Note: This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.
May 10, 2024
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
(Under Japanese GAAP)
Company name: TOHO HOLDINGS CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code:
8129
URL:
https://www.tohohd.co.jp/en/
Representative:
Atsushi Udoh / Representative Director, CEO
Inquiries:
Makoto Kawamura / Corporate Officer and General Manager, Corporate Strategy Division
Telephone:+81-3-6838-2803
Scheduled date of annual general meeting of shareholders:June 27, 2024
Scheduled date to commence dividend payments:
June 6, 2024
Scheduled date to file annual securities report:
June 27, 2024
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for Institutional Investors and Analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results(Percentages indicate year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
Fiscal year ended Millions of yen
March 31, 2024
1,476,712
6.1
19,331
18.1
21,787
13.6
20,657
51.5
March 31, 2023
1,392,117－
16,365－
19,176
5.5
13,6301.9
Note: Comprehensive income For the fiscal year ended March 31, 2024:¥20,705 million[78.6%]
For the fiscal year ended March 31, 2023:¥11,592 million[103.3%]
Ratio of ordinary
Ratio ofprofit to total
operating profit
assetsto net sales
Fiscal year ended
Yen
Yen
%
%
%
March 31, 2024
320.14286.798.4
2.9
1.3
March 31, 2023
196.70180.675.6
2.7
0.9
Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023: ¥164 million
For the fiscal year ended March 31, 2023: ¥41 million
Note: Owing to the change in presentation method from the first quarter of the fiscal year ended March 31, 2024,
net sales and operating profit for 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 fiscal year ended
March 31, 2023 before the reclassification were 1,388,565 million yen and 12,813 million yen, respectively.
Basic earnings
per share

Diluted earnings
Return on equity
per share(2) Consolidated financial position
Total assets

Net assets

As ofMillions of yen
Millions of yen
March 31, 2024
773,427
249,437
March 31, 2023
715,288242,916
Reference: Equity
As of March 31, 2024: ¥249,288 million
As of March 31, 2023: ¥242,678 million
1

Equity-to-asset ratio

Net assets per share

%
32.2
33.9

Yen
3,969.20
3,623.81

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen
59,934-9

Millions of yen
9,091
4,315

Fiscal year ended
March 31, 2023
March 31, 2023
2. Cash dividends

Annual dividends per share
First
Second Third Fiscal
quarter- quarter- quarter- yearend
end
end
end
Yen

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025
(Forecast)

Yen

Yen

Yen

Cash and cash
equivalents at end of
periodMillions of yen
Millions of yen-22,195
128,673-13,060
81,839Cash flows fromfinancing activities

Total

Total cash
dividends(Total)Ratio of
Payout ratio dividends to net
assets(Consolidated)(Consolidated)

Yen Millions of yen

%

%

－

16.00

－

16.00

32.00

2,200

16.3

0.9

－

18.00

－

22.00

40.00

2,544

12.5

1.1

－

25.00

－

25.00

50.00

3. Consolidated financial forecast for fiscal year ending March 31, 2025(from April 1, 2024 to March 31,
2025)(Percentages indicate the rate of change compared with the preceding fiscal year.)
Profit attributable to Net income
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen％

Millions of yen％

First Half

731,000 -0.5

6,900

6.3

7,900

-0.6

4,900

-44.2

78.05

Full year

18,200-5.9

20,100-7.7

12,500-39.5

199.11

1,492,000

1.0

2Millions of yen

％

Yen

％

Millions of yen

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: － companies
Excluded:－ companies(2) 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
(3) Number of issued shares (common shares)(i) Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024
76,431,342 shares
As of March 31, 2023
78,270,142 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2024
13,650,854 shares
As of March 31, 2023
11,302,582 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2024
64,527,150 sharesFiscal year ended March 31, 2023
69,297,318 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)
Net sales
Operating profit
Ordinary profit
ProfitFiscal year ended
March 31, 2024
March 31, 2023

Millions of yen

12,515
13,039% Millions of yen

-4.0
－

3,807
5,825

% Millions of yen

-34.6
－

4,883
7,260

% Millions of yen

-32.7
249.0

13,118
9,655

%

35.9
140.5

Note: With the change of presentation method as already described in the note of the consolidated financial results, net sales andoperating profit for the fiscal year ended March 31, 2023 are shown after the retrospective reclassification, and percentage changes
are not shown.

Fiscal year ended
March 31, 2024
March 31, 2023

Basic earnings
per shareYen
203.27139.32

Diluted earnings
per shareYen
182.03127.91(2) Non-consolidated financial position
Total assets

Net assets

As ofMarch 31, 2024
March 31, 2023

Millions of yen
150,054
152,299

Reference: Equity

Millions of yen
267,428
253,452

As of March 31, 2024: ¥149,909 million

Equity-to-asset ratio

Net assets per share

%
56.1
60.0

Yen
2,387.40
2,271.65

As of March 31, 2023: ¥152,153 million* Financial results reports are exempt from audit conducted by certified public accountants or an 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 considers rational at the time of
the release of this report, and does not indicate that the Company undertakes to achieve such results. Actual results
may differ significantly from the projections above, due to a variety of factors. As for precautions regarding the use of
the Performance Projections and the conditions underlying the assumptions for the Performance Projections, refer to
Section “1. Summary of Management Results (4) Projections for the Next Fiscal Year” on Page 4 of the Attached
Document.
- The Company plans to hold a briefing on the financial results for institutional investors and analysts on the web on
May 15, 2024. The Company also intends to provide a record of the progress of the session and the outline of thebriefing (voice recording), together with the briefing material, on its website promptly after the briefing.

3

Contents of Attached Document
1. Summary of Management Results････････････････････････････････････････････････････････ 2(1) Summary of Management Results for the Current Fiscal Year････････････････････････････････ 2(2) Summary of Financial Position for the Current Fiscal Year･･････････････････････････････････ 3(3) Summary of Cash Flows for the Current Fiscal Year･･･････････････････････････････････････ 34(4) Projections for the Next Fiscal Year････････････････････････････････････････････････････
2. State of the Corporate Group････････････････････････････････････････････････････････････ 5
3. Business Management Policy････････････････････････････････････････････････････････････ 5
4. Basic Idea for Selection of Accounting Standards････････････････････････････････････････････ 6
5. Consolidated Financial Statements and Main Note･･･････････････････････････････････････････ 7(1) Consolidated Balance Sheets･･････････････････････････････････････････････････････････ 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income･････････ 9(3) Consolidated Statement of Changes in Equity･････････････････････････････････････････････ 12(4) Consolidated Statement of Cash Flows･････････････････････････････････････････････････ 14(5) Notes to Consolidated Financial Statements･･････････････････････････････････････････････ 16(Notes Concerning Premise of a Going Business)･･････････････････････････････････････････ 16(Change in the Accounting Policies)････････････････････････････････････････････････････ 16(Segment Information)･･････････････････････････････････････････････････････････････ 17(Amounts per Share)････････････････････････････････････････････････････････････････ 20
20(Significant Subsequent Events)･･････････････････････････････････････････････････････
6. Unconsolidated Financial Statements･････････････････････････････････････････････････････ 21(1) Balance Sheets･････････････････････････････････････････････････････････････････････ 21(2) Statements of Income････････････････････････････････････････････････････････････････ 23(3) Statements of Changes in Equity･･･････････････････････････････････････････････････････ 25

