Summary of Consolidated Financial Results
for the Third Quarter of Fiscal 2009
Name of Listed Company:

Toho Pharmaceutical Co., Ltd.

February 4, 2009
Listed: Tokyo Stock Exchange

Securities Code Number:

8129

URL:

http://www.tohoyk.co.jp

Corporate Representative / Title Norio Hamada / President and CEO
Contact Representative / Title
Toru Sasaki / General Manager of Financial and Accounting Department Administration Division.
TEL: +81-3-4330-3735
Scheduled submission date for quarterly report: February 13, 2009
(Amounts are truncated to the nearest million yen.)
1. Consolidated Operating Results for the Third Quarter of the Fiscal Year ending March 2009
(from April 1, 2008 to December 31, 2008)(1) Consolidated Results of Operations (Cumulative)(Percentages indicate the rate of change compared with the preceding fiscal year.)
Net Sales
Operating Income
Ordinary Income
Net Income
Million yen% Million yen% Million yen% Million yen%
Third Quarter of Fiscal 2009 634,294
(─)
5,772
(─)
8,398
(─)
-930
(─)
Third Quarter of Fiscal 2008 614,991
(4.3)
8,424
(7.8)
11,187(5.7)
6,712(11.3)

Third Quarter of Fiscal 2009
Third Quarter of Fiscal 2008

Current Net Income
per Share

Current Net Income
per Share - Diluted

Yen-15.80118.83Yen―
108.66(2) Consolidated Financial Position
Total Assets

Net Assets

Million yen
422,134
387,273

Third Quarter of Fiscal 2009
Fiscal 2008

Million yen
82,47480,772

Shareholder’s Equity
Ratio
%
19.5
19.9

Net Assets
per Share
Yen
1,357.67
1,351.96(Reference) Shareholder’s equity: Third Quarter of Fiscal 2009: 82,412 million yen; Fiscal 2008: 77,237 million yen

2. Historical Payment of Dividends
Cash Dividend per Share
End of
End offirst quartersecond quarter
Yen
Yen
Fiscal 2008
─
8.00
Fiscal 2009
─
10.00
Fiscal 2009 (Projected)
──(Note) Revision of dividend forecast in the current quarter: None

End ofthird quarter
Yen──Year-end

Annual

Yen
8.00

Yen
16.00
─
20.00

10.00

3. Consolidated Projected Results of Operations during Fiscal Year 2009 (from April 1, 2008 to March 31, 2009)(The figures in percentages indicate changes from the preceding fiscal year for the year-end )Net Sales
Million yen

Operating Income％ Million yen

Ordinary Income％ Million yen％ Million yen

Year-end
830,000(3.1)
5,200 (-49.4)
8,600(-38.1)(Note) Revision of consolidated projected results of operations in the current quarter: None―1―

Current Net Income

110％(-98.7)

Current Net
Income per
Share
Yen

1.87

4. Others(1) Changes in material subsidiaries during the term (changes in special subsidiaries accompanying a change
in the scope of consolidation):
N.A.
(2) Application of simplified accounting process and application of accounting process which is peculiar tothe compilation of consolidated quarterly financial statements: Applicable(Note) For a detailed description, refer to page four under “4. Others (1)” in “Qualitative Information,
Financial Statements and Others.”(3) Changes in accounting principles, procedures, presentation methods, etc. concerning the preparation ofquarterly consolidated financial statements (to be stated in changes based on the quarterly consolidated
financial statements presented)(i) Changes due to revision of accounting standards, etc.:
Applicable(ii) Changes other than (i):Applicable(Note) For a detailed description, refer to page five under “4. Others (2)” in “Qualitative Information, Financial
Statements and Others.”(4) Number of shares outstanding (Common stock)
Number of shares outstanding at end of fiscal year Third Quarter of Fiscal 2009:(i)
Fiscal 2008:(Including common stock for treasury)
Third Quarter of Fiscal 2009:(ii) Number of treasury stocks at end of fiscal year
Fiscal 2008:
Third Quarter of Fiscal 2009:(iii) The average number of shares during the first quarter
Third Quarter of Fiscal 2008:

60,766,622 shares
59,219,061 shares
65,412 shares
2,089,059 shares
58,892,914 shares
56,484,582 shares* Explanation of Appropriate Use of Performance Projections and Other Items Requiring Special Description- Beginning in the consolidated fiscal year under review, the Accounting Standards for Quarterly Financial
Reporting, ASBJ Statement No. 12, and the Guidelines for Application of Accounting Standards for
Quarterly Financial Reporting, ASBJ Guidelines for Application of Accounting Standards No. 14, are being
applied. In addition, the Company has complied with the Regulations for Quarterly Financial Statements incompiling consolidated quarterly financial statements.
- The above forecast figures are based on the information available to the management at the present moment,
and therefore actual business results may differ from the above forecast figures due to a variety of factors that
may occur in the near future.
For further information concerning the above projections, please refer to page 4, under the section [Qualitative
Information, Financial Statements and Related Items] 3. Qualitative Information on Projected Consolidated
Results of Operations.

―2―[Qualitative Information, Financial Statements and Related Items]
1. Qualitative Information on Consolidated Results of Operations
During the nine months that ended December 2008, the Japanese economy showed increasing signs of an
economic downturn, including sharp production cutbacks mainly in the manufacturing industry, curtailed capital
investment, and the contraction of employment, hit by the global financial crisis stemmed from the subprime
mortgage crisis in the US financial markets, and the prospects for the Japanese economy thus became more andmore uncertain.
Each industry has been successively announcing significant declines in both sales and earnings and deficits forthe current fiscal year against initial projections at the start of the fiscal year. The overall market of thepharmaceutical industry is estimated to have grown moderately (growth by 2.0% from the same period(April-December, 2008) of the preceding year, according to a preliminary report released by Crecon Research &Consulting), assisted by the progressive aging of the Japanese population and the expanded market forpharmaceuticals for lifestyle-related diseases, despite the implementation of the revision of the National Health
Insurance drug prices (a price cut by an average of 5.2%) and the revision of the medical fee scheme in April
2008.
Meanwhile, the overall pharmaceutical wholesale industry was committed to improving its distribution systems
in order to correct the issues of provisional shipping with the pricing yet to be negotiated, total value transactions,and differentiated pricing, in response to the emergency proposal of the Council for Improvement inPharmaceutical Product Distribution and, as a result, achieved a certain level of results. However, on the other
hand, severe price competition arose among pharmaceutical wholesalers, creating a harsh business situation
whereby each pharmaceutical wholesale company was unable to ensure its projected profit ratio.
Under this business environment, and in the third year of its medium-term management plan, “The Third
Founding-Innovation and Creation 07–09,” the Toho Pharmaceutical Group continued to prioritize its key
policies of normalizing and streamlining operations, seeking higher added value and reinvigorating its
organization and human resources. The Company boldly promoted proposal-based marketing that is centered on
price negotiations to achieve fair profits and its unique customer support systems. As a result of these initiatives,
the Company believes that it has achieved some positive results in normalizing operations, in particular in termsof correcting the issues of provisional shipping with the pricing yet to be negotiated and total value transactions.
In terms of adding higher value to its operations, the Company has established and expanded its fee businessmodel in which the Company collects usage fees in exchange for its services. However, pressures to cut prices
