Medium-term Management Plan 2023-2025
May 17, 2023

What We Aim to Be
Corporate Slogan“Total commitment to good health”＜Mission Statement＞
We shall live in harmony with society and our customers; together, we shallcreate new values through the provision of original service; and we shallcontribute to the medical care and well-being of people around the world.

Our Mission
Providing value through quality
control in pharmaceutical
distribution and customer support
Protecting the environment throughdecarbonization actions and contributing tolocal communities through stable supply ofpharmaceuticals

People whowish to behealthy
Customers

Society

Solving issues to improve medical access

Employees

Shareholders

Maximizing the value ofhuman capital

Improvement of capital efficiency andenhancement of shareholder returns
2Positioning of Medium-term Management Plan 2023-2025 “Create the Next Generation

2025

--

the Foundation for the--2023
3Basic policy and specific measures of the Medium-term Management Plan 2023-2025“Create the Next Generation”

Business transformation

Investment for growth andimprovement of profitability

・ Transformation of Pharmaceutical wholesaling business・ Transformation of Dispensing pharmacy business・ Regional development - Regional healthcare design
・ Cooperative Research Lab with AIST, MAXIS2021

・ Specialty products, Full service
・ Improvement of customer support business・ Building new businesses

Sustainability management

Improvement of capitalefficiency and enhancementof shareholder returns

・Sustainability management of our company
・Maximize the value of human capital・Compliance/ Risk management

・ What the “next generation” should be like・ Specific measures under the Medium-termManagement Plan 2023-2025 ” Create the Next
Generation”
4Game Plans of Medium-term Management Plan 2023-2025 “Create the Next Generation
Total commitment to good healthExpansion ofDX

Investment for
growth andimprovement of
profitability

Businesstransformation
Regional
development

Building newbusinesses

AIST
MAXIS2021

Improvement of customer
support businessSpecialty products,
Full service

Simultaneous
revision of various
systems to start in2024.
Diversification oftreatment
modalities

Expansion of
Medical DX

Alliance

Transformation of Dispensing
pharmacy businessMaximize the valueof human capital

Transformation of
Pharmaceuticalwholesaling business

Compliance
Sustainability
management
Capital policy

Low
PBR
Work-stylereforms

Promotion ofmeasures to cut
medical expenses
Shrinkingworkforce

5１.Business transformation① Transformation of Pharmaceutical wholesalingand Dispensing pharmacy business② Regional development - Regional healthcare
design③ Cooperative Research Lab with AIST, MAXIS2021

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1-① Transformation of Pharmaceutical wholesaling and Dispensing pharmacy businessTransformation ofPharmaceutical wholesaling businessRestructuring of organization, strengthening
human resources and improving productivity
toward realization of the “Next Generation”.

＋sales

New roles,
jobs andwork styles

delivery【Restructuring of organizationRole clarification Unification of pharmaceuticals】

Organizational restructuring and clarification of roles andfunctions in the concept area (secondary medical care area)【Unification of pharmaceuticals andreagents】
Integration and reform of sales,
distribution, logistics, and office work

【Consolidation of sales bases】

Development of an optimal officestructure based on local conditions andthe age of buildings【Utilization of human resources】
Use of senior employees and mid-career
hiring of outstanding human resources【Work-style reforms】

Direct return, remote sales, etc. *Development of core internal systems【Digitalization】

Use of technologies such as VR andmetaverse【Nurturing】

Promotion of reskilling
Enhancement of training by job typeand level

Transformation ofDispensing pharmacy business
Organizational and functionaltransformation to respond to digitalizationand contribute to home healthcare.
Consolidated
Subsidiaries

Non-Consolidated
Subsidiaries

Affiliates
Companies

2148

Total

TOHO HOLDINGS

4

PharmaCluster

613218

Total

1021432【Restructuring business companies】※As of March 31, 2023

Enhancement of functions throughconcentration of management functions andsystem integration of operating companies【在宅調剤】【Store revenue management】

Promotion of opened new pharmacies
while closing existing ones with anemphasis on profitability

個人在宅への【Utilization and nurturing of
human resources】

Development of business structure andhuman resources which accelerate theshift to "in person / at home"【DX in pharmacy】

Responding to electronic prescriptions andonline medication instruction (including Last
One Mile), promoting efficiency in pharmacy
operations【Expansion of non-insurance revenue】
Commitment to EC
PB product development of OTC drugs, etc.

