Consolidated Financial Statements for
the Fiscal Year Ended March 31, 2024
[Japanese GAAP]May 13, 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. Kiharu Takahashi, Executive Officer and General Manager of Corporate PlanningPhone: +81-3-5787-8565
Scheduled date of annual meeting of shareholders: June 26, 2024
Scheduled date of commencing dividend payments: June 5, 2024
Scheduled date of filing securities report: June 27, 2024
Preparation of supplementary explanatory materials: Yes
Financial results briefing: Yes (for institutional investors and analysts)(Amounts of less than one million yen are rounded down.)
1. Consolidated Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net salesYear ended

Million yen

Operating profit%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen%

Million yen%

March 31, 2024
587,481
5,556
6,557
5,843
March 31, 2023
581,327
4,024
5,960
4,831
(Note) Comprehensive income: Year ended March 31, 2024: ¥9,762 million [-%]
Year ended March 31, 2023: ¥2,491 million [-%]
Ratio of ordinary
Basic earnings
Diluted earnings
Ratio of operating
Return on equity
profit to total
per shareper share
profit to net sales
assetsYear ended

Yen

Yen

%

%

%

March 31, 2024
115.035.7
2.1
0.9
March 31, 2023
92.69
4.9
2.0
0.7
(Reference) Share of profit (loss) of entities accounted for using equity method:Year ended March 31, 2024: ¥52 million
Year ended March 31, 2023: ¥108 million* The percentage increase/decrease is not shown due to a change in presentation method. For details, please see (Change
in method of presentation) in (5) Notes to Consolidated Financial Statements of 5. Consolidated Financial Statements
and Primary Notes.

(2) Consolidated Financial Position
Total assets
As ofMarch 31, 2023
March 31, 2022
(Reference) Equity:

Million yen

Net assets

Equity ratio

Net assets per share

Million yen%

Yen317,258
105,940
297,316
100,165
As of March 31, 2024: ¥104,664 million
As of March 31, 2023: ¥98,986 million

33.0
33.3

2,085.09
1,911.44

(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at year-end

Year ended

Million yen

Million yen

Million yen

Million yen

March 31, 2024
March 31, 2023

23,570(3,001)(1,822)(1,038)(5,769)(4,080)31,125
15,147

2. Cash Dividends
1stquarterend
Year ended

March 31, 2023
March 31, 2024
Year ending
March 31, 2025
(Forecast)

Cash dividends per share
2nd
3rd
Yearquarter- quarterend
end
end

Total

Total
dividends(annual)Ratio of
Payout ratio dividends to(consolidated) net assets(consolidated)

Yen

Yen

Yen

Yen

Yen

Million yen

%

%

-

12.00
19.00

-

27.00
23.00

39.00
42.00

2,019
2,119

42.1
36.5

2.1
2.1

-

21.00

-

22.00

43.00

36.0

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.)
Net salesFirst half
Full year

Operating profit

Ordinary profit

Profit attributable to Basic earnings
owners of parent
per share

Million yen%

Million yen%

Million yen%

Million yen%

Yen

296,000
590,000

0.6
0.4

2,800
5,500

(2.4)
(1.0)

3,300
6,400

(5.1)
(2.4)

2,200
6,000

(6.3)
2.7

43.83
119.53* Notes:(1) Changes in significant subsidiaries during the period under review (changes in specified subsidiaries resulting inchanges in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Total number of outstanding shares (common shares)
1) Total number of outstanding shares at the end of the period (including treasury stocks):
March 31, 2024: 51,902,976 shares
March 31, 2023: 61,224,796 shares2) Total number of treasury stocks at the end of the period:
March 31, 2024: 1,706,337 shares
March 31, 2023: 9,438,699 shares
3) Average number of shares during the period:
Year ended March 31, 2024: 50,798,554 sharesYear ended March 31, 2023: 52,119,939 shares

(Reference) Summary of Non-consolidated Results
1. Non-consolidated Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 - March 31, 2024)(1) Non-consolidated Operating Results(% indicates changes from the previous corresponding period.)
Net salesYear ended

