Sawai Group Holdings Co (4887) Status update summary

Review of previous medium-term plan

• Expanded Japanese generics market share to 17.1%, increased production capacity to 18.5 billion tablets, and launched 65 new products leveraging patent strategy and formulation technology.

• Withdrew from U.S. business due to challenges and to focus on capital efficiency, resulting in a 5.5% revenue and 30% core operating income decrease versus FY 2020 and addressing impairment losses.

• Invested JPY 73.6 billion in R&D and JPY 70 billion in facilities, including 58.5 billion yen in production facilities and new factory construction.

• Initiated new business areas, including digital medical devices and health food, to support healthy longevity.

• Identified the need for a sustainable business model and stronger compliance and governance.

Vision and business environment / Vision for 2030

• Aims to lead the generic drug industry, provide stable, high-quality supply, and offer a multifaceted mix of products and services for disease prevention, diagnosis, and treatment.

• Pharmaceutical demand rising due to aging society and labor shortages; AI and digital tech are transforming healthcare.

• Industry faces ongoing supply shortages and stricter regulatory requirements for stable supply.

• Government reforms and policies emphasize production management and quality control.

• Emphasizes sustainability, talent development, and environmentally friendly business practices.

Medium-term management plan: Beyond 2027 / Medium-term business plan "Beyond 2027"

• Plan focuses on establishing a trusted corporate foundation, especially after administrative penalties, and expanding production capacity.

• Targets domestic generics sales of JPY 300 billion by FY 2030, total revenue at 310 billion yen, with over 25% market share and 25 billion tablets production.

• Aims for ROE over 13% and ROIC over 10% by FY 2030.

• Plans to launch over 44 new products in three years and improve production efficiency at new and existing facilities.

• Continues investment in growth areas such as digital medical devices, health food, orphan drugs, and overseas expansion.