Corporate Profile 2020-2021Alfresa Group

Alfresa Group Corporate Profile 2020-2021 1

We create and deliver a fresh life for all

As of June 25, 2020

Corporate Name: Alfresa Holdings Corporation

Address: 1-1-3, Otemachi, Chiyoda-ku, Tokyo 100-0004, Japan

Established: September 29, 2003

Business: Management of subsidiaries that deal with wholesaling, manufacturing, marketing and import/export of pharmaceuticals, diagnostic reagents, medical devices/equipment, etc., and operating dispensing pharmacies and conducting related businesses.

Paid-in Capital (Consolidated): ¥18,454 million

Net Sales (Consolidated): ¥2,698,511 million (Fiscal year ended March 31, 2020)

Directors and Audit &Supervisory BoardMembers:

Taizo KuboRyuji ArakawaYasuki IzumiSeiichi Kishida

Hisashi KatsukiKoichi ShimadaYusuke FukujinYoichiro YatsurugiTakashi HaraManabu KinoshitaToshie Takeuchi

Director & ChairmanRepresentative Director & PresidentDirector, Deputy PresidentDirector, Senior Vice President & Executive OfficerDirectorDirectorDirectorDirector (Outside Director)Director (Outside Director)Director (Outside Director)Director (Outside Director)

Kenji Kuwayama Masakazu Ozaki Seisui Kamigaki

Yoshitaka Kato

Takashi Ito

Audit & Supervisory Board Member (Standing)Audit & Supervisory Board Member (Standing)Audit & Supervisory Board Member (Outside)Audit & Supervisory Board Member (Outside)Audit & Supervisory Board Member (Outside)

Introduction to Our Integrated ReportPlease view the Alfresa Group’s Integrated Report for more information about the Group.

www.alfresa.com/eng/ir/library/annual_report/

Message from the President The Alfresa Group’s Principles

Corporate Overview

Ryuji ArakawaRepresentative Director & PresidentAlfresa Holdings Corporation

With “Our Philosophy” to create and deliver a fresh life for all, the Alfresa Group engages in reliable, safe and sincere business practices.

In its super-aged society, Japan’s national healthcare system is facing a major turning point including the advance of an integrated community care system that provides integrated medical care, nursing care, and other services within local communities.

Under such a situation, the Alfresa Group has implemented our 2019-21 Mid-term Management Plan The Challenge of Further Growth “Together with Health, Together with Communities.” We are bringing together all capabilities of the Group in aiming to realize “Healthcare Consortium” that provides products and services in every health-related field.

Moreover, in 2020, COVID-19 has substantially affected the health of people around the world and changed people’s mindset of both medical care and disease prevention. Redefining our responsibility for the stable supply of pharmaceuticals as a part of social infrastructure, the Alfresa Group goes forward with our social mission which is the secure distribution of pharmaceuti-cals — what's needed, when needed, and where needed.

Now and in the future, the Alfresa Group keeps challenging to be a corporate group that is indispensable to society.

The Alfresa Group’s PrinciplesOur Philosophy

We create and deliver a fresh life for all.

Our VisionWe aim to become a Healthcare Consortium that provides

products and services in every health-related field.

Our Promises

• We always provide reliable products and services and strive to enhance customer satisfaction.

• We respect individual characteristics and personalities and strive to maintain and improve a pleasant

working environment.

• We raise corporate value as a corporate group operating in the health-related industry.

• We conduct proper trade under fair and free competition.

• We strive to proactively engage with society by providing appropriate information in a timely manner.

• We contribute to local communities through our business operations.

• We strive to protect the global environment.

Reliability Safety Sincerity

Alfresa Group Corporate Profile 2020-2021 Alfresa Group Corporate Profile 2020-20212 3

Our Vision Toward the Realization of “Healthcare Consortium”

The Challenge of Further GrowthThe Challenge of Further Growth“Together with Health, “Together with Health, Together with Communities”Together with Communities”

The Group will strengthen collaboration among its various business segments to further exert its comprehensive strengths. The Group will also actively promote collabora-tion with companies in other industries in the growth fields.

