May 12, 2023
To whom it may concern:
Company Name
Corporate
RepresentativeContact:

TOHO HOLDINGS CO., LTD.
Atsushi Udoh, Representative Director,CEO(Prime Market of Tokyo Stock Exchange
Securities Code: 8129)
Makoto Kawamura, Corporate Officer
and General Manager, Corporate
Communications and Investor
Relations Division(TEL: 81-3-6838-2803)

Notice Regarding formulation the Medium-term Management Plan 2023-2025 “Create the Next Generation”
TOHO HOLDINGS CO., LTD. hereby announces that it has formulated the Medium-term Management Plan 20232025 “Create the Next Generation” (hereinafter ”Medium-term Management Plan 2023-2025”) for the three-year
period from the fiscal year ending March 31, 2024 to the fiscal year ending March 31, 2026 as follows.
1. Purpose of Formulating the Medium-term Management Plan
Under the corporate slogan, "Total commitment to good health," and the Mission Statement, "We shall live inharmony with society and our customers; together, we shall create new values through the provision of original service;
and we shall contribute to the medical care and well-being of people around the world," the Group always puts people
who wish to be healthy first. In a bid to enhance such people’s satisfaction, the Group strives to establish businessmodels based on value-added proposals and create customer value, thereby aiming to boost its corporate value andestablish its corporate brand over the medium to long term through sustainable growth.
Looking ahead to social issues such as the declining birthrate, aging population, and shrinking workforce, known
as the "2025 problem" or "2030 problem," the market environment surrounding us is expected to change at an everincreasing pace, including the construction of a "community comprehensive healthcare system" and the promotion ofmeasures to cut medical expenses to make the social security system sustainable, the expansion of markets for specialty
products such as biomedical products and regenerative medical products, and the promotion of medical DX.
Amid these rapid changes in the environment of the healthcare and pharmaceutical industries, the Group has
formulated the Medium-term Management Plan 2023-2025 with a view to, as a corporate group engaged in the areasof medical care, healthcare, and nursing care, contributing to extending the healthy life expectancy of men and womenin Japan and to establishing and maintaining sustainable social security systems.
By implementing the Medium-term Management Plan 2023-2025 aimed at creating a foundation for the “nextgeneration,” we will overcome the harsh market environment and achieve sustainable growth, while endeavoring tobecome a corporate group that is needed and continuously supported by all stakeholders.
2. Basic policy and specific measures of the Medium-term Management Plan 2023-2025
We will put our following basic policies into practice: (1) Business transformation, (2) Investment for growth andimprovement of profitability, (3) Sustainability management, and (4) Improvement of capital efficiency andenhancement of shareholder returns.

1The specific measures of each basic policy are as follows.
(1) Business transformation① Transformation of Pharmaceutical wholesaling business
Aiming to promote distribution improvement, which is one of the major challenges in the pharmaceuticalindustry, we will move away from traditional business practices and press ahead toward the realization of the"next generation" with: restructuring the organization (unification of pharmaceuticals and reagents, integrationof offices, etc.); clarifying roles and functions outside the framework of MS (marketing specialist) and EMS(ENIF marketing supporter); developing new roles, jobs and work styles; and strengthening the utilization anddevelopment of human resources, thereby improving the productivity of the wholesaling business.
② Transformation of Dispensing pharmacy businessIn order to promote organizational and functional transformation to respond to digitalization and contribute tohome healthcare, we will: strengthen our functions by concentrating the administrative functions of our 32
operating companies and integrating their systems; open new pharmacies while closing some existing ones
with an emphasis on profitability; expand non-insurance revenues; utilize and train human resources; and raise
employee awareness.
③ Regional development - Regional healthcare design We will restructure into an organization that enables activities based on the concept area (secondary medicalarea), assess the actual situation and problems in the area, and unify the logistics system from wide to narrowareas with the medical DX centered on the customer support systems to plan, design, and implement the bestsolutions to problems, and strive to support the medical care delivery system and improve the quality of life(QOL) of people who wish to be healthy.
④ Cooperative Research Lab with AIST, MAXIS2021
By combining the advanced development capabilities of the National Institute of Advanced Industrial Scienceand Technology (AIST) based on its cutting-edge technologies with the Group's industry knowledge and knowhow, we will work to solve medical access problems and implement new technologies, systems and services insociety.
We will also promote an internal reform project "MAXIS2021" to ensure sustainable growth and remain acompany that is needed by society. Along with human resources of R&D thinking that will be cultivatedthrough the research laboratory in collaboration with AIST, we will develop human resources who will be incharge of the next generation.

(2) Investment for growth and improvement of profitability①Specialty products, Full service
In order to increase the sale of specialty products the market of which is expected to expand, we will establish afull service that can meet the diverse needs of pharmaceutical companies and bio-ventures through an active
alliance with our centralized management system.
②Evolution of customer support businessIn addition to leveraging the Company's strengths in the customer support business that we have built up fornearly 30 years (extensive lineup, operating companies responsible for development within the Group, ability
to make proposals that meet needs and follow-up systems, and track record of doing business across Japan) as
seen in Information terminal for pharmaceutical ordering "ENIF", Web-portal site for finding hospitals"Byouin-Navi",” Initial Examination Reservation Service” and Online Medical Examination/ Dosing Guidance2

System "KAITOS" , we aim to further evolve by incorporating cutting-edge technologies such as AI throughthe alliance.
③Building new businessesWe will build new businesses by proactively investing in areas and products related to medical care that areexpected to grow and maximizing the group synergies that only the Kyoso Mirai Group doing wholesaling,
dispensing pharmacy, and pharmaceutical manufacturing and sales businesses can achieve.
(3) Sustainability management① Sustainability management of our company
Based on the Mission Statement, we, as a corporate group engaged in the areas of medical care, healthcare, andnursing care, work to solve social issues and contribute to the realization of a sustainable society through ourbusinesses. As for environmental activities, we will promote decarbonization through the use of solar panels,
storage batteries, and electric vehicles, and improve delivery efficiency through planned delivery and jointdelivery.
②Maximizing the value of human capital
We will continue to cherish the Company's corporate culture that has been achieved by human resources andour mind to respect free thinking. We will also do our best to maximize the value of human capital by nurturing
the human resources needed by the Kyoso Mirai Group, developing personnel systems, and facilitating work
style reforms.
③Compliance・Risk Management“Compliance with relevant laws and regulations” and “compliance and risk management” are top priorities forall executives and employees.
(4) Improvement of Capital Efficiency and Enhancement of Shareholder Returns① What the “next generation” should be like- 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）② Specific measures under the Medium-term Management Plan 2023-2025- Investment Plan：38 billion yen
Investment in growth fields：20 billion yen
Investment in infrastructure：12 billion yen
Investment in human capital： 6 billion yen- Purchase of treasury shares：More than 30 billion yen
We will purchase treasury shares flexibly taking capital efficiency into consideration.
- Dividends：
We will increase dividends stably with a target of a DOE (dividend on equity) of 2%.
- Cross-shareholdings：
We will unwind cross-shareholdings in a phased manner through sufficient dialogue with the partnercompanies.

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