from large medical institutions and the severe price competition among pharmaceutical wholesalers continued
and the Company’s businesses were hit by the movements above and this caused the profit ratio to decline.
The consolidated net sales for the cumulative nine-month period for the third quarter were 634,294 million yen,
an increase by 3.1% on a year-on-year basis. The consolidated operating income was 5,772 million yen, adecrease by 31.5% on a year-on-year basis and ordinary income was 8,398 million yen, a decrease by 24.9% on a
year-on-year basis. As a consequence, the consolidated net income for the nine-month period was a loss of 930
million yen, due partly to Fuji Biomedix-related extraordinary losses posted in the second quarter of the current
fiscal year.
The outline of the operating results by business segment is as follows. In pharmaceutical wholesaling operations,net sales amounted to 625,252 million yen, up by 2.9% on a year-on-year basis, sustaining a growth rate
exceeding the market average, and operating income was 5,778 million yen, down by 31.9% on a year-on-yearbasis, for the cumulative nine-month period for the third quarter of the fiscal year ending March 2009(consolidated). This amount of net sales includes intersegment sales of 7,705 million yen. In dispensing
pharmacy operations, consolidated net sales for the third quarter (cumulative) amounted to 16,419 million yen,
up by 47.6% on a year-on-year basis, and operating income reached 928 million yen, up by 42.9% on a
year-on-year basis. In CRO and SMO operations, net sales for nine months of the current fiscal year amounted to
328 million yen, down by 32.2% on a year-on-year basis, and operating income showed a deficit of 285 million
yen.
(Note) The percentage change over the same period last year is just for reference.
2. Qualitative Information on Consolidated Financial Position(Assets)
The consolidated current assets as of the end of December 2008 increased 11.5% from the end of the preceding
consolidated fiscal year to 327,291 million yen, due to an increase in cash on hand and deposits of 1,330 million
yen, an increase in notes and accounts receivable of 22,674 million yen, an increase in products of 6,701 million
yen, an increase in purchasing rebate receivables of 1,652 million yen, and an increase in short-term loans
receivable of 2,061 million yen, despite an increase in the allowance for doubtful receivables of 1,371 million
yen (a factor for a decrease in the current assets).
Fixed assets as of the end of December 2008 increased 1.1% from the end of the previous year to 94,842 million
yen, due primarily to an increase in goodwill and other investments by 2,386 million yen and 3,014 million yen
respectively, despite a decrease in investment securities by 2,777 million yen and an increase in the long-termallowance for doubtful accounts of 1,435 million yen.
As a result, consolidated total assets as of the end of December 2008 increased 9.0% from the end of the previous
consolidated fiscal year to 422,134 million yen.
(Liabilities)
Consolidated current liabilities as of the end of December 2008 increased 15.2% against the end of the preceding
consolidated fiscal year to 320,251 million yen, which is attributable to the increase in notes and accounts
payable and bonds redeemable within one year by 38,141 million yen and 9,510 million yen, respectively, despite
the decrease in short-term loans payable, taxes payable and the reserve for bonuses by 1,384 million yen, 2,910
million yen, and 1,217 million yen, respectively.
Long-term liabilities decreased 32.1% against the end of the previous fiscal year to 19,408 million yen, due partly
to a decrease in bonds by 9,500 million yen.
As a result, total liabilities rose by 10.8% from the end of the preceding fiscal year to 339,659 million yen.
(Net assets)
Total net assets as of the end of December 2008 increased 2.1% from the end of March 2008 to 82,474 million
yen, due primarily to an increase in the capital surplus by 3,885 million yen and a decrease in treasury stock by
3,397 million yen, despite decreases in retained earnings and minority interests by 2,154 million yen and 3,480
million yen, respectively.

