Consolidated Financial Statements for the First Quarter of
the Fiscal Year Ending March 31, 2025
[Japanese GAAP]
August 6, 2024
Company name: VITAL KSK HOLDINGS, INC.
Stock exchange listing: Tokyo Stock Exchange
Code number: 3151
URL: https://www.vitalksk.co.jp/english/
Representative: Mr. Taisuke Murai, President & CEO
Contact: Mr. Isao Kita, Director of Accounting & FinancePhone: +81-3-5787-8565
Scheduled date of commencing dividend payments: —Preparation of supplementary explanatory materials: Yes
Financial results briefing: None
(Amounts of less than one million yen are rounded down.)
1. Consolidated Results for the First Quarter of the Fiscal Year Ending March 31, 2025
(April 1, 2024 – June 30, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended
Million yen%
Million yen%
Million yen%
Million yen%
June 30, 2024
146,266
1.2
1,231
5.5
1,504
2.3
1,045
14.0
June 30, 2023
144,542
1,167
1,470
917
(Note) Comprehensive income: Three months ended June 30, 2024: ¥2,441 million [-39.0%]
Three months ended June 30, 2023: ¥4,000 million [-%]
Basic earnings per
Diluted earnings per
share
share
Three months ended
Yen
Yen
June 30, 2024
20.90
June 30, 2023
17.81
(2) Consolidated Financial Position
Total assets
Net assets
Equity ratio
As ofMillion yen
Million yen%
June 30, 2024
321,948
106,567
32.7
March 31, 2024
317,258
105,940
33.0(Reference) Equity: As of June 30, 2024: ¥105,273 million
As of March 31, 2024: ¥104,664 million(Note) Changes from the previous corresponding period for the first quarter of the fiscal year ended March 31, 2024
are not shown due to a change in presentation method from the first quarter of the fiscal year ended March 31,2024.
2. Cash Dividends
1st quarter-end
Yen

Cash dividends per share
2nd quarter3rd quarterYear-end
end
end
Yen

Year ended March 31, 2024
19.00
Year ending March 31, 2025
Year ending March 31, 2025
21.00
(Forecast)(Note) Revision to the forecast for dividends announced most recently: None

Total

Yen

Yen

Yen

-

23.00

42.00

-

22.00

43.00

3. Forecast of Consolidated Results for the Fiscal Year Ending March 31, 2025
(April 1, 2024 - March 31, 2025)(% indicates changes from the previous corresponding period.)
Profit attributable Basic earnings
Net sales
Operating profit
Ordinary profit
to owners of parent
per share
Million yen% Million yen% Million yen% Million yen

First half
296,000
0.6
2,800 (2.4)
3,300 (5.1)
2,200
Full year
590,000
0.4
5,500 (1.0)
6,400 (2.4)
6,000(Note) Revision to forecast of consolidated results announced most recently: None

%

(6.3)
2.7

Yen

44.28
120.76* Notes:(1) Major changes in the scope of consolidation during the period under review: None
(2) Accounting policies adopted specially for the preparation of quarterly consolidated financial statements: Yes* For details, please see “(3) Notes to Quarterly Consolidated Financial Statements (Accounting policies adopted
specially for the preparation of quarterly consolidated financial statements)” on page 8 of the attached materials.
(3) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(4) Total number of outstanding shares (common shares)
1) Total number of outstanding shares at the end of the period (including treasury stocks):
June 30, 2024: 51,902,976 shares
March 31, 2024: 51,902,976 shares2) Total number of treasury stocks at the end of the period:
June 30, 2024: 2,217,994 shares
March 31, 2024: 1,706,337 shares
3) Average number of shares during the period:
Three months ended June 30, 2024: 50,039,326 shares
Three months ended June 30, 2023: 51,546,832 shares* Review of the accompanying quarterly consolidated financial statements by certified public accountants or an
auditing corporation: Yes (optional)* Explanation of the proper use of performance forecast and other notes- The earnings forecast and other forward-looking statements herein are based on the information currently available
and certain assumptions deemed reasonable by the Company, and thus actual results may differ significantly fromthese forecasts due to a wide range of factors.

