the success factors of this ICT strategy?
Our electronic medication notebook, which was developed in-house, has had a great effect as an important terminal.
performance Business
QSince you assumed office, you have actively proclaimed that "we will make our pharmacies selected because of the Nihon Chouzai Group brand." Could you tell us the background behind this idea?
In the midst of fierce competition with drug stores, raising awareness of the Nihon Chouzai brand is a major issue for us.
One environmental change to keep in mind while the | in serious cases, it is true that many patients and cus- |
Group continues to grow as a comprehensive health- | tomers basically choose a pharmacy without strong |
care company is a fierce competition with drug stores | preference, and we live in an era where the value of |
that also have dispensing pharmacy functions. Except | each pharmacy's existence is in question. In such an |
Since April 2020, guidance on the use of drugs by telephone and information and communication devices has been temporarily permitted as a measure to prevent the spread of COVID-19. From September 2020, target areas and patients will be expanded, and online guidance on the use of drugs will begin.
Our electronic medication notebook, Okusuri Techo Plus, is an important terminal for widely providing high-quality medical service to patients through a series of remote guidance on the use of drugs. We are the only company in the dispensing pharmacy
industry that has developed an electronic medication notebook in-house, which allows us to make updates flexibly, leading to expansion of our daily contact with patients.
Five years have passed since the release of Okusuri Techo Plus, with over 500,000 registered members. Looking ahead, we will strive to further promote our ICT strategy by leveraging not only our technological base but our tremendous, competition-beating customer base of over 500,000 members.
Chouzai Nihon supports that Base
QCould you tell us your thoughts about how you will incorporate contributions to achieving the SDGs into future strategies?
I think that digging deeper into our core business and
realizing sustainable growth will contribute to achieving the SDGs.
The third goal of the 17 SDGs is "3. Good health and well-being: Ensure healthy lives and promote well-being for all at all ages." I believe that promotion of our core business and realization of sustainable growth will contribute to the achievement of the SDGs.
I would like to reiterate to all of our stakeholders that, we do not either simply alternate between delight and despair over quarterly profits and stock price trends as a publicly listed company and neglect long-term investment necessary for medical care. To put it in my own words, medical care is not the kind of job that can make a profit quickly on a quarterly basis. Furthermore, as you can see from the recent COVID-19 crisis, even when various societal activities
such as production, consumption, and education all come to a stop, medical care is a critical activity that can never stop regardless of the circumstances to support society. Therefore, in response to requests from the Japanese government, we have not closed any pharmacies during the COVID-19 crisis.
As such, we believe that deeply pursuing the very core of medical care is the most effective contribution to the SDGs. Furthermore, we think that digging deeper into medical care and steadily making investments from a long-term perspective in periods of five to ten years will lead us to meeting stakeholder expectations by returning value and profits in various forms.
section Data
15 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 16 |
Message from the President
QI would like to ask about your long-term vision for 2030.
How do you plan to raise the top line of growth,
in order to become a company with Group sales of one trillion yen?
We aim to achieve 2030 Group sales of one trillion yen,
without ignoring any possibilities such as new business development.
drug of separation true achieving towards Growth services dispensing and prescribing
As shown in the section, "Strategy for Achieving Growth," on pages 9 to 11 of this Corporate Report, the Group has a long-term vision for 2030. In this ini- tiative, our Dispensing Pharmacy Business and Pharmaceutical Manufacturing and Sales Business will act as the main drivers for accumulating net sales, aimed at reaching Group sales of one trillion yen in 2030, which is about four times our consolidated net sales of 268.5 billion yen in the fiscal year under review.
In the Dispensing Pharmacy Business, our market share is currently about 3% of a 7.4 trillion yen mar- ket. We believe that we will be able to cover more than half of our one trillion yen goal in the Dispensing Pharmacy Business by expanding our businesses in the future through M&A and development of new business formats. In terms of M&A, we believe that there will gradually be more rehabilitation projects,
backed by Nihon Chouzai's financial strength, rehabilitation and store management know-how. In the Pharmaceutical Manufacturing and Sales Business, capital investment has already peaked out, so we must focus on how to operate our factories and increase net sales over the first three years in our ten year plan.
What I can say about both the Dispensing Pharmacy Business and Pharmaceutical Manufacturing and Sales Business is that we will not ignore any possibilities for future business expansion. We plan to actively consider all options according to the situation for the next ten years, including large-scale horizontal M&A of other companies in our industry, and development and manufacture of generic drugs aside from pills, to name just a few.
performance Business
supports that Base
QAs top executive of the Nihon Chouzai Group,
which continues to grow as a comprehensive healthcare company,
could you give us your opinion of the current state of medical care in Japan?
There are many more things Nihon Chouzai can do as an organization centered on pharmacists. That is why I say "Be Active!"
QWhat message do you have for stakeholders?
For example, what is your future vision for management?
"Be Active!" in protecting the health of communities and medical care in Japan.
Chouzai Nihon
While it has long been said that there is a shortage of doctors, pharmacists, nurses, and caregivers, our super-aged society continues to advance relentlessly, and the number of patients has been increasing. In contrast to that, the number of medical professionals has not increased, and they are getting older. As a re- sult, the number of patients per medical professional in the working-age population is steadily increasing. This problem has become even more pronounced amidst the ongoing COVID-19 crisis. As such, doctors and pharmacists share the common issue of how a small number of medical professionals can deal with the constantly growing number of patients. In these circumstances, there are many more things Nihon Chouzai can do as an organization centered on phar- macists. That is why I say "Be Active!"
With the spread of COVID-19 still not contained, it is difficult to predict future changes in patient trends. However, I assume from the growing usage rate for the prescription sending function of Oku- suri Techo Plus that many patients want to spend less time in stores. At the same time, the spread of COVID-19 may have led many patients and consumers to understand the importance of self-medication,pre-symptomatic disease prevention, as well as the convenience of receiving medical services online. There are still some points to be improved regarding guidance on the use of drugs with telephone and information and communication devices as well as delivery of medicine, which has become possible at present thanks to temporary special measures. On the other hand, we have received many appreciative comments from patients, and we will focus on how the government will make decisions in the future.
The business of medical care should be undertaken from a long-term perspective. Based on this point of view, the Group is making investments in a way that it can grow over the long term. We also bear in mind our steady growth so as to be a reliable investee com- pany. As I mentioned before, medical care does not make a profit quickly, but it does in fact grow steadily. For proof of this, you need look no further than the history of the Group's growth up to the present day, based on our honest efforts made for the core business of medical care since its founding, under our corporate philosophy of "achieving true separation of drug prescribing and dispensing services."
We were able to celebrate the 40th anniversary of our founding in March 2020. I would like to thank all the stakeholders of the Nihon Chouzai Group, and ask for your continued understanding and support in the future. We at the Nihon Chouzai Group will "Be Active!" in digging deeper into our main business of medical care, continue to boldly undertake the challenge of creating the standard for Japanese medical care in the future without focusing only on responses to systemic changes, and work to support the health of communities and medical care in Japan throughout the entire Group.
section Data
17 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 18 |
The Year in Brief Nihon Chouzai Group
Health support pharmacies * List of pharmacies that meet the criteria setby the Ministry of Health, Labour and Welfare each month
April 2019 | June 2019 | July 2019 |
Matsue Pharmacy | Kokubunji Pharmacy, Tsuruyacho Pharmacy | Miyazakidai Pharmacy, Ugo Pharmacy |
2019
April | May | June | July | August | September |
October 2019 | December 2019 | January 2020 | February 2020 |
Heisei Pharmacy | Shinmachida Pharmacy, Urayasu Pharmacy | Mitakadai Pharmacy, Ginza Taimei Pharmacy | Kimachidori Pharmacy, Tateishi Ekimae Pharmacy |
2020
October | November | December | January | February | March |
drug of separation true achieving towards Growth services dispensing and prescribing
April 2019 | May 2019 |
Established of the | Launched Nihon |
Formulary Busi- | Chouzai's first PB |
ness Promotion | product, Nihon |
Department | Chouzai's Aojiru |
Launched with the | |
objective of pursuing | |
and spreading a | |
"true formulary" |
May 2019
Sponsored World No Tobacco Day on May 31
Health Support Pharmacy
June 2019
Entrusted with "Support project for data creation and case creation in regional formulary proposals" by the Shizuoka Branch of the Japan Health Insurance Association
July 2019
Opened the Nihon Chouzai Online Store, a healthcare online shopping site that utilizes the expertise of dispensing pharmacies
September 2019
August 2019
Selected as a constituent of the JPX-Nikkei Mid and Small Cap Index (continued)
August 2019
Published "Formulary
Management"
(Yakuji Nippo, Limited)
Our Formulary Business Promotion Department provided full cooperation in writing the second part of a series covering everything from basics to practice of formulary
September 2019
Obtained a demonstration license for remote medication guidance (Seto Pharmacy) in two areas within a National Strategic Special Zone (Aichi Prefecture)
October 2019
Exhibited at X HEALTH EXPO 2019 (at Tokyo Big Sight) sponsored by Nikkei Business Publications, Inc.
October 2019
Won the Excellent Paper
Award at the Japanese
Telemedicine and Telecare
Association (JTTA) Annual
Academic Conference
Presented case studies at Seto Pharmacy and future challenges, with the theme of "Remote
November 2019
Sponsored World Diabetes Day on November 14
December 2019
Conducted remote medication instruction in a National Strategic Special Zone (Chiba City) in an urban area (Tsubakimori Pharmacy) for the first time nationwide
This is the third case in Nihon Chouzai, following the cases in Aichi Prefecture. Using the electronic medication notebook Okusuri Techo Plus, the patient's dispensing and other data can be shared in real time with their family
members who live far away
January 2020
Held a management policy briefing session of the Nihon Chouzai Group
President Mitsuhara explained how we will enhance the Company's three strengths of Quality, Flexibility, and Pioneering Spirit to build the Nihon Chouzai brand toward 2030.
February 2020
Concluded a comprehensive agreement on collaboration and cooperation in health promotion measure project with Yahaba Town, Shiwa County, Iwate Prefecture
As a support for local health promotion utilizing WELL BASE YAHABA, a health promotion facility operated by Yahaba Town, Nihon Chou- zai Iwate Idaimae Pharmacy is cooperating with medication and nutrition guidance, analysis of health data, and health seminars. This is Japan's first regional health promotion measure through industry-academia-government col-
performance Business
Chouzai Nihon supports that Base
Dispensing Pharmacy Business
Pharmaceutical Manufacturing and Sales Business
Medical Professional Staffing and Placement Business
Information Provision and Consulting Business
Held the fourth Nihon Chouzai Group Academic Conference & JP-CS Award 2019, Third Role-Play Awards also held
With the theme of "The Form of Pharmacies Supporting Medical Care: Pharmacies Needed by Society," case studies on initiatives such as medical collaboration and health support were presented.
medication guidance in the National Strategic Special Zone using electronic
medication note- books"
December 2019
Accepted a visit from Kyrgyz Republic
Kyrgyz Republic's Undersecretary of the Ministry of Health and executives from the largest pharmacy visited Nihon Chouzai's Mita Pharmacy.
laboration centered on health promotion facilities.
Group companies
May 2019 - February 2020
Medical Resources
Held seminars for pharmacists
Held six seminars in total (Tokyo/Osaka). Holding seminars for learning about medical knowledge and industry trends every year
June 2019
Nihon Generic, Chosei- do Pharmaceutical
Released 8 new generic drugs with 3 different active ingredients
August 2019
Nihon Generic
Tsukuba Plant Summer Vacation
Tour
Conducted a tour of our Tsukuba Plant for elementary school students and their parents as part of contribution to the local community
August 2019
Medical Resources
Opened Nurse Step, a website to provide support for nurse recruitment and career change
October 2019
Japan Medical Research Institute
Exhibited at the Asian Conference on Pharma- coepidemiology
November 2019
Medical Resourcess
Conducted a retention program
Held money seminars for working women as a benefit program for dispatched workers
November 2019
Japan Medical Research Institute
The 4th Japan Medical Research Institute Symposium
Held a symposium entitled "Created by Prescription Data: Real World Evi- dence"
December 2019 | January 2020 | ||
Nihon Generic, | Nihon Generic, | ||
Choseido Phar- | Choseido Pharmaceutical | ||
maceutical | Launched "LOXOPROFEN Tablets JG, | ||
Released 14 new | " the second round of over-the-counter drugs | ||
generic drugs | |||
with 6 different | February 2020 | March 2020 | |
active ingredi- | |||
ents | Nihon Generic, Cho- | Medical Resources | |
seido Pharmaceutical | Opened Cheer Job | ||
Obtained manu- | Tohan, a website to | ||
facturing and sales | provide support for | ||
approval for 16 | registered pharmaceu- | ||
generic drugs with | tical medicine sellers | ||
9 different active | recruitment and | ||
ingredients | career change | ||
section Data
19 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 20 |
Financial Highlights
Net sales
268.5 billions of yen
(billions of yen) | |||||||
300 | 268.5 | ||||||
250 | 219.2 | 223.4 | 241.2 | 245.6 | |||
200 | 181.8 | ||||||
165.3 | |||||||
150 | |||||||
100 | |||||||
50 | |||||||
0 | |||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) |
ROE
15.2%
(%) |
30 |
25.3 |
Operating profit / Operating profit margin
7.5 billions of yen 2.8%
(billions of yen) | Operating profit | Operating profit margin | (%) | |||||||
15 | 4.8 | 4.4 | 5 | |||||||
3.8 | ||||||||||
12 | 3.7 | 10.4 | 10.5 | 4 | ||||||
2.9 | 2.8 | |||||||||
9 | 8.5 | 2.7 | 3 | 2 | ||||||
6.6 | 6.7 | 7.5 | ||||||||
6 | 2 | |||||||||
4.7 | ||||||||||
3 | 1 | |||||||||
0 | 0 | |||||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) | |||
ROA | Business | |||||||||
(%) | Performance | |||||||||
3.6% | ||||||||||
5 | 4.4 |
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
25 | ||||||||
20 | 16.6 | 15.7 | 15.2 | |||||
13.5 | ||||||||
15 | 12.0 | |||||||
9.2 | ||||||||
10 | ||||||||
5 | ||||||||
0 | ||||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) |
EPS (Profit per share)
446.66 yen
4 | 3.3 | 3.6 | ||||||
2.8 | ||||||||
3 | 2.2 | |||||||
2 | 1.8 | 2.1 | ||||||
1 | ||||||||
0 | ||||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) |
Cash dividends
50 yen
23 Dispensing Pharmacy Business
33 Information Provision and Consulting Business
- Pharmaceutical Manufacturing and Sales Business
- Medical Professional Staffing and Placement Business
Chouzai Nihon supports that Base
(yen) | |||||||
500 | 446.66 | ||||||
400 | 432.85 | 381.69 | |||||
300 | 290.03 | 243.47 | |||||
200 | 194.48 | ||||||
131.24 | |||||||
100 | |||||||
0 | |||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) |
Capital expenditure
12.0 billions of yen
(billions of yen) | ||||||||
25 | 23.3 | |||||||
20 | ||||||||
15 | 12.2 | 15.3 | 12.0 | |||||
10 | 9.0 | |||||||
8.0 | ||||||||
5.2 | ||||||||
5 | ||||||||
0 | ||||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) |
(yen) | Cash dividends (first half) | Cash dividends (second half) | ||||||
50 | 45 | 50 | 50 | 50 | 50 | |||
40 | 35 | 35 | 25 | |||||
30 | ||||||||
20 | ||||||||
10 | 25 | |||||||
0 | ||||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) |
R&D expenses
2.9 billions of yen
(billions of yen) | ||||||||
3.0 | 2.7 | 2.7 | 2.9 | |||||
2.5 | ||||||||
2.3 | ||||||||
2.0 | 1.7 | 1.9 | ||||||
1.5 | 1.5 | |||||||
1.0 | ||||||||
0.5 | ||||||||
0 | ||||||||
'13 | '14 | '15 | '16 | '17 | '18 | '19 | (FY) |
section Data
21 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 22 |
Dispensing Pharmacy Business
NIHON CHOUZAI Co., Ltd. and
Dispensing Pharmacy Subsidiaries
Dispensing Pharmacy Business
Long-TermVision - Rapid Progress toward Industry Restructuring
Nihon Chouzai's Growth Strategy
true achieving towards Growth dispensing and prescribing
Nihon Chouzai has achieved sustainable growth by utilizing the power generated by three key factors, driven by the positive cycle of human resources, which is the most important.
The first key factor is our ability to support advanced medicine. Since our founding, we have forged a history of opening pharmacies in front of university hospitals and major regional hospitals that provide advanced medicine. We have been able to create high-value-added services thanks to our high degree of expertise and extensive experience accumulated over the years.
The second key factor is our organizational capability. For the past 40 years, we have steadily overcome NHI drug price and prescription dispensing fee revisions with our strong responsiveness to government policies and measures and a changing environment in the medical industry.
The third key factor is our ability to adapt to ICT. Since the 1990s, shortly after our founding, we have led the industry in developing systems and performing speedy updates to build forward-looking, efficient systems that are essential for future pharmacy management.
drug of separation services
Business
Growth strategy
No.1
performance
Net sales
(millions of yen)
Operating profit
(millions of yen)
Operating profit to net sales (%)
231,001 | |||||
190,874 | 189,327 | 205,192 208,622 | |||
Sales | |||||
composition | |||||
80.5% | |||||
'15 | '16 | '17 | '18 | '19 | (FY) |
5.6 | 6.0 | ||||
5.0 | |||||
4.2 | 4.2 | ||||
12,411 | |||||
10,707 | 9,560 | 9,785 | |||
8,707 | |||||
Composition | |||||
of Operating | |||||
profit | |||||
75.6% | |||||
'15 | '16 | '17 | '18 | '19 | (FY) |
Ability to support | High degree of expertise | High Quality | ||||
advancing medicine | Extensive experience | |||||
Positive | No.1 | Response to | Strong brand | |||
Flexibility | ||||||
Organizational capability | government policies | Flexibility toward | ||||
cycle of human | ||||||
Response to changes | change | |||||
resources | ||||||
Only one | in the environment | |||||
Systems development | Innovative ability | |||||
Pioneer | ||||||
Ability to adapt to ICT | capability | |||||
Recruitment and invest- | Speedy updates | |||||
ment in human resources | ||||||
Market environment
In the Japanese medical industry, the government takes the initiative in setting NHI drug prices and prescription dispensing fees. NHI drug prices are revised every year, while prescription dispensing fees are revised once every two years, and the industry environment is subject to strong governmental regulations. In addition, from 2025 onwards, the Japanese population of seniors aged 75 and over is expected to increase sharply, making increased medical costs unavoidable. The government has been implementing measures in rapid succession to control increasing medical costs. Continued severe NHI drug price and prescription dispensing fee revisions are expected in response to the tight financial conditions. This harsh business environment becomes a factor behind the restructuring of the dispensing pharmacy industry, and there will likely be further consolidation as the number of pharmacies decreases. In order to survive under such an environment, we consider it necessary to increase sales at pharmacies and increase the number of pharmacists per pharmacy.
Market size (dispensing and | Share | Number of pharmacies under | Number of full-time pharmacists |
medical care expenses) | the same management |
(trillions of yen) | 4 major dispensing pharmacies | Others | n=467 | n=467 | |||||||||
8.0 | 0% | 50% | 100% | 0% | 50% | 100% | |||||||
7.8 | 1 | 27.6% | |||||||||||
7.7 | 1 | 38.3% | |||||||||||
10.8% | 2-9 | 36.2% | |||||||||||
7.5 | |||||||||||||
7.4 | 7.4 | 10-19 | 8.8% | ||||||||||
2 | 30.6% | ||||||||||||
7.0 | 7.1 | 20-29 | 4.5% | ||||||||||
7.0 | |||||||||||||
30-39 | 2.8% | 3 | 14.8% | ||||||||||
6.6 | FY2018 | 40-49 | 2.1% | ||||||||||
6.5 | 50-99 | 3.6% | 4 | 7.7% | |||||||||
100-149 | 1.9% | ||||||||||||
6.0 | 150-199 | 1.3% | 5 or more | 7.7% | |||||||||
200-499 | 3.0% | ||||||||||||
89.2% | |||||||||||||
0.0 | 500 or more | 6.4% | No response | 0.9% | |||||||||
2012 2013 2014 2015 2016 2017 2018(FY) | No response | 1.7% |
Market size and share: prepard by Nihon Chouzai based on Trend of Dispensing and Medical Care Expenses, Ministry of Health, Labour and Welfare, and prepared by Nihon Chouzai based on the securities reports of each company
Number of pharmacies under the same management and number of full-time pharmacists: Fact-Finding Survey Report for Achieving a Vision of Pharmacies for Patients, March 31, 2017, Ministry of Health, Labour and Welfare
Chouzai Nihon supports that Base
section Data
23 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 24 |
Dispensing Pharmacy Business
Growth Strategy: Achieve a Positive Cycle
Investment in Human Resources | Secure Human Resources | Recruitment of High-quality Pharmacists |
true achieving towards Growth dispensing and prescribing
Nihon Chouzai views people who support the Company as essential management resources and continuously invests in human resources. We are recognized within the industry as a company with topnotch, quality education, as exemplified by our providing diverse career opportunities and training.
Nihon Chouzai believes that the "strengthening of the interpersonal relations skills of pharmacists," which is commonly advocated in both "A Vision of Pharmacies for Patients" announced by the Ministry of Health, Labour and Welfare in October 2015 and
the proposed revision of the PMD Act submitted to an ordinary session of the Diet in fiscal 2019, will be the starting point of industry restructuring. It is expected that a higher level of interpersonal skills will be required than before and that the compensation structure will be balanced. Anticipating that major and unprecedented changes will be the starting point of industry restructuring, Nihon Chouzai has made strategic resource investments for several years in people, who are the bottleneck to successful restructur- ing, and the foundation for growth is now in place.
Because of the continuing shortage of pharmacists in the dispens- | as providing a variety of career plans has enabled the recruitment |
ing pharmacy industry, the recruitment of pharmacists, who are | of diverse, high-quality pharmacists. Pharmacists account for the |
essential to the long-term growth of the Company, has become a | majority of our employees, and the proportion of female pharma- |
key management issue. As a result of bolstering recruiting activi- | cists is high at around 64%, so we have worked on our efforts to |
ties for the past several years, Nihon Chouzai has rapidly increased | advance women in the workplace. The active role played by phar- |
the number of pharmacists employed. In addition, actively pro- | macists with diverse backgrounds and a wide range of experience |
moting advanced medical care and at-home medical care as well | has become the driving force behind Nihon Chouzai's growth. |
1. Recruitment of high-quality pharmacists
drug of separation services
A Vision of Pharmacies
for Patients
A Vision of Pharmacies for Patients, announced by the Ministry of Health, Labour and Welfare in October 2015, indicates that all pharmacies will be restructured into family pharmacists and family pharmacies by 2025. We are encouraging the functional differentiation of pharmacies into two types: those with health support functions and those with advanced pharmaceutical management functions. The vision also indicates that the skills required of pharmacists will shift from product skills to interpersonal service skills.
Starting point
Change for industry Change
restructuring
Bottleneck to success
Revised PMD Act
(Revised Pharmaceuticals and
Medical Devices Act)
On November 27, 2019, the proposed revision of the Pharmaceuticals and Medical Devices Act (the proposed revision of the PMD Act) was passed and enacted at the Diet, which will be enforced in phases from September 2020. The revised PMD Act indicates that dispensing pharmacies will be functionally differentiated into specialized medical institutions cooperation pharma- cies, regional-cooperation pharmacies, and other pharmacies that only perform simple dispensing. A Vision of Pharmacies for Patients has been embodied in a law, calling for an improvement in pharmacy functions and enhancement of interpersonal service
1 To the stage
for improv-Recruit
high-quality | ing quality | |
5 | pharmacists | |
2 | ||
Expand | Positive | |
operations | High-quality | |
(open phar- | cycle for | education |
macies) | human |
resources | |
4 | 3 |
Raise the | |
Strengthen | |
quality of | |
the pharmacy | |
medical | |
function | |
services | |
Steady number of recruits Turnover rate is on a downward trend
Mynavi/Nikkei 2021
popularity rankings of Japanese companies
among job-seeking students graduating in 2021
Medical / Welfare / Dispensing Pharmacy | ||
in the dispensing pharmacy | ||
No.1 | ||
Combined Science Majors | and drugstore industry | |
Female Science Majors | in three categories | |
*Prepared by Nihon Chouzai based on data from the Mynavi/Nikkei 2021 popularity rankings of Japanese companies among job-seeking students graduating in 2021
2. High-quality educationenhancement of interpersonal service skills
Pharmacist Stage System (April 2018 -)
Acquiring external pharmacist credentials
Training at hospitals for over 100 pharmacists per year
performance Business
Nihon supports that Base
skills by pharmacists.
The number of new pharmacist graduates that joined the Company in April 2020 was just short of 400, which is proof that we have developed a system for reliably securing human resources. In the popularity rankings of Japanese companies among job-seeking students graduating in 2021, we ranked number one in the dispensing pharmacy and drugstore industry in three out of four categories. We have
Chouzai
Investment in human resources
In the future, dispensing pharmacies will be required to improve their pharmacy functions, and pharmacists will be required to enhance their interpersonal service skills. On the other hand, evaluation of product services focused on picking and other dispensing work is now being reviewed, and prescription dispensing fees are being lowered. For these reasons, recruiting and refining the quality of pharmacists, who are the critical resources for engaging in interpersonal services, has become essential. Nihon Chouzai has invested in human resources with a view to medium- to long-term growth, but is now shifting from the phase of securing human resources to the phase of improving the quality of human resources.
already made the shift from the phase of securing human resources to the phase of providing high-quality education. High-quality education is critical to strengthening the interpersonal service skills of our pharmacists. In 2018, we launched a Pharmacist Stage System, in which the Company provides full backup for acquiring external pharmacist credentials, including cost subsidies. We now provide training at hospitals for more than 100 pharmacists every year, which is essential to acquiring external pharmacist credentials.
Raise Quality | High-quality Education |
Although we have established a quality education system, we | tise and motivation. Also, since it is extremely difficult to acquire |
Data
Secure human resources
Recruitment of high-quality human resources Improving the retention rate of recruits
Raise quality
In-house accreditation system: Pharmacist Stage System JP-STAR Acquiring external pharmacist credentials:
launched the Pharmacist Stage System JP-STAR in April 2018, | the seven external pharmacist credentials for expert pharmacists |
in addition to our existing 15-step-up training. Through training | through pharmacy work experience alone, the Company totally |
and self-study, pharmacists can advance their stage by obtaining | supports pharmacists, even with costs, by providing hospital train- |
knowledge and skill, and this has helped to improve their exper- | ing at more than 15 locations nationwide. |
section
A major component of Japan's population is the baby boomer generation. As we head to 2025, when all baby boomers will be over the age of 75, it will be essential to control increasing medical expenses. There is already a shift underway from expensive medical care at hospitals to at-home medical care. Accordingly, it will be essential that future pharmacists and pharmacies address at-home medical care. At-home medical care, wherein a pharmacist visits a patient's home, is difficult for a pharmacy with only one pharmacist to address. Therefore, it will be necessary to increase the number of pharmacists per pharmacy, and recruiting is an important factor.
Acquiring seven external pharmacist credentials
Future pharmacists and pharmacies need to have the expertise to perform at-home medical care and advanced medicine based on family pharmacist and pharmacy functions. In recent years, around 80% of cancer patients are treated as outpa- tients with medicine, and the importance of follow-ups by pharmacists during administration is increasing. It is difficult to handle advanced medicine with pharmacy work experience alone, so we are trying to raise the quality of pharmacists and support advanced medicine by having over 100 pharmacists actively participate in hospital training every year.
Pharmacist Stage System JP-STAR*
* Started operation in April 2018 | Highly advanced | ||
Advanced | specialist | ||
pharmacist | |||
Specialist | specialist | ||
pharmacist | Seven external | ||
pharmacist | |||
Standard | pharmacist | ||
credentials for | |||
pharmacist | expert pharmacists |
1st - 3rd year | 4th - 5th year | 6th - 7th year | 8th - 10th year and above |
Seven external pharmacist credentials for expert
pharmacists
- Accredited Pharmacist of Ambulatory Cancer Chemotherapy
- Expert Pharmacist (certified) in Kidney Disease Drug Therapy
- Nutrition Support Team Expert Therapist
- Board Certified Pharmacist in Diabetes Drug Therapy
- Board Certified Pharmacist in Palliative Pharmacy
- Expert Pharmacist in Cancer
- Board Certified Pharmacist in HIV Infection Drug Therapy
25 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 26 |
Dispensing Pharmacy Business
Growth Strategy: Achieve a Positive Cycle
Strengthen Pharmacy Function and Improve Quality of Medical Services
Investment in ICT that Supports Growth Systems Development Using Our Dispensing System as a Platform
true achieving towards Growth dispensing and prescribing
A Vision of Pharmacies for Patients was announced by the Ministry of Health, Labour and Welfare, specifically indicating the functions required of future pharmacists and pharmacies. Under
pharmacy functions, which are fundamental functions of pharma- cies, specialized medical institutions cooperation pharmacies that have additional advanced pharmaceutical management functions
Dispensing system
(platform)
of separation services
the revised PMD Act, which will be enforced in phases from Sep- tember 2020, pharmacies with enhanced pharmacy functions will be allowed to display their functions on signboards with a license issued by the governor of the prefecture. Both functions contain the word "collaborate," strongly necessitating collaboration with medical institutions. Building on a base of family pharmacist and
are required to put in place pharmacists with a high degree of expertise, such as accreditation by an academic society. Nihon Chouzai is actively strengthening the interpersonal service skills of its employees, and is steadily preparing for pharmacy functions that will be required in the future.