1

1. Summary of Management Results(1) Summary of Management Results for the Current Fiscal Year
During the fiscal year under review, the prescription pharmaceuticals market continued to be affected by thepromotion of measures to curb medical expenses, such as the off-year NHI drug price revisions in April 2023. In
addition, owing to the continued adjustment of shipments of certain prescription pharmaceutical products, theoutlook for the market remained uncertain. In the Group, although sales of test reagents and test kits for detecting
COVID-19 plummeted from the previous year, overall sales of new coronavirus-related products did not tumble
as much as initially expected, and sales of specialty pharmaceuticals and other limited-handling products forselected wholesalers continued to grow. This favorable sales performance combined with changes in the
distribution system by some pharmaceutical manufacturers resulted in higher sales and profits than in thepreceding year.
In May 2023, the Group announced the Medium-term Management Plan 2023-2025 “Create the Next
Generation,” which covers three years from the fiscal year ended March 31, 2024. It set out four basic policies: (1)Business transformation, (2) Investment for growth and improvement of profitability, (3) Sustainability
management, and (4) Improvement of capital efficiency and enhancement of shareholder returns, and based onthese policies, we implemented specific measures to maintain sustainable growth and enhance corporate value
through such means as active business alliances and digital transformation (DX).
In the area of business transformation, in order to promote wholesaling business transformation, we made in
July 2023 substantial organizational changes to TOHO PHARMACEUTICAL CO., LTD., a consolidated
subsidiary engaged in the pharmaceutical wholesaling business, mainly in the sales division, and are accelerating
initiatives to reorganize the sales structure based on secondary medical care areas to promote community-based
initiatives. The major theme of the transformation was the integration of pharmaceuticals and reagents, and we
pushed forward with joint promotion of pharmaceutical MS (Marketing Specialist) and reagent MS. We also
worked to streamline sales and delivery operations by consolidating and closing business sites and clarifying theroles of MS and EMS (ENIF Marketing Supporter). Furthermore, in order to create new added value by
integrating cutting-edge technologies with various functions, including our unique customer support systems,
through active alliances, we established a joint research laboratory with the National Institute of Advanced
Industrial Science and Technology (AIST) and launched joint research aimed at establishing universal medical
access. We have also formed a capital and business alliance with MICIN, Inc., which is engaged in the online
medical business, clinical development digital solution business, etc., launched a project team made up of six
working groups, and started to collaborate in some businesses.
With regard to investment for growth and improvement of profitability, we have started handling regenerative
medical products, for which market growth is expected, and established a Regenerative Medicine Management
Office within TOHO PHARMACEUTICAL CO., LTD. to build a system for proper distribution. We have also set
up the Investment Committee to implement disciplined investments by verifying the appropriateness, analyzing
profitability, assessing growth potential, and understanding potential risks of investment projects from financial
and business strategy perspectives.
With regard to the promotion of sustainability, we have established short-, medium-, and long-term CO2
emissions reduction targets, and in a bid to achieve these targets, we are switching to electricity plans derived
from renewable energy sources, installing solar panels, and introducing EVs at our offices and distribution centers.
Since March of this year, TOHO PHARMACEUTICAL CO., LTD. and 15 pharmacies in the Group haveparticipated in ReMedTM, a recycling project for used pre-filled injection pens, which Novo Nordisk Pharma haslaunched on a trial basis for the first time in Japan, thereby contributing to the reduction of plastic waste(footprint).
In the area of capital policy, we worked for improvement of capital efficiency and enhancement of shareholder
returns by continuously reducing cross-shareholdings, implementing two share buybacks (6 billion yen each for a
total of 12 billion yen), and canceling all of the shares acquired in the second buyback.
In addition, in order to accelerate the implementation of these initiatives of the Medium-term Management Planand increase their effectiveness, we have decided to establish the Management Strategy Committee as an advisory
body to the Board of Directors to discuss and review important management and business strategies and othermatters. In March 2024, we reorganized the organization of TOHO HOLDINGS and established the Corporate
Strategy Division and the Logistics and Systems Planning Division, with the aim of strengthening concretemeasures.
The Company’s consolidated operating results for fiscal year ended March 31, 2024 recorded 1,476,712 million
yen for net sales (an increase of 6.1% on a year-on-year basis), 19,331 million yen for operating profit (an increaseof 18.1% on a year-on-year basis), 21,787 million yen for ordinary profit (an increase of 13.6% on a year-on-yearbasis), and 20,657 million yen for profit attributable to owners of parent (an increase of 51.5% on a year-on-yearbasis).
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 toreflect 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 the pharmaceutical wholesaling business, we made efforts to respond to shipment adjustments due to thetight supply and demand of antipyretics and analgesics, cough medicines, expectorants, and measles vaccines.
2

