This summary is a translation of ‘KESSAN TANSHIN’ which is an unaudited report.

Summary of Consolidated Financial Results for FY2014(Year ended March 31, 2015) 〔Japanese GAAP〕
April 21, 2015
Company name:SOGO MEDICAL CO., LTD.

Stock exchange listings:

Tokyo 1st Section

Securities code:

4775

Representative:(Title) President & Representative Director(Name) Itsuo Tashiro

Inquiries:(Title) Director & Senior Executive Managing Officer(Name) Makoto Kuroda

URL: http://www.sogo-medical.co.jp/english/

Tel: +81-92-713-7611
E-mail: ir@sogo-medical.co.jp
Date of general shareholders’ meeting (as planned) : June 19, 2015
Dividend payable date (as planned) : June 22, 2015
Annual securities report filling date (as planned) : June 19, 2015
Supplemental material of annual results is available.
There will be a convening briefing of annual results for institutional investors and analysts.
(Amounts are rounded down.)

１．Consolidated Financial Results (from April 1, 2014 to March 31, 2015)（１）Consolidated operating results(% indicates year-on-year change.)
Net sales
FY2014FY2013Operating income

Ordinary income

Net income

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

107,945
103,318

4.5
19.2

5,017
5,014

0.1
16.0

5,227
5,068

3.1
16.7

2,774
2,856

(2.8)
12.8

Notes: Comprehensive income: ¥3,009million for FY2014 (4.6%) : ¥2,876 million for FY2013 (8.8%)

Net income
per share

Net income toshareholders’equity ratio

Diluted net income
per share
Yen

Yen

Ordinary income tototal assets ratio

Operating income
to net sales ratio

%

%

%

－
11.0
7.6
4.6
－
12.6
8.2
4.9
References: Investment profit (loss) on equity method: ¥－for FY2014 :¥－for FY2013
Note: Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Consolidated net income per share has been calculated
assuming that the stock split was instituted at the start of the previous fiscal year.

FY2014FY2013

192.20197.82（２）Consolidated financial positions
Total assets
FY2014FY2013

Net assets

Capital adequacy ratio

Net assets per share

Millions of Yen

Millions of Yen%

Yen

69,811
66,982

26,521
23,93437.7
35.7

1,824.14
1,655.73

References: Owner’s equity: ¥ 26,336 million for FY2014 :¥ 23,905 million for FY2013
Note: Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Consolidated net assets per share has been calculated
assuming that the stock split was instituted at the start of the previous fiscal year.

（３）Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and equivalents,
end of period

Millions of Yen

Millions of Yen

Millions of Yen

Millions of Yen

6,051
7,461

(5,296)(5,335)(1,637)(1,370)

4,968
5,851

FY2014FY2013
２．Dividends

Dividend per shareFirst quarter

Second quarter
Yen

FY2013
FY2014FY2015(forecast)Third quarter

Yen

－
－
－

40.00
40.00
22.50

FY2013
FY2014FY2015(forecast)

－
－
－

Yen

Yen

40.00
40.00
22.50

80.00
80.00
45.00

Ratio of total amount of dividends
to net assets(Consolidated)

Payout ratio(Consolidated)

Total dividend paid

AnnualYear end

Yen

Millions of Yen

%

%

577
577

20.2
20.8
20.0

2.5
2.3

Note: Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. The interim dividend and the yearend dividend for the fiscal year ending March 31, 2016 (estimate base) are therefore stated adjusted for the effects of thestock split.
３．Consolidated forecasts for FY2015 (from April 1, 2015 to March 31, 2016)
Net sales
Millions of Yen%

Operating income

Ordinary income

Millions of Yen

Millions of Yen%%(% indicates year-on-year change.)
Profit attributable
Net income
to owners of parent
per share
Millions of Yen

%

Yen

846
3,252

(1.9)
17.2

58.62
225.27

Interim55,730
7.7
1,630
5.4
1,617 (2.4)
Full-year
120,000 11.2
5,556 10.7
5,500
5.2
Note: Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split.
４．Others（１）Material changes in subsidiaries during this period(Changes in scope of consolidations resulting from change is subsidiaries): None

（２）Changes in accounting policies and accounting estimates, retrospective restatement① Changes in accounting policies based on revisions of accounting standard: None
② Changes in accounting policies other than ones based on revisions of accounting standard ①: None
③ Changes in accounting estimates: None
④ Retrospective restatement: None
（３）Number of issued and outstanding shares (common stock）① Number of issued and outstanding sharesat the end of fiscal year (including treasury stock):
FY2014: 15,340,156 shares
FY2013: 15,340,156 shares② Number of treasury stock at the end of fiscal year:
FY2014: 902,282 shares
FY2013: 901,842 shares③ Average number of shares:
FY2014: 14,438,064 shares
FY2013: 14,438,315 shares
Note: Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. The number of shares in issue (including treasury
stock) at the end of the fiscal year under review, the number of treasury stock at the end of the fiscal year under review, and the average
number of shares in issue during the fiscal year under review have been calculated assuming that the stock split was instituted at the start ofthe previous fiscal year.

(Reference）Summary of Non-consolidated Financial Results
１．Non-consolidated Financial Results (from April 1, 2014 to March 31, 2015)（１）Non-consolidated operating Results
Net sales
FY2014FY2013Operating income(% indicates year-on-year change.)

