The company’s independent external directors and independent external auditors possess a wealth of experience and knowledge from numerous companies based in Japan and globally, and fulfill an important role in achieving sustainable growth for the group. Below are messages from our three independent external directors and two Independent external auditors on topics including our company’s unique characteristics and strengths our future and possibilities, and how personal skills and experience can be utilized in management.

PHC Group is committed to Environmental, Social, and Governance (ESG) activities to contribute to a sustainable future. Having been engaged in corporate ESG metrics globally for many years, I see the potential for the Group's management team to recognize ESG as an essential driver of its competitive advantage.
In terms of the environment, our manufacturing sites obtained ISO14001 certification, and we are steadily working to reduce CO₂ emissions at all our locations globally. Furthermore, we have identified environmental materiality topics, set specific KPIs targets, and executed concrete action plans to contribute to environmental sustainability.
From a social responsibility standpoint, PHC Group advances healthcare innovation and contributes to society through our products and services. We also emphasize promoting diversity, and our Board of Directors and management team seek to create a collaborative work environment where employees of all backgrounds can thrive. In addition, we strive to improve employee engagement across Group companies as “One PHC.”
Lastly, to achieve robust governance, PHC Group has established committees under the Board of Directors and continues to fulfill its responsibilities across the Group. As an Independent External Director, I am proud to be part of PHC Group and will continue to support these efforts.

PHC Holdings Corporation possesses a unique and diverse portfolio of healthcare companies, which it operates across three business segments. PHC Group has both opportunities and challenges across its businesses, which it is addressing proactively and energetically under the leadership of our new chief executive officer.
Our Healthcare Solutions segment is representative of the opportunities and challenges facing PHC Group. In the past year, LSI Medience Corporation, which operates the Group’s clinical testing business, encountered the challenge of inappropriate quality management issues. PHC Group has addressed the issues forthrightly and aggressively to remediate the issues and restore the trust and confidence of LSIM’s customers. On the positive side, PHC Group was excited to complete the acquisition of FUJIFILM Healthcare Systems Corporation’s electronic medical record and medical-receipt systems-related business and combine it with its existing business to create Wemex Healthcare Systems Corporation. Wemex Corporation is now a leader in Japan in electronic medical record and medical-receipt systems for clinics and electronic medication history systems for pharmacies, with a strong customer base.
I am looking forward to working with PHC Group’s new chief executive officer, Kyoko Deguchi. I have worked with Kyoko as a fellow board member since I joined the board of directors of PHC Group. She brings deep experience and expertise from having worked at global pharmaceutical and plastic engineering companies, as well at healthcare companies in Japan. Kyoko has tremendous energy and enthusiasm, which I am confident will help PHC Group to address challenges and leverage the opportunities that lay ahead.

PHC Group consists of a strong mix of long-standing companies that started as part of what was then Matsushita Kotobuki Electronics Co., Ltd. and globally acquired healthcare businesses, and has offered a wide range of solutions to various stakeholders in the healthcare industry. We have built our strength especially in precision technologies, and have further opportunities to grow the company by taking the ‘One PHC’ approach, whereby we can create more synergies internally to serve our customers more innovatively. We now have directed ourselves to focus more on diagnostics and life sciences, where we have a strong contribution to make in creating a healthier society.
We also have opportunities to grow as a global company. As an independent board member, I would like to contribute in continuing to enhance our governance which I believe enables timely decisions and stable execution.
Upon joining PHC Group, I have also been appointed as the Chair of the Nomination and Compensation Committee. I cannot emphasize enough the importance of strengthening our Human Capital to increase our competitiveness. Given my long and rich experiences in human resources, I would like to fully leverage the Committee not only to discuss succession planning and diverse next-generation leadership development, but also to discuss other important strategic topics related to people, organization, and corporate culture, so that our employees and companies can experience a win-win relationship, which I believe will contribute to enhancing our corporate value.

Continually investing in talent is indispensable to drive the growth of the PHC Group. This investment in talent also reflects our values as an organization. To accelerate growth, it is vital to develop an environment that encourages innovation, creativity, and excellence in all employees through continual learning and skill development. Supporting employees’ professional growth builds a corporate culture rooted in trust and respect, enhances our reputation as an employer of choice and, in turn, drives positive business results across the Group.
Growth is the lifeblood of PHC Group, which means not only expanding our market footprint and increasing profitability, but also responding to the ever-changing needs of the healthcare sector and maintaining the dynamics of our organization. Investing in growth strengthens core competencies, drives innovation, and enhances competitiveness. It also enables us to advance our technological capabilities, improve operational efficiencies, and deliver superior products. Also, initiatives such as strategic partnerships open opportunities for PHC Group to expand into new markets and gain valuable insights into the latest trends and customer needs. Continuing to make these investments is not just a business imperative; it is a commitment to our future. PHC Group should embrace investments that are pivotal to our enduring growth and the betterment of the healthcare landscape.
I will use my expertise and experience in strategic insights, leadership, ESG, risk management, and governance to help PHC Group's efforts in improving its sustainability, governance, and overall success, ensuring its long-term viability and positive impact on society.

We are facing rapid changes in the business environment across all three of our business segments, including technological innovation, new laws and regulations, and evolving market trends. One approach to responding to such a business environment may be to avoid large-scale M&A and proceed with technological development and market exploration on our own. However, we do not believe this gradualist approach is the only answer. Our mission is to contribute to the health of people around the world through healthcare technology and innovation. In order to achieve this, we must continue to strive for business investment, including M&A.
As we continue to take on challenges, the number of challenges, large and small, will increase. Consider the old saying that failure is the mother of success. When a situation arises that we could not anticipate in investment decision-making (such as an impairment loss), we examine the process and factors that led to such an event in detail and build knowledge and experience for future management.
Just as the effect of compound interest works in financial asset investment, increasing management knowledge creates a compound effect, and it forms the foundation for building a corporate structure that enables steady and continuous profit growth. We hope that all of our stakeholders will continue to support our management as we work to achieve our mission.