Voice input | |||||
system | Vein biometric | ||||
Nihon | |||||
authentication | Electronic medi- | ||||
system | At-home medical | Chouzai | |||
cation notebook | Health | ||||
care communica- | Online Store | ||||
tion system | Okusuri Techo Plus | consultation | |||
system | |||||
Remote
medication
guidance
February 2019 Improving convenience for patients,
Automation
of dispensing
work
2019
Supporting pharma- cist's dispensing work, utilizing ICT, and improving efficiency
drug
A Vision of Pharmacies
for Patients
Announced by the
Ministry of Health, Labour and Welfare
in october 2015
Revised PMD Act
Enforced in phases from September 2020
2005 | ||||
Assisting medication | ||||
history input by | 2011 | |||
2019 | ||||
pharmacists and | Ensuring business | |||
Supporting customers' | ||||
improving efficiency | authenticity | 2014 | ||
healthcare | ||||
2012 | Supporting safe medi- | 2017 | ||
Optimizing business Supporting at-home | ||||
hours | cation for patients | Supporting health |
supporting safe medication, and utilizing ICT
April 2020 Launched medication guidance by telephone and ICT devices in response to
performance Business
Family pharmacist and
Regional-cooperation pharmacies
Privacy-friendly structural equipment (partitions, etc.)
Providing information to medical institutions on drugs that patients bring to the hospital at the time of hospitalization
Development of and participation in systems for responding to local dispensing demand, including
medical care services | maintenance of local | |
by pharmacists and | Okusuri Techo Plus: | |
improving | About | residents |
efficiency | 500,000 members | |
(as of April 2020) |
COVID-19
pharmacy functions
Participation in meetings with doctors, nurses, care managers, etc. (conferences at the time of discharging from hospitals, etc.)
Placement of pharmacists who have received training on integrated community care, including welfare and nursing
nighttime and holiday hours
Dispensing drugs necessary for at- home medical care, including narcotic and sterile preparation dispensing
Home visits
Dispensing system
Nihon Chouzai is the only company in the dispensing pharmacy industry to develop by itself and operate a dispensing system for use in pharmacy work. The Company began in-house development of a dispensing system in the 1990s, and by updating it every year, we have been able to respond quickly to revisions in prescription dispensing fees and other matters. The system helps streamline work and supports the work of pharmacists as the core system for supporting dispensing work.
that Base
Specialized medical institutions cooperation pharmacies
Voice input system
Health consultation system
supports
Advanced pharmaceutical
management functions
Privacy-friendly structural equipment (partitions, private rooms, and other spaces where patients can seek consultation)
Providing information to medical institutions on drugs that patients bring to the hospital at the time of hospitalization
Participation in meetings with doctors, nurses, care managers, etc. (conferences at the time of discharging from hospitals, etc.)
Sharing of treatment policies with doctors and pharmacists, etc. at specialized medical institutions
Conducting joint training with specialized medical institutions, etc.
Sharing medication information with regional-cooperation pharmacies, etc. used by patients
Placement of pharmacists with a high degree of expertise, such as accreditation by an academic society
We have introduced a voice input system that assists with the input of medication history after the pharmacist has provided the medication guid- ance. It is equipped with a function to learn the traits and other elements of individual voices. The system's voice recognition function is highly accurate, and it supports technical terminology. At pharmacies that have introduced this system, the time it takes to input medication history can be shortened and the entry can be updated.
Vein biometric authentication system
We have developed a system that supports the health of patients by centrally recording information such as health consultations at pharmacies and health consultations conducted by registered dieticians at Health Check Stations. By centrally recording information including over-the-counter drugs as well, we are helping local residents maintain their health.
Nihon Chouzai Online Store
We are operating an online store that provides comprehensive support for healthcare, offering high-performance,high-quality products carefully
Chouzai Nihon
Source: Prepared by Nihon Chouzai based on documents submitted by the Ministry of Health, Labour and Welfare (May 2019)
Nihon Chouzai has introduced a vein biometric authentication system utilizing finger veins that is linked to a dispensing system. This system applies a time stamp for work performed and guarantees the work's authenticity.
selected by professionals at dispensing pharmacies, namely pharmacists and registered dieticians. We support healthcare for a wide range of users by offering approximately 2,000 different products specialized in healthcare,
Family pharmacists
82%
Percentage of pharmacies with
family pharmacists
(also includes new pharmacies that do not
meet qualification requirements)
As of July 16, 2020
At-home medical care
94%
Percentage of pharmacies that perform at-home medical care
(At least once a year)
As of March 31, 2020
Placement of pharmacists with a high degree of expertise, such as accreditation by an academic society
1in 4pharmacists
Percentage of Nihon Chouzai pharmacists among all pharmacists who are qualified as Accredited Pharmacists of Ambulatory Cancer Chemotherapy
As of April 30, 2020
Handle narcotic dispensing
100%
Percentage of pharmacies that obtained
a license to handle narcotics
(excluding 1 retail pharmacy)
As of March 31, 2020
At the same time, work can be managed, and this is utilized for work-style reforms by optimizing working hours.
At-home medical care communication system
We have devised a system that enables the pharmacist to access the at- home medical care communication system using a tablet PC when performing at-home medical care, and records of past history and at-home medical care can be entered on the spot. The system is used as a tool to streamline the work of pharmacists who conduct at-home medical care and collaborate with local doctors, thus providing high-quality medical care.
Electronic medication notebook Okusuri Techo Plus
The electronic medication notebook Okusuri Techo Plus links with the dispensing system to enable centralized management of medication history. Furthermore, Okusuri Techo Plus is also equipped with a personal health record (PHR) function that offers tremendous convenience by linking data from weight scales and blood glucose measuring devices. It allows for management of the patient's daily habits and supports their health.
including pharmaceuticals, medical equipment, cosmetics, health foods, and hygiene products. The online store also sells original products available exclusively at the store.
Remote medication guidance
Currently, remote medication guidance is only allowed in National Strategic Special Zones in Aichi Prefecture, Fukuoka City, Yabu City, and Chiba City. Nihon Chouzai has conducted remote medication guidance in Aichi Prefec- ture, Fukuoka City, and Chiba City. In addition, starting in September 2020, online medication guidance will be allowed for prescriptions that have been given online.
We are working to improve convenience for patients by making remote medication guidance available to patients in areas with no pharmacies and patients who have difficulty visiting a hospital.
Automation of dispensing work
On April 2, 2019, the Ministry of Health, Labour and Welfare issued a notification on how dispensing work is performed, and it is now possible for people other than pharmacists to perform dispensing work called picking, which had been conducted by pharmacists, under the supervision of a pharmacist. We have begun to improve the efficiency of our dispensing work by promoting automation.
section Data
27 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 28 |
Dispensing Pharmacy Business
Growth Strategy: Achieve a Positive Cycle
achieving towards Growth and prescribing
Investment in ICT that Supports Growth Remote Medication Guidance
Investment in ICT that Supports Growth Automation of Dispensing Work
true dispensing
Advantages of remote medication guidance provided by Nihon Chouzai
Using the electronic medication notebook developed by Nihon Chouzai allows for centralized tracking of the medications that patients used at other hospitals, as well as their OTC drugs, health records, etc., and prevents the duplication of medications and side effects of concomitant medications. We collaborate with hospitals as necessary by making inquiries to doctors and using tracing reports on monitoring of patients while they are on medication, enabling effective support for drug therapy.
Areas where remote medication guidance is provided
Remote medication guidance is only permitted in National Strategic Special Zones in Aichi Prefecture, Fukuoka City, Yabu City, and Chiba City. Among these, Nihon Chouzai has conducted remote medication guidance in Aichi Prefecture, Fukuoka City, and Chiba City. Remote medication guidance was launched in September 2016 in three Special Zones of Aichi Prefecture, Fukuoka City, and Yabu City, mainly in remote regions and islands lacking in medical resources. Since then, the Ministry of Health, Labour and Welfare revised its ministerial ordinance in September 2019, so that remote medication guidance
System changes to promote automation
On April 2, 2019, the Ministry of Health, Labour and Welfare issued a notification on "How Dispensing Work is Performed" (No- tification 0402). From the perspective of enhancing interpersonal service skills, it is necessary to streamline product work. It is now possible for people other than pharmacists to assort medicines that are still packed in PTP sheets, so long as they are being visually monitored by a pharmacist. It also became possible to conduct dispensing work that actively utilizes dispensing equipment.
Efforts at Nihon Chouzai dispensing pharmacies
As a result of extensive studies on human error prevention, hy- giene, and other issues, we have settled on a plan to promote automation. Verification tests of fully-automatic PTP sheet dispensing devices, such as ROBO-PICK II, resulted in labor-saving of about one pharmacist. While there are some conditions, such as the need for a certain level of sales, we aim to improve the quality of medical services by creating time for pharmacists to devote to interpersonal services, while promoting efficiency with automation.
drug of separation services
Business
can be conducted even in urban areas, as long as certain requirements are met. In response to this, Chiba City submitted a zoning plan that permits remote medication guidance. In December 2019, the registration of participating pharmacies began for all regions of Chiba City.
Drug Station
Decided to introduce at multiple stores, started verification tests
Collaboration/cooperation with dispensing
Maximum of 3,000 items
performance
Remote medication guidance process
Advantages of remote medication guidance | Centralization of information in real time using | |
provided by Nihon Chouzai | Okusuri Techo Plus (the electronic medication notebook) | |
equipment manufacturers
Promoting automation mainly in large stores
ROBO-PICK II
Automatic drug picking device
Helping to prevent drug | Drugs prescribed | Nihon | |||||||
by other hospitals | |||||||||
duplications, leftover drugs, | Health records, | Chouzai | |||||||
side effects, etc. | etc. | Cloud | |||||||
Patients | |||||||||
1. Online medical treatment | and | ||||||||
families | |||||||||
Hospitals | |||||||||
2. Sending prescriptions (electronic prescriptions in the future)
Refer to the contents of the medication notebook
3'. Dispensed drug data
(reflected automatically)
3. Remote medication guidance
Pharmacy
4. Delivery of drugs
Annual sales per store*
National average | Nihon Chouzai |
About | About |
120 | 370 |
million yen | million yen |
*Sales per store Nihon Chouzai:
Completed verification tests
Promote automation mainly in medium and large stores, where increased efficiency can be utilized
Maximum of 1,300 items
Fully-automatic PTP sheet | Up to 130 items per unit | Up to 10 units may be | ||
dispensing device | consolidated | |||
Nihon supports that Base
Sharing of information such as medication status
Investment in ICT that Supports Growth Online Medication Guidance Started with the Partial Revision of the PMD Act
Annual sales per store as of March 31, 2020 National average:
Calculated based on Trend of Dispensing and Medical Care Expenses Fiscal 2018 Edition and an overview of Fiscal 2018 Report on Public Health Administration and Services, Ministry of Health, Labour and Welfare
Shifting pharmacist work to more interpersonal services Improving the quality of dispensing (including hygiene) Improving patient safety
Chouzai
Although online medical treatment by doctors has already been | cal treatment has been provided will be eligible for this new form |
introduced, pharmacies provide face-to-face medication guidance | of service. Treatment of diseases applicable for online medical |
in principle, with provision of remote medication guidance limited | treatment has expanded to include prevention of severe diabetes |
in certain Special Zones. With the partial revision of the PMD Act, | and chronic migraines, and it is expected that the scope of online |
online medication guidance will be available across Japan starting | medication guidance will be expanded. |
September 1, 2020. Only the prescriptions for which online medi-
Schedule of the PMD Act revision
March 6, 2020 | 1. Online medication guidance | Stipulation of medication guidance by videophone, etc. subject to certain rules |
Cabinet decision on | Expand target areas and target patients | |
enforcement dates | 2. Mandatory follow-up during | Obligate pharmacies to keep up with the patient's drug usage status and instruct them on |
medication as needed, not only when dispensing | ||
September 1, 2020 | medication period | Obligate pharmacies to make an effort to provide information on patients' drug use to doctors, etc. at other |
Enforcement of | medical facilities | |
Verification tests with new-type dispensing equipment
In May 2020, we introduced the newly released Drug Station, which is capable of dispensing 3,000 pharmaceutical products, ahead of other companies, and started a verification test for efficiency improvement. Based on the results of the verification test, we plan to introduce Drug Stations to dispensing pharmacies with sales level that can improve efficiency.
In the future, we will make efficient investments by introducing new models and conducting verification tests as soon as they are released.
Automation introduction schedule
In fiscal 2020, we plan to proceed with automation at 50 stores. In the first half of the year, we will continue verification tests mainly in the Kanto region, and identify the conditions that are highly effective in improving efficiency. Then, in the second half, we will expand to the whole country. We plan to proceed with automation in 200 stores within three years, including 70 stores in fiscal 2021 and 80 stores in fiscal 2022. We believe that automation will not only improve efficiency, but also have side effects such as reducing human errors and contributing to ensuring medical safety.
section Data
1. and 2. | 3. New pharmacy functions | Introduce a system for governors to certify pharmacies by function so that patients can select the pharmacy |
that best suits their needs | ||
August 1, 2021 | certification system | Certify pharmacies that regional-cooperation and pharmacies specialized medical cooperation |
pharmacies, with renewals once a year | ||
Enforcement of | ||
Develop legal compliance and systems with licensed businesses (development of a business supervision system, | ||
3., 4., and 5. | 4. Strengthening governance | |
clarification of responsibilities of management and field managers) | ||
December 1, 2022 | Legally put in place officers responsible for pharmaceutical affairs | |
5. Digitization of attached documents | Eliminate package inserts of attached documents from the product, providing them by electronic means instead | |
Enforcement of 6. | ||
Display information enabling access to the latest attached document information on the outer packaging of products | ||
6. Bar code display on pharmaceuticals packaging | Promote traceability management, from the procurement of pharmaceuticals to post medication guidance | |
Source: Prepared by Nihon Chouzai based on the draft of the revised PMD Act, Ministry of Health, Labour and Welfare
Schedule | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | 200 stores | |
50 stores | 70 stores | 80 stores | in total in 3 years | ||
February to March 2020 | First half of fiscal 2020 | Second half of fiscal 2020 | Additional consideration | ||
Test Phase | Expansion Phase | of the introduction of | |||
Early introduction | |||||
(Kanto Region) | (Across Japan) | new models | |||
29 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 30 |
Dispensing Pharmacy Business
Growth Strategy: Achieve a Positive Cycle
Growth Strategy: New Businesses, Various Approaches |
achievingtowardsGrowth and prescribing |
Expand Business Operations
Net sales
Sales have continued to increase every year, despite the effects of drug price and prescription dispensing fee revisions. The sales amount of hepatitis C drugs peaked at 20.2 billion yen in fiscal 2015, falling by half to 11.0 billion yen in fiscal 2016, and it is now 3.6 billion yen. Sales declined temporarily from fiscal 2015 to fiscal 2016, due to this decrease in sales of hepatitis C drugs. Excluding the impact of this trend, sales have continuously in- creased, and we are achieving continuous growth by the well-balanced opening of pharmacies, mainly Nihon Chouzai pharmacies.
Net sales per pharmacy
Nihon Chouzai regards net sales per pharmacy as a key factor to successful industry restructuring going forward. We view collaboration with medical institutions and the performance of at-home medical care as essential to achieving A Vision of Pharmacies for Patients. To carry these out, multiple pharmacists and pharmacies of ample size are both required. Therefore, we are opening Nihon Chouzai pharmacies and pharmacies through mergers and acqui- sitions, with a focus on pharmacies of ample size or larger, and it is inevitable that our pharmacies will become larger.
Launched Service of FINDAT, an Advanced DI Web Platform | of separation true servicesdispensing |
Nihon Chouzai has developed FINDAT, the first advanced DI web | |
platform in Japan* (https://www.findat.jp), and released this plat- | |
form on June 1, 2020. FINDAT supports the drug information (DI) | |
work by centrally managing collection and evaluation of DI and | drug |
providing it to each medical institution in the form of an advanced | |
DI web platform. This will support the standardization and stream- | |
lining of drug information at medical institutions, and contribute | |
to appropriate drug treatment for patients. | |
FINDAT neutrally evaluates and distributes online drug infor- | |
mation that has been collected comprehensively from various | Business |
domestic and foreign guidelines and global, highly reliable, paid | |
secondary information databases. By providing drug information |
(billions of yen) | Net sales | Hepatitis C drugs (billions of yen) |
250.0 | 50.0 |
231.0 | ||||
200.0 | 190.8 | 205.1 | 208.6 | 40.0 |
189.3 | ||||
150.0 | 30.0 | |||
100.0 | 20.2 | 20.0 | ||
11.0 |
(millions of yen) Net sales per pharmacy 400
367 | 359 | 370 | |
350 | 349 | 352 | |
300 | |||
250 |
useful for practical cases such as "Standardized Formulary," "Drug | performance | |
Efficacy Group Comparative Review," and "New Drug Evalua- | ||
tion," this service can be used to create materials for formulary | ||
management and pharmaceutical affairs committees, for pro- | drugs, and lead to enhancing interpersonal service skills and team | |
moting standardized drug treatment at medical institutions. Also, | medical care, as shift from product service to interpersonal service | |
using FINDAT can help reduce the burden of DI work, including | has been required. | |
peer review of original papers and information gathering on new | *Survey by Nihon Chouzai, as of May 25, 2020 | |
50.0 | 6.6 | 5.8 | 10.0 | ||
3.6 | |||||
0.0 | 0.0 | ||||
'15 | '16 | '17 | '18 | '19 | (FY) |
200 | |||||
'15 | '16 | '17 | '18 | '19 | (FY) |
Initiatives to Control the Increasing Costs of Medical Care
Promoting the use of generic drugs
Initiatives for Health Support Functions
Health Check-up Stations
supports that Base
Pharmacy opening strategy
According to the Long-term Vision announced by the Company in May 2018, Nihon Chouzai seeks to change the current pharmacy mix of 70% for hospital-front pharmacies and 30% for hybrid-type pharmacies to 50% for hospital-front pharmacies and 50% for hybrid-type pharmacies, while working to increase its overall number of pharmacies, by fiscal 2030. The ratio of hybrid-type pharmacies in Tokyo, Kanagawa, Saitama, and Chiba prefectures as of March 31, 2020 increased to 54%. In the future, our strategy is to open hospital-front pharmacies and hybrid-type pharmacies in a balanced manner.
(Stores) | Number of store openings | Number of hybrid-type pharmacies | ||||
70 | 65 | |||||
60 | ||||||
50 | ||||||
40 | 42 | |||||
36 | ||||||
32 | ||||||
30 | 27 | 27 | ||||
20 | 16 | 16 | ||||
10 | 10 | 6 | ||||
0 | ||||||
'15 | '16 | '17 | '18 | '19 | (FY) |
Pharmacy openings
Our pharmacy opening strategy places importance on balance between hospital-front pharmacies and hybrid-type pharmacies, as well as Nihon Chouzai pharmacies and M&A pharmacies. The functions required of pharmacies change from year to year, and it is necessary to have a good balance of store openings and scales in order to adapt to these changes. We open stores based on the level of our average annual sales of about 350 million yen per store.
Record high number of M&A pharmacies | ||||||
(FY) | '15 | '16 | '17 | '18 | '19 | |
Pharmacy openings | 27 | 42 | 36 | 32 | 65* | |
Nihon Chouzai | 22 | 21 | 23 | 26 | 35 | |
pharmacies | ||||||
M&A | 5 | 21 | 13 | 6 | 30 | |
Pharmacy closures | 11 | 12 | 8 | 19 | 13 | |
No. of pharmacies | 527 | 557 | 585 | 598 | 650 | |
at fiscal year-end | ||||||
· Includes 1 retail pharmacy | *Includes 1 store format change from a retail | |||||
pharmacy to a dispensing pharmacy |
We achieved the government target of increasing the usage of generic drugs to 80% set for September 30, 2020 three years ahead of schedule. As of March 31, 2020, we have achieved the industry's leading share of generic drug use, volume-based at 88.8%.
Generic drug use, volume-based
(%) | Nihon Chouzai | Nationwide | 88.8 |
90 | 87.0 | ||
85 | 81.6 | 83.6 | ||
79.0 | 79.9* | |||
80 | ||||
75 | 73.9 | 73.0 | 77.4 | |
70 | 68.6 | |||
65 | 63.1 |
60 | 58.4 |
55 |
50
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
'14 | '15 | '16 | '17 | '18 | '19 | (FY) |
- Trend of Dispensing and Medical Care Expenses, generics ratio, volume-based (new indicator), Ministry of Health, Labour and Welfare
Promoting the use of generic drugs contributes to
control of increasing medical costs
Internal sales of the pharmaceutical manufacturing and
sales business are expanding (Group synergies)
As a measure for enhancing the health support function of dispensing pharmacies, Nihon Chouzai set up in-pharmacy Health Check-up Stations and is proactively working to maintain the health of local residents and on pre-symptomatic disease preven- tion. Blood pressure meters and body composition measurement equipment have been installed in the Health Check Stations, and a variety of measurements and nutritional consultations by registered dieticians are conducted there.
Health support function:
Number of stores with Health Check-up Stations
March 2018 | March 2019 | June 2020 | |
No. of Health Check- | 37 | 62 | 75 |
up Stations* | |||
*The Health Check-up Station is a registered trademark of NIHON CHOUZAI Co., Ltd.
- Advice on diet and exercise from registered dietitians
- Promoting use by local residents through the holding of health fairs
- Specialist booths on health maintenance and promotion
- Health management using various measurement devices, including blood pressure meters and body composition measurement equipment
- Support for self-medication with a range of more than 500 items, including OTC drugs and health food
- Recommendations to receive a medical examination and referrals to medical institutions depending on symptoms
Chouzai Nihon
section Data
31 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 32 |
Information Provision and
Consulting Business
Japan Medical Research Institute Co., Ltd.
Information Provision and Consulting Business is included in the Dispensing Pharmacy Business segment.
For a Future of Ample Medical Care
Striving to provide its vision of high-quality medical care at low cost
Dispensing pharmacies within the Group | |||||||
Prescription data (anonymized data) | Health insurance enterprise receipt data | ||||||
Highly consistent big data | Big data | ||||||
(Real world data) | Dedicated analysis room | ||||||
obtained from unified system | |||||||
(High degree of analytical accuracy) | (Security collateral) | ||||||
Analysis/consulting (Anonymized data) | |||||||
Japan Medical | Research | InstituteInstitute | |||||
Contributing to maintaining the | health insurance system | ||||||
by keeping healthcare cost increases under control |
Main | Information provision service (provision of information to research institutions, educational | |
institutions, pharmaceutical manufacturers, and others, as well as joint research) | ||
businesses | ||
Data health planning project contracting (receipt analysis, notification business) | ||
Information Provision and Consulting Business
Information Provision Service RI-CORE
In the information provision service, RI-CORE is used as the foundation upon which analytical | of separation trueachievingtowardsGrowth services dispensingprescribingand | ||||||||||||
tools are developed and operated to process the information obtained from prescription data. | |||||||||||||
Surveys, research, information provision and consulting businesses are conducted for research | |||||||||||||
institutions, educational institutions, pharmaceutical manufacturers and others. | |||||||||||||
By integrating big data, such as the anonymized prescription data from the Group's Dispensing | |||||||||||||
Pharmacy Business, together with questionnaire surveys that pharmacists conducted at pharma- | |||||||||||||
cies, the result was high-value-added information unparalleled in the industry. Providing informa- | |||||||||||||
tion in this manner enables us to contribute to the rationalization of medical care costs. | drug | ||||||||||||
In-store Promotion Advertising Media Services | 1. Airing on monitors | 2. Sampling | |||||||||||
Also contributing to the advance of self-medication | |||||||||||||
We perform in-store promotion (IP) and advertising media services conducted in stores by posi- | · Available for viewing by | · Improving the sense of | Business | ||||||||||
tioning a variety of IP in easily seen areas of stores to target a total of over 14 million patients that | over 14 million patients in | security and trustworthi- | |||||||||||
total who visit pharmacies | ness by hand delivery by | ||||||||||||
visit every year. | each year | pharmacists | |||||||||||
performance | |||||||||||||
· Able to directly approach | |||||||||||||
Examples include videos commissioned by companies and the government airing on in-store | |||||||||||||
target demographics | |||||||||||||
monitors, as well as poster displays, merchandise displays, and samplings and booklets distributed | 3. Poster display | 4. Placing leaflets | |||||||||||
directly to patients by pharmacists. From last year, we also have been conveying useful infor- | |||||||||||||
mation to promote presymptomatic prevention for patients who visit our pharmacies through | |||||||||||||
sampling at the time of dietary instructions, etc. by national registered dieticians. Moreover, while | |||||||||||||
linking with services to provide information, we are also taking up the challenge of new initiatives | |||||||||||||
that bring data and people together and endeavoring to promote self-medication. | |||||||||||||
· Patients pay attention | · Patients may take them to | ||||||||||||
while waiting for | read during the waiting | ||||||||||||
dispensing | time or after they get | ||||||||||||
· Able to provide informa- | home | ||||||||||||
tion to all patients visiting | · Able to provide informa- | ||||||||||||
pharmacies | tion to all patients visiting | ||||||||||||
pharmacies | Base | ||||||||||||
Data Health Support Service by Pharmacists - Opinions from pharmacists and patients | |||||||||||||
that | |||||||||||||
Efforts to optimize medications by analyzing data (eliminating duplication and multiple drugs) ........ | supports | ||||||||||||
Duplication/multiple drugs | |||||||||||||
Support for behavioral change through data analysis that utilizes IoT for pre-diabetic and diabetic patients .......... | |||||||||||||
Diabetes | Nihon | ||||||||||||
Duplication/multiple drugs When I actually talk with patients, | Patients' | I was able to speak with a pharmacist about issues that were difficult | Chouzai | ||||||||||
I find that some patients feel anxiety about taking medication, or do | opinions | ||||||||||||
to discuss with my doctors, because I thought they would be too busy. | |||||||||||||
not feel the need to convey what medication they are taking. Others | |||||||||||||
I am thankful that my pharmacist inquired with doctors on my behalf | |||||||||||||
are using their medication notebook incorrectly (creating a medication | |||||||||||||
and offered various solutions. | |||||||||||||
notebook for each hospital). These are actually causing them to take | |||||||||||||
duplicate or multiple drugs, and I felt that support from pharmacists | I never knew how to use a | Now that I can see the condition of my | |||||||||||
would help solve this problem. | medication notebook before, | body that I could not see before, I take | |||||||||||
Diabetes Few people had a good understanding of diabetes itself. | but my pharmacist taught me | more care about how I eat and exercise. | |||||||||||
Pharmacist | I felt that support from pharmacists would help patients understand | how. I am going to compile my | I have been able to properly | ||||||||||
diabetes and take better care of their health. | notebooks into one. | ||||||||||||
Ms. Suga | |||||||||||||
care for my health in my daily | |||||||||||||
I didn't want to go to the hospital because I | life without any hassles, and |
1 High-quality information provision service that utilizes real-world data
Based on the foundation of RI-CORE, which commenced services in fiscal 2017, the information provision service offers development and operation of analytical tools to process an entire five-year period of prescription data gained from Group dispensing pharmacies. This is big data of 250 million prescription cases, which, when integrated with information provided by pharma- cists, takes advantage of a maximum degree of synergies with the Dispensing Pharmacy Business to provide high-value-added data that is unrivaled in the industry. Providing this real-world data to research institutions, educational institutions, pharmaceutical manufacturers and others, as well as conducting joint research, contributes to improving patient adherence (medication manage- ment) and rationalizing medical expenses.
2 Data health support service that contributes to the optimization of medical costs
The Japan Medical Research Institute conducts various data health-related initiatives that leverage its expertise in data analysis and consulting capabilities that it has cultivated with its information provision service.
As part of these efforts, we conduct analysis necessary for the optimization of medical costs and notification of medication to insured persons (information on price difference between generic drugs and original drugs, duplication, multiple drugs), based on the data entrusted to us by health insurance enterprises. In addi- tion, through pharmacists, we also conduct practical support tasks such as optimizing medication, treatment and support for persons in pre-illness conditions as well as affected persons (un-examined persons), and prevention of serious illnesses. At health events and seminars, we also contribute to the optimization of medical costs through various support services, including support services for setting up drug consultation meetings.
Diabetes Many people have undergone drug therapy because they | thought diabetes would limit my life (?), but | I would like to continue this | Data | |||
could not improve their lifestyles. I really felt the importance of the | ||||||
I understood the need for treatment and was | habit in the future. | |||||
efforts as I saw their lifestyles and medication improved with support | ||||||
happy to get consultation. | ||||||
section | ||||||
from pharmacists. | ||||||
Patients' opinions | I was able to | My doctor | Duplication/multiple drugs For patients with anxiety about | |||
Pharmacist | ||||||
My diet was corrected, | continue because | praised me for | taking medication, I felt that I could take the anxiety away just by | |||
Mr. Shiozawa | and I am now able | they followed up by | controlling my | giving consultation. | ||
to take my medicine | phone on a regular | diabetes. | Diabetes Since I need to speak with patients broadly about med- | |||
properly. | basis. | icine, eating habits, and their health, I feel that it has become more | ||||
important to give an explanation that is suitable for each patient, | ||||||
rather than a uniform explanation. | Pharmacist | |||||
Papers submitted regarding survey and research results | Mr. Tomizawa |
- Precision Medicine, May issue, advertisement paper "Dispensing information and data analysis (data characteristics in the field of diabetes treatment drugs)" (Hokuryukan)
- Medical Consultation & New Remedies, Vol. 56 (2019), January issue, "Survey on Actual Situation of Heparinoid Foam Spray in Medical Treatment by the Outpatient Department" (Iji Publishing Co., Ltd.)
- Medical Consultation & New Remedies, Vol. 56 (2019), July issue, "Consciousness Survey on Feeling and Oral Disintegrating Tablet (OD Tablets) in Patients Who Have Been Prescribed Medication for Heart Failure" (Iji Publishing Co., Ltd.)
