Slides
Page 1
Announced on November 13, 2025 Financial Results Briefing for the 2Q Period Ended September 30, 2025 Suzuken Co., Ltd. [Stock Code: 9987]
Page 2
© 2025 SUZUKEN CO.,LTD. 2 Table of Contents Ⅰ. Review of 2Q Period Ended September 30, 2025 Ⅱ. Financial Reports ・ Overview of Financial Reports for 2Q Period Ended September 30, 2025 Ⅲ. Toward Realizing a Health Creation Enterprise ・ Initiatives for Ambidextrous Management
Page 3
© 2025 SUZUKEN CO.,LTD. 3 Ⅰ. Review of 2Q Period Ended September 30, 2025
Page 4
© 2025 SUZUKEN CO.,LTD. 4 ✓ We are continuously advancing initiatives to realize Cost of Capital and Stock Price-Conscious Management. ✓ We practice ambidextrous management by transforming existing businesses and creating new ones. ✓ By maximizing profits and optimizing capital efficiency, we aim to achieve an ROE of over 8% for two consecutive years. Stock Price and PBR Trends During the Current Medium-Term Management Plan Period Ⅰ. Review of 2Q Period Ended September 30, 2025 ¥3,370 yen (PBR 0.67) FY2023 ・ Share repurchase of approx. ¥25 billion ・ Dividend increase << ¥72 ¥80 >> FY2024 ・ Share repurchase of approx. ¥28 billion ・ Dividend increase << ¥80 ¥100 >> FY2025 （Planned） ・ Share repurchase of approx. ¥26 billion ・ Dividend maintained << ¥100 ¥100 >> Total returns over the three years of the current medium-term management plan: approx. 100 billion yen (approx. 21 billion yen in dividends and approx. 79 billion yen in share repurchase) ¥5,949 as of November 10 (PBR 1.02) May 2023 ・ Formulation of the medium- term management plan ・ Formulation of the shareholder return policy (Share price: yen) PBR of 1.0 （¥5,800.93 per share)
Page 5
© 2025 SUZUKEN CO.,LTD. 5 ✓ Implemented the reduction of four cross-held securitiestotaling approx. 17.9 billion yen<disclosed on October 15, 2025> ✓ Total reduction over three years amounts to approx. 41.5 billion yen ✓ Continuing to take initiatives until the reduction target is achieved Capital Optimization Initiatives Shareholder Returns: Prioritize enhancing stable dividend levels, while flexibly executing share buybacks Targets* Total return ratio over the three-year average of 100% or more ✓ Announcement of 26 billion yen share repurchase<disclosed on May 13, 2025> *As of the end of October 2025, 15.3 billion yen has been repurchased ✓ Total share repurchases over the three-year period are expected to reach approx. 79 billion yen, with an average total return ratio of 103.7% Reduction of Cross-Shareholdings： Aim to reduce cross-shareholdings to 10% or less of consolidated net assets by the end of the FY2025 and continue to promote further reduction over the medium to long term Targets* Reduce to 10% or less of consolidated net assets by the end of FY2025 Ⅰ. Review of 2Q Period Ended September 30, 2025 *Targets of the medium-term management plan
Page 6
© 2025 SUZUKEN CO.,LTD. 6 Summary of the Pharmaceutical Distribution Business Ⅰ. Review of 2Q Period Ended September 30, 2025 * Excluding the impact of COVID-19-related products and specialty drugs, the gross profit ratio shows an improving trend 7% 10% 14% 20% 28% 30% 30% 21% 16% 11% 9% 7% 11% 10% 10% 10% FY2022 FY2023 FY2024 2Q FY2025 Generic drugs Long-listed drugs Patent-protected drugs PMP-eligible drugs (of which, PMP-eligble specialty drugs) ✓ Increase in procurement prices, mainly for generic drugs ✓ Downward trend in allowances ✓ The share of specialty drugs in Drugs eligible for Price Maintenance Premium (PMP) has increased ( ) 62% 51%49%45% PMP-eligible drugs ( ) ( ) ( ) Based on our policy of maintaining an operating profit margin of at least 1%, we achieved 1.2% by controlling SG&A expenses. Even excluding the impact of COVID-19, which was an extraordinary factor, the margin remained in the 1% range. 【Trends in Sales Mix by Category】 There have been instances where some customers have found it challenging to align with pricing negotiations based on our sales category structure.
