The Alfresa Group's Value Creation

Progress in Value Creation and the Strengths We Have Cultivated

At the outset, the Alfresa Group had two businesses: the Ethical Pharmaceuticals Wholesaling Business and Manufacturing Business. To take our Ethical Pharmaceuticals Wholesaling Business nationwide, we grew through consolidations and mergers. Later, the Company restructured the Self-Medication Products Wholesaling Business, reinforced the Manufacturing Business, expanded the dispensing pharmacy business, spun off the SPD business to a wholly owned sub- sidiary, and expanded its network in the diagnostic reagent wholesaling business, molding itself into today's Alfresa Group.

No.1net sales

in the ethical pharmaceuticals ­ wholesaling industry

Overview of the Parent Organizations

Prior to the Group's Foundation (Partial)

1918

Yokoi Pharmacy

1948

Operating income

¥12.4 billion

Showa Pharmaceuticals (Aichi Prefecture)

AZWELL Inc.

2003

1952

Alfresa Holdings

¥1,066.5 billion

Corporation

Nippon Shoji Kaisha, Ltd. (Osaka Prefecture)

established

1920

Nakashima Shigeru Shoten

1964

Net sales

Fukujin Co., Ltd.

(Tokyo Prefecture)

Sales / Operating Income

Development of the Self-Medication Products Wholesaling Business and the

Manufacturing Business based on the Ethical Pharmaceuticals Wholesaling Business

¥2,744.0 billion

¥32.0

billion

Leveraging Our

Strengths to

Create Value

Business alliances with wholesalers of foods, cosmetics, daily necessities, etc., and

expansion into healthcare and medical-related domains such as the dispensing pharmacy business

1938

2004.3

2005.3

2006.3

2007.3

2008.3

2009.3

2010.3

2011.3

2012.3

2013.3

2014.3

2015.3

2016.3

2017.3

2018.3

2019.3

2020.3

2021.3

2022.3

2023.3

2024.3

Fukujin Pharmacy

(forecast)

History of the Alfresa Group

Until September 2003

Formation of the Pharmaceuticals Wholesaling Distribution System

As products that play an essential role in human life, pharmaceutical products need to be delivered on time where needed. Most pharmaceuticals wholesaling compa- nies, therefore, started out as sales agencies for designated ethical pharmaceuticals manufacturers, and over many years they have built close relationships in every area to form a distribution network for ethical pharmaceuticals wholesaling.

September 2003

Establishment of Alfresa Holdings Corporation

Alfresa Holdings Corporation was established as the joint holding company of Fukujin Co., Ltd., based in the Kanto region, and AZWELL Inc., based in the Tokai and Kansai regions, marking the start of its journey as a next-generation group of pharmaceuticals wholesaling companies that contribute to human health by providing the products and services their customers need under the vision of becoming a Healthcare Consortium.

March 2009

Becoming Japan's Top Wholesaler Group*1 for Ethical Pharmaceuticals

Leading regional companies that share our vision for a Healthcare Consortium joined the Alfresa Group, which became Japan's top wholesaler of ethical pharmaceuticals after building a nationwide distribution network. This distribution network played a vital role in ensuring the steady supply of pharmaceuticals in society after the Great East Japan Earthquake in 2011.

*1 Source: Internal data

At present

Expansion into Domains Related to Health and Medicine

The Alfresa Group meets changing market and customer needs with its supply chain for pharmaceuticals and other products, spanning produc- tion, wholesale, and retail sales. In addition, the Group has built collaborative and cooperative relationships with companies outside the Group in different sectors to diversify its business domains and create new value- added services.

Strengths We Have

Cultivated in the

Ethical

Pharmaceuticals

Wholesaling

Business

A Highly Functional Logistics Infrastructure

The Alfresa Group sources products totaling around 350,000 stock-keeping units (SKUs) from approximately 1,000 companies in the ethical pharmaceutical wholesaling business. We have 16 logistics centers located across Japan's most populous prefectures. We also have four urban pharmaceutical centers in areas with high concentrations of medical institutions. This nationwide network enables us to supply safe, secure, high-quality pharmaceuticals to medical institutions across Japan at all times.

  • Steady supply system with 209 distribution bases across Japan
    • 16 large-scale distribution centers across Japan
    • 4 urban pharmaceutical centers across Japan
    • 9 facilities for the management
      and storage of regenerative medicine products across Japan
  • 2 regenerative medicine distribution stations located in the east and west parts of Japan, respectively
  • Figures for Ethical Pharmaceutical Wholesale Business

Abundant Human Capital

The people who work with us at the Alfresa Group enter the Company with a sense of mission to support the social infrastructure-a focus that is developed further over the course of their careers.

  • Our approximately 2,800 marketing specialists*2 involved in the ethical pharmaceutical wholesaling business maintain strong contacts with medical institutions and other customers, visiting them in person and conducting sales remotely (e.g., online). Of this number, some 2,000 are certified as medical management specialists, who help to realize the Community Health Care Vision by connecting medical practitioners, patients, and family members. In addition, around 2,000 sales assistants support the stable supply of pharmaceuticals.

*2 Marketing specialists (MSs): Sales personnel who have special knowledge about products and services in the pharmaceuticals wholesaling business

• Approximately 2,800 marketing specialists

• Over 2,000 medical management specialists

• Over 2,000 sales assistants

Strong Relationships of Trust with Suppliers

One of the Alfresa Group's strengths is the strong relationships of trust it has built with medical institutions, as well as with pharmaceutical companies and other suppliers. Based on long-standing,trust-based business relationships cemented by its marketing specialists, the Alfresa Group has earned the leading share of the Japanese market in the ethical pharmaceuticals wholesaling industry. The Group's many functions also underpin robust relationships with numerous business partners. These functions include a nationwide sales network, the ability to make pharmaceutical proposals, fair pricing based on product value, high-quality logistics, and the provision of information to business partners.

  • The number-one share of sales in Japan
  • Over 160,000 customer institutions
  • Approximately 1,000 companies in the ethical pharmaceuticals wholesaling business

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Alfresa Group Integrated Report 2023

Alfresa Group Integrated Report 2023

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Alfresa Holdings Corporation published this content on 24 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 October 2023 08:19:35 UTC.