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.

August 4, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 2023
(Under Japanese GAAP)
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:
August 14, 2023
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the three months ended June 30, 2023
(from April 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%
Millions of yen%
Millions of yen%
Three months ended
June 30, 2023
351,179
8.3
1,853
-18.2
2,521
-19.8
June 30, 2022
324,267
─
2,266
─
3,142
39.1
Note: Comprehensive income For the three months ended June 30, 2023: ¥5,241 million [47.7%]
For the three months ended June 30, 2022: ¥3,548 million [277.0%]

Basic earnings
per share
Three months ended
June 30, 2023

Millions of yen

1,529
2,061

%

-25.8
19.1

Diluted earnings
per share
Yen

Yen

23.07

21.12

June 30, 2022
29.22
26.86
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 quarter 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 quarter of the fiscal year ended March 31, 2023 before
the reclassification were 323,397 million yen and 1,397 million yen, respectively.

(2) Consolidated financial position

Total assets

As ofJune 30, 2023
March 31, 2023
Reference: Equity

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

734,461

241,103

32.8

242,91633.9

715,288
As of June 30, 2023:¥240,860 million
As of March 31, 2023: ¥242,678 million

2. Cash dividends
First quarter-end
Yen

Annual dividends per share
Second quarter-end Third quarter-end
Fiscal year-end
Yen

Yen

Fiscal year ended
─
16.00
─
March 31, 2023
Fiscal year ending─March 31, 2024
Fiscal year ending
March 31, 2024
18.00
─(Forecast)
Note: Revision to the forecast of cash dividends most recently announced: None

Total

Yen

Yen

16.00

32.00

18.00

36.00

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％

Millions of yen％

Millions of yen％

Millions of yen％

Yen

First Half

651,000 -4.5

3,800

-34.9

5,000 -32.4

6,700

86.2

102.38Full year

1,325,000 -4.8

11,500-29.7

13,800 -28.0

12,300-9.8

189.15

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 June 30, 2023

78,270,142 shares

As of March 31, 2023

78,270,142 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2023

13,663,235 shares

As of March 31, 2023

11,302,582 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended June 30, 2023

66,293,007 shares

Three months ended June 30, 2022

70,540,732 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants oran audit corporation.
* Proper use of earnings forecasts, and other special matters
Any forward-looking statements contained in this report, including performance projections, are based on
information currently available to the Company as well as certain assumptions that the Company determined to
be rational at the time of the release of this report, and it is not intended that the Company undertake to achieve
such results. Actual results may differ significantly from the projections above, due to a variety of factors.
Please refer to Explanation of Projections of Consolidated Operating Results for Fiscal Year ending March 31,
2024 on page 3 of this report (the attached document) for the suppositions on which the performance projections
are based and points that have to be borne in mind for the use of such projections.

