Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)

February 8, 2024

Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

TOHO HOLDINGS CO., LTD.
Tokyo Stock Exchange8129
https://www.tohohd.co.jp/en
Atsushi Udoh / Representative Director, CEO
Makoto Kawamura / Corporate Officer and General Manager, Corporate Communications andInvestor Relations Division
Telephone:+81-3-6838-2803
Scheduled date to file quarterly securities report:
February 14, 2024
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the nine months ended December 31, 2023
(from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)
Net sales
Nine months ended

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

1,119,549

5.6

11,581

3.7

13,618

1.4

13,47041.3

December 31, 2022
1,060,433
─
11,172
─
13,42835.8
Note: Comprehensive income For the nine months ended December 31, 2023: ¥ 12,383 million [38.9%]
For the nine months ended December 31, 2022: ¥ 8,917 million [217.7%]

9,534

38.0

December 31, 2023

Basic earnings
per share
Nine months ended
December 31, 2023

Diluted earnings
per share
Yen

Yen

207.25186.20December 31, 2022
136.09125.10Note: Owing to the change in presentation method from the first quarter of the fiscal year ending March 31, 2024, net sales andoperating profit for the nine months ended of the fiscal year ended March 31, 2023 are shown after the retrospective reclassification,and percentage changes are not shown. Net sales and operating profit for the nine months ended of the fiscal year ended March 31,
2023 before the reclassification were 1,057,814 million yen and 8,552 million yen, respectively.

(2) Consolidated financial position
Total assets
As ofDecember 31, 2023
March 31, 2023
Reference: Equity

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

804,873

243,70330.2

715,288242,916
As of December 31, 2023: ¥243,457 million
As of March 31, 2023: ¥242,678 million

33.9

2. Cash dividends

Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year-end
Yen

Total
Yen

Fiscal year ended
─
16.00
─
16.00
32.00
March 31, 2023
Fiscal year ending
─
18.00
─
March 31, 2024
Fiscal year ending
March 31, 2024
22.00
40.00
(Forecast)
Note: Revision to the forecast of cash dividends most recently announced: Applicable
Breakdown of cash dividends for the first half of FY ending March 2024: Commemorative dividend: 2.00yen; Ordinary dividend: 16.00yen

3. Consolidated projected results of operations during fiscal year ending March 31, 2024 (from April 1,
2023 to March 31, 2024)(Percentages indicate the rate of change compared with the preceding fiscal year.)
Profit attributable to Net income per
Operating profit
Ordinary profit
owners of parent
share

Net sales
Million yen％

Million yen％

Million yen％

Million yen

Yen％

Full year
1,458,000
4.7
12,600 -23.0
15,500 -19.2
14,5006.4
224.75
Note: 1. Revision of consolidated projected results of operations most recently announced: Applicable
2. Owing to the change in presentation method from the first quarter of the fiscal year under review, the percentage change innet sales and operating profit are calculated using the reclassified figures for the same period of the previous fiscal year,
which reflect the change.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
Newly included: ─Excluded:─(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

78,270,142 shares

As of March 31, 2023

78,270,142 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023

14,686,537 shares

As of March 31, 2023

11,302,582 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2023

64,993,543 shares

Nine months ended December 31, 2022

70,059,745 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants oran audit corporation.
* Proper use of earnings forecasts, and other special matters
Any forward-looking statements contained in this report, including performance projections, are based on
information currently available to the Company as well as certain assumptions that the Company determined to
be rational at the time of the release of this report, and it is not intended that the Company undertake to achieve
such results. Actual results may differ significantly from the projections above, due to a variety of factors.
Please refer to Explanation of Projections of Consolidated Operating Results for Fiscal Year ending March 31,
2024 on page 3 of this report (the attached document) for the suppositions on which the performance projections
are based and points that have to be borne in mind for the use of such projections.