- Progress In Medicine, 39 (10:) 1031-1039, 2019 "Patient questionnaire survey on usability of old and new bisoprolol patches (Bisono® Tape)" (Life Science)
- Medical Consultation & New Remedies, Vol. 56 (2019), December issue: 893-898 "Investigation about Improvement of Adherence by Moisturizing Guidance in Pharmacy for Families of Children with
Skin Symptoms: Aiming to Suppress the Progression of Allergic March" (Iji Publishing Co., Ltd.) Other articles have also been in the process of submission
33 NIHON CHOUZAI CORPORATE REPORT 2020
NIHON CHOUZAI CORPORATE REPORT 2020 34
Pharmaceutical Manufacturing and Sales Business
Nihon Generic Co., Ltd.
Choseido Pharmaceutical Co., Ltd.
Pharmaceutical Manufacturing and Sales Business
Growth Strategy
Fiscal 2018 | Fiscal 2019 |
Prior investments have peaked out | Promote in-house production of generic drugs |
Revision of sales strategy | Penetration of sales strategy effects |
Strict cost control | Strict cost control |
drug of separation true achieving towards Growth services dispensing and prescribing
The completion of Tsukuba No. 2 Plant (Nihon Generic Co., Ltd.) in March 2018 and the relocation and consolidation of the Tsuku- ba Research Institute in June 2018 brought to an end several years of investment.
Since March 2019, expenses such as depreciation costs, utilities costs, and personnel costs have increased associated with the start of operations at Tsukuba No. 2 Plant. We have absorbed these increased costs by reviewing our sales strategies and tightening cost controls, securing oper-
ating profit that exceeded our initial forecast. In fiscal 2019, operating profit was 1,301 million yen due to increased internal sales and increased
Nihon Generic Tsukuba No. 2 Plant
sales of items on the new NHI drug price listing, despite diminishing factors such as revisions to NHI drug prices.
Cost of capital investments and depreciation costs
(billions of yen) | Depreciation | Capital investments (billions of yen) | |||||||
4.0 | 18.7 | 3.5 | 3.6 | 3.6 | 20.0 | ||||
3.0 | 2.6 | 15.0 | |||||||
2.2 | |||||||||
2.0 | 8.7 | 2.0 | 10.2 | Stabilized fixed costs | 10.0 | ||||
1.0 | 1.2 | 4.7 | 5.0 | ||||||
3.7 | 1.5 | 2.0 | |||||||
0.0 | 0.0 | ||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | (FY) | ||
Plan |
performance Business
43,072 |
40,659 |
Acquisition of License Sale of In-house Manufactured Products
supports that Base
Net sales
(millions of yen)
36,821 | 38,066 |
32,598 | |
Sales | |
composition | |
15.0% |
New NHI drug price listing of generic drugs is done twice a year in June and December, making it possible to release drugs with expired patents. In December 2019, a new NHI drug price listing for BudeForu Dry Powder Inhaler, sold independently, contributed to the increase in net sales and gross profit. In February 2020, we received approval for 9 ingredients and 16 items, including cele- coxib tablets (brand name: Celecox Tablets), in preparation for the market launch in June 2020. This includes several products with a large market, so we can expect increased sales in the future.
New Price Listings in June: 3 ingredients and 8 items
Product name
Silodosin Tablets 2mg JG | Blonanserin Tablets 2mg YD | |
Silodosin Tablets 4mg JG | Blonanserin Tablets 4mg YD | |
Silodosin OD Tablets 2mg NISSIN | Blonanserin Tablets 8mg YD | |
Silodosin OD Tablets 4mg NISSIN | Gefitinib Tablets 250mg JG | |
New Price Listings in December: 6 ingredients and 14 items
Chouzai Nihon
'15 | '16 | '17 | '18 | '19 (FY) |
Product name
Atomoxetine Tablets 5mg JG Atomoxetine Tablets 10mg JG Atomoxetine Tablets 25mg JG Atomoxetine Tablets 40mg JG
BudeForu Dry Powder Inhaler 30 doses JG BudeForu Dry Powder Inhaler 60 doses JG Mometasone Nasal 50μg JG 56 sprays Mometasone Nasal 50μg JG 112 sprays
section Data
Operating profit
(millions of yen)
8.2 |
Silodosin | Silodosin | |
Tablets | Tablets | BudeForu Dry Powder Inhaler |
2mg JG | 4mg JG | 30 doses JG |
Atomoxetine Oral Solution 0.4% JG
Flecainide Acetate Tablets 50mg TE
Flecainide Acetate Tablets 100mg TE
Capecitabine Tablets 300mg JG Lanthanum Carbonate OD Tablets 250mg JG* Lanthanum Carbonate OD Tablets 500mg JG*
Operating profit to net sales (%)
4.7 | 4.6 | ||||
2,668 | 3.1 | 3.0 | |||
1,719 | 1,885 | Composition | |||
1,301 | |||||
1,194 | |||||
of Operating | |||||
profit | |||||
10.1% | |||||
'15 | '16 | '17 | '18 | '19 (FY) |
Lanthanum | Lanthanum |
Carbonate OD | Carbonate OD |
Tablets | Tablets |
250mg JG | 500mg JG |
BudeForu Dry Powder Inhaler
60 doses JG
*Lanthanum Carbonate OD Tablets were released in January 2020
Launched OTC drugs (January 2020)
As our second round of OTC drugs, we launched Loxoprofen Tablets JG (antipyretics/analgesics).
Loxoprofen Tablets JG pack of 12
35 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 36 |
Pharmaceutical Manufacturing and Sales Business
Growth Strategy
Expanding Operations to Create Group Synergies Unique to Nihon Chouzai Group
- We possess an unrivaled business model by which the Pharmaceutical Manufacturing and Sales Business (Nihon Generic and Choseido Pharmaceutical) will expand along with the expansion of the Dispensing Pharmacy Business of the Nihon Chouzai Group. We have dispensing pharmacies and pharmaceutical manufacturers within the Nihon Chouzai Group, and we are steadily expanding our business by demonstrating the synergy unique to our Group.
- Nihon Generic and Choseido Pharmaceutical's generic drugs are purchased by Nihon Chouzai pharmacies nationwide through wholesale companies. As a result, we have built a unique business model that other companies do not have, by expanding distribution network for our generic drugs to wholesale distribution channels nationwide and expanding external sales.
- We conduct business with several other manufacturers including contracting in and contracting out manufacturing, as well as in-licensing and out-licensing.
Expanding Operations with Out-licensed Contract Manufacturing Products and Sales Alliance Products
Contract manufacturing | Produce items developed by other companies at Nihon Generic and Choseido |
Pharmaceutical and sell them. | |
Contract manufacturing
Transferring large-lot products from Tsukuba Plant to Tsukuba No. 2 Plant freed up production lines, enabling us to conduct contract manufacturing of other companies' products. In recent years, while generic drug use has increased, many generic drug manufacturers have been in difficult circumstances in terms of profitability due to price system revisions, a decrease in blockbuster products (popular original drugs whose patents have expired), and stricter quality assurance. There are also cases in which manufacturers are hesitant to make new capital investments.
Group synergy
Pharmaceutical manufacturers (other companies)
Products manufactured by other companies / In-licensed products
Contract manufacturing | |||||||||
/ Sales alliance prod- | |||||||||
Nihon Generic | uctsing / Sales alliance | Pharmaceutical | |||||||
products | |||||||||
manufacturers | 3 | ||||||||
Choseido | Pharmaceutical | ||||||||
(other companies) | |||||||||
Due to these factors, demand for contract manufacturing is increasing, and the Group is receiving more requests, which it is capable of accommodating. The Group is actively promoting contract manufacturing, and is committed to expanding its efforts. Choseido Pharmaceutical's Kawachi Plant is dedicated to producing cephem antibiotic formulations, which has the largest market share in Japan and it will continue to further expand its market share with unrivaled originality.
Sales alliance products | Sales of items (Nihon Chouzai licensed products) that the Group holds manufacturing and |
sales approval for to other companies. Other companies sell these as their own products. | |
1 | Internal | |
Nihon Chouzai | sales | |
pharmacies |
External | Hospitals, | 2 | |
Wholesale/ | sales | ||
clinics, other | |||
Sales companies | |||
pharmacies | |||
Our Tsukuba No. 2 Plant has started operation and freed up our production lines, making it possible for us to actively incorporate sales alliance products. As of December 31, 2019, we have more than 460 in-house licensed products. As we have achieved an assortment of products that can support inquiries from other pharmaceutical manufacturers, manufacturing of sales alliance products is increasing.
Expected synergistic effects with Nihon Chouzai's pharmacy opening strategy
Internal sales increased in conjunction with the opening of own pharmacies and M&A in the dispensing pharmacy business.
Internal | Convert generic drugs dispensed at Nihon Chouzai pharmacies into Nihon Generic and |
sales | |
Choseido Pharmaceutical products | |
Convert generic drugs by other companies dispensed at Nihon Chouzai pharmacies into in-house products. When convert- | |
ing original drugs or long-listed drugs into generic drugs, we will promote sales by converting them into in-house products | |
in a timely manner. | |
Increasing new adoption cases | |
We will strengthen external sales by increasing generic drug adoption at dispensing pharmacy chains other than Nihon | |
Chouzai, major university hospitals, and company clinics, and raising awareness within the industry. | |
External | |
sales | Formulary |
Based on the increasing momentum to promote formularies, establishment of formularies has become more active, | |
especially in large hospitals. As such, we expect that the number of generic drugs in use will increase dramatically. We will | |
develop a system to respond to this trend and act accordingly. |
Optimization of Production Resources
Securing more contract manufacturing/sales alliance business
We are promoting effective use of each plant within the Group in order to secure more contract manufacturing and sales alliance business. By transferring the production of large-lot products to the completed Tsukuba No. 2 Plant, we are now utilizing the free lines available at the Tsukuba Plant and Choseido Pharmaceutical's plants, and have laid a foundation that will allow us to take on new businesses such as the contract manufacturing and sales alliance businesses.
Choseido | Tsukuba Plant |
Pharmaceutical | |
Medium | Medium |
Plant characteristics | |
Nihon Generic | Small to medium scale |
Tsukuba Plant | production |
Tablets | |
Nihon Generic | Medium to large scale |
Tsukuba No. 2 Plant | production |
Tablets | |
Choseido | Small to medium scale |
Pharmaceutical | production |
Headquarters Plant | Tablets, capsules, powders |
Large | Large | ||
Small | Small | ||
Entry into the over-the-counter (OTC) drug business | |||
This is a business that started new initiatives expecting synergistic Group effects. Following the launch of hair growth agent, Minoxidil | Tsukuba | ||
Lotion 5% JG in December 2018, we launched Loxoprofen Tablets JG, antipyretics/analgesics, in January 2020 as our second OTC drug. | |||
No. 2 Plant | Medium Small | ||
In the future, we plan to continue the PDCA cycle, starting with selling at Group dispensing pharmacies. | |||
Small | Large | ||
Medium | Large | Large | |
Choseido
Pharmaceutical
Headquarters No. 2 Plant
Choseido
Pharmaceutical
Kawachi Plant
Small to medium scale production
Tablets, capsules, powders
Small to medium scale production (Plant exclusively for manufacturing antibiotics)
Tablets, capsules, powders
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
Chouzai Nihon supports that Base
section Data
37 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 38 |
Pharmaceutical Manufacturing and Sales Business
Growth Strategy
achieving towards Growth and prescribing
Profitability Improvement
Fixed costs peak out, profitability improves further
Anticipating policies to reduce medical costs, such as promotion of generic drug use and annual NHI drug price revisions, as well as changes in the labor environment, such as work-style reforms, we aim to gain greater production volume and improve profitability by making full use of existing resources.
Fixed and variable cost improvements are the pillars of profitability improvement.
R&D
R&D that maximizes group synergy
Efficient R&D focused on items that are widely used at Nihon Chouzai pharmacies
The ability to predict expected sales volumes at Group dispensing pharmacies in advance enables profit and recovery forecasting, achieving efficient development planning.
drug of separation true services dispensing
Fixed cost
improvement
Profitability
improvement
Variable cost improvement
1 Increase production volume to meet higher market demand
In the generic drug market, strong promotion policies have been set forth toward reaching the government target of 80% volume-based market share for generic drugs, with the deadline approaching at the end of September 2020. In ad- dition, considering the movement toward formularies already underway primarily at large hospitals will expand to regional formularies in the future, we highly expect the generic drug market to further expand and its production volume to increase, even after the volume-based target is reached.
- Increase production volume to meet higher market demand
- In-houseproduction initiatives
- Manufacturing process improvement activities
- Waste loss reduction activities
2 In-house production initiatives
We are working on in-house production at Nihon Chouzai plants, with a focus on items that are contract manufactured at other companies. Although it does not directly contribute to sales growth as these items are already being sold to dispensing pharmacies in and outside of the Group and to other medical institutions, it will lead to improvements in the operating rate and gross margin ratio at our Group plants.
Even for items on new NHI drug price listings whose patents have expired, the amount used at Group dispensing pharmacies can be projected with certainty. Therefore, we have established a system in which other pharmaceutical manufacturers can take part in joint development with peace of mind since development is carried out according to a plan.
Because we must meet the needs of pharmacies, our largest customers, we conduct R&D activities covering a wide range of items not biased towards any particular disease. By dealing with many medicines, in the end, we can accumulate the latest know-how and technology, resulting in a positive cycle.
Research facilities of Nihon Generic and Choseido Pharmaceutical utilize their respective expertise and know-how
Efforts to minimize additional equipment investment by carrying out development appropriate for each plant
In June 2018, we consolidated the laboratories of Nihon Generic, which were previously dispersed in two locations, into the Tsuku- ba Research Institute. As a result, our laboratories are at the two bases of Nihon Generic and Choseido Pharmaceutical, establishing a system that allows for efficient product development by using the expertise and know-how that each laboratory specializes in.
As the increase in number of items for sale has reached a certain level, we are now increasing the proportion of items approved in-house, and are actively promoting R&D.
Nihon Generic Tsukuba Research InstituteChoseido Pharmaceutical Tokushima Research Institute
performance Business
Chouzai Nihon supports that Base
3 Manufacturing process improvement activities
We are taking steps to improve fixed costs with efficient manufacturing by setting specific goals for the detailed review and improvement of the manufacturing process and continuously using the PDCA cycle. As part of our improvement activities, we are also focusing on employee education and creation of a mechanism that is able to maintain improvement activities while sustaining employee motivation, with the goal of creating an overall culture in which improvement activities can be enjoyed.
4 Waste loss reduction activities
Following our efficient production plans in our plants, we are working to reduce wasteful product disposal by producing the necessary products in the right amount when needed. Regarding sales, we have conducted improvement activities while being conscious of the cash conversion cycle (CCC). With a wide gap between production volume and sales vol- ume, we have drawn up a supply chain management (SCM) strategy tailored to the characteristics of each item, leading to waste loss and more efficient operations.
R&D expenses (consolidated basis) | No. of items sold | |||
(billions of yen) | (Items) | Products approved in-house | In-licensed productss | |
4.0 | 800 |
681
3.0 | 2.7 | 2.7 | 2.9 | 600 | ||||||
2.3 | 373 | 466 | ||||||||
2.0 | 1.7 | 1.9 | 400 | |||||||
129 | ||||||||||
1.0 | 200 | |||||||||
244 | 215 | |||||||||
0.0 | 0 | |||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | (FY) | 2012 | 2019 | (FY) |
section Data
39 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 40 |
Pharmaceutical Manufacturing and Sales Business
Quality Control
Fiscal 2019 quality objectives
1) Maintenance of approval documentation that is suited to the manufacturing circumstances
Annual inspection of approval documentation, compliance check via GMP inspections, assessment of the appropriateness of the change of management practices
Appropriate implementation of the three roles of manufacturers and marketers, appropriate application of revisions to the Japanese Pharmacopoeia
Environment (Environmental Initiatives)
The Pharmaceutical Manufacturing and Sales Business reforms plant buildings it obtains from other companies and installs the latest equipment to ensure that CO2 emissions, fresh-water usage, and electrical power usage are kept to a minimum. Newly constructed plants are designed from the planning stage to be environmentally friendly. We will continue to make investments and take initiatives to reduce our impact on the environment.
Major investments and effects in or prior to fiscal 2018 | Major investments and effects in fiscal 2019 |
drug of separation true achieving towards Growth services dispensing and prescribing
2) Practical application of quality risk management
Product and manufacturing risk assessment, examination of validation procedures, etc. associated with the change of management, implementation of appropriate risk management practices when selecting new bulk drug and additive manufacturers
3) Improvements to the system of providing information regarding quality to medical institutions and patients
Improving the clarity of information that needs to be provided as well as the procedures for gathering, transmit- ting, releasing, and managing such information and entering into contracts related to the provision of information about in-licensed products
4) Continuous improvement to realize solid quality system
Increasing awareness of compliance, optimizing the quality system, adopting a GMP operations support system, planning and promotion of QA conferences with Nihon Generic and Choseido Pharmaceutical
Power consumption reduced at Nihon Generic Tsukuba No. 2 Plant and Choseido Pharmaceutical Headquarters No.
2 Plant by decreasing chiller load with mist spray cooling using plant wastewater
Change to LED lighting at Nihon Generic Tsukuba Plant and Tsukuba No. 2 Plant and Choseido Pharmaceutical Tokushima Research Institute)
Decreased air conditioning load by adopting low air flow- type draft chamber at Nihon Generic Tsukuba No. 2 Plant
Adoption of ultra-high-rate transformer capable of reducing loss by about 35% for top runner transformers at Nihon Generic Tsukuba No. 2 Plant
Introduced simultaneous cold and heat pump system at Choseido Pharmaceutical Headquarters No. 2 Plant
Decreased chiller load with mist spray cooling using plant wastewater and reduced liquefied petroleum gas
Installed solar panels at Choseido Pharmaceutical Headquarters No. 2 Plant
Reduced the amount of power taken from the grid by using power generated in the building
performance Business
Market Environment
Fiscal 2018 | Fiscal 2019 |
Rectify excessive discounts based on Revised | Comply with Revised Distribution Guidelines |
Distribution Guidelines | Distribute pharmaceuticals at reasonable prices |
Distribute pharmaceuticals at reasonable prices | |
Optimize wholesale prices and supply prices | |
Optimize (raise) supply prices | |
Optimize NHI drug price gains | |
Optimize (compress) NHI drug price gains | |
Distribution channels for medicines for medical treatment in Japan
CO2 emissions
(kt-CO2/production volume unit of 100 million tablets)
1.61.59
1.5 | ||||
1.4 | 1.38 | |||
1.33 | 1.33 | |||
1.3 | ||||
1.2 | ||||
0 | ||||
2016 | 2017 | 2018 | 2019 | (FY) |
Fresh water consumption or water consumption
(thousand m3/production volume unit of 100 million tablets) 8.0
7.5 | ||||
7.12 | ||||
7.0 | ||||
6.71 | ||||
6.5 | 6.38 | |||
6.0 | 5.90 | |||
0 | ||||
2016 | 2017 | 2018 | 2019 | (FY) |
Electric power consumption
(thousand kWh/production volume unit of 100 million tablets) 2,500
2,423.26 | |||||
2,300 | |||||
2,100 | 2,061.81 | ||||
1,900 | 1,923.861,952.21 | ||||
1,700 | |||||
0 | |||||
2016 | 2017 | 2018 | 2019 | (FY) |
Chouzai Nihon supports that Base
Drug | Wholesalers | Hospitals | Patients | |||
manufacturers | Wholesale | Supply | Pharmacies | Sales | ||
price | price | price |
NHI drug price (set by country)
Amount recycled
(t/production volume unit of 100 million tablets)
22.021.63
20.0 |
18.0 |
16.0 |
Amount of waste material, etc.
(t/production volume unit of 100 million tablets)
50.048.67
40.0 | 41.48 |
30.0 |
In FY2018, all indicators increased due to the operation of Nihon Generic's Tsukuba No. 2 Plant.
In FY2019, all indicators decreased due to the sale of the Kasukabe Plant in March 2019. Meanwhile, the fresh water consumption (water consumption), the electric power consumption, the amount
section Data
Revised Distribution Guidelines
(Started using from April 2018)
- Establish appropriate market prices in order to eliminate negative primary margin on sales
- Promote early settlement and unit price-based/individual product transactions
- Revise discount negotiations
Setting of appropriate wholesale price/rebate, etc.
(Notice as of October 3, 2018, Economic Affairs Division, Health Policy Bureau, Ministry of Health, Labour and Welfare)
- Set an appropriate rebate that assesses the wholesale function
- Reflect the wholesale price's corrected rebate item in the wholesale price
14.0 | 14.64 | |||||||||
12.0 | 12.24 | |||||||||
10.0 | 10.42 | |||||||||
0 | ||||||||||
2016 | 2017 | 2018 | 2019 (FY) |
22.03 | 18.90 | ||||||||
20.0 | |||||||||
10.0 | |||||||||
0 | |||||||||
2016 | 2017 | 2018 | 2019 (FY) |
of waste material, etc. per production volume unit of 100 million tablets increased due to an increase in production volume at the Tsukuba No. 2 Plant. As a result, the overall decrease was slight.
41 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 42 |
Medical Professional Staffing and Placement Business
Medical Resources, Co. Ltd.
Medical Professional Staffing and Placement Business
Strengths of Medical Resources | of separation true achieving towardsGrowth services dispensing and prescribing | |
Providing high-value-added services to job providers (medical institutions | ||
and companies) and job seekers (doctors and pharmacists) as a | ||
comprehensive human resources service company for the medical industry | ||
In fiscal 2019, we continued a shift from staffing to placement | high demand for human resource placement. Thanks to our shift | drug |
in our core pharmacist business. This is to gain the initiative in | from staffing to placement, on a profit basis, operating profit | |
anticipation of demand for placement of high-quality pharmacists | significantly increased to 125.2% year-on-year due to increased | |
increasing to higher levels than ever due to the expansion of the | referrals of pharmacists, doctors, and other medical professionals, | |
scope of work for pharmacists to include family pharmacists and | despite net sales decreasing to 97.2% year-on-year. | |
the like, while demand for dispatching pharmacists is expected to | While we do expect progress in work style reforms and major | |
decline relatively. In the dispensing pharmacy industry, the majority | changes in the social environment surrounding medical profes- |
Net sales (millions of yen)
11,970 | 13,083 | 12,721 | ||
10,500 | ||||
8,934 | ||||
'15 | '16 | '17 | '18 | '19 (FY) |
Sales | Operating profit | Composition |
composition | (millions of yen) | of Operating |
4.5% | Operating profit | profit |
14.3% | ||
to net sales (%) | ||
17.9 | 16.3 | ||||
15.4 | 14.6 | ||||
11.3 | |||||
1,599 | 1,710 | 1,842 | 1,479 | 1,851 | |
'15 | '16 | '17 | '18 | '19 | (FY) |
of pharmacies are part of small- to medium-sized chains or pri- | sionals in the future, we will respond swiftly to these changes and | Business | ||||
vately owned, so many pharmacies experience difficulty in recruit- | achieve sustainable growth by utilizing the synergy of having a | |||||
performance | ||||||
ing pharmacists, creating a market environment with continuously | dispensing pharmacy business among our group companies. | |||||
Matching Quality Underpins Customer Satisfaction | ||||||
We have continuously worked to improve matching quality for | many other evaluation items, including soundness of business | |||||
many years through detail-oriented counseling. As a company | and a management system for compliance. Furthermore, 99% of | |||||
that handles important personal information, we have also ac- | our net sales is earned from staffing and placement for pharmacy | |||||
quired Privacy Mark certification, and have realized a high-quality, | chains not owned by Nihon Chouzai and privately owned phar- | |||||
highly-reliable staffing and placement business. Acquiring these | macies. This business contributes to achieving a true separation of | Base | ||||
certification marks is proof not only of the quality of our place- | drug prescribing and dispensing services by sending high-quality | |||||
ment and staffing services, but also of the fact that we satisfy | pharmacists into the world. | that | ||||
Placement Business | Staffing Business | supports | ||||
Internal sales 0.7% | ||||||
Job Seekers | Employment | Employment | Job Seekers | Nihon | ||
Brokerage | Contract | Contract | Matching | |||
Ratio of | Chouzai |
Medical Resources by the Numbers
We believe communication with job seekers (medical profes- sionals) and job providers (medical institutions and companies) is
meet the demands of both job seekers and job providers in order to earn their trust and satisfaction.
Job Providers | Job Providers | sales | ||||||||
The Company | The Company | |||||||||
Recruiting | (hospitals, pharmacies, | Recruiting | (hospitals, pharmacies, | External sales 99.3% | ||||||
drug stores) | drug stores) | |||||||||
Application | Application | |||||||||
extremely important for our human resource business. Medical Resources takes a serious stance toward face-to-face meetings with job seekers and job providers, and having placed facilities na- tionwide, we have built a system for meeting and consulting with them in person. We have achieved sustainable growth and high profitability by finding nuanced needs that are difficult to communicate only by telephone or in writing, and offering proposals that
Growth | Profitability | Medical Professional | No.1 |
Staffing and | |||
Placement Business |
Average growth over | Operating | Estimated by Nihon Chouzai based on |
an 8-year period | margin | aggregated results of the fiscal 2019 Worker |
18.1% | 14.6% | Dispatching Undertaking Business Report |
Survey by Japan Marketing Research Organization (Survey conducted in July 2019) |
Growth Strategy
Ensuring high profitability and creating a more balanced business portfolio by expanding our placement business
Our company is the strongest in the industry when it comes to pharmacist staffing. At the same time, we are transitioning to-
Going forward, we will capture the increased demand for
family pharmacists, grow our pharmacist placement service, and expand our placement business for doctors, nurses, and registered pharmaceutical medicine sellers, so as to realize even higher
section Data
Only 17 companies in Japan have acquired all three types of | Certified Companies | Extracted companies that have |
acquired all three types of certification, | ||
certification. We provide highly reliable staffing services. | Excellent Job Placement Agency | from among the following certified |
certification: 41 companies | companies (as of January 14, 2020) | |
Excellent Temporary Staffing | JIPDEC | |
Three reassurances of Pharma Staff | Agency certification: 174 | List of Excellent Job |
companies | Placement Agencies | |
Privacy Mark: 16,413 companies |
ward a more balanced business portfolio, while aiming to achieve high profitability, by expanding our placement business.
growth.
We provide three reassurances to support the successful career moves of all pharmacists. | List of Excellent Temporary | |
Staffing Agencies | ||
Gross profit ratio
Reference: With family pharmacists, long-term support is required in order to understand the medication status (including all medication, such as prescrip-
Acquired
Privacy Mark
As a company certified with the Privacy Mark, we recognize the importance of personal information entrusted to us by customers, and thoroughly manage and operate our customers' information in accordance with our privacy policy.
Excellent Job Placement Agency certification
We have been certified as a company that complies with the Conduct Guidelines established by the Excellent Job Placement Agency Recommendation Council, and that meets certain criteria including stability of management, thorough compliance with laws and regulations, and proper operation of business.
Excellent Temporary Staffing
Agency certification
We are certified as a company that not only complies with laws and regulations, but also provides reassuring services to both temporary staff and the companies where they work, such as support for temporary staff's career development, ensuring better working environments, and preventing problems at the companies where they work.
(%) | Placement Businesse | Staffing Business |
100 |
57.6% | 51.9% | 41.0% | |
50 | |||
42.4% | 48.1% | 59.0% | |
0 | |||
2017 | 2018 | 2019 | (FY) |
tion drugs, OTC drugs, etc.) of patients, continuously monitor leftover medicine and the appearance of side effects, and provide appropriate guidance. Therefore, family pharmacists must meet the following requirements.
Requirements for family pharmacists
- Possess at least three-years' experience as an insurance pharmacist
- Works at least 32 hours per week in said insurance pharmacy
- Has a tenure of at least one year in said insurance pharmacy
- Received training certification from a training certification system that is approved by the Council on Pharmacists' Credentials
43 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 44 |
Medical Professional Staffing and Placement Business
Business Development
Pharmacist Business
Doctor Staffing Business
separation true achieving towards Growth dispensing and prescribing
Strengths of the pharmacist business | |||
Brand strength | Face-to-face | Ability toattract | Education |
meetings | customers | ||
Brand strength
Medical Resources is a human resources business operated by Nihon Chouzai, a company with massive brand power in the medical industry and known for its high education level. It provides high-quality content to temporary staff and pharmacist placements, and it supplies high-value-added human resources. We maintain our brand strength among the pharmacies to which we dispatch or introduce employees, such as by providing business support plans and high-value-added services that leverage the pharmacy management expertise of the Nihon
We began full-scale efforts in our doctor staffing business since fiscal 2017, and started to expand nationwide in April 2018. Developing a dispensing pharmacy business within the Group gives us the advantage of being able to quickly identify the needs of doctors opening new locations. We are also expanding our placement business for doctors by demonstrating the synergy from collaboration with the MC-Mentaio (medical center/near the station and in the shopping district) Sales Division, which develops pharmacies operated by our dispensing pharmacy business.
In fiscal 2018, we made an upfront investment in anticipation of business expansion, by adding four new facilities, doubling the number of sales staff, and conducting advertising campaigns. This caused a temporary increase in SG&A expenses, so our Medical
Professional Staffing and Placement Business posted increased revenue but decreased profit. However, looking at net sales in our doctor staffing business alone, net sales increased to a substantial 765% compared with fiscal 2016, when we had yet to launch full-scale efforts.
In fiscal 2019, we began to see the effects of upfront investments made in fiscal 2018, and our doubled sales staff acted as a substantial driving force that contributed to the growth of net sales. As a result, net sales significantly increased to 336% of fiscal 2017. In addition, to secure more job seekers, we bolstered our efforts to secure job offers, resulting in a significant increase to 148% compared with fiscal 2018. We are developing an environment that can meet the needs of job seekers.
drug of services
performance Business
Chouzai Group.
