# MEDICAL SYSTEM NETWORK Co., Ltd.: business model and financials

> Latest period: FY ending Mar 2026, consolidated, J-GAAP
> Unit: JPY millions
> Sources: 訂正有価証券報告書－第28期(2025/04/01－2026/03/31) (S100YX7Q)
> Page: https://vizora.meequs.com/en/company/medical-system-network
> Retrieved: 2026-09-30T21:37:19.438Z

## Company

Medical System Network, founded in 1999, is a company in Real Estate Development & Leasing listed on TSE Standard. It has 4,014 employees (consolidated).

| Field | Value |
| --- | ---: |
| Legal name | MEDICAL SYSTEM NETWORK Co.,Ltd. |
| Ticker | 4350 |
| Stock price | View on Yahoo Finance (https://finance.yahoo.co.jp/quote/4350.T) |
| Listing | TSE Standard |
| Head office | 札幌市中央区北十条西二十四丁目3番地 |
| Representative (per filing) | 代表取締役社長 田尻稲雄 |
| Founded | Sep 1999 |
| Share capital | ¥2.13B |
| Employees (consolidated) | 4,014 |
| Average salary (parent only) | ¥5.9M |
| Fiscal year end | March |
| Website | www.msnw.co.jp (https://www.msnw.co.jp/) |
| Corporate number | 6430001025872 |
| EDINET | E05274 |
| Industries (Vizora) | Real Estate Development & Leasing, Drugstores & Pharmacies, Takeout & Delivery Meals |

> Profile source: annual securities report (S100YX7Q, filed 2026-08-18). As of filing

## Five-axis industry profile

Primary industry: Drugstores & Pharmacies (2026-03-31)

| Axis | Industry percentile | Peers |
| --- | ---: | ---: |
| Revenue growth | 21.9 | 16 |
| Profitability | 28.9 | 19 |
| Cash conversion | 2.8 | 18 |
| Efficiency | 55.3 | 19 |

Each axis is shown independently. Missing values are labeled unavailable; no combined score is calculated. Industry rank is not an investment recommendation.

## Key points (generated from figures)

- About 96% of Medical System Network's sales come from Community pharmacy network segment, with Rental facility related and lunch catering business making up much of the rest.
- Out of every ¥100 of sales, about ¥3 is left as operating profit.
- Revenue changed +8.0% from the prior year, operating profit +5.0%.

## Key figures at a glance

| Metric | Value | Note |
| --- | ---: | ---: |
| Revenue | ¥132.2B |  |
| Operating income | ¥3.31B | Margin 2.5% |
| Net income | ¥1.07B | Margin 0.8% |
| Free cash flow | -¥6.3B |  |
| Largest business | Community pharmacy network segment | of segment revenue 96.4% |
| Employees (consolidated) | 4,014 |  |
| EPS | ¥90.36 |  |
| Book value per share | ¥833.89 |  |
| Equity ratio | 21.6% |  |
| Shares outstanding | 30,642,600 |  |
| Treasury shares | 833,100 |  |
| Shareholders | 6,337 |  |
| Average salary (parent only) | ¥5.9M | Filing company only |
| Cash ratio | 9.7% | Cash ÷ revenue 5.9% |
| Vs. industry median margin | -1.8 pp | Drugstores & Pharmacies |
| ROE | 6.5% | Derived from disclosed figures |
| ROA | 1.4% | Derived from disclosed figures |

## Notable figures

- FY2026, one segment accounts for 97% of positive segment profit

## What changed in 5 years

| Metric | FY ending Mar 2021 | FY ending Mar 2026 | Change |
| --- | ---: | ---: | ---: |
| Revenue | ¥104257000000 | ¥132186000000 | +26.8% |
| Operating income | ¥3429000000 | ¥3313000000 | -3.4% |
| Operating margin | 3.3% | 2.5% | -0.8 pp |
| Employees | 3,326 people | 4,014 people | +20.7% |
| Cash and equivalents | ¥10088000000 | ¥7743000000 | -23.2% |