〇Contents of Attached Document
1. Qualitative Information on Financial Results for the Nine Months ended December 31, 2023 ·········· 2(1) Explanation of Management Results ··········································································· 2(2) Explanation of Financial Position ··············································································· 3(3) Explanation of Projections of Consolidated Operating Results for
Fiscal Year ending March 31, 2024 ············································································ 3
2. Quarterly Consolidated Financial Statements and Main Notes ················································ 4(1) Quarterly Consolidated Balance Sheets ········································································ 4(2) Quarterly Consolidated Profit and Loss Statement and Quarterly Consolidated Statements ofComprehensive Income ·························································································· 6
Quarterly Consolidated Profit and Loss Statement ··························································· 6
Quarterly Consolidated Statements of Comprehensive Income ············································ 8(3) Notes Concerning Quarterly Consolidated Financial Statements··········································· 9(Notes Concerning Premise of a Going Business) ···························································· 9(Notes Concerning Material Changes in Shareholders’ Equity) ············································ 9(Changes in the Accounting Policies) ·········································································· 9(Segmental Information) ························································································· 10-1-1. Qualitative Information on Financial Results for the Nine Months Ended December 31, 2023
(1) Explanation of Management Results
For the nine months ended December 31, 2023, the Group posted positive growth in the prescription
pharmaceuticals market. Net sales of products related to COVID-19, which raged during the same period a year
earlier, fell sharply, but those of new drugs such as cancer drugs and specialty pharmaceuticals continued to grow.
In addition, net sales of therapeutic agents for influenza increased owing to the spread of the disease. With regard
to the supply of prescription pharmaceuticals, shipment adjustments remained in place for antipyretic analgesics,
mainly generic drugs, as well as for antitussives, expectorants, and the like.
Under these circumstances, the Group developed the Medium-term Management Plan 2023-2025 “Create the
Next Generation,” for a period of three years from 2023. It set out four basic policies: (1) Business transformation,(2) Investment for growth and improvement of profitability, (3) Sustainability management, and (4) Improvementof capital efficiency and enhancement of shareholder returns. Based on these policies, we implemented specificmeasures to maintain sustainable growth and enhance corporate value through such means as active businessalliances and digital transformation (DX).
In the area of business transformation, we implemented a joint promotional campaign involving both market
specialists (MSs) in pharmaceuticals and those in reagents in order to promote the unification of thepharmaceutical- and reagent-related functions, a major objective of the transformation of pharmaceuticalwholesaling business. As for office consolidation, we moved to develop an optimal structure that reflected local
realities. Our actions during the period under review included the integration of the Tsuruga sales office into the
Fukui sales office at Hokuriku Toho Co., Ltd. in October 2023. We also took positive steps in rethinking the current
delivery frequency – an action aimed at helping to both increase operational efficiency and reduce CO2 emissions– while gaining the understanding of our customers.
With MICIN, Inc., which entered into a capital and business alliance in September 2023, we launched a project
team made up of six working groups to identify the areas of collaboration between the two companies. For
sustainability, aiming to achieve our targets of reducing CO2 emissions, we took steps at our offices and distribution
centers to introduce EVs and switch to an electricity pricing scheme that promotes the use of electricity derived
from renewable energy.
Moreover, we decided to establish two advisory bodies to the Board of directors. One is the Investment
Committee, which is tasked with examining investment proposals in terms of such criteria as financial relevance,
profitability, growth potential, and risks from the perspectives of finances and business strategies. The other is theManagement Strategy Committee, which is responsible for discussing important management and businessstrategies of the Group.
In December 2023, we transferred our headquarters functions, which had been separated between Daizawa,
Setagaya-ku, and Marunouchi, Chiyoda-ku, to Tokyo Midtown Yaesu for consolidation purposes. The aims
included better management efficiency, prompter decision-making, a more lively workplace through better
communication, higher quality communication with business partners, and lower fixed expenses, including rents.
The Company’s consolidated operating results for the nine months ended December 31, 2023 recorded 1,119,549
million yen for net sales (an increase of 5.6% on a year-on-year basis), 11,581 million yen for operating profit (anincrease of 3.7% on a year-on-year basis), 13,618 million yen for ordinary profit (an increase of 1.4% on a yearon-year basis), and 13,470 million yen for profit attributable to owners of parent (an increase of 41.3% on a yearon-year basis).
We have decided to include revenues from information service fees, etc., which were previously recorded as
nonoperating income in net sales, beginning with the first quarter of the fiscal year under review. In order to reflect
this change in the presentation method, revenues from information service fees, etc. for the previous fiscal year
have been reclassified to net sales.
The outline of business segment operating results are as follows.
In Pharmaceutical Wholesaling, net sales of COVID-19-related products such as therapeutic agents anddiagnostic reagents dropped significantly from the same period a year earlier as the COVID-19 pandemic waned.
Meanwhile, those of cancer therapeutic agents and influenza-related products increased. In addition, net sales of
specialty pharmaceuticals and other limited-handling products for selected wholesalers continued to show a steady
growth. Changes to distribution arrangements at some pharmaceutical manufacturers also help to increase net sales.
In price negotiations with medical institutions, we continued our efforts to negotiate unit prices for individual
products in order to better reflect their individual value and distribution costs. Our actions for customer support
systems included introducing ENIFvoiceSP, promoting a switch from ENIF to FutureENIF, and ramping up the
proposal activity of Byoin-Navi’s website-creating service.
As a result, the pharmaceutical wholesaling business posted net sales of 1,081,258 million yen (an increase of
5.7% on a year-on-year basis) and segment profit (operating profit) of 11,758 million yen (an increase of 25.1% on
a year-on-year basis) for the nine months ended December 31, 2023 under review.
In Dispensing Pharmacy, we began to offer the portal application Kyoso Mirai Pharmacy Health Navi, whichfeatures the prescription-sending function and an electronic medicine notebook, to expedite the digitalization
process. In addition, Pharma Mirai Inc. installed Maidoumo Post – a set of delivery boxes, which WILLPORT Co.,-2-

