MediPal : Integrated Report 2020

Innovation for the Future

Integrated Report 2020

Fiscal year ended March 31, 2020

Contents

About the MEDIPAL Group

Business Fields ..............................................................................................................................................	2
President's Message ..............................................................................................................................	4

Value Creation Process and Growth Strategies

History of Value Creation ..............................................................................................................	10
Value Creation Process ....................................................................................................................	12
Source of Our Growth ......................................................................................................................	14
2022 MEDIPAL Medium-TermVision ...............................................................................	20

Business Overview

At a Glance ....................................................................................................................................................	22
Strategy by Business
Prescription Pharmaceutical Wholesale Business ........................................	24
Message from the General Manager of the
Business Development Department ....................................................................	28
Cosmetics, Daily Necessities and
OTC Pharmaceutical Wholesale Business ......................................................	30
Animal Health Products and Food Processing
Raw Materials Wholesale Business .........................................................................	34

Our Activities

Important Issues of the MEDIPAL Group (Materialities)...............................	36
Corporate Governance ....................................................................................................................	38
Management Team .............................................................................................................................	45
Risk Management ..................................................................................................................................	48
Compliance ..................................................................................................................................................	51
Pharmaceutical Affairs Management ...............................................................................	53
Disaster Planning ...................................................................................................................................	56
Information Management .............................................................................................................	60
Respect for Human Rights ............................................................................................................	61
Environmental Conservation Initiatives ..........................................................................	66
Social Initiatives .......................................................................................................................................	68

Data Section

Glossary ............................................................................................................................................................	69
Eleven-YearFinancial Highlights ...........................................................................................	70
Financial Review ......................................................................................................................................	72
Financial Section ......................................................................................................................................	76
Subsidiaries and Affiliated Companies .......................................................................	100
Corporate Data / Stock Information ...............................................................................	101
Our Mission ................................................................................................................................................	102

Editorial Policy

This integrated report has been compiled as a communication tool to comprehensively provide financial information, such as management strategies and results, and also non-financial information, such as our relationship with the environment and society, so that all our stakeholders understand the MEDIPAL Group's management approach to the creation of sustainable corporate value.

Forward-Looking Statements

This report contains forward-looking statements regarding the MEDIPAL Group's plans, policies, strategies, and earnings forecasts. Accordingly, please note that certain risks and uncertainties could cause actual results to differ materially from those stated herein.

Yen amounts on all pages except for the financial statements are rounded down to the nearest million yen. Yen amounts in the financial statements are rounded to the nearest million yen.

Management Philosophy

Contributing to people's health and the advancement of society through creation of value in distribution

Management Policy

1. Create a vitalized corporate culture to make the MEDIPAL Group trusted by society
2. Raise shareholder value and ensure thorough legal compliance
3. Faithfully create a free and open-minded corporate culture and train creative personnel

Business Fields

Pharmaceuticals, Health, and Beauty

Company Logo

The logo design represents people holding hands and harmony, which symbolize cooperation, coexistence, and the strength to live. It also expresses that MEDIPAL is a company that grows with customers and business partners, expands broadly, and respects people.

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About the MEDIPAL Group

Business Fields

The MEDIPAL Group is one of the largest distribution networking

groups linking manufacturers, medical institutions,

and retailers all across the nation in fields of

pharmaceuticals, health, and beauty.

Final Consumers

Patients, consumers, etc.

	Customers
Hospitals,	Drugstores,	Animal hospitals,
livestock and fishery
clinics,	home centers,
businesses,
dispensing	convenience
manufacturers of
pharmacies, etc.	stores, etc.
processed food, etc.

240,000

Manufacturers

Pharmaceuticals, medical equipment,

cosmetics, daily necessities, etc.

5,000suppliers

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Prescription Pharmaceutical Wholesale Business

Business Companies

MEDICEO CORPORATION	EVERLTH Co., Ltd.	ATOL CO., LTD.
SPLine Corporation	MM CORPORATION	ASTEC Co., Ltd.
MVC CO., LTD.	MEDIE Co., Ltd.
M.I.C. (Medical Information College), INC.
Medipal Insurance Service Co., Ltd.

Product Range

Prescription pharmaceuticals	Medical equipment
Medical supplies	Clinical diagnostics

Customers

Hospitals Clinics Dispensing pharmacies

Cosmetics, Daily Necessities and OTC Pharmaceutical Wholesale Business

Business Company

PALTAC CORPORATION

Product Range

Cosmetics Daily necessities OTC Pharmaceuticals

Customers

Drugstores	Home centers
Convenience stores	Supermarkets
Discount stores

Animal Health Products and Food Processing Raw Materials Wholesale Business

Business Companies

MP AGRO CO., LTD. MEDIPAL FOODS CORPORATION

Product Range

Animal health products Raw ingredients for food processing Customers

Animal hospitals Livestock and fishery businesses

Manufacturers of processed food

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