November 17, 2011
To whom it may concern:

Company Name : TOHO HOLDINGS CO., LTD.
Representative : Norio Hamada /President and Representative Director(Securities Code: 8129 / First Section of Tokyo StockExchange)
Contact : Katsuya Kato, Corporate Officer andGeneral Manager of Corporate Communications Officeand Corporate Planning Office(TEL: 03-5259-9520)

Notice Regarding Construction of the New Distribution Centers ofToho Holdings’ Subsidiary
TOHO HOLDINGS CO., LTD. (hereinafter “TOHO HOLDINGS”) is pleased to announce that its
wholly owned subsidiary, TOHO PHARMACEUTICAL CO., LTD. (Headquartered in Setagaya-ku,
Tokyo; Hiroyuki Kono, President and Representative Director; hereinafter “TOHOPHARMACEUTICAL”), has decided to construct two new distribution centers. An outline of the planis as follows:
1. Purpose of the construction
With respect to the existing distribution centers of TBC Omiya and TBC Higashi-Osaka, TOHOPHARMACEUTICAL, which is engaged in the pharmaceutical wholesaling business, has decided toconstruct two new distribution centers that will be equipped with further improved traceability inresponse to the growth in sales in the near future and the expansion of direct delivery systems tocustomers as well as implementing disaster countermeasures based on lessons from the Great East
Japan Earthquake. The TOHO HOLDINGS Group will make efforts to realize through theconstruction of these two new distribution centers the ever-more accurate, speedy and stable supplyof pharmaceuticals under the Group corporate slogan of “Total commitment to good health.”
2. Outline of new distribution centers
Name
TBC Saitama (Provisional name)TBC Hanshin (Provisional name)Place
Shobumachi, Kuki city, Saitama ward
7-86, Konoike, Itami city, Hyogo ward
(Many of the numbers have not yet beenfinalized.)
Site area
28,502.48 ㎡
31,214.08 ㎡
Building space
12,031.07 ㎡
11,798.06 ㎡
Total floor space 33,928.10 ㎡
28,761.25 ㎡
StructureThree-story RCSS structured building Two-story steel structured building(Partly three-story)
Maximum
40 billion yen / monthly
25 billion yen / monthly
shipping capacity
Numberof 30,000 items
25,000 items
product lines
Product lines
Pharmaceutical, OTC, Medical equipment, Medical supplies, Reagent
Coverage area
Saitama, Ibaraki, Tochigi, Gunma, Osaka, Hyogo, Kyoto, Shiga, Nara,Niigata, Aomori, Iwate, Akita
Wakayama, Aichi, Gifu, Mie(Miyagi, Fukushima, Yamagata)
Expected date of March, 2012
April, 2012
the start ofconstruction
Expected date of March, 2013
February, 2013
the completion13. Characteristics of new distribution centers(1) TBC Saitama (Provisional name)① Challenge to unmanned processing
TBC Saitama (provisional name) will implement piece picking using multi-axis robots (40% of
the total amount of piece picking work), realizing the automation of work equivalent to thatcarried out by 60.7 persons. It will also achieve the automation of packing using palletizing
robots.
② Implementation of direct delivery from the Center with piece picking according to eachcustomer
The Center will ensure labor saving in the work for delivery of the products at sales offices.
(2) TBC Hanshin (Provisional name)① Equipped with functions as a distribution center for reagentsTBC Hanshin (provisional name) will also introduce equipment that will make it possible toreplace the functions of the existing WILL Heiwajima (distribution center for reagents).
② Reverse sequence picking by delivery route
TBC Hanshin (provisional name) will achieve labor saving by automating picking and thecargo loading of folding containers in the reverse sequence from the final place of delivery.
(3) Common characteristics① Further improvement of highly accurate shipping
The new distribution centers aim to achieve a shipping accuracy of “Seven 9s” by improving on
the “Six 9s” (namely, 99.99994%), which has been achieved so far at the existing distribution
centers.
② Complete traceability
With the introduction of the Warehouse Management System* that incorporates the know-how
developed at the distribution centers of TOHO PHARMACEUTICAL, traceability to customers
will be secured through the management of the lot numbers of pharmaceuticals and theirexpiry dates, aiming to provide customers with product safety and assurance of supply.
* Warehouse Management System
This refers to a management system that centrally controls a series of distribution tasks within thewarehouse to improve efficiency in the management operations.

③ Comprehensive measures against natural disasters and to ensure security
With the duplexing of the host computer and the Warehouse Management System, theinstallation of an uninterruptible power supply system and periodical practice of disaster
exercises, etc., the Company has established a system that will ensure a stable supply ofpharmaceuticals if a natural disaster occurs.
4. Effects of the new distribution centers(1) As for the productivity of TBC Saitama (provisional name), it aims to achieve a monthly
shipping volume per person of 250 million yen value, two times that of TBC Tokyo.
(2) Both of the new distribution centers have made it their goal to reduce the distribution work of
the sales office by 20% and to increase the productivity of the persons in charge of delivery by
10% by shifting to the full implementation of shipping according to each customer and person in
charge of shipping as well as traceability.
(3) TBC Saitama (provisional name) aims to achieve a reduction in the required stock levels,including those for customers deposited in our sales office by 10%, equivalent to about 2,000
million yen value.

5. Capital Investment (Land, Structure, Distribution Equipment, System, etc.,)(1) TBC Saitama (Provisional name)
Total 9.9 billion yen (Land: 1.4 billion yen, Buildings and equipment: 8.5 billion yen)
(2) TBC Hanshin (Provisional name)
Total 7.4 billion yen (Land: 2.8 billion yen, Buildings and equipment: 4.6 billion yen)
* The amounts mentioned above may be altered in the course of future examination.
2

6. Schedule (Plan)(1) TBC Saitama (Provisional name)Start of construction: March, 2012 Completion: March, 2013 Operation: August, 2013
(2) TBC Hanshin (Provisional name)Start of construction: April, 2012 Completion: February, 2013 Operation: May, 20133