March 31, 2024
March 31, 2023

Operating profit

ProfitMillion yen%

Million yen%

Million yen%

Million yen

8,834
5,161

71.2
5.3

8,022
4,392

82.6
6.6

7,943
4,355

82.4
6.6

7,941
4,355

Basic earnings per
share
Year ended

March 31, 2024
March 31, 2023

Ordinary profit

%

82.3
6.9

Diluted earnings per
share

Yen

Yen

156.33
83.57-(2) Non-consolidated Financial Position
Total assets
As ofMarch 31, 2024
March 31, 2023

(Reference) Equity:

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen76,105
69,162

52,19748,25168.6
69.8

1,039.86
931.75

As of March 31, 2024: ¥52,197 million
As of March 31, 2023: ¥48,251 million* These financial results are outside the scope of audit procedures by certified public accountants or audit
corporations.
* 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. For cautionary notes on assumptions that form the basis of theperformance forecast and the use of performance forecast, please see “Overview of Operating Results, etc.” onpage 2 of the attached materials.
- The Company plans to hold a financial results briefing for institutional investors and analysts on May 15, 2024.
The presentation materials to be used at the briefing will be posted on the Company’s website immediately after
the briefing.

Table of Contents
1. Overview of Operating Results, etc. ............................................................................................................... 2(1) Overview of Operating Results for the Fiscal Year Under Review .............................................................. 2(2) Overview of Financial Position for the Fiscal Year Under Review ............................................................. 4(3) Overview of Cash Flows for the Fiscal Year Under Review ........................................................................ 5(4) Future Outlook ............................................................................................................................................. 6(5) Dividend Policy and Payments for This Period and Next Period................................................................. 7
2. Overview of the Corporate Group .................................................................................................................. 8
3. Management Policy......................................................................................................................................... 9(1) Basic Management Policies ......................................................................................................................... 9(2) Target Management Indicators ..................................................................................................................... 9(3) Medium- and Long-term Business Strategies ............................................................................................ 10
4. Basic Idea for Selection of Accounting Standards ......................................................................................... 11
5. Consolidated Financial Statements and Primary Notes .................................................................................. 12(1) Consolidated Balance Sheets...................................................................................................................... 12(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 14(3) Consolidated Statements of Changes in Equity.......................................................................................... 16(4) Consolidated Statements of Cash Flows .................................................................................................... 18(5) Notes to Consolidated Financial Statements .............................................................................................. 20(Notes on going concern assumption) ................................................................................................... 20(Changes in accounting policies)........................................................................................................... 20(Change in method of presentation) ...................................................................................................... 20(Changes in accounting estimates) ........................................................................................................ 20(Segment information) .......................................................................................................................... 20(Per share information) .......................................................................................................................... 24(Significant subsequent events) ............................................................................................................. 24

1

1. Overview of Operating Results, etc.
The Group previously recognized income from the provision of sales information to manufacturers as
administrative service fee income under non-operating income but changed the method of presentation and thisincome is included in net sales from the first quarter of the consolidated fiscal year. As a result of this change, theresults for the previous fiscal year have been retrospectively adjusted to reflect the change in method of presentation.
For details, please see (Change in method of presentation) in (5) Notes to Consolidated Financial Statementsof 5. Consolidated Financial Statements and Primary Notes.

