(News release) August 10, 2018
Notice concerning New Mid-Term Management Plan “ASAHI Road to 1000″”
Long-Term Management Vision
We will aim to proactively further the proliferation of minimally invasive treatment* products from Japan to the world, increasing the quality of life of patients all around the globe while at the same time establishing the Asahi brand globally.
(*) Minimally invasive treatment: Treatment that doesn’t require thoracotomy or laparotomy but rather takes place from blood vessels at the wrists and thighs to minimize the mental and physical damage to clients with small cuts and little pain.
New Medium-Term Management Plan "ASAHI Road to 1000"
The Group has now established its “ASAHI Road to 1000” new mid-term management plan for the five years from the fiscal year ending June 2019 to the fiscal year ending June 2023.
We will aim to achieve consolidated sales of 80 billion yen in the fiscal year ending June 2023 as a milestone reaching consolidated sales of 100 billion yen, with the target operating margin of 25% at that time in the plan.
(*) In FYE June 2012, a temporary decrease in sales and profit occurred due to reduced production. The reason for such was that our main factory of our consolidated subsidiary company, Asahi Intecc Thailand was forced to suspend operations temporarily when flooding hit Thailand at that time.
Global Marketing Strategy
Our group currently provides products to more than 108 countries and regions across the globe. The number of patients with endovascular diseases in which our group’s products are used is expected to continue increasing on a global scale. As such, our group will aim to strengthen its revenue base at a worldwide level by enhancing sales and marketing functions in each region.
Strengthen the revenue base with direct sales structure
Actively launch new products despite reimbursement price reduction
In the Japanese market, Asahi Intecc J-sales, our consolidated subsidiary, has been selling Asahi Intecc products directly to hospitals and other organizations since July 2012. We will make efforts to acquire additional market share by taking advantage of this sales system and strive to strengthen our profit base by utilizing the trading company function to expand sales through synergy with other companies in Japan and overseas. We will launch new products in the Japanese market ahead of overseas markets and strive to increase earnings while aiming to establish a second or third main product.
Seize large market share through community-based agency
Aim to increase revenue by shifting to direct sales in stages
We have sold PTCA Guide Wires and Penetration Catheters etc., our main products, through multiple local-based agents closely tied to the EU and Middle East market and we have large market share.
Looking ahead, we will expand our market share of existing products and actively launch new products, etc. that are highly evaluated in Japan, proceeding with comprehensive product supply. In some regions in the EU and Middle East market, we plan to promote direct sales in stages and as a part of that, we have started direct sales in France since July 2019. We intend to further increase revenue through these activities.
Start direct sales of main products by strengthening sales structure
Increase revenue by strengthening customer-oriented sales structure
In the US market, we had previously sold our main product PTCA Guide Wires through distributors, but we have started to sell directly through our subsidiary, ASAHI INTECC USA, INC., since July 2018. While making full use of the existing direct sales structure, we will work to expand sales by establishing a system that tracks market trends closely up to the doctor, the final customer, for further promotion. In addition to PTCA Guide Wires, we will continue to enhance marketing and sales functions for other product groups and strive to increase revenue.
Strengthen system including transition to multiple agent system
Aim for expansion in the rapidly growing Chinese market
In the Chinese market, we sell through local agents. In the global market, China is particularly prominent in growth and is expected to develop further. Since the fiscal year ended June 2016, we have shifted to a multiple agent system centering on cardiovascular products, and have been expanding our market share further. Looking ahead, we will strive to further increase earnings while increasing the number of agents, enhance marketing and sales activities through our consolidated subsidiary Asahi Intecc Scientific (Beijing) Co., Ltd., and strengthen our backup system closely tied to local agents.