Four additional facilities added in | Contributing to net sales in | Increase in the number of job |
fiscal 2018 | fiscal 2019 | offers in fiscal 2019 |
Face-to-face meetings
We have established facilities nationwide, where we meet with medical professionals and offer face-to-face career outplacement counseling, placing great importance on information that we can obtain by speaking with them directly. It is important that we identify not only working conditions, but also working environments and the needs of job seekers, so we can present them with the ideal job offers.
Work style has a great impact on people's lives, so we provide a sense of security to job seekers with our brand strength, and earn their trust by speaking with them directly.
For job providers, we provide detailed information about the latest job change market and high matching quality, always working to ensure a win-win situation for both job seekers and recruiters at job providers.
High matching quality
Staffing and dispatching
STEP 1 | STEP 2 | STEP 3 | STEP 4 | STEP 5 |
Registration | Individual | Job | Start of | Post-employment |
interview | introduction | employment | follow-up | |
Introdtuction | ||||
STEP 1 | STEP 2 | STEP 3 | STEP 4 | STEP 5 |
Registration | Individual | Job | Application/ | Job offer/ |
interview | introduction | interview | Join company | |
Net sales trends measured with the fiscal | (Cases) | |||||||
Sales facilities (new) | 2017 level set as 100% | 12,000 | ||||||
Sales facilities (existing) | (%) | Net sales | ||||||
400 | 10,000 | |||||||
336 | 148% | |||||||
8,000 | ||||||||
300 | ||||||||
6,000 | ||||||||
200 | 183 | |||||||
4,000 | ||||||||
100 | 100 | 2,000 | ||||||
0 | 0 | |||||||
2017 | 2018 | 2019 | (FY) | 2018 | 2019 | (FY) |
Chouzai Nihon supports that Base
Ability to attract customers
Regardless of whether they are currently seeking a new job, pharmacists are highly motivated people, and many of them keep their antennas tuned to new information on a daily basis. Furthermore, because pharmacists are required to have a high degree of specialized knowledge as medical professionals, the need for websites that provide useful information on pharmacist work, such as the one shown on the right (Pharma Labo), is increasing year by year. By responding to these circumstances and keeping up with
Registered Pharmaceutical Medicine Sellers Staffing Business
pharmacists' careers, we are working continuously to be an ever more trusted medium.
Demand for registered pharmaceutical medicine sellers, who are qualified to sell Type 2 and Type 3 drugs from among over- the-counter (OTC) drugs, has increased, and is growing in many places, including drug stores and convenience stores, which are
demand, the market size is continuing to expand. We have newly begun developing this business in fiscal 2018, and in fiscal 2019, our sales growth rate rose significantly to 371%. Since we updated our website in March 2020 and prepared for it to be used by
section Data
Education
We provide high-quality content to temporary staff and pharmacist placements, and supply high-value-added human resources. The advanced education system established at pharmacies in the Nihon Chouzai pharmacy business is a strength unmatched by other companies.
Content for | JP Learning | JP Learning is an e-learning course that allows one to obtain the credits needed to acquire a |
pharmacists | certified pharmacist training credential. The course provides more than 1,000 pages of | |
enhanced content. | ||
Seminars for | We hold seminars for pharmacists several times a year to learn the required dispensing and | |
pharmacists | medical knowledge and industry trends. | |
Retention | This program is held as part of the health and welfare benefits for dispatched workers. We also | |
program | hold money seminars as well as other seminars for working women. | |
Yaku-Tore | A dispensing textbook that has been edited by Nihon Chouzai is provided as an app for | |
smartphones. It also deals with prescription dispensing fee revisions. | ||
Content for | Management | The pharmacy management seminar teaches Nihon Chouzai's management know-how. |
pharmacies | seminars | |
Business | This program for corporations solves various problems in pharmacy management with seminars |
support plan and practical training.
expanding their handling of OTC drugs. Along with the growing
Website update
more job seekers, we will aim for further expansion in the future.
Net sales trends measured with the fiscal 2018 level set as 100%
(%)
400
300
200 | 371% | ||
100 | |||
0 | |||
2018 | 2019 | (FY) |
45 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 46 |
Medical Professional Staffing and Placement Business
Business Development
Nurse Staffing Business
In our nurse staffing business, we updated our website in August 2019, making it easier to use for job seekers. This business is shaping up to have a strong start, and we will continue to work toward further expansion.
Market Environment
Market Size for Pharmacists, Doctors, and Nurses
The market size of human resource placements in fiscal 2018 was | we can expect further expansion of our placement business. Go- |
16.6 billion yen for pharmacists, 19.7 billion yen for doctors, and | ing forward, we will continue to take advantage of the strengths |
33.4 billion yen for nurses. There is still more room for growth in | we have built over time, including our brand strength, reliability, |
our pharmacist placement business, and the market size for doc- | and ability to meet face-to-face with job seekers and job provid- |
tors and nurses are much larger than even that for pharmacists, so | ers, so that we can further expand our business. |
Market size for pharmacists, doctors, and nurses | |||||||||
(billions of yen) | FY2015 | FY2016 | FY2017 | FY2018 | Number of pharmacists (persons): | ||||
40.0 | |||||||||
311,289 (2018) | |||||||||
33.0 | 32.0 | 32.5 | 33.4 | Number of doctors (persons): | |||||
30.0 | 327,210 (2018) | ||||||||
Number of nurses (persons): | |||||||||
1,660,071 (2016) | |||||||||
Number of pharmacies (pharmacies): | |||||||||
20.0 | 17.4 | 19.7 | 59,138 (2018) | ||||||
16.1 | 16.6 | 15.4 | 16.6 | Number of Hospitals (institutions): | |||||
13.0 | 8,372 (2018) | ||||||||
12.2 | |||||||||
Number of Clinics (institutions): | |||||||||
10.0 | |||||||||
102,105 (2018) | |||||||||
Sources: | |||||||||
0 | 2018 Overview of Statistics on Doctors, Dentists, and | ||||||||
Pharmacists (Number of pharmacists and doctors) | |||||||||
Pharmacists | Doctors | Nurses | |||||||
Japanese Nursing Association, Nursing Statistical Data | |||||||||
(Number of nurses) | |||||||||
Source: Ministry of Health, Labour and Welfare, Employment Placement Business Report, Worker Dispatching Undertaking Business | Overview of 2018 Medical Facility (Dynamic) Survey & | ||||||||
Report compiled by Nihon Chouzai based on various figures. | Hospital Reports (Number of pharmacies, hospitals, and | ||||||||
clinics), Handbook of Health and Welfare Statistics |
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business | |
3 thatBasesupports Nihon Chouzai | |
Chouzai Nihon supports that Base |
49 | Human | |
Environment* | section Data | |
59 | Social |
61 Governance Corporate Governance
65 Message from Outside Directors and Audit and Supervisory Committee Members
67 Board of Directors
* See page 42 for examples of environmental initiatives
47 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 48 |
Human (Investment in Human Resources)
At Nihon Chouzai, we consider the people who underpin a company as critical resources for management, and we actively invest in their recruitment, training, evaluation and engagement. Among these initiatives is our effort to strengthen training and organizational strength with an eye toward achieving the dramatic business expansion set forth in our long-term vision for 2030.
Long-Term Vision
To Dramatically Expand the
Dispensing Pharmacy Business
Human
To realize a virtuous cycle with human resources and the organization's management, we are undertaking a range of initiatives in support of dramatically expanding the Dispensing Pharmacy Business, one of the key issues of our long-term vision for 2030.
Recruitment
Recruiting human resources, starting with pharmacists, is critical. These are the people that offer high-quality pharmacy services and heighten our competitive capabilities, thus leading to the organizations' expansion. We are striving to strengthen our ability to recruit pharmacists, certified dieticians, medical administrators and administrative department personnel, both as new graduates and mid-career hires, in order to respond to changes in the external environment such as revisions to laws and industry restructuring.
Strengthening Recruitment of Newly Graduated Pharmacists
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
Organization
Action with an enterprising spirit Focus on overall optimization
High sense of ethics and professionalism Strongly goal oriented
Human resources
Performs proactively
Acts honestly and sincerely with others Thinks positively about change
Original and ingenious for customer satisfaction
Person-to-person work is becoming a common part of the duties performed by pharmacists more than ever, whether it is family pharmacists, for at-home medical care, or throughout the range of specialized fields. We believe that securing high-quality human talent is a key issue for enabling us to implement our growth strategy to survive as the industry undergoes reconstruction. Although the number of pharmacists hired decreased from the previous fiscal year due to the raising of our hiring standards, we are hiring close to 400 pharmacists each year. In addition, in the "Mynavi/Nikkei 2021 popularity rankings of Japanese companies among job-seeking students graduating in 2021" targeted at university and graduate school students scheduled to graduate in March 2021, we came number one in the dispensing pharmacy and drugstore industry for three out of the four categories related to our company.
No. 1 in the industry in
three categories!
Mynavi/Nikkei 2021
popularity rankings of Japanese companies
among job-seeking students graduating in 2021
Medical/Welfare/Dispensing | ||
2nd overall | 1st in industry | |
Pharmacy | ||
Female Science Majors | 15th overall | 1st in industry |
Combined Science Majors | 43rd overall | 1st in industry |
Number of pharmacists | 377 |
recruited for fiscal 2020: |
- Extracted by the Company from the Nihon Keizai Shimbun Part 2 dated April 8, 2020
Chouzai Nihon supports that Base
Human resources, Organization management
Promoting women's | Strengthening recruitment of | ||
advancement in the | newly graduated pharmacists | ||
workplace | Engagement | Recruitment | Conveying information with |
Health management | regard to workplace and careers | ||
Diversity and inclusion | Internship |
Pharmacist Stage System | New employee training | ||
External pharmacist | |||
Evaluation | Training | Leadership training | |
credentials | |||
Customer Satisfaction (CS) | Managerial talent training | ||
Award |
Conveying Workplace And Career Information
We created a recruitment website for each occupational category and provide abundant information with regard to employee interviews and careers. Also offered is a rich variety of contents, such as movies, that clearly demonstrate the daily routine of employees. We have also created an official LINE (popular social media app) account, in an effort
to proactively convey information to pharmacy students.
Internship
We offer internships in all of our occupational categories, providing opportunities for interns to experience working and career opportunities at Nihon Chouzai. This also provides a venue where interns can interact with employees. A total of approximately 1,500 people participated
in this internship program for pharmacist students for the year.
section Data
49 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 50 |
Human
Development of Human Resources
Regardless of what position a person fills, at the heart of Nihon Chouzai's stance on human resources is the "medical profes- sional." These are individuals that possess a keen awareness of responsibility to provide medical care and a sense of mission, while responding to the growing medical needs that confront an ultra-aging society. We aim to develop human resources that aggressively work to find solutions to social issues, such as keeping medical costs in check, thereby becoming an essential presence for patients, their families and the local community while contributing to healthcare in Japan and to society. Conducted by job type as well as grade seniority, we offer training by individual topic and career planning, and we provide opportunities for each and every employee to acquire necessary knowledge and skills.
Framework of education and trainingGrade-specific training OJT Training by occupational categorye-learning
General position | ||||||||
Pharmacists | Medical administrators | Certified dieticians | ||||||
(administration, sales) | ||||||||
Training for New Hires
We endeavor to provide new employees with meaningful training that will form their foundation as members of society and medical professionals. Training programs offer practical content and focus on role playing and discussions, and seek to sharpen the knowledge and skills needed in each occupational category.
Training for Newly Assigned Store Managers
We actively exchange opinions through group work between store managers tasked with the management of their businesses, covering a range of topics including their roles as leaders, guidance of subordinates, and marketing aimed at enhancing business performance. We aim to enhance their awareness and abilities as managers, while also placing an importance on creating horizontal connections within the Company.
drug of separation true achieving towards Growth services dispensing and prescribing
Mid-levelSupervisor level
Coaching
Management seminars Training for supervisors
Mid-level employee training
Training to promote active participation by women
Training for pharmacist
directors
Training for line chiefs
Training for store managers
Training for newly
assigned store managers/ supervising pharmacists
University hospital
practical training system
Training for
at-home medical care
Health | training | Pharmacist Stage System JP-STAR |
attend |
Excellent service training |
Leadership training for |
medical administrators |
performance Business
Beginner-level
Oben-Neben System (providing guidance)
Oben-Neben training
2nd-year employee training
Follow-up training for
new employees
Oben-Neben System
Group training for new hires
Sub-leader training
Oben-Neben System (providing guidance)
2nd-yearfollow-up training
Oben training
Follow-up training for new
employees / Review training for pharmacists hired in mid-career
Oben-Neben System
Group training for new hires /
Introductory training for
pharmacists hired in mid-career
Support to | Support Pharmacy | |
Support for acquisition of certified | pharmacist training credentials | 15-step-up training |
Education Information | |||
Department portal site | |||
& virtual classroom | Oben-Neben System | ||
Skill-enhancement text | (providing guidance) | ||
7-step-up training | Oben training | ||
Periodic training for | Follow-up training for | ||
medical administrators | new hires | ||
Follow-up training for | Oben-Neben System | ||
medical administrators | Skill enhancement training | ||
Oben-Neben System | |||
for certified dieticians | |||
Group training for new hires / | Group training for new hires | ||
Introductory training for medical | / Introductory training for | ||
administrators hired in mid-career | mid-career registered dietitians |
Mentor System
This is a program in which third-year employees and their seniors from other departments are paired up for regular mentoring sessions. We have been conducting trials since 2018, and are preparing the system for a full-scale introduction as we expand its scope of coverage.
Management Seminars
This is a next-generation leader training program, in which we invite well-known instructors from outside the Company to provide advice, while each team considers company issues and offers specific recommendations to management. Through the repeated exchanging of opinions within teams while being aware of the issues, we are promoting their growth as next-generation leaders.
Chouzai Nihon supports that Base
Enhancing Training of Increasingly Needed Expert pharmacists Differentiation from Competitors
As the Dispensing Pharmacy Business has already achieved "recruitment of | To the stage | |||||||
1 | for improving | |||||||
high-quality pharmacists," we have moved on to the next step, which is the | quality | |||||||
phase for "high-quality education." We have launched the Pharmacist Stage | Recruit of | |||||||
high-quality | ||||||||
System in April 2018, recommending acquisition of internal credentials. | ||||||||
5 | pharmacists | |||||||
The Company also provides full support so that employees can step up to | 2 | |||||||
acquiring more advanced external credentials. Because hospital training in | Expand | Positive | ||||||
addition to pharmacy work experience is essential for acquiring external cre- | operations | High-quality | ||||||
dentials, we conduct hospital training for over 100 pharmacists each year. | (open phar- | cycle for | education | |||||
macies) | human | |||||||
resources | ||||||||
Training system | 4 | 3 | ||||||
Raise the | ||||||||
Strengthen | ||||||||
(1) 15-step-up training over 5 years, various training | quality of | |||||||
the pharmacy | ||||||||
medical | ||||||||
(2) Pharmacist Stage System (April 2018-) | function | |||||||
services | ||||||||
(3) Support for acquiring external credentials | ||||||||
- Hospital training for over 100 pharmacists per year
Coaching Program
Since fiscal 2017, we have been conducting a coaching program run by an external specialized organization to promote 1-on-1 communication to selected managers. The results are shared to be utilized in communication with stakeholders and subordinate guidance.
section Data
51 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 52 |
Human
Evaluation
Pharmacist Stage System
Nihon Chouzai created the internal Pharmacist Stage System JP-STAR to evaluate and promote the specialized expertise of pharmacists with regard to their knowledge and skills. As requirements to advance to the next higher stage, the pharmacist should acquire disease-specific in- house credentials for the five major diseases the Japanese government targets for priority measures, as well as eight fields including palliative care, at-home medical care and dementia. In addition, it will also be mandatory for the pharmacist to obtain certification for the higher stage with external pharmacist credentials, demonstrating a high level of specialized expertise. Evaluation of the pharmacist's advanced level
Engagement
Diversity & Inclusion
Promoting women's advancement in our workplaces
- from the action plan> At least 30 women in Area Manager positions and Chief positions or higher in administrative departments
drug of separation true achieving towards Growth services dispensing and prescribing
of knowledge, skills and attitude facilitates an increased degree of motivation and enhanced skills.
Pharmacist Stage System JP-STAR (new) | Conclusion of group training for new hires | Prerequisite | Prerequisite | Prerequisite | ||||
Acquisition of certified | Acquisition of health | support pharmacist credentials | ||||||
pharmacist training credentials | Acquisition of certified | pharmacist training credentials | ||||||
Completion of 15-step-up training | ||||||||
Acquisition of in-house initial | One is required | One is required | ||||||
Acquisition of 1 disease credential from among | Acquisition of business practice | |||||||
credentials | ||||||||
(15-step-up, 7 ranks) | the disease-specificin-house credentials (JP-S) | guidance pharmacist A credential | ||||||
or | ||||||||
Acquisition of business practice | or | |||||||
guidance pharmacist B credential | ||||||||
Acquisition of 1 disease credential | or | |||||||
High-rank on the in-house web test | Acquisition of external pharmacist credentials | |||||||
from among the disease-specific | ||||||||
in-house credentials (JP-A) | for pharmacists | (certification designated by the Company) | ||||||
Standard Pharmacist | Specialist Pharmacist | Advanced specialist pharmacist | Highly advanced specialist pharmacist | |||||
15-step-up training | ||||||||
e-Learning training program in which pharmacists learn about 15 educational topics, including |
- Establishing systems
Designing of systems that support the continued employment of female employees who experience childbirth
- Establishing environments (human resources/training)
Provision of information such as training opportunities
for managers and female employees
- Creating "gender-independent career opportunities"
- Establishment of childcare leave/maternity leave system, working time reduction system, various work-life balance support measures
- Promotion of a thorough awareness of the various systems
- Implementation of training for managers
- Provision of training opportunities for female employees
- Active placement of females in positions with historically few women
More female employees, including female employees using the working time reduction system, are assigned to Area Manager and managerial positions.
Percentage of women is increasing in all positions, such as store development and sales.
performance Business
Trainingsystem (existing) | pharmaceutical knowledge and knowledge regarding pharmacy management over a 5-year period | ||||||||||
Group training for new hires | Oben-Neben System (one-on-one guidance) | Oben Training (training in providing guidance to less experienced staff members) | Follow-up training | Sub-leader training | (Training for newly-assigned supervising pharmacists) | Continuous training | |||||
Excellent service training | Training for super- | At-home medical care group | |||||||||
(Training for the purpose of | vising pharmacists | training | |||||||||
improving customer service skill) | Presentations at | University hospital practical | |||||||||
Case analysis & medication | |||||||||||
academic confer- | training system, etc. | ||||||||||
guidance group study | |||||||||||
ences | |||||||||||
1st year | 2nd year | 3rd year | 4th year | 5th year | 6th year | 7th year | 8th year | 9th year | 10th year |
Supporting work-life balance and childbirth/childrearing
We provide support to help employees who have experienced a life event continue on with their jobs. This support is provided through a variety of systems and initiatives that facilitate the balance between an employee's work and personal life.
Nihon Chouzai has many employees that balance both "work" and "child-rearing," creating an atmosphere in which they can cover one another.
Chouzai Nihon supports that Base
Evaluation | Evaluation of acquiring in- | Evaluation of acquiring external credentials (Provision of allowances/ | |||
systems | house credentials (Provision | displaying of credentials on name plates) | |||
of allowances/displaying of | (1) | Accredited Pharmacist of Ambulatory | (4) | Certified Diabetes Medication Therapy Pharmacist | |
credentials on name plates) | |||||
Cancer Chemotherapy | (5) | Board Certified Pharmacist in Palliative Pharmacy | |||
• Advanced specialist pharmacist | (2) | ||||
Board Certified Nephrology Pharmacy Specialist | (6) | Certified Oncology Pharmacist | |||
• Highly advanced specialist pharmacist | |||||
(3) | Nutrition Support Team Professional | (7) | Board Certified HIV Pharmacy Specialist | ||
Customer Satisfaction (CS) Award
More than just a high level of expertise to provide outstanding pharmacy services, we believe it vital to offer outstanding care and to communicate with skill. Through the use of customer satisfaction surveys, we select those pharmacies and staff that excel at providing services, and after evaluating their care and service we recognize them with the JP-CS Award (store award and individual award), and we provide the
1 Various systems
Prenatal/Postnatal leave
Childcare leave: 1 year (available until the child is 2 years old if the child cannot be admitted to a nursery)
Childbirth congratulatory money
Working time reduction for childcare (finishing time can be shortened in 30-minute increments, up to 2 hours per day, until the child enters elementary school)
Nursing leave system (leave may be taken for nursing when a child becomes ill, receiving vaccinations or medical examinations)
Maternity leave system for spouses (in order to encourage male employees to participate in childcare, a leave system is provided separately from paid leave)
Take a look at this !
"Maternity trousers"
We make "maternity trousers" available for expectant pharmacists who are working while protecting their babies until they go on prenatal leave. Since the white garment has a rubber part on the abdomen with less tightening, they can work comfortably, and it also helps prevent cold and swelling in the abdomen and feet.
section Data
JP-CS Role Play Award to those who have demonstrated role playing service to patients. We offer a variety of programs to individual recipients of awards, such as experience to learn hospitality, which provides an opportunity for them to further enhance their skills.
2 Support for work-life balance
Best pharmacy of branch
Award for pharmacies that provide superior service
Every year we select and recognize those pharmacies that have provided superior services. This selection is based on our customer satisfaction survey of patient-supplied questionnaires, followed by recommendations by supervisors and a final check from the person in charge of customer satisfaction.
Best staff of hospitality
Award for staff who provide superior service
Every year we select and honor staff who have provided superior services. Selected pharmacy staff are primarily those who have been highly rated according to patient questionnaires. The supervisor then performs a "blind" check.
Role-play awards
Award staff who have superior care capabilities
The Role Play Award selection process consists of a first-round comprised of 100 participants, which is narrowed down to 20 in the main selection. Performances of care giving to patients are judged. Recipients are selected for the Grand Prize, Outstanding Performance Award in the Pharmacist Category, Outstanding Performance in the Operator Category, the Empathy Award, and Proposal Ability Award.
With the membership-based health and welfare benefits service, a wide variety of menu items that are useful for daily life and holidays are available at a reasonable price. Services such as monthly childcare facility subsidies and childcare facility vouchers are included in the menu, in addition to corporate contracts with babysitter service companies and securing priority admission slots through cooperation with various childcare facilities. We are working to enhance systems that support employees who want to balance their work and raising children.
Cooperation with various | Priority admission for the children of Nihon |
childcare facilities | Chouzai employees |
Admission free-of-charge, other costs | |
subsidized | |
Corporate contracts with | No initial fee or annual fees |
babysitter services | Subsidy program for employees |
Payment of various | Childcare facility vouchers |
subsidies | Monthly childcare facility subsidies |
53 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 54 |
Human
Engagement
3 Work-life balance support project for female employees raising children
In February 2020, we held the second career design training session as the final round of the work-life balance support project for female employees working at headquarters and the Yoko- hama Branch who are currently raising children. The goal of this training was to have participants clarify the direction of their ca-
Amidst rising expectations placed on pharmacies as providers of sustainable medical care, it is becoming ever more important to put in place an environment in which all employees can exercise their abilities and play a role. Workstyle reforms, health management, and diversity and inclusion-it is through these initiatives that we work to support diverse human resources and ways of working and aim to be a highly engaged organization.
of separation true achieving towards Growth services dispensing and prescribing
reers by promoting a more forward-looking vision in the current "child-rearing" stage of their lives, and also to build a network of female employees who are raising children. We hope that the participants will demonstrate their presence in their respective departments and further grow as role models by making the most of the networks cultivated through the year-long efforts.
Feb. 2019 | Mar. | Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. | Jan. 2020 | Feb. |
Work-Style Reform
Planned paid leave system
We have introduced a system whereby employees can take paid leave in a planned manner. This system works to support the taking of paid leave based on an employee's preferences, and it facilitates the creation of an environment in which paid leave can be taken.
Health Management
Influenza immunization subsidy
From fiscal 2018 we have strengthened measures with regard to disease prevention. In addition to the health insurance association providing subsidies to those employees who have received their influenza immunization, Nihon Chouzai also grants a subsidy.
drug
Business
First career design training | Network building support | Second career design training | ||
(February 18, 2019) | (Roundtable discussions: May 21, 2019, November 20, 2019) | (February 5, 2020) | ||
Individual follow-ups by supervisors of participants | ||||
4 | Flexibility of career plans |
We have introduced a system that affords employees flexibility in changing their employment contracts so that they can easily shift from a full-time employee status to a contracted or part-time employee status in accordance with life events and changes in their living envi- ronments. In addition, we have created a system which will enable employees to preferentially return to the Company after they have retired on account of compelling personal reasons, such as marriage, childbirth, child rearing, caregiving, or the work transfer of a spouse.
Retention rate of | No. of Users of Working | No. of Employees Taking |
employees returning | Time Reduction (WTR) | |
Childcare Leave | ||
from Childcare Leave | System | |
210 | ||
99.3% | 361 | |
Fiscal 2019 | Fiscal 2019 | Fiscal 2019 |
Work-Style Reform Committee
We have established a Work-Style Reform Committee so as to address changes in the law and further enhance workplace produc- tivity. This committee follows up with employees who work long hours and responds to issues of work safety and health.
Proactive dissemination of personnel rules to worksites
From the perspective of reducing overtime work and strengthening our efforts to promote the acquisition of paid leave, we are regularly providing opportunities for Area Managers and Store Managers to receive explanations from HR staff, aiming to change mindsets such as the thorough enforcement of attendance rules at worksites.
¥1,500 + ¥1,500 = ¥3,000
(Company subsidy) | (Health insurance | (subsidy total) |
association subsidy) |
Health checkup rate 100%
Fiscal 2019 health checkup rate
*Has achieved 100% health checkup rate every year (since fiscal 2014)
Prohibition of smoking and installation of disinfectant at all sites
Smoking is prohibited at all locations, including headquarters, branches, and pharmacies.
In addition, from the perspective of disease prevention, disinfectants are installed at the entrances and exits of all pharmacies, headquarters, and branches.
performance
Chouzai Nihon supports that Base
Results of Efforts to Promote Women's Advancement in the Workplace
Promoting Hiring of the Disabled
Mid-career Recruitment (career recruitment)
Traditionally, the pharmacist profession has a high ratio of females, and of the pharmacists employed at Nihon Chouzai 64% are female. For that reason we endeavor to support the careers of female employees and raise awareness among management, and take Company-wide efforts to promote their active participation. The roles female employees play has become an important management issue. We are moving forward on providing opportunities for educa- tion, regardless of gender, and nurturing women who will be store managers and supervisors.
Acquisition of the highest level of "Eruboshi" certification
As a result of continuing our efforts to create opportunities for both men and women to play a role in the Company, and with the development of an easy-to-work-in environment for females, in 2018 we obtained Grade 3, the highest level, of "Eruboshi,"* a certification, recognizing excellent companies for the active participation of women, that is based on the Act of Promotion of Women's Participation and Advancement in the Workplace.
Eruboshi mark (Grade 3)
Full-time employee ratio
*Average number of employees based on
8-hour conversion for part-time employees
85.1%
Fiscal 2019
Female employee ratio
72.9%
Fiscal 2019
We employ approximately 100 workers with disabilities. By achieving the rate of 2.29% (as of June 2020), we have surpassed the statutory employment rate. We are expanding relevant occupational areas while promoting active employment.
Expansion of occupational categories
In addition to the traditional occupational categories of pharma- cist, medical administrator and office worker, we are expanding occupational categories, such as employees who are tasked with being the driver when a pharmacist is making a home visit.
Using sign language to provide care and medication guidance
Pharmacists who are deaf provide service at their pharmacies using sign language. In addition, we provide e-learning contents within the Company so that pharmacists can learn the sign language required for providing the pharmacy services needed to assist deaf people.
In addition to hiring new graduates, we are strengthening the career recruitment of human resources required by each de- partment. By acquiring highly specialized human resources from outside, we are not only fulfilling the positions in need of human resource, but also strengthening the expertise of the entire organization and creating new value which is different to existing employees.
section Data
* Eruboshi, or "L Star" (the L represents Lady, Labour and Laudable), is a certification under the Act on Promotion of Women's Participation and Advancement in the Workplace. The Minister of Health, Labour and Welfare (delegated to the Labour Bureau head) grants Eruboshi certification to corporations with an outstanding implementation of their action plan for initiatives to promote the active participation of women. There are five evaluation criteria, namely, recruitment, employee retention, working hours and other work conditions, rate of women in management, and diversity of career progression, with three levels of certification based on the number of criteria met. At Nihon Chouzai we have fulfilled all criteria and have received Grade 3, the highest level of certification.
55 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 56 |
Human
Be
I | n recent years, expectations have risen for the existential value of dispensing phar | |
macies and pharmacists. We believe it is important to think proactively about the | ||
value that Nihon Chouzai can provide as a pharmacy company, and then to act | ||
and disseminate such information to patients and other stakeholders. Expressed in the | ||
Company's policy of "Be Active!" is our hope for employees to take self-driven action | ||
by regarding change as an opportunity. | ||
Active! | - INTERVIEW | |
Responsible for the education of medical administrators, the "faces of the pharmacy"
Ms. Sato (Subsection Chief, Insurance Section, Pharmaceutical Administration Department)
I joined the Company with the hope that I would be able to work for a long time while maintaining a balance between home life and building a career. After gaining experience in medical administration, I am currently engaged in various efforts such as the education and operational enhancement of medical administrators. The project, which spans two years, has finally been expanded to all pharmacies.