Sales of specialty pharmaceuticals and other limited-handling products for selected wholesalers continued to grow.
This together with changes in the distribution arrangements at some pharmaceutical manufacturers also
contributed to increased sales. In price negotiations with medical institutions, we continued our efforts tonegotiate unit prices for individual products in order to better reflect their individual value and distribution costs.
Our actions for customer support systems included strengthening promotions using video and remote detailing,promoting the introduction of the ENIFvoice series mainly to drugstores, facilitating 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 1,424,488 million yen (an increase of
6.3% on a year-on-year basis) and segment profit (operating profit) of 19,453 million yen (an increase of 39.0% on
a year-on-year basis) for the consolidated fiscal year under review.
In the dispensing pharmacy business, in order to implement the “Transformation of the dispensing pharmacy
business,” which is a key measure of the Medium-term Management Plan, we reorganized operating companies,
opened and closed pharmacies with an emphasis on profitability, and worked to strengthen cooperation withclinics specialized in providing home-based care. In addition, we have launched a portal application, Kyoso Mirai
Pharmacy Health Navi, which includes a function for sending prescriptions and an electronic medicine notebook,to promote digitalization.
During this fiscal year under review, although the number of prescriptions increased owing to a rebound frompatients’ reluctance to seek care, the transitional measure for the community support system incentives was
terminated, reducing technical fees. As a result, net sales of the dispensing pharmacy business were 93,789 million
yen (an increase of 1.6% year on year) and segment profit (operating profit) was 1,546 million yen (a decrease of
36.4% year on year).
In the pharmaceutical manufacturing and sales business, the Group engaged in the stable supply of high-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 10,593 million yen (an increase of 6.5% on a year-on-yearbasis.) and segment profit (operating profit) of 755 million yen (a decrease of 12.6% on a year-on-year basis.).
In the other peripheral businesses, net sales amounted to 6,147 million yen (a decrease of 7.4% on a year-on
year basis.) and segment profit (operating profit) was 448 million yen (a decrease of 27.9% on a year-on-yearbasis.).
(Note) Segment sales include inter-segment transactions.
(2) Summary of Financial Position for the Current Fiscal Year(i)Assets
Consolidated current assets as of the end of March 2024 increased 12.1% from the end of the previous
consolidated fiscal year to 597,888 million yen, due mainly to an increase in cash and deposits of 46,769 yen, an
increase in accounts receivable-trade of 22,234 million yen, and a decrease in merchandise and finished goods of
4,110 million yen in other.
Non-current assets as of the end of March 2024 decreased 3.4% from the end of the previous year to 175,538
million yen, due mainly to a decrease in property, plant and equipment of 2,792 million yen, and a decrease ininvestments securities of 2,391 million yen.
As a result, consolidated total assets as of the end of March 2024 increased 8.1% from the end of the previous
consolidated fiscal year to 773,427 million yen.
(ii)Liabilities
Current liabilities increased 7.1 % from the end of the previous consolidated fiscal year to 471,305 million yen,owing to an increase in notes and accounts payable-trade of 52,931 million yen, and a decrease in current portionof bonds payable of 20,003 million yen in other.
Non-current liabilities increased 63.7 % from the end of the previous consolidated fiscal year to 52,684 million
yen with an increase in bonds payable of 22,092.
As a result, total liabilities increased 10.9 % year-on-year to 523,990 million yen.
(iii)Net Assets
Total net assets increased 2.7% from the end of the previous consolidated fiscal year to 249,437 million yen, withan increase in retained earnings of 18,215 million yen, a decrease in capital surplus of 3,933 million yen, and anincrease in treasury shares of 7,800 million yen.
(3) Summary of Cash Flows for the Current Fiscal Year
Cash and cash equivalents (hereinafter referred to as “cash”) during this consolidated fiscal year increased by
46,833 million yen from the end of the previous consolidated fiscal year. As a result, the balance at the end of thisconsolidated fiscal year totaled 128,673 million yen. The following describes the three categories of consolidated
cash positions during this consolidated fiscal year, as well as the factors responsible.
(i) Cash Flows from Operating Activities
Cash flow from operating activities was an inflow of 59,934 million yen (an increase of 59,943 million yen fromthe previous fiscal year). Although inflow was secured by some positive factors such as net profit before income
taxes of 30,783 million yen, depreciation of 6,244 million yen, and an increase in trade payables of 51,410 million
yen, these were somewhat offset by negative factors including an increase in trade receivables of 20,356 million
yen, and income taxes paid of 7,773 million yen.
3

(ii) Cash Flows from Investing Activities
Cash flow from investing activities was an inflow of 9,091 million yen (an increase of 4,775 million yen fromthe previous fiscal year). Although inflow was secured by some positive factors such as proceeds from sale andredemption of investment securities of 13,233 million yen, these were somewhat offset by negative factors
including purchases of property, plant and equipment of 2,505 million yen, and purchases of investment
securities of 2,113 million yen.
(iii) Cash Flows from Financing Activities
Cash flow from financing activities was an outflow of 22,195 million yen (a decrease of 9,135 million yen fromthe previous fiscal year). Positive factor, proceeds from issuance of bonds of 22,110 million yen, was somewhat
offset by negative factors including repayments of long-term borrowings of 9,622 million yen, redemption ofbonds of 20,000 million yen, purchase of treasury shares of 12,002 million yen, and dividends paid of 2,235
million yen.
(Reference) Trends in key indicators of cash flows
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
ended March ended March ended March ended March ended March
31, 2020
31, 2021
31, 2022
31, 2023
31, 2024
Shareholder’s Equity Ratio
34.4
34.7
34.3
34.4
32.2
(%)
Shareholder’s Equity Ratio
23.8
21.0
18.6
23.8
29.6
at Market Value (%)
Ratio of cash flows to
394.5
523.2
259.4
－
53.1
interest-bearing debts (%)
Interest Coverage Ratio
198.2
107.1
209.5
－
961.6
(times)Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio at market value: Total market value of stock / Total assets
Ratio of cash flows to interest-bearing debts: Interest-bearing debts / Cash flows from operating activities
Interest coverage ratio: Cash flows from operating activities / Interest paid
1. All indicators are calculated using consolidated financial data.
2. The total market value of stock is calculated by multiplying the closing price of stock at the end of the fiscal
year by the number of shares outstanding at the end of the fiscal year (after deducting treasury shares).
3. Cash flows from operating activities is the “Cash Flows from Operating Activities” in the Consolidated
Statements of Cash Flows. Interest-bearing debt is all the interest-bearing debts in the Consolidated Balance
Sheets. Interest paid is the interest payments in the Statements of Consolidated Cash Flows.
4. Neither ratio of cash flows to interest-bearing debts of Fiscal year ended March 31, 2023 nor interest
coverage ratio is written due to negative cash flows from operating activities.
(4) Projections for the Next Fiscal YearIn the prescription pharmaceuticals market that the Company is part of, NHI drug price revisions were
implemented in April 2024, lowering drug prices by 4.67% on a drug cost basis. Meanwhile, the businessenvironment remains uncertain owing primarily to the impact on the status of physician visits from the end ofgovernment subsidies for COVID-19 treatment in March 2024, and the impact of the so-called “2024 problem” oflogistics, in which an overtime cap is placed on automobile drivers. In March 2024, the Guidelines for the
Improvement of Commercial Transaction Practices of Ethical Drugs for Manufacturers, Wholesalers, and Medical
Institutions/Pharmacies were revised with the objective of creating an environment for appropriate distribution
transactions by correcting trade practices specific to the industry and filling the excessive gap between NHI prices
and market prices. We are required to make efforts based on the revision.
Under these circumstances, the Company drives the necessary initiatives for continued growth and medium- tolong-term profitability improvement in accordance with the Medium-term Management Plan 2023-2025 “Create
the Next Generation,” which covers three years from the fiscal year ended March 31, 2024. Accordingly, for the
next fiscal year ending March 31, 2025, the Company forecasts net sales of 1,492,000 million yen (an increase of
1.0% year on year), operating profit of 18,200 million yen (a decrease of 5.9% on a year-on-year basis), ordinary
profit of 20,100 million yen (a decrease of 7.7% on a year-on-year basis), and profit attributable to owners ofparent of 12,500 million yen (a decrease of 39.5% on a year-on-year basis).