### Change in segment revenue mix

Span: FY ending Mar 2021 → FY ending Mar 2026. Stable segment keys are connected; unmatched shares are marked as new or reorganized. Shares use total segment revenue.

| Flow | Revenue share |
| --- | ---: |
| 地域薬局ネットワーク事業 → 地域薬局ネットワーク事業 | 95.4% |
| 賃貸・設備関連事業 → 賃貸・設備関連事業 | 1.8% |
| 賃貸・設備関連事業 → 事業再編・廃止 | 0.4% |
| 給食事業 → 給食事業 | 1.7% |
| 給食事業 → 事業再編・廃止 | 0.6% |
| 新設・再編 → 地域薬局ネットワーク事業 | 1.1% |

Segment revenue source references: 6 (derived)

## Business growth × margin

X-axis: segment revenue CAGR. Y-axis: latest operating margin. Bubble size: latest revenue. CAGR requires at least two comparable years.

| Segment | CAGR span | Revenue CAGR | Latest revenue | Operating margin | Source refs |
| --- | ---: | ---: | ---: | ---: | ---: |
| Community pharmacy network segment | 5 years | +5.1% | ¥127140000000 | 4.7% | 2 |
| Rental facility related | 5 years | +0.7% | ¥2421000000 | 6.4% | 2 |
| lunch catering business | 5 years | -1.6% | ¥2287000000 | -0.8% | 2 |

## Income statement（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Revenue | 132,186 | 100.0% | S100YX7Q |
| Cost of revenue | 78,440 | 59.3% | S100YX7Q |
| Gross profit | 53,745 | 40.7% | S100YX7Q |
| SG&A | 50,432 | 38.2% | S100YX7Q |
| Operating income | 3,313 | 2.5% | S100YX7Q |
| Ordinary income | 3,193 | 2.4% | S100YX7Q |
| Pretax income | 2,552 | 1.9% | S100YX7Q |
| Income tax | 1,437 | 1.1% | S100YX7Q |
| Net income | 1,114 | 0.8% | S100YX7Q |
| Net income attributable to owners | 1,070 | 0.8% | S100YX7Q |

## Per ¥100 of revenue（FY ending Mar 2026）

| Part | JPY |
| --- | ---: |
| Cost of revenue | 59 |
| SG&A | 38 |
| Operating income | 3 |
| (Ref.) Net income | 1 |

### Margin funnel

Gross margin 40.7% → Operating margin 2.5% → Net margin 0.8%
Derived from reported figures (DERIVED).

## Revenue and profit pattern

Pattern: Revenue and profit up
Revenue growth: +8.0%; Core profit growth: +5.0%
Growth quality: revenue-led
Operating leverage (core profit growth ÷ revenue growth): 0.63×
Calculated from comparable annual consolidated filings.

## Year over year（FY ending Mar 2025 → FY ending Mar 2026、JPY mn）

| Metric | Prior | Current | Change | % change |
| --- | ---: | ---: | ---: | ---: |
| Revenue | 122,387 | 132,186 | 9,799 | +8.0% |
| Gross profit | 50,736 | 53,745 | 3,009 | +5.9% |
| Operating income | 3,154 | 3,313 | 159 | +5.0% |
| Net income attributable to owners | 1,262 | 1,070 | -192 | -15.2% |
| Operating cash flow | 4,459 | -3,441 | -7,900 | -177.2% |
| Free cash flow | 1,374 | -6,303 | -7,677 | -558.7% |

## History（JPY mn）

| Period | Revenue | Op. income | Op. margin | Net income | Op. CF | FCF | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| FY ending Mar 2020 | 105,241 | 1,615 | 1.5% | -895 | 4,232 | 2,774 | S100LPHH |
| FY ending Mar 2021 | 104,257 | 3,429 | 3.3% | 2,198 | 5,205 | 3,676 | S100OCU3 |
| FY ending Mar 2022 | 106,685 | 3,852 | 3.6% | 2,394 | 4,010 | 1,882 | S100R0WL |
| FY ending Mar 2023 | 109,551 | 3,163 | 2.9% | 1,610 | 4,973 | 3,366 | S100TOIF |
| FY ending Mar 2024 | 115,361 | 3,832 | 3.3% | 1,860 | 7,725 | 5,615 | S100W20A |
| FY ending Mar 2025 | 122,387 | 3,154 | 2.6% | 1,262 | 4,459 | 1,374 | S100YX7Q |
| FY ending Mar 2026 | 132,186 | 3,313 | 2.5% | 1,070 | -3,441 | -6,303 | S100YX7Q |