(1) Overview of Operating Results for the Fiscal Year Under Review
During the fiscal year ended March 31, 2024, the Japanese economy saw increased social and economic
activities, reflecting inbound demand surpassing the pre-COVID level and a gradual recovery in domestic demand.
However, uncertainty remained elevated due to concerns about international affairs, the continuing depreciation of
the yen, rising prices, supply restrictions and instability in financial and capital markets. As a consequence,
economic visibility remains limited. In the pharmaceutical wholesale business sector, which is the Group's main
business, the drug price revisions 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 healthsuch as the social security system and the drug pricing system are likely to increase and the policy of curbing drug
costs is likely to be maintained. With pharmaceutical market development, manufacturing and distribution
operations also changing dynamically day by day, the solutions to pharmaceutical distribution related problems arealso becoming increasingly complex and the business environment remains challenging.
In light of such changes in the market structure and operating environment, the Group formulated its Long-term
Vision 2035 from the fiscal year ended March 31, 2024, which is “to transform the future of medical care bytranscending boundaries and “acting as a bridge” to cutting-edge medicines.” Based on this long-term vision, theGroup will expand medical care-related businesses with the aim of developing a sustainable distribution structure
for drugs and medical care-related products through independence and cooperation and contributing to theresolution of social issues and the extension of healthy life expectancy.
Furthermore, with “business model innovation looking at next-generation capabilities” as its medium-term
vision, the Group is implementing its fifth Medium-Term Management Plan, spanning the three-year period fromthe year ended March 31, 2023 to the year ending March 31, 2025. In the medium-term management plan, theCompany has set out and is working to achieve the practical tasks: “1. Explore a pharmaceutical distribution modelto adapt to changes in the market structure and meet market characteristics,” “ 2. Evolve distribution andmarketing models tailored to the advancement of DX in the field of medical care,” and “3. Promote Groupmanagement that meets Prime Market requirements.”
In February 2024, the Company took an equity stake in LinDo K.K. (“LinDo”) in collaboration with thefollowing three companies: CareNet, Inc (“CareNet”), Forest Holdings inc. (“Forest HD”) and Medical Incubator
Japan K.K. (“MIJ”), to participate in a new business model aiming to eliminate drug loss in accordance with theabovementioned Long-Term Vision. The Company also invested as strategic limited partners in MIJ BG2 Limited
Partnership (the “Fund”), a new fund established by MIJ. LinDo is a pharmaceutical company (a seed incubator)
established with the aim of developing and selling new drugs for which there is no development plan in Japan,
despite the fact that the drugs have already been developed in Europe and the United States. It is a company that isplaying a central role in a new business model for eliminating drug loss. Furthermore, the Fund manages a total of
20 billion yen for the two purposes of equity investment in emerging pharmaceutical companies in and outside2

Japan and drug loss elimination in Japan. In collaboration with LinDo, CareNet, Forest, MIJ and the Fund, theCompany will, through initiatives to eliminate drug loss in Japan, contribute to broadening options for therapeutic
agents for patients in Japan who have rare or intractable diseases, etc. in areas including the field of pediatric
medicine and are waiting for new therapeutic agents, their families, and doctors and paramedical personnel incharge of their treatment (Note 1).
(Note 1) For details, please read the press release dated February 14, 2024 using the link below.
URL:https://www.vitalksk.co.jp/corp/wp-content/uploads/2024/02/0432eb016d623756f231942118d02062.pdf
Moving on to the shareholder return policy, as disclosed on October 28, 2022 (Note 2), the Company has set
the total shareholder return target at 50% or more based on the maximum consideration for shareholders and makes
returns to shareholders accordingly. As for the dividend policy, the Company uses dividend on equity (DOE) as anindex for dividends because DOE is relatively immune to changes in single-year business results and its policy is
to maintain a DOE of 2% or more.
Based on the abovementioned policy, the Company resolved at a meeting of the Board of Directors held on
May 12, 2023 to acquire its own shares as provided for in the Articles of Incorporation pursuant to the provisionsof Article 165, Paragraph 2 of the Companies Act, and conducted a repurchase with 1,000,000 shares as the numberof shares repurchased and ¥956 million as the value of shares repurchased. Furthermore, at a meeting of the Boardof Directors held on November 6, 2023, the Company resolved to acquire its own shares for a second time thisfiscal year as provided for in the Articles of Incorporation pursuant to the provisions of Article 165, Paragraph 2 of
the Companies Act, and conducted a repurchase with 600,000 shares as the number of shares repurchased and ¥669
million as the value of shares repurchased.
As for the retirement of treasury stock, at the meeting of the Board of Directors held on May 12, 2023, theCompany resolved to retire treasury stock pursuant to Article 178 of the Companies Act, and retired 9,321,820
shares on June 30, 2023.
Meanwhile, in accordance with the Company’s dividend policy of maintaining a DOE of 2% or more, theCompany decided to pay an interim dividend of ¥19 and a year-end dividend of ¥23, bringing the annual year
dividend to ¥42.
As a result, the total return ratio for the fiscal year under review came to 64.1%.
(Note 2) Notice Regarding Strengthening Efforts Toward Corporate Value Enhancement (announced on October28, 2022)
URL:
https://www.vitalksk.co.jp/english/corp/wp-content/uploads/2022/11/Notice-Regarding-StrengtheningEfforts-Toward-Corporate-Value-Enhancement.pdf
With regard to business results for the fiscal year under review, revenue increased, attributable to favorable
sales of anti-cancer drug and anti-coronavirus agents, in addition to growth of the overall market for prescription
pharmaceuticals, although transactions with certain foreign pharmaceutical companies were discontinued. Profits
exceeded the level of a year ago, mainly attributable to the absence of allowance for doubtful accounts for certain
major customers which was posted in the previous fiscal year, in addition to the effect of the increased revenue
described above. As a result, net sales were ¥587,481 million (compared with ¥581,327 million for the previousyear), operating profit was ¥5,556 million (compared with ¥4,024 million for the previous year), ordinary profit
was ¥6,557 million (compared with ¥5,960 million for the previous year), and profit attributable to owners of parent
was ¥5,843 million (compared with ¥4,831 million for the same period of the previous year).