4

2. State of the Corporate GroupFor the purposes hereof, the Group (TOHO HOLDINGS CO., LTD. and its associated companies) or simply the“Group” consists of TOHO HOLDINGS CO., LTD. or simply the “Company,” 57 subsidiaries, and 11 affiliates.
The Group’s primary business operations and their positions, and their relationships with the segments classified
by types of business operations are described below.
The following 4 divisions are the same as the categories of the segments described in “Segment Information”.
(1) Pharmaceutical Wholesaling Business
The Company’s 4 consolidated subsidiaries (TOHO PHARMACEUTICAL CO., LTD., Kyushu Toho Co., Ltd.,SAYWELL inc., and KOYO Co., Ltd.), 6 unconsolidated subsidiaries and 2 affiliates (SAKAI MEDICINES
CO., LTD and other one affiliate) purchase pharmaceuticals and health-related products, mainly frompharmaceutical manufacturers, for distribution primarily to hospitals, clinics, and dispensing pharmacies.
As for the products purchased from pharmaceutical manufacturers, etc., the consolidated subsidiaries
mentioned above supply these products to 27 subsidiaries (PHARMA DAIWA, J.MIRAIMEDICAL, Shimizu
Pharmacy, PHARMA MIRAI INC., SEIKO MEDICAL BRAIN, Strelitzia, VEGA PHARMA, Cure co., Ltd.,AOBADO, KOSEI, and other 17 subsidiaries) and 3 affiliates.
Toho System Service Co., Ltd. (a consolidated subsidiary) is mainly engaged in mission-critical system
operations such as data processing for the Kyoso Mirai Group (the Company, affiliates which are mainly
engaged in wholesale sales of pharmaceuticals, and companies that have a business tie-up with the Group).
SQUARE･ONE Co., Ltd. (a consolidated subsidiary) is engaged in real estate agency business.
(2) Dispensing Pharmacy Business
The Company’s 10 consolidated subsidiaries (PHARMA DAIWA, J.MIRAIMEDICAL, Shimizu Pharmacy,
PHARMA MIRAI INC., SEIKO MEDICAL BRAIN, Strelitzia, VEGA PHARMA, Cure co., Ltd., AOBADO,
and KOSEI), 17 unconsolidated subsidiaries and 3 affiliates are primarily engaged in health insurance
dispensing pharmacies business.
PharmaCluster Co., Ltd (a consolidated subsidiary) is engaged in the management of the dispensing
pharmacies business.
(3) Pharmaceutical Manufacturing and Sales Business
The Company’s 1 consolidated subsidiary (KYOSOMIRAI PHARMA CO., LTD.) and 2 affiliates (AYUMI
Pharmaceutical Holdings, AYUMI Pharmaceutical Corporation) manufacture and sell pharmaceuticals.
KYOSOMIRAI PHARMA CO., LTD. (a consolidated subsidiary) manufactures and sells generic drugs andproduces injection drugs on consignment. Generic drugs are mainly supplied to TOHO PHARMACEUTICAL
CO., LTD. (our consolidated subsidiary)(4) Other Peripheral Businesses
The Company’s 5 consolidated subsidiaries (Tokyo Research Center of Clinical Pharmacology Co., Ltd.,ALF.Inc, Nextit Research Institute, Inc., eKenkoshop Corporation and K.K.eHealthcare), 11 unconsolidated
subsidiaries and 4 affiliates are engaged in peripheral businesses related to the above businesses.
3. Business Management Policy
Setting “Total Commitment to Good Health” as our corporate slogan and under the mission statement, “Working
in harmony with society and customers, and jointly creating new value through the provision of original services,
thereby contributing to the improvement of medical services for, and health of, people around the world”, theGroup always places ultimate priority on people who wish to be healthy, makes efforts to create customer value inorder to increase customer satisfaction, and aims to improve corporate value and establish a corporate brand in themarket.
Aiming to develop and maintain sustainable social security systems amidst the extending healthy life
expectancy, a super-aging society, and decrease in the total population in Japan, various measures have been
introduced to curb medical costs, including an annual revision of NHI drug prices and charging patients who opt
for brand-name drugs (long-term listed drugs) rather than cheaper generic drugs (selective treatment) an additional
fee. In addition, efforts are being made to promote medical DX and build a Community-based Integrated Care
System in order to ensure that citizens can receive high-quality medical services and care. In recent years, there
have been many new expensive drugs that require strict control, such as gene therapy pharmaceuticals andregenerative medical products, and so the pharmaceutical modality has changed significantly. Accordingly, it has
become necessary to establish sales and logistics systems that can respond to the diversity of pharmaceutical andother products.
As the environment surrounding the medical and pharmaceutical industries is changing at an ever-accelerating
pace as described above, in order to continue to provide added value to medical institutions, people who wish forgood health, and other stakeholders and to remain a company that contributes to society in the next generation andbeyond, we have formulated the Medium-term Management Plan 2023-2025 “Create the Next Generation” withFY2025 as the final year. It sets out the four basic policies: (1) Business transformation, (2) Investment for growthand improvement of profitability, (3) Sustainability management, and (4) Improvement of capital efficiency and5enhancement of shareholder returns, and based on these policies, we are pressing ahead with each measure to
realize the Group’s vision.
In addition, with the aim of achieving stable and long-term corporate growth and a sustainable society, theGroup identifies issues in the areas of the environment, society, governance, and compliance, and promotes
sustainability management to resolve them. As a company responsible for the distribution of pharmaceuticals andother products, we regard coping with both environmental conservation and business activities as our mostimportant issue. Therefore, we have set short-, medium-, and long-term reduction targets for CO2 emissions andare working to improve delivery efficiency, including optimizing the number of deliveries, installing solar panels,
introducing EVs, and switching to electricity plans derived from renewable energy sources.
Based on the belief that employees are the company’s assets, or “human capital,” the Group is, while carefully
passing on its history of growth through human capital and its corporate culture that respects the out-of-boxthinking of employees, committed to utilizing a wide range of human resources regardless of gender, nationality,
age, etc., and to developing human resources through participation in various training programs and projects, aswell as to promoting work-style reforms. We will also foster a free and active corporate culture and maximize
human capital value by respecting the human rights and personality of each employee.
Meanwhile, in order to carry out sound business activities, we will further strengthen governance and all
executives and employees will give top priority to "compliance with relevant laws and regulations" and"compliance and risk management."
In addition, in recognition of its public nature as a medical and health-related company and its mission as asocial infrastructure, the Company will continue to invest in measures against earthquakes and pandemics, andother measures necessary for the stable supply of pharmaceuticals, based on the trust and sympathy of eachstakeholder, in order to sustain the medical care system even in an emergency.
Through the implementation of the above-mentioned measures, we will strive to become a corporate grouprelied upon and continuously supported by all stakeholders including people who wish to be healthy, customers,
local communities, shareholders and employees.
4. Basic Idea for Selection of Accounting Standards
In order to ensure comparability between companies over time, the Group prepares its consolidated financial
statements in accordance with the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated
Financial Statements (excluding Chapters 7 and 8) (Ordinance of the Ministry of Finance No. 28 of 1976).
The Group will appropriately apply international accounting standards, while taking domestic and overseas
situations into account.

