To whom it may concern:

May 11, 2011
TOHO HOLDINGS CO., LTD.
Norio Hamada, President and Representative Director(Tokyo Stock Exchange Securities Code: 8129)
Contact: Katsuya Kato
Corporate Officer and General Manager ofCorporate Communications Officeand Corporate Planning Office(TEL: 03-5259－9520)

Results of Operations for Fiscal Year Ended March 2011
In the market for prescription pharmaceuticals, the new drug pricing system centering on the“promotional point addition system for new drug discovery/off label drug dissolution” wasintroduced on a trial basis in April 2010 and NHI drug prices were reduced by 6.5% on average.
However, the market for the fiscal year ended March 2011 grew steadily at a growth rate of 2.5%
against the same period of the previous year (estimates by Crecon Research & Consulting Inc.),
supported by the aging of the population and the launching of new pharmaceuticals.
The TOHO HOLDINGS Group, while actively tackling existing problems in the distribution
system, including correction of total value transactions, the issue of the gap between NHI prices
and market prices and provisional shipping with the pricing yet to be negotiated, has strived toform reasonable selling prices based on the value of each pharmaceutical product and ensure
adequate profits in accordance with the objectives of the introduction of the new drug pricingsystem.
After the Great East Japan Earthquake, which occurred on March 11 this year, the Company’s
operations were hindered at first due to a power failure and disrupted communication systems atseveral operation bases including TBC Motomiya (located in Motomiya City in Fukushima
prefecture), a distribution center for the Tohoku region. However, the Company implemented its
backup activities from distribution centers in the Tokyo metropolitan area and operation bases inneighboring areas in accordance with the Company’s Business Continuity Plan and succeeded insecuring a stable supply of prescription pharmaceuticals to the districts affected by theearthquake and tsunami.
Under these circumstances, the Company’s consolidated operating results for the fiscal year
ended March 2011 recorded 1,059,612 million yen for net sales (an increase of 5.7% on ayear-on-year basis). However, the consolidated operating income and ordinary income were 5,839
million yen (a decrease by 46.6% on a year-on-year basis) and 9,481 million yen (a drop by 32.9%
on a year-on-year basis), respectively, due to intensified competition among wholesalers and thedifficult conditions for price negotiations. With respect to extraordinary profits and losses, theCompany posted extraordinary losses of 708 million yen for losses related to the Great East Japan
Earthquake, 1,365 million yen for impairment losses and 1,323 million yen as provision ofallowance for doubtful accounts, while recognizing extraordinary profits of 2,226 million yen forgains on the sale of investment securities. As a result, the consolidated net income was 7,283
million yen, a decrease by 11.9% on a year-on-year basis.
Each source of income for the fiscal year 2011 resulted in a decrease on a year-on-year basis
despite the increase in net sales, however, the net sales and each source of income exceeded theestimate of the Revised Earnings Forecasts published on February 1, 2011.

1

1. Financial Results for Fiscal 2011（Consolidated）(1) Comparison with the same period in the previous fiscal year
Consolidated
Fiscal 2011
Fiscal 2010
YoY Change
YoY Change Ratio

Net Sales

1,059,6121,002,122
57,490105.7

Operating Income

5,839
10,939-5,100
53.4

Unit: million yen, %Ordinary Income

9,481
14,133-4,652
67.1(2) Comparison with the forecast for full fiscal 2011
Consolidated
Fiscal 2011
Forecast for the Fiscal
2011 (After the revision)
Percentage against theFull-year Earnings
Forecasts

Net Sales

Net Income

7,283
8,263-980
88.1

Unit: million yen, %Operating Income

Ordinary Income

1,043,000

5,600

8,900

6,800

101.6

104.3

106.5

107.1

1,059,612

5,839

Net Income

9,481

7,283

(3) Gross profit rates, SGA expenses rate, Operating income ratio and Ordinary income ratio(Year-on-year change Ratio)

Unit: %

Gross profit to netsales

Operating income
to net sales

Ordinary income
to net Sales

Fiscal 2011

8.1

SG&A expenses tonet sales

Fiscal 2010

8.1

7.0

1.1

1.4

YoY Change Ratio

0.0

0.6

-0.5

-0.5

Consolidated

7.6

0.6

2. Forecast for fiscal 2012 (Full-year)
Net Sales
Fiscal 2012
Fiscal 2011
Increase/Decrease
Increase/Decrease
Ratio

1,075,000
1,059,612
15,3881.50.9

Unit: million yen, %OperatingIncome

6,900
5,839
1,061
18.2Ordinary
IncomeNet Income

9,500
9,481
194,900
7,283-2,383

0.2-32.7

Net Incomeper Share*62.68 yen
97.83 yen
-35.15 yen-35.8* Net income per share is calculated by including the 3,687,640 of new shares to be issued andallocated due to stock swap between SHOUEI CO., LTD. on April 1, 2011.
While fiscal 2012 is the year when no revision of the NHI drug prices is scheduled for theprescription pharmaceuticals market that the Company belongs to, it is very difficult to use themarket to make forecasts for the following fiscal year due to uncertain factors, including the decline
in medical examinations resulting from the sluggish economy, in addition to the extension ofcontrols over medical fees, as well as difficult price negotiations and the negative impact of theGreat East Japan Earthquake of March this year. However, the Company will strive to ensure
appropriate profit levels through a rise in operating income by increasing the number ofconsolidated subsidiaries and further control of price management, and make efforts to increase
commission revenues by expanding fee-based businesses.

2