Page 7
© 2025 SUZUKEN CO.,LTD. 7 Evolving into a Next-Generation Pharmaceutical Wholesaler (Driving Transformation) • Strengthening back-office functions • Creating mechanisms to increase productivity • Building physical and digital points of contact ✓ During the current medium-term management plan, we will maximize the use of digital technologiesto ensure a stable nationwide supply despite limited management resources, while advancing the development of new functions that contribute to social infrastructure, address societal challenges, and help reduce social costs. ✓ To maximize limited human sales resources, we will strengthen back-office functions, introduce and utilize digital tools, and integrate physical and digital approaches to build a more effective and efficient sales structure. ✓ In the categories of drugs eligible for PMP and specialty drugs, we will work toward the early realization of a distribution model based on a combination of “distribution margin” ＋ “functional fees.” Reform of the Pharmaceutical Distribution Business Smart Logistics Digital Healthcare COLLABO Portal user accounts: Approx. 380,000 697 units of Cubixx solutions installed at 590 facilities Delivery schedule/ Order proposal apps Installed at 100,000 facilities Reform of Existing Businesses Sales support at 55 locations nationwide Group chat 8,000 chat rooms Full-scale operation of the Greater Tokyo Distribution Center (from April 2024) Creation of New Businesses Creation of New Businesses • Promoting the Cubixx solution • Starting operations at the Greater Tokyo Distribution Center • Creating a mechanism to visualize and optimize distribution inventory • Promoting the COLLABO Portal • Expanding the services offered on the platform • Establishing group information integration platform Next: Establishment of automated distribution centers in the Chubu and Kinki regions Ⅰ. Review of 2Q Period Ended September 30, 2025
Page 8
© 2025 SUZUKEN CO.,LTD. 8 Progress on Key Indicators for the Medium-Term Management Plan Overview of Measures FY2025 Quantitative Target (annual) 1H FY2025 Financial Results Consolidated ー Consolidated operating profit margin 1.5% or more Consolidated operating profit margin 1.39％ Healthcare distribution • Strengthening back-office functions • Creating mechanisms to increase productivity • Building physical and digital points of contact Operating profit margin for pharmaceutical distribution business segment 1.0% or more Operating profit margin for pharmaceutical distribution business segment 1.20% Smart logistics • Promoting the Cubixx solution • Starting operations at the Greater Tokyo Distribution Center • Creating a mechanism to visualize and optimize distribution inventory Net sales Specialty drugs: 240 billion yen or more External Logistics: 20 billion yen or more Net sales Specialty drugs: 203.4 billion yen External Logistics: 16.8 billion yen Digital healthcare • Promoting the COLLABO Portal • Expanding the services offered on the platform • Establishing a profit model Net sales: 10 billion yen or more ・ Commission for supplying sales data: 6.0 billion yen ・ Digital related: 4.0 billion yen Net sales: 4.5 billion yen ・ Commission for supplying sales data: 3.0 billion yen ・ Digital related: 1.5 billion yen Community healthcare and nursing care support • Stabilizing profit in existing business • Expanding care-tech businesses • Developing regional service package model Net sales 110 billion yen or more Net sales 46.4 billion yen Healthcare product development • First-in-class R&D to answer unmet medical needs • Proprietary product development by the Group leveraging direct touchpoints with patients Net sales 60 billion yen or more Net sales 25.4 billion yen Restructuring of Asian businesses ・ Establishing a healthcare platform (China) ・ Building a national distribution network for healthcare products (South Korea) Net sales from joint ventures TBD Partnership with DONGWON Group (South Korea) Ⅰ. Review of 2Q Period Ended September 30, 2025
Page 9
© 2025 SUZUKEN CO.,LTD. 9 Ⅱ． Financial Reports Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 10