3

Performance results by business segment are as follows.
1) Pharmaceutical Wholesale Business
The pharmaceutical wholesale business posted an increase in sales despite the negative impact of NHI drug
price revision and the suspension of handling of certain manufacturers, with growth in products eligible for the
price maintenance premium such as anticancer drugs and COVID-19 treatments more than offsetting the decline insales. In addition, the Company negotiated prices while paying attention to transaction costs with each of its
customers, recorded revenue from the delivery of new corona vaccines commissioned by the national and local
governments, and recorded a gain on reversal of a portion of the allowance for doubtful accounts for major
customers recorded the previous year, resulting in significantly higher profits than in the previous year.
As a result of the foregoing, net sales were ¥552,870 million (compared with ¥547,603 million for the previousyear), and segment profit (operating profit) was ¥4,913 million (compared with ¥3,597 million for the previousyear).
2) Pharmacy Business
The pharmacy business posted net sales of ¥19,115 million (compared with ¥18,361 million for the previousyear), reflecting, in addition to an increase of one store due to the business acquisition in August 2023, efforts to
expand income from dispensing technical fees and income from pharmaceutical management fees as well as anincrease in the number of prescriptions received as a result of increased movement of people with the downgradingof COVID-19 to a Class 5 infectious disease under the Infectious Diseases Act. Segment profit (operating profit)
was ¥310 million (compared with ¥106 million for the previous year) due to the effect of this sales growth as well
as a significant decrease in amortization of goodwill.
3) Veterinary Drug Wholesale Business
The veterinary drug wholesale business recorded net sales of ¥11,027 million (compared to ¥10,889 million in
the previous fiscal year), mainly driven by sales growth in companion animal operations. Segment profit (operating
profit) was ¥350 million (compared to ¥349 million a year ago).
4) Other Businesses
Other businesses reported net sales of ¥4,468 million (compared with ¥4,473 million for the previous year) anda segment loss (operating loss) of ¥109 million (compared with a segment loss of ¥204 million in the previous year),reflecting lackluster performances mainly in the sports facility management business.

(2) Overview of Financial Position for the Fiscal Year Under Review
Assets as of the end of the year ended March 31, 2024 amounted to ¥317,258 million, an increase of ¥19,942
million from the end of the previous consolidated fiscal year. Assets comprised ¥203,303 million of current assetsand ¥113,954 million of non-current assets.
Current assets mainly comprised ¥34,712 million of cash and deposits, ¥117,993 million of notes and accounts
receivable - trade, ¥31,421 million of inventories and ¥16,337 million of accounts receivable - other. Current assets
increased ¥14,801 million from the end of the previous consolidated fiscal year, due primarily to an increase of¥15,683 million in cash and deposits.
Non-current assets comprised ¥49,704 million of property, plant and equipment, ¥3,913 million of intangible
assets and ¥60,336 million of investments and other assets. Non-current assets increased ¥5,140 million from theend of the previous consolidated fiscal year, due primarily to an increase of ¥2,313 million in investment securities,4