【Home patient visit】

Strengthening care services forpatients at home7

1-② Regional revitalization ～ Regional Healthcare Design～
remote island
remote area
Joint delivery
Sharedwarehouse

ClinicHomeHomeclinical trial

Home medicalcare and multiprofessional
collaboration
supportNursing
homeENIFme
Home medical care
and appropriate
distribution

Designing
healthcare foreach region
pre-symptomatic
disease, andprevention of disease

ENI-pharmacy
Pharmacy

Visiting Nursing
pharmacy
Visiting Nursing
stationKyoso Mirai Groupin Pharmacy

Visualization of medical functions
Streamlining of regional cooperation

Strengthening theinformation provision base

Online pharmacy

Joint logistics
for medical andnursing care

Pharmaceutical Association
Pharmacy collaboration tosupport patients

Appropriate Stock
Stable supply
Evolution ofdistribution
Support for community
Regional Distributionand backyard functions

Pharmacy

Restructuring oforganization

Clinicallaboratory
MedicalAssociation

Healthcheckup/healthmanagement

PharmaceuticalAssociation

Regional Formulary
Regional joint procurementof pharmaceuticals

Regional analysis
Understanding the region

5 Diseases 6 Businesses + Home Medical Care
8th Medical Care Plan
Phase 4 Medical Care Optimization Plan

HospitalSpecialist and nonspecialist
collaborative support

Rare diseases
Discovery of potential
patients, etc.
Quality of life
improvements…
Pharmaceuticalmanufacturescompany

Evolution ofsales

ClinicArea realignment
Area design for QOL
improvement[Backup system] Large-scale distribution center (TBC), Pharmacy For Pharmacy
Consultation
when getting
sickFinding
hospitals
Byouin-Navi

Reservation/
Medicalinterview
Initial Examination
Reservation ServiceConsultation
KAITOS

Send aprescription

Receipt ofprescriptions

Response of electronic prescription

Localgovernments

Health care

Work style reformfor doctors

Design to optimize
healthcare delivery
systems

Cooperation withlocal governments

outpatient
examination

ClinicMizar
Inventory
cooperation
Visualization ofinventory

Smartphone
Wearable
Individual Number Card
Mynaportal
Prevention
Health Apps
Life Log

Pharmacy

Mutual coordinationof OTC andprescription
pharmaceuticals

Regional DX JointProjectCitizensPromotion of selfmedication

Pharmacy

Information linkage
infrastructure
Functional provision base
Regional distribution
centerPharmaCluster

Information provision

Company

Medicine notebook
PHR

Byouin-Navi

Online medical examination/
dosing guidance system "KAITOS"

Prevention of
duplicate dosing,interaction, etc.

Medicine delivery

Customer support systems connect
Healthmanagement

Send electronicprescription

Initial Examination
Reservation ServiceMedication follow-up
Healthcare support

Home
medicalsupport
clinicHome
medicalsupport
clinicElectronic prescription
transmission

Medicine notebook
PHR

Hospital

Patients

Hospital

Online medical examination/
dosing guidance system "KAITOS"Multi-professional
joint activities

Strengthening of home
medical care cooperation

Small area: Secondary medical care area

Mobility
Measures for
reduction ofovertime

pre-symptomatic
disease, andprevention of disease

Medium area: Tertiary medical care area

MedicalMaaS

Home

Collaboration
meetings

Wide Area: All over Japan

telemedicine
support【Healthcare design activity】

Reorganize into an organization thatenables activities based on the concept
area (secondary medical area), identify
the actual situation and issues of the area,and integrate medical DX centered on thelogistics system from wide to narrowareas and the customer support system.
We will plan, design, and implement thebest solutions to problems, support asystem that provides medical careanytime, anywhere, and improve the QOLof people who wish good health.