## People and productivity（FY ending Mar 2026, consolidated, J-GAAP）

| Metric | Value |
| --- | ---: |
| Revenue per employee (consolidated) | ¥32.9M |
| Operating income per employee (consolidated) | ¥825.4K |
| Net income per employee (consolidated) | ¥266.6K |

Employees, revenue and profit are consolidated. Average annual salary is a separate parent-company figure. Calculated from disclosed figures (DERIVED).

| History | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Employees (consolidated) | 3,514 | 3,619 | 3,744 | 3,860 | 4,014 |
| Average salary (parent company) | ¥5.5M | ¥5.6M | ¥5.7M | ¥5.6M | ¥5.9M |
| Average age (parent company) | 41.8 years | 42.1 years | 42.5 years | 42.5 years | 43.0 years |
| Average tenure (parent company) | 7.5 years | 7.7 years | 7.9 years | 7.8 years | 8.0 years |

Year over year: Employees (consolidated) +4.0% · Revenue (consolidated) +8.0%

## Segments（FY ending Mar 2026, consolidated, J-GAAP、JPY mn）

| Segment | Revenue | Share | Op. income | Op. margin |
| --- | ---: | ---: | ---: | ---: |
| Community pharmacy network segment | 127,140 | 96.4% | 6,025 | 4.7% |
| Rental facility related | 2,421 | 1.8% | 155 | 6.4% |
| lunch catering business | 2,287 | 1.7% | -18 | -0.8% |

### segmentMix — Revenue and profit mix

Calculated from disclosed figures (DERIVED). Shares use total segment revenue and total positive segment profit respectively. Difference = profit share − revenue share (pt). Inter-segment sales may prevent reconciliation to company revenue.

| Segment | Revenue share | Profit share | Difference (pt) | Margin |
| --- | ---: | ---: | ---: | ---: |
| Community pharmacy network segment | 96.4% | 97.5% | 1.1 | 4.7% |
| Rental facility related | 1.8% | 2.5% | 0.7 | 6.4% |
| lunch catering business | 1.7% | — | — | -0.8% |

Loss-making segment (excluded from profit shares): lunch catering business -18 JPY mn

Segment → industry: Rental facility related → Real Estate Development & Leasing / Community pharmacy network segment → Drugstores & Pharmacies / lunch catering business → Takeout & Delivery Meals

## Revenue by geography

No geographic revenue breakdown was disclosed.

## Cash flow（FY ending Mar 2026, consolidated, J-GAAP）

| Item | Amount (JPY mn) | % of revenue | Source |
| --- | ---: | ---: | ---: |
| Operating cash flow | -3,441 | -2.6% | S100YX7Q |
| Capital expenditure | 2,862 | 2.2% | S100YX7Q |
| Free cash flow | -6,303 | -4.8% | 算出 |
| Investing cash flow | -4,036 | -3.1% | S100YX7Q |
| Financing cash flow | 6,789 | 5.1% | S100YX7Q |
| Dividends paid | 356 | 0.3% | S100YX7Q |
| Share buyback | 0 | 0.0% | S100YX7Q |
| Change in cash | -688 | -0.5% | S100YX7Q |
| Cash and equivalents | 7,743 | 5.9% | S100YX7Q |

## Balance sheet

Figures are as of each fiscal year end. Derived values are marked as such in the source column. Lease liabilities are excluded from interest-bearing debt.

