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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 the pace of consolidation and realignment accelerating, as competition to open stores and reduce prices continued to intensify.

In the second quarter of the fiscal year ending May 15, 2019, 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 private brands, the Group worked to advance its private brand product strategy through Group companies. Specifically, the Group overhauled its product lineup to improve efficiency, launched two new brands, Kurashi Rhythm and Kurashi Rhythm Medical, and reinforced product development and the sales network.

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 74 new stores and closed 35 existing stores. B&D HOLDINGS Co., Ltd. (B&D HD) became a subsidiary of the Company on May 22, 2018. As a result, 65 drugstores and dispensing pharmacies in Aichi Prefecture operated by B&D Co., Ltd., a subsidiary of B&D HD, became part of the Group, resulting in a total of 2,035 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 ¥382,947 million (up 24.4% year on year), operating income of ¥20,575 million (up 2.6%), ordinary income of ¥21,405 million (up 2.8%), and net income attributable to owners of the parent of ¥12,940 million (down 0.8%).

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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