SUZUKEN : One Suzuken Report 2017

One Suzuken Report 2017 Suzuken Group Integrated Report

Turning Change into Opportunity

Profile

Suzuken was founded as a pharmaceutical wholesaler in Nagoya City, Aichi Prefecture in 1932. Based on the spirit of "learning from our customers," we have developed as an independent wholesaler that does not belong to any manufacturer's group. In 2006, we became the first corporate group in Japan's pharma- ceutical wholesale industry to establish business offices in every prefecture. Committed to creating healthy, prosperous lives for all people, we have identified "health creation" as our business domain. With pharmaceutical distribution as our core business, today we are engaged in a variety of other businesses related to medical care and healthcare, notably distribution for manufac- turers, operation of insurance pharmacies, nursing care services, and support services for manufacturers. In addition to fulfilling our social mission of providing safe, reliable pharmaceutical distribution, we contribute to reduced social costs through our businesses.

The Suzuken Group will deploy its know-how and expertise, amassed during a period of transformation in Japan's pharmaceu- tical distribution sector, to create new levels of value and continue striving for further achievements as a health creation company.

Suzuken Group Message

Design Your Smile:

The Suzuken Group-Creating Healthier and Better Lives

The Suzuken Group Message incorporates our determination to creating healthier and better lives.

Business Domain

Contents

02 Value Creation

02 Message from the Chairman

08 Suzuken Group's Value Creation Process

10 Suzuken Group's Business Development

12 Growth Strategy

12 Consolidated Financial & Non-financial Highlights

14 Segment Highlights

16 Japanese Pharmaceutical Wholesale Industry and Suzuken Group

18 Message from the President

24 Top Management Discuss Medium-Term Growth Strategy: "One Suzuken 2019"

36 Supporting Value Creation: Suzuken Group's ESG

37 Corporate Governance

45 Environment and Society

51 Financial Section

89 Subsidiaries, Stock Data, Corporate Data

Suzuken by Numbers

Founded

1932

Consolidated net sales*1

¥2,126.9 billion

Consolidated Group employees*2

16,456

Consolidated subsidiaries*2

58

Share of domestic pharmaceutical wholesale market*1

21.6%

Geographical coverage of pharmaceutical wholesale business

all 47prefectures

Sales/distribution bases in pharmaceutical wholesale business*2

242

Transportation fleet*2

1,994vehicles

Number of insurance pharmacies*2

612

*1 Year ended March 31, 2017

*2 As of March 31, 2017

Editorial Policy

About One Suzuken Report 2017

Starting the year 2016, the Suzuken Group is combining its traditional Annual Report and CSR Report into a single document, called "One Suzuken Report," containing both financial and nonfinancial information. Through this report, the Group hopes to deepen understanding among our broad-ranging stakeholders, including shareholders and other investors, about the Suzuken Group that is striving to become a "presence indispensable for medical care and health."

Forward-looking statements

Regarding Suzuken Group's future, "One Suzuken Report" contains statements based on assumptions, expectations and plans that Suzuken's management believed appropriate at the time. However, such statements, being predicated on presuppositions, involve risks and uncertainties. Please understand, therefore, that the Company's actual performance may vary from such state- ments due to the social, economic and company conditions that eventually take place.

One Suzuken Report 2017 01

Message from the Chairman

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