Business Wire

PHC Group Releases Newly Revised Mid-Term Plan, the “Value Creation Plan,” Outlining Changes for FY2025 to Accelerate Growth by Advancing Value-Based Healthcare

Share

PHC Holdings Corporation (headquarters: Minato-ku, Tokyo, Japan, President & CEO: Shoji Miyazaki, hereafter PHC Group) announces the release of its newly revised Mid-term Plan, the “Value Creation Plan”*1 for FY2022 to FY2025. The primary update in this plan is the introduction of new business growth areas that will enable PHC Group to advance value-based healthcare globally.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221115005183/en/

To view this piece of content from mms.businesswire.com, please give your consent at the top of this page.

PHC Group’s Growth Areas (Graphic: Business Wire)

Our Value Creation Strategy Focuses on Realizing “Value-Based Healthcare”

Since the original Mid-term Plan was released in June 2021, PHC Group has initiated new commercial partnerships, expanded investments in our core business domains and completed its listing on the Tokyo Stock Exchange’s First Section (current Prime market) in October 2021. At the same time, increasing healthcare costs and disparities in access to healthcare, caused by issues like geographic location and income, continue to be critical challenges around the world. In light of these challenges, PHC Group has updated its global business strategy to focus on contributing to “Value-Based Healthcare,” a healthcare delivery model that seeks to maximize healthcare outcomes for patients based on their individual needs, which can lead to better care as well as improved cost-effectiveness.

Specifically, PHC Group will seek to strengthen its three core business domains while leveraging synergies among those businesses to target three new growth areas:

Strategy on Foundation (Core Business Domains)

  • Diabetes Management: PHC Group will expand new business opportunities for blood glucose monitoring systems (BGM) in emerging markets and enhance growth business such as continuous glucose monitoring system (CGM).
  • Healthcare Solutions: The Medicom (healthcare IT) business in Japan will seek to capitalize on demand from the shift to cloud-based electronic medical record (EMR) systems and Japanese government-led policies. The LSI Medience (clinical testing services and diagnostic reagents) business will enhance cancer and genetic testing and boost clinical trials and point-of-care testing (POCT) businesses outside of Japan.
  • Diagnostics & Life Sciences: The PHCbi (biomedical) business will develop new products with energy-saving performance and internet of things (IoT) technology, and also optimize its global operations in development and manufacturing. The Epredia (anatomical pathology) business will seek to increase its market share by upgrading product quality and tapping into sales channels by region and segment used by PHC Group Business.

Strategy for Growth

  • Personalized Testing and Diagnostic Solutions: The diabetes management business, including Ascensia and PHC IVD, will promote sales of its innovative CGM and develop POCT technologies.
  • Digital Health Solutions: Medicom and LSI Medience will integrate their healthcare management businesses including annual health check programs to advance health support including preventive medicine for individuals. They will advance solutions that assist the workflow for healthcare professionals such as administrative support services efficiently managed by AI. To contribute to reducing healthcare costs and enhancing treatments, PHC Group will work to integrate and analyze health data.
  • Advanced Therapy Development Solutions: The Epredia and PHCbi businesses will leverage one another’s customer networks in pharmaceutical companies to expand sales globally for both brands. Expanded product portfolios will include new equipment for cell metabolism analysis and anatomical pathology, and high-quality, high-speed models for diagnostics using AI will be developed for hospitals.

Revised Financial Targets

Through this Value Creation Plan, PHC Group is targeting 420 bn/JPY in revenue and 56 bn/JPY in operating profit:

FY2021 Actual

FY2025 Target*2

CAGR | 2021-2025

Revenue340.5bn420bn

+5.4%

Operating Profit8.2bn56bn

+62%

(Margin)

(2%)

(13%)

20% if impairment
Impairment ofis not included
18.4bn/JPY of Epredia
business included
Cash-based24.8bn49bn

+19%

net income
EBITDA57.7bn87bn

+11%

Adjusted EBITDA71.9bn87bn

+4.9%

Reference
Assumed Exchange Rate

$

112JPY130JPY

130JPY132JPY

With this combination of foundational business and new growth areas, PHC Group’s newly revised Value Creation Plan will help the company advance its corporate mission of “contributing to the health of society through our diligent efforts to create healthcare solutions that have a positive impact and improve the lives of people.”

*1 Website on our “Value Creation Plan”: www.phchd.com/global/about/vcp
*2 Based on current business portfolio

About PHC Holdings Corporation (PHC Group)

PHC Holdings Corporation (TOKYO Prime 6523) is a global healthcare company with a mission of contributing to the health of society through healthcare solutions that have a positive impact and improve the lives of people. Its subsidiaries include PHC Corporation, Ascensia Diabetes Care Holdings AG, Epredia Holdings Ltd., and LSI Medience Corporation. Together, these companies develop, manufacture, sell and service solutions across diabetes management, healthcare solutions, diagnostics and life sciences. PHC Group’s consolidated net sales in FY2021 were JPY 340 billion with global distribution of products and services in more than 125 countries.
www.phchd.com

To view this piece of content from cts.businesswire.com, please give your consent at the top of this page.