〇Contents of Attached Document
1. Qualitative Information on Financial Results for the Three Months Ended June 30, 2023················ 2(1) Explanation of Management Results ··········································································· 2(2) Explanation of Financial Position ··············································································· 3(3) Explanation of Projections of Consolidated Operating Results for
Fiscal Year ending March 31, 2024 ············································································ 3
2. Quarterly Consolidated Financial Statements and Main Notes ················································ 4(1) Quarterly Consolidated Balance Sheets ········································································ 4(2) Quarterly Consolidated Profit and Loss Statement and Quarterly Consolidated Statements ofComprehensive Income ·························································································· 6(3) Notes Concerning Quarterly Consolidated Financial Statements ··········································· 9(Notes Concerning Premise of a Going Business) ···························································· 9(Notes Concerning Material Changes in Shareholders’ Equity) ············································ 9(Change in Presentation of Consolidated Financial Statements) ··········································· 9(Segmental Information) ························································································· 10-1-1. Qualitative Information on Financial Results for the Three Months Ended June 30, 2023
(1) Explanation of Management Results
In the first quarter 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. In addition, while thereclassification of COVID-19 as a Class V infectious disease has led to the normalization of socioeconomic
activities, the market remains uncertain owing to concerns about the impact of growing opportunities for people togo out on the infection situation and the health care delivery system.
Under these circumstances, the Group has newly formulated the Medium-term Management Plan 2023-2025“Create the Next Generation,” which covers three years from the fiscal year ending March 31, 2024. As a corporategroup 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 to society forthe current and next generations. With a view to creating a foundation for steadily carrying out the mission in thecourse of implementing the new Medium-term Management Plan, we will implement concrete measures throughactive 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 particular, in Business transformation, in order to promote the transformation of pharmaceutical wholesaling
business, which is one of its concrete measures, TOHO PHARMACEUTICAL, a consolidated subsidiary
constituting the core of our wholesaling business, made a major organizational change, mainly in the sales division.
We have restructured into an organization and teams that enable community-based activities revolving around theconcept area of secondary medical. We have also been actively promoting the unification of pharmaceuticals andreagents as well as the integration of offices. In April this year, we established a joint research laboratory with the
National Institute of Advanced Industrial Science and Technology (AIST), and eight researchers on loan from theGroup and 16 in-house researchers are participating in joint research to solve issues related to medical access andto implement new technologies, systems, and services in society.
The Company’s consolidated operating results for the three months ended June 30, 2023 recorded 351,179 million
yen for net sales (an increase of 8.3% on a year-on-year basis), 1,853 million yen for operating profit (a decreaseof 18.2% on a year-on-year basis), 2,521 million yen for ordinary profit (a decrease of 19.8% on a year-on-yearbasis), and 1,529 million yen for profit attributable to owners of parent (a decrease of 25.8% 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 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, sales of limited-handling products for selected wholesalers, such as
specialty pharmaceuticals, steadily expanded, contributing significantly to total sales. In price negotiations withmedical institutions, we continued to strive to negotiate unit prices for individual products, commensurate withindividual product values and distribution costs, in order to promote distribution improvement. As for customer
support systems, the number of customers who have installed ENIFvoiceSP, FutureENIF and other systems has
increased, contributing to profit growth. As a result, the pharmaceutical wholesaling business posted net sales of339,117 million yen (an increase of 8.5% on a year-on-year basis) and segment profit (operating profit) of 2,223
million yen (an increase of 3.3% on a year-on-year basis) for the three months ended June 30, 2023 under review.
In the dispensing pharmacy business, in order to promote transformation to respond to digitalization andcontribute to home health care, we worked to strengthen online medication instructions and introduce electronicprescriptions, as well as to strengthen cooperation with clinics specializing in medical care at home. In addition,
while the number of prescriptions filled increased in line with the pickup in the number of patients as they no longer
refrained from seeing a doctor, the end of transitional measures for the community support system incentives,
whose calculation requirements were significantly revised in the revision of dispensing fees in April 2022, andother factors resulted in net sales were 22,827 million yen (an increase of 2.7% year on year) and segment profit(operating profit) was 112 million yen (a decrease of 16.1% 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. In addition, we launched 1 ingredient and 3
products of generic drugs when supplementary products were listed in the NHI price list in June 2023. As of theend of June 2023, the product lineup was composed of 87 ingredients and 200 generic products. As a result, thepharmaceutical manufacturing and sales business posted net sales of 2,658 million yen (an increase of 7.0% on a
year-on-year basis.) and segment profit (operating profit) of 293 million yen (an increase of 1.8% on a year-onyear basis.).
In the other peripheral businesses, net sales amounted to 1,473 million yen (a decrease of 2.4% on a year-on-yearbasis.) and segment profit (operating profit) was 35 million yen (a decrease of 62.3% on a year-on-year basis.).
(Note) Segment sales include inter-segment transactions.
-2-(2) Explanation of Financial Position(Assets)
Current assets increased 2.7 % from the end of the previous consolidated fiscal year to 548,154 million yen withan increase in cash and deposits of 6,549 million yen, notes and accounts receivable-trade of 11,401 million yen,
and a decrease in merchandise and finished goods of 3,790 million yen in other.
Non-current assets increased 2.5% from the end of the previous consolidated fiscal year to 186,306 million yen
with an increase in investment securities of 5,239 million yen, and a decrease in property, plant and equipment of
1,081 million yen in other.
As a result, consolidated net assets increased 2.7% from the end of the previous consolidated fiscal year, to734,461 million yen.
(Liabilities)
Current liabilities decreased 0.5% from the end of the previous consolidated fiscal year to 437,838 million yen withan increase in notes and accounts payable-trade of 18,335 million yen, and a decrease in current portion of bonds
payable of 20,003 million yen in other.
Non-current liabilities increased 72.5% from the end of the previous consolidated fiscal year to 55,519 million
yen with an increase in bonds payable of 22,109 million yen in other.
As a result, total liabilities increased 4.4 % from the end of the previous consolidated fiscal year, to 493,358 million
yen.
(Net assets)
Total net assets decreased 0.7% from the end of the previous consolidated fiscal year to 241,103 million yen
with an increase in valuation difference on available-for-sale securities of 3,708 million yen, and an increase intreasury shares of 6,000 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 operations for the first half of fiscal year ending March2024 and the full-term of the fiscal year published on May 12, 2023.