Ltd. has developed and now operates – within selected pharmacies on an experimental basis. This service allows
patients who failed to receive their ordered drugs at home on the scheduled dates, to receive them at pharmacies
whenever it is convenient for them. During the nine months ended December 31, 2023, the number of prescriptions
increased owing to a rebound from patients’ reluctance to seek care. Also, the transitional measure for thecommunity support system incentives was terminated, reducing technical fees. As a result, net sales of thedispensing pharmacy business were 70,364 million yen (an increase of 2.2% year on year) and segment profit(operating profit) was 1,446 million yen (a decrease of 16.8% year on year).
In the pharmaceutical manufacturing and sales business, the Group has been engaged in the stable supply ofhigh-quality and high value-added pharmaceuticals by strictly monitoring the quality of products based on its own
verification system and establishing a planned production system．The number of large hospitals with 200 or more
beds that adopted generic drugs sold by KYOSOMIRAI PHARMA exceeded 1,000. As a result, the pharmaceuticalmanufacturing and sales business posted net sales of 7,984 million yen (an increase of 7.3% on a year-on-yearbasis.) and segment profit (operating profit) of 686 million yen (a decrease of 4.1% on a year-on-year basis.).
In the other peripheral businesses, net sales amounted to 4,440 million yen (a decrease of 10.1% on a year-onyear basis.) and segment profit (operating profit) was 258 million yen (a decrease of 42.3% on a year-on-yearbasis.).
(Note) Segment sales include inter-segment transactions.
(2) Explanation of Financial Position(Assets)
Current assets increased 17.7% from the end of the previous consolidated fiscal year to 627,887 million yen withan increase in cash and deposits of 42,677 million yen, an increase in notes and accounts receivable-trade of 42,205
million yen, and an increase in merchandise and finished goods of 3,233 million yen in other.
Non-current assets decreased 2.6% from the end of the previous consolidated fiscal year to 176,986 million yen
with a decrease in property, plant and equipment of 1,659 million yen in other.
As a result, consolidated net assets increased 12.5% from the end of the previous consolidated fiscal year, to804,873 million yen.
(Liabilities)
Current liabilities increased 15.5% from the end of the previous consolidated fiscal year to 508,471 million yen
with an increase in notes and accounts payable-trade of 88,758 million yen, and a decrease in current portion ofbonds payable of 20,003 million yen in other.
Non-current liabilities increased 63.7% from the end of the previous consolidated fiscal year to 52,697 million
yen with an increase in bonds payable of 22,098 million yen in other.
As a result, total liabilities increased 18.8% from the end of the previous consolidated fiscal year, to 561,169
million yen.
(Net assets)
Total net assets increased 0.3% from the end of the previous consolidated fiscal year to 243,703 million yen withan increase in retained earnings of 11,259 million yen, and an increase in treasury shares of 9,384 million yen inother.
(3) Explanation of Projections of Consolidated Operating Results for Fiscal Year ending March 31, 2024
The Company has revised its consolidated full-year earnings forecast for the fiscal year ending March 2024 (April
1, 2023 - March 31, 2024) and year-end dividend forecasts announced on May 12, 2023, taking into consideration the
recent trends in performances. As for the details, please refer to the “Notice Regarding the Revision of the Full-year
Earnings Forecasts and Dividend Forecasts for the Fiscal Year Ending March 2024” announced today (February 8,2024).