© 2025 SUZUKEN CO.,LTD. 10 ～ Revenue increased due to a rise in contract distribution of specialty drugs Operating profit progressed largely as expected, supported by efforts to control selling, general and administrative expenses. 【Primary Causes】 (1) Implementation of fair pricing negotiations and cost optimization measures despite a challenging environment marked by increasing cost of goods sold, including increased logistics and distribution costs and various other escalating expenses associated with pharmaceutical distribution (2) Implementation of strict cost-control measures while addressing inflationary pressures and meeting social cost requirements 【Primary Causes】 (1) Growth in new and existing specialty drug distribution contracts (2) Although COVID-19-related product sales declined year-on-year, the decrease was generally in line with expectations (3) Impact from profit-focused initiatives and limited-distribution products(including vaccines) handled by other distributors ～～～～～～ ～ ～～ Financial Results Summary Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025 ＜Consolidated net sales＞ vs Forecast - approx. 12.5 billion yen Year-on-year + approx. 22.1 billion yen Consolidated net sales Year-on-year ＜Consolidated operating profit＞ vs Forecast + approx. 950 million yen Year-on-year - approx. 140 million yen Consolidated net sales vs Forecast (1) Specialty drugs 51.3 (2) COVID-19- related products 2.3 (3) Others - 66.2 Forecast 1,232.0 - 12.5 1,219.4 (1) Specialty drugs 65.9 (2) COVID-19- related products - 22.2 (3) Others - 21.6 + 22.1 FY25 2Q Results 1,219.4 FY24 2Q Results 1,197.3 (Billions of yen) FY25 2Q Results
Page 11
© 2025 SUZUKEN CO.,LTD. 11 (Millions of yen, %) 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Forecast Results Difference from forecast Year-on-year Change Year-on-year Growth Rate Results Net sales 1,232,000 1,219,440 -12,559 22,117 1.8 1,197,323 Gross profit 97,230 93,606 -3,623 -975 -1.0 94,581 (Ratio to net sales) 7.89 7.68 7.90 SG&A 81,230 76,647 -4,582 -832 -1.1 77,479 (Ratio to net sales) 6.59 6.29 6.47 Operating profit 16,000 16,958 958 -143 -0.8 17,101 (Ratio to net sales) 1.30 1.39 1.43 Ordinary profit 17,000 18,032 1,032 1,022 6.0 17,009 (Ratio to net sales) 1.38 1.48 1.42 Profit attributable to owners of parent 10,900 16,241 5,341 -4,037 -19.9 20,278 (Ratio to net sales) 0.88 1.33 1.69 Consolidated Results ＜Special Notes＞ Recorded a gain of approximately ¥5.2 billion from the sale of three cross-held securities, with total proceeds of approximately ¥6.3 billion Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 12
© 2025 SUZUKEN CO.,LTD. 12 Pharmaceutical Distribution Business April 2025 to September 2025 Market SZ Gap Based on drug price (IQVIA) 2.4 1.6 -0.8 Based on delivery price (Crecon) 3.3 2.3 -1.0 ◇ Market Growth Rate vs. SZ Group’s Sales Growth Rate September 30, 2025 September 30, 2024 In value terms 91.3% 92.1% ◇ Price Settlement Rate 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Forecast Results Difference from forecast Year-on-year Change Year-on-year Growth rate Results Net sales 1,190,000 1,177,256 -12,743 22,068 1.9 1,155,187 Gross profit 71,900 68,646 -3,253 -820 -1.2 69,466 (Ratio to net sales) 6.04 5.83 6.01 SG&A 57,800 54,463 -3,336 -461 -0.8 54,924 (Ratio to net sales) 4.86 4.63 4.75 Operating profit 14,100 14,182 82 -359 -2.5 14,541 (Ratio to net sales) 1.18 1.20 1.26 (Millions of yen, %) Revenue increased despite the impact of drug price revisions and shrinking sales of COVID-19- related products, due to the market expansion of oncological drugs and contributions from new drugs such as specialty drugs. Operating profit progressed largely as expected, supported by efforts to control selling, general and administrative expenses. Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 13
© 2025 SUZUKEN CO.,LTD. 13 Impact of COVID-19-Related Products (Millions of yen, %) 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Results % to net sales Growth Growth rate Results % to net sales Net sales Total 1,177,256 22,068 1.9 1,155,187 Excluding COVID-19-related products 1,152,099 44,291 4.0 1,107,807 Gross profit Total 68,646 5.83 -820 -1.2 69,466 6.01 Excluding COVID-19-related products 66,355 5.76 1,836 2.8 64,519 5.82 SG&A Total 54,463 4.63 -461 -0.8 54,924 4.75 Excluding COVID-19-related products 54,463 4.73 -461 -0.8 54,924 4.96 Operating profit Total 14,182 1.20 -359 -2.5 14,541 1.26 Excluding COVID-19-related products 11,892 1.03 2,298 24.0 9,594 