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 Six Months Ended September 30, 2023
(Under Japanese GAAP)

November 10, 2023

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:
November 14, 2023
Scheduled date to commence dividend payments:
December 1, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly 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 six months ended September 30, 2023
(from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)
Net sales
Six months ended

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

734,846

7.8

6,492

11.3

7,945

7.5

8,782

144.1

September 30, 2022
681,470
─
5,835
─
7,392
53.9
Note: Comprehensive income For the six months ended September 30, 2023: ¥9,246 million [63.5%]
For the six months ended September 30, 2022: ¥5,656 million [37.3%]

3,598

10.0

September 30, 2023

Basic earnings
per share
Six months ended
September 30, 2023%

Diluted earnings
per share
Yen

Yen

134.19121.19September 30, 2022
51.01
46.88
（Note: 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 first half of the fiscal year ended March 31, 2023 are shown after the retrospective reclassification, andpercentage changes are not shown. Net sales and operating profit for the first half of the fiscal year ended March 31, 2023 before thereclassification were 679,719 million yen and 4,084 million yen, respectively.

(2) Consolidated financial position
Total assets
As of
September 30, 2023
March 31, 2023
Reference: Equity

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

801,379

245,14230.6

715,288242,916
As of September 30, 2023: ¥244,899 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
─
18.00
36.00
(Forecast)
Note: Revision to the forecast of cash dividends most recently announced: None
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
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen

Full year％

1,325,000 -4.8

Millions of yen％

Millions of yen

11,500 -29.7％

13,800 -28.0

Millions of yen

12,300

％

-9.8

Yen

190.65

Note: 1. Revision of consolidated projected results of operations most recently announced: None
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 September 30, 2023
As of March 31, 2023(ii) Number of treasury shares at the end of the period
As of September 30, 2023
As of March 31, 2022

78,270,142 shares
78,270,142 shares

13,649,592 shares
11,302,582 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Six months ended September 30, 2023
Six months ended September 30, 2022

