MEDIUS HOLDINGS Co.,Ltd. Q4 FY2025 earnings call

Overall Financial Performance

• The 2025 June period delivered strong double-digit top-line and bottom-line growth: consolidated revenue grew 11.1% YoY to 288.689 billion yen, operating income grew 41.3% YoY to 1.875 billion yen, ordinary income grew 38.4% YoY to 2.422 billion yen, and net income grew 22.3% YoY to 1.375 billion yen. Growth was driven by rising case volumes, new customer acquisition, and expanded sales from previously acquired and spun off subsidiaries.
• The previous mid-term plan target (to 2025 June) was achieved ahead of schedule, so a new 3-year mid-term plan (2026 June to 2028 June) has been launched.

Mid-Term Strategic Priorities

• Core themes are structural reform of existing businesses and selective concentration of business investment, with profit improvement as the top priority. Management will prioritize investment in growth-driving M&A and alliances, suppress low-profit revenue expansion and high-risk non-profitable investments, and use PDCA cycles to deliver early profit contribution from new investments.
• M&A and alliance strategy: Driven by declining priority of the Japanese market for overseas medical device manufacturers, Medias will expand its distribution network via M&A to become the preferred distributor for manufacturers, building on a track record of successful acquisitions that have improved group operating efficiency and sales capability.
• Solution business strategy: Medias offers a full suite of integrated solutions for medical institutions including the A-source medical material database, Meccal purchase analysis services, simplified SPD logistics for small/mid-sized hospitals, and surgical department efficiency management tools. It also provides logistics efficiency services for device manufacturers, giving Medias a competitive advantage as a full-service provider.
• Internal operational efficiency: Shared corporate services, consolidation of specialized clinical segments, common procurement, digital transformation, and improved training and evaluation systems are being implemented to boost productivity, reduce costs, improve employee motivation, and eliminate business dependency on individual employees.

Recent Operational Updates

• In July 2025, three new specialized subsidiaries were launched: Mediris Logi (specialized medical device logistics), Miur Healthcare (product procurement and private brand strategy), and Reps (manufacturer business process outsourcing). These will increase group functional specialization and industry competitiveness.
• Free access to部分 functionality of the Meccal medical material database was launched in March 2025 to improve overall industry operational efficiency. In October 2025, two acquired Hokkaido-based subsidiaries will be merged to form Aenorth Medical, creating a unified full-Hokkaido sales network. Orthopedic subsidiary Ortho Edge Japan, spun off in 2023, has built a national presence and continues to grow as a bridge for global orthopedic technologies into Japan.

Sustainability

• Five core material sustainability issues have been defined: stable supply of medical and nursing care products, support for industry transformation, environmental protection, promotion of diverse talent development, and balancing sustainable growth and stakeholder trust. A 42% reduction in Scope 1 and 2 GHG emissions from 2022 levels by 2030 has been targeted. Ongoing social contribution activities include partnerships with the World Food Programme, Doctors Without Borders matching gift programs, and local community medical outreach events.

Consolidated total revenue for the 2025 June period was 288.689 billion yen, a 11.1% increase year-over-year.

1. Consumables: Grew driven by rising case volumes and new customer acquisition, particularly in orthopedic implant and catheter/cardiology segments; strong growth was seen in the Kansai region from Alcent's expanded operations. No absolute revenue value is provided for the segment in the transcript.
2. Equipment/Fixture: Total revenue grew year-over-year, led by a full-year contribution from acquired Makoto Ika Seiki, with large equipment such as radiation devices seeing strong sales growth. No absolute revenue value is provided for the segment in the transcript.
3. Nursing care and welfare equipment rental: Rental revenue grew year-over-year, with a steady positive performance. No absolute revenue value is provided for the segment in the transcript.

• For the 2026 June full year, management guides: revenue of 305 billion yen (+5.6% YoY), operating income of 1.75 billion yen (-6.7% YoY), ordinary income of 2.3 billion yen (-5.1% YoY), and net income attributable to parent shareholders of 1.3 billion yen (-5.5% YoY).
• The new 2026–2028 mid-term plan targets 10% annual ordinary income growth, with a target of 2.78 billion yen in ordinary income for the 2028 June period.
• Dividend policy: The 2025 June period full-year dividend is increased from the initial 19 yen per share to 20 yen per share. A 20 yen per share dividend is planned for 2026 June, for an expected payout ratio of 34.2%, aligned with the long-term target payout ratio of 30%+ on a consolidated basis.
• Capital efficiency strategy: Management targets a medium-term ROE of 6-7%, and a long-term ROE of 8% or above, to improve market valuation and push PBR sustainably above 1x.

• Persistently high energy prices and foreign exchange volatility continue to push up operating and procurement costs.
• The 2024 medical fee revision cut drug and medical material reimbursement prices, putting downward pressure on industry margins.
• Weakening medical institution capital expenditure due to tighter hospital operating conditions is a headwind for equipment sales.
• Overseas manufacturers have reduced strategic priority on the Japanese market due to slow growth, price suppression from reimbursement policies, and high market entry costs, creating long-term industry uncertainty.
• The operating environment remains overall opaque with unclear forward-looking prospects.

No formal question and answer section was included in the provided transcript.