―3―3. Qualitative Information on Projected Consolidated Results of Operations
The Company has maintained its business policy of securing fair profits so far. However, particularly in the third
quarter of the fiscal year ending March 2009, markdown pressures from medical institutions, primarily thosefrom large hospitals, resulting from the worsened business environment, including a curb on the number of
medical examinations by patients due to the sluggish economy, showed no sign of touching bottom. Furthermore,
severe price competition among pharmaceutical wholesalers has continued and the pricing environment hasdeteriorated beyond the Company’s projections. As a result, the Company’s accumulated income for the third
quarter came below its previous forecast for each item.
Taking into consideration the continuing worsening of the business environment, the Company has revised its
full-year earnings forecasts for the fiscal year ending March 2009. For further details, please refer to the Notice
regarding the Revision of the Full-year Earnings Forecasts for the Fiscal Year ending March 2009 disclosed on
February 4, 2009.
In order to be selected by customers, Toho Pharmaceutical Group intends to focus on creating wholesale
functions and high added value and promoting proposal-based marketing from the customer’s perspective. At thesame time, the Group will make efforts to promote a reduction in administrative costs through improvements in
productivity and to expand the fee business model.
4. Others(1) Application of simplified accounting process and application of accounting process which is peculiar to thecompilation of consolidated quarterly financial statements(i) Simplified accounting processing methods- Method of calculation of estimated doubtful debts in general credits
The loan loss ratio and other items at the end of the consolidated third quarter under review are deemed not
to have changed significantly from the end of the previous consolidated fiscal year. For this reason, theloan loss ratio, etc. as of the end of the previous consolidated fiscal year are used to calculate the loan loss
ratio for the first quarter under review.
- Method of evaluating inventory assets
With respect to the calculation of ending inventory for the consolidated third quarter under review, on-site
inventory is skipped. Instead, a reasonable method based on the ending on-site inventory for the
consolidated second quarter is used to calculate inventory.
In addition, with respect to the devaluation of book value for inventory assets, we used the method todevalue book value by estimating fair selling prices for items the profitability of which has apparently
declined.
- Method of calculation of deferred and accrued account items
We use the method to post deferred and accrued account items by estimated amounts based on reasonablecalculation methods.
- Methods of calculation of corporate and other taxes, deferred tax assets, and deferred tax liabilities
With respect to the calculation of tax payment amounts, such as corporate tax, the method to limit
addition/subtraction items and tax deduction to important ones is used.
With the collectibility of deferred tax assets, the Company evaluates the collectability based on business
forecasts and tax planning used in the preceding consolidated fiscal year, if there have been no materialchanges in its business environment and temporary differences from the planning recognized from the endof the previous fiscal year. If any significant changes in the Company’s business environment or temporary
differences from the planning are recognized, the Company evaluates the collectability based on revised
business forecasts and tax planning reflecting the relevant significant changes.
- Netting of credits, liabilities, and transactions between the Company and its consolidated subsidiaries(Netting of credits and liabilities between the Company and its consolidated subsidiaries)
If the amount of credits and liabilities differ, the credits and liabilities are netted within a reasonable range
without adjusting the differences.
(Netting of transactions between the Company and its consolidated subsidiaries)
If transaction amounts differ, but the significance of the differences is small, the transactions are netted byadjusting to the amount of transaction at Toho Pharmaceutical Co., Ltd.
- Erasure of unrealized gains and losses
The amount of inventory assets in the amount of ending inventory in the third quarter of fiscal 2009 andthe profit/loss ratio concerning the transactions are calculated in reasonable estimation.
(ii) Accounting processing particular to compilation of consolidated quarterly financial statements
Not applicable.

―4―(2) Changes in accounting principles, procedures, presentation methods, etc. concerning the preparation ofquarterly consolidated financial statements(i)

Beginning in the first consolidated quarter under review, the Accounting Standards for Quarterly Financial
Reporting, ASBJ Statement No. 12 dated March 14, 2007, and the Guidelines for Application of AccountingStandards for Quarterly Financial Reporting, ASBJ Guidelines for Application of Accounting Standards No.
14 dated March 14, 2007, are being applied. In addition, the Company has complied with the Regulations
for Quarterly Financial Statements in compiling consolidated quarterly financial statements.