Ordinary income

Net income

Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

88,35086,576

2.0
19.2

4,105
3,807

7.8
17.1

4,608
4,307

7.0
18.8

2,908
2,820

3.1
19.0

Net income per share

Diluted net income
per shareYen

FY2014FY2013201.42
195.35

Yen－－

Note: Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Consolidated net income per share has
been calculated assuming that the stock split was instituted at the start of the previous fiscal year.
（２）Non-consolidated financial positions
Total assets
FY2014FY2013

Net assets

Capital adequacy ratio

Net assets per share

Millions of Yen

Millions of Yen%

yen

63,48360,83024,724
22,16738.9
36.4

1,712.48
1,535.32

References: Owner’s equity: ¥ 24,724 million for FY2014 :¥ 22,167 million for FY2013
Note: Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Consolidated net assets per share has been calculated
assuming that the stock split was instituted at the start of the previous fiscal year.

※Expression of implementation status of audit proceduresThis summary is exempt from financial audit, to conform with “The Financial Instruments and Exchange Law” of Japan.
The financial audit has not been completed.
※ Notes for using forecasted information and others
These forecasts are based on currently available information. Actual financial results could differ from the forecast due tovarious factors. Please refer to “1. Operating Results (1) Analysis of Operating Results” on page.2 for assumptions andcautions on the use of these financial forecasts.
Note that dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split.

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

Contents
1. Operating Results............................................................................................................ 2(1) Analysis of Operating Results............................................................................................ 2(2) Analysis of Financial Positions .......................................................................................... 5
2. Management Policies ....................................................................................................... 9
3. Basic Approach to Selection of Accounting Standards ....................................................... 9
4. Consolidated Financial Statements ..................................................................................10(1) Consolidated Balance Sheet ............................................................................................ 10(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income12(3) Consolidated Statements of Change in Net Assets ............................................................. 14(4) Consolidated Statements of Cash Flows ........................................................................... 16(5) Notes to Consolidated Financial Statements ..................................................................... 18(Note on the Going-Concern Assumption) ...................................................................... 18(Basic Information of Consolidated Financial Statements) ............................................... 18(Consolidated Balance Sheet) ........................................................................................ 21(Consolidated Statements of Income) ............................................................................. 22(Consolidated Statements of Cash Flows) ...................................................................... 23(Segment Information).................................................................................................. 24(Per Share Information) ................................................................................................ 27(Significant Subsequent Events) .................................................................................... 27

1

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

1. Operating Results(1) Analysis of Operating Results①Operating Results for FY2014(in millions, except percentages)
FY2013

Sales¥103,318

Higashinihon

MarginFY2014%¥107,945

MarginChange%Change¥4,626

4.5%

36,70039,6142,914

7.9

Medical practice support

10,177

8,617(1,559)(15.3)

Pharmacies

26,52230,997

4,474

16.9

27,39028,205814

3.0

Medical practice support

9,863

8,420

(1,443)(14.6)

Pharmacies

17,526

19,784

2,258

12.9

37,23837,793555

1.5

Medical practice support

9,150

8,040

(1,109)(12.1)

Pharmacies

28,08729,752

1,664

5.9

1,989

2,331

341

17.2

Nishinihon

KyushuOthersOperating Income

5,014

4.9

5,017

4.6

3

0.1

Higashinihon

1,289

3.5

842

2.1

(447)

(34.7)

Nishinihon

1,324

4.8

1,510

5.4

186

14.1

Kyushu

2,611

7.0

2,643

7.0

32

1.2

Others

346

17.4

620

26.6

273

78.8

Reconciliation

(558)

-

(599)

-

(41)

-

Ordinary Income

5,068

4.9

5,227

4.8

158

3.1

Net Income

2,856

2.8

2,774

2.6

(81)

(2.8)

Starting this fiscal year in April, Sogo Medical initiated its new three-year medium-term
management plan entitled “Further Challenge—Toward a better society in which people can livewith a sense of security” and defined medium-range goals and specific priority initiatives. Alongwith enhancing and promoting ongoing efforts, Sogo Medical has been developing new services
eagerly awaited by people while taking up the challenges and resolving the issues facing society. As
to the operating results for the fiscal year under review (the period from April 1, 2014, to March 31,2015), net sales increased to ¥107,945 million (+4.5% compared with the previous fiscal year)
reflecting the effects of new pharmacy openings. Earnings marked operating income of ¥5,017
million (+0.1%) with ordinary income of ¥5,227 million (+3.1%), and net income of ¥2,774 million(–2.8%).
2

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

Medical practice support in the fiscal year under review totaled 308 instances (including succession
start-ups and health care malls), connecting to transactions such as lease agreements and newpharmacy openings, etc.

Dispensing pharmacy openings in the fiscal year under review totaled 48 (22 in East Japan, 16 inWest Japan, and 10 in Kyushu) raising the number of dispensing pharmacies at the end of the fiscal
year under review to 538. Out of the 48 dispensing pharmacy openings, 20 are new openings atrecipients of start-up support from Sogo Medical.

Segment financial results were as follows:

A Higashinihon (East Japan)

While sales declined at the lease and installments division and the rental division, net sales increasedto ¥39,614 million (+7.9% compared with the previous fiscal year) reflecting contributions from thedispensing-pharmacy subsidiary acquired last fiscal year and the effects of new pharmacy openings,
among other factors. However, operating income decreased to ¥842 million (–34.7%) due to higher
selling, general, and administrative expenses such as head-office levies.