65,448,433 shares
70,540,556 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 4 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 Six Months Ended September 30, 2023 ··········· 2(1) Explanation of Management Results ··········································································· 2(2) Explanation of Financial Position ··············································································· 4(3) Explanation of Projections of Consolidated Operating Results for
Fiscal Year ending March 31, 2024 ············································································ 4
2. Quarterly Consolidated Financial Statements and Main Notes ················································ 5(1) Quarterly Consolidated Balance Sheets ········································································ 5(2) Quarterly Consolidated Profit and Loss Statement and Quarterly Consolidated Statements ofComprehensive Income ·························································································· 7(3) Quarterly Consolidated Statements of Cash Flows ··························································· 10(4) Notes Concerning Quarterly Consolidated Financial Statements··········································· 12(Notes Concerning Premise of a Going Business) ···························································· 12(Notes Concerning Material Changes in Shareholders’ Equity) ············································ 12(Change in Presentation of Consolidated Financial Statements) ··········································· 12(Segmental Information) ························································································· 13-1-1. Qualitative Information on Financial Results for the Six Months Ended September 30, 2023
(1) Explanation of Management Results
In the first half under review, the prescription pharmaceuticals market continued to be affected by measures tocurtail medical expenses, such as the interim-period NHI drug price revisions in April 2023. Regarding the supply
status of prescription pharmaceuticals, we continue to adjust shipments mainly for antipyretic analgesics andgeneric drugs. In addition, while the reclassification of COVID-19 as a Class V infectious disease has led to thenormalization of socioeconomic activities, the influenza epidemic has occurred earlier than usual and the spreadof COVID-19 has occurred again, and the market remains uncertain.
Under these circumstances, in May of this year, the Group announced the Medium-term Management Plan 20232025 “Create the Next Generation,” which covers three years from the fiscal year ending March 31, 2024. As acorporate group engaged in the areas of medical care, healthcare, and nursing care, we believe that the mission of
the Group is to provide added value to medical institutions, patients, and other stakeholders and to contribute tosociety for the current and next generations. With a view to creating a foundation for steadily carrying out themission in the course of implementing the new Medium-term Management Plan, we have implemented concretemeasures speedily through active alliances, the introduction of DX, etc. based on 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.
In the area of business transformation, in July, TOHO PHARMACEUTICAL CO., LTD., a consolidated subsidiaryof TOHO HOLDINGS CO., LTD., made substantial organizational changes mainly in the sales department, inorder to transformation of pharmaceutical wholesaling business, which is one of the concrete measures, andreorganized into an organization based on secondary medical care areas to promote community-based initiatives.
We are also promoting the unification of pharmaceuticals and reagents, consolidation of sales bases, andstreamlining of sales and delivery by clarifying the roles of MS/EMS.
In addition, through active alliances, we are promoting the introduction of cutting-edge technologies andintegration with various functions, including our company’s unique customer support systems. We established ajoint research laboratory with the National Institute of Advanced Industrial Science and Technology (AIST) in
April this year, and eight researchers on loan from the Group and 16 in-house researchers are conducting joint
research to solve issues related to medical access and to implement new technologies, systems, and services insociety. In September of this year, we entered into a capital and business alliance with MICIN Inc., which operates
an online medical business and a clinical development digital solutions business. This capital and business allianceis expected to generate synergies between the Group’s pharmaceutical wholesaling, dispensing pharmacy, customer
support systems, and other businesses and MICIN’s businesses, and will contribute to solving various issues in thehealthcare field and enhance corporate value over the medium to long term. In addition, the Study Group for
Establishment of BCP System, which was established with the participation of pharmaceutical companies, hascompiled a "Proposal for Business Continuity Plan in the Supply of Pharmaceuticals." Furthermore, we conduct a
joint disaster drill with the Japan Ground Self-Defense Force in anticipation of a massive earthquake in the Nankai
Trough, among other efforts to establish a business continuity plan for the entire supply chain.
The Company’s consolidated operating results for the six months ended September 30, 2023 recorded 734,846
million yen for net sales (an increase of 7.8% on a year-on-year basis), 6,492 million yen for operating profit (anincrease of 11.3% on a year-on-year basis), 7,495 million yen for ordinary profit (an increase of 7.5% on a yearon-year basis), and 8,782 million yen for profit attributable to owners of parent (an increase of 144.1% 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 the pharmaceutical wholesaling business, we initially expected a significant decline in sales of COVID-19related products, but sales of therapeutic drugs expanded owing to the spread of the so-called ninth wave of COVID19, and greatly exceeded our initial plan.
In addition, the growth in the market for new drugs, including cancer drugs and the steady expand in sales oflimited-handling products for selected wholesalers, such as specialty pharmaceuticals, contributed to total sales. In
price negotiations with medical institutions, we continued to strive to negotiate unit prices for individual products,
commensurate with individual product values and distribution costs, in order to promote distribution improvement.
As for the customer support systems, the introduction of ENIFvoiceSP and the switch from ENIF to Future ENIF
contributed to profit growth.
As a result, the pharmaceutical wholesaling business posted net sales of 709,414 million yen (an increase of 8.0%
on a year-on-year basis) and segment profit (operating profit) of 6,811 million yen (an increase of 34.0% on a yearon-year basis) for the six months ended September 30, 2023 under review.
In the Dispensing Pharmacy Business, we are promoting the opening and closing of pharmacies with an emphasis-2-