an increase of ¥1,594 million in retirement benefit asset, and an increase of ¥1,319 million in software.
Liabilities amounted to ¥211,317 million, an increase of ¥14,167 million from the end of the previous
consolidated fiscal year. Liabilities comprised ¥193,407 million of current liabilities and ¥17,910 million of noncurrent liabilities.
Current liabilities mainly comprised ¥179,174 million of notes and accounts payable - trade and ¥1,687 million
of provision for bonuses. Current liabilities increased ¥14,748 million from the end of the previous consolidated
fiscal year, due primarily to an increase of ¥14,603 million in notes and accounts payable - trade.
Non-current liabilities mainly comprised ¥9,786 million of deferred tax liabilities, ¥5,820 million of long-termborrowings, and ¥1,434 million of lease obligations. Non-current liabilities decreased ¥580 million from the end of
the previous consolidated fiscal year, due primarily to a decrease of ¥970 million in long-term borrowings and adecrease of ¥794 million in retirement benefit liability, despite an increase of ¥1,110 million in deferred tax liabilities.
Net assets amounted to ¥105,940 million, an increase of ¥5,774 million from the end of the previous
consolidated fiscal year, due primarily to the reporting of profit attributable to owners of parent of ¥5,843 million, a¥2,776 million increase in valuation difference on available-for-sale securities, and a ¥2,368 million decrease individends paid.

(3) Overview of Cash Flows for the Fiscal Year Under Review
Cash and cash equivalents (collectively, “Cash”) as of the end of the year ended March 31, 2024 amounted to¥31,125 million (compared to ¥15,147 million at the end of the previous consolidated fiscal year).
a) Cash Flows from Operating Activities
Cash provided by operating activities during the year ended March 31, 2024 was ¥23,570 million (¥3,001
million used for the previous consolidated fiscal year). This is attributable mainly to increasing factors such as aprofit before income taxes of ¥8,672 million (¥8,111 million for the previous consolidated fiscal year), an increasein trade receivables of ¥14,545 million (a decrease of ¥12,113 million for the previous consolidated fiscal year),and depreciation of ¥3,251 million (¥3,010 million for the previous consolidated fiscal year), offsetting decreasing
factors such as income taxes paid of ¥3,558 million (¥3,527 million for the previous consolidated fiscal year), anda decrease in retirement benefit liability of ¥2,388 million (a decrease of ¥1,679 million for the previous
consolidated fiscal year).
b) Cash Flows from Investing Activities
Cash used in investing activities during the year ended March 31, 2024 was ¥1,822 million (¥1,038 million
used for the previous consolidated fiscal year). This is attributable to decreasing factors such as purchase ofintangible assets of ¥3,253 million (¥759 million for the previous consolidated fiscal year) and purchase of property,
plant and equipment of ¥1,845 million (¥5,840 million for the previous consolidated fiscal year) despite increasing
factors such as proceeds from sale of investment securities of ¥4,537 million (¥5,491 million for the previous
consolidated fiscal year).
c) Cash Flows from Financing Activities
Cash used in financing activities during the year ended March 31, 2024 was ¥5,769 million (¥4,080 million
used for the previous consolidated fiscal year). This is attributable to decreasing factors such as dividends paid of¥2,365 million (¥1,365 million for the previous consolidated fiscal year), repayments of long-term borrowings of¥970 million (¥970 million for the previous consolidated fiscal year) and purchase of treasury shares of ¥1,626
million (¥998 million for the previous consolidated fiscal year).