Table of Contents
1. Qualitative Information on Quarterly Financial Results ....................................................................... 2
Explanation of Operating Results ........................................................................................................... 2
2. Quarterly Consolidated Financial Statements and Primary Notes ........................................................ 4(1) Quarterly Consolidated Balance Sheets ............................................................................................ 4(2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated
Statements of Income ........................................................................................................................ 6(3) Notes to Quarterly Consolidated Financial Statements .................................................................... 8(Significant matters that serve as the basis for the preparation of quarterly consolidated
financial statements) .................................................................................................................. 8(Notes on going concern assumption) .......................................................................................... 8(Notes in the case of significant changes in amount of shareholders’ equity).............................. 8(Changes in accounting policies).................................................................................................. 8(Accounting policies adopted specially for the preparation of quarterly consolidated financial
statements) ................................................................................................................................. 8(Segment information) ................................................................................................................. 9(Notes on statement of cash flows) ............................................................................................ 10
Report on interim review of quarterly consolidated financial statements by independent auditors ........ 111

1. Qualitative Information on Quarterly Financial Results
Explanation of Operating Results
During the three months ended June 30, 2024, the Japanese economy gradually recovered and social andeconomic activities increased amid improvement in the employment and income situation, despite the downside
risks posed to the economy by the depreciation of the yen and rising prices. However, there is still a high degreeof uncertainty in the outlook, with global instability, supply-side constraints and financial and capital market
volatility.
In the pharmaceutical wholesale business sector, which is the Group’s main business, the drug pricerevisions in April 2024 cut approximately ¥120 billion from national healthcare costs and, going forward,
discussions aimed at radically reforming policies and systems related to people’s lives and health such as thesocial security system and the drug pricing system are likely to increase and the policy of curbing drug costs islikely to be maintained. Under these circumstances, during the fiscal year under review, which is the final fiscal
year under the Group’s fifth Medium-term Management Plan, the Group aims to complete various practical tasks
and achieve its targets, while at the same time working together on initiatives for realization of its Long-term
Vision 2035, which is “Beyond medicine, beyond barriers. Innovating the future of medical care by being a“connector”
For the three months ended June 30, 2024, net sales were ¥146,266 million (101.2% of that of the same
period of the previous year), operating profit was ¥1,231 million (105.5% of that of the same period of theprevious year), ordinary profit was ¥1,504 million (102.3% of that of the same period of the previous year), andprofit attributable to owners of parent was ¥1,045 million (114.0% of that of the same period of the previousyear).
Performance results by business segment are as follows.
1) Pharmaceutical Wholesale BusinessIn the three months ended June 30, 2024, the pharmaceutical wholesale business posted a slight increase insales, reflecting sales of products eligible for the price maintenance premium, such as anticancer drugs, and salesof medical equipment due to the opening of new medical institutions, which offset the impact of NHI drug pricerevision and negative impacts in other areas such as year-on-year decline in sales of COVID-19-related products(sales from the government-commissioned delivery of new corona vaccines, treatments, test kits, etc.). Profit
grew year on year, mainly due to the effect of this sales growth.
As a result, net sales were ¥137,403 million (101.1% of that of the same period of the previous year), andsegment profit (operating profit) was ¥1,167 million (110.7% of that of the same period of the previous year).
2) Pharmacy Business
The pharmacy business saw growth in sales due to the opening of one store in March 2024. However, profit
fell due to the impact of NHI drug price revisions, despite efforts to expand income from dispensing technicalfees and income from pharmaceutical management fees. As a result, net sales were ¥4,852 million (104.3% ofthat of the same period of the previous year), and segment profit (operating profit) was ¥33 million (38.6% ofthat of the same period of the previous year).
3) Veterinary Drug Wholesale Business
The veterinary drug wholesale business recorded net sales of ¥2,707 million (97.3% compared with thesame period of the previous year), reflecting decreased sales of certain products after manufacturers started sellingthem directly. Segment profit (operating profit) was ¥80 million (81.0% compared with the same period of the2

previous year), reflecting the impact of higher purchase prices.
4) Other Businesses
Other businesses reported a smaller segment loss, mainly due to the recovery of sales in each business. As
a result, net sales were ¥1,303 million (110.3% of the level for the same period of the previous year), and segment
loss (operating loss) was ¥47 million (compared to operating loss of ¥90 million yen for the same period of theprevious year).