B Nishinihon (West Japan)

While sales declined at the lease and installments division, net sales increased to ¥28,205 million(+3.0%

compared

with

the

previous

fiscalyear)

reflecting

contributions

from

the

dispensing-pharmacy subsidiary acquired last fiscal year and the effects of new pharmacy openings,
among other factors. Operating income rose to ¥1,510 million (+14.1%) due to higher earnings fromincreased sales at the pharmacy division.

C

KyushuNet sales rose to ¥37,793 million (+1.5% compared with the previous fiscal year) on contributions
from new pharmacy openings at the pharmacy division and higher sales at the rental division.
Operating income posted ¥2,643 million (+1.2%).

3

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014②Forecasts for FY2015

FY2014FY2015

ChangeChange(Forecasts)(amount)(%)¥Millions¥Millions¥Millions%

107,945

120,000

12,055

11.2

Operating income

5,017

5,556

539

10.7

Ordinary income

5,227

5,500

273

5.2

Net income

2,774

3,252

478

17.2

Net income per share (¥)

192.20225.27--

Net sales

The fiscal year to March 2016 marks the second year of the current medium-term management planof Sogo Medical. Surrounding the theme of "Further Challenges," Sogo Medical will continue towork towards the Number One position in DtoD (Doctor to Doctor) system and high-value
pharmacies through the implementation of its priority initiatives of undertaking new businesses,
improving existing businesses, and expanding to corporate value.

Based on these efforts, Sogo Medical expects company-level net sales of ¥120,000 million (+11.2%
compared with the previous fiscal year), with earnings marking operating income of ¥5,556 million(+10.7%), ordinary income of ¥5,500 million (+5.2%), and net income of ¥3,252 (+17.2%).

Notably, the above estimates have been prepared on the basis of information available as of therelease date of this disclosure document. Actual results may differ from projections due to various
future factors.

Dated April 1, 2015, Sogo Medical has instituted a 2-for-1 common stock split. Consolidated net
income per share has been calculated assuming that the stock split was instituted at the start of theprevious fiscal year.

4

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(2) Analysis of Financial Positions①Analysis of Assets, Liabilities, and Net Assets(in millions except percentages and ratios)
FY2013
Total Assets

FY2014

Change¥66,982¥69,811¥2,828including Cash and Deposits

5,873

4,988

(884)

Liabilities

43,04843,290241

including Interest-Bearing Debt *1

15,552

16,572

1,020

Net Assets

23,934

26,521

2,587

Shareholders' Equity Ratio (%)

35.7

37.7

2.0

Net Debt-to-Equity Ratio (times) *2

0.40

0.44

0.03

*1.Interest-Bearing Debts include lease obligations and accounts payable-installment purchases.
*2. Net Debt-to-Equity Ratio=( Interest-Bearing Debts－Cash and Deposits) / Shareholders' Equity
Total assets at the end of the fiscal year under review were ¥69,811 million, which was ¥2,828
million more than at the end of the previous fiscal year. Current assets declined ¥463 million fromthe end of the previous fiscal year to ¥36,584 million. Main factors were a ¥884 million decrease in
cash and deposits, a ¥840 million decrease in notes and accounts receivable-trade, and a ¥1,068
million increase in inventory assets. Noncurrent assets rose ¥3,291 million from the end of theprevious fiscal year to ¥33,226 million. Main factors were increases in buildings and structures(¥1,345 million), land (¥914 million), and investment securities (¥557 million).

Total liabilities at the end of the fiscal year under review were ¥43,290 million, which was ¥241
million higher than at the end of the previous fiscal year. Current liabilities declined ¥249 million to¥30,109 million. Main factors were a ¥1,531 million decrease in notes and accounts payable-trade
and a ¥747 increase in long-term debt repayable within one year. Noncurrent liabilities increased¥490 million compared with the end of the previous fiscal year to ¥13,180 million. Main factors
were a ¥1,644 million rise in long-term loans payable and a ¥1,395 million decrease in long-term
accounts payable-installment purchases. Interest-bearing debt (including lease obligations andaccounts payable-installment purchases) increased ¥1,020 million to ¥16,572 million. The net
debt-to-equity ratio (interest-bearing debt less cash and deposits divided by shareholders’ equity)rose 0.03 points to 0.44.

5

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

Net assets at the end of the fiscal year under review totaled ¥26,521 million, which was ¥2,587
million higher than at the end of the previous fiscal year. Main factors were ¥2,774 million in net
income recognized for the period and ¥577 million in dividend payments. As a result, the equity ratiorose to 37.7% reflecting an increase of 2.0 percentage points from 35.7% at the end of the previous
fiscal year.

6

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014②Cash Flows
Cash and cash equivalents ("funds") at the end of the fiscal year under review totaled ¥4,968 million,
which was ¥882 million (15.1%) less than at the end of the previous fiscal year. This was due to thefollowing main factors.

(Cash Flows from Operating Activities)
Net cash provided by operating activities in the fiscal year under review was ¥6,051 million. Main
factors were ¥5,175 in income before income taxes and minority interest, ¥3,746 million in
depreciation charges, a ¥1,050 million decrease in accounts receivable-trade, a ¥1,735 decline inaccounts payable-trade, and ¥2,108 million in expenditure for income tax payments.