0.87 Pharmaceutical Distribution Business 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Year-on-year Change Year-on-year Growth rate Pharmaceutical distribution segment sales 1,177,256 1,155,187 22,068 1.9 COVID-19-related sales 25,157 47,380 -22,223 -46.9 ・ COVID-19-related diagnostic tests 4,856 7,567 -2,711 -35.8 ・ COVID-19-related therapeutic drugs 19,450 37,126 -17,676 -47.6 ・ COVID-19 vaccines 850 2,686 -1,835 -68.3 Sales excluding COVID-19-related products 1,152,099 1,107,807 44,291 4.0 Although sales of COVID-19-related products declined year-on-year, the decrease was generally within expectations. Excluding the impact of COVID-19-related products, both revenue and profit increased, while the operating profit margin was maintained at 1%. Composition of COVID-19- related products Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 14
© 2025 SUZUKEN CO.,LTD. 14 Healthcare Product Development Business 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Year-on-year Change Pharmaceutical Manufacturing Net sales 23,031 23,724 -693 Medical Equipment and Materials Manufacturing Net sales 2,446 2,427 19 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Forecast Results Difference from forecast Year-on-year Change Year-on-year Growth rate Results Net sales 26,400 25,477 -922 -674 -2.6 26,151 Gross profit 8,500 8,210 -289 158 2.0 8,051 (Ratio to net sales) 32.20 32.23 30.79 SG&A 7,400 7,017 -382 299 4.5 6,717 (Ratio to net sales) 28.03 27.54 25.69 Operating profit 1,100 1,192 92 -141 -10.6 1,333 (Ratio to net sales) 4.17 4.68 5.10 In the pharmaceutical manufacturing division, products related to key therapeutic areas, namely diabetes, renal disease, and dialysis, such as UPASITA IV Injection Syringe and Darbepoetin Alfa BS Syringe maintained steady performance due to enhanced market presence. While contract manufacturing volume increased, overall revenue declined as a result of drug price revisions. Operating profit decreased, primarily due to an increase in R&D expenses (recorded under SG&A), reflecting progress in R&D activities. (Millions of yen, %) Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 15
© 2025 SUZUKEN CO.,LTD. 15 In the pharmacy division, revenue declined due to a decrease in the number of prescriptions filled, following the closure or transfer of unprofitable stores. (Number of Group pharmacies: 526 stores, down 23 stores year-on-year) In the nursing care division, revenue increased due to improved occupancy rates at short-stay facilities and assisted living facilities operated by S-Care Mate. 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Year-on-year Change Pharmacy Net sales 41,195 41,489 -294 Nursing Care Net sales 5,244 5,131 112 Medical and Nursing Care Support Net sales 44 43 1 Community Healthcare and Nursing Care Support Business 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Forecast Results Difference from forecast Year-on-year Change Year-on-year Growth rate Results Net sales 46,300 46,483 183 -179 -0.4 46,663 Gross profit 16,360 16,018 -341 -284 -1.7 16,302 (Ratio to net sales) 35.33 34.46 34.94 SG&A 16,360 15,607 -752 -568 -3.5 16,175 (Ratio to net sales) 35.33 33.58 34.67 Operating profit 0 411 411 284 224.8 126 (Ratio to net sales) 0.00 0.88 0.27 (Millions of yen, %) Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 16
© 2025 SUZUKEN CO.,LTD. 16 Specialty Drug Contract Distribution Business Revenue increased due to market growth of existing contracted products and an increase in newly contracted products. Operating profit increased due to higher revenue. 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Forecast Results Difference from forecast Year-on-year Change Year-on-year Growth rate Results Net sales 154,000 203,431 49,431 65,975 48.0 137,455 Gross profit 450 606 156 155 34.5 451 (Ratio to net sales) 0.29 0.30 0.33 SG&A 120 74 -45 0 0.9 73 (Ratio to net sales) 0.08 0.04 0.05 Operating profit 330 532 202 154 41.0 377 (Ratio to net sales) 0.21 0.26 0.27 (Millions of yen, %) FY2024 FY2025FY2023 Contracted items Number of contracting companies Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025 V24更新確認済み
Page 17