(ii) Beginning in the first consolidated quarter under review, the Accounting Standards for Measurement of
Inventories, ASBJ Statement No. 9 dated July 5, 2006, is applied. Accordingly, the measurement standard
was changed from the conventional cost method to the cost method of devaluing book value upon decline ofprofitability.
As a consequence, gross income, operating income and ordinary income decreased by 66 million yen,respectively, and net loss before income taxes increased by 66 million yen, compared with those based on
the conventional method.
The effects of the changes on segment data are discussed in relevant sections.
(iii) Beginning in the first consolidated quarter under review, the Accounting Standards for Lease Transactions,
ASBJ Statement No. 13 dated June 17, 1993, with the final revision on March 30, 2007, as well as the
Guidelines for Application of the Accounting Standards for Lease Transactions, ASBJ Guidelines No. 16
dated January 18, 1994, with the final revision on March 30, 2007, are applied promptly. With respect tofinancing lease transactions outside ownership transfer, accounting processing was changed from themethod concerning conventional lease and rental transactions to the method concerning conventional sellingand buying transactions, and are posted as leased assets.
In addition, depreciation for leased assets uses the method of assuming the lease period as the expected
lifetime, and calculating depreciation by setting the residual value as zero.
With respect to financing lease transactions outside ownership transfer with the lease start date before thefirst year of the application of the new method, the accounting method concerning conventional lease andrental transactions continues to be employed.
As a result, leased assets of 324 million yen were posted in tangible fixed assets compared with theconventional method, which does not have any effect on income.
The effects of the changes on segment data are discussed in relevant sections.

―5―5. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets of the Third Quarter(Million of yen)

End of consolidated third quarter(December 31, 2008)

Summarized consolidatedbalance sheet for the end of theprevious consolidated fiscal year
(March 31, 2008)

18,073228,030500
53,161
29,283-1,757327,291

16,742
205,355498
46,46024,752-385
293,424

45,74745,545

8,758
2,229
10,987

6,371
2,640
9,011

40,463-2,355
38,107
94,842
422,134

40,211-920
39,291
93,849387,273

AssetsCurrent assets
Cash on hand and on deposit
Notes and accounts receivable
Marketable securities
Products
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Property, plant and equipment
Intangible fixed assets
Goodwill
Other
Total intangible fixed assets
Investments and other assets
Other
Allowance for doubtful receivables
Total Investments and other assets
Total fixed assets
Total assets―6―

(Million of yen)

End of consolidated third quarter(December 31, 2008)

Summarized consolidatedbalance sheet for the end of theprevious consolidated fiscal year
(March 31, 2008)

297,859
5,111
9,510
93
1,288
57
353
5,977
320,251

259,717
6,495
―
3,003
2,506
75
319
5,780
277,898

400
331
2,180
3,255
13,24019,408339,659

9,900
535
2,095
2,839
13,23228,601
306,500

10,64928,067
46,674-38
85,353

10,59924,181
48,829-3,43680,175

1,631-4,572-2,941
62―
82,474422,134

1,699-4,637-2,93754
3,480
80,772387,273

Liabilities
Current liabilities
Notes and accounts payable
Short-term loans payable

Bonds redeemable within one year
Income taxes payable
Accrued bonuses
Directors’ bonuses
Reserve for sales returns
Other
Total current liabilities
Long-term liabilities
Bonds payable
Long-term debt
Accrued retirement benefits for employees
Negative goodwill
Other
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Unrealized gains on revaluation
Unrealized gains on available-for-sale securities
Unrealized gains on revaluation of land
Total unrealized gains on revaluation
Equity warrants
Minority interests
Total net assets
Total liabilities and net assets―7―

(2) Consolidated Profit and Loss Statement of Third Quarter[Third Quarter (Nine Months ended December 31, 2008)](Million of yen)

Net sales

Consolidated cumulative period of
the current third quarter(from April 1, 2008 to December 31,
2008)
634,294

Cost of sales
Gross income
Selling, general and administrative expenses
Provision for allowances for directors’ bonuses andsalaries
Provision for accrued bonuses
Provision for directors’ bonuses
Provision for accrued retirement benefits for
employees
Welfare expenses
Vehicle expenses
Depreciation and amortization
Amortization expenses for goodwill
Rent
Taxes and dues
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Received commission
Amortization expenses for negative goodwill
Equity in earnings of investees
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss before deduction of temporary consumption
tax payment
Other
Total non-operating expenses
Ordinary income

583,964
50,32923,496
1,255
56
130
3,498
1,024
1,578
979
3,506
583
8,445
44,557
5,772
108
412
1,427
864
6
617
3,437
96
615
98
811
8,398