-3-

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Unit: million yen)

As of March 31, 2023

As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets

86,201
316,696
91,217
206
39,573

Non-current assets
Property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

-4-

-376
533,519

128,878
358,902
94,450141
45,904-390
627,887

90,27088,610

514
4,863

354
5,179

5,377

5,534

88,067-1,947
86,12084,617-1,776
82,840181,768
715,288

176,986
804,873

(Unit: million yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds payable
Income taxes payable
Provision for bonuses
Provision for bonuses for directors
Asset retirement obligations
Other
Total current liabilities

As of December 31, 2023

385,1409,800

4016,794440,188473,899
8,059
－
3,019
1,651
32
224
21,585
508,471

－
6,472
2,508
2,747
4,849
15,60532,18322,098
6,184
2,539
3,000
4,849
14,026
52,697472,372

561,169

10,64949,146
191,531-23,107228,219

10,64949,154
202,790-32,491
230,102

18,734

17,637-4,276
14,458-4,283
13,354

146
92

144
102

242,916715,288

243,703804,873

20,003
5,152
3,214
42

Non-current liabilities
Bonds payable
Long-term borrowings
Retirement benefit liability
Asset retirement obligations
Provision for loss on Antimonopoly Act
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on
available-for-sale securities
Revaluation reserve for land
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-(2) Quarterly Consolidated Profit and Loss Statement and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Profit and Loss Statement[Nine months ended December 31, 2023](Unit: million yen)
Nine months ended
December 31, 2023

Nine months ended
December 31, 2022
Net sales

1,060,433

1,119,549

Cost of sales

975,697

1,033,049

Gross profit

84,736

86,500

Selling, general and administrative expenses
Remuneration, salaries and allowances for directors

33,39033,500

1,546

1,608

Provision for bonuses
Provision for bonuses for directors

31

32

Retirement benefit expenses

210

213

Welfare expenses

5,849

5,832

Vehicle expenses

824

784

Provision of allowance for doubtful accounts
Depreciation
Amortization of goodwill

325

-156

4,150

4,414

222

202

Rent expenses

5,986

6,304

Taxes and dues
Non-deductible temporary paid consumption tax
expense

1,565

1,630

4,810

5,013

Other

14,64815,537

Total selling, general and administrative expenses

73,56474,918

11,172

11,581

41

40

1,048

945

132

313

624

633

766

518

2,615

2,452

Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodRental income from real estate
Other
Total non-operating income
Non-operating expenses
Interest expenses

54

46

Real estate lease expenses

160

135

Other

144

234

Total non-operating expenses

358

415

13,428

13,618

Ordinary profit-6-

(Unit: million yen)
Nine months ended
December 31, 2023

Nine months ended
December 31, 2022
Extraordinary income
Gain on sale of non-current assets

115

22

Gain on sale of investment securities

2,784

6,686

19

215

2,920

6,924

Loss on disposal of non-current assets

113

139

Impairment losses

26-

Loss on valuation of shares of subsidiaries andassociates

-

122

1,400

-

Other
Total extraordinary income
Extraordinary losses

Provision for loss on Antimonopoly Act

359

8

1,900

269

Profit before income taxes

14,44820,273

Income taxes-current

4,737

6,632

Income taxes-deferred

159

160

Total income taxes

4,897

6,792

Net profit

9,551

13,480

Other
Total extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

-7-

17

10

9,534

13,470Quarterly Consolidated Statements of Comprehensive Income[Nine months ended December 31, 2023](Unit: million yen)
Nine months ended
December 31, 2023

Nine months ended
December 31, 2022
Net profit

9,551

13,480

Valuation difference on available-for-sale securities-692-1,077

Share of other comprehensive income of entities
accounted for using equity method