8

Dispensing

Dosing
Guidance

Medicine
notebook

DeliveryDosingfollow-up

Back upKAITOSElectronic medicine
notebook

Externalcollaboration

Healthcare support8

1-③ Cooperative Research Lab with AIST, MAXIS2021
Create the future together through open innovation
Cooperative Research Lab with AIST
Kyoso Mirai group
Knowledge of the medicalindustry
Know-how cultivated（ logistics functions, customer
support systems and others）

AIST
solve issues
related to accessto medical care

Advanced development
capabilities
the Cutting-edge
technologies

Period：April 1, 2023 to March 31, 2026

Create the future through Groupwide efforts

Implementationof new
technologies,
systems andservices in society

Developmentof human
resources

Create theNext
Generation

MAXIS2021

Internal reform project "MAXIS2021" to ensure sustainablegrowth and remain a company that is needed by society

1 Internal

operationwork

2

Sales

3

Logistics

4 Customer
support5Others

Implementationof internalreforms

9２.Investment for growth andimprovement of profitability① Specialty products, Full service② Improvement of customer support business③ Building new businesses

102-① Specialty products, Full service
Able to meet the diverse needs of manufacturers (BPO (development / manufacturing outsourcing), etc.)
Orphan Trust Japan Co., Ltd.
TORUS（Toho Orphan Reliance US）
Affiliated venture capital

New compound andtechnology access andevaluation
Considering partnerships

Establish a “Full service”

Centralized
management
systemrefrigerated
goods

Clinical trial
logistics

ultra-lowtemperature

The Constant-Temperature Transportation Device“SALM Solution System”

Delivery・Temperature
control

TBC DynaBASE
KYOSOMIRAI PHARMA CO., LTD.
Orphan Trust Japan Co., Ltd.

Online dosing
follow-up【medical institutions】【patients】【medical institutions】

Domestic CDMO*business

Warehouse of pharmaceuticalmanufacturer
Warehouse of pharmaceuticalwholesaler

Online medical examination/
dosing guidance system "KAITOS"

Last mile
Promotion
K.K.eHealthcare（discovery of potential patients, etc.）
enTouch K.K.（remote detailing）
KYOSOMIRAI PHARMA CO., LTD.（co-promotion）*contract developing and manufacturing organization

Proactivealliance112-② Improvement of customer support business

Further evolution

Introduction of cuttingedge technologies (AI, etc.)
through active alliancesof customer support
business (Our property)
2019“Mizar”
2019“Future ENIF”

2021“KAITOS”

2012“Initial Examination2011 Reservation Service”“eKenkoshop”

Integration with in-housedeveloped know-how(voice recognitiontechnology, etc.)

2009“Byouin-Navi”

2009“ENIF voice”

1997“ENIF”
1995“LXMATE”

1986年“Inventory
Management System”

2000“LXMATE HeLios”

・Extensive lineup
・Operating companies responsible fordevelopment within the Group・Ability to make proposals that meetneeds and follow-up systems
・Track record of doing business across Japan（medical institutions, patients）

Furtherenhancement of theCompany's strengths
122-③ Building new businesses
We will build new businesses by proactively investing in areas and products related to
medical care that are expected to grow.

Specialty

Health,pre-symptomatic
disease, andprevention ofdisease

Biomedical products
Regenerative medical products

Reagents
Medical Equipment
Companion
diagnostics, etc.