―8―

Consolidated cumulative period of
the current third quarter(from April 1, 2008 to December 31,
2008)
Extraordinary gains
Gains on sales of fixed assets
Gains on sales of investment securities
Gains on revision of retirement benefits system
Other
Total extraordinary gains
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Loss on revaluation of affiliates stocks clearance
Provision of allowance for doubtful accounts
Other
Total extraordinary losses
Income before income taxes
Corporate, inhabitant and enterprise taxes
Adjustments for income taxes
Total income before income taxes
Minority interests
Current net income

0
211
220
34
467
48
145
4,586
2,952
168
8,900
-34
898
-46
851
43
-930

―9―

(3) Consolidated Statements of Cash Flows(Million of yen)

Consolidated cumulative period of
the current third quarter(from April 1, 2008 to December 31,
2008)
Cash flows from operating activities
Income before income taxes
Depreciation
Loss on impairment
Amortization expenses for goodwill
Amortization expenses for negative goodwill
Increase (decrease) in accrued employees’
retirement benefits
Increase (decrease) in reserve for sales returns
Increase (decrease) in accrued bonuses
Increase (decrease) in accrued directors’ bonuses
Increase (decrease) in allowance for doubtfulreceivables
Interest and dividend income
Interest expense
Loss (profit) on sale excluding fixed assets
Loss (profit) on sale and assessment of investment
securities
Loss on revaluation of affiliates stocks clearance
Loss on revaluation of golf club memberships
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
Increase (decrease) in accrued consumption taxes
Other loss (profit)
SubtotalInterest and dividend income
Interest payment
Payment of income taxes
Other
Net cash provided by operating activities

-34
1,578
145
979
-864
-76
32
-1,250
-21
2,803
-520
96
48
-139
5,586
6
-23,111-6,038-2,11738,876931-964-1,385
14,558514-91-4,109-670
10,200―10―

(Million of yen)

Consolidated cumulative period of
the current third quarter(from April 1, 2008 to December 31,
2008)
Cash flows from investing activities
Payment for addition to time deposits
Proceeds from refunds of time deposits
Payment for acquisition of property, plant andequipment
Proceeds from sale of property, plant andequipment
Payment for acquisition of intangible fixed assets
Proceeds from sale of intangible fixed assets
Payment for acquisition of investment securities
Proceeds from sale of investment securities
Payment for acquisition of stocks in affiliates
Payment for extension of loans
Proceeds from collection of loans
Other
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Payment for repayment of long-term debt
Payment for acquisition of own stock
Payment for satisfaction of finance lease liabilities
Payment of cash dividends
Payment of cash dividends to minority shareholders
Net cash used in financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Increase in cash and cash equivalents resulting frommergerAmount of increase (decrease) in cash and cash
equivalents due to change in the scope of consolidation
Cash and cash equivalents at the end of first quarter

-193
805
-921
205
-157
4
-783
458
-1,967-3,713425-162-5,999-1,392-409-5-417-1,041-6-3,273927
15,85130
610
17,420―11―

Beginning in the first consolidated quarter under review, the Accounting Standards for Quarterly Financial
Reporting, ASBJ Statement No. 12, and the Guidelines for Application of Accounting Standards for Quarterly
Financial Reporting, ASBJ Guidelines for Application of Accounting Standards No. 14, are being applied. In
addition, the Company has complied with the Regulations for Quarterly Financial Statements in compilingconsolidated quarterly financial statements.
(4) Notes concerning premise of a going businessThis is not applicable.
(5) Segmental Information[Segmental Information according to Types of Business]
Consolidated cumulative period of the current third quarter (from April 1, 2008 to December 31, 2008)
Eliminations
Pharmaceutical Dispensing
CRO and
Consolidated
Total
or corporate
Wholesaling
Pharmacy
SMO(million yen)(million yen)(million yen)(million yen) (million yen) (million yen)
Net Sales(1) Net sales to external customers

617,546

16,419328

634,294―

634,294(2) Inter-segment internal net sales ortransfers

7,705

―

―

7,705

(7,705)―625,252

16,419328

642,000(7,705)634,294

5,778

928

-285

6,421

(648)

