A Message from the President
Terumo was established in 1921 by a group of medical scientists led by Dr. Shibasaburo Kitasato, known in Japan as “the father of modern medicine.” Their aspiration was to create a superior clinical thermometer to protect peoples' health, and we continue to respect and maintain this same spirit. In accordance with our corporate mission of “Contributing to Society through Healthcare,” we provide a stable supply of high-quality, superior products, and proactively address the host of social issues that surround healthcare.
Continued Pursuit of New Value
The environment surrounding the healthcare industry has been undergoing a dramatic transformation. In developed countries, reducing medical costs and improving the quality of life have become major issues, shaped by changes in the social landscape like aging populations and slowing economies. In developing countries, meanwhile, economic development is spurring growing needs with respect to healthcare.
Terumo draws on its unique technologies in the pursuit of new value to address such public needs. In addition to the effort to improve treatments more effective, we are working to lessen the physical strains on patients, as well as to enhance the economic efficiency of medicine through shorter hospital stays and other means. As medical devices are only effective when used properly, we also provide technical training and other types of support to medical professionals for the safe use of advanced technologies. Further, as a medical device manufacturer developed to cope with Japan's graying society, we are working to proactively address the issues of aging populations around the world.
A Stronger Foundation for Sustainable and Profitable Growth
Terumo conducts global management with the goal of “sustainable and profitable growth” in order to continuously contribute to society through healthcare. We are expanding our overseas production base to meet the growth in global demand over the medium to long term, as well as to bolster our price competitiveness and resilience to the strong yen. We will establish a new factory in Vietnam, the second in the country, and expand the production scale of existing factories in Vietnam and the Philippines, as well as taking other measures to strengthen our global production competency. At the same time, in recent years the U.S. FDA and other countries' government authorities have tightened regulations, requiring an even stricter system of quality control. We will remain steadfast in our infrastructure investments, establish an unshakable foundation for sustainable growth, and strive to ensure safety and reliability.
Corporate Governance Principle
Terumo has formulated a corporate governance principle aimed at ensuring it remains a trusted corporation. We have set internal rules requiring that at least 20% of directors be independent directors, and that more than half of corporate auditors be external corporate auditors, along with other steps to reinforce the board's oversight function and improve the quality of decision-making. We have also established a Corporate Governance Committee with the aim of enhancing transparency and objectivity of management. The chairperson and more than half of the members of the committee are independent directors. The committee recommends candidates for directorships, evaluates director performance and deliberates on compensation proposals. We believe that along with better systems, a corporate culture to create “a highly motivating and challenging workplace with open and candid communication, with forward looking spirit,” is vital to effective governance, and are taking action to foster such values.
Terumo will stably increase dividends with a target payout ratio of 30% over the medium to long term, linked to business performance and investment plans. I believe that my mission is to do my utmost in management to achieve sustainable growth, and contribute to healthcare around the world. Thank you for your unwavering support of Terumo.