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 | Source |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Cash and equivalents | 8,171 | 8,111 | 8,242 | 8,431 | 7,743 | S100TOIF, S100W20A, S100YX7Q |
| Total assets | 62,941 | 66,223 | 68,149 | 70,586 | 80,100 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Net assets | 13,286 | 14,488 | 15,219 | 16,345 | 17,413 | S100TOIF, S100W20A, S100YX7Q |
| Share capital | 2,128 | 2,128 | 2,128 | 2,128 | 2,128 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Property, plant and equipment | 24,624 | 27,060 | 28,336 | 28,473 | 29,242 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Intangible assets excluding goodwill | 12,767 | 11,807 | 11,281 | 9,908 | 9,496 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Goodwill | 12,254 | 11,183 | 10,613 | 9,063 | 8,507 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Investment securities | 155 | 159 | 184 | 702 | 664 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Current assets | 18,701 | 20,265 | 20,773 | 22,627 | 31,800 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Current liabilities | 20,435 | 21,349 | 23,213 | 24,377 | 34,592 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Short-term borrowings | 1,016 | 1,016 | 588 | 588 | 9,761 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Long-term borrowings | 22,891 | 20,226 | 18,309 | 18,085 | 16,150 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Total liabilities | 49,654 | 51,735 | 52,930 | 54,241 | 62,686 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Non-controlling interests | 17 | 37 | 47 | 85 | 128 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Equity attributable to owners of parent | 13,377 | 14,590 | 15,284 | 16,184 | 16,897 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Retained earnings | 10,393 | 11,606 | 13,100 | 14,001 | 14,714 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |
| Treasury stock | -326 | -326 | -882 | -891 | -891 | S100R0WL, S100TOIF, S100W20A, S100YX7Q |

### Assets and funding mix

| Assets | Share | Source |
| --- | ---: | ---: |
| Cash | 10% | S100YX7Q |
| Property, plant and equipment | 36% | S100YX7Q |
| Intangibles and goodwill | 22% | S100YX7Q |
| Investment securities | 1% | S100YX7Q |
| Other assets | 31% | S100YX7Q |

| Funding source | Share | Source |
| --- | ---: | ---: |
| Other liabilities | 78% | S100YX7Q |
| Equity | 22% | S100YX7Q |
| Other liabilities | 0% | S100YX7Q |

### Balance sheet history

| Metric | FY ending Mar 2022 | FY ending Mar 2023 | FY ending Mar 2024 | FY ending Mar 2025 | FY ending Mar 2026 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Total assets | 62,941 | 66,223 | 68,149 | 70,586 | 80,100 |
| Equity | 13,286 | 14,488 | 15,219 | 16,345 | 17,413 |
| Interest-bearing debt | — | — | — | — | — |
| Cash | 8,171 | 8,111 | 8,242 | 8,431 | 7,743 |

## Asset intensity and goodwill

Ratios are derived from reported values. Goodwill is used only when separately reported, never inferred from combined intangible assets.

| Metric | Value | Sources |
| --- | ---: | ---: |
| Asset intensity (fixed assets ÷ revenue) | 22.1% | S100YX7Q |
| Fixed assets ÷ total assets | 36.5% | S100YX7Q |
| Goodwill ÷ parent equity | 50.3% | S100YX7Q |

Goodwill over 4 years: 12,254 → 8,507 JPY; total investing cash flow: -16,036 JPY. This does not imply causation.

### Cash quality

Net cash = cash − interest-bearing debt. Net debt ratio = (interest-bearing debt − cash) ÷ positive operating cash flow. Omit when debt components are incomplete; other ratios are derived from reported figures.

| Metric | Value |
| --- | ---: |
| Cash ratio (cash ÷ total assets) | 9.7% |
| Cash ÷ revenue | 5.9% |
| Net cash (cash − interest-bearing debt) | — |
| Net debt ÷ operating cash flow | — |
| Cash conversion (operating CF ÷ operating income) | -103.9% |
| Cash vs. profit gap | -4,511 JPY mn (of net income -421.6%) |
| Shareholder returns / net income | 33.3% |
| Shareholder returns / FCF | — |
| Shareholder payments — dividends / net income | 33.3% |
| Shareholder payments — dividends / FCF | — |
| CapEx intensity (capex ÷ revenue) | 2.2% |
| Investing CF relative to operating CF | — |