65. Consolidated Financial Statements and Main Note
(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Purchase rebates receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Previous fiscal year
(As of March 31, 2023)

7(Unit: million yen)
Current fiscal year
(As of March 31, 2024)

86,201
2,312
314,384
91,217206
13,407
26,166-376
533,519

132,970
2,107
336,618
87,107180
12,171
27,091-359
597,888

36,025279
10,23542,261
999
469
90,27034,612
217
8,857
42,311
1,001
477
87,478

514
4,863
5,377

297
5,339
5,636

72,6042,344
2,102
11,016-1,947
86,120181,768
715,288

70,212
1,882
2,146
9,551
-1,36982,423
175,538
773,427

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Contract liabilities
Accrued expenses
Provision for bonuses
Provision for bonuses for directors
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for loss on guarantees
Deferred tax liabilities for land revaluation
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-salesecurities
Revaluation reserve for land
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

Previous fiscal year
(As of March 31, 2023)

8(Unit: million yen)
Current fiscal year
(As of March 31, 2024)

385,140163
20,003
9,637
590
5,152
259
2,102
3,214
42
40
13,842
440,188

438,072
139
－
413
574
7,429
180
2,851
3,681
43
－
17,921
471,305

－
6,472
1,023
12,434
－
756
2,508
2,747
4,849
1,391
32,183472,372

22,092
6,074
952
11,714
148
753
2,539
2,846
4,849
715
52,684
523,990

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

10,64945,212
209,746-30,907234,701

18,734

18,770-4,276-4,283

14,45814,486146
92242,916715,288

144
104
249,437
773,427

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)
1,392,117(Unit: million yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)
1,476,712

Cost of sales

1,277,750

1,357,564

Gross profit

114,366

119,148

Remuneration, salaries and allowances for
directors

43,16243,369Provision for bonuses

3,159

3,611

Provision for bonuses for directors

42

43Retirement benefit expenses

275

281

Provision for directors' retirement benefits－

108

Welfare expenses

7,806

7,833

Vehicle expenses

1,070

1,017

223

-471

5,767

5,893

294

270

Rent expenses

7,990

8,260

Taxes and dues

2,083

2,206

Non-deductible temporary paid consumption tax
expense

6,330

6,579

Other

19,796

20,812

Total selling, general and administrative expenses

98,00099,817

Operating profit

16,365

19,331

Interest income

58

58

Dividend income

1,269

1,250

Rental income from real estate

833

841

Share of profit of entities accounted for using
equity method

41

164

Other

1,110

912

Total non-operating income

3,312

3,227

Interest expense

72

62

Bond issuance costs－

83

Commitment fees

13

13

Real estate lease expenses

209

202

Provision for loss on guarantees

－

148

Other

206

261

Total non-operating expenses

502

771

19,176

21,787

Net sales

Selling, general and administrative expenses

Provision of allowance for doubtful accounts
Depreciation
Amortization of goodwill

Non-operating income

Non-operating expenses

Ordinary profit
9

(Unit: million yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)

Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)
Extraordinary income
Gain on sales of non-current assets

744

101

Gain on sale of investment securities

3,545

9,699

19

215

4,310

10,016

Loss on disposal of non-current assets

118

195

Impairment losses

165

260

Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
Provision for loss on Antimonopoly Act

334

135

212

413

1,210

－

Loss on premature cancellation

608

－

Other

416

15

Total extraordinary losses

3,066

1,020

Profit before income taxes

20,42030,783

Income taxes - current

7,807

10,922

Income taxes - deferred-1,038-808

Total income taxes

6,769

10,113

Net profit

13,65020,66919

1213,63020,657

Other
Total extraordinary income
Extraordinary losses

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

10

Consolidated Statement of Comprehensive Income
Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)
13,650(Unit: million yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)
20,669-2,1014243-7-2,05735

Comprehensive income

11,592

20,705(breakdown)Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

11,573

20,69319

12Net profit
Other comprehensive income
Valuation difference on available-for-salesecurities
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income11(3) Consolidated Statement of Changes in Equity
Previous fiscal year (From April 1, 2022 to March 31, 2023)(Unit: million yen)
Shareholders’ equity

Share capital
Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Change in scope of consolidation
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

10,649

CapitalsurplusRetainedearnings

49,2280－Treasury shares

180,254-15,719-2,187-2,187

13,63013,630－-169-7,390
2
－

-82

-82
49,146-7,390
2
－
-169
-82

2

－
10,649Total
shareholders’equity224,413

11,277
191,5312-7,388-23,107

3,806
228,219

Accumulated other comprehensive income
Valuation
Total
Share
Nondifference on Revaluation accumulated acquisition controlling Total net
assetsotheravailable-for- reserve forinterests
rightssale
landcomprehensive
securities
incomeBalance at beginning of the period
20,792-4,273
16,518149
199 241,281
Changes during period
Dividends of surplus-2,187
Profit attributable to owners of
13,630parentPurchase of treasury shares-7,390
Disposal of treasury shares
2
Cancellation of treasury shares－
Change in scope of consolidation-169
Purchase of shares of-82
consolidated subsidiaries
Reversal of revaluation reserve2
for landNet changes in items other than
-2,057-2-2,060-2-107-2,171shareholders' equity
Total changes during period-2,057-2-2,060
-2
-107
1,635
Balance at end of period
18,734-4,276
14,458146
92 242,916

12

Current fiscal year (From April 1, 2023 to March 31, 2024)(Unit: million yen)
Shareholders’ equity

Share capital
Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Change in scope of consolidation
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Balance at beginning of period
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares
Change in scope of consolidation
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