(Cash Flows from Investing Activities)
Net cash used in investing activities in the fiscal year under review was ¥5,296 million. Main factors
were ¥3,767 million in expenditure for the acquisition of assets for use by Sogo Medical, ¥579
million in expenditure for the acquisition of equity in subsidiaries, ¥270 million in expenditure forthe acquisition of investment securities, and ¥263 million in expenditure for businesses assumed by
Sogo Medical.

(Cash Flows from Financing Activities)
Net cash used in financing activities was ¥1,637 million. Main factors were ¥4,749 million inincome from long-term loans, ¥3,211 million in expenditure for the redemption of long-term loans,¥2,094 million in expenditure for the settlement of installment obligations, ¥512 million in
expenditure for the settlement of lease obligations, and ¥577 million in expenditure for dividend
payments.

7

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(Reference) Cash flow-Related Indicators
FY2010FY2011FY2012FY2013

FY2014

40.5

36.7

37.8

35.7

37.7

36.8

40.5

41.9

44.6

69.8

Interest-bearing debt to cash flows (%)

2.0

3.3

2.0

2.1

2.8

Interest coverage ratio (times)

56.0

34.2

49.1

57.1

45.8

Capital adequacy ratio (%)
Capital adequacy ratio(based on fair value) (%)

Capital adequacy ratio: Shareholders’ equity / Total assets
Capital adequacy ratio (based on fair value): Market capitalization / Total assets
Interest-bearing debt to cash flows: Interest-bearing debt / Cash flows
Interest coverage ratio: Cash flows / Interest paid
(Notes) 1. Each ratio is calculated using consolidated amounts.
2. Market capitalization is calculated using outstanding shares less treasury stock.
3. Cash flows and interest paid are clarified as net cash provided by (used in) operating
activities.
4. Interest-bearing debt is all debt for which interest is paid interest.

8

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

2. Management Policies(1) Medium-Term Management Plan “Further Challenge”(2) Long-Term Vision and Medium-Term Management Plan
(3) Priority Initiatives

Disclosure has been omitted due to the absence of material change in the information disclosed in
the Summary of Financial Statements for the Fiscal Year to March 2014 (released on April 17,2014).

The above-mentioned Summary of Financial Statements is available for viewing at the following
URL.
(Corporate website of Sogo Medical)
http://www.sogo-medical.co.jp/english/

3. Basic Approach to Selection of Accounting Standards
Since the business activities of Sogo Medical Group are currently confined to Japan, consolidated
financial statements are prepared according to Japanese accounting standards. However, Sogo
Medical will consider the implementation of International Financial Reporting Standards (IFRS)
taking into account a rising foreign shareholder percentage in the future as well as circumstances inJapan and internationally.

9

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

4. Consolidated Financial Statements(1) Consolidated Balance Sheet(in millions)
FY2013

FY2014( As of March.31, 2014)( As of March.31, 2015)

AssetsCurrent assets
Cash and deposits¥ 5,873¥ 4,988

Notes and accounts receivable-trade

18,326

17,485

Accounts receivable-installment sales

1,687

1,806

Lease receivables and investment assets
Inventories

2,014
6,475

*1

Deferred tax assets

1,701
*1

7,543

762

628

Other

1,933

2,450

Allowance for doubtful accounts

(26)

(19)

37,04736,584

Property for lease, net

6,871

5,929

Buildings and structures, net

7,418

8,763

Land

3,078

3,992

Other, net

2,065

3,116

Total current assets
Noncurrent assets
Property, plant and equipment

Total property, plant and equipment

19,433*2*2

21,801Intangible assets
Goodwill

5,294

5,252

953

1,031

6,248

6,283

Investment securities

1,008

1,566

Deferred tax assets

568

468

Other
Total intangible assets
Investments and other assets

Other

2,681

3,107

Allowance for doubtful accounts

(5)

(0)

Total investments and other assets

4,252

5,141

Total noncurrent assets

29,93433,226

Total assets

66,982

69,811

10

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(in millions)
FY2013

FY2014( As of March.31, 2014)( As of March.31, 2015)¥ 20,372¥ 18,841

350

360

2,155

2,903

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations

503

363

Accrued expenses

1,725

2,072

Income taxes payable

1,333

1,452

Deferred profit on installment sales

175

190

Other

3,743

3,925

Total current liabilities

30,35830,109

5,191

6,835

944

1,028

4,450

3,055

Other

2,103

2,260

Total noncurrent liabilities

12,68913,18043,04843,290Capital stock

3,513

3,513

Capital surplus

4,136

4,136

Noncurrent liabilities
Long-term loans payable
Lease obligations
Long-term
accounts payable-installment purchaseTotal liabilities
Net assets
Shareholders' equity

Retained earnings

17,05819,255

Treasury stock(1,043)(1,044)

Total shareholders' equity

23,66525,861240

475

Total accumulated other comprehensive income

240

475

Minority interests

28

184

Total net assets

23,934

26,521

Total liabilities and net assets

66,982

69,811

Accumulated other comprehensive income
Valuation difference on
available-for-sale securities

11

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)(in millions)
FY2013

FY2014( to March.31, 2014)( to March.31, 2015)