5(4) Future Outlook
In the next consolidated fiscal year (ending March 31, 2025), the Japanese government will stop subsidizing all
COVID-19 treatment. As a result, the delivery of new corona vaccines commissioned by the national and local
governments will also come to an end. Demand for COVID-19 treatments and other COVID-related products is also
expected to decline.
In addition, performance will presumably be significantly affected by the NHI drug price revision in April 2024
and by the absence of the gain on reversal of allowance for doubtful accounts for major customers recorded in thefiscal year under review.
In face of these headwinds, the Group will comply with the revised guidelines for improvement of the current
distribution system issued by the Ministry of Health, Welfare and Labour in March 2024 and will negotiate unit
prices for single items except excluded items more thoroughly than ever before, while also working to improve profit
contributed by customer through the reduction of transaction costs.
The Group will also tap into demand for promising new drugs and put effort into the sale of vaccines other thanthe COVID-19 vaccine that are subsidized and priority management items, etc. At the same time, in the growing
hospital markets, the Group will allocate management resources to selling not only to drugs but also medical devices
for testing and treatment.
Furthermore, the Group will launch a service connecting the three stakeholders: hospital doctors, pharmacies
and patients, initially for IBD patients in Miyagi Prefecture, through the doctor-pharmacy-patient system okusuriaun, which is a collaboration between VITAL-NET, INC., an operating subsidiary of the Company, and Tohoku
University Hospital, announced on April 23, 2024. It is hoped this service will lead to the sale of IBD-related products,
which have been trending upward in recent years (Note 3).
Another operating subsidiary KSK Co., Ltd. established a Women’s Health Care Solutions Dept. as a salesorganization for women in April 2024, to take on the challenge of addressing social issues particularly affecting
women such as female-specific health conditions. In the first phase of activities, KSK will provide solutions forevery life stage targeting women working in major cities, incorporating not only drugs but also femtech (Note 4) toensure that wide-ranging needs are met.
In terms of new business, the Group decided to build a fifth logistics center in Japan, this time in Kanagawa
Prefecture, as part of efforts to expand the 3PL business, which can be expected to produce synergy with the core
Pharmaceutical Wholesale Business. The new center is expected to commence operation during FY2025.
Based on the forgoing, for the year ending March 31, 2025, the Company forecasts that net sales will increaseslightly, to ¥590,000 million (100.4% of the level a year earlier), and although operating profit and ordinary profit
are expected to fall slightly, to ¥5,500 million and ¥6,400 million respectively (99.0% and 97.6% of the level theprevious year respectively), profit attributable to owners of parent is projected to edge up to ¥6,000 million (102.7%of the level the previous year), due to increased disposal of cross-shareholdings.
(Note 3) For details, please read the disclosure using the following link.
URL: https://www.vitalksk.co.jp/corp/wpcontent/uploads/2024/04/a3ff64c9cc5b879d5441c3f5e270a0ff.pdf(Note 4) Femtech stands for female technology, and refers collectively to products and services that help solves
women’s issues surrounding menstruation, pregnancy, infertility and the menopause and help improve women’squality of life.

6(5) Dividend Policy and Payments for This Period and Next Period
The Group considers the return of profit to shareholders to be an important management issue and aims to pay
continuous and stable dividends. To this end, as stated earlier, the Company uses dividend on equity (DOE) as anindex for dividends because DOE is relatively immune to changes in single-year business results and its policy is tomaintain a DOE of 2% or more.
In accordance with this policy, for the year ended March 31, 2024, the Group has decided to pay the interim
dividend of ¥19 per share, as previously paid, and a year-end dividend of ¥23 per share, bringing the total annual
dividend to ¥42 per share, which represents an increase of ¥3.
For the year ending March 31, 2025, the Group expects to pay an annual dividend of ¥43 per share, which
represents an increase of ¥1. This consists of the interim dividend of ¥21 per share and the year-end dividend of ¥22
per share.

7

2. Overview of the Corporate GroupThe Group (the Company and the associated companies of the Company) comprises the Company, its 19
subsidiaries and four affiliates. The Group is mainly engaged in businesses associated with the four businesses ofthe pharmaceutical wholesale business, the pharmacy business, the veterinary drug wholesale business, and otherbusinesses. Other businesses include the retail of pharmaceuticals, the wholesale of agricultural chemicals, thetransportation business, the nursing care service business, the consulting services for medical institutions, the nonlife insurance agency business, the real estate brokerage business and the operation of parking lots.
Business

Associated companies
VITAL KSK HOLDINGS, INC. (the Company), VITAL-NET, INC.,
Pharmaceutical Wholesale Business
KSK Co., Ltd., Finese Co., Ltd.
OHNO CO. LTD., Goodneighbor Inc., KENKODO YAKKYOKU, G.K.,
Pharmacy Business
Tennohokentyouzaicenter Inc.
Veterinary Drug Wholesale Business AGRO-JAPAN, Inc.
Health Care Management Institute Ltd., VITAL-GREEN, Inc., VITALOther Businesses
CARE, Inc., Tanpopo Co., Ltd., VITAL-EXPRESS, Inc., Daishin
Tsushou Co., Ltd., PLEARC, Inc., 8 other companies
The following figure illustrates the Company’s business structure.