10,649

CapitalsurplusRetainedearnings

49,146

7-3,941

Treasury shares

191,531-23,107

Total
shareholders’equity228,219-2,235-2,23520,657

20,657-12,002
29
4,172

-230
17

-12,002
37
－
17

－

－
6

0
10,649-3,93345,212

6

18,215
209,746-7,800-30,907

6,481
234,701

Accumulated other comprehensive income
Valuation
Total
Share
Nondifference on Revaluation accumulated acquisition controlling Total net
assetsotheravailable-for- reserve forrightsinterests
saleland
comprehensive
securities
income18,734-4,276
14,458146
92 242,916-2,23520,657-12,002
37
－
17
－
6
35

-6

28

-2

12

38

35
18,770-6-4,28328
14,486

-2
144

12
104

6,520
249,43713

(4) Consolidated Statement of Cash Flows
Previous fiscal year
(From April 1, 2022 toMarch 31, 2023)(Unit: million yen)
Current fiscal year
(From April 1, 2023 toMarch 31, 2024)

20,420
6,119
165
294

30,783
6,244
260
270

61

29

-37

451

-11

0

181

-594

－

148

-1,32772-1,308
62

-626

94

-2,942-9,563-14,628-10,854-1,963
14,685
1,812-20,356
4,372-791
51,4101,871-1,726

2,847

-573

-840

Subtotal

9,120

65,393

Interest and dividends received
Interest paid
Income taxes paid
Payment for deposit
Others, net

1,334
-71
-8,986-2,554
1,147

1,296
-62
-7,773－1,080-959,934

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in retirement benefit
liability
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for loss on
guarantees
Interest and dividend income
Interest expense
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales and valuation of
investment securities
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, net

Net cash provided by operating activities

14

(Unit: million yen)Previous fiscal year Current fiscal year
(From April 1, 2022 (From April 1, 2023
to March 31, 2023) to March 31, 2024)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of intangible assets
Proceeds from sale of intangible assets
Purchases of investment securities
Proceeds from sales and redemption of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sale of shares of subsidiaries and associates
Payments for acquisition of businesses
Payments for asset retirement obligations
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities-1,124
1,069-1,639
1,807
-880
－
-445
5,866
-45
10
-105
-14
－
331
-513

-1,1471,211-2,505175-1,2762-2,113
13,233
-40
664
－
-338
-8
580
653

4,315

9,091

-93
3,610
-6,395－－-7,390-394-2,1870－-9,622
22,110-20,000-12,002-445-2,235

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Purchases of treasury shares
Repayments of finance lease obligations
Dividends paid
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Net cash provided by (used in) financing activities

-209

－

-13,060-22,195

Net increase (decrease) in cash and cash equivalents-8,754

46,829Cash and cash equivalents at beginning of period

90,014

81,839

146

3

432

－

81,839128,673

Increase in cash and cash equivalents resulting from merger
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period15(5) Notes to Consolidated Financial Statements(Notes Concerning Premise of a Going Business)
This disclosure is 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 from medical
institutions, etc. were recorded as “other” under “non-operating income.” However, effective from the first quarterof the fiscal year under review, such income is now included in “net sales.” The Group established the Mediumterm Management Plan 2023-2025 “Create the Next Generation”, with the fiscal 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 toachieve continuous growth and improve profitability over the medium to long term since April 2023. In thetransformation of pharmaceutical wholesaling business, one of the concrete measures, TOHOPHARMACEUTICAL, a consolidated subsidiary, has made organizational changes to strengthen planning,
promotion, and management of strategies to accelerate income, including revenues from information 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 previous
year have been reclassified. As a result, net sales and operating profit for the previous fiscal year increased by
3,552 million yen compared with those before the reclassification, with net sales and operating profit amounting
to 1,392,117 million yen and 16,365 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“accounts receivable - trade.” As a result, accounts receivable-trade amounted to 314,384 million yen and “other”
under current assets amounted to 26,166 million yen. In addition, commissions received, etc., which were
included in “other income/loss” under “net cash provided by operating activities,” and the amount of commissions
received, etc., which were included in “other,” in the consolidated statements of cash flows for the consolidated
cumulative of the previous fiscal year, are now included in “increase/decrease in trade receivables.” As a result,commissions received, etc. of -3,552 million, which had been included in “other income/loss” under “net cash
provided by operating activities,” and the amount of commissions received, etc. of 3,557 million, which had been
included in “other,” are now reclassified to “increase/decrease in trade receivables” of 5 million. As a result,“increase/decrease in trade receivables,” “other income/loss,” and “other” amounted to -14,628 million yen, -573
million yen, and 1,147 million yen, respectively.
Loss on valuation of shares of subsidiaries and associates included in others under extraordinary loss for thepreceding consolidated fiscal year, has been presented independently, beginning in the consolidated fiscal year
under review because the loss on valuation of investment securities represented more than 10/100 of total
extraordinary loss. Retroactive adjustment has been made to the consolidated financial statements for thepreceding fiscal year in order to reflect the change in the way of presentation.
Accordingly, 212 million yen in others under extraordinary loss has been reclassified in loss on valuation ofshares of subsidiaries and associates on the consolidated financial statements for the prior fiscal year.

16

(Segment Information)
1. Outline of reportable segments(1) Method for determining reportable segment
The reportable segments of the Company are those business units included in the Company for which
separate financial information is available and which are subject to regular review by the Board of Directors sothat it can make decisions about resources to be allocated to them as well as assess their business performance.
The Group has put the pharmaceutical wholesaling and dispensing pharmacies businesses under the controlof respective management companies. Each management company formulates comprehensive domestic
strategies, while operating companies are engaged in actual operations.
Meanwhile, in the pharmaceutical manufacturing and sales business, other peripheral businesses, theCompany and respective operating companies work together in formulating comprehensive domestic strategies
as well as in actual operations.
Accordingly, the Group consists of business segments that are based on sales of prescription pharmaceuticals,
medical care-related products and services, etc. and has four reportable segments, namely Pharmaceutical
Wholesaling, Dispensing Pharmacy, Pharmaceutical Manufacturing and Sales, and Other Peripheral
Businesses.
(2) Types of products and services belonging to each reportable segment
The pharmaceutical wholesaling business sells pharmaceuticals, narcotics, reagents, etc., and medical devices.
The dispensing pharmacy business operates health insurance pharmacy, support home medical care services,and sells pharmaceuticals. The pharmaceutical manufacturing and sales business manufactures and sells
generic drugs, and manufactures injection drugs on consignment. The other peripheral businesses are
peripheral businesses related to the above businesses.
2. The calculation method of net sales, profits or losses, assets and other items by reportable segment
The accounting method used for the reportable segments is generally the same as that used in the preparationof the consolidated financial statements.
Reportable segment profit is based on operating profit. The inter-segment internal net sales or transfers are
based on prevailing market prices.