5,772

Total
Operating income(Notes) 1. Business operations are segmented according to the types of products sold and services provided.
2. Major operations of each business segment:(1) Pharmaceutical Wholesaling... Sales of pharmaceuticals, narcotics, reagents, etc., and sales of medical
devices,(2) Dispensing Pharmacy.............. National Health Insurance pharmacies, home medical care services,and sales of pharmaceuticals(3) CRO and SMO........................ SMO and CRO services
3. Changes in accounting policy(1) As stated in 4. Others (3) Changes in accounting principles, procedures, presentation methods, etc.
concerning the preparation of quarterly consolidated financial statements, the Accounting Standards for
Measurement of Inventories, ASBJ Statement No. 9 dated July 5, 2006, is applied. As a result, operating
income of the pharmaceutical wholesaling business decreased 66 million yen during the cumulative
period for consolidated third quarter under review.
(2) As stated in 4. Others (3) Changes in accounting principles, procedures, presentation methods, etc.
concerning the preparation of quarterly consolidated financial statements, the Accounting Standards for
Lease Transactions, ASBJ Statement No. 13 dated June 17, 1993, with the final revision on March 30,
2007, as well as the Guidelines for the Application of the Accounting Standards for Lease Transactions,
ASBJ Guidelines No. 16 dated January 18, 1994, with final revision on March 30, 2007, are applied
promptly. However, the effects of this change on profits and losses are minimal.

―12―

[Segmental Information according to Geographical Locations]
Consolidated cumulative period of the current third quarter (from April 1, 2008 to December 31, 2008)
This disclosure is not applicable, because all the Group’s consolidated company are located in Japan.
[Overseas Sales](from April 1, 2008 to December 31, 2008)
This disclosure is not applicable, because the Group generates no sales outside Japan.

Consolidated cumulative period of the current third quarter(6) Notes on significant changes in the amount of equity
Consolidated cumulative period of the current third quarter(from April 1, 2008 to December 31, 2008)
Shareholders' equity

Balance as of end of fiscal 2008
（million yen）
Change in items during the term
Increase due to exercised warrant
bonds
Surplus distributed to shareholders
Net income
Own company stock reacquired
Change due to stock swap
Acquisition with newconsolidation
Decrease due to a merger ofconsolidated companies
Transfer from land revaluation
excessTotal change during the term
（million yen）
Balance at the end of the third
quarter（million yen）

Total shareholders'Common stock

Capital surplus

Retained earnings

Treasury stock

10,59924,181

48,829-3,43680,175

50

49

-5
3,404

100
-1,041
-930
-5
7,240

-2

-2

-1,041-930
3,835

equity

-118

-118

-65

-65

50

3,885

-2,154

3,397

5,177

10,64928,,067

46,674-38

85,353―13―

[Reference]
Financial Statements and Other Information Concerning the Previous Consolidated Third Quarter(Summary) Consolidated Earnings Statement for the Previous Quarter(Million of yen)I

Net sales

Consolidated cumulative period of theprevious third quarter(from April 1, 2007 to December 31, 2007)
614,991

II

Cost of sales
Gross income
Reversal of reserve for sales returns
Gross profit after reserve for sales returns
III Selling, general and administrative expenses
Operating income
IV Non-operating income
1. Interest income
2. Dividend income
3. Information service income
4. Amortization expenses for negative goodwill
5. Equity in earnings of investees
6. Miscellaneous income
Total non-operating income
V Non-operating expenses
1. Interest expenses
2. Loss before deduction of temporary consumption
tax payment
3. Miscellaneous losses
Total non-operating expenses
Ordinary income
VI Extraordinary gains
1. Gains on sales of fixed assets
2. Gains on sales of investment securities
3. Reversal of allowance for doubtful receivables
4. Others
Total extraordinary gains
VII Extraordinary losses
1. Loss on disposal of fixed assets
2. Loss on revaluation of investment securities
3. Loss on sale of golf club memberships
4. Directors' retirement benefits
5. Impairment loss
6. Others
Total extraordinary losses
Income before income taxes
Corporate and other taxes
Minority interests
Current net income

