Enhancing Corporate Management Transparency through Strategic Advice and Independent Oversight

PHC Group’s Value Creation Plan 2027 identifies a clear commitment to achieving sustainable growth through a stronger focus on the Diagnostics & Life Sciences business as a key strategic priority. In pursuing this objective, the Group is making steady progress by leveraging its unique precision technologies and global business foundation to execute a range of initiatives. From an Independent External Director’s standpoint, several management challenges deserve ongoing attention: (1) further improving capital efficiency across the business portfolio, (2) responding effectively to evolving conditions in global markets, and (3) maintaining an effective balance between growth investments and financial discipline. To support management in addressing these issues, I provide guidance from three perspectives: introducing global best practices, optimizing the business portfolio with a strong focus on capital efficiency, and establishing KPIs to manage the progress of strategic initiatives. I also oversee a balanced framework that ensures effective resource allocation and strong governance. Looking beyond the near term, I place particular emphasis on disciplined investment decisions and the quantitative monitoring of investment outcomes. Management’s ability to execute strategy amid changing market conditions and demonstrate a credible path toward realizing returns on these investments will be critical. At the same time, I remain committed to supporting a culture that embraces diverse employee perspectives and encourages innovation.

Creating Sustainable Value through Disciplined Portfolio Management and Independent Governance

The Board of Directors at PHC Group evaluates its effectiveness annually and continues to make improvements by verifying the transparency of its proceedings and decision-making processes through quantitative indicators, while incorporating Japanese and global governance best practices.

As an Independent External Director, I work to ensure that key decisions regarding capital allocation and portfolio management are made through a robust process, supported by sound rationale and accountability.

Fiscal year 2025 marked a year in which the priorities outlined in the Value Creation Plan 2027—namely improving investment efficiency and strengthening portfolio management—were translated into concrete decisions and actions. A key example was the decision to transfer the Eversense^® continuous glucose monitoring(CGM) commercial business from Ascensia back to Senseonics. As Eversense continued to grow, it became increasingly clear that bringing development, manufacturing, and commercialization together within a unified structure would best support the product’s long-term growth potential.

PHC Group has invested in the CGM business for many years. This decision was reached through an objective assessment of investment efficiency and future potential, and I regard it as a compelling example of disciplined portfolio management.

Contributing to Value Creation through Fair Governance
on the Front Lines

To continuously improve corporate value, it is essential for a company to have a clear philosophy and objectives and to fulfill its responsibility to the market through management that exceeds the cost of capital. PHC Group has a strong awareness of both of these aspects and a goal of powering the future of healthcare through the introduction of ROIC-based management.

I have practiced ROIC-based management in conjunction with an on-site transformation at OMRON Corporation, including a V-shaped recovery of its European business. I currently serve as a director for multiple companies, including OMRON, where I participate in the nomination, compensation, and other committees, working to build highly effective governance including the evolution of institutional design.

As a result of my experience in both execution and oversight, I am certain that no matter how sophisticated a strategy may be, it cannot function if it diverges from the realities and attitudes on the ground, where customer value is created.

As an independent external director, I focus intently on whether management policy and autonomous actions on the front lines are aligned and the rationality of that alignment. I will oversee management that drives both corporate philosophy and capital efficiency from an objective perspective that values fairness to all stakeholders and will contribute to the sustainable creation of corporate value.