on profitability. In addition, we have developed a portal application, Kyoso Mirai Pharmacy Health Navi, which
includes a function for sending prescriptions and an electronic medicine notebook, to promote digitalization. In
addition, we worked to strengthen cooperation with home medical clinics in order to promote transformation tocontribute to home medical care. Although the performance in the second quarter was affected by the terminationof the transitional measures for the Additional Fee for Community Support System on technical fees, owing to anincrease in the number of prescriptions as a result of a recovery in patients’ reluctance to receive medical care, net
sales were 46,598 million yen (an increase of 3.3% year on year) and segment profit (operating profit) was 895
million yen (an increase of 1.9% year on year).
In the pharmaceutical manufacturing and sales business, the Group has been engaged in the stable supply of highquality and high value-added pharmaceuticals by strictly monitoring the quality of products based on its own
verification system and establishing a planned production system, resulting in net sales of 5,164 million yen (anincrease of 6.7% on a year-on-year basis.) and segment profit (operating profit) of 436 million yen (a decrease of
8.6% on a year-on-year basis.).
In the other peripheral businesses, net sales amounted to 2,978 million yen (a decrease of 10.0% on a year-on-yearbasis.) and segment profit (operating profit) was 139 million yen (a decrease of 43.1% on a year-on-year basis.).
(Note) Segment sales include inter-segment transactions.

-3-(2) Explanation of Financial Position(Assets)
Current assets increased 16.3% from the end of the previous consolidated fiscal year to 620,393 million yen withan increase in cash and deposits of 51,652 million yen, an increase in notes and accounts receivable-trade of 38,349
million yen, and a decrease in merchandise and finished goods of 2,975 million yen in other.
Non-current assets decreased 0.4% from the end of the previous consolidated fiscal year to 180,986 million yen
with a decrease in property, plant and equipment of 1,651 million yen in other.
As a result, consolidated net assets increased 12.0% from the end of the previous consolidated fiscal year, to801,379 million yen.
(Liabilities)
Current liabilities increased 14.2% from the end of the previous consolidated fiscal year to 502,754 million yen
with an increase in notes and accounts payable-trade of 80,543 million yen, a decrease in current portion of bonds
payable of 20,003 million yen in other.
Non-current liabilities increased 66.2% from the end of the previous consolidated fiscal year to 53,483 million
yen with an increase in bonds payable of 22,103 million yen in other.
As a result, total liabilities increased 17.8% from the end of the previous consolidated fiscal year, to 556,237
million yen.
(Net assets)
Total net assets increased 0.9% from the end of the previous consolidated fiscal year to 245,142 million yen withan increase in retained earnings of 7,734 million yen, and an increase in treasury shares of 5,971 million yen inother.
(Analysis of the Cash Flow Position)
Cash and cash equivalents (hereinafter referred to as “cash”) during this consolidated first half increased 51,676
million yen from the end of the previous consolidated fiscal year. As a result, the balance at the end of this first half
was 133,516 million yen (an increase of 35,660 million yen on a year-on-year basis). The following describes thethree categories of consolidated cash positions during this consolidated first half, as well as the factors responsible.
(Cash Flows from Operating Activities)
Cash flow from operating activities was an inflow of 53,933 million yen (an increase of 43,240 million yen on a yearon-year basis). Although inflow was secured by some positive factors such as income before income taxes of 13,029
million yen, depreciation of 3,098 million yen, a decrease in inventories of 3,237 million yen, and an increase innotes and accounts payable-trade of 79,022 million yen, these were somewhat offset by negative factors including an
increase in notes and accounts receivable-trade of 36,996 million yen, and income taxes paid of 4,765 million yen inother.
(Cash Flows from Investing Activities)
Cash flow from investing activities was an inflow of 3,515 million yen (an increase of 3,923 million yen from theprevious fiscal year). Although inflow was secured by some positive factors such as proceeds from sales andredemption of investment securities of 6,977 million yen, these were somewhat offset by negative factors including inpurchase of property, plant and equipment of 966 million yen, purchase of intangible assets of 792 million yen andpurchase of investment securities of 1,955 million yen in other.
(Cash Flows from Financing Activities)
Cash flow from financing activities was an outflow of 5,775 million yen (a decrease of 2,814 million yen on a yearon-year basis). Although inflow was secured by some positive factors such as proceeds from issuance of bonds of
22,110 million yen, these were somewhat offset by negative factors including in repayment of long-term loans
borrowings of 1,335 million yen, and redemption of bonds of 20,000 million yen, purchase of treasury shares of
6,001 million yen in other.
(3) Explanation of Projections of Consolidated Operating Results for Fiscal Year ending March 31, 2024
There are no changes in the projected consolidated results of the full-term of the fiscal year ending March 31, 2024
published on May 12, 2023.