The Group will expand fields from a pharmaceuticals-based business to wide-ranging businesses in the health field. The Group will reform the business model through active investment in growth fields, and aim at construct-ing solid business foundations toward further growth.

While continuing present initiatives to boost efficiency, the Group will increase efficiency of existing opera-tions utilizing new technologies in order to reallocate management resources to new operations and further improve productivity.

The Group will construct an open platform that links various stakeholders involved with integrated community care system. The Group will evolve into the role of comprehensively supporting community medicine, and aim to build a“local community health and medical care platform”collaborating with wide-ranging service providers in the future.

The Group will execute talent develop-ment strategies, focusing on “Willingness to venture into uncharted areas” and “Ability to adapt to changing environ-ments” among the Alfresa Group’s four requirements for our valuable people.

The Realization of “Healthcare Consortium”

Realization of “Healthcare Consortium” means the establishment of a system that can contribute to people’s lives and health by forming alliances not only with

Group companies but also with other firms in the healthcare business to offer comprehensive medical care and healthcare information, products and services.

Prevention(OTC drugs, health foods, vaccines, etc.)

Cure / Diagnosis / Treatment(ethical pharmaceuticals, diagnostic reagents, medical devices, medical materials, etc.)

Self-MedicationProducts Wholesale

Ethical Pharmaceuticals Wholesale

MedicalDevices

Wholesale

Diagnostic Reagents

Wholesale

Dispensing Pharmacies / Medical-Related Services

Self-MedicationProducts Manufacture

PharmaceuticalsManufacture

MedicalMedicalDevicesDevices

ManufactureManufacture

DiagnosticReagents

Manufacture

SPD

1. Build up a Group Collaboration Structure

2. Reform Business Models

3. Contribute to the Health of Community Members

4. Further Improve Productivity

5. Develop Talent

“Local community health and medical care platform” in collaboration with wide-ranging service providers

Alfresa Group’sFour Requirements forOur Valuable People

Ability to adaptto changing

environments

Willingness to venture into

uncharted areas

Strong sense of mission

for work that supports life

High ethical standards

that earn trust

Talent development strategies1. Reinforce OJT2. Realize career plans which expand growth

opportunities3. Secure diverse personnel and have them

play active roles4. Reform training programs

Integrated Community Care System

Future Model Credit companies

(credit settlement)

Travel agencies(travel by type of

disease)

Health management companies

(home care by type of disease)

Insurance companies(insurance coverage by type

of disease)

Data health service providers

(data analysisby type of disease)

Housing manufacturers(housing fit for cognitive

disease patients)

Housing manufacturers(housing by type of disease)

Manufacturers(foods)

Medical device manufacturers

Dispensing pharmacies

Municipalities, Government

Medical institutions

Nursing care facilities

Nutritional guidanceservice providers

Transportationservice

companies

Linking medical care, nursing care, home care, municipalities, etc

2019-21 Mid-term Management Plan

Under the Alfresa Group’s principles, Our Vision is described as, “We aim to become a Healthcare Consortium that provides products and services in every health-related field.” We are working together to realize this vision while leveraging Group synergies. Going forward, we will expand from businesses primarily focused on pharmaceuticals into a wide range of health-related domains.

Group Management Policies

The Alfresa Group is advancing initiatives in accordance with five group management policies under the 2019-21 Mid-term Management Plan The Challenge of Future Growth The Challenge of Future Growth “Together with Health, Together with Communities.”“Together with Health, Together with Communities.”

Man

ufac

ture

Reta

ilW

hole

sale

Alfresa Group Corporate Profile 2020-2021 Alfresa Group Corporate Profile 2020-20214 5

Our Business

The Alfresa Group’s main businesses are the Ethical Pharmaceuticals Wholesaling Business, the Self-Medication Products Wholesaling Business, the Manufacturing Business, and the Medical-Related Business. We are striving for the realization of “Healthcare Consortium”

through the development of various businesses relating to health and medical care to contribute to people’s health.