32. Quarterly Consolidated Financial Statements and Primary Notes(1) Quarterly Consolidated Balance Sheets(Million yen)

As of March 31, 2024
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total 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, 2024

34,712
117,993
31,421
16,3372,890(51)203,303

32,773
124,127
31,00915,0193,508(46)
206,392

19,17425,244
5,285
49,70418,901
25,295
5,675
49,872

682
3,231
3,913

649
3,088
3,737

46,956
14,033(653)
60,336113,954317,258

48,43914,049(544)
61,944
115,555
321,948

(Million yen)

As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Other provisions
Retirement benefit liability
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
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

5

As of June 30, 2024

179,174
890
970
1,561
1,687
9,122
193,407

181,682
890
970
647
2,490
10,532
197,212

5,820
366
60
11,663
17,910211,317

5,577
367
51
12,171
18,167215,380

5,000
5,272
71,339(1,653)
79,9585,000
5,272
71,225(2,306)
79,192

22,74924,230

1,956

1,850

24,70526,0801,276
105,940
317,258

1,294
106,567
321,948

(2) Quarterly Consolidated Statements of Income and Comprehensive Income Quarterly Consolidated
Statements of Income
Quarterly Consolidated Statements of Income
Three Months Ended June 30, 2023 and 2024
(Million yen)

For the three months ended
June 30, 2023

For the three months ended
June 30, 2024

144,542
133,079
11,462
10,295
1,167

146,266
134,679
11,587
10,356
1,231

13
167

18
159

18

29

66
80
347

65
38
311

22
19
2
43
1,470

22
13
3
39
1,504

3
‒
‒
3

0
115
3
119

‒
‒
42
0
42
1,431
486
945
27
917

12
6
‒
5
25
1,597
531
1,066
20
1,045

Net sales
Cost of sales
Gross profit
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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rental expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Other
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on sale of investment securities
Loss on valuation of investment securities
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended June 30, 2023 and 2024
(Million yen)

For the three months ended
June 30, 2023

For the three months ended
June 30, 2024

945

1,066

2,726

1,321

(91)

(105)

419

159

3,055
4,000

1,375
2,441

3,973

2,421

27

20

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests7(3) Notes to Quarterly Consolidated Financial Statements(Significant matters that serve as the basis for the preparation of quarterly consolidated financial statements)
The quarterly consolidated financial statements are prepared in accordance with Article 4 (1) of Standards for
Preparation of Quarterly Financial Statements of the Tokyo Stock Exchange, Inc. and accounting principles
generally accepted in Japan for quarterly financial statements, applying the provisions for reduced disclosures as
set forth in Article 4, Paragraph 2 of the Standards. (Significant matters that serve as the basis for the preparationof quarterly consolidated financial statements)(Notes on going concern assumption)
For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
Not applicable.
(Notes in the case of significant changes in amount of shareholders’ equity)
For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
Not applicable.
(Changes in accounting policies)(Application of the Accounting Standard for Current Income Taxes, etc.)
The Company has been applying the Accounting Standard for Current Income Taxes (ASBJ Statement No. 27,
October 28, 2022; hereinafter the “Accounting Standard Revised in 2022”) since the beginning of the first threemonths under review. Regarding revisions to the accounting classification for corporate taxes, etc. (taxation onother comprehensive income), the Company conformed to the specific transitional provisions prescribed in theprovisory clause under Paragraph 20-3 of the Revised Accounting Standard 2022 and the specific transitional
provisions prescribed in the provisory clause under Paragraph 65-2(2) of the Implementation Guidance on Tax
Effect Accounting (ASBJ Guidance No. 28 of October 28, 2022; hereinafter, “Revised Accounting Guidance2022”). This change in accounting policies has no impact on the quarterly consolidated financial statements.
In response to the revised guidance on the deferral of gains/losses on the sale of shares in subsidiary between
consolidated companies for tax purposes that are recorded in the consolidated financial statements, the Company
has been applying the Guidance Revised in 2022 since the beginning of the first three months under review. Thischange in accounting policy is applied retroactively, and the change is reflected in the quarterly consolidated
financial statements and consolidated financial statements for the previous fiscal year. The change in accounting
policy has no impact on the quarterly consolidated financial statements or consolidated financial statements forthe previous fiscal year.
(Accounting policies adopted specially for the preparation of quarterly consolidated financial statements)
Calculation of tax expenses
Tax expenses are calculated by the method in which the effective tax rate on profit before income taxes for thecurrent consolidated fiscal year after application of tax effect accounting is reasonably estimated, and profit
before income taxes was multiplied by the estimated effective tax rate.