Net sales¥ 103,318¥ 107,945

Cost of sales

88,88993,139Gross profit

14,42814,805

Selling, general and administrative expenses

9,414

*1

Operating income

*1
14

9,787

5,014

5,017

Dividends income

16

20

Rent income

35

38

Dividends income of life insurance

-

106

Other

130

202

Total non-operating income

183

368

Interest expenses

57

75

Loss on valuation of investment securities

-

17

Other

71

65

Total non-operating expenses

128

159

5,068

5,227

Gain on sales of investment securities

41-

Contributed income

7-

Total extraordinary income

48-

Non-operating income

Non-operating expenses

Ordinary income
Extraordinary income

Extraordinary loss
Impairment loss

34

*2

*2

51

Loss on sales of investment securities

26-

Office transfer expenses

9-

Total extraordinary loss

70

51

Income before income taxes

5,046

5,175

Income taxes-current

2,082

2,236

Income taxes-deferred

105

163

Total income taxes

2,187

2,400

2,858

2,774

2

0

2,856

2,774

Income before minority interests
Minority interests in income
Net income

12

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(Consolidated Statements of Comprehensive Income)(in millions)
FY2013

FY2014( to March.31, 2014)( to March.31, 2015)

Income before minority interests¥ 2,858¥ 2,774

18

234

18

234

Comprehensive income

2,876

3,009

Comprehensive income attributable toComprehensive income attributable toowners of the parent

2,874

3,009

Comprehensive income attributable tominority interests

20

Other comprehensive income
Valuation difference on
available-for-sale securities
Total other comprehensive income

13

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(3) Consolidated Statements of Change in Net Assets
FY2013（from April 1, 2013 to March 31,2014）(in millions)Shareholders' equity

Capital stock

Capital surplus

Retained earnings

3,513

4,136

14,779Treasury stock

Total shareholders' equity

Balance at the(1,043)

21,386

beginning of current period
Changes of
items during the period
Dividends from surplus

(577)

(577)

Net income

2,856

2,856

Purchase of treasury stock

(0)

(0)

Net changes of items
other than shareholders' equity
Total changes of items

-

-

2,278

(0)

2,278

3,513

4,136

17,058(1,043)

23,665during the period
Balance at theend of current period

Accumulated other comprehensive

Subscription rights toincomesharesMinority interests

Net assets

Valuation difference on
available-for-sale securities
Balance at the

222

1

26

21,636

beginning of current period
Changes of items during theperiodDividends from surplus(577)

Net income

2,856
(0)

Purchase of treasury stock
Net changes of items

18

(1)

2

18

18

(1)

2

2,297

240

-

28

23,934other than shareholders' equity
Total changes of items
during the period
Balance at theend of current period

14

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

FY2014（from April 1, 2014 to March 31,2015）(in millions)Shareholders' equity

Capital stock

Capital surplus

Retained earnings

3,513

4,136

17,058Treasury stock

Total shareholders' equity

Balance at the(1,043)

23,665

beginning of current period
Changes of
items during the period
Dividends from surplus

(577)

(577)

Net income

2,774

2,774

Purchase of treasury stock

(1)

(1)

Net changes of items
other than shareholders' equity
Total changes of items

-

-

2,197

(1)

2,196

3,513

4,136

19,255(1,044)25,861during the period
Balance at theend of current period

Accumulated other comprehensive

Subscription rights toincomesharesMinority interests

Net assets

Valuation difference on
available-for-sale securities
Balance at the

240

-

28

23,934

beginning of current period
Changes of items during theperiodDividends from surplus(577)

Net income

2,774
(1)

Purchase of treasury stock
Net changes of items

234

-

156

390

234

-

156

2,587

475

-

184

26,521other than shareholders' equity
Total changes of items
during the period
Balance at theend of current period

15

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(4) Consolidated Statements of Cash Flows(in millions)
FY2013

FY2014( to March.31, 2014)( to March.31, 2015)

Net cash provided by (used in) operating activities
Income before income taxes¥5,046¥5,175

Depreciation and amortization

3,522

3,746

Impairment loss

34

51

Interest and dividends income

(18)

(22)

Capital cost and interest expenses

126

131

Decrease (increase) in notes andaccounts receivable-trade(3,468)1,050

Decrease (increase) in
accounts receivable-installment

(264)

(104)

Net decrease (increase) inlease receivables and investment assets

106

313

(1,222)

(953)

4,932

(1,735)

Increase/decrease/ in other assets/liabilities

181

(223)

Other

439

839

Subtotal

9,416

8,269

18

22

(130)

(131)

Income taxes paid

(1,842)(2,108)Net cash provided by (used in) operating activities

7,461

6,051

(3,308)(3,767)

Proceeds from sales of own-used assets

88-

Purchase of property for lease

(69)

(96)

Purchase of investment securities

(97)

(270)

Proceeds from sales of investment securities

444

-

-

(263)

(2,277)

(579)

(115)

(318)

(5,335)(5,296)

Decrease (increase) in inventories
Increase (decrease) in notes andaccounts payable-trade

Interest and dividends income received
Interest expenses paid

Net cash provided by (used in) investing activities
Purchase of own-used assets

Payments for transfer of business
Purchase of investments in subsidiaries
resulting in change in scope of consolidation
Other
Net cash provided by (used in) investing activities

16

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(in millions)
FY2013

FY2014( to March.31, 2014)( to March.31, 2015)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans
Proceeds from long-term loans payablepayableRepayment of long-term loans payable
Repayments of lease obligations

¥6

¥9

3,650

4,749

(1,910)(3,211)

(573)

(512)

(1,963)(2,094)

(577)

(577)

Purchase of treasury stock

(0)

(1)

Other

(1)

-

Net cash provided by (used in) financing activities(1,370)(1,637)

Net increase (decrease) in cash and cash equivalents

755

(882)

Cash and cash equivalents at beginning of period

5,095

5,851

Repayments of installment payables
Cash dividends paid

Cash and cash equivalents at end of period

5,851

*1

17

*1

4,968

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(5) Notes to Consolidated Financial Statements(Note on the Going-Concern Assumption)
None.