Ethical Pharmaceuticals Wholesaling Business Manufacturing Business

Overseas Business Development

Self-Medication Products Wholesaling Business Medical-Related Business

Focusing on ethical pharmaceuticals, we deliver a wide range of products, including diagnostic reagents, medical devices/materials and nutritional foods, from our high-capacity distribution centers nationwide to hospitals, clinics, and dispensing pharmacies. In addition, our sales force with extensive knowledge provides support to our customers. We are contributing to the health of community members by meeting their various healthcare needs.

From a comprehensive perspective encompassing prevention, diagnosis, and treatment, we manufacture and

market high-quality active pharmaceutical ingredients, pharmaceuticals, diagnostic reagents, and medical devices

that meet GMP* and QMS* requirements. We research, develop, manufacture and market unique and distinctive

products, and undertake contract manufacturing of pharmaceuticals.*GMP: Good Manufacturing Practice, standards for manufacturing control and quality control of pharmaceuticals and quasi-drugs*QMS: Quality Management System, standards for manufacturing control and quality control of medical devices and external diagnostic reagents

We are expanding our business mainly in Asia through our own initiatives as well as partnerships with overseas companies.

Focusing on over-the-counter drugs, we deliver health foods, supplements and other products to drugstores and pharmacies, meeting customer needs with a full product lineup, reliable product supply system, and high-value-added marketing activities such as how to create optimal storefronts.

The Alfresa Group is actively expanding its business areas toward the realization of “Healthcare Consortium.” We are meeting a variety of medical needs through our dispensing pharmacy business and other medical-related businesses. In our dispensing pharmacy business, we pursue further added value as a community-based pharmacy.

Distribution center Research & development

A part of product lineup

Product delivery Pharmaceuticals for central nervous system

Shelving allocation proposal

Marketing activities by MS* *Marketing Specialist of pharmaceuticals wholesaling

Marketing activities by MR* *Medical Representative of pharmaceuticals information

Dispensing pharmacy Consultation with patients

Signing ceremony with China Resources Pharmaceutical Commercial Group Co., Ltd.

Solution-proposal business conference Community event “Children’s pharmacy”

Collaboration across business segments Delivering the Group synergies

Alfresa Group Corporate Profile 2020-2021 Alfresa Group Corporate Profile 2020-20216 7

Talents with a sense of mission

Number of Group employees 14,562*1

MS (sales workers)

3,423Medical Management

Specialists*3

1,873SA*2

(delivery workers)

2,240Pharmacists

1,241The Alfresa Group is engaged in a range of businesses, from the manufacture of active pharma-ceutical ingredients (API), to the manufacture and wholesale of pharmaceuticals and other products, to the operation of dispensing pharmacies. Through the unified development of these businesses, the Group strives to meet the full range of medical needs.

Alfresa Group’s Features

Manufacturing BusinessEthical Pharmaceuticals Wholesaling BusinessSelf-Medication Products Wholesaling Business

Medical-Related Business

Integrated supply chain for medical and pharmaceutical products

Procurement Production Distribution Sales

Dispensing pharmacies

169 stores

Dementia supporters*

approx. 800

Pharmaceuticals Wholesalers Medical

InstitutionsHospitals, Clinics, Nursing care facilities, etc.

RetailersDispensing pharmacies, Drugstores

PatientsEthical pharmaceuticals

wholesaling

No.1 sales** Fiscal year ended March 31, 2020

Source: “2020 All Data & Ranking” published by Drug Magazine (Drugmagazine Co., Ltd.)

We hold the position of Japan’s top wholesaler of ethical pharmaceuticals, which is driven by broad transactions with pharmaceuticals manufacturers, a robust distribution platform, and strong relation-ships of mutual trust with customers. Moreover, leveraging the advantages and assets that come with this top position, we are aiming to create new value by playing the role of connecting medical care, nursing care, municipalities, and other entities.

Over 14,000 of our people*4 are working as one, with a strong sense of mission, to promote their business as one of social infrastructure which must not be interrupted at any time.*1 The number includes 2,488 part-time and temporary employees.*2 Sales Assistant*3 It is a qualification recognized by the Japan Medical Management Practice Association.*4 The Alfresa Group refers to its employees as “our people.”