8

(Segment information)
1. Overview of reportable segments
The Group’s reportable segments are components of the Group about which separate financial information
is available. These segments are subject to periodic examinations to enable the company’s Board of Directors todecide how to allocate resources and assess performance.
The Group’s segment is categorized based on the business of its operating company, and thus its main
segments, the “Pharmaceutical Wholesale Business,” the “Pharmacy Business,” and the “Veterinary Drug
Wholesale Business” comprise the Group’s reportable segments.
The “Pharmaceutical Wholesale Business” is engaged in sales of drugs, diagnostic products, medical
devices, materials, etc. to medical institutions, such as hospitals, clinics, and pharmacies. The “Pharmacy
Business” is engaged in sales of drugs, medical devices and equipment, and hygiene materials, etc. to general
consumers. The “Veterinary Drug Wholesale Business” is engaged in sales of veterinary drugs, feeds, etc. tofarms, ranches, veterinary hospitals, clinics, etc.
2. Method of measurement for the amounts of net sales, income (loss), assets and other items for each reportablesegment
The method of accounting for the reportable business segments is generally the same as those stated in“Basis for the Presentation of the Consolidated Financial Statements.”
Profit in the reportable segments is based on operating profit.
Inter-segment revenues and transfers are calculated at prevailing market prices.
3. Information on net sales, income (loss), assets and other items by reportable segment
For the three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)
Reportable segment

Net sales
Net sales to outside
customers
Inter-segment net
sales or transfers
Total
Segment income (loss)

PharmaVeterinary
ceutical Pharmacy
Drug
Wholesale Business Wholesale
Business
Business

Total

135,922

4,654

2,783

143,360

2,769

3

0

2,772

138,691
1,054

4,657
87

2,783
99

146,132
1,242

Others(Note 1)

Total

1,182 144,542(Million yen)Amountrecorded in
Quarterly
Adjustment
Consolidated(Note 2)
Statement of
Income(Note 3)-

144,5423,421(3,421)-

1,830 147,963
(90)
1,151

(3,421)
15

144,5421,167

648(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as wholesale ofagricultural chemicals, nursing care service business, transportation business, sports facility management business, andconsulting services for medical institutions.
2. Adjustment of segment income (loss) of ¥15 million refers to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income (loss) to operating profit reported on the quarterly consolidated
statements of income.

9For the three months ended June 30, 2024 (from April 1, 2024 to June 30, 2024)
Reportable segment
PharmaVeterinary
ceutical Pharmacy
Drug
Wholesale Business Wholesale
Business
Business

Total

137,403

4,852

2,707

144,962

2,883

3

0

2,886

140,286
1,167

4,855
33

2,707
80

147,849
1,282

Net sales
Net sales to outside
customers
Inter-segment net
sales or transfers
Total
Segment income (loss)

Others(Note 1)Total

1,303 146,266(Million yen)Amountrecorded in
Quarterly
Adjustment
Consolidated(Note 2)
Statementsof Income(Note 3)-

146,266

3,556(3,556)-

1,973 149,823
(47)
1,235

(3,556)(3)

146,266
1,231

670(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as wholesale ofagricultural chemicals, nursing care service business, transportation business, sports facility management business, andconsulting services for medical institutions.
2. Adjustment of segment income (loss) of ¥(3) million refers to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income (loss) to operating profit reported on the quarterly consolidated
statements of income.

(Notes on statement of cash flows)
The Company did not prepare quarterly consolidated statements of cash flows for the first three months underreview. Depreciation (including amortization of intangible assets except for goodwill) and amortization of goodwill
for the three-month period under review are as follows:(Million yen)

Depreciation
Amortization of goodwill

For the three months ended June 30, 2023
(from April 1, 2023 to June 30, 2023)
742
33

10

For the three months ended June 30, 2024
(from April 1, 2024 to June 30, 2024)
866
33