Governance Initiatives

Message from External Directors

When appointing external directors, the company’s basic policy is to consider the skills and experience of full-time directors and officers, and then select individuals who possess the skills and experience to supplement the company’s needs. Through the appointment of external directors, PHC Group aims to achieve sustainable growth and strengthen its corporate governance by obtaining recommendations on the management of PHC Group from objective perspectives that are based on the extensive experience and knowledge of external directors.
The company’s independent external directors possess a wealth of experience and knowledge from numerous companies based in Japan and globally, and fulfill an important role in achieving sustainable growth for the group. Below are messages from our three independent external directors on topics including our company’s unique characteristics and strengths our future and possibilities, and how personal skills and experience can be utilized in management. (Integrated Report 2023)

Kyoko Deguchi

Kyoko DeguchiDirector (Independent External Director)

My role in supporting
PHC Group as a truly global company

PHC Holdings Corporation was listed on the Tokyo Stock Exchange in 2021 with three core business segments as its pillars. Each segment has a growth strategy, but the company is prioritizing continuous glucose monitoring (CGM) systems in the growing diabetes market and digital transformation services for healthcare providers. Our future challenge is to create synergies amongst business units. We need to accelerate collaboration across business units as well as to raise awareness of the “One PHC” concept, where we aim to become a true global company that harnesses diversity, inclusion and strong business results.
In addition to my experience working at global pharmaceutical and plastic engineering manufacturing companies I also leverage my experience in managing biotech and medical material manufacturers as well as operating medical institutions. Based on my healthcare background, I monitor and advise PHC Group’s key businesses on compliance operating efficiencies, and business strategies. I actively engage in dialogue with employees, thereby conveying the voices of on-site employees to management, and candidly offer recommendations to the Board of Directors. As M&A activities are expected to increase in the future, we will need to pay close attention to potential compliance issues that can be detected through on-site visits. The three independent external directors have a diverse background and skill sets as depicted in the skill matrices. Each director complements each other in supporting the management team.
Currently, as chairperson of the Nomination and Compensation Committee, I am focusing on succession planning and talent development for the next generation. As a result, PHC Group will launch the first global talent development program in 2024, with the aim of building a solid skillset foundation and creating a cross divisional global career path for next-generation executives.

Ivan Tornos

Ivan TornosDirector (Independent External Director))

Through ESG initiatives,
I will contribute to the competitive
advantage of PHC Group.

Our company’s commitment to ESG is very strong, as demonstrated by the investments made in this area and the results obtained so far. Having been around ESG metrics around the world for quite some time, it is clear to me that our management is deeply focused on making ESG a key competitive advantage for our company and the potential and benefits to society are limitless.
On the environmental side, CO2 emissions are expected to be reduced steadily in both our Japan sites and international locations. Manufacturing sites both within and outside Japan have gained ISO14001 certifications and now have very concrete goals for further improvement to identify “materiality” and set specific KPIs for all ESG items.
From a social commitment standpoint, we are contributing to society through products and service launches that are advancing healthcare innovation at a very rapid pace. Furthermore, the company is committed to advancing diversity both at the board and management levels as evidenced by the most recent hirings across key leadership and board positions. We take engagement with employees seriously and we track it with the same meticulous rigor as we track all of our operating activities.
Lastly, but equally important, from a governance standpoint the company has advanced at a relentless pace in the last few years creating board committees for strong governance across critical areas for the enterprise, from talent to rigor in financial management and overall corporate responsibility. I am proud to be a member of the team!

David Sneider

David SneiderDirector (Independent External Director)

Based on PHC Group’s management philosophy,
I will utilize my own experience to
contribute to achieving the company’s goals.

I have been an external director at PHC Holdings Corporation for approximately 18 months. I was elected to the external director role around the same time that our new management team, led by Shoji Miyazaki and Koichiro Sato, assumed the leadership of the company. I have been impressed by the energy and enthusiasm with which management has been addressing the significant challenges facing PHC Group.
PHC Group has an honorable mission to contribute to the health of society through efforts to create healthcare solutions that have a positive impact and improve the lives of people. The company and its shareholders can take pride that during the COVID-19 crisis, LSI Medience processed PCR tests for many people in Japan who had symptoms and PHCbi’s cutting-edge ULTs were utilized extensively to store vaccinations to protect against COVID-19.
PHC Group is seeking to enhance its value through its diverse portfolio of healthcare solution companies. In each of its businesses, PHC Group is addressing distinct challenges with respect to competition, technology and other factors. For example, in Diabetes Management, Ascensia Diabetes Care seeks to leverage its position in the established blood glucose monitoring market while working with Senseonics to grow sales of the innovative Eversense continuous glucose monitoring system. And in Japan, Wemex has recently strengthened its position in the Healthcare IT market through its acquisition of FUJIFILM Healthcare Systems’ electronic medical record and medical-receipt systems business.
As an external director with long experience as a lawyer working with Japanese companies on their capital markets and M&A strategies, I am working to assist the board and management in achieving their ambitious goals for the future of PHC Group.