-3-

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
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of June 30, 2023

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

92,751
328,097
87,427204
40,051-377
548,154

90,27089,189

514
4,863
5,377

446
4,797
5,244

72,604
15,462-1,947
86,120181,768
715,288

77,844
16,028-2,00091,872
186,306
734,461

(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

As of June 30, 2023

385,140
9,800
20,003
5,152
3,214
42
40
16,794440,188

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

22,109
6,372
2,505
2,641
4,849
17,04255,519493,358

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

10,64949,146
192,005-29,108
222,693

18,73422,443-4,276
14,458146
92242,916715,288-4,27618,167146
95
241,103
734,461－

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets-5-403,476
9,218
1,635
4,834
10
178
18,483437,838(2) Quarterly Consolidated Profit and Loss Statement and Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Profit and Loss Statement[Cumulative Period for the Consolidated First Quarter](Unit: million yen)Three months ended
June 30, 2022
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
Share of loss of entities accounted for using
equity method
Bond issuance costs
Other
Total non-operating expenses
Ordinary profit-6-

Three months ended
June 30, 2023

324,267
297,884
26,383351,179
324,287
26,892

10,004

9,998

1,712
10
69
1,929
266
-86
1,360
75
1,997
532

1,664
10
67
1,904
246
54
1,467
67
2,124
546

1,619

1,682

4,623

5,203

24,11625,038

2,266

1,853

13
500

10
412

－

91

206
327
1,048

209
172
897

20

15

67

－

－

84
172

83
131
230

3,142

2,521

(Unit: million yen)Three months ended
June 30, 2022
Extraordinary income
Gain on sales of non-current assets
Gain on liquidation of investment securities
Other

Three months ended
June 30, 2023
64
16

Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Impairment losses
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

-7-

18
－

－

0

80

18

6
19
173
200

41

3,023

2,492

1,799
-845

1,706
-746

953
2,069

959
1,533

8
2,061

3
1,529

－

5
47

Quarterly Consolidated Statements of Comprehensive Income[Period for the Consolidated First Quarter]
Three months ended
June 30, 2022

(Unit: million yen)

Net profit
Other comprehensive income
Valuation difference on available-for-salesecurities
Share of other comprehensive income ofentities accounted for using equity method

2,069

Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to ownersof parent
Comprehensive income attributable tonon-controlling interests-8-

Three months ended
June 30, 2023

1,533

1,467

3,662

11

46

1,478
3,548

3,708
5,241

3,540

5,238

8

3

(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 firstquarter of the previous year have been reclassified. As a result, net sales and operating profit for the firstquarter of the previous fiscal year increased by 869 million yen compared with those before thereclassification, with net sales and operating profit amounting to 324,267 million yen and 2,266 million yen,respectively. There is no impact on ordinary profit or profit before income taxes. In addition, “accounts
receivable - other” of 473 million yen, which were presented in “other” under current assets in the
consolidated balance sheet for the previous fiscal year, have been reclassified to “notes and accounts
receivable - trade. ” As a result, notes and accounts receivable-trade amounted to 316,696 million yen and“other” under current assets amounted to 39,573 million yen.

-9-

(Segmental Information)
As described in Change in the Presentation of Consolidated Financial Statements, revenues from information
service fees, etc. have been reclassified to net sales from the first quarter of the fiscal year ending March 31, 2024.
In order to reflect this change in presentation method, the Segmental Information for the first quarter of the previous
year have been reclassified.
As a result, net sales and segment profit in the pharmaceutical wholesaling business for the first quarter of theprevious fiscal year increased by 869 million yen compared with those before the reclassification.
Ⅰ Previous consolidated first quarter (from April 1, 2022 to June 30, 2022)
1. Information about sales and profit or loss by reportable segment
Reportable segments

Amount on thequarterly
Adjustments consolidated
Other
PharmaceuticalPharmaceutical Dispensing(million yen) profit and loss
Manufacturing Peripheral
Total
Wholesaling Pharmacy
statement
Businesses (million yen) (Note 1)
and Sales(million yen) (million yen)(million yen)(million yen) (million yen)
(Note 2)Net Sales(1) Sales to externalcustomers

300,278

22,223612

1,152

324,267－

324,267(2) Inter-segment sales

12,383

0

1,872

356

14,612-14,612－

Total

312,662

22,223

2,485

1,508

338,879-14,612324,267

Segment profit

2,151

133

288

94

2,668

-401

2,266

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

2. Information about impairment losses on non-current assets or goodwill by each business segment
Not applicable.
Ⅱ This consolidated first quarter (from April 1, 2023 to June 30, 2023)
1. Information about sales and profit or loss by reportable segment
Reportable segments

Amount on thequarterly
Adjustments consolidated
Other
PharmaceuticalPharmaceutical Dispensing(million yen) profit and loss
Manufacturing Peripheral
Total
Wholesaling Pharmacy
statement
and Sales
Businesses (million yen) (Note 1)(million yen) (million yen)(million yen)(million yen) (million yen)
(Note 2)Net Sales(1) Sales to externalcustomers

326,610

22,825608

1,134

351,179－

351,179(2) Inter-segment sales

12,507

1

2,050

338

14,897-14,897－

Total

339,117

22,827

2,658

1,473

366,077-14,897351,179

Segment profit

2,223

112

293

35

2,664

-810

1,853

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

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