I think that medical administrators at a pharmacy are closely tied to patients and can be one of
the reasons that patients choose to come to the pharmacy. Going forward, I would like to be able to provide a path to advance their careers as medical administrators by developing an environment in which pharmacy staff can work with peace of mind.
Profile | Joined the Company in 2004 and worked as a medical administrator at a pharmacy in Tokyo. After experiencing multiple pharmacies, she was |
assigned to the current department. Working on education and streamlining of medical administrator operations and receipt-related operations. |
drug of separation true achieving towards Growth services dispensing and prescribing
Building the corporate brand and enriching life through work
Mr. Ogami (General Manager, Promotion Department and Human Resources Department)
In the past, I have worked in stores with various people as an Area General Manager. Since we have many female employees, we have focused our efforts on initiatives to make an organization where they can foster career awareness while adapting to various life events, such as by creating an environment where it is easy for female employees to take maternity leave and establishing relationships between employees to make it easy to work after returning to work.
Having many employees with children makes an immeasurable contribution to a company. Thanks to their depth of life experience, these employees can earn the trust of many patients, not limited to those of the same generation, and they can work patiently to train the younger generation of employees.
As our company aims to be a "pharmacy of choice," we hope to build a company that our own employees would recommend to their families, and their families would want to support Nihon Chouzai.
Joined the Company in 1996 and worked as a pharmacist at a pharmacy under the jurisdiction of the Sapporo Branch. After working in the Pharma-
Profile ceutical Headquarters in 2009, served as the pharmacist director of the Kyushu Branch and has been engaged in human resource education, store management, and work-style reforms since 2010. Currently concurrently holds the positions of General Manager of the Promotion Department and Human Resources Department at the headquarters.
How I "Be Active! "
Never forgetting the Frontier Spirit, I want to continue to take on challenges in unknown fields. I want the Company to be one that has the brand power we can be proud of, so that everyone offers praise to learn that I work for Nihon Chouzai.
Utilizing manager experience to support the creation of patient-first pharmacies
Ms. Akimoto (Chief, Urafune Pharmacy)
After joining the Company as a new graduate, I was absorbed by the work in front of me. However, at the timing of my 11th year in the Company, I was asked to become an Area Manager. Before I took this position, I was worried. However, since I was assigned by my boss who had overseen me up until that point, I took up the position with a desire to live up to their expectations.
As an Area Manager, in addition to management tasks such as making sure "each staff member performs his or her duties with purpose so they shine upon the stage of the pharmacy," it is also important to build relationships with surrounding medical institutions and related facilities.
It was very rewarding to encourage individual employees to increase their morale and then see them give back to patients as a result. In addition, in order to talk at the same level as people in other occupations outside of the Company, it is necessary to have a thorough understanding of industry topics and pharmacy sites. As I was not aware of such perspectives when I was working inside of the pharmacy, I think that this led to my own personal growth.
Going forward, I would like to continue working to create pharmacies so that Nihon Chouzai will become the pharmacy of choice for patients, medical institutions, and also our employees.
Joined the Company in 1999 and worked as a pharmacist at a pharmacy in Kanagawa Prefecture. Consequently, worked as a Store Manager and
Profile Area Manager. After two maternity and childcare leaves, she has now returned to a pharmacy and is working everyday so that it becomes the pharmacy of choice for patients and one in which employees can shine.
How I "Be Active! "
I always try to behave in a way that makes everyone involved in the pharmacy, including patients and staff, can feel joyful. To that end, I believe it is important to think out what is the best response for patients, understand the situation and feelings of others, and take the initiative in work.
How I "Be Active! " |
I hope that each and every one of us will work with enthusiasm and motivation, and, as a result, we will be able to turn that into the smiles of many people, including our patients.
Working in a general position to consider on-site employees and patients
Mr. Ishii (Unit Head, Sales Promotion Department)
When I first joined the Company, there were few seniors who began in the general position as new graduates, and I could not envision my future career path. I moved to the system department, departments that worked closely with pharmacies, and the sales department, steadily gaining experience. In the departments that worked closely with pharmacies, I learned the attitude of how to think and work for patients, and in the sales department, I was able to get involved in the opening of new pharmacies that patients are happy to use.
Going forward, I will continue to place great importance on employees working on-site at pharmacies, work hard for our patients, and be a model for general position new graduates.
Joined the Company in 2011 as a general position new graduate. In the System Department, to which he was initially assigned, he was in charge of
Profile managing the corporate website and introducing system equipment to newly opened pharmacies. Subsequently, he joined the current department after experiencing the Purchasing Department, the Pharmaceutical Administration Department, and MC-Mentaio Sales No. 2 Department.
How I "Be Active! "
As a Sales Department staff member, I had to search for land and properties from scratch, and I used the philosophy of "Be Active" to search around on foot and walked an average of over 20,000 steps a day.
Utilizing my career so far to bring "new winds" into Nihon Chouzai
Ms. Minagawa (Deputy General Manager, Pharmaceutical Administration Department, Pharmaceutical Headquarters)
Since joining the Company, I have been hiring registered dietitians, expanding their areas of work, and increasing their visibility in order to strengthen the pre-symptomatic and healthcare fields in the Pharmaceutical Administration Department. I used to be engaged in the promotion of health, such as planning, PHR development, and as a seminar lecturer in my previous positions, and I am utilizing this experience to create pharmacies that are open to the community.
I think that registered dietitians who specialize in nutrition and food can "connect communities and pharmacies." I am encouraged by each and every registered dietitian joining the Company that continue to take on challenges, and my job is to spread these efforts nationwide.
Joined the Company in 2017. Prior to joining the Company, gained a wide variety of experience working in sales, public relations, and systems-related
Profile positions. During her career, she felt the need for the healthcare industry in the future and acquired a qualification as a registered dietitian. After joining the Company, she has been engaged in pharmacy operations at the Pharmaceutical Administration Department, Pharmaceutical Headquarters.
How I "Be Active! "
I want people to know about the existence of registered dietitians and create places in which they can exercise their abilities! Creating something from scratch so that it leads to fulfilling these wishes - that
is the philosophy of "Be Active" at work. Not forgetting my curiosity, interacting with people from other industries, and interacting with diverse values when traveling abroad - these also lead to my "Be Active!"
performance Business
Chouzai Nihon supports that Base
section Data
57 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 58 |
Social
Together with Local Communities
In order to prevent the spread of COVID-19, conducting medication guidance by telephone and medicine deliveries from our pharmacies nationwide
■ S o c i a l
Together with Shareholders and Investors
General Meeting of Shareholders
drug of separation true achieving towards Growth services dispensing and prescribing
With the spread of COVID-19, it has become difficult for people to receive medical treatment at medical institutions. Based on a notice issued by the Ministry of Health, Labour and Welfare on April 10, 2020, measures have been taken on an exceptional, limited time basis to enable delivery of medicine, as well as medication guidance using information communication devices such as by telephones and video calls at pharmacies. At Nihon Chouzai, we have started accepting prescriptions via fax, medication guidance by tele- phone, and home delivery of medicine. We have built a system to share prescriptions with medical institutions via fax by using "curon," an online medical service from MICIN, INC. Additionally, at some pharmacies, we have introduced "CLINICS," an online medical care system from Medley, Inc., in order to provide medication guidance through video calls.
(3) Medication | ||||
(1) Medical service | Patients | guidance by | ||
by phone, etc. | phone, etc. | |||
(4) | Delivery of | |||
medicine | ||||
Medical institutions | (2) Sending prescriptions | Pharmacies | ||
via fax, etc. |
The 40th Ordinary General Meeting of Shareholders was held on June 24, 2020. In light of the spread of COVID-19, we recommended that shareholders use return envelopes or the Internet in order to exercise their voting rights. On the day of the meeting, shareholders who came to the venue cooperated by wearing masks, disinfecting their hands with alcohol disinfectant, and having their temperature measured at the entrance to the venue.
Nihon Chouzai speakers and event staff also wore masks and used acrylic boards and face shields, showing the utmost care to prevent the spread of the disease.
President & CEO Yosuke Mitsuhara delivered greetings and explained our business results using slides. After that, six proposals were submitted, all of which were approved.
performance Business
Case studies of using our electronic medication notebook, Okusuri Techo Plus, were posted on a government website that introduces measures to prevent the spread of COVID-19
Several initiatives by Nihon Chouzai, including rapid delivery of medicine using our electronic medication notebook Okusuri Techo Plus, were posted as good examples at pharmacies on a website introducing example efforts to prevent the spread of COVID-19 (https://distrib- ute-dei-taisaku.jp/). This website was established as a joint effort by the Ministry of Economy, Trade and Industry; the Ministry of Agriculture, Forestry and Fisheries; the Consumer Affairs Agency; and the Distribution Economics Institute of Japan. In order to minimize the time patients spend waiting at our pharmacies, we have worked to ensure that medicine can be given to them faster by having them send their prescriptions to the pharmacy in advance using the "send prescription function" of Okusuri Techo Plus. In addition, by implementing the following initiatives at our head office, branches and pharmacies, we have established a system that takes into consideration how to prevent infection of patients and how to prevent infection of employees working at our pharmacies.
Company-wide initiatives to prevent the spread of COVID-19
We are taking various measures company-wide to prevent the spread of COVID-19. Our main initiatives are as follows. As a company that provides medical care, we are strengthening our initiatives to prevent anyone from getting infected within the company.
Major initiatives to prevent the spread of disease at our pharmacies
Regularly disinfecting places in pharmacies where there is a lot of contact, such as push buttons for automatic doors, medication guidance counters, seats, etc., and placing seats to facilitate social distancing
Using a system in which all employees wear masks and register their daily temperature measurements and attendance status online, so their supervisor can check
Installing acrylic and vinyl partitions at receptions and medication guidance counters to prevent droplets from scattering
Main initiatives to prevent the spread of disease in our administrative departments, including our headquarters and branches
Changing work dates, implementing working from home and flex time, work systems distributed across multiple locations
Cancelling internal meetings, transitioning to online meetings, cancelling welcome/farewell parties and social gatherings
Having all employees wear masks, reporting daily temperature measurements and attendance
Cancelling customer visits, cancelling business trips, introducing video conference systems, securing laptops Changing from group training to online training
Results Briefing | ||||||
Although we planned to hold the Results Briefing for fiscal 2019 in May 2020, it had to be | ||||||
canceled due to the spread of COVID-19. Because the Results Briefing is positioned as an | ||||||
important dialogue with the market, we replaced the briefing with a video explaining the | ||||||
financial results, which was broadcasted online. We accepted inquiries from institutional in- | ||||||
vestors, financial institutions, media outlets, and other parties in advance, also broadcasting | ||||||
a video with answers to those questions, so that our financial results briefing could ensure a | ||||||
dialogue with the market. Following an explanation of partial revisions to the Pharmaceuti- | ||||||
cals and Medical Devices Act and dispensing fee revisions, we offered a detailed explanation | ||||||
focused on the growth strategy of Nihon Chouzai in response to these revisions. Among | ||||||
important topics, we also explained the use of ICT and mechanization at dispensing pharma- | ||||||
cies. | ||||||
Health Check Stations: | 75 | Stores (as of June 30, 2020) | ||||
Nihon Chouzai began actively operating Health Check Stations in its pharmacies in fiscal | ||||||
2016. As of June 30, 2020, we have increased them to 75 stores with these stations na- | ||||||
tionwide. Health Check Stations provide various services for pre-symptomatic diseases and | ||||||
disease prevention for local residents. In addition to hosting a variety of health-related events | ||||||
and consultation services on drugs, national registered dieticians provide nutrition-related | ||||||
consultation and other services at our main pharmacies to support the improved health and | ||||||
lives of local residents. | ||||||
Conference Presentations: | 36 | presentations | 24 | |||
delivered at | academic conferences |
In fiscal 2019, Nihon Chouzai made 36 presentations at 24 academic conferences. Due to the spread of COVID-19, we have not been able to appear at academic conferences from February 2020 onwards because some have been canceled or postponed, so these results cover the period from April 2019 to January 2020. At the JTTA Annual Academic Conference held in October 2019, we made a presentation about "Remote medication guidance in the National Strategic Special Zone using electronic medication notebooks."
From September 2020, online medication guidance will be available nationwide. We will be able to proceed with various initiatives, including the prevention of severe diabetes, by providing online medication guidance at our pharmacies nationwide.
Chouzai Nihon supports that Base
section Data
59 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 60 |
Governance
Corporate Governance
Nihon Chouzai continually works to enhance its corporate governance to sustain growth and raise corporate value with the aim of becoming a company that society needs.
Basic concept of corporate governance*
1 | 2 | 3 |
Increase management | Speedy | Strengthen management |
transparency and clarify | ||
decision-making | oversight function | |
management responsibility | ||
The above three points are essential to respond on-target to changes in the business environment, ensure the continued soundness of the Company and further raise corporate value. Moreover, because the Group operates its business in a field that is strictly governed by various regulations, it is fully aware that the enhancement of corporate governance and the strengthening of compliance are extremely important matters, and it has implemented a wide range of measures based on this understanding.
Given the Company's scale and its type of business operations, Nihon Chouzai has determined that a company that uses an audit and supervisory committee is most suitable for enhancing the Company's audit and oversight functions and for corporate governance.
- Corporate governance is a mechanism to assist a company in transparent, fair, speedy, and decisive decision-making whilst taking into account the positions of the company's shareholders as well as customers, employees, members of the community at large, and others.
Initiatives for strengthening of a range of policies
Internal control system | May 2006 | June 2016 | |||||||||||
Established basic policy on creation of internal control system | Revised the basic policy | ||||||||||||
Internal reporting system | March 2011 | ||||||||||||
Established "Nihon Chouzai Hotline" internal reporting system | |||||||||||||
Information Security Committee | April 2012 | ||||||||||||
Established Information Security Committee | |||||||||||||
Corporate conduct code | February 2014 | April 2018 | |||||||||||
Established corporate | Revised the conduct code | ||||||||||||
conduct code | |||||||||||||
Ethical conduct guidelines | February 2014 | April 2018 | June 2019 | ||||||||||
Established ethical | Revised the | Revised the guidelines | |||||||||||
conduct guidelines | guidelines | ||||||||||||
Compliance Promotion Committee | February 2014 | ||||||||||||
Established Compliance Promotion Committee | |||||||||||||
Medical Safety Committee | October 2014 | ||||||||||||
Established Medical Safety Committee | |||||||||||||
Outside directors | June 2015 | ||||||||||||
Brought in an outside director | |||||||||||||
Risk Management Committee | March 2016 | ||||||||||||
Established Risk Management Committee | |||||||||||||
Company with an audit and supervisory committee | June 2016 | ||||||||||||
Switched from a company with a board of corporate auditors to a company | |||||||||||||
with an audit and supervisory committee | |||||||||||||
Privacy Mark | November 2016 | ||||||||||||
Acquired Privacy Mark certified business | |||||||||||||
Business continuity plan | May 2017 | ||||||||||||
Established business continuity plan | |||||||||||||
Risk Management and Compliance Office | April 2020 | ||||||||||||
Established Risk Management | |||||||||||||
and Compliance Office | |||||||||||||
Governance
Analysis and Evaluation of the Effectiveness of the Board of Directors
Evaluation process of the Board of Directors' Effectiveness
Conduct a 22-item | Analysis and | Share and discuss | Examine items to |
be improved by the | |||
evaluation | evaluation | evaluation results | Board of Directors |
questionnaire to | by external | at the Board of | and implement |
directors | organizations | Directors meetings | concrete measures |
for improvement |
In fiscal 2019, the effectiveness of the Board of Directors was evaluated and measures were taken to make improvements. At the Board of Directors, we have secured sufficient operating time for the Board of Directors to deepen discussions on the enhancement of matters to be reported and sharing of analysis results. We also ensured sufficient time for executive training as needed.
Efforts on items that remained to be addressed based on the evaluation of the effectiveness of the Board of Directors, and issues to be further discussed and strengthened in the future
Efforts on items that remained to be addressed
A wide ranging and essential training topics, including legal affairs, labor and personnel affairs, management, and crisis management, are offered to management. In fiscal 2019, lectures were given on the themes of "insider trading regulations" and "work-style reform." We also held separate training sessions for employees other than executives to deepen understanding at the company as a whole and strengthen our preparedness.
Issues to be further discussed and strengthened in the future
1 | Issues related to sustainability |
We recognize that addressing issues related to sustainability, such as social and environmental issues, is an important management issue, and we will vigorously and proactively take appropriate measures. With the aim of meeting sustainable development goals, we intend to achieve medium- to long-term improvements in corporate value while balancing "Economy" "Environment" and "Society."
2 Issues related to corporate governance
We have reaffirmed the importance of both "offensive" governance and "defensive" governance in our group management. We will build an optimal business portfolio for the entire group and raise our corporate group's value.
Revitalization of Deliberations by the Board of Directors
For a free-spirited, constructive discussion and exchange of opinions, including the raising of issues by outside directors, all directors, including outside directors, are delivered materials for the Board of Directors in advance along with the annual schedule for the Board of Directors meetings.
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
Chouzai Nihon supports that Base
section Data
61 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 62 |
Governance
Management status of the Board of Directors
Activities in Fiscal 2019
The Board of Directors meeting was held 17 times between April 1, | panies. Meetings of the Audit and Supervisory Committee are also | |||
2019 and March 31, 2020. In principle, it is held once a month, but | held separately from the Board of Directors meetings. | |||
it is a policy to hold a meeting as needed. The Board of Directors | After the Board of Directors meetings, executive trainings are | |||
meetings are held as a unified group, as officers of Nihon Chouzai | conducted as necessary. | |||
attend the meetings of the Board of Directors of the group com- | ||||
Name | Title | Responsibilities and important concurrent positions | Attendance at the Board | |
of Directors meetings | ||||
Development and Operation Status of Internal Control System
Structure of committees | Risk Management | Committee | Compliance Promotion Committee | ||||
Purpose, related departments, | |||||||
and the implementation status of | |||||||
each committee are as described | |||||||
below. | Information Security Committee | Medical Safety | Committee | ||||
drug of separation true achieving towards Growth services dispensing and prescribing
Yosuke Mitsuhara | Representative Director | Overall management | 17 times out of 17 |
Katsuhiko Fukai | Managing Director | Medical care cooperation / business development | 17 times out of 17 |
Naoto Kasai | Managing Director | Sales management / sales development / corporate information | 17 times out of 17 |
Noriaki Miyata | Director | General Manager of Sales Promotion Department, Sales promotion / | 17 times out of 17 |
MC-Mentaio (medical center/near the station and in the shopping district) sales | |||
General Manager of Pharmaceutical Headquarters, pharmaceuticals administra- | |||
Toshiyuki Koyanagi | Director | tion / pharmaceuticals administration promotion / education and information / | 17 times out of 17 |
promotion of generic products / purchasing / at-home medical care / healthcare | |||
promotion / marketing / branch management | |||
Kazunori Ogi | Director | General Manager of Finance Department, accounting / finance / systems / | 17 times out of 17 |
corporate planning | |||
Yoshihisa Fujimoto | General Manager of Administration Department, general affairs / human | ||
Director | resources / Pharmaceutical Recruitment Center / public relations / private health | 17 times out of 17 | |
insurance / risk management and compliance management / CSO | |||
Keiso Masuhara | Director | General Manager of FINDAT Business Department, FINDAT business | 12 times out of 13* |
Yoshimitsu Onji | Outside Director | Outside Director of Tokyo Tatemono Co., Ltd., Outside Auditor of United Foods | 17 times out of 17 |
International Co., Ltd. | |||
Nobuyuki Hatakeyama | Director | ||
Audit and Supervisory | 17 times out of 17 | ||
Committee member | |||
Tadashi Urabe | Outside Director | ||
Audit and Supervisory | Attorney, Partner of Meitetsu Law Offices | 13 times out of 13* | |
Committee member |
Compliance Promotion Committee
Purpose
To ensure thorough compliance and improve social credibility by establishing basic matters regarding compliance efforts, building a system, and operating it appropriately
Related Departments
Risk Management and Compliance Office, General Affairs Department, System Department I, System Department II, Pharmaceutical Headquarters (Pharmaceutical Administration Department, Education and Information Department), Accounting Department, Human Resources Department, Public Relations Department, Audit and Supervisory Committee
Status of implementation
In principle, the Compliance Promotion Committee meets once every three months. Reports and sharing of information are made on the status of compliance promotion and future plans, compliance promotion education, compliance with the Act on the Protection of Personal Information, labor compliance, internal reporting system, etc. Subsidiaries also hold similar meetings. "Compliance Education" is published monthly on the company intranet, and the "Compliance Newsletter" and "Compliance Mail Magazine" are published to raise employees' awareness of compliance.
Risk Management Committee
Purpose
To implement risk management of the Nihon Chou- zai Group
Related Departments
Same as Compliance Promotion Committee
Status of implementation
In principle, the Risk Management Committee meets once every three months. Reports and sharing of information are made on the progress of risk man- agement, future plans, BCPs, etc. Subsidiaries also hold similar meetings.
performance Business
supports that Base
Outside Director | Certified Public Accountant, Licensed Tax Accountant, Auditor-secretary of | ||
Arata Toyoshi | Seikeikai Alumni Association, Auditor-secretary of The Yuumi Memorial Foun- | ||
Audit and Supervisory | 13 times out of 13* | ||
dation for Home Health Care, Substitute Audit & Supervisory Board Member of | |||
Committee member | |||
Japan Private REIT Inc., Outside Corporate Auditor of SMC Corporation | |||
*Appointed on June 24, 2019 |
Management status of the Board of Directors and main matters deliberated
Convening of Board of Directors meeting | In principle, once a month or as necessary |
Number of times convened | 17 times (April 1, 2019 - March 31, 2020) |
Matters deliberated | Opening pharmacies / M&A, budget / results, personnel / labor, fund procurement, establishment of |
rules, organizational changes, corporate governance code, acquisition / disposal of assets and others | |
Information Security Committee
Purpose
To protect all information assets owned by the Nihon Chouzai Group and to build an information security system that ensures customer satisfaction and social trust by complying with laws, regulations and other rules
Related Departments
Same as Compliance Promotion Committee
Status of implementation
In principle, the Information Security Committee meets once every three months. The information security policy of Nihon Chouzai secures the security condition of "Guidelines for the Security Management of Medical Information Systems" published by the Ministry of Health, Labour and Welfare. Reports and sharing of information are made on the information management status of each department,
Medical Safety Committee
Purpose
To promote appropriate medical safety management and contribute to safe provision of medical care
Related Departments
Pharmaceutical Headquarters (Pharmaceutical Administration Department, Education and Information Department) Risk Management and Compliance Office, General Affairs Department, Audit and Supervisory Committee
Status of implementation
The Medical Safety Committee discusses all events related to medical safety management. It also
Chouzai Nihon
section Data
Policy on cross-shareholdings
The Company may hold, as cross-shareholdings, shares of compa-
Shares held in FY2018
whether or not there was any intentional or negligent information security violations by employees, cyber security cases, etc.
discusses measures to prevent recurrence of past incidents and review improvement measures.
nies that it deems necessary for the purpose of maintaining and strengthening business relationships. Every year, the Company holds meetings of the Board of Directors to examine in detail whether the purpose of ownership for individual cross-shareholdings is appropriate, whether the benefits and risks associated with these holdings are commensurate with the cost of capital, etc., to verify the suitability of cross-shareholdings. For the exercise of voting rights pertaining to cross-shareholdings, the Company's policy is to exercise voting rights based on its viewpoint regarding how votes would contribute to the enhancement of the corporate value of the company invested in, combined with due consideration of the purpose of the holding.
Number | Total amount* | |
of issues | (millions of yen) | |
Unlisted shares | 1 | 13 |
Shares other than unlisted shares | 1 | 1 |
Shares held in FY2019
Number | Total amount* | |
of issues | (millions of yen) | |
Unlisted shares | 1 | 13 |
Shares other than unlisted shares | - | - |
* Aggregate amount recorded in the balance sheet
Establishment of the Risk Management and Compliance Office
The Risk Management and Compliance Office was established to provide education on risk management and compliance, as well as the development and operation of a comprehensive risk management system and compliance promotion system throughout the Group.
Establishment and dissemination of rules
To ensure the appropriateness of the Group's business operation, we have established measures such as rules, operation flowcharts and manuals, Mission Statement & Compliance CARD, Mission Statement & Compliance Policy, business continuity plan (BCP) and a disaster-response pocket manual, and are thoroughly disseminating them through the publication and circulation on the intranet.
63 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 64 |
Governance
Message from Outside Directors and Audit and Supervisory Committee Members
Feeling Changes at Nihon Chouzai
What are the changes at the Board of Directors in fiscal 2019?
What issues do you see as future challenges?
The first thing I feel is that the Board has a much more positive atmosphere. In the past, I believe that the sense of tension was accepted in a positive way and more dominant at the Board of Director meetings. It is not that there is no sense of tension at the current board, but more than that, I have a strong impression that an atmosphere has been created in which all participants can freely and frankly discuss issues.
As for the issues to be addressed, it may be necessary to take up more strategic management issues than ever before, such as the future vision, to take the pharmaceutical manufacturing and sales business to the top group in the generics industry, which is one of the most important management issues of the Group. In addition, I would like to closely monitor how fast the Company responds to "emergencies" such as the spread of COVID-19.
At the current Board of Directors meetings, the president has expressed his desire to hear the opinions of each director, and we can see vividly how the president's intentions are gradually being embraced and accepted into each director's consciousness. I strongly feel that the content of discussion is not limited to numerical reports on management, but includes analyses from a variety of perspectives, including comparisons with other companies, as well as the direction of business execution based on the trends of the pharmaceutical industry and government's pharmaceutical policies, and that careful consideration and judgment are made.
To ensure sufficient business judgment and business execution, it is necessary to strengthen corporate governance with awareness of a wider range of stakeholders. From my position as an Audit and Supervisory Committee member, I believe it is important to maintain a good balance between strengthening and improving the auditing system and enhancing the content of audits. In addition, from the perspective of ensuring the effectiveness of corporate governance , I believe it is essential for the Board of Directors to monitor the response of the business execution site and executives to suggestions from audits.
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
Outside Director
Yoshimitsu Onji
For changes in the Board of Directors, I strongly feel that dialogues surrounding matters for resolution and matters to be reported are not limited between a presenter and chairman, but expand to involve the presenter, directors and the chairman. I started to see comments such as "why?" and "I want to hear your thoughts" for each matter. Especially, there are many questions from the outside directors and I believe some of the matters that are common knowledge within the company are not so common beyond the company walls.
I believe that a process should be established to acknowledge, identify and control the various risks faced by the company and each department, and the monitoring and oversight by the Board of Directors should be enhanced. I strongly believe that it is important for the Board of Directors to further sort out and fully understand the occurrence frequency of risks at each department and the degree of impact of such risks on management. In addition, I think that one of the important roles of the Board of Directors, which is becoming increasingly important in society, is to recognize the current situation from the perspective of the ESG and SDGs, and to examine how it will respond to these social demands, as well as what specific initiatives it will undertake.
Director Audit and Supervisory Committee Member
Nobuyuki Hatakeyama
Outside DirectorAudit and Supervisory Committee Member
Tadashi Urabe
There are two major points I would like to say with regards to the current Board of Directors. One is the strong leadership of the president in the management and operation of the Board of Directors. As a corporate manager, the president provides his views on matters for resolution and matters to be reported, and supplements his understanding and analysis of their background, adding easy-to-understand explanations of the reasons for decisions and directions, so I can attend the meeting with a sense of reassurance. The second is that there is an attitude to listen to others sincerely. All attendees at the Board of Directors meeting are given the opportunity to speak as necessary and sufficiently.
As the Company's business continues to expand, society's expectations for the Company have become diverse and complex. I believe it is necessary for the Board of Directors to thoroughly discuss and examine the responsibilities that the Company must fulfill and the areas that it is lacking to achieve this. In addition, in my opinion, the Company needs to promote the use of ICT and enhance the consistency between ICT and manual operations in order to strengthen corporate governance.