We operate 169 dispensing pharmacies, mainly in the Kanto and Tohoku regions, stretching from Hokkaido to the Kansai region. At the stores, we actively communicate with local communities by providing events such as healthcare consultation meetings and work experience programs for children at pharmacies. Furthermore, around 800 “dementia supporters” always take care to provide appropriate help in a timely manner.

5 production bases

Handling approx. 550kinds of items

Nationwide pharmaceuticals

distribution network

246 distribution bases

Suppliers

Pharmaceuticals Manufacturers We are establishing a distribution system to

meet needs of our customers including medical institutions, dispensing pharmacies, and drugstores by effectively allocating high-capacity distribution centers and “closer to customers” warehouses through a network of branches and offices nationwide. We deliver products, services and information with around 7,000 vehicles.

We have four domestic plants in Akita, Gunma, Chiba, and Okayama, as well as one overseas plant in Qingdao, China. We have a lineup of approximately 550 items including pharmaceuti-cals, diagnostic reagents, medical devices, and active pharmaceutical ingredients (API). Our primary areas of expertise are to develop and manufacture pharmaceutical products for central nervous system diseases such as sleep disorders and epilepsy, medical equipment systems for colorectal cancer screening, various point-of-care testing (POCT) reagents for infec-tious diseases, and medical equipment such as surgical sutures.

* Those who have an accurate knowledge and understanding of dementia and can support dementia patients and their families in the community.

* The figures shown above are as of March 31, 2020.

1

TS Alfresa Corporation

Alfresa Corporation

Alfresa Corporation

Shikoku Alfresa Corporation

Alfresa Corporation

Tohoku Alfresa Corporation

Shizuoka Pharmaceuticals Center

Gunma Distribution Center

Edogawa Pharmaceuticals Center

Kyoto Pharmaceuticals Center

Saitama Distribution Center

Bunkyo Pharmaceuticals Center

Meguro Pharmaceuticals Center

Aichi Distribution Center

Osaka Distribution Center

Hyogo Distribution Center

Fukuoka Distribution Center

Head Office Distribution Center

Head Office Distribution Center

Shikoku Distribution Center

Onomichi Distribution Center

Ube Distribution Center

Hanamaki Distribution Center

Koriyama Distribution Center

Meisho Co., Ltd.

RYUYAKU CO., LTD.

79 10

1517

13

6

14

16

4

11

12

23

8

5

Chiba Distribution Center

Kanagawa Distribution Center

Building an optimal distribution network with a view to nationwide distribution to realize a stable supply of pharmaceuticals

Enlargement of the Tokyo Metropolitan Area

Distribution bases of Ethical Pharmaceuticals Wholesaling Business

Distribution Center Pharmaceuticals Center

Alfresa Group Corporate Profile 2020-2021 Alfresa Group Corporate Profile 2020-20218 9

1 Alfresa CorporationRepresentative: Yusuke Fukujin, PresidentHead office: 7, Kanda-Mitoshirocho, Chiyoda-ku, TokyoBusiness domain: Ethical pharmaceuticals wholesaling business

3 TS Alfresa CorporationRepresentative: Yuji Tsukimori, PresidentHead office: 1-2-19, Shoko Center, Nishi-ku, Hiroshima, Hiroshima PrefectureBusiness domain: Ethical pharmaceuticals wholesaling business

5 RYUYAKU CO., LTD.Representative: Tadashi Inamine, PresidentHead office: 5-6-5, Makiminato, Urasoe, Okinawa PrefectureBusiness domain: Ethical pharmaceuticals wholesaling business

7 Alfresa Medical Service CorporationRepresentative: Seiji Nakamura, PresidentHead office: 1-12-1, Uchikanda, Chiyoda-ku, TokyoBusiness domain: SPD business (contract distribution service in hospitals)

and wholesaling of medical materials

2 Shikoku Alfresa CorporationRepresentative: Masahiko Ogura, PresidentHead office: 1255-10, Fuke Kou, Kokubunjicho, Takamatsu, Kagawa PrefectureBusiness domain: Ethical pharmaceuticals wholesaling business

