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 over three years.

• 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 from FY 2020.

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

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

• Identified need for a sustainable business model, compliance, and governance as key issues for future growth.

Vision and business environment / Vision for 2030

• Aims to lead the generic drug industry, providing stable, high-quality generics and preventive/diagnostic products.

• Targets 25%+ domestic market share and over 25 billion tablet production capacity by FY2030.

• Sets generics business revenue goal at 300 billion yen, total revenue at 310 billion yen, and ROE at 13% or more by 2030.

• Focuses on a multifaceted mix of products/services for disease prevention, diagnosis, and treatment, emphasizing sustainability and talent development.

• Anticipates rising pharmaceutical demand due to aging society, labor shortages, and regulatory reforms.

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

• Focuses on establishing a trusted corporate foundation and expanding production capacity.

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

• Will invest in growth areas synergistic with generics, including digital medical devices, health food, and orphan drugs.

• Considers additional investments to reach 25 billion tablets production capacity by FY2030.

• Emphasizes management based on KPIs, compliance, and regular progress updates.