Outside DirectorAudit and Supervisory Committee Member
Arata Toyoshi
Chouzai Nihon supports that Base
section Data
65 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 66 |
Governance
Board of Directors (As of June 24, 2020)
achieving towards Growth and prescribing
President and CEO
Yosuke Mitsuhara
Managing Director
Katsuhiko Fukai
September 1999 Joined the Company
April 2001 | General Manager of Corporate |
Planning Department | |
January 2005 | Director of Nihon Generic Co., Ltd. |
April 2006 | General Manager of Sales Promo- |
tion Department | |
October 2006 | Director of Medical Resources |
Co., Ltd. | |
June 2007 | Director, General Manager of Busi- |
ness Promotion Department | |
June 2010 | Resigned the Director |
June 2013 | Director of Japan Medical Research |
Institute Co., Ltd. | |
June 2014 | Director of the Company, Director |
of Nihon Generic Co., Ltd. |
May 1994 | Joined the Company |
April 1995 | Manager of Pharmaceutical Depart- |
ment, Kyushu Branch | |
June 2006 | Branch Manager, Kyushu Branch |
March 2008 | General Manager of Pharmaceutical |
Headquarters | |
June 2008 | Director, General Manager of |
Pharmaceutical Headquarters | |
April 2012 | Director, Manager of Pharmaceuti- |
cal Headquarters | |
June 2012 | Resigned the Director |
Manager of Pharmaceutical | |
Headquarters | |
June 2013 | Director, General Manager of |
Contract Dispensing Service | |
Department | |
June 2015 | Managing Director, General Man- |
ager of Contract Dispensing Service | |
Department | |
January 2019 | Managing Director (to present) |
January 1992 | Joined the Company |
January 2004 | Manager of Sales Department, |
Osaka Branch | |
April 2004 | Branch Manager, Manager of Sales |
Department, Osaka Branch | |
April 2007 | General Manager of Sales Manage- |
ment Department | |
June 2007 | Director, General Manager of Sales |
Management Department | |
April 2016 | Director, General Manager of Sales |
Promotion Department (to present) |
June 2015 Managing Director
June 2017 Senior Managing Director
June 2019 President and CEO of the Company (to present)
President and CEO of Medical Resources Co., Ltd. (to present)
President and CEO of Nihon Generic Co., Ltd. (to present)
President and CEO of Japan Medical Research Institute Co., Ltd. (to present)
Chairman of the Board of Chose- ido Pharmaceutical Co., Ltd. (to present)
April 2013 | Joined the Company |
Manager of Sales Management | |
Department | |
October 2013 | General Manager of Sales Promo- |
tion Department | |
June 2015 | Director, General Manager of Sales |
Promotion Department | |
April 2016 | Director, General Manager of Sales |
Management Department | |
June 2016 | Managing Director, General |
Manager of Sales Management | |
Department | |
April 2020 | Managing Director (to present) |
Managing Director
Naoto Kasai
July 1990 | Joined the Company |
April 2000 | Manager of Pharmaceutical Depart- |
ment, Tohoku Branch | |
December 2004 General Manager of East Japan | |
Pharmaceutical headquarters | |
December 2009 General Manager of Purchasing | |
Department, Pharmaceutical | |
Headquarters | |
April 2012 | General Manager of Pharmaceutical |
Headquarters and General Manager | |
of Purchasing Department, Pharma- | |
ceutical Headquarters | |
June 2012 | Director, General Manager of |
Pharmaceutical Headquarters and | |
General Manager of Purchasing | |
Department, Pharmaceutical |
Director
Keiso Masuhara
Director,
Audit and Supervisory Committee member
Nobuyuki Hatakeyama
July 2001 | Director of Department of Phar- |
macy of St. Marianna University | |
Hospital | |
February 2006 | Director of Department of Phar- |
macy of Kawasaki Municipal Tama | |
Hospital | |
April 2007 | Visiting Professor of Pharmacy and |
Health Science at Graduate School | |
of Showa Pharmaceutical University | |
Graduate School | |
May 2017 | Visiting Professor of St. Marianna |
University | |
August 2017 | Joined Japan Medical Research |
Institute Co., Ltd. | |
August 2017 | General Manager of the Hospital |
Consulting Group of Japan Medical | |
Research Institute Co., Ltd. | |
June 2018 | Director of Japan Medical Research |
Institute Co., Ltd. | |
April 2019 | General Manager of Formulary |
Business Promotion Department | |
June 2019 | Director, General Manager of |
Formulary Business Promotion | |
Department | |
June 2020 | Director, General Manager of |
FINDAT Business Department (to | |
present) |
September 1987 Joined the Company
June 2000 Director of the Company
June 2006 Branch Manager, Nagoya Branch December 2009 Branch Manager, Yokohama Branch
February 2016 | General Manager of Operational |
Audits Department | |
June 2018 | Director (Audit and Supervisory |
Committee member) (to present) | |
Auditor of Nihon Generic Co., Ltd. | |
(to present) | |
Auditor of Medical Resources Co., | |
Ltd. (to present) | |
Auditor of Japan Medical Research | |
Institute Co., Ltd. (to present) | |
Auditor of Choseido Pharmaceuti- | |
cal Co., Ltd. (to present) |
April 1998 | Registered as Certified Public |
Accountant | |
August 2007 | Partner of Tohmatsu & Co. (Cur- |
rently Deloitte Touche Tohmatsu | |
LLC) | |
July 2013 | Director and Executive Council |
of Certified Public Accountants' | |
Corporate Pension Fund |
Outside Director
Yoshimitsu Onji
Outside Director, Audit and Supervisory Committee member
Tadashi Urabe
April 1977 | Joined The Daiei, Inc. |
April 1994 | General Manager of Corporate |
Planning Department of The Daiei, | |
Inc. |
September 1998 Executive Vice President of RE
PARTNERS
December 1999 Director of OZ-corporation (Repre-
sentative) (to present)
March 2000 | Executive Officer of Office RECOF |
Co., Ltd. (Currently RECOF Cor- | |
poration) | |
June 2007 | Director and Senior Executive |
Officer of RECOF Corporation | |
June 2010 | President and CEO of RECOF |
Corporation | |
October 2016 | Chairman of the Board of RECOF |
Corporation |
December 2016 Director of M&A Capital Partners Co., Ltd.
March 2018 Outside Director of Tokyo Tatemono Co., Ltd. (to present)
June 2018 Outside Director of the Company (to present)
December 2019 Outside Auditor of UNITED FOODS INTERNATIONAL Co., Ltd. (to present)
April 1983 Registered as attorney (Tokyo Bar Association)
April 1999 Partner of Meitetsu Law Offices (to present)
April 2003 External Auditor of JPN COLLEC-
TION SERVICE CO., LTD.
January 2006 Instructor of Civil Law, Legal Training and Research Institute of Japan
February 2009 Outside Auditor of JPN Holdings Co., Ltd.
June 2011 Outside Auditor of EBARA COR-
PORATION
June 2019 Outside Director of the Company (Audit Committee member) (to present)
drug of separation true services dispensing
performance Business
Chouzai Nihon supports that Base
Director
Noriaki Miyata
May 2008 Joined the Company
April 2009 Manager of Finance Department
April 2015 General Manager of Finance
Department
June 2015 Director of the Company, General Manager of Finance Department (to present)
Director of Medical Resources Co., Ltd. (to present)
Director | Headquarters | |
Toshiyuki Koyanagi | January 2014 | Director, General Manager of |
Pharmaceutical Headquarters (to | ||
present) | ||
January 2011 | Joined the Company | |
General Manager of Sales Depart- | ||
ment for Public Institutions | ||
October 2013 | General Manager of General Affairs | |
Department | ||
June 2016 | Director, General Manager of | |
Administration Department and | ||
General Affairs Department | ||
April 2019 | Director, General Manager of | |
Administration Department (to | ||
present) |
Outside Director, Audit and Supervisory Committee member
Arata Toyoshi
July 2014 | Director of Tohmatsu Challenged |
Co., Ltd. | |
December 2016 | Resigned from Deloitte Touche |
Tohmatsu LLC | |
July 2017 | Auditor-Secretary of Seikeikai |
Alumni Association (to present) | |
November 2017 | Registered as Licensed Tax Ac- |
countant | |
November 2017 | Outside Auditor of Kids Smile |
Project inc. | |
February 2018 | Auditor-secretary of Tax Accountant |
Tamagawa (to present) | |
May 2018 | Auditor-secretary of The Yuumi |
Memorial Foundation for Home | |
Health Care (to present) | |
December 2018 | Substitute Audit & Supervisory |
Board Member of Japan Private | |
REIT Inc. (to present) | |
June 2019 | Outside Director of the Company |
(Audit and Supervisory Committee | |
member) (to present) | |
Outside Corporate Auditor of SMC | |
Corporation (to present) |
section Data
Director | Director |
Kazunori Ogi | Yoshihisa Fujimoto |
67 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 68 |
Governance
Corporate Governance Structure | ||||||||||
Corporate Governance Structure (As of June 24, 2020) | ||||||||||
At the 36th Ordinary General Meeting of Shareholders held on June | ||||||||||
9 directors | 28, 2016, Nihon Chouzai switched from a company with a board | |||||||||
Directors | one of which is an outside director / | of corporate auditors to a company with an audit and supervisory | ||||||||
committee. The Board of Directors consists of nine directors (exclud- | ||||||||||
independent officer | ||||||||||
ing the Audit and Supervisory Committee members), one of which | ||||||||||
3 directors | is an outside director, and three other directors that serve as Audit | |||||||||
Audit and Supervisory | and Supervisory Committee members, two of which are outside | |||||||||
Committee | two of which are outside directors / | directors, and it determines important matters stipulated by laws | ||||||||
independent officers | and provides oversight of the directors' execution of their duties. | |||||||||
In addition, the three directors, which include the two outside | ||||||||||
directors, make up the Audit and Supervisory Committee and fulfill | 71 | Main Prescription Dispensing Fee Revisions | ||||||||
their oversight function through such methods as exercising their | ||||||||||
right to vote in the Board of Directors meetings, auditing the direc- | ||||||||||
tors' execution of their duties, and preparing audit reports. | 74 | Explanation of Terminology | ||||||||
The Company has appointed Deloitte Touche Tohmatsu LLC as | ||||||||||
an audit company to perform accounting audits to ensure proper | 77 | 10-Year Summary of Financial and Non-financial Data | ||||||||
accounting procedures and management transparency. | ||||||||||
Corporate Governance Structure (As of June 24, 2020) | 79 Report of Business Results and Financial Analysis | |||||||||
General Meeting of Shareholders | 81 | Consolidated Balance Sheet | ||||||||
Appointment/Removal | Appointment/Removal | Appointment/Removal | ||||||||
Directors who are not members | Directors who are members | 83 Consolidated Statement of Income | ||||||||
of the Audit and Supervisory | of the Audit and Supervisory | 84 | Consolidated Statement of Comprehensive Income | |||||||
Committee: 9 | Committee: 3 | |||||||||
(one of which is an outside director) | (two of which are outside directors) | Consolidated Statement of Changes in Net Assets | ||||||||
Command/Instruction | 85 | Consolidated Statement of Cash Flows | ||||||||
Appointment/ | Board of | Audit and | Management/ Oversight | 86 | Risks of Businesses | |||||
Supervisory | ||||||||||
Command/ | Appointment/ | Audit | Accounting audit | |||||||
Representative | Oversight | Directors | Audit | Committee | Cooperation | |||||
Director | Accounting Auditor | 89 | Company Profile | |||||||
Instruction | Oversight | Internal control audit | Execution dutiesof | 90 | History | |||||
Departments, subsidiaries | 91 | Stock Information | ||||||||
Audit | 92 | Reference Pages for Major Contents | ||||||||
Cooperation | Internal controls | 4 Data section | ||||||||
Audit Office | Report | |||||||||
Responsibilities of the Board of Directors | ||||||||||
Report |
It is the responsibility of the Board of Directors to promote the sustainable growth of the company and the enhancement of corporate value over the medium- to long-term, and to improve profitability and capital efficiency. To achieve this, the following measures are implemented:
- Accurately manage the progress of corporate strategies
- Create an environment that supports appropriate risk taking by the senior management
- Highly effective oversight of management and directors from an independent and objective standpoint
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
Chouzai Nihon supports that Base
section Data
69 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 70 |
Main Prescription Dispensing Fee Revisions
The generic pharmaceuticals dispensing system incentives | ||||||||||||
(Reference) Changes in main technical fees associated with revision of prescription dispensing fees in FY2018 | ||||||||||||
Calculated for all prescriptions | Calculated for each prescription | April 2018 - March 2020 | Points | April 2020 - March 2022 | Points | |||||||
Generic pharmaceuticals | ||||||||||||
dispensing system | 75% or more | 18 points | 75% or more | 15 points | ||||||||
incentive 1 | ||||||||||||
Calculated based on each pharmacy's system | Drug history management and instruction fee | Generic pharmaceuticals | ||||||||||
or | dispensing system | 80% or more | 22 points | 80% or more | 22 points | |||||||
Basic dispensing fee | The generic pharma- | Community support | incentive 2 | |||||||||
Generic pharmaceuticals | ||||||||||||
ceuticals dispensing | ||||||||||||
system incentives | Family pharmacist guidance fees | 28 points | ||||||||||
system incentives | dispensing system | 85% or more | 26 points | 85% or more | ||||||||
incentive 3 | ||||||||||||
2 points subtracted from basic dispensing fee if dispens- | 2 points subtracted from basic dispensing fee if dispens- | |||||||||||
ing quantity ratio of generic drugs is 20% or less | ing quantity ratio of generic drugs is 40% or less |
drug of separation true achieving towards Growth services dispensing and prescribing
Business
Basic dispensing fee
FY2020 basic dispensing fees (amendments in blue)
Number of prescriptions | Concentration | Points | |
ratio | |||
Basic dispensing fee 1 | Basic dispensing fee other than 2, 3 and special basic dispensing fee | 42 points | |
2,001 - 4,000 prescriptions per month | Exceeding 85% | ||
More than 4,000 prescriptions per month | Exceeding 70% | ||
Basic dispensing fee 2 | 1,801 - 2,000 prescriptions per month (addition) | Exceeding 95% | 26 points |
More than 4,000 prescriptions per month from specific medical institutions | - | ||
35,001 - 40,000 prescriptions per month within the same group (addition) | Exceeding 95% | ||
Basic dispensing fee 3-a | 21 points | ||
40,001 - 400,000 prescriptions per month within the same group | Exceeding 85% | ||
Basic dispensing fee 3-b | |||
More than 400,000 prescriptions per month within the same group | 16 points | ||
FY2018 basic dispensing fees | FY2020 basic dispensing fees | ||||||||
Requirements | Concentration | Points | Requirements | Concentration | Points | ||||
ratio | ratio | ||||||||
Real estate transactions | |||||||||
Real estate transactions | with medical insti- | ||||||||
Special basic | with hospitals | Exceeding 95% | 11 points | tutions (including | Exceeding 70% | 9 points | |||
dispensing fee | Other special relation- | clinics) | |||||||
ships | Other special relation- | ||||||||
ships | |||||||||
50% reduction in basic dispensing fees if basic work | 50% reduction in basic dispensing fees if basic work | ||||||||
related to family pharmacy role is less than 10 times per | related to the role of a family pharmacy is less than 100 | ||||||||
year | times per year |
Community support system incentives
April 2018 - March 2020 | Points |
In case of basic fee 1, meet all of the following requirements
- Narcotics retailer license
- At-homemedical care: At least once per year
- Family pharmacist notification
Management pharmacists employed in pharmacies for five years, employed by the current pharmacy for one year, and worked for at least 32 hours per week
For cases other than basic fee 1, add all | |||
of the following results to the require- | |||
ments for each full-time pharmacist for | |||
Community support | one year | 35 points | |
system incentives | (1) Results of nighttime/holiday response: | ||
400 times | |||
(2) | Results of narcotics guidance control | ||
incentives: 10 times | |||
(3) | Results of incentive for preventing | ||
harmful drug interactions and duplicate | |||
prescriptions, etc.: 40 times | |||
(4) | Results of family pharmacist guidance | ||
fees, etc.: 40 times | |||
(5) | Results of outpatient medication | ||
support fees: 12 times | |||
(6) | Results of medication adjustment | ||
support fees: 1 time | |||
(7) | Results of at-home drug management | ||
of one patient in single building: 12 | |||
times | |||
(8) | Results of the medication information | ||
and other information fees: 60 times |
April 2020 - March 2022 | Points |
In case of basic fee 1, meet all of requirements (1) - (3) below and either (4) or (5)
- Narcotics retailer license
- At-homemedical care: At least 12 times per year
- Family pharmacist notification
- Results of the medication infor- mation and other information fees: At least 12 times per year
- Attendance at regional collabora- tion meetings with other occupa-
tions: At least once per year
Management pharmacists employed in pharmacies for five years, employed by the current pharmacy for one year, and worked for at least 32 hours per week
For cases other than basic fee 1, meet 8 of requirements (1) - (9) below
((1) - (8): Number of times annually per
full-time pharmacist, (9) is number of 38 points times annually per pharmacy)
- Results of nighttime/holiday response: 400 times
- Results of narcotics dispensing: 10 times
- Results of incentive for preventing harmful drug interactions and duplicate prescriptions, etc.: 40 times
- Results of family pharmacist guidance fees, etc.: 40 times
- Results of outpatient medication support fees: 12 times
- Results of medication adjustment support fees: 1 time
- Results of at-home drug management of one patient in single building: 12 times
- Results of the medication information and other information fees: 60 times
- Attendance at regional collabora- tion meetings with other occupa- tions: At least once per year
performance
Chouzai Nihon supports that Base
section Data
71 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 72 |
Main Dispensing Fee Revisions
Explanation of Terminology
Drug history management and instruction fee
Basic | Basic | Basic | Basic | |||
April 2018 - March 2020 | dispensing | dispensing fee | April 2020 - March 2022 | dispensing | dispensing fee | |
fee 1 | other than 1 | fee 1 | other than 1 | |||
Has a medication | 41 points | Has a medication | 43 points | |||
notebook | notebook |
A Vision of Pharmacies for Patients
A vision announced by the Ministry of Health, Labour and Welfare in October 2015. The announced vision is a guideline for fulfilling functions such as pharmaceutical management and guidance, which includes centilizing drug use data and constantly acquiring new
Health support pharmacy
Health support function
information about drugs and dealing with at-home medical care within the integrated community care system. The guideline also attempts to achieve the separation of the roles of drug prescribing and dispensing for patients who live locally. The guideline also shows the direction that dispensing pharmacies should take and the functions required.
Advanced pharmaceutical management function
of separation true achieving towards Growth services dispensing and prescribing
Revisit to | Revisit to | ||||||
pharmacy within | pharmacy within | ||||||
Does not have | Does not have | ||||||
6 months | 3 months | ||||||
a medication | 53 points | a medication | |||||
notebook | notebook | ||||||
Not a revisit to | 53 points | Not a revisit to | 57 points | ||||
Has/does not have | Has/does not have | ||||||
pharmacy within | a medication | pharmacy within | a medication | ||||
6 months | notebook | 3 months | notebook |
Family pharmacist guidance fees
April 2018 - March 2020 | Points | April 2020 - March 2022 | Points | ||
Employed in pharmacies for three years, em- | |||||
Employed in pharmacies for three years, em- | |||||
ployed by the current pharmacy for one year, | ployed by the current pharmacy for one year, | ||||
Family | and worked for at least 32 hours per week | and worked for at least 32 hours per week | |||
pharmacist | Qualified as certified pharmacist | 73 points | Qualified as certified pharmacist | 76 points | |
guidance fees | Participate in local medical activities | Participate in local medical activities |
Prevent disease of citizens and contribute to health support | Respond to advanced pharmaceutical needs |
A supply function and suggestion system capable of properly selecting guidance-required drugs | Offer support to deal with anti-cancer drug side effects |
Health counseling reception, recommendation of medical examination, and introduction to | and selection of anti-HIV drugs in collaboration with |
relevant institution | specialized institutions |
Family pharmacists and pharmacies
Centralized drug use data for continuous management | 24-hour response / At-home medical care |
Continuous verification of effects and side-effects | Respond to nighttime, holiday, and at-home medical care |
Administration of multiple drugs and prevention of duplicate administration and interaction | 24-hour response |
Leverage information and communications technology (electronic medication notebook) | Provide guidance on pharmacological management and using |
Track the prescription information of all medical institutions that a patient has patronized | drugs to home patients |
Centralize drug use data, including over the counter drugs, for continuous monitoring, | To manage unused drugs, actively contribute to at-home |
pharmacological management/guidance | medical care as a part of integrated community care system |
Cooperation with medical institutions
Check doctor's prescription, | After dispensing, monitor patient's status, provide feedback | Cooperate with relevant local institutions, such |
and question and propose | to the prescribing physician, and provide management of | as responding to requests for drug and health |
prescriptions when necessary | unused drugs and assistance in using them | counseling and recommending health checks |
drug
performance Business
Has independent counters separated by |
partitions |
Dispensing fee
Number of prescription days | 1 - 7 | 8 - 14 | 15 - 21 | 22 - 30 | 31 - | ||||
April 2018 - March 2020 | 5 points/day | 4 points/day | 67 points | 78 points | 86 points | ||||
(average 27 points) | (average 61 points) | ||||||||
April 2020 - March 2022 | |||||||||
28 points | 55 points | 64 points | 77 points | 86 points | |||||
Online medication guidance (new)
April 2020 - March 2022 | Points | ||
When getting medication guidance via information and communication equipment | |||
Patients who received prescriptions through online medical treatment | Up to | ||
Drug history management and | Patients who received face-to-face medication guidance within 3 months, in principle | 43 points | |
guidance fee 4 | (1) Create a medication guidance plan, implement based on that plan | per | |
(2) | Pharmacists who provide online medication guidance are the same, in principle | month | |
(3) | Check drug history and current medications with a medication notebook | ||
Home patient online medication guidance fee | |||
Patients who have been given a prescription by home visit medical treatment | |||
Patients who receive a monthly visit for at-home medical care | Up to | ||
Home patient visiting drug | (1) Can be calculated up to 10 times a week, for a total of up to 40 times a week including | 57 points | |
management guidance fee | home patient visiting drug management guidance fee 1 - 3 for each pharmacist | per | |
(2) | Create a medication guidance plan, implement based on that plan | month | |
(3) | Pharmacists who provide online medication guidance are the same in principle | ||
(4) | Provide written information to doctors who have done home visit medical treatment | ||
Family pharmacist
The system of having the same pharmacist in charge as a "family pharmacist" by appointing the pharmacist to the patient began in April 2016. By appointing only one desired pharmacist from among pharmacists who have cleared certain nationally established requirements and signing a consent form, that pharmacist gives instructions about medicines, provides counseling and other services as the attending pharmacist next time.
-
Pharmacist understands drugs collectively
The attending pharmacist collectively understands the patient's drugs, over-the-counter drugs, health foods or supplements received at another medical institution or drug store. The pharmacist provides advice, such as precautions when taking drugs, including whether duplicate drugs are being taken and the interactions that drugs have with each other or with food. - Verification of change in physical condition and management of medicines
During the pharmacy visit, the pharmacist continuously checks the patient's progress after taking medication, including their past medication record. The pharmacist observes the medica- tion's effect on the patient and changes in physical condition and contacts a medical institution, if necessary. If there is much medicine left over, the pharmacist proposes that the prescrip- tion be adjusted next time and organizes the medicines. - Nighttime/holiday response and counseling
As a pharmacist who understands the patient's medication status, the pharmacist responds to requests for medication and health maintenance counseling. The pharmacist provides medication counseling, even when the patient's pharmacy is closed, such as at nighttime or on holidays.
Criteria 1. Possess at least three-years' experience as an insurance pharmacist
- Works at least 32-hours per week in said insurance pharmacy
- Has a tenure of at least one year in said insurance pharmacy
- Received training certification from a training certification system that is approved by the Council on Pharmacists' Credentials
- Participate in local medical activities
- Has independent counters separated by partitions (Added from April 2020)
Family pharmacists and pharmacies
In A Vision of Pharmacies for Patients, the three functions required of family pharmacists and pharmacies are explained, but there are no facility standards for pharmacies and notification to Regional Bureau of Health and Welfare is not required. Work required for family pharmacists and pharmacies is mainly interpersonal work, and the main work is the 9 items necessary for pharmacies other than basic fee 1 to calculate community support system incen- tives. The same ministry is seeking to restructure all pharmacies into family pharmacist and family pharmacies by 2025.
Health support pharmacies
These are pharmacies that possess the basic functions of family pharmacists and family pharmacies and proactively support the independent maintenance and promotion of health by local residents. Healthcare centers must be notified in advance. The Ministry of Health, Labour and Welfare's goal is to register 10,000 to 15,000 health support pharmacies by 2025.
Criteria 1. Cooperation with other occupational disciplines such as medical institutions and nursing care providers within the comprehensive regional medical care system
- A resident pharmacist who has completed health support pharmacy training and has five or more years of practical experience
- An inquiry counter that takes account of personal information
- Display "Health Support Pharmacy" outside and inside the pharmacy
- Handle guidance-required drugs, nursing care products, etc.
Source: A Vision of Pharmacies for Patients" by the Ministry of Health, Labour and Welfare
Chouzai Nihon supports that Base
section Data
73 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 74 |
Explanation of Terminology
Partial Revisions to the Pharmaceuticals and Medical Devices Act
A proposed revision to the Pharmaceuticals and Medical Devices Act was submitted to the Diet on March 19, 2019, and this proposal was passed and enacted on November 27, 2019. It has been decided that the new law will be enforced in stages from September 2020. Looking at trends related to pharmacies, online medication guidance will be widely implemented starting in Sep- tember 2020. In addition to remote medication guidance, which was only allowed in National Strategic Special Zones until now,
this will also cover prescriptions where online medical treatment is performed by video calls, and the target area will be expanded nationwide. In addition, the diseases that would be covered will also expand including the prevention of severe diabetes and chronic headaches.
In addition, from August 2021, the functions of pharmacies will be defined by the Pharmaceuticals and Medical Devices Act, and with a license from a prefectural governor, pharmacies will be able to display signboards, etc. according to their functions. This will enable patients to choose the right pharmacy for them.
Medical service fee revisions
In Japan, fees paid in exchange for healthcare services provided by health insurance are specified for medical and dental treatment and drug dispensing by the Ministry of Health, Labour and Welfare with a medical service fee point table. In addition, the price of drugs is determined by the NHI Drug Price Standard. Medical service fees are reviewed once every two years.
Prescription dispensing fee revisions
This refers to the portion of revised medical service fees that is utilized for prescription dispensing services. Dispensing fees are
located and meets the prescription demand of those medical institutions.
* Hybrid-type pharmacy is a term for a type of pharmacy used by NIHON CHOUZAI Co., Ltd.
On-site pharmacies
It became possible to open on-site pharmacies within hospital premises following the easing of restrictions on the structural independence of pharmacies and medical institutions in October 2016. These pharmacies can cooperate with hospitals is possible and support for advanced medicine is required. On the other hand, the basic dispensing fee has been set lower than hospital-front pharmacies.
drug of separation true achieving towards Growth services dispensing and prescribing
Regional-cooperation pharmacies
Pharmacies that can collaborate with other medical institutions at the time of hospitalization or discharge and at-home medical care
Structural equipment with consideration for privacy (partitions, etc.)
Providing information to medical institutions on medicine that patients bring when they are hospitalized
Participation in meetings with doctors, nurses, care managers, etc. (dis- charge conferences, etc.)
Placement of pharmacists who received training on integrated community care, including welfare and nursing care
Development and participation of a local dispensing response system including responses at nighttime and on holidays
Dispensing of drugs necessary for at-home medical care including narcot- ics/sterile dispensing
Home visits
Specialized medical instructions cooperation pharmacies
Pharmacies that can collaborate with other medical institutions for specialized pharmaceutical management of diseases such as cancer
Structural equipment with consideration for privacy (partitions, private rooms or other space for consultation, etc.)
Providing information to medical institutions on medicine that patients bring when they are hospitalized
Participation in meetings with doctors, nurses, care managers, etc. (dis- charge conferences, etc.)
Sharing treatment policies with doctors and pharmacists, etc. at specialized medical institutions
Conducting joint training with specialized medical institutions, etc.
Sharing medication information with regional-cooperation pharmacies that are used by patients, etc.
Placement of pharmacists with a high degree of expertise, such as accreditation by an academic society
revised once every two years.
NHI drug price revisions
With respect to the price of drugs used in healthcare services provided by health insurance, an official price has been established as the "NHI drug price standard." A Drug Price Standard List is issued four times a year for new drugs and two times a year for generic drugs so that it can be used in healthcare services provided by health insurance. The list is revised once every two years based on a survey (drug price sur- vey) of market distribution prices for medical institutions and pharma- cies. In October 2019, NHI drug prices were revised at the same time that the consumption tax rate was raised from 8% to 10%. Starting in April 2020, NHI drug prices are scheduled to be revised annually.
Basic dispensing fee
A fee that is paid one time per prescription when the pharmacist performs "drug dispensing at the pharmacy." The number of
Electronic Okusuri Techo (Electronic medication notebook)
A notebook application for centrally managing the information and records of prescribed medicines and for avoiding duplication and side effects caused by taking multiple medications. It can record information on a smartphone or other device. Nihon Chouzai has conducted in-house development of the electronic medication notebook Okusuri Techo Plus. Although a number of companies have rolled out their own products, the products of companies that participate in the Japan Pharmaceutical Association's mutual browsing service can perform information browsing, including even other companies' electronic medication notebooks.
Automatic drug picking device / Fully automatic PTP sheet dispensing device
In Japan, patients usually take drugs that have been sealed in PTP sheets. At pharmacies, PTP sheet-packaged drugs are picked by staff. These two devices store PTP sheets in cassettes, and they are becoming popular as a machine to prepare the required number of
performance Business
Source: Prepared by Nihon Chouzai based on materials submitted by the Ministry of Health, Labour and Welfare (May 2019)
Review of elderly population
1 | The number of elderly people of 65 years and older is projected to reach 36.57 million in 2025, and a peak of 38.78 million in 2042. | ||||
Elderly people 75 years and older as a percentage of the total population are increasing and are expected to exceed 25% in 2055. | |||||
Aug. 2012 | 2015 | 2025 | 2055 | ||
Elderly population 65 years and older (percentage) | 30.58 million (24.0%) | 33.95 million (26.8%) | 36.57 million (30.3%) | 36.26 million (39.4%) | |
Elderly population 75 years and older (percentage) | 15.11 million (11.8%) | 16.46 million (13.0%) | 21.79 million (18.1%) | 24.01 million (26.1%) | |
Source: FY2015 Annual Health, Labour and Welfare Report
points varies depending on whether that pharmacy fulfills the role of a family pharmacy or pharmacy chains or focuses on responding to demand for prescriptions made by specific medical institutions.
Premium for generic drug dispensing system
This is a fee added to the basic prescription fee for pharmacies that actively dispense generic drugs. Each time there is a revision, the calculation standard is being raised in order to further promote the use of generic drugs.
Community support system incentives
Newly established to coincide with the April 2018 revision of med-
PTP sheets by transmitting prescription data.
Health Check-up Station*
Exclusive areas set up within Nihon Chouzai pharmacies that are equipped with health consultation and health assessment capabilities in order to support the health of local community residents through disease prevention and pre-symptomatic initiatives.
*The Health Check-up Station is a registered trademark of NIHON CHOUZAI Co., Ltd.
Formularies
These are guidelines for drug use formulated by medical institu-
Chouzai Nihon supports that Base
2 | Among elderly people 65 years and older, those with a "de- |
gree of autonomy in daily life for elderly with dementia" of |
category II or above are increasing.