4 Meisho Co., Ltd.Representative: Kenji Orimoto, PresidentHead office: Ha 1, Muryojimachi, Kanazawa, Ishikawa PrefectureBusiness domain: Ethical pharmaceuticals wholesaling business

6 Tohoku Alfresa CorporationRepresentative: Keiji Kawashima, PresidentHead office: 1-46-1, Kikutamachi Oroshi, Koriyama, Fukushima PrefectureBusiness domain: Ethical pharmaceuticals wholesaling business

8 Alfresa Shinohara Chemicals CorporationRepresentative: Yuichi Shinohara, PresidentHead office: 9-41, Minamigoza, Kochi, Kochi PrefectureBusiness domain: Wholesaling business of diagnostic reagents, research

reagents, nursing care equipment, and analytical equipment for laboratories, etc.

Ethical Pharmaceuticals Wholesaling Business

Alfresa Group Companies and Ethical Pharmaceuticals Distribution Network As of June 25, 2020

Self-Medication Products Wholesaling Business

9 Alfresa Healthcare CorporationRepresentative: Hisashi Katsuki, PresidentHead office: 3-11-5, Nihonbashi-Honcho, Chuo-ku, TokyoBusiness domain: Self-medication products wholesaling business

10 Mogi Pharmaceutical Co., Ltd.Representative: Yusuke Mogi, PresidentHead office: 3-9-7, Nihonbashi-Honcho, Chuo-ku, TokyoBusiness domain: Self-medication products wholesaling business

11 Alfresa Pharma CorporationRepresentative: Koichi Shimada, President and CEOHead office: 2-2-9, Kokumachi, Chuo-ku, Osaka, Osaka PrefectureBusiness domain: Manufacturing, import/export and marketing of

pharmaceuticals, diagnostic reagents, medical devices, and materials for pharmaceuticals, etc.

13 Alfresa Fine Chemical CorporationRepresentative: Yoshinobu Oshima, President and CEOHead office: 1-10-1, Mukaihama, Akita, Akita PrefectureBusiness domain: Manufacturing of active pharmaceutical ingredients

12 QINGDAO NESCO MEDICAL CO., LTD.Representative: Keiji Ito, ChairmanHead office: No.11 Xinghai Rd., Chengyang, Qingdao, Shandong, ChinaBusiness domain: Manufacturing, export and sale of surgical sutures

14 Sannova Co., Ltd.Representative: Toru Takekawa, PresidentHead office: 3038-2, Seradacho, Ota, Gunma PrefectureBusiness domain: Research, development, manufacturing and sales of

pharmaceuticals and quasi-drugs, etc.

Manufacturing Business

15 Apollo Medical Holdings Inc.Representative: Tomohide Tsuzuku, PresidentHead office: 2-45-8-8F, Minamiotsuka, Toshima-ku, TokyoBusiness domain: Dispensing pharmacy business

16 Nihon Apoch Co., Ltd.Representative: Shizuhisa Kanemoto, PresidentHead office: 6-20, Wakitahoncho, Kawagoe, Saitama PrefectureBusiness domain: Dispensing pharmacy business

Medical-Related Business

17 Alfresa System CorporationRepresentative: Naruhiko Sano, PresidentHead office: 1-1, Kandanishikicho, Chiyoda-ku, Tokyo

Business domain: Operation, maintenance and development of information system for the Alfresa Group

Information System Business for the Alfresa Group

Circled numbers indicate head offices of Alfresa Group companies.

This product is made of material from well-managed, FSC®-certified forests and other controlled sources. Printed in Japan

The name “Alfresa” combines the English word “all”the English word “all” with

an Esperanto word “fresa” which means “fresh.”an Esperanto word “fresa” which means “fresh.”

The corporate name symbolizes our wish to be a corporation that “contributes to the happiness of

all people by meeting their healthcare needs and creating an active lifestyle for the coming era.”

Printed in Japan