(Basic Information of Consolidated Financial Statements)
1. Scope of Consolidation

Number of Consolidated Subsidiaries: 18 Companies
・Somtech Co., Ltd.
・Sogo Medipro Co.,Ltd.
・Sogo Real Estate Co., Ltd.
・SME Co., Ltd.
・Sogo Medical Pharmacy Chubu Co., Ltd.
・Aoba Pharmacy Co., Ltd.
・Maeda & Co., Ltd.
・Yataya Pharmacy Co., Ltd.
・Sogo Media Supply Co., Ltd.
・Sogo Care Network Co., Ltd.
・Sun Villa Co., Ltd.
・Taikodo yakkyoku honten Co., Ltd.
・Care Medical Co., Ltd.
・Beauty Drug Saito Co., Ltd.
・Nakano Pharmacy Co., Ltd.
・Matsumura Co., Ltd.
・Akatsuki Pharmacy Co., Ltd.
・Hokendohjinsha Inc.

Beginning with the fiscal year under review consolidated accounts include also Matsumura Co., Ltd.
and Akatsuki Pharmacy Co., Ltd. (both entities' entire share capital was acquired by Sogo Medical
on August 22, 2014) as well as Hokendohjinsha Inc. (61.6% of the share capital was acquired by
Sogo Medical on March 30, 2015).
Beginning with the fiscal year under review, consolidated accounts no longer include Sogo
Healthcare Service Co., Ltd. (absorbed into Sogo Medical dated April 1, 2014), Sumiredo Pharmacy
Co., Ltd. (absorbed into Sogo Medical dated September 1, 2014), and T·M Yakkyoku Co., Ltd.
(absorbed into Taikodo Yakkyoku Honten Co., Ltd. dated October 1, 2014).

18

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

2. Equity-Method
None

3. Fiscal Periods of Consolidated Subsidiaries

Consolidated subsidiaries with fiscal-year ends different from that of the Company:

Nakano Pharmacy Co., Ltd.

May 31

Taikodo yakkyoku honten Co., Ltd.

July 31

Akatsuki Pharmacy Co., Ltd.

August 31

Beauty Drug Saito Co., Ltd.

September 30

Matsumura Co., Ltd.

September 30

Yataya Pharmacy Co., Ltd.

October 31

Care Medical Co., Ltd.

December 31

When preparing consolidated financial statements, financial statements as of March 31, 2015, areused for these companies.

4. Significant Financial Accounting Principles(1) Valuation basis and method of major assets①Investment Securities
With market value:
By the mark-to-market method based on average market value over a period of one month prior
to the date of settlement of the consolidated accounts (valuation differences are reported as aseparate component of net assets and the sale price is determined by the moving-averagemethod).
Without market value:
At cost, using the moving-average method
Investments in a limited investment partnership or a similar partnership (that can be considered
as marketable securities in accordance with the Article 2 (2) of the Financial Instruments andExchange Act) are stated at their net equity value on the most recent financial statements that areavailable on the settlement report day as specified in the partnership agreement.

19

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014②Inventories
Inventories are mainly reported using the lower of cost or market price. The costs are calculatedusing the gross average method.

(2)Depreciation①Property for lease
Depreciation is calculated by use of the straight-line method over each rental term of the assets.
②Plant, Property and Equipment and Intangible assets (Excluding rental assets, leasd assets (lessee)and plant property and equipment related to pharmacies opened after April 1, 2012)
Depreciation for plant, property and equipment is calculated by use of the declining balancemethod. Depreciation for intangible assets is calculated by use of the straight-line method.
Useful lives of building and structures range from 10 to 47 years.
③Leased Assets (Lessee)
Leased assets are classified as property, plant and equipment and intangible assets. Depreciation is
calculated by use of the straight-line method over each asset’s lease term of the assets and with noestimated salvage value.
④Plant property and equipment related to pharmacies opened after April 1, 2012
Depreciation is calculated by use of the straight-line method.

(3)Allowance
Allowance for Doubtful Accounts
Allowances are recognized for doubtful accounts. General provisions are determined on the basisof past credit loss experience, and specific provisions, such as loss apprehensive credits, aredetermined by considering individual collectability.

(4)Revenue and Expense Recognition①Financing Leases (Lessor)
When the Company receives a lease payment, the Company recognizes the sale amount and costof sale.
②Installment Sales
When the Company delivers a product through an installment contract, the Company recognizes
the full contract amount as accounts receivable-installment sales. When a due date arrives, theCompany reports both the installment sale and the installment cost. Additionally, the Company
recognizes an unrealized income corresponding to accounts receivable-installment sales for which
the due date has not arrived at year end as deferred profit on installment sales.

20

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(5)Amortization of Goodwill Method and Period
Goodwill is amortized using the straight-line method over a period of no more than 10 years, withthe reasonable period being decided for individual items.

(6) Scope of Funds Used to Prepare Consolidated Cash Flow Statements
Funds used to prepare the consolidated cash flow statements (cash and cash equivalents) include
cash on hand, deposits withdrawable at immediate notice, and easily convertible short-term
investments redeemable within 3 months of acquisition with minimal risk of fluctuations in value.