Estimate of the number of elderly people with a "degree of autonomy in daily life for elderly with dementia" of category II or above (figure in parentheses is a comparison with 65-year-oldand older population)
(millions of people) | ||||
5 | 4.10 | 4.70 | ||
4 | 3.45 | (12.8%) | ||
(11.3%) | ||||
2.80 | ||||
3 | (10.2%) | |||
(9.5%) | ||||
2 | ||||
1 | ||||
0 | ||||
2010 | 2015 | 2020 | 2025 |
3 | Households in which the head of one-person households |
and couple-only householders is 65 years or older are |
increasing.
Number of couple-only households in which the head is 65 years or older
Number of couple-only households in which the head is 65 years or older | |||||||
Number of one-person households in which the head is 65 years or older | |||||||
(households) | Percentage of one-person households and couple-only households in | (%) | |||||
which the head is 65 years or older as a share of total households | |||||||
20,000 | 32 | ||||||
26.6 | 28.0 | ||||||
24.9 | 25.7 | ||||||
15,000 | 23.1 | 24 | |||||
20.0 | |||||||
10,000 | 6,209 | 6,512 | 6,453 | 6,328 | 6,254 | 16 | |
5,403 | |||||||
5,000 | 8 | ||||||
7,298 | 7,622 | ||||||
0 | 4,980 | 6,008 | 6,679 | 7,007 | 0 | ||
2010 | 2015 | 2020 | 2025 | 2030 | 2035 |
Source: Review of future elderly population by the Ministry of Health, Labour and Welfare
ical service fees for the purpose of assessing the record of community services (e.g. nighttime and holiday services) provided by pharmacies where family pharmacists contribute to medical care in their local communities within integrated community care system.
At-home medical care
Medical treatment carried out in cooperation with various occupational disciplines, such as physicians and nurses. Pharmacists visit the homes of patients who find it difficult to visit a hospital or clinic due to a physical disability or other reason, and give instructions about medicines and monitor and manage the patient to ensure they take the medicine.
Hospital-front pharmacies
A dispensing pharmacy located near a hospital that responds primarily to that hospital's prescription demand. However, an official definition does not exist. Some also function as family pharmacists and pharmacies that respond to prescription demand from many medical institutions, participate in at-home medical treatment, and
tions and regions based on a comprehensive scientific assessment of the efficacy and safety of drugs, as well as their economic efficiency. The goal is to promote standard drug treatment based on guidelines for the use of high-quality, inexpensive drugs. The spread of regional formularies is expected to promote the use of generic drugs and curb the continuing increase in medical costs. These guidelines have already been introduced in Europe and the US, and in Japan, they have also been introduced in some areas.
GMP
Abbreviation of Good Manufacturing Practice. This is a manufacturing quality management standard established by the United States' Food and Drug Administration based on the Federal Food, Drug, and Cosmetic Act of 1938. Every country has established similar stan- dards. In Japan, this is called the Good Quality Practice for pharmaceutical products established by the Ministry of Health, Labour and Welfare based on the Pharmaceuticals and Medical Devices Act.
section Data
Separation of drug prescribing and dispensing | Generic drugs |
This is a system whereby physicians examine patients and prescribe | A drug which, after the expiration of the term of a patent (sub- |
drugs, and based on the prescriptions made by physicians, pharma- | stance patent) for the drug's active ingredients, is manufactured |
cists, who are independent entities from a management perspective, | and supplied by other pharmaceutical companies with the same |
dispense drugs, manage medication histories, and provide guidance | active ingredients. Legally, this is referred to as a "generic drug." |
in using drugs, thus demonstrating their expertise in these areas. In | |
this way, the system strives to raise the quality of medical care. |
75 NIHON CHOUZAI CORPORATE REPORT 2020
provide other services.
Hybrid-type pharmacies*
Pharmacies that combine the functions of both a Mentaio pharmacy that was opened in front of a train station or in a shopping district and meets prescription demand from a relatively wide area, without being limited to prescriptions from specific medical institutions, and a medical center (MC) pharmacy in a medical mall where a number of medical institutions are
Dispatching act
The official name is the "Act for Securing the Proper Operation of Worker Dispatching Undertakings and Improved Working Conditions for Dispatched Workers." This is a law with established rules that temporary staffing companies and companies that hire temporary staff must observe in order to protect the rights of dispatched workers. The law has been improved by, for example, establishing the period of time that a worker can be dispatched to the same office of a company that hires temporary staff.
NIHON CHOUZAI CORPORATE REPORT 2020
76
10-Year Summary of Financial and Non-financial Data
(Millions of yen) | ||||||||||
Consolidated performance indicators | FY2010 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
Fiscal year in which revisions to prescription dispensing fees | 11 | |||||||||
and NHI drug prices were made | ||||||||||
Business results (for the year) | ||||||||||
Net sales | 112,128 | 130,041 | 139,466 | 165,347 | 181,844 | 219,239 | 223,468 | 241,274 | 245,687 | 268,520 |
Gross profit | 19,182 | 22,038 | 21,494 | 25,623 | 31,929 | 39,068 | 39,258 | 43,837 | 41,975 | 46,372 |
Selling, general and administrative expenses | 14,398 | 16,574 | 18,248 | 20,878 | 25,281 | 28,578 | 30,738 | 33,250 | 35,242 | 38,779 |
Operating profit | 4,784 | 5,464 | 3,245 | 4,744 | 6,647 | 10,489 | 8,519 | 10,587 | 6,733 | 7,593 |
EBITDA 1 | 7,118 | 8,492 | 6,837 | 8,570 | 10,278 | 14,951 | 13,260 | 15,801 | 13,037 | 13,909 |
Ordinary profit | 4,358 | 4,941 | 2,855 | 4,188 | 6,003 | 9,878 | 7,976 | 10,138 | 6,077 | 7,405 |
Profit attributable to owners of parent | 1,821 | 2,085 | 184 | 1,901 | 2,778 | 6,329 | 4,638 | 6,104 | 3,790 | 6,697 |
Cash flows (for the year) | ||||||||||
Cash flows from operating activities | 6,723 | 7,127 | 2,885 | 6,243 | 5,831 | 19,327 | (940) | 23,141 | 13,572 | 13,192 |
Cash flows from investing activities | (8,269) | (9,694) | (6,422) | (14,510) | (8,437) | (7,823) | (28,444) | (13,843) | (1,770) | (2,731) |
Cash flows from financing activities | 1,109 | 7,920 | 5,496 | 8,782 | 1,422 | 7,031 | 18,205 | (2,034) | (10,516) | (7,955) |
Financial position (at year-end) | ||||||||||
Total assets 2 | 72,701 | 86,615 | 95,140 | 117,295 | 130,141 | 157,609 | 178,347 | 186,573 | 178,677 | 185,551 |
Net assets | 12,780 | 14,716 | 14,702 | 15,849 | 17,635 | 32,473 | 36,447 | 41,506 | 41,073 | 47,072 |
Cash and cash equivalents | 7,200 | 12,554 | 14,513 | 15,027 | 13,844 | 32,380 | 21,200 | 28,464 | 29,749 | 32,254 |
Merchandise and finished goods | 8,595 | 8,419 | 11,908 | 12,165 | 15,911 | 15,328 | 21,455 | 20,873 | 22,272 | 22,988 |
Interest-bearing debts 3 | 33,891 | 42,279 | 48,281 | 62,037 | 68,327 | 66,794 | 86,524 | 87,611 | 81,302 | 73,918 |
Per share information | ||||||||||
Net assets per share 4 (yen) | 893.41 | 1,023.97 | 1,017.04 | 1,090.63 | 1,257.59 | 2,030.22 | 2,278.70 | 2,595.00 | 2,739.04 | 3,139.54 |
Net income per share 4 (yen) | 127.57 | 145.46 | 12.84 | 131.24 | 194.48 | 432.85 | 290.03 | 381.69 | 243.47 | 446.66 |
Financial and non-financial data | ||||||||||
Sales growth rate (%) | 14.1 | 16.0 | 7.2 | 18.6 | 10.0 | 20.6 | 1.9 | 8.0 | 1.8 | 9.3 |
Selling, general and administrative expenses ratio (%) | 12.8 | 12.7 | 13.1 | 12.6 | 13.9 | 13.0 | 13.8 | 13.8 | 14.3 | 14.4 |
Operating margin (%) | 4.3 | 4.2 | 2.3 | 2.9 | 3.7 | 4.8 | 3.8 | 4.4 | 2.7 | 2.8 |
ROA 5 (%) | 2.7 | 2.6 | 0.2 | 1.8 | 2.2 | 4.4 | 2.8 | 3.3 | 2.1 | 3.6 |
ROE 6 (%) | 15.1 | 15.2 | 1.3 | 12.0 | 16.6 | 25.3 | 13.5 | 15.7 | 9.2 | 15.2 |
Equity ratio 7 (%) | 17.6 | 17.0 | 15.5 | 13.5 | 13.6 | 20.6 | 20.4 | 22.2 | 23.0 | 25.4 |
Interest coverage ratio 8 (times) | 12.8 | 13.0 | 4.9 | 8.6 | 7.1 | 24.4 | - | 37.1 | 25.8 | 36.2 |
D/E ratio 9 (times) | 2.7 | 2.9 | 3.3 | 3.9 | 3.8 | 2.1 | 2.4 | 2.1 | 2.0 | 1.6 |
Capital expenditure | 7,885 | 8,961 | 5,566 | 9,069 | 12,279 | 8,073 | 23,344 | 15,316 | 5,254 | 12,025 |
Depreciation | 2,333 | 3,028 | 3,591 | 3,825 | 3,631 | 4,461 | 4,741 | 5,214 | 6,304 | 6,316 |
R&D expenses | 985 | 1,224 | 1,023 | 1,534 | 1,767 | 1,913 | 2,388 | 2,784 | 2,764 | 2,991 |
Number of employees 10 | 2,112 | 2,304 | 2,488 | 3,009 | 3,283 | 3,435 | 3,781 | 4,075 | 4,383 | 4,904 |
* Figures shown have been rounded down. However, percentages shown have been rounded to the nearest first decimal place. | 6. ROE = profit attributable to owners of parent ÷ average equity at the beginning and end of the fiscal year | |||||||||
Notes: 1. EBITDA = operating income + depreciation | 7. Equity ratio = shareholders' equity ÷ total assets | |||||||||
2. Figures before FY2017 are not retroactively adjusted in accordance with the change of the accounting standard. | 8. Interest coverage ratio = operating cash flow ÷ interest payments. This figure is not presented when operating cash flow is in negative territory. | |||||||||
3. Interest-bearing debt = loans + lease obligations + installment account payable + bonds | 9. D/E ratio = interest-bearing debt ÷ net assets |
4. | Nihon Chouzai conducted a 2-for-1 stock split on October 1, 2015. | 10. | Number of employees indicates the number of full-time employees, but does not include temporary employees such as associate, contract, fixed-term, and part-time employees. |
Net assets per share and net income per share have been calculated as if this stock split had taken place at the beginning of fiscal 2010 | 11. | NHI drug prices were revised in October 2019 due to changes in the consumption tax rate. Due to NHI drug price standard revisions, some dispensing fees have been adjusted and revised. | |
5. | ROA = profit attributable to owners of parent ÷ average of total assets at the beginning and end of the fiscal year |
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
Chouzai Nihon supports that Base
section Data
77 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 78 |
Report of Business Results and Financial Analysis
Business Results
Nihon Chouzai achieved increased sales and profit, as net sales totaled 268,520 million yen (up by 9.3% year on year), operating profit totaled 7,593 million yen (up by 12.8% year on year), ordinary profit totaled 7,405 million yen (up by 21.8% year on year), and profit attributable to owners of parent totaled 6,697 million yen (up by 76.7% year on year). Our business results exceeded the targets of our initial plans both in terms of net sales and profit.
In the Dispensing Pharmacy Business, COVID-19 has caused the number of prescriptions to fall, especially at pharmacies in the Tokyo metropolitan area. Meanwhile, we believe that the impact on net sales was largely offset by an increase in unit price per prescription due to the prolonged period of prescription days. However, we do not expect the impact of COVID-19 to be a temporary phenomenon limited to the fiscal year under review. In the
next fiscal year, we have included various expected impacts in our plans for the Dispensing Pharmacy Business for the three month period from April to June. One factor is decreased gross profit due to declined numbers of prescriptions caused by patients avoiding medical examinations, medical institutions reducing outpatient treatment, and prolonged period of prescription days. Another impact is decreased net sales due to decreased need for dispatching of pharmacists in the Medical Professional Staffing and Placement Business. The reason we have set this period as three months from April to June is that we do not expect the COVID-19 pandemic to wind down by the end of June. Instead, we believe it is reasonably possible to make calculations using the time limit of "declaration of a state of emergency" issued by the Japanese government as an objective indicator when planning for the next fiscal year.
Analysis of Financial Position
Total assets increased by 6,873 million yen, or 3.8%, from 178,677 million yen at the end of the previous fiscal year to 185,551 million yen at the end of the fiscal year under review. Total liabilities increased by 874 million yen, or 0.6%, from 137,604 million yen at the end of the previous fiscal year to 138,478 million yen at the end of the fiscal year under review.
Current assets increased by 7,281 million yen, or 9.1%, from 80,132 million yen at the end of previous fiscal year to 87,414 million yen. Following the expansion of business, cash and deposits increased by 2,505 million yen and accounts receivable-trade increased by 4,338 million yen, while raw materials and supplies decreased by 589 million yen. Therefore, we are conducting thorough inventory management.
Non-current assets decreased by 407 million yen, or 0.4%, from 98,545 million yen at the end of the previous fiscal year to 98,137 million yen. This includes property, plant and equipment,
attributable to an increase in goodwill associated with active M&A initiatives in the Dispensing Pharmacy Business. Investments and other assets increased by 795 million yen, or 6.7%, from 11,833 million at the end of the previous fiscal year to 12,628 million yen. This was mainly attributable to an increase in lease and guarantee deposits resulting from strong new pharmacy openings in the Dispensing Pharmacy Business.
Current liabilities increased by 1,007 million yen, or 1.5%, from 69,100 million yen at the end of the previous fiscal year to 70,107 million yen. This was mainly due to an increase of 5,385 million yen in accounts payable-trade associated with business expansion. Meanwhile, current portion of long-term loans payable decreased by 6,737 million yen, indicating a steady decline.
Non-current liabilities decreased by 133 million yen, or 0.2%, from 68,504 million yen at the end of the previous fiscal year to 68,370 million yen, remaining at nearly the same level as the end
drug of separation true achieving towards Growth services dispensing and prescribing
Business
Business Results of Each Business Segment
which decreased by 3,723 million yen, or 5.3%, from 69,806
of the previous fiscal year.
Dispensing Pharmacy Business
Net sales were 231,001 million yen (up by 10.7% year on year) and operating profit was 9,785 million yen (up by 12.4% year on year), achieving increased sales and profit.
In the same period, we opened 65 new pharmacies and closed
13 pharmacies, resulting in a total of 650 pharmacies (including one retail pharmacy) as of the end of the fiscal year under review. Regarding new pharmacy opening in the fiscal year under review, we were able to maintain an extremely good balance from multi-
Pharmaceutical Manufacturing and Sales Business
Net sales were 43,072 million yen (up by 5.9% year on year), while operating profit was 1,301 million yen (down by 31.0% year on year), achieving increased sales with decreased profit year on year. With regard to net sales, we achieved increased sales year on year due to factors such as favorable sales of new products and the growth of commissioned business, despite the fact that we were in a difficult environment due to a decline in selling prices of existing products associated with NHI drug price revisions
million yen at the end of the previous fiscal year to 66,082 million yen. The fall in property, plant and equipment was primarily caused by the sale of property, plant and equipment for the purpose of improving the efficiency of assets through effective use of management resources, as well as further improving and strengthening financial structure. Intangible assets increased by 2,519 million yen, or 14.9%, from 16,906 million yen at the end of the previous fiscal year to 19,425 million yen. This was mainly
Total net assets increased by 5,999 million yen, or 14.6%, from 41,073 million yen at the end of the previous fiscal year to 47,072 million yen. This was mainly attributable to an increase in retained earnings by 5,947 million yen from the end of the previous fiscal year, as a result of strong efforts by Group companies to increase net sales and improve profitability. As a result, the equity ratio improved by 2.4%, from 23.0% at the end of the previous fiscal year to 25.4%, steadily enhancing our financial base.
ple perspectives in terms of the form of opening (Nihon Chouzai owned and M&A), pharmacy type (hospital-front, and hybrid-type that combines the functions of both a Mentaio pharmacy and a medical center (MC) pharmacy), and pharmacy opening regions.
With regard to net sales, there were several factors for achieving a year on year increase in net sales, including increased prescription unit prices and increased number of prescriptions due
in October 2019. Meanwhile, operating profit decreased year on year due to the significant impact of lower selling prices for existing products due to NHI drug price revisions.
As of the end of the fiscal year under review, we started to offer 22 new items, bringing our total to 681 items for sales. We will continue to focus on increasing the number of in-house approved items, so that we can increase the number of in-house
Status of Cash Flows
Net cash provided by operating activities was 13,192 million yen, | there was a net increase of 2,505 million yen in cash and cash |
net cash used in investing activities was 2,731 million yen, and net | equivalents from the end of the previous fiscal year to 32,254 |
cash used in financing activities was 7,955 million yen. As a result, | million yen at the end of March 2020. |
to increased prescription of expensive pharmaceuticals such as anti-cancer drugs and initiatives taken on family pharmacists and pharmacies. The increased number of prescriptions is achieved based on the strong performance of existing pharmacies, and has been further boosted by the increased number of pharmacies resulting from active M&A initiatives.
With regard to operating profit, we achieved increased profit year on year mainly due to the effect of increased profit from increased sales. Contributing factors include the fact that we were able to raise technical fees as a result of steady efforts made for family pharmacists and pharmacies.
As of March 31, 2020, Nihon Chouzai has reached an average of 89% volume-based use of generic drugs, exceeding the government target of reaching 80% by September 2020. In addition, ratio of pharmacies that provide at-home medical care steadily increased to 89% (the percentage of pharmacies providing 12 or more cases of at-home medical care per year).
manufactured items in order to improve our profitability.
Medical Professional Staffing and Placement Business
Net sales in this business totaled 12,721 million yen (down by 2.8% year on year), with operating profit at 1,851 million yen (up by 25.2% year on year), showing a decrease in sales and an increase in profit year on year.
With regard to net sales, sales declined year on year, due to decreased demand for dispatched pharmacists, which was not offset by the growth of our placement business, despite continuing high demand for medical professionals. Meanwhile, operating profit increased by more than 20% year on year mainly due to the growth of our highly profitable placement business in the fields of pharmacists and doctors.
Cash flows from operating activities
The major source of cash inflow was profit before income taxes of 11,885 million yen due mainly to strengthening of profitability of Group companies, while the primary use of cash outflow was 3,046 million yen in income taxes paid.
Cash flows from investing activities
A major source of cash inflow was proceeds from sales of property, plant and equipment of 9,644 million yen. On the outflow side, the primary use of cash outflow was payment of 5,057 million yen for the purchase of shares of subsidiaries resulting in change in scope of consolidation resulting from active M&A initiatives in the Dispensing Pharmacy Business, as well as payment of 5,624 million yen for the purchase of property, plant and equipment incidental to opening new pharmacies in the Dispensing Pharmacy Business and capital investments in the Pharmaceutical Manufacturing and Sales Business.
Cash flows from financing activities
The primary source of cash inflow was proceeds from long-term loans payable of 9,900 million yen, while cash was used mainly for payments of 16,261 million yen in repayments of long-term loans payable. Our financial structure is steadily enhancing, as large-scale capital investment in the Pharmaceutical Manufacturing and Sales Business peaked out, and interest-bearing debt has decreased due to the increased cash flow from operating activities resulting from improvement in the profitability of Group companies.
performance
Chouzai Nihon supports that Base
section Data
Net sales
(millions of yen) | ||||
300,000 | 268,520 | |||
219,239 | 223,468 | 241,274 | 245,687 | |
200,000 | ||||
100,000 | ||||
0 | ||||
'15 | '16 | '17 | '18 | '19 (FY) |
Operating profit and operating profit margin
(millions of yen) | Operating | Operating profit (%) | ||||
25,000 | 4.8 | profit | margin | 5.0 | ||
4.4 | ||||||
3.8 | ||||||
20,000 | 4.0 | |||||
15,000 | 2.7 | 2.8 | 3.0 | |||
10,000 | 10,489 | 8,519 | 10,587 | 7,593 | 2.0 | |
6,733 | ||||||
5,000 | 1.0 | |||||
0 | 0 | |||||
'15 | '16 | '17 | '18 | '19 | (FY) |
Total assets
(millions of yen) | |||||
200,000 | 178,347 | 186,573 | 178,677 | 185,551 | |
157,609 | |||||
150,000 | |||||
100,000 | |||||
50,000 | |||||
0 | |||||
'15 | '16 | '17 | '18 | '19 (FY) |
EBITDA
(millions of yen) 20,000
15,000 | 14,95113,260 | 15,801 | 13,037 13,909 | ||
10,000 | |||||
5,000 | |||||
0 | |||||
'15 | '16 | '17 | '18 | '19 (FY) |
EBITDA: operating profit + depreciation
D/E ratio | ||
(times) | ||
3.0 | ||
2.1 | 2.4 | |
2.1 | 2.0 | |
2.0 | ||
1.6 | ||
1.0 |
0
'15 | '16 | '17 | '18 | '19 (FY) |
Status of cash flows
(millions of yen) | Cash flows from operating activities | ||||
30,000 | Cash flows from investing activities | ||||
23,141 | |||||
20,000 | 19,327 | ||||
13,572 13,192 | |||||
10,000 | |||||
0 | -940 | ||||
-10,000 | -7,823 | -1,770 | -2,731 | ||
-20,000 | -13,843 | ||||
-30,000 | -28,444 | ||||
-40,000 | |||||
'15 | '16 | '17 | '18 | '19 (FY) |
79 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 80 |
Consolidated Balance Sheet
NIHON CHOUZAI Co., Ltd. and subsidiaries March 31, 2019 and 2020 | (Millions of yen) | (Millions of yen) |
Growth
Assets | FY2018 | FY2019 |
Current assets | ||
Cash and deposits | 29,749 | 32,254 |
Notes receivable - trade | 134 | 181 |
Accounts receivable - trade | 16,249 | 20,587 |
Electronically recorded monetary claims-operating | 1,465 | 1,080 |
Merchandise and finished goods | 22,272 | 22,988 |
Work in process | 1,173 | 1,541 |
Raw materials and supplies | 6,020 | 5,431 |
Other | 3,071 | 3,354 |
Allowance for doubtful accounts | (5) | (6) |
Total current assets | 80,132 | 87,414 |
Non-current assets | ||
Property, plant and equipment | ||
Buildings and structures | 52,956 | 53,112 |
Accumulated depreciation | (20,582) | (22,189) |
Buildings and structures, net | 32,374 | 30,922 |
Machinery, equipment and vehicles | 19,246 | 20,944 |
Accumulated depreciation | (4,539) | (5,860) |
Machinery, equipment and vehicles, net | 14,707 | 15,084 |
Land | 16,961 | 14,653 |
Leased assets | 2,888 | 2,883 |
Accumulated depreciation | (2,094) | (2,228) |
Leased assets, net | 794 | 655 |
Construction in progress | 1,133 | 967 |
Other | 16,399 | 17,947 |
Accumulated depreciation | (12,564) | (14,148) |
Other, net | 3,835 | 3,798 |
Total property, plant and equipment | 69,806 | 66,082 |
Intangible assets | ||
Goodwill | 14,552 | 16,994 |
Other | 2,353 | 2,431 |
Total intangible assets | 16,906 | 19,425 |
Investments and other assets | ||
Investment securities | 17 | 16 |
Long-term loans receivable | 687 | 703 |
Lease and guarantee deposits | 7,357 | 7,765 |
Deferred tax assets | 2,610 | 3,090 |
Other | 1,160 | 1,052 |
Total investments and other assets | 11,833 | 12,628 |
Total non-current assets | 98,545 | 98,137 |
Total assets | 178,677 | 185,551 |
Liabilities | FY2018 | FY2019 |
Current liabilities | ||
Accounts payable - trade | 37,274 | 42,659 |
Electronically recorded obligations - operating | 3,081 | 3,131 |
Short-term borrowings | - | 100 |
Current portion of long-term loans payable | 16,143 | 9,406 |
Lease obligations | 261 | 82 |
Income taxes payable | 1,478 | 4,132 |
Provision for bonuses | 3,023 | 3,318 |
Provision for directors' bonuses | 86 | 76 |
Asset retirement obligations | 10 | 9 |
Other | 7,739 | 7,191 |
Total current liabilities | 69,100 | 70,107 |
Non-current liabilities | ||
Long-term loans payable | 62,470 | 62,963 |
Lease obligations | 436 | 479 |
Long-term accounts payable - installment purchase | 1,349 | 886 |
Provision for directors' retirement benefits | 1,093 | 474 |
Net defined benefit liability | 1,695 | 1,957 |
Asset retirement obligations | 1,145 | 1,289 |
Other | 313 | 318 |
Total non-current liabilities | 68,504 | 68,370 |
Total liabilities | 137,604 | 138,478 |
Net assets | FY2018 | FY2019 |
Shareholders' equity | ||
Capital stock | 3,953 | 3,953 |
Capital surplus | 10,926 | 10,926 |
Retained earnings | 29,815 | 35,762 |
Treasury shares | (3,498) | (3,499) |
Total shareholders' equity | 41,196 | 47,143 |
Accumulated other comprehensive income | ||
Valuation difference on available-for-sale securities | 0 | - |
Remeasurements of defined benefit plans | (127) | (70) |
Total accumulated other comprehensive income | (127) | (70) |
Non-controlling interests | 4 | - |
Total net assets | 41,073 | 47,072 |
Total liabilities and net assets | 178,677 | 185,551 |
drug of separation true achieving towards services dispensing and prescribing
performance Business
Chouzai Nihon supports that Base
section Data
81 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 82 |
Consolidated Statement of Income
NIHON CHOUZAI Co., Ltd. and subsidiaries For the years ended March 31, 2019 and 2020 | (Millions of yen) | |
FY2018 | FY2019 | |
Net sales | 245,687 | 268,520 |
Cost of sales | 203,711 | 222,147 |
Gross profit | 41,975 | 46,372 |
Selling, general and administrative expenses | 35,242 | 38,779 |
Operating profit | 6,733 | 7,593 |
Non-operating income | ||
Interest income | 0 | 0 |
Commission fee | 50 | 41 |
Rent income | 430 | 426 |
Compensation income | - | 80 |
Insurance claim income | - | 88 |
Subsidy income | - | 75 |
Other | 178 | 165 |
Total non-operating income | 659 | 878 |
Non-operating expenses | ||
Interest expenses | 525 | 364 |
Commission fee | 13 | 20 |
Consolidated Statement of Comprehensive Income
NIHON CHOUZAI Co., Ltd. and subsidiaries For the years ended March 31, 2019 and 2020 | (Millions of yen) | |
FY2018 | FY2019 | |
Profit | 3,792 | 6,698 |
Other comprehensive income | ||
Valuation difference on available-for-sale securities | (0) | (0) |
Remeasurements of defined benefit plans, net of tax | 16 | 57 |
Total other comprehensive income | 16 | 57 |
Comprehensive income | 3,809 | 6,756 |
Comprehensive income attributable to: | ||
Comprehensive income attributable to owners of parent | 3,806 | 6,754 |
Comprehensive income attributable to non-controlling interests | 2 | 1 |
Consolidated Statement of Changes in Net Assets
NIHON CHOUZAI Co., Ltd. and subsidiaries | (Millions of yen) | |||||||||
For the year ended | ||||||||||
Shareholders' equity | Accumulated other comprehensive income | |||||||||
March 31, 2019 | Total | Valuation | Remeasure- | Accumulated | Non- | Total | ||||
Capital | Capital | Retained | Treasury | difference on | ments of | other | controlling | |||
shareholders' | net assets | |||||||||
stock | surplus | earnings | shares | available-for- | defined | comprehensive | interests | |||
equity | sale securities | benefit plans | income | |||||||
drug of separation true achieving towards Growth services dispensing and prescribing
performance Business
Rent expenses | 355 | 336 |
Loss on retirement of non-current assets | 221 | 98 |
Other | 198 | 246 |
Total non-operating expenses | 1,315 | 1,066 |
Ordinary profit | 6,077 | 7,405 |
Extraordinary income | ||
Gain on sales of non-current assets | 231 | 6,662 |
Gain on sales of investment securities | 8 | - |
Gain on transfer of business | 1,092 | 34 |
Reversal of provision for retirement benefits for directors (and other officers) | - | 634 |
Total extraordinary income | 1,332 | 7,332 |
Balance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period
3,953 | 10,926 | 26,816 | (47) | 41,648 | 0 | (144) | (144) | 2 | 41,506 |
(791) | (791) | (791) | |||||||
3,790 | 3,790 | 3,790 | |||||||
(3,451) | (3,451) | (3,451) | |||||||
(0) | 16 | 16 | 2 | 19 | |||||
- | - | 2,998 | (3,451) | (452) | (0) | 16 | 16 | 2 | (433) |
3,953 | 10,926 | 29,815 | (3,498) | 41,196 | 0 | (127) | (127) | 4 | 41,073 |
Chouzai Nihon supports that Base
Extraordinary losses | ||
Loss on abandonment of non-current assets | - | 187 |
Loss on sales of non-current assets | 24 | 1 |
(Millions of yen) | ||||||||||
For the year ended | ||||||||||
Shareholders' equity | Accumulated other comprehensive income | |||||||||
March 31, 2020 | Total | Valuation | Remeasure- | Accumulated | Non- | Total | ||||
Capital | Capital | Retained | Treasury | difference on | ments of | other | controlling | |||
shareholders' | net assets | |||||||||
stock | surplus | earnings | shares | available-for- | defined | comprehensive | interests | |||
equity | sale securities | benefit plans | income | |||||||
Data
Impairment loss | 607 | 2,663 |
Loss on sales of investment securities | - | 0 |
Total extraordinary losses | 632 | 2,852 |
Profit before income taxes | 6,777 | 11,885 |
Income taxes - current | 3,308 | 5,544 |
Income taxes - deferred | (324) | (357) |
Total income taxes | 2,984 | 5,186 |
Profit | 3,792 | 6,698 |
Profit attributable to non-controlling interests | 2 | 1 |
Profit attributable to owners of parent | 3,790 | 6,697 |
Balance at beginning of current period
Changes of items during period
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Net changes of items other than shareholders' equity
Total changes of items during period
Balance at end of current period
3,953 | 10,926 | 29,815 | (3,498) | 41,196 | 0 | (127) | (127) | 4 | 41,073 |
(749) | (749) | (749) | |||||||
6,697 | 6,697 | 6,697 | |||||||
(0) | (0) | (0) | |||||||
(0) | 57 | 57 | (4) | 52 | |||||
- | - | 5,947 | (0) | 5,946 | (0) | 57 | 57 | (4) | 5,999 |
3,953 | 10,926 | 35,762 | (3,499) | 47,143 | - | (70) | (70) | - | 47,072 |
section
83 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 84 |
Consolidated Statement of Cash Flows
NIHON CHOUZAI Co., Ltd. and subsidiaries For the years ended March 31, 2019 and 2020(Millions of yen)
FY2018 | FY2019 | |
Cash flows from operating activities | ||
Profit before income taxes | 6,777 | 11,885 |
Depreciation | 6,304 | 6,316 |
Amortization of long-term prepaid expenses | 160 | 169 |
Impairment loss | 607 | 2,663 |
Amortization of goodwill | 1,487 | 1,581 |
Increase (decrease) in allowance for doubtful accounts | (0) | 0 |
Increase (decrease) in provision for bonuses | 245 | 283 |
Increase (decrease) in provision for directors' bonuses | (50) | (10) |
Risks of Businesses
Of the matters regarding business status and accounting status described in the securities report, major risks which the management has judged as likely to have a significant impact on the financial position, operating results, and cash flow of consolidated companies are described below.
