Midterm Targets and Margin Commitment Maintained
Management reaffirmed the midterm 3/4/5 plan targets: mid-single-digit revenue growth and a 20%+ operating margin long-term goal, and committed to delivering more than 100 basis points of margin expansion beginning in FY2027.
China Showing Early Recovery
After several quarters of double-digit decline, China reversed trend with reported growth of approximately 5–6% in the quarter following go-to-market changes (local manufacturing, training, dedicated resources) and a new China President starting in March.
Majority of Ship-Hold Products Returned to Market
About 70% of products placed on ship hold have been released back to markets after risk reviews, reducing immediate disruption and allowing phased revenue recovery as remaining products are remediated.
Clear Remediation Plan and QA/Regulatory Actions
Company initiated a risk-based product review, global harmonization of quality systems, targeted strengthening of quality and regulatory capabilities, and active dialogue with the FDA to address observations across inspected sites.
Operational and Leadership Changes
Announced leadership appointments for global operations and technology (e.g., David Shan, Syed), and reiterated intention to develop Japanese talent; emphasized digital and operational improvements as levers for sustained cost reduction.
Cost Optimization Program Proceeding
Confirmed headcount optimization of ~2,000 positions with restructuring provision increased to JPY 31 billion (accounting/provisioning timing), with the total anticipated cost across the program unchanged and savings outlook (JPY 24 billion reduction effect) preserved.