565,101
49,8902
49,887
41,462
8,424
101
322
1,358
932
50
576
3,341
76
396
105
578
11,187
255
15
259
39
569
204
3
2
35
225
4
476
11,281
4,112
457
6,712

―14―

Cash Flow Statement for the Previous Consolidated Third Quarter(Million of yen)

Consolidated cumulative period of theprevious third quarter(from April 1, 2007 to December 31, 2007)
I

Cash flows from operating activities
Income before income taxes
Depreciation
減損損失
Amortization expenses for goodwill
Amortization expenses for negative goodwill
Equity in earnings of investees
Increase (decrease) in accrued employees’ retirement
benefits
Increase in reserve for sales returns
Decrease in accrued bonuses
Increase (decrease) in accrued directors’ bonuses
Increase (decrease) in allowance for doubtfulreceivables
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in purchase rebates receivable
Increase in other assets
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
Decrease in accrued consumption taxes
Other
Subtotal
Payment of income taxes
Other
Net cash provided by operating activities
II Cash flows from investing activities
Payment for addition to time deposits
Proceeds from refunds of time deposits
Payment for acquisition of property, plant andequipment
Payments for disposal of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payment for acquisition of goodwill
Payment for acquisition of software
Payment for acquisition of investment securities
Proceeds from sale of investment securities
Payment for the acquisition of a subsidiary
accompanying a change in the scope of consolidation
Payment for acquisition of stocks in subsidiaries
Proceeds from sale of investment in subsidiaries
Payments for purchases of investment in affiliatecompany
Payment for acquisition of other investments
Proceeds from sale of other investments
Disbursements for loans
Proceeds from collections of loans
Other
Net cash used in investing activities
III Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term debt
Payment for repayment of long-term debt
Payment for acquisition of own stock
Payment for satisfaction of finance lease liabilities
Payment of cash dividends
Payment of cash dividends to minority shareholders
Net cash used by financing activities
IV Increase (decrease) in cash and cash equivalents
V Cash and cash equivalents at beginning of year
VI Increase in cash and cash equivalents resulting frommergerVII Increase in cash and cash equivalents resulting fromstock swap
VIII Cash and cash equivalents at the end of third quarter

11,281
1,534
225
652
-932
-50
-970
2
-1.213-36-61
31,625-6,270-2,853
1,040
26,229205-789-1,734-7,447-5,2301,550-11,127-172
191-1,692
-98
772
-120
-74
-1,77227-1,524-48
5-3,428
-102
155
-150
233
-53
-7,851842
100-553-1,898
-484
-789
-12
-2,797-21,776
43,429――21,653―15―

Segmental Information
Segmental Information according to Types of Business
Consolidated cumulative period of the previous third quarter (from April 1, 2007 to December 31, 2007)
Information
Eliminations
Pharmaceutical Dispensing
CRO and
Consolidated
Total
Processing
or corporate
Wholesaling
Pharmacy
SMO(million yen)(millionyen)(million yen)(million yen) (million yen) (million yen) (million yen)
Net Sales(1) Net sales to externalcustomers(2) Inter-segment internal
net sales or transfers

603,356

11,121

28

485

614,991―

614,991

4,098

―

625

―

4,724

(4,724)―

Total

607,455

11,121

654

485

619,716(4,724)

614,991

Operating expense

599,046

10,471

606

620

610,745(4,178)606,567

Operating income

8,408

649

47

-135

8,970

(546)

8,424

Segmental Information according to Geographical Locations
Consolidated cumulative period of the previous third quarter (from April 1, 2007 to December 31, 2007)
This disclosure is not applicable, because all the Group’s consolidated subsidiaries are located in Japan.
Overseas Sales
Consolidated cumulative period of the previous third quarter (from April 1, 2007 to December 31, 2007)

This disclosure is not applicable, because the Group generates no sales outside Japan.

―16―