58

-19

-634

-1,097

8,917

12,383

8,899

12,37317

10

Other comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable tonon-controlling interests-8-(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes Concerning Premise of a Going Business)
Not applicable.
(Notes Concerning Material Changes in Shareholders’ Equity)
Nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)
Not applicable.
(Change in the Presentation of Consolidated Financial Statements)
Traditionally, revenues from information service fees earned from pharmaceutical manufacturers, etc. wererecorded as “commission income” under “non-operating income,” and membership revenues earned frommedical institutions, etc. were recorded as “other” under “non-operating income.” However, effective from thefirst quarter of the fiscal year under review, such income is now included in “net sales.”The Group established the Medium-term Management Plan 2023-2025 “Create the Next Generation”, with thefiscal year ending March 31, 2024 as the beginning and the fiscal year ending March 31, 2026 as the final year,
and has been promoting measures to achieve continuous growth and improve profitability over the medium tolong term since April 2023. In the transformation of pharmaceutical wholesaling business, one of the concretemeasures, TOHO PHARMACEUTICAL, a consolidated subsidiary, has made organizational changes tostrengthen planning, promotion, and management of strategies to accelerate income, including revenues frominformation service fees.
In this way, we have positioned information services, which are expected to become even more important
going forward owing to changes in the information business environment, as one of our main sales activities.
This has prompted us to change the method of presentation as described above to better present the results of
the Group's sales activities.
In order to reflect this change in presentation method, the consolidated financial statements for the third quarterof the previous year have been reclassified. As a result, net sales and operating profit for the third quarter of theprevious fiscal year increased by 2,619 million yen compared with those before the reclassification, with net
sales and operating profit amounting to 1,060,433 million yen and 11,172 million yen, respectively. There is no
impact on ordinary profit or profit before income taxes. In addition, “accounts receivable - other” of 473 million
yen, which were presented in “other” under current assets in the consolidated balance sheet for the previous
fiscal year, have been reclassified to “notes and accounts receivable - trade.” As a result, notes and accounts
receivable-trade amounted to 316,696 million yen and “other” under current assets amounted to 39,573 million
yen.

-9-

(Segmental Information)
As described in Change in the Presentation of Consolidated Financial Statements, revenues from information
service fees, etc. have been reclassified to net sales from the first quarter of the fiscal year ending March 31, 2024.
In order to reflect this change in presentation method, the Segmental Information for the third quarter of theprevious year have been reclassified.
As a result, net sales and segment profit in the pharmaceutical wholesaling business for the third quarter of theprevious fiscal year increased by 2,619 million yen compared with those before the reclassification.
Ⅰ Nine months ended December 31, 2022
1. Information about sales and profit by reportable segment
Reportable segments

Amount on thequarterly
Adjustments consolidated
Other
PharmaceuticalPharmaceutical Dispensing(million yen) profit and loss
Manufacturing Peripheral
Total
Wholesaling Pharmacy
statement
Businesses (million yen) (Note 1)
and Sales(million yen) (million yen)(million yen)(million yen) (million yen)
(Note2)Net Sales(1) Sales to externalcustomers

986,203

68,839

1,613

3,777

1,060,433－

1,060,433(2) Inter-segment sales

36,401

4

5,829

1,161

43,396-43,396－

Total

1,022,605

68,843

7,442

4,939

1,103,830-43,396

1,060,433

9,398

1,738

715

449

12,301-1,128

11,172

Segment profit（Note）1. The amount of the adjustments for segment profits shows the elimination of internal transactions andunrealized profit and corporate expenses not attributable to any reportable segment.
2. The amounts for profit in the reportable segments were subsequently adjusted with the amount ofoperating profit on the quarterly consolidated profit and loss statement.

2. Information about impairment losses on non-current assets or goodwill by each business segment
Not applicable.
Ⅱ Nine months ended December 31, 2023
1. Information about sales and profit by reportable segment
Reportable segments

Amount on thequarterly
Adjustments consolidated
Other
PharmaceuticalPharmaceutical Dispensing(million yen) profit and loss
Manufacturing Peripheral
Total
Wholesaling Pharmacy
statement
and Sales
Businesses (million yen) (Note 1)(million yen) (million yen)(million yen)(million yen) (million yen)
(Note2)Net Sales(1) Sales to externalcustomers

1,043,989

70,355

1,800

3,405

1,119,549－

1,119,549(2) Inter-segment sales

37,269

9

6,184

1,035

44,498-44,498－

Total

1,081,258

70,364

7,984

4,440

1,164,048-44,498

1,119,549

Segment profit

11,758

1,446

686

258

14,150-2,568

11,581（Note）1. The amount of the adjustments for segment profits shows the elimination of internal transactions andunrealized profit and corporate expenses not attributable to any reportable segment.
2. The amounts for profit in the reportable segments were subsequently adjusted with the amount ofoperating profit on the quarterly consolidated profit and loss statement.

2. Information about impairment losses on non-current assets or goodwill by each business segment
Not applicable.
- 10 -