-4-

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

As of March 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
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-5-

As of September 30, 2023

86,201
316,696
91,217
206
39,573-376
533,519

137,854355,045
88,242
181
39,463-392
620,393

90,27088,619

514
4,863
5,377

379
5,199
5,578

88,067-1,947
86,120181,768
715,288

88,733-1,94586,787
180,986
801,379

(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
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-salesecurities
Revaluation reserve for land
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

As of September 30, 2023

385,140
9,800
20,003
5,152
3,214
42
40
16,794440,188465,684
8,641
－
4,668
3,368
21
201
20,168502,754

－
6,472
2,508
2,747
4,849
15,60532,183472,372

22,103
6,284
2,523
2,649
4,849
15,07353,483556,237

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

10,64949,154
199,266-29,079
229,990

18,73419,192-4,276
14,458146
92242,916715,288-4,283
14,909144
98245,142801,379

(2) Quarterly Consolidated Profit and Loss Statement and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Profit and Loss Statement[Six months ended September 30, 2023](Unit: million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Remuneration, salaries and allowances for
directors
Provision for bonuses
Provision for bonuses for directors
Retirement benefit expenses
Welfare expenses
Vehicle expenses
Provision of allowance for doubtful accounts
Depreciation
Amortization of goodwill
Rent expenses
Taxes and dues
Non-deductible temporary paid
consumption tax expense
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Rental income from real estate
Other
Total non-operating income
Non-operating expenses
Interest expenses
Bond issuance costs
Real estate lease expenses
Other
Total non-operating expenses
Ordinary profit

Six months ended
September 30, 2022
681,470
626,81254,658Six months ended
September 30, 2023
734,846678,21056,635

20,136

20,131

3,314
21
143
3,871
562
-83
2,746
149
3,997
1,039

3,296
21
146
3,845
523
14
2,934
134
4,238
1,093

3,153

3,326

9,770

10,434

48,82350,142

5,835

6,492

29
745

27
677

71

335

416
552
1,815

418
302
1,761

39
－
111
106
257
7,392

31
83
88
105
308
7,945

-7-

(Unit: million yen)Six months ended
September 30, 2022
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Provision for loss on Antimonopoly Act
Other
Total extraordinary losses
Profit before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net profit
Profit attributable to non-controlling interests
Profit attributable to owners of parent-8-

Six months ended
September 30, 2023
109
20
19
149

18
5,133
0
5,152

74
26
1,400
28
1,529
6,012
2,801
-399
2,401
3,611
12
3,598

48
－
－
20
68
13,0295,280-1,039
4,241
8,788
6
8,782

Quarterly Consolidated Statements of Comprehensive Income[Six months ended September 30, 2023](Unit: million yen)Six months ended
September 30, 2022
Net profit
Other comprehensive income
Valuation difference on available-for-salesecurities
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income

Six months ended
September 30, 2023

3,611

8,788

2,005

439

40

17

2,045

457

5,656

9,246

5,643

9,240

12

6

Comprehensive income attributable to:Comprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests-9-(3) Quarterly Consolidated Statements of Cash Flows(Unit: million yen)Six months ended
September 30, 2023

Six months ended
September 30, 2022
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 (and other officers)