© 2025 SUZUKEN CO.,LTD. 17 Healthcare-Related Services Business 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Forecast Results Difference from forecast Year-on-year Change Year-on-year Growth rate Results Net sales 20,700 20,858 158 -545 -2.6 21,404 Gross profit 2,130 2,187 57 27 1.3 2,160 (Ratio to net sales) 10.29 10.49 10.09 SG&A 1,730 1,666 -63 18 1.1 1,647 (Ratio to net sales) 8.36 7.99 7.70 Operating profit 400 521 121 8 1.7 512 (Ratio to net sales) 1.93 2.50 2.39 2Q period ended September 30, 2025 2Q period ended September 30, 2024 Year-on-year Change External Logistics (including regenerative medicines)* Net sales 16,829 16,764 65 Other Net sales 4,036 4,649 -612 (Millions of yen, %) Net sales decreased primarily due to the impact of liquidating a subsidiary in the publishing business (classified under the "Other" division in the table below). Operating profit increased, mainly driven by improved profitability in the digital health division. *49 client companies for contract manufacturer distribution service (up by 1 company compared to the end of March) Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 18
© 2025 SUZUKEN CO.,LTD. 18 Shareholder Return Shareholder Return Policy The Suzuken Group’s basic policy is to maintain stable dividends and to return profits to shareholders with an average total payout ratio of 100% or more over the three-year period ending March 31, 2026, the final year of our medium-term management plan, “For your next heartbeat — Creating a movement toward tomorrow.” The objectives are to enhance returns to shareholders and to improve corporate value and capital efficiency through reinforcing existing business areas and making investment toward creation of new businesses. Dividends (2) Share repurchase (Millions of yen) (3) Net profit (Millions of yen) Total payout ratio Interim Year-end Full-year (1) Total dividends (Millions of yen) { (1)＋(2) }÷ (3) FY2023 40円 40円 80円 6,417 25,000 29,016 108.3% FY2024 50円 50円 100円 7,487 27,980 34,496 102.8% FY2025 (Forecast) 50円 50円 100円 6,947 26,000 32,800 100.4% 54 64 69 72 72 72 72 80 100 100 70.9% 68.9% 89.2% 57.8% 81.3% 74.7% 125.9% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 0 20 40 60 80 100 120 17/3 18/3 19/3 20/3 21/3 22/3 23/3 24/3 25/3 26/3 (Forecast) Interim dividend (Yen) Year-end dividend (Yen) Total payout ratio (%) Three-year average (forecast): 103.7％ 100.4%102.8%108.3% Ⅱ． Overview of Financial Reports for 2Q Period Ended September 30, 2025
Page 19
© 2025 SUZUKEN CO.,LTD. 19 Ⅲ. Toward Realizing a Health Creation Enterprise Initiatives for Ambidextrous Management
Page 20
© 2025 SUZUKEN CO.,LTD. 20 Ambidextrous Management Practices Ⅲ. Toward Realizing a Health Creation Enterprise Pharmaceutical Wholesale Contribution to community healthcare through digital transformation Digital Healthcare Smart Logistics Current primary area of activity Final destination point A B C ＜Ambidextrous Management Matrix＞ Existing New New Creation and Evolution of the New Dominant Hand (Left Hand) ＜New areas such as digital business＞ Evolution of the Traditional Dominant Hand (Right Hand) ＜Current businesses such as pharmaceutical distribution＞
Page 21
© 2025 SUZUKEN CO.,LTD. 21 Reinforcing Social Infrastructure for Stable Supply - 1 - A ✓ To navigate a challenging environment, we are placing in-person MS at the core while accelerating digital deployment and reinforcing back-office functions, aiming to enhance customer satisfaction and build an efficient structure with limited human resources dedicated to sales and logistics. ✓ To address ongoing supply instability of generic drugs, we have promoted the use of our delivery scheduling application, centralized tasks into the sales support section, and utilized group chat tools, thereby improving operational efficiency in managing supply-constrained items—such as delivery schedule inquiries and procurement efforts—for both customers and our internal teams. 【As of September 2025】 Generic drugs subject to recall： 29 items Products under supply constraints: 3,014 items Inquiries to customer center Decreased by 60% Delivery Schedule Notification App Reduced workload and enhanced sense of security Installed at： 100,000 facilities ・Providing information on products with limited shipments ・Ordering alternative products in case of stockout ・Checking delivery dates ・Push notifications and other alert functions for delivery schedule changes Lead time for initial response 30 mins ⇒ 5 mins Faster delivery schedule responses and product arrangements Nationwide： 55 locations Group chat 8,000 chat rooms ・Centralizing operations for handling items under supply constraints ・Product logistics support ・Utilizing group chats Sales Support Section Pharmaceutical WholesaleⅢ. Toward Realizing a Health Creation Enterprise