17

3. Information about sales, profit or loss, asset and other items by reportable segment
Previous fiscal year (from April 1, 2022 to March 31, 2023)(Unit: million yen)

Reportable segments
Other
Pharmaceutical Dispensing Pharmaceutical
Manufacturing
Peripheral
Wholesaling
Pharmacyand Sales
Businesses

Total

Adjustments Consolidated
total(Note 1)
(Note 2)

Net sales(1) Sales to externalcustomers(2) Inter-segment
sales

1,292,688

92,337

2,105

4,985

1,392,117―

1,392,117

47,630

8

7,839

1,650

57,128-57,128―

Total

1,340,318

92,346

9,944

6,635 1,449,246-57,128

1,392,117

Segment profit

13,995

2,431

864

621

17,912-1,547

16,365

Segment assets

562,837

55,845

18,123

5,571

642,378

72,910715,288

Depreciation

3,198

922

187

206

4,515

1,604

6,119

Amortization of
goodwill

55

109

―

129

294

―

294

Impairment losses

24

136

―

4

165

―

165

1,744

―

11,068―12,8120

12,813

165

186

―

161

514

―

514

2,286

584

135

191

3,198

111

3,309

Other items

Investment in an
affiliate accounted
for by the equity
methodUnamortizedbalance of goodwill
Capitalexpenditures(Note) 1. Adjustments comprised the following items:(1) The adjustment amounts of segment profits represented the elimination of inter-segment transactions,
unrealized profit, and corporate expenses not allocated to any reportable segment.
(2) The adjustment amounts of segment assets included 139,174 million yen of the corporate assets thatare not allocated to any business segment, in addition to the elimination of inter-segment transactions.
The corporate assets mainly consist of surplus funds under management (cash and deposits) and longterm investment funds (investment securities and other).
2. The amounts of segment profit were subsequently adjusted with the amount of operating profit in theConsolidated Statements of Income.
3. As described in Change in the Presentation of Consolidated Financial Statements, revenues frominformation 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 previous year have been reclassified. As a result, net sales and segment profit in thepharmaceutical wholesaling business for the previous fiscal year increased by 3,552 million yen
compared with those before the reclassification.

18

Current fiscal year (from April 1, 2023 to March 31, 2024)(Unit: million yen)

Reportable segments
Other
Pharmaceutical Dispensing Pharmaceutical
Manufacturing
Peripheral
Pharmacy
Wholesaling
and Sales
Businesses

Total

Adjustments Consolidated
total(Note 1)
(Note 2)

Net sales(1) Sales to externalcustomers(2) Inter-segment
sales

1,375,794

93,7742,442

4,701 1,476,712

48,693

15

8,151

1,446

Total

1,424,488

93,78910,593

Segment profit

19,453

1,546

755

448

Segment assets

598,277

56,763

19,338Depreciation

3,007

903

Amortization of
goodwill

49

Impairment losses―

1,476,712

58,307-58,307―

6,147 1,535,019-58,307

1,476,712

22,203-2,872

19,331

5,408

679,788

93,638773,427

15

28

3,954

1,938

5,893

91

―

129

270

―

270

46

214

―

―

260

―

260

1,841

―

11,122―

12,964-1

12,963

115

149

―

32

297

―

297

2,209

647

157

224

3,239

923

4,162

Other items

Investment in an
affiliate accounted
for by the equity
methodUnamortizedbalance of goodwill
Capitalexpenditures(Note) 1. Adjustments comprised the following items:(1) The adjustment amounts of segment profits represented the elimination of inter-segment transactions,
unrealized profit, and corporate expenses not allocated to any reportable segment.
(2) The adjustment amounts of segment assets included 182,078 million yen of the corporate assets thatare not allocated to any business segment, in addition to the elimination of inter-segment transactions.
The corporate assets mainly consist of surplus funds under management (cash and deposits) and longterm investment funds (investment securities and other).
2. The amounts of segment profit were subsequently adjusted with the amount of operating profit in theConsolidated Statements of Income.

19

(Amounts per Share)Previous fiscal year

Current fiscal year

(From April 1, 2022 to March 31, 2023)(From April 1, 2023 to March 31, 2024)

3,623.81 yen

3,969.20 yen

Net asset per share
Basic earnings per share

196.70 yen
320.14 yen
Diluted earnings per share180.67 yen
286.79 yen(Note) 1. The basis of the calculation of basic earnings per share and diluted earnings per share after adjustmentson potential shares is as follows:
Previous fiscal year

Current fiscal year

(From April 1, 2022
to March 31, 2023)(From April 1, 2023
to March 31, 2024)

13,63020,657－－

13,63020,657

69,297,318

64,527,150

-13

-14

(-13)

(-14)

6,071,776

7,452,120(71,176)(69,953)(6,000,600)(7,382,167)

Basic earnings per share
Profit attributable to owners of parent (million yen)Amount not attributed to shareholders of commonshare (million yen)
Profit attributable to owners of parent from commonshare (million yen)
Average number of shares of common shareoutstanding during the period
Diluted earnings per share
Adjustment for profit attributable to owners ofparent (million yen)
(Including interest income (after deducting the
portion equivalent to tax) (million yen))
Increase in number of shares of common share(Including share acquisition rights)(Including bonds with share acquisition rights)
Outline of potential shares not included in calculationof diluted earnings per share after adjustments on
potential shares due to no dilution effect－

2. The basis of the calculation of the net asset per share is as follows:
Previous fiscal year

Current fiscal year

(As of March 31, 2023)(As of March 31, 2024)

242,916

249,437

238

248(Including: share acquisition rights) (million yen)

(146)

(144)

(Including: non-controlling interests) (million yen)
Net assets available to owners of parent of commonshare (million yen)
Number of shares of common share for computationof net asset per share

(92)

(104)

242,678

249,188

66,967,560

62,780,488

Total net asset on the Consolidated Balance Sheets(million yen)Amounts deducted from total net assets (million yen)

(Significant Subsequent Events)
Not applicable.