(7) Others
Consumption and Local Consumption Tax
The Company applies the tax exclusion method for consumption and local consumption tax. The
consumption tax amount not subject to tax credit related to property, plant and equipment isclassified as an investment and other assets. The other assets are depreciated using thestraight-line method over five years. The other consumption tax amount not subject to tax credit isclassified as a period expense.

(Consolidated Balance Sheet)*1. Inventories(in millions)
FY2013
Medical supplies

FY2014¥ 6,214¥ 7,220

Merchandise

23

119

Costs on uncompleted construction contracts

34

37

Raw materials and supplies

202

167

*2. Accumulated Depreciation(in millions)
FY2013
Accumulated depreciation¥ 14,765

21

FY2014¥ 18,271

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

3. Contingent Liabilities(in millions)
FY2013Kaze-No-Suzuran-Kai, etc (8 people)

FY2014¥ 2,456

Employees (10people)

11

Total

2,467

Kaze-No-Suzuran-Kai, etc (7 people)¥ 2,245

Employees (5people)

8

Total

2,253

(Consolidated Statements of Income)*1. Main Selling General and Administrative Expenses(in millions)
FY2013
Salaries and allowances

FY2014¥ 3,193¥ 3,237*2. Impairment Losses
FY2013（from April 1, 2013 to March 31,2014）
We divide assets into groups based on a minimum unit which generates cash flows. Specifically,
the minimum unit for pharmacies is divided based on each pharmacy.
We reported impairment loss for following groups:
Business

Place

Use

Classification

Amount(in millions)

Higashinihon

1 Pharmacy (Kanto)

Pharmacies

Goodwill, etc

Nishinihon

1 Pharmacy (Chugoku),

Pharmacies

Buildings and structures, etc

11

1 Office (Kinki)

OfficeKyushu1 Pharmacy (Kyushu)

Pharmacies

Buildings and structures, etc

5

Whole

Head office

SystemSoftware

5
Total

¥ 11

34

For pharmacies that continue to operate at a deficit and are not expected to return to profitability,
pharmacies and offices scheduled to be relocated, and old operating systems disposed of following
the introduction of new systems, the Company reduces the book value of the applicable asset to acollectable amount, and then recognizes impairment loss as extraordinary loss. Impairment loss forthe year ended March 31, 2014, was ¥34 million made up as follows: buildings and structures, etc.
was ¥17 million, goodwill was ¥8 million.
The collectable amount is measured by a net sales price based on a land price or a fixed assets tax
assessment value with consideration made for the materiality of each asset. The collectable amountof assets for disposal following the introduction of a new system was zero.

22

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

FY2014（from April 1, 2014 to March 31,2015）
We divide assets into groups based on a minimum unit which generates cash flows. Specifically,
the minimum unit for pharmacies is divided based on each pharmacy.
We reported impairment loss for following groups:
Business

Place

Use

Classification

Amount(in millions)

Higashinihon

2 Pharmacy (Kanto)

Pharmacies

Buildings and structures, etc¥ 4Nishinihon

1 Property for lease (Kinki)

Property for lease

Buildings and structures, etc

20

Kyushu5 Pharmacy (Kyushu)

Pharmacies

Buildings and structures, etc

26

Total

51

For pharmacies that continue to operate at a deficit and are not expected to return to profitability,
pharmacies and offices scheduled to be relocated, and old operating systems disposed of following
the introduction of new systems, the Company reduces the book value of the applicable asset to acollectable amount, and then recognizes impairment loss as extraordinary loss. Impairment loss
for the year ended March 31, 2015, was ¥51 million made up as follows: buildings and structures,etc. was ¥51 million.
The collectable amount is measured by a net sales price based on a land price or a fixed assets tax
assessment value with consideration made for the materiality of each asset.

(Consolidated Statements of Cash Flows)*1. Items of Cash and Cash Equivalents(in millions)
FY2013
Cash and deposits

FY2014¥ 5,873¥ 4,988

Over three-month time deposit

(22)

(20)

Cash and Cash Equivalents

5,851

4,968

23

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

2. Significant Non-Cash Transactions
FY2013 (from April 1, 2013 to March 31, 2014)
Assets and liabilities as a result of this fiscal year’s financing lease transactions were ¥667 million,and ¥703 million respectively. Assets and liabilities as a result of this fiscal year’s installment
sales transactions were ¥918 million, and ¥964 million respectively.

FY2014 (from April 1, 2014 to March 31, 2015)
Assets and liabilities as a result of this fiscal year’s financing lease transactions were ¥433 million,and ¥463 million respectively. Assets and liabilities as a result of this fiscal year’s installment
sales transactions were ¥715 million, and ¥767 million respectively.

(Segment Information)
1. Outline of Segment
Reportable segment are components of the Company for which separate financial information isavailable. The board of directors regularly evaluates these segments to make decisions about how
to allocate resources and assess performance.
Our businesses consist of management consulting for medical institutions and medical doctors,
DtoD (support system for medical practice succession, medical cooperatives, and practitioner
recruitment), TV rental for patients in hospitals, leasing and installment payment sales of medical
equipment, design and construction of medical institutions, pharmacies, managing fee-based
residential homes for the elderly, and TV rental for hotels.
Our reportable segments are now ‘Higashinihon’, ‘Nishinihon’ and ‘Kyushu’ to allow for
development of regional strategies and rapid decision-making about business operations.