Page 22
© 2025 SUZUKEN CO.,LTD. 22 Further Efficiency in the Order-to-Delivery Process ✓ By strengthening back-office functions and utilizing digital tools, we are promoting reforms in the order-to-delivery operations ✓ By optimizing services integrated with operational mechanisms, we aim to improve productivity in the order-to-delivery process, thereby contributing to cost (SG&A expenses) reduction. Leveraging digital tools Order Proposal & Delivery Schedule Notification Apps The Greater Tokyo Distribution Center Strengthening back- office functions and leveraging digital tools ・ Number of personnel involved in order processing: 555 457 ( - 98 ) *compared to April 2023 Cost reduction for order processing： Annual reduction of approx. ¥300 million ・ With centralization, the number of orders handled per operator increased by 3.6 times compared to before centralization ・ Utilizing the group chat function on the COLLABO Portal to enable the sales support section to respond quickly and efficiently Initial response lead time: 30 minutes 5 minutes ・ In automated areas, working hours have been reduced by approx. 70% compared to the former Toda Distribution Center. ・ Consolidation of branch warehouse operations in Tokyo‘s 23 wards and Saitama area Logistics cost in the Tokyo metropolitan area: Annual reduction equivalent to approx. ¥700 million WarehouseOrder Inquiry Customer Support Center Sales Support COLLABO Portal Centralizing branch sales operations in the customer support center Delivery ・ By optimizing the number of vehicles and improving delivery efficiency, 131 vehicles reduced *compared to April 2023 Annual reduction equivalent to approx. 860 million ・ Through utilization of these apps, inquiries to the customer support center regarding delivery schedules for products with limited shipments were reduced by approx. 60% Annual reduction equivalent to approx. 130 million Maximizing material handling capacity and promoting automation & labor savings A Pharmaceutical WholesaleⅢ. Toward Realizing a Health Creation Enterprise
Page 23
© 2025 SUZUKEN CO.,LTD. 23 By deploying more than 600 in-house "GDP Specialists” and 90 intermediate-level specialists*2 with external certifications nationwide, we are strengthening GDP compliance through the integration of people and systems. In addition to our 15 logistics sites (12 for manufacturer distribution and 3 for wholesale distribution), we expect to obtain ISO 9001:2015 certification for 12 additional wholesale distribution sites during this fiscal year. Acquisition of ISO 9001:2015 certification, compliant with GDP guidelines and establishment of an advanced quality management system adhering toPIC/S GDP*1, an international standard Reinforcing Social Infrastructure for Stable Supply - 2 - < Initiatives for quality enhancement >Logistics assets of the Group ✓ S.D.Logi, our pharmaceutical logistics provider, was awarded the “TQM Growth through Challenge Award” at the Japan Quality Recognition Award for Fiscal Year 2025. ✓ Suzuken Group is extending the accumulated expertise from the manufacturer logistics business to wholesale distribution, thereby developing a healthcare distribution platform. ✓ The Group is committed to strengthening quality management and fulfilling its social mission in pharmaceutical distribution. ■ TQM* Growth through Challenge Award This award was established by the Union of Japanese Scientists and Engineers with the aim of actively evaluating and encouraging initiatives that have begun to demonstrate results by leveraging TQM principles, thereby promoting their further growth. A Pharmaceutical WholesaleⅢ. Toward Realizing a Health Creation Enterprise *2 Intermediate-level specialists: Holders of management system auditor certification *1 PIC/S GDP: International standard for proper distribution of pharmaceuticals * TQM: Total Quality Management is a management methodology focused on comprehensivequalitycontrol and enhancement across the entire company.