83. Management Policy(1) Basic Management Policies
On April 1, 2009, the VITAL KSK Group was launched upon the establishment of VITAL KSK HOLDINGS,
INC., a joint holding company, through the share transfer of VITAL-NET, INC. and KSK Co., Ltd. and 15 years
have passed since then.
The VITAL KSK Group adopted “Towards realization of healthy and prosperous society” as its corporate
slogan. To fulfill the vision, the Group is working to expedite management processes, promote the development ofmarkets, incorporate IT technology, fuse and evolve the pharmaceutical distribution technologies that it hasdeveloped over many years, and increase profitability by leveraging synergies.
(2) Target Management Indicators
Targets under the fifth medium-term management plan (from the year ended March 31, 2023 to the year ending
March 31, 2025)
The next fiscal year ending March 31, 2025 is the final fiscal year under the fifth medium-term management
plan. The profit plan and shareholder return policy for this final fiscal year are as follows.
[Profit plan and shareholder return policy for final fiscal year]
Year ending March 31, 2025
Plan
(Million yen)
Net sales

Sales ratio
(%)

YoY
(%)

590,000-

100.4

Operating profit

5,500

0.93

99.0

Ordinary profit

6,400

1.08

97.6

Profit attributable toowners of parent

6,000

1.02

102.7

Return on equity (ROE)

5.8%

Total return ratio policy:

50% or more

Dividend policy:

Dividend on equity (DOE) of 2% or more

Targets for “Measures to Implement Management Based on an Awareness of Cost of Capital and Stock Price” (Note 5)
Management indicators

ROE (Return on equity)

PBR (price-to-book ratio)
Reduction of crossshareholding stocks

Targets
Period of the fifth Medium-Term Management Plan (from the year ended March
31, 2023 to the year ending March 31, 2025): 5% or more
Period of the sixth Medium-Term Management Plan (from the year ending March
31, 2026 to the year ending March 31, 2028): 6% level
Period of the seventh Medium-Term Management Plan (from the year ending
March 31, 2029 to the year ending March 31, 2031): 7% level
The first year of the eighth Medium-Term Management Plan (year ending March
31, 2032 ): 8% or more
The first year of the eighth Medium-Term Management Plan (year ending March
31, 2032 ): 1 or more
The first year of the eighth Medium-Term Management Plan (year ending March
31, 2032 ): less than 10% of net assets(Note 5) "Measures to Implement Management Based on an Awareness of Cost of Capital and Stock Price"
URL: https://ssl4.eir-parts.net/doc/3151/ir_material_for_fiscal_ym2/147449/00.pdf

9Long-Term Vision 2025 (composition of net sales and operating profit by business)
Year ended March 31, 2023

Year ending March 31, 2036

Net sales

Pharmaceutical Wholesale Business: 94% Pharmaceutical Wholesale Business: 80%
Healthcare-related Businesses: 6%
Healthcare-related Businesses: 20%

Operating profit

Pharmaceutical Wholesale Business: 83% Pharmaceutical Wholesale Business: 60%
Healthcare-related Businesses: 17%
Healthcare-related Businesses: 40%(3) Medium- and Long-term Business Strategies
With the year 2025 just around the corner, when the baby boomers will be late-stage elderly, the restrictions onsocial security payments and revisions to the system in anticipation of social structural changes that have been
implemented are considered to continue in the future. Similarly, although in the pharmaceutical wholesale business,the core business of the Group, the market for new drugs such as anticancer drugs is expected to continued growing
and demand will be strong, overall growth is expected to be restrained, reflecting less frenzied sales of COVIDrelated products in addition to ongoing drug price revisions and continued encouragement of the use of generics,
and it will be necessary to realize further efficiency in distribution channels in order to ensure a stable supply.
In the field of medical care, new diagnostic and therapeutic techniques that use cutting-edge technology is about
to bring forth substantial innovations. In addition to regenerative medicine, new diagnostic drugs, medical devices,robots, and other new means of diagnosis and medical treatment will drive future market growth, while also posing
new distribution challenges. Furthermore, in the health care domain centering on medical care, the advancement of
DX is expected to contribute to improving efficiency for regional healthcare providers and bring significant changes
to every business involved in the domain.
In light of these changes in the market structure and business environment, the Group formulated a new Longterm Vision 2035 in May 2023 (see below). Based on the new Long-term Vision, the Group will expand medical
care-related businesses with the aim of developing a sustainable distribution structure for drugs and medical
products through independence and cooperation and contributing to the resolution of social issues and the extensionof healthy life expectancy.
[Long-term Vision 2035]
To transform the future of medical care by transcending boundaries and “acting as a bridge” to cutting-edge
medicines<Major practical issues>
・ Sophistication of logistics functions

