Rohto Group's Medium- to Long-Term Growth Strategy
2025-2035

Basic Management Policy

Our purpose is to "deliver health to people around the world through our products and services, thereby guiding all people and society around us to well-being and invigorating the world of tomorrow." With over-the-counter pharmaceuticals, our original business, at our core, we position our business scope as contributing to the realization of a well-being society, extending to the "Self-care field" of quasi-drugs, cosmetics, health foods, and food products, as well as the "professional domain" of the development of prescription drugs, medical devices, and cell therapy drugs, and the associated CDMO business. We aim to realize our purpose by strengthening our "science-based" corporate culture (a passion for uncovering the unknown) and prioritizing the long-term, sustainable resolution of unmet needs of our customers and patients.

Purpose and Management Philosophy

By delivering health to people around the world through our products and services, we aim to lead all people and society around us to "well-being" and to invigorate the world of tomorrow.

Articles of Incorporation Chapter 1 Article 2

Mid- to Long-Term Strategy Overview

We will work on three themes with the aim of refining next-generation Rohto science and expanding the circle of well-being to include professional care, with self-care at its core.

1. Strengthening business profitability

   We will develop our self-care business globally, providing innovative value in the fields of eye care and skin care, and focusing on new fields such as hair care and Feminine Care, in order to expand the business overall and improve profitability.

2. Deepening and expanding technological product capabilities

   Leveraging Rohto's unique science, we will provide a well-being lifestyle. Through collaboration with Eu Yan Sang (EYS) and phytoscience research, we will work to develop innovative supplements using plant-derived ingredients. We will also develop gastrointestinal care products and venture into prognostic care to support health during recovery, further growing Oral Medicine / Health Food Business and supporting the daily health of more customers.

3. Building a foundation for Medical business

   For Rohto, Medical business is an extremely important field, providing high-quality, high-performance products not only to itself but also to other companies. In the CDMO business, we are expanding from the small molecule and chemical fields, where Qualitech Pharma is active, to the bio and cell processing fields. In the ophthalmology field, we are strengthening collaboration between domestic and overseas group companies, and in dermatology, we are working on developing cosmetics for dermatology that utilize Regenerative medicine technology. Furthermore, in the field of prescription ophthalmic drugs, we are focusing on the development of new drugs for myopia prevention, and in the field of Regenerative medicine, we are focusing on the development of new drugs for knee cartilage regeneration and liver cirrhosis treatment, bringing hope to patients awaiting treatment.

Mid- to Long-Term Growth Strategy Basic Policy

Evolve Rohto Science and maximize profits from Core businesses.
We build a foundation for professional care, expand the circle of well-being, and create the future.

Earnings forecast

We expect to achieve sales of 365 billion yen and operating profit of 46 billion yen in fiscal year 2027, three years from now, and sales of 415 billion yen and operating profit of 54 billion yen in fiscal year 2030, six years from now. We will first focus on further growth in Core businesses, and then expand our business by maximizing synergies with Eu Yan Sang, which we acquired in fiscal year 2024. Over the next three years, we plan to create new markets through growth in new fields such as hair care and Feminine Care, while also expanding our supplement and food businesses, as well as our ophthalmology and dermatology businesses. From fiscal year 2030 onward, we expect the approval of new prescription ophthalmic drugs and Regenerative medicine will enable these businesses to generate high profits and become major pillars of sales and profits. We expect overseas sales to expand to 53% of total sales by fiscal year 2030.

Mid- to Long-Term Growth Strategy Consolidated Performance Forecast

Capital measures

Over the six years until 2030, we will further strengthen our cash generation capabilities, proactively engage in growth investments, and continue to return profits to shareholders through stable dividends.
We expect operating cash flow to be 330 billion yen over the next six years, before deducting R&D expenses. We will raise funds as needed and allocate these funds to growth investments and shareholder returns.
First, we plan to invest ¥100 billion in capital expenditures, including maintenance and improvements to existing manufacturing facilities and the expansion of overseas production facilities to meet growing demand. We will invest ¥90 billion in research and development. This amount, targeted at no more than 5% of sales, will be used to further accelerate our core business, strengthen our materials development and Rohto Science capabilities, and invest in areas that will be the next pillars of growth, such as Regenerative medicine and medical eye drops. We plan to invest ¥30 billion in digital transformation and IT, which will increase productivity per employee and build an efficient and powerful management foundation. Additionally, we plan to invest ¥50 billion in M&A and investments, aiming to further expand our business by creating synergies with existing businesses and entering new fields.
We will distribute the surplus gained through these business activities as a return to shareholders, and strive to achieve stable dividend increases.

Capital Policy Cash Allocation

Strengthen cash generation capabilities, actively invest in growth investments, and return profits to shareholders by continuing a stable dividend policy.

(6 years from 2025 to 2030)

Shareholder returns

We aim to provide stable returns to shareholders by targeting a dividend payout ratio of 30% or more and a DOE (dividend on equity) of 3.5% or more. Our shareholder return policy is based on the fundamental principle of balancing stability and growth. We will achieve stable and continuous shareholder returns while promoting investments that support corporate growth from a long-term perspective, without being influenced by temporary fluctuations in profits.

Trends in shareholder returns

Dividends are increased continuously and stably, regardless of increases or decreases in profits.
We will increase the dividend payout ratio to the 30% range in fiscal 2025, thereby strengthening shareholder returns.