Page 24
© 2025 SUZUKEN CO.,LTD. 24 Establishing the Value Chain for Specialty Drug Distribution ✓ Promoting end-to-end inventory visibility through wider adoption of Cubixx and M-pos ✓ Building a comprehensive specialty drug distribution value chain by integrating physical flows— from manufacturer distribution to home delivery and adherence management—with data generated across the entire process M-pos: Hospital staff enter department and patient prescription information via COLLABO Mobile, enabling highly accurate case tracing FY2023 FY2024 As of Sep. 2025 Adoption status 538 units in 457 facilities 618 units in 522 facilities (211 cancer hospitals) 697 units in 590 facilities (264 cancer hospitals) Waste reduction amount 4.3 billion yen 5.7 billion yen ー 42 National University Hospitals 78.6 ％ (33 hospitals) ＜Adoption progress＞ [Penetration rate] Penetration rate target for FY2025: over 80.0% Cubixx DT: Enables remote medication management for home-care patients * Figures include confirmed orders 56.3 ％ (264 hospitals) [Penetration rate] Flowchart for visualizing pharmaceutical distribution inventory Collection of data from every process enables visualization of distribution inventory Contract manufacturing site Manufacturer distribution warehouse Transportation terminal network Wholesale distribution center Wholesale branch Medical institution / Pharmacy Patient home Cubixx ⚫ Delivery Schedule Notification app ⚫ Order Proposal app B Smart LogisticsⅢ. Toward Realizing a Health Creation Enterprise 469 Cancer Hospitals
Page 25
© 2025 SUZUKEN CO.,LTD. 25 Suzuken Group Wholesaling Companies Customers Partner Services ＋ ＋ Delivering New Value Data ✓ Highly recognized initiatives to visualize distribution inventory implemented in collaboration with select pharmaceutical manufacturers ✓ Advancing system development to further enhance functionality ✓ Driving new value creation by improving inventory visibility across wholesaler warehouses and customers Data Collection & Analytics Master Data Management Reporting Functions (for pharmaceutical companies and customers) Improved Inventory Imbalance Enhanced Demand Forecasting Optimized Operational Costs Distribution Inventory Visualization Platform ・・・ ・・・ Further Functional Enhancements (1) Standardized Inventory Management System (centralized inventory control) (2) Disease-Specific Inventory Management System (patient ID-based registration) ＋ Expanding Capabilities in Smart Logistics B Smart LogisticsⅢ. Toward Realizing a Health Creation Enterprise (Medical Institutions & Pharmacies)
Page 26
26© 2025 SUZUKEN CO.,LTD. ✓ As part of a government-led initiative to address drug loss issue, J-ENTRY Consortium has initiated studies toward the development of two out of five drug candidates for which the Ministry of Health, Labour and Welfare is inviting applications from pharmaceutical developers: artesunate (treatment for severe malaria) and obiltoxaximab (treatment for inhalational anthrax). * Remaining three unapproved drugs：① Lefamulin acetate (treatment of community-acquired bacterial pneumonia）, ②Omadacycline tosylate （for bacterial pneumonia and acute bacterial skin and skin structure infections）, ③Avapritinib（for adult patients with unresectable or metastatic gastrointestinal stromal tumors (GIST) harboring a platelet-derived growth factor receptor alpha (PDGFRA) exon 18 mutation） Efforts to Eliminate “Drug Loss” *Drug Loss: Pharmaceuticals approved abroad but not yet approved in Japan J - ENTRY Consortium ： The collaboration of the three groups—Suzuken Group, EPS Group, and Bushu Pharmaceuticals—offers a 'one-stop' service that provides all essential functions required for market entry into Japan. This comprehensive service covers everything from domestic development to manufacturing and marketing approval applications, manufacturing, sales, and logistics. B Smart LogisticsⅢ. Toward Realizing a Health Creation Enterprise Providing all capabilities under clients’ strategy
Page 27
© 2025 SUZUKEN CO.,LTD. 27 ✓ This fiscal year is a critical period for shifting from preparation to commercialization , as we work to establish our digital business as a profitable segment under the medium-term plan. ✓ In the remaining months, we will leverage generative AI and strengthen the Group Information Integration Platform to accelerate monetization. Clarifying the Group’s functions and enhancing information infrastructure Further strengthening customer touchpoints Data of Individuals Data of F acilities Group Information Integration Platform Digital touchpoints Real-world touchpoints× ➢ Conduct a comprehensive review of the functions provided by our Group and partner companies and define their respective value proposition ➢ Develop a ‘Function Book’ that combines our diverse capabilities to enable proposals tailored to customers’ needs ➢ Establish a master platform leveraging generative AI to centrally manage information generated from each function ＋380,000 user accounts MS ➢ By integrating raw, real-world insights from sales, logistics, and back-office functions into the Group Information Integration Platform, we can create unique information value unmatched in the market ➢ Aim to further expand the number of COLLABO Portal user accounts to 500,000 and eventually 1 million Building Foundation for Monetization (Digital Business) Distribution Dispensing Physicians touchpoints Patient touchpoints Info analysis ＋ Logistics back officeCOLLABO Portal CⅢ. Toward Realizing a Health Creation Enterprise Digital Healthcare ⇒ Establish a one-of-a-kind Suzuken Group network in Japan that has strong connections with medical and nursing care professionals