## ROA and ROE

ROE is decomposed into net margin × asset turnover × financial leverage. Leverage can raise ROE, so the ratio alone does not assess a company's condition. Ending balances are used without a prior year; total equity approximates parent equity when unavailable.

| Period | Net margin | Asset turnover | ROA | Financial leverage | ROE | Sources |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| 2022 | 2.2% | 1.70× | 3.8% | 4.71× | 17.9% | S100R0WL |
| 2023 | 1.5% | 1.70× | 2.5% | 4.62× | 11.5% | S100TOIF |
| 2024 | 1.6% | 1.72× | 2.8% | 4.50× | 12.5% | S100W20A |
| 2025 | 1.0% | 1.76× | 1.8% | 4.41× | 8.0% | S100YX7Q |
| 2026 | 0.8% | 1.75× | 1.4% | 4.56× | 6.5% | S100YX7Q |

## Ownership

| Counterparty | Relation | Ratio | As of |
| --- | ---: | ---: | ---: |
| 合同会社エスアンドエス | Major shareholder | 9.3% | 2026-03-31 |
| 沖中 恭幸 | Major shareholder | 8.4% | 2026-03-31 |
| 日本マスタートラスト信託銀行㈱（信託口） | Major shareholder | 7.8% | 2026-03-31 |
| 秋野 治郎 | Major shareholder | 7.4% | 2026-03-31 |
| 光通信ＫＫ投資事業有限責任組合 | Major shareholder | 7.0% | 2026-03-31 |
| ＭＳＩＰ ＣＬＩＥＮＴ ＳＥＣＵＲＩＴＩＥＳ （常任代理人 モルガン・スタンレーＭＵＦＧ証券㈱） | Major shareholder | 3.9% | 2026-03-31 |
| ㈱日本カストディ銀行（信託口） | Major shareholder | 3.1% | 2026-03-31 |
| メディカルシステムネットワーク従業員持株会 | Major shareholder | 2.9% | 2026-03-31 |
| ＩＮＴＥＲＡＣＴＩＶＥ ＢＲＯＫＥＲＳ ＬＬＣ (常任代理人 インタラクティブ・ブローカーズ証券株式会社) | Major shareholder | 2.8% | 2026-03-31 |
| 田尻 稲雄 | Major shareholder | 2.8% | 2026-03-31 |

## Sources

| Document | ID | Published | URL |
| --- | ---: | ---: | ---: |
| 訂正有価証券報告書－第28期(2025/04/01－2026/03/31) | S100YX7Q | 2026-08-18 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100YX7Q,, |
| 有価証券報告書－第27期(2024/04/01－2025/03/31) | S100W20A | 2025-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100W20A,, |
| 有価証券報告書－第26期(2023/04/01－2024/03/31) | S100TOIF | 2024-06-21 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100TOIF,, |
| 有価証券報告書－第25期(2022/04/01－2023/03/31) | S100R0WL | 2023-06-22 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100R0WL,, |
| 有価証券報告書－第24期(令和3年4月1日－令和4年3月31日) | S100OCU3 | 2022-06-23 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100OCU3,, |
| 有価証券報告書－第23期(令和2年4月1日－令和3年3月31日) | S100LPHH | 2021-06-25 | https://disclosure2.edinet-fsa.go.jp/WZEK0040.aspx?S100LPHH,, |

## Definitions

- Amounts are in millions of JPY (rounded). The period is stated in each table heading
- Operating margin = operating income ÷ revenue. Net income is attributable to owners of the parent when disclosed
- Free cash flow (FCF) = operating cash flow − capital expenditure
- ¥100 model = breakdown per ¥100 of revenue (rounded so parts sum to 100)
- Segment revenues include inter-segment sales and may not sum to consolidated revenue
- Source IDs are EDINET document IDs (docID). "算出" (derived) means computed from other disclosed values
- All figures are extracted mechanically from filings. AI-written text never generates figures
- Source: company filings submitted to EDINET (Financial Services Agency of Japan). Figures were extracted, edited and processed, and charts and text were created, by Vizora — not by the FSA (used under the Public Data License v1.0).