Contact information

Media Contact:
Julia Cottrill
Hiroko Arai
Investor Relations & Corporate Communications Group
PHC Holdings Corporation
TEL: +81-3-6778-5311
Email: phc-pr@gg.phchd.com

About Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Philip Morris International Announces New Regional Structure and Senior Management Changes to Accelerate Growth Toward a Smoke-Free Future25.11.2022 19:05:00 CET | Press release

Philip Morris International Inc. (PMI) (NYSE: PM) today announced a new regional structure and related senior management changes to enable continued growth as a multicategory leader internationally and advance its rapid transition toward a smoke-free future. “We are changing the company’s regional structure to further support the growth of our smoke-free business, reinforce consumer centricity, and increase the speed of innovation and deployment—all in alignment with our ambition of becoming a majority smoke-free business by net revenues by 2025,” said Jacek Olczak, PMI’s Chief Executive Officer. “The new structure will also create new opportunities to further grow our senior talent, deepening the bench of leaders who will spearhead PMI’s progress toward a smoke-free future for the years to come. I am confident of the exceptional caliber and determination of our people and wish them the best in their new roles.” By the end of January 2023, PMI will rearrange its operations in four regi

China’s Vanke Foundation presents fruitful green development achievements at COP2725.11.2022 15:44:00 CET | Press release

China’s Vanke Foundation invited dozens of Chinese charitable organizations, institutes and industry associations to present the fruitful achievements of China's green development at the recently concluded 2022 United Nations Climate Change Conference (COP27) in Sharm El-Sheikh. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221125005204/en/ Wang Shi(L4), Chairman of Vanke Foundation, and other Chinese delegates called for joint action on climate change at COP27 in Sharm El-Sheikh, Egypt on Nov. 11, 2022. (Photo: Business Wire) According to Wang Shi, Founder of Vanke Group, Chairman of Vanke Foundation, and Founder of C Team, only a few nongovernmental Chinese individuals, including himself, representing about 100 Chinese companies attended COP15 in Copenhagen back in 2009, while this year, together with numbers of partners from different sectors, approximately one million Chinese enterprises and institutions have been invol

Fruits Eco-Blockchain Project Completes its Security Audit of their Native Blockchain Conducted by Quantstamp25.11.2022 15:00:00 CET | Press release

Fruits Eco-Blockchain Project is pleased to announce their completion of a security audit of the Fruits Blockchain's contract system conducted by Quantstamp, a leader in web3 security. The focus of the audit was to verify that the smart contract system is secure, resilient and working according to its specifications. The audit activities can be grouped in the following three categories: This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221120005089/en/ Fruits Eco-Blockchain Project completes its security audit of their native blockchain conducted by Quantstamp (Graphic: Business Wire) Security: Identifying security related issues within each contract and within the system of contracts. Sound Architecture: Evaluation of the architecture of this system through the lens of established smart contract best practices and general software best practices. Code Correctness and Quality: A full review of the contract source code. The prim

Abu Dhabi Hosts Annual Investment Meeting May 202325.11.2022 14:49:00 CET | Press release

Abu Dhabi will host the 12th edition of the Annual Investment Meeting from 8 to 10 May 2023, which will take place under the theme of “The Investment Paradigm Shift: Future Investment Opportunities to Foster Sustainable Economic Growth, Diversity, and Prosperity”. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221125005180/en/ Abu Dhabi Hosts Annual Investment Meeting May 2023 (Photo: AETOSWire) At a press conference held today in Abu Dhabi, the announcement of the launch of AIM Global 2023 which is supported by the Ministry of Industry & Advanced Technologies, with the Abu Dhabi Department of Economic Development (ADDED) as a lead partner was made in the presence of H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, Vice Chairman of the UAE Industry Development Council and H.E. Mohamed Ali Al Shorafa, Chairman of ADDED. AIM Global 2023 pillars will discuss the global capital market transformation, way

Alberto Bona’s Exploit on the Class40 IBSA : Eighth at the Route Du Rhum25.11.2022 13:13:00 CET | Press release

Thursday, November, 24, at 3:34:50 pm local time (8:34:50 Paris-Rome time) in Pointe-à-Pitre, Alberto Bona on the Class40 IBSA crossed the finish line of the twelfth edition of the Route du Rhum in eighth place. His race time is 15 days, 6 hours, 19 minutes and 50 seconds. The skipper of the Class40 IBSA sailed the 3,542 miles between Saint-Malo and Pointe-à-Pitre at a speed of 9.67 knots on the great-circle course, actually covering 4005.51 miles at an average speed of 10.93 knots. He arrived in Pointe-à-Pitre 1 day, 3 hours, 11 minutes and 10 seconds after the Class40 winner, Yoann Richomme. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221125005116/en/ Alberto Bona on the Class40 IBSA crosses the finish line of the twelfth edition of the Route du Rhum (©IBSA | Beppe Raso) “A very nice but extremely hard regatta, especially in the upwind week”, stated Alberto upon arrival. “I am extremely happy: IBSA and I made it togethe