6,012
2,919
26
149

13,029
3,098

27

12

121

138

-32

-20

Increase (decrease) in allowance for
doubtful accounts

-98

14

Interest and dividend income

-774

-704

39

31

-35

29

-7

-5,127-24,120-1,891-3,22036,716
2,248-36,996
3,237-1,07379,022
1,901-1,384

1,552-854
15,842777-36-6,348458-728
57,553700-31-4,765477

10,69353,933

Interest expense
Loss (gain) on sale 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 loss (gain)
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Other
Net cash provided by (used in) operating
activities- 10 -－

134

(Unit: million yen)Six months ended
September 30, 2023

Six months ended
September 30, 2022
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales and redemption of
investment securities
Purchase of shares of subsidiaries andassociates
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
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of bonds
Redemption of bonds
Purchase of treasury shares
Repayments of finance lease liabilities
Dividends paid
Cash flows from financing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodIncrease in cash and cash equivalents resulting
from merger
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at the end of period

-668
641
-502

-697
721
-966

679

91

-431
-189

-792
-1,955

52

6,977

-254

-40

10

－

-105
-4
－
205
159
-407

－

-8
-7
195
-2
3,515

-242

721

3,610
-5,044-0-226-1,058-2,9607,324

51,67290,014

81,839

83

3

432

－

97,855133,516－－- 11 -－-1,335
22,110-20,000-6,001-198-1,071
5,775

(3) Notes Concerning Quarterly Consolidated Financial Statements(Notes Concerning Premise of a Going Business)
Not applicable.
(Notes Concerning Material Changes in Shareholders’ Equity)
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 fromthe first 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”, withthe 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 to achieve continuous growth and improve profitability over the
medium to long term since April 2023. In the transformation of pharmaceutical wholesaling business, one of
the concrete measures, TOHO PHARMACEUTICAL, a consolidated subsidiary, has made organizationalchanges 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 first half ofthe previous year have been reclassified. As a result, net sales and operating profit for the first half of theprevious fiscal year increased by 1,751 million yen compared with those before the reclassification, with net
sales and operating profit amounting to 681,470 million yen and 5,835 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. 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 quarterly consolidated statements of cash flows for the consolidated cumulative second quarter of theprevious fiscal year, are now included in “increase/decrease in trade receivables.” As a result, commissions
received, etc. of -1,751 million, which had been included in “other income/loss” under “net cash provided byoperating activities,” and the amount of commissions received, etc. of 1,701 million, which had been included
in “other,” are now reclassified to “increase/decrease in trade receivables” of -49 million. As a result,“increase/decrease in trade receivables,” “other income/loss,” and “other” amounted to -24,120 million yen, 854 million yen, and 458 million yen, respectively.

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(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 first half of the previous
year have been reclassified. As a result, net sales and segment profit in the pharmaceutical wholesaling businessfor the first half of the previous fiscal year increased by 1,751 million yen compared with those before thereclassification.
Ⅰ Six months ended September 30, 2022
1. Information about sales and profit by reportable segment
Reportable segments

Amount on thequarterly
Adjustments consolidated
Pharmaceutical
Other
Pharmaceutical 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(2) Inter-segment
sales

632,760

45,085

1,097

2,527

681,470－

681,470

23,810

3

3,741

782

28,338-28,338－

Total

656,571

45,089

4,838

3,309

709,809-28,338

681,470

Segment profit

5,082

878

478

246

6,685

-850

5,835

（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 noncurrent assets or goodwill by each business segment
Not applicable.
Ⅱ Six months ended September 30, 2023
1. Information about sales and profit by reportable segment
Reportable segments

Amount on thequarterly
Adjustments consolidated
Pharmaceutical
Other
Pharmaceutical 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(2) Inter-segment
sales

684,777

46,590

1,178

2,300

734,846－734,846

24,636

7

3,985

678

29,308-29,308－

Total

709,414

46,598

5,164

2,978

764,154-29,308

734,846

Segment profit

6,811

895

436

139

8,283

-1,791

6,492（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 noncurrent assets or goodwill by each business segment
Not applicable.
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