Page 28
© 2025 SUZUKEN CO.,LTD. 28 ⇒ Providing marketing support for healthcare and nursing care professionals based on proprietary data ⇒ Hosting digital exhibitions featuring medical-related products, including medical devices and medical foods We provide proposals for product and service penetration strategies based on research findings. ＜Digital Exhibition （Digital Medical Fair）＞ Service launched in June 2025 ～ The next exhibition is scheduled for Feb. 2026 ～ 〔Participating companies〕： 44 companies 〔Seminars/ Lectures held〕: 20 sessions 〔Registrants〕: 5,170 people ✓ Expanding touchpoints beyond physicians to include nurses, pharmacists, and other healthcare and nursing care professionals is a major strength. We are also developing initiatives with healthcare-related companies beyond pharmaceutical companies. This feature directly collects and analyzes feedback from healthcare and nursing care professionals according to research objectives, segmented by area, profession, and facility attributes. New feature on the COLLABO Portal COLLABO Research Leveraging frontline feedback from the industries to drive improvements in collaboration with companies Topics： New Initiatives Utilizing COLLABO Portal - 1 - CⅢ. Toward Realizing a Health Creation Enterprise Digital Healthcare
Page 29
© 2025 SUZUKEN CO.,LTD. 29 ✓ We signed a Memorandum of Understanding (MoU) with Healthcare AI Platform Collaborative Innovation Partnership (HAIP*1) and AIHOBS Inc.*2 to promote the effective use of generative AI in medical and nursing care. *1 HAIP is a Collaborative Innovation Partnership (CIP) established on April 1, 2021, as a non-profit corporation under the Research and Development Partnerships Act, with the approval of the Minister of Health, Labourand Welfare and the Minister of Economy, Trade and Industry. *2 AIHOBS is a business corporation approved by the Ministry of Health, Labourand Welfare and the Ministry of Economy, Trade and Industry, established by HAIP in April 2025. ※ Companies Customers Medical Institutions, Pharmacies, Nursing Care Facilities Physicians & Healthcare Professionals Generative AI Service Providers SaaS Service Providers Suzuken Group’s COLLABO Portal ＜Key Points of the MoU＞ (1) Establish a foundation that enables safe and secure use of medical generative AI services and SaaS-based solutions (2) Offer guidelines, use cases, and tools to enhance understanding of security and information management when applying medical generative AI services (3) Enhance convenience by integrating various digital services for medical and nursing care C Topics： New Initiatives Utilizing COLLABO Portal - 2 - To ensure that healthcare professionals can confidently use medical generative AI, which is expected to see growing demand, we will promote the development of an highly secure environment via the COLLABO Portal. *Announced in a news release on November 13, 2025 Ⅲ. Toward Realizing a Health Creation Enterprise Digital Healthcare
Page 30
© 2025 SUZUKEN CO.,LTD. 30 Talent Development & Organizational Strengthening Consolidation of headquarters and Group company functions on a single floor MSH Nihonbashi Hakozaki Building S.D. Collabo Embrace COLLABO Square S.D.Logi Net Hospital ✓ We are promoting talent development to lead our health creation business by reskilling employees to cultivate digital transformation experts and next-generation leaders, as well as by recruiting external talent. ✓ To strengthen collaboration among partner companies, headquarters, and business divisions, functions and personnel related to logistics and digital operations have been consolidated at our new office in Hakozaki. Reforming indirect operations via generative AI; reallocating staff to key areas Suzuken Group-wide digital transformation reskilling achieved KPIs of the three-year mid-term plan KPI of mid-term plan As of Sept. 2025 IT Passport Over 2,100 employees 2,535 employees Information Security Management Over 1,000 employees 1,064 employees DX Exam （over 600） Over 800 employees 960 employees Developing next-generation talent through hands- on management training and participation of early- career employees in the next mid-term planning Ⅲ. Toward Realizing a Health Creation Enterprise
Page 31
© 2025 SUZUKEN CO.,LTD. 31 Finally Toward the Realization of a Health Creation Enterprise By leveraging the Suzuken Group’s “Unique Capability to Connect” and “One Team Strength,” we will create new business models and deliver new value to society. Ⅲ. Toward Realizing a Health Creation Enterprise
Page 32
This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. Information disclosed by Suzuken may include matters related to future forecasts. These matters are based on management decisions pursuant to the information available to the company at the time of disclosure, and utilize certain assumptions in order to create future forecasts. They contain a variety of risks and uncertainties. As a result, the actual performance figures, results, and other matters may differ from the forecasts contained in disclosed information due to various future factors such as changes in business operations and the economic situation.