2. Accounting Method for Segment Sales, Profit (Loss), and Assets
The accounting method for reportable segments was almost the same as the ‘Basic Information ofConsolidated Financial Statements’.
Each segment profit (loss) is calculated based on operating income.
Intersegment sales and transfer pricing are calculated by market prices.

24

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

3. Segment Sales, Profit (Loss), and Assets
FY2013 (from April 1, 2013 to March 31, 2014)(in millions)
Reportable Segments
Higashinihon

Nishinihon

KyushuOthers

Total

Total

*1

Reconciliations*2

consolidated
amounts*3

Sales
Unaffiliated sales¥ 36,700¥ 27,390¥ 37,238¥ 101,329¥ 1,989¥103,318－¥ 103,318

Intersegment sales

19

346

3

369

2,457

2,826

¥ (2,826)

－

Total

36,71927,737

37,241

101,698

4,446

106,145(2,826)

103,318

Segment profit

1,289

1,324

2,611

5,225

346

5,572

(558)

5,014

Segment assets

22,936

15,651

16,524

55,112

3,285

58,398

8,584

66,982

1,052

923

921

2,897

289

3,187

335

3,522

415

140

22

578

0

579

－

579

2,930

2,318

944

6,192

224

6,417

737

7,155

OthersDepreciation
Amortization of goodwill
Increase in assets*1. Others include items such as wholesales of pharmaceuticals and TV rental for hotels, which are
not classified as reportable segments.
*2. Reconciliations were as follows:(1) Reconciliation for reportable segment loss (¥558million) included elimination of intersegment
sales (¥5million) and overall corporate expense (¥563million). The overall corporate expense wasclassified as selling general and administrative expenses and was not allocated to reportablesegments.
(2) Reconciliation for reportable segment assets (¥8,584 million) included elimination investment
against equity (¥-7,529 million) and overall corporate assets (¥17,040 million). The overall assets
were classified as parent company’s deposits and were not allocated to reportable segments.
(3) Assets included property, plant and equipment and intangible assets. Reconciliation of increase of
those assets (¥737 million) was classified as head office’s networking systems and allocation ofother reportable segments.
*3. Reportable segment profits were reconsolidated with the operating income of the consolidated
income statement.

25

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014

FY2014 (from April 1, 2014 to March 31, 2015)(in millions)
Reportable Segments
Higashinihon

Nishinihon

KyushuOthers

Total

Total

*1

Reconciliations*2

consolidated
amounts*3

Sales
Unaffiliated sales¥ 39,614¥ 28,205¥ 37,793¥ 105,613¥ 2,331¥107,945－¥ 107,945

Intersegment sales

55

738

2

796

4,823

5,620

¥ (5,620)

－

Total

39,67028,94337,796

106,410

7,155

113,565(5,620)107,945

Segment profit

842

1,510

2,643

4,996

620

5,617

(599)

5,017

Segment assets

25,02915,854

15,27256,156

5,698

61,855

7,955

69,811

1,154

998

957

3,111

294

3,406

340

3,746

578

206

20

805

0

805

－

805

2,679

1,617

991

5,289

118

5,407

194

5,601

OthersDepreciation
Amortization of goodwill
Increase in assets

Notes:*1. Others include items such as wholesales of pharmaceuticals and TV rental for hotels, which are
not classified as reportable segments.
*2. Reconciliations were as follows:(1) Reconciliation for reportable segment loss (¥599million) included elimination of intersegment
sales (¥26million) and overall corporate expense (¥572million). The overall corporate expense
was classified as selling general and administrative expenses and was not allocated toreportable segments.
(2) Reconciliation for reportable segment assets (¥7,955 million) included elimination investment
against equity (¥-8,464 million) and overall corporate assets (¥17,150 million). The overall
assets were classified as parent company’s deposits and were not allocated to reportablesegments.
(3) Assets included property, plant and equipment and intangible assets. Reconciliation of increaseof those assets (¥194 million) was classified as head office’s networking systems and allocationof other reportable segments.
*3. Reportable segment profits were reconsolidated with the operating income of the consolidated
income statement.

26

SOGO MEDICAL CO., LTD. (4775)
Summary of Consolidated Financial Results for FY2014(Per Share Information)
FY2013

FY2014

Net assets per share¥ 1,655.73¥ 1,824.14

Net income per share

197.82

192.20Notes:
1. We calculate net assets per share according to the following financial information:(in millions)
FY2013

FY2014

Net assets¥ 23,934¥ 26,521

Deduction

28

184(Minority interests)

28

184

Net assets attributable to common stocks

23,90526,336

Number of common stocks at end of FY

14,43814,437

2. We did not issue dilutive potential common shares.
Therefore we did not report diluted earnings per share information.

3. In accordance with a resolution of the board of directors' meeting convened on February 19,
2015, Sogo Medical has on April 1, 2015, instituted a 2-for-1 common stock split. Net assets
per share and net income per share have been calculated assuming that the stock split was
instituted at the start of the previous fiscal year.

4. We calculate net income per share according to the following financial information：(in millions)
FY2013
Net income

FY2014¥ 2,856(Preferred dividends)¥ 2,774--

Net income attributable to common stocks

2,856

2,774

Average number of common stocks

14,43814,438The Company repurchased and then cancelled all 13,500 stock options issued following approvalby the board of directors on April 18, 2012.

(Significant Subsequent Events)
None.

27