20

6. Unconsolidated Financial Statements(1) Balance Sheets

AssetsCurrent assets
Cash and deposits
Operating accounts receivable
Prepaid expenses
Other accounts receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Structures, net
Furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold interests in land
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Investments in capital of subsidiaries andassociates
Long-term loans receivable
Long-term loans receivable fromsubsidiaries and associates
Distressed receivables
Long-term prepaid expenses
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Previous fiscal year
(As of March 31, 2023)

21(Unit: million yen)
Current fiscal year
(As of March 31, 2024)

74,79620
61
1,731
30,976-5
107,581

121,512
96
30
705
1,952
－
124,298

22,154481
39
19,603260
215
42,754

21,112439
506
19,534426
321
42,340

12
452
202
666

12
1,044
56
1,112

50,77644,261

49,21944,232

1,585

1,585

903

640

1,498

1,282

3,050
131
2,398
-2,154102,450
145,871
253,452

2,860
172
1,667
-1,98399,676
143,130
267,428

Liabilities
Current liabilities
Current portion of bonds payable

Previous fiscal year
(As of March 31, 2023)(Unit: million yen)
Current fiscal year
(As of March 31, 2024)

20,003－Current portion of long-term borrowings

9,240

－

Lease liabilities
Asset retirement obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Provision for bonuses
Provision for bonuses for directors
Other
Total current liabilities
Non-current liabilities
Bonds payable
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land
Provision for retirement benefits
Provision for loss on guarantees
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction entryof landGeneral reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Revaluation reserve for land
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets

74
40
398
59
393
－
55,77956
20
886,076

126
－
277
662
2,500
34
77,53670
22－
81,230－196
11,403
756
11
－
1,932
777
15,076
101,153

22,092
343
10,617
753
10
148
2,009
168
36,144
117,374

10,64910,64946,177
3,933
50,11046,177－
46,177

664

664

1,379

1,356

6,336
87,51095,890-23,147
133,504

6,336
98,193
106,550-30,947
132,429

22,902

21,740-4,25318,649146
152,299
253,452-4,26017,479144
150,054
267,42822

(2) Statements of Income(Unit: million yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)

Previous fiscal year
(From April 1, 2022
to March 31, 2023)
Operating revenue
Consulting fee income
Real estate lease revenue
Dividend income
Other

1,216
4,052
7,290
480

1,336
4,019
6,639
520

Total operating revenue

13,03912,515

3,366

3,690

1,222

1,230

56
20
0
148
2

70
22
-0
163
2

-103

-176

178
330
427
1,564

365
903
512
1,925

7,214

8,708

5,825

3,807

190
1,214
8

169
1,197
10

－

235

395

230

1,809

1,842

Non-operating expenses
Interest expense
Bond issuance costs
Commitment fees
Provision for loss on guarantees
Other

341
－
1
－
30

372
83
1
148
162

Total non-operating expenses

373

766

7,260

4,883

Operating expenses
Real estate related expenses
General and administrative expenses
Remuneration, salaries and allowances for
directors
Provision for bonuses
Provision for bonuses for directors
Provision for retirement benefits
Welfare expenses
Vehicle expenses
Provision of allowance for doubtful
accounts
Depreciation
Rent expenses
Taxes and dues
Other
Total operating expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental income from real estate
Reversal of premature cancellation
settlement fee
OtherTotal non-operating income

Ordinary profit

23

(Unit: million yen)
Current fiscal year
(From April 1, 2023
to March 31, 2024)

Previous fiscal year
(From April 1, 2022
to March 31, 2023)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other

4
4,193
2

18
11,3370

4,200

11,356

23
7
323
608
480

103
12
135
－
11

Total extraordinary loss

1,442

262

Profit before income taxes

10,01815,977

Income taxes-currents
Income taxes-deferred

910
-547

3,158
-299

Total income taxes

362

2,858

9,655

13,118

Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Impairment losses
Loss on valuation of investment securities
Loss on early termination
Other

Net profit24

(3) Statement of Changes in Shareholders’ Equity
Previous fiscal year (From April 1, 2022 to March 31, 2023)

Share capital
Balance at beginning of
periodChanges during period(Unit: million yen)
Shareholders’ equity
Capital surplus
Legal capital
Other capital
Total capitalsurplussurplussurplus10,64946,177

3,933

50,1100

0――Dividends of surplus
Net profit
Reversal of reserve for tax
purpose reduction entry of
land
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

Balance at beginning of
periodChanges during period
Dividends of surplus
Net profit
Reversal of reserve for tax
purpose reduction entry of
land
Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

―

―

0

0

10,64946,177

3,933

50,110Shareholders’ equity
Retained earnings
Other retained earnings
Reserve
for
Legal
Total
Retainedtax
purposeretained
General earnings retained
earnings reduction reserve brought earnings
entry offorward
land
664

1,404

6,336

-24

Total
Treasuryshareholder
shares’s equity

80,01388,418-2,187
9,655-2,187
9,655-2,187
9,655

24

―

―

―

―

2

2

-15,759

133,420-7,3902-7,390
2

―

―
2

―

-24

―

7,496

7,471

-7,388

83

664

1,379

6,336

87,51095,890-23,147

133,50425

Balance at beginning of
periodChanges during period
Dividends of surplus
Net profit
Reversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

Valuation and translation adjustments
Valuation
Total valuationdifference on
Revaluationand translation
available-for- reserve for land
adjustments
sale securities
25,468-4,25021,217(Unit: million yen)Shareacquisitionrights149

Total net
assets154,787-2,187
9,655―-7,3902―
2-2,565-2-2,568-2-2,571-2,56522,902-2-4,253-2,56818,649-2
146-2,487
152,29926

Current fiscal year (From April 1, 2023 to March 31, 2024)

Share capital
Balance at beginning of
periodChanges during period
Dividends of surplus
Net profit
Reversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at the end of
period10,64946,177

3,933

50,1107

7-3,941-3,9410

0-3,933-3,933

10,64946,177

046,177

Legalretainedearnings
Balance at beginning of
periodChanges during period
Dividends of surplus
Net profit
Reversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period(Unit: million yen)
Shareholders’ equity
Capital surplus
Legal capital
Other capital
Total capitalsurplussurplussurplus664

Shareholders’ equity
Retained earnings
Other retained earnings
Total
Reserve forTreasury
Total
Retainedshareholders’
tax purpose
sharesGeneral earnings retained
equityreduction
reserve brought earnings
entry offorward
land
1,379

6,336

-23

87,51095,890-2,235
13,118-2,235
13,118-2,235
13,118

23

―

―

―

664

-23
1,356

―
6,336
27

-230

-230

6

6

10,682 10,659
98,193 106,550-23,147

133,504-12,002-12,002

29

37

4,172

―
6

-7,80030,947-1,074132,429

Balance at beginning of
periodChanges during period
Dividends of surplus
Net profit
Reversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

Valuation and translation adjustments
Valuation
Revaluation Total valuationdifference on
reserve for and translation
available-forland
adjustments
sale securities
22,902-4,25318,649(Unit: million yen)Shareacquisitionrights146

Total net assets

152,299-2,235
13,118―-12,00237―
6-1,162-6-1,169-2-1,171-1,162
21,740-6-4,260-1,16917,479-2
144-2,245150,05428