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President’s Message

President's Message

We will continue to improve corporate value so that we may provide customers with an enriched and flexible lifestyle.

With the aging of society, these are ever more people wishing for lifelong health and beauty. Customer needs have also diversified. We have grown by pursuing the creation of stores that are familiar to and loved by all the people throughout the regions based on our mottos "kindness first" and "Trust first" and support our customer's efforts to create healthy and enriched lives. Expectations will become higher than ever for conveniently located drugstores where anyone can easily engage in consultations and enjoy improved awareness of self-medication by which they can manage their own health.

In the drugstore sector, the operating environment remained challenging, with competition to open stores and reduce prices continuing to intensify and the pace of consolidation and realignment accelerating as companies sought to remain competitive.

In the fiscal year ended May 15, 2017, the TSURUHA Group continued to offer a high level of customer service mainly through advice-based sales, and implemented a number of strategic business initiatives. Specifically, in addition to focusing on advice-based sales of high value-added products that satisfy customer needs, the Group improved convenience for customers through store renovations centered on food sales areas in order to address the shrinking market caused by Japan’s aging population and intensifying competition. Also, in order to strengthen the competitiveness and value of the Group’s private brands, M’s one and Medis’ one, the Group took a number of steps to boost the quality of the product range, such as rolling out new packaging with a more visible, unified brand and updating products.

In store openings, the Group targeted specific areas for multiple store openings as part of its area dominance store-opening strategy and implemented a scrap and build approach for existing stores. In the second quarter under review, the Group opened 61 new stores and closed 24 existing stores. Kyorindo Group Holdings Co., Ltd. (Kyorindo HD) became a subsidiary of the Company on September 29, 2017. As a result, 78 drugstores and dispensing pharmacies in Shizuoka Prefecture operated by Kyorindo Co., Ltd., a subsidiary of Kyorindo HD, became part of the Group, resulting in a total of 1,870 directly managed stores at the end of the second quarter.

As a result of the above, in the first six months of the current fiscal year, TSURUHA Holdings reported net sales of ¥307,859 million (up 6.5% year on year), operating income of ¥20,053 million (up 13.4%), ordinary income of ¥20,831 million (up 12.0%), and net income attributable to owners of the parent of ¥13,041 million (up 4.2%).

We will continue to strengthen our reliance-based ties with all people nationwide, so we sincerely hope that we will continue to receive your support as Japan's number one drug store chain.

Masashi Horikawa
President and Representative Director

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