Digital diagnostics
Digital therapeutics(DTx)

Pharmaceuticalwholesaling
business
Pharmaceuticalmanufacturing
and salesbusiness

Dispensing
pharmacybusiness

Customer
supportbusiness
EC MarketsGlobal Markets
13

３.Sustainability management① Sustainability management of our company② Maximize the value of human capital③ Compliance/ Risk management143-① Sustainability management of our company
Sustainability Policy of TOHO HOLDINGS
Based on the Mission Statement, we, as a corporate group engaged in the areas of medical care, healthcare, and nursing
care, work to solve social issues and contribute to the realization of a sustainable society through our businesses.
The Sustainability Promotion Committee was established to further promote sustainable growth and solve social issues.
Efforts todecarbonization(Solar panels)(Storage battery)(Electric vehicle (EV))

Efficientdeliveries

Environment

SocialPaperlessCoexistence with society
Human capital/
Health management

Governance(Planned delivery)(Joint distribution)

Stable supply/BCP

Internal Control
System/ transparency

Compliance15

3-② Maximize the value of human capital-- Human resources needed by the Kyoso Mirai Group -・A person who has a high sense of ethics and always follows code of conduct
・A person who thinks and learns by themselves and tries with free thinking new things without fear of failure
・A person who can make high-quality proposals and communicate well with others
・A person who can collaborate with business partners and other departments in the company
・A person who can work globally

Humanresources
Training••••

Enhanced training by rank and jobclassification
Providing opportunities to take onchallenges
Reskilling and assistance in obtaining
personal qualifications
Development of professionals

Developmentof thepersonnelsystem•••

Diversity & Inclusion→ Recruitment and utilization of a wide
range of human resources(Recruitment and utilization of a wide range ofhuman resources regardless of gender, nationality,etc. , Utilization of seniors, Mid-career recruitmentof excellent human resources etc.)

Strengthen career development
Staffing with the right people in the rightplaces

Workstylereforms•••

Going paperless and outsourcing ofroutine work through DX promotion
Enhancement of work styles andsystems to accommodate employees'
life events
Further improvement of the workplaceenvironment16

3-③ Compliance/Risk management
Top priority for all directors and employees is commitment to“compliance with a related law” and “compliance/risk management”.
Compliance with an important related law
重要関連法規の遵守Pharmaceutical and Medical Devices Act, Pharmacists Act, Antimonopoly Act,Act on Unjustifiable Premiums and Misleading Representations
Enhancement of Group compliance training「グループコンプライアンス研修」の強化
Management of all employees' participation and degree of mastery by using
the in-house training system
Development of whistle-blowing system and corporate culture
内部通報制度と企業風土の醸成
Fostering a corporate culture that prevents harassment and allows employees to givewarnings to their co-workers
Governance and risk management through the Group Compliance and Risk
Management Committee17４. Improvement of Capital Efficiency andEnhancement of Shareholder Returns① What the “Next Generation” should be like② Specific measures under the Medium-termManagement Plan 2023-2025 “Create the NextGeneration”

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4. Improvement of Capital Efficiency and Enhancement of Shareholder Returns| What the “Next Generation” should be like
1.
2.
3.

Price Book-value Ratio （PBR） ：1.0 times or higher (0.65 times in FY 2023)
Return On Equity（ROE）：More than 8% (5.6% in FY 2023)
Dividend on Equity Ratio（DOE）：More than 2% (0.9% in FY 2023)| Specific measures under the Medium-term Management Plan 2023-2025“Create the Next Generation”
1) Investment Plan： 38 billion yen

3) Dividends- Investment in growth fields ：20 billion yen- Investment in infrastructure ：12 billion yen- Investment in human capital： 6 billion yen

We will increase dividends stably with a target of a
DOE (dividend on equity) of 2%.

2) Purchase of treasury shares：More than 30 billion yen

We will purchase treasury shares flexibly taking
capital efficiency into consideration.

4) Cross-shareholdings
We will unwind cross-shareholdings in a phasedmanner through sufficient dialogue with thepartner companies.
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