Toward the realization of the drugstore
that contributes to the health of
each and every one of our customers

Hideaki Kirisawa

Representative Director, President

 

  We would like to thank you for your continued support.

 

  In order to be the community's No.1 Health Station by 2030, we are advancing a range of initiatives aimed at promoting health. These include ending tobacco sales, developing and expanding private brand (PB) products, a change in the point service, and implementing wage increases to enhance human capital. These efforts represent a strategic shift from focusing on scale to enhancing profitability.

 During the current fiscal year ended February 28, 2025, we prioritized initiatives that contribute to business recovery. However, by fully executing these measures, we are confident that we will achieve our vision of becoming the community's No.1 Health Station and will continue striving to improve productivity.

 It was approved at the Annual General Meeting of Shareholders held on May 27, 2025, that the company will become a wholly owned subsidiary of TSURUHA HOLDINGS INC. through a share exchange, and will be delisted as of the scheduled date of November 27, 2025.

 Under our corporate philosophy of “To promote higher quality of life and healthy lifestyles for our customers.” our group has continued to grow by actively opening new stores based on our four core strategies—Drug Store with Dispensing Pharmacy, Late-night Hour, Counseling, and Long-term care. We have also welcomed companies that share our philosophy and business model as valued partners. This growth has been made possible thanks to the guidance of our shareholders and investors, the support of our local customers, and the sincere dedication of each and every one of our employees. We extend our heartfelt gratitude to all.

 

 On the other hand, in order for our company to continue achieving sustainable growth and enhancing corporate value, we have considered what we must preserve and what we must change. After extensive discussions, including reflections on our past successes, we concluded that it is essential to strengthen our management foundation and accelerate digital management based on our customer data platform, thereby creating new services that align with the current era.

 With this awareness of the challenges we face, last autumn we introduced our management policy, 'Welcia 2.0.' While our group has been working daily toward realizing our vision for 2030 of becoming the community's No.1 Health Station, we have come to believe that a business integration with TSURUHA HOLDINGS INC. would enable us to achieve this goal more quickly and at a higher level than by acting alone. As a result, Welcia, Aeon, and TSURUHA have entered into a final agreement on a capital and business alliance, as well as a share exchange agreement concerning the business integration.

 Following the business integration (scheduled share exchange date: December 1), we will fully leverage all aspects of our management foundation as a new drugstore alliance. We will accelerate our efforts to provide prescription and over-the-counter pharmaceuticals to local customers, expand into the healthcare and wellness domains, and take on new challenges with greater speed. By creating new business opportunities, we aim to become an organization where employees can fully demonstrate their capabilities, unlock limitless potential, and grow into a company that maximizes its corporate value.

 

 We would like to take this opportunity to report on the current status of our company to our valued shareholders, and we respectfully ask for your continued understanding and support.

 

May 2025