The Nihon Chouzai Group recognizes these risks and we have a policy to appropriately handle the risks in case the risks ma- terialize; however, the decision for investment should be made after carefully considering this section and contents other than this section in this document.
The matters about the future described below are decided by the Group as of the date of submission of the securities report, and the matters may differ from actual results due to various factors.
drug of separation true achieving towards Growth services dispensing and prescribing
Increase (decrease) in net defined benefit liability | 188 | 122 |
Increase (decrease) in provision for directors' retirement benefits | 45 | (726) |
Interest and dividend income | (2) | (0) |
Interest expenses | 525 | 364 |
Loss (gain) on sales of non-current assets | (206) | (6,661) |
Loss (gain) on sales of investment securities | (8) | 0 |
Loss (gain) on transfer of business | (1,092) | (34) |
Decrease (increase) in notes and accounts receivable-trade | 3,485 | (2,902) |
Decrease (increase) in inventories | (1,314) | 74 |
Increase (decrease) in notes and accounts payable-trade | 342 | 3,486 |
Decrease (increase) in prepaid expenses | (74) | (149) |
Increase (decrease) in accrued expenses | (82) | (51) |
Decrease (increase) in accounts receivable-other | 998 | 422 |
Increase (decrease) in accounts payable-other | (791) | (225) |
Other, net | 1,460 | 6 |
Subtotal | 19,004 | 16,615 |
Interest and dividend income received | 2 | 0 |
Interest expenses paid | (525) | (377) |
Income taxes paid | (4,908) | (3,046) |
Net cash provided by (used in) operating activities | 13,572 | 13,192 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (5,303) | (5,624) |
Proceeds from sales of property, plant and equipment | 1,723 | 9,644 |
Purchase of intangible assets | (591) | (606) |
Proceeds from sales of investment securities | 10 | 0 |
Increase in long-term prepaid expenses | (123) | (92) |
Payments for transfer of business | (368) | (771) |
Proceeds from transfer of business | 4,093 | 52 |
Purchase of shares of subsidiaries resulting in change in scope of consolidation | (785) | (5,057) |
Payments for loans receivable | (92) | (76) |
Collection of loans receivable | 85 | 85 |
Payments for lease and guarantee deposits | (699) | (626) |
Proceeds from collection of lease and guarantee deposits | 281 | 302 |
Other, net | (0) | 37 |
Net cash provided by (used in) investing activities | (1,770) | (2,731) |
Cash flows from financing activities | ||
Net increase (decrease) in short-term borrowings | - | 100 |
I. Matters about Each Business Segment
1. Dependency on interest-bearing debts
The Nihon Chouzai Group opens new stores in the dispensing pharmacy business and makes capital investments in the pharmaceutical manufacturing and sales business by raising funds from mainly loans payable. We will continue to open new stores and make capital investments by loans payable and other borrowing, in that case interest expenses may increase. Additionally, in case of failure to gain enough cash from management in each business operation, due to some problems such as difficulty in gaining additional loans payable, business plans or performance of the Group may be affected. Furthermore, the rates of most loans payable are a fixed interest rate at this point; however, an increase of interest expenses due to rising interest rates may affect the performance of the Group.
2. Personal information management
The Nihon Chouzai Group handles personal information such as medical history and medication history of customers, and personal history of temporary employees in the dispensing pharmacy business and the medical professional staffing and placement busi- ness. In the Group, we strictly manage personal information. In case of leaking the personal information, there is a possibility that we are liable to pay a larger amount of compensation for damages when compared to the case of the leakage of general personal information such as addresses and names. Additionally, regarding protection of personal information, in case the entities handling personal information including Nihon Chouzai and consolidated subsidiaries provide the personal information to a third party without obtaining the consent of the person, administrative sanctions shall be imposed and, in some cases, criminal penalties may be imposed by "Act on the Protection of Personal Information." Moreover, most of our employees who handle personal information in dispensing pharmacies are pharmacists and serious confidentiality obligation is legally imposed on pharmacists (Article 134 of the Penal Code). In the Group, therefore, in case information leakage occurs, the performance of the Group may be affected by a large amount of reparation payment, administrative sanctions, and a decrease in credibility from existing customers and society accompanying the payment and sanctions.
3. Social insurance contributions
The Nihon Chouzai Group has all the people who are eligible for social insurance join in the insurance. In case of an increase in insurance rate due to system amendment such as reform of medical care system for the elderly and improvement of employment insurance, and a significant increase in the amount of contributions by the company due to the change in the scope of insured person regarding a temporary employee, the performance of the Group may be affected.
4. Influence by disasters and other emergencies
The Nihon Chouzai Group's performance may be affected by factors including the weather, such as excessively hot or cold summers, large-scale natural disasters, and pandemics of serious infectious diseases. In our pharmaceutical manufacturing and sales business, we have production bases distributed between Tsukuba City, Ibaraki Prefecture and Tokushima City, Tokushima Prefecture, and Group companies have taken measures such as formulating business continuity plans in case of disasters and other emergencies. However, we recognize that it is necessary to take more concrete measures, since the headquarters functions of each company are mainly consolidated in Chiyoda ward, Tokyo.
5. Impact of COVID-19
The Nihon Chouzai Group's performance may be affected by the spread of COVID-19. Especially in our dispensing pharmacy busi- ness, the number of prescriptions may decrease and mainly affect its profitability because of reasons such as patients avoiding medical examinations, as well as medical institutions limiting outpatient treatment and the prolonged period of prescription days.
performance Business
Chouzai Nihon supports that Base
section Data
Proceeds from long-term loans payable | 10,625 | 9,900 |
Repayments of long-term loans payable | (15,694) | (16,261) |
Repayments of lease obligations | (311) | (266) |
Repayments of installment payables | (893) | (677) |
Purchase of treasury shares | (3,451) | (0) |
Cash dividends paid | (791) | (749) |
Net cash provided by (used in) financing activities | (10,516) | (7,955) |
Net increase (decrease) in cash and cash equivalents | 1,284 | 2,505 |
Cash and cash equivalents at beginning of period | 28,464 | 29,749 |
Cash and cash equivalents at end of period | 29,749 | 32,254 |
- Dispensing Pharmacy Business
1. Legal regulations for dispensing pharmacy business
(1) Opening dispensing pharmacies
When Nihon Chouzai opens and manages pharmacies, in case we cannot receive required authorization, designation, registra- tion, or license by each prefecture, in case we fail to proceed for renewal and registration/notification, in case we violate related laws and regulations, or in case these laws and regulations are amended, our store opening plans and performance may be affected.
Main relevant legal regulations are "License for pharmacy," "Health insurance pharmacy designation" and others, and we obtain required permission in all stores.
Regarding reasons for disqualification for permission, they do not apply to us as of the date of submission of the securities report.
(2) Securing pharmacists
Regarding dispensing pharmacies, Article 19 of the Pharmacists Act forbids, in principle, dispensing by anyone other than
85 NIHON CHOUZAI CORPORATE REPORT 2020
NIHON CHOUZAI CORPORATE REPORT 2020
86
Risks of Businesses
pharmacists. By "Act on Securing Quality, Efficacy, and Safety
3. Business development
III. Pharmaceutical Manufacturing and Sales Business
towards Growth prescribing
of Products including Pharmaceuticals and Medical Devices" ("Pharmaceuticals and Medical Devices Act" is used as an abbreviation. This was called "Pharmaceutical Affairs Act" before amendment) and an Ordinance of the Ministry of Health, Labour, and Welfare, not only pharmacist arrangement in a pharmacy, but also the number of arranged pharmacists is strictly regulated, and it is required to arrange one pharmacist per 40 sheets of received prescriptions a day. Therefore, in case of failure to secure the required number of pharmacists, our store opening plans and performance may be affected.
(3) Dispensing operation
Nihon Chouzai takes various measures to prevent dispensing errors. For example, we introduce automatic check systems for dangerous drugs that produce serious symptoms due to a dispensing error, and pharmacists intensively conduct inspections for the dangerous drugs. In addition, we take measures that mitigate an impact to performance by signing up "Pharmacist liability insur- ance" at all stores just in case. However, in case a dispensing error occurs resulting in a large amount of reparation payment and a decrease in credibility from existing customers and society, our performance may be affected.
2. The business environment in the Dispensing Pharmacy Business
(1) Trends in the rate of separation of prescribing and dispensing
The separation of prescribing and dispensing has been promoted as a national policy to improve the quality of medical care by devoting medical institutions to medical practices such as medical examinations, and having dispensing pharmacies conduct medication history management and medication consulting. In case of decline in the growth rate of separation of prescribing and dispensing in the future, the performance of the Nihon Chouzai Group may be affected.
(2) Reform of the medical care system
- Revisions of the NHI Drug Price Standards and dispensing fees
The dispensing sales in the dispensing pharmacy business, which is the core business of the Nihon Chouzai Group, are the total amount of drug income based on the drug price standards regulated primarily by Ministry of Health, Labour, and Welfare notifications, and the income from technical dispensing based on dispensing fee points regulated by Ministry of Health, Labour, and Welfare notification acts. Therefore, in case the NHI drug price standards are reduced by the revisions of NHI drug price stan- dards, while the actual purchase price is not reduced to the
Regarding the dispensing pharmacy business, we have a policy to increase the number of stores centered on Nihon Chouzai phar- macies, but also including acquisition of stores. In case we cannot open or acquire stores as planned due to not being able to secure the property that conforms to the conditions of store opening or acquisition, in case initially planned sales cannot be posted after opening a store due to the state of competitions, in case store sales decrease due to relocation or discontinuance of medical institutions, or in case store operation cannot be continued or deposits and guarantees cannot be repaid due to business circumstances of a property owner, business plans or performance of the Nihon Chouzai Group may be affected.
4. Seasonal variation of sales
The sales in the dispensing pharmacy business account for a large proportion in the sales composition of the Nihon Chouzai Group, and the performance changes of the dispensing pharmacy business greatly affect the performance changes of the Group.
Regarding the dispensing pharmacy business, depending on increasing or decreasing prescriptions for influenza, etc., which prevails in winter, and pollinosis (allergic rhinitis), which mainly develops in the beginning of spring, the sales may be affected.
5. Impacts from consumption taxes
In the dispensing pharmacy business, dispensing sales are exempted from taxes by the Consumption Tax Act, whereas the purchase of pharmaceuticals is taxed by the Act. In the dispensing pharmacy business, Nihon Chouzai is the final tax payer, and the consumption taxes we paid to suppliers are included in the section of selling, general, and administrative expenses. When the consumption tax rate was revised in the past, increased amount of the consumption tax rate was taken into account on the occasion of the NHI drug price standard revisions. However, in the future, if the consumption tax rate is revised and the NHI drug price standards of drugs are not linked to the variability of the consumption tax rate, the performance of the Nihon Chouzai Group may be affected.
6. Impairment risk of goodwill
In the dispensing pharmacy business, M&A have become active in the dispensing pharmacy industry due to factors such as the shortage of pharmacists in small and medium sized pharmacies, the shortage of successors, and the lack of capability to adapt to ICT. Nihon Chouzai Group has positioned the use of M&A as an effective means of expanding the operation of the dispensing pharmacy business, and is working actively on M&A on the premise of sufficient scrutiny and examination of profitability and other factors for each case. The balance of goodwill increased by 2,442 million
1. Legal regulations for Pharmaceutical Manufacturing and Sales Business
Regarding the Pharmaceutical Manufacturing and Sales Business of the Group, we mainly manufacture generic drugs at our own factory. The legal risks involved in the product liability, and the risk factors for this business including the legal regulations regarding manufacturing and sales of the medicines for medical treatment may greatly affect the performance of the Group.
Manufacturing and sales of the medicines for medical
treatment is regulated by laws and regulations related to the Pharmaceuticals and Medical Devices Act, and it is required to receive authorization, designation, registration, or license by each prefectural governor and submit notification. The main things are "First-class Marketing Authorization," "Second-class Marketing Authorization," and "Wholesale Distribution License" for medicines and others.
In case there is violation of laws and regulations, suspension of business and revocation of approval and authorization are conducted by the competent authorities. This may affect the performance of the Group. Additionally, regarding the developed and applied manufacturing and selling items in this business, we have obtained the approval for each item from the Minister of Health, Labour and Welfare. However, in case of failure to obtain these approvals as planned, the performance of the Group may be affected.
2. The business environment in the pharmaceutical manufacturing and sales business
Regarding the medicines for medical treatment, according to the NHI Drug Price Standards established by the Ministry of Health, Labour and Welfare, drug prices are established, which is the basis for the drug cost calculation in dispensing fees at medical institutions and dispensing pharmacies. In order to control increasing medical costs influenced by Japan's financial reforms, the government has decided on a policy to transition from making biennial revisions to making annual revisions for NHI drug price standards, which tend to decline with each revision. This trend of revisions to NHI drug price standards may affect the Group's product prices and potentially impact the performance of our pharmaceutical manufacturing and sales business. Additionally, in the manufacturing and sales market for generic drugs mainly handled in the business, there is the possibility that competition may intensify in the future and affect the performance of the Group.
3. Outsourcing of pharmaceutical manufacturing
In this business, in accordance with the manufacture and sales approval system based on the revised Pharmaceutical Affairs Act (the present Pharmaceuticals and Medical Devices Act) enforced in April 2005, we distribute products to the market in the form of outsourcing the manufacturing section of generic drugs manufacture and sales with the national approval, or in the form of selling the drugs, which we have the manufacture and sales approval, through our own distribution channel.
We conclude the continuous contracts for the product supply with several generic drug manufacturers; however, there is a possibility of not being able to supply products due to contract termination or contract changes of a product for some reasons of a manufacturing subcontractor. In these cases, the performance of the Group may be affected.
4. Patent litigation
In this business, we develop products by paying full attention to intellectual property rights and the Unfair Competition Prevention Act; however, there are cases where an original drug manufacturer files a patent lawsuit because of the characteristic particular to the generic drug product. If such situation occurs, the performance of the Group may be affected.
5. Product recall and discontinuation of sales
Generic drugs have the use results in which the efficacy and safety had been confirmed throughout a period of time in the original drug. In addition to that, they go on sale after reexamination, so it is considered that the occurrence risk of a serious side effect other than that of an original drug is extremely small. However, in case unexpected new side effects occur or an accident including mixture of impurities into a product, we may be forced to recall products or discontinue sales. This may affect the performance of the Group.
6. Purchase of raw materials and merchandise
At suppliers of raw materials and merchandise, in case it becomes impossible for us to purchase raw materials and merchandise due to regulation problems, disasters including fire/earthquakes, and accidents during transportation, the production and supply of products may stop. This may affect the performance of the Group.
drug of separation true achieving services dispensing and
performance Business
Chouzai Nihon supports that Base
Data
same degree, or in case dispensing fee points are reduced by the prescription dispensing fee revision, the performance of the Group
yen from the end of the previous consolidated fiscal year to 16,994 million yen at the end of the current consolidated fiscal year. If the
IV. Medical Professional Staffing and Placement Business
section
may be affected.
[2] Other reforms of systems
In recent years, various system reforms have been made to simultaneously curb rising medical costs and provide high-quality medical services. Depending on trends in various system reforms, it is possible that the performance of the Group may be affected by a decrease in the number of patients and other factors.
actual number of prescriptions made at stores acquired through M&A, which is an important assumption for looking at future cash flows, is below goals at the time of acquisition, and the number is subject to impairment, it may affect the performance of the Group, including profit attributable to owners of parent company. Nihon Chouzai Group will scrutinize matters with greater precision, including the profitability of each project, and strengthen efforts such as training and streamlining of human resources after acquisition.
1. Legal regulations for Medical Professional Staffing and Placement Business
Regarding the Medical Professional Staffing and Placement Business of the Group, permissions from the Ministry of Health, Labour and Welfare, such as "License for General Worker Dispatching Undertakings" and "License for Employment Placement Businesses" are required. This business is also regulated by "A guideline on measures to be taken by dispatching business operators" and "A guideline for employment placement business providers, persons conducting recruitment of workers, commis-
sioned recruiters, and labor supply business providers to take appropriate actions regarding equal treatments, clear indication of working conditions, treatment of personal information of job seekers, responsibility of employment placement business provid- ers, and accurate indication of details of recruitment" established by the Ministry of Health, Labour and Welfare. In case the permissions were revoked due to violation of the laws and regulations, and the guidelines, the performance of the Nihon Chouzai Group may be affected.
87 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 88 |
Company Profile
(As of March 31, 2020)
History
Growth
Company Profile
Trade name
NIHON CHOUZAI Co., Ltd.
Established
March 1980
Headquarters
37F GranTokyo North Tower, 1-9-1, Marunouchi, Chiyoda-ku, Tokyo 100-6737
+81-(0)3-6810-0800 (general)
Capital
3,953.02 million yen
Consolidated net sales
268,500 million yen (FY2019)
Consolidated Number of employees
Regular employees: 4,904
Part-time employees and others: 811
- Part-timeemployees and others are yearly average number of persons employed based on 8-hour conversion.
Main financing banks
Mizuho Bank, Ltd., Sumitomo Mitsui Banking Corporation, Mitsubishi UFJ Trust and Banking Corporation, MUFG Bank, Ltd., Resona Bank, Ltd.
Our business
Management of health insurance dispensing chain pharmacies
Shareholder Information
Total number of authorized shares
44,192,000 shares
Total number of issued shares
16,024,000 shares
Number of shareholders
5,917 shareholders
Annual general meeting of shareholders
June
Administrator of shareholder registry
Mitsubishi UFJ Trust and Banking Corporation 1-1,Nikko-cho, Fuchu City, Tokyo 183-00440120-232-711(toll-free)
Stock exchange for listing
Tokyo Stock Exchange (TSE) First Section
Securities code
3341
Settlement date
March 31
April 1974 | Prescription fee was raised from 100 yen to 500 yen due to revisions of medical treatment fee (The first year |
of separation of prescribing and dispensing) | |
March 1980 | Established Nihon Chouzai Co., Ltd. in Sapporo City to manage dispensing pharmacies |
April 1980 | Opened the first pharmacy, Nihon Chouzai Yamahana dispensing pharmacy, in Chuo-ku, Sapporo City |
August 1987 | Opened a Tokyo branch |
October 1993 | Opened a Yokohama branch |
January 1994 | Opened a Tohoku branch |
Established the subsidiary Miyagi Nihon Chouzai Co., Ltd. (The current consolidated subsidiary, Medical Resources | |
Co., Ltd.) | |
April 1995 | Relocated the headquarters to Tokyo. Opened a Sapporo branch and a Kyushu branch |
December 1999 | Opened dispatching pharmacists because of liberalization in principle for worker dispatching business (The |
amendment of Worker Dispatching Act) | |
February 2000 | Nihon Chouzai Pharma Staff Co., Ltd. (The current consolidated subsidiary, Medical Resources Co., Ltd.) was established |
(Changed the trade name and the purpose of Miyagi Nihon Chouzai Co., Ltd.) | |
October 2000 | Opened an Osaka branch |
April 2001 | Opened a Nagoya branch and a Hiroshima branch |
September 2004 | Listed on the TSE Second Section |
January 2005 | Established Nihon Generic Co., Ltd. as a subsidiary (The current consolidated subsidiary) |
April 2005 | By the revised Pharmaceutical Affairs Act (the present Pharmaceuticals and Medical Devices Act), manufacture |
and sales of pharmaceuticals by the total outsourced manufacturing became possible | |
September 2006 | Listing upgraded to the TSE First Section |
October 2006 | Established Medical Resources Co., Ltd. as a subsidiary (The current consolidated subsidiary) |
November 2007 | Relocated the headquarters (1-9-1, Marunouchi, Chiyoda-ku, Tokyo) |
drug of separation true achieving towards services dispensing and prescribing
performance Business
Chouzai Nihon supports that Base
IR Calendar | |||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||
Apr. | May | Jun. | Jul. | Aug. | Sep. | Oct. | Nov. | Dec. | Jan. | Feb. | Mar. |
First Quarter End | Record date for | Third Quarter End | Record date | ||||||||
General Meeting of | interim dividend | Shareholder | for dividend | ||||||||
Shareholders / | Second Quarter End | Announcement | newsletters | Announcement | The end of | ||||||
Announcement | Shareholder | Announcement | distribution | the fiscal year | |||||||
of financial | newsletters | of first quarter | of second quarter | of third quarter | |||||||
results | distribution | financial results | financial results | financial results | |||||||
Holding of financial | Holding of second quarter | ||||||||||
results meeting | financial results meeting |
July 2008 | Merged Medical Resources into Nihon Chouzai Pharma Staff (with Medical Resources as the surviving company) |
October 2010 | Launched the manufacture of generic drugs at Nihon Generic's Tsukuba plant |
March 2011 | Achieving the opening of a pharmacy in every prefecture in the country |
January 2012 | Established Japan Medical Research Institute Co., Ltd. as a subsidiary (The current consolidated subsidiary) |
April 2012 | Opened a Kitakanto branch, a Higashikanto branch, a Kyoto branch, and a Kobe branch |
April 2013 | Made a subsidiary of Choseido Pharmaceutical Co., Ltd. (The current consolidated subsidiary) |
April 2014 | Choseido Pharmaceutical Plant No. 2 completed |
October 2016 | Opened Sapporo Logistics Center, the fourth logistics center established following those in East Japan, West Japan, and |
Kanto | |
February 2017 | Formed business partnership with Dai-ichi Life Insurance Company, Limited |
March 2018 | Tsukuba Plant No. 2 of Nihon Generic Co., Ltd. completed |
June 2018 | Tsukuba Research Laboratory of Nihon Generic Co., Ltd. relocated to Tsukuba Northern Industrial Park |
July 2018 | Expanded both the East Japan Logistics Center and West Japan Logistics Center, and closed the Kanto Logistics Center |
March 2019 | Headquarter of Medical Resources Co., Ltd. relocated to 1-9-1, Marunouchi, Chiyoda-ku, Tokyo |
The law amendment or system changes are written in blue.
section Data
89 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 90 |
Stock Information
(As of March 31, 2020)
Reference Pages for Major Contents
Growth
Distribution of Shares for Each Owner
Major Shareholders (Top 10 Shareholders)
Content | Sections of this report | Web links |
https://www.nicho.co.jp/corporate/ | ||
towards prescribing
Foreign companies 1,564,802 shares 9.76% Financial institutions 1,170,700 shares 7.31%
Non-financial companies and other companies 1,310,220 shares 8.18%
Securities companies 65,821 shares 0.41%
(Notes) 1. The 1,030,417 treasury shares owned by Nihon Chouzai are included in Individuals and others.
2. The ratio is rounded off to 2 decimal places.
Individuals and others
11,912,457 shares
74.34%
Number | Investment | |
Names of the shareholders | of owned | |
ratio | ||
shares | ||
(%) | ||
(Shares) | ||
Hiroshi Mitsuhara | 4,680,000 | 31.21 |
Yosuke Mitsuhara | 3,320,000 | 22.14 |
Max Planning, Inc. | 1,120,000 | 7.47 |
Nihon Chouzai Employee shareholding | 452,600 | 3.02 |
association | ||
Yoko Mitsuhara | 400,000 | 2.67 |
The Master Trust Bank of Japan, Ltd. | 327,200 | 2.18 |
(Trust account) |
Corporate philosophy | Corporate philosophy | Company Profile | Corporate philosophy |
https://www.nicho.co.jp/corporate/profile/philosophy/ | |||
Company Profile | Nihon Chouzai Group | ||
Business characteristics and | Business model | https://www.nicho.co.jp/corporate/profile/group/ | |
strengths | Business performance | Businesses | |
https://www.nicho.co.jp/corporate/business/ |
drug of separation true achieving services dispensing and
Trend of Holding Stock Ratio
Ratio for number of shares | Mar.2019 | Mar.2020 |
Individuals and others | 74.94 | 74.34 |
Securities companies | 0.71 | 0.41 |
Non-financial companies and other companies | 8.17 | 8.18 |
Financial institutions | 8.03 | 7.31 |
Foreign companies | 8.15 | 9.76 |
Trend of Share Price
(yen)
8,000
6,000
Keiko Yeow | 269,300 | 1.8 |
STATE STREET BANK AND TRUST CLIENT | 210,900 | 1.41 |
OMNIBUS ACCOUNT OM02 505002 | ||
Japan Trustee Services Bank, Ltd. | 180,700 | 1.21 |
(Trust account 9) | ||
Japan Trustee Services Bank, Ltd. | 161,900 | 1.08 |
(Trust account) | ||
(Notes) 1. The investment ratio was calculated excluding the number of treasury stock (1,030,417 shares).
2. The investment ratio is rounded down to 2 decimal places.
Management objectives | Toward a Long-term Vision for 2030 | ||
IR information | Management information | ||
Management strategy | Message from the President | Message from the President | |
https://www.nicho.co.jp/corporate/profile/topmessage/ | |||
Main Prescription Dispensing Fee | IR information | Management information | |
Relevant laws and | Business environment and issues to be addressed | ||
Revisions | |||
regulations | Explanation of Terminology | by the Company | |
https://www.nicho.co.jp/corporate/ir/management.html | |||
Relationship with | Social | Company Profile | |
Social Contribution Activities by Nihon Chouzai | |||
stakeholders | Human | ||
https://www.nicho.co.jp/corporate/profile/contribution/ | |||
performance Business
that Base
4,000 |
2,000 |
0 | ||||||||||||||||||||||||||||||||||||||||||||||||||
4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
Trend of Turnover
(Thousand shares)
3,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||
2,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
1,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||
1,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||
500 | ||||||||||||||||||||||||||||||||||||||||||||||||||
0 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 11 12 | 1 | 2 | 3 |
2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
The Company split the share in a ratio of 1:2 on October 1, 2015. The share prices before September 2015 are adjusted with the assumption that the share splitting was conducted at the end of March 2014.
Stock Price Index
PER (Price earnings ratio) | PBR (Price-book value ratio) | Market capitalization | ||
(times) | (times) | (billions of yen) | ||
20 | 3 | 80 |
15.4 | 2.3 | 2.1 | 64.4 | 60.6 | 60.0 | ||||||
15 | 60 | 53.6 | |||||||||
13.1 | 2 | 1.6 | 1.8 | 53.0 | |||||||
9.3 | |||||||||||
10 | 8.8 | 1.4 | 40 | ||||||||
7.4 | |||||||||||
5 | 1 | 20 | |||||||||
0 | 0 | 0 | |||||||||||||||
'15 | '16 | '17 | '18 | '19 (FY) | '15 | '16 | '17 | '18 | '19 (FY) | '15 | '16 | '17 | '18 | '19 (FY) |
IR information | Management information | ||
Corporate governance | Corporate governance | Corporate governance | |
https://www.nicho.co.jp/corporate/ir/governance.html | |||
IR information | Financial highlights | ||
Financial data | Financial highlights | https://www.nicho.co.jp/corporate/ir/highlight.html | |
Data section | IR information | IR library | |
https://www.nicho.co.jp/corporate/ir/irlibrary.html
For further information, please contact
1-9-1 Marunouchi, Chiyoda-ku Tokyo
100-6737, Japan
NIHON CHOUZAI Co., Ltd.
Corporate Planning / Investor Relations
Corporate Communications Div.
+81-(0)3-6810-0800 (Main No.) URL : https://www.nicho.co.jp
Chouzai Nihon supports
section Data
91 NIHON CHOUZAI CORPORATE REPORT 2020 | NIHON CHOUZAI CORPORATE REPORT 2020 92 |
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Disclaimer
NIHON CHOUZAI Co. Ltd. published this content on 01 September 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 August 2020 15:34:17 UTC