Expansion of 3PL business・ Overhaul of pharmaceutical wholesale business

Optimal business strategies in each business area

・ Expansion of medical product sales
Further development into drug-related business・ Strengthening of rental business
Provision of various solutions
・ Expansion of Pharmacy BusinessChanges to the way medication is picked up
・ Strengthening of cooperation with central and local governments
Contribution to extension of healthy
life expectancy
・ Expansion of life support business
Parenting support and disease prevention
・ Business expansion in the companion animal and agritech fields
Expansion of area of operations androllout of new business
The Group has also established the fifth Medium-Term Management Plan, spanning three years from April
102022 to March 2025, and with “Business model innovation looking at next-generation capabilities” as its mediumterm vision, is focusing on the following as practical issues to be addressed.
Practical issues under the Fifth Medium-Term Management Plan
<Pharmaceutical Wholesale Business>
1. Establishing a system that accommodates changes in the market structure(1) Realizing low-cost operations with improved and optimized processes(2) Conducting efficient and effective marketing activities to prescribers(3) Expanding MS functions (to replace MR functions)
2. Strengthening efforts for “hospitals,” the core regional health care providers, and reorganizing sales structures
3. Promoting DX for dispensing pharmacies
4. Sustainably improving supply chain management capabilities(1) Expanding the scope of packaged product delivery using inventory management systems(2) Developing a third-party logistics (3PL) business(3) Implementing a supply chain concept utilizing dispensing centers(4) Sustainably increasing logistics quality and efficiency<Group management strategy>
1. Financial strategy(1) Achieving ROE of 5% or more
(2) Implementing appropriate shareholder return policies
Total return ratio policy: 50% or more Dividend policy: Dividend on equity (DOE) of 2% or more
(3) Reducing cross-shareholdings
2. Reviewing and developing corporate governance at a higher level
3. Further enhancing corporate communication (CC)
(1) Conducting appropriate CC activities in light of the Internet age and the financial strategy(2) Enhancing disclosure in English (including the Company’s website, notices of convocation of general
meetings of shareholders)(3) Conducting CC activities that address task force on climate-related financial disclosures (TCFD) in addition
to environmental, social, and governance (ESG) activities
Finally, in addition to taking actions in line with its long-term vision and medium-term vision, the Company
plans to boost the Group’s corporate value by undertaking initiatives aligned with the Notice Regarding
Strengthening Efforts Toward Corporate Value Enhancement (Note 2 reposted) published on October 28, 2022,
and Measures to Implement Management Based on an Awareness of Cost of Capital and Stock (Note 5 reposted)
published on December 26, 2023.

4. Basic Idea for Selection of Accounting Standards
In order to ensure comparability between companies over time, the Group prepares its consolidated financial
statements in accordance with the Ordinance on Terminology, Forms, and Preparation Methods of Consolidated
Financial Statements (excluding Chapters 7 and 8) (Ordinance of the Ministry of Finance No. 28 of 1976).
The Group will appropriately apply international accounting standards, while taking domestic and overseas
situations into account.

115. Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets
As of March 31, 2023
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Others
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
SoftwareLeased assets
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

12(Million yen)
As of March 31, 2024

19,029118,585
30,846
16,466
3,616(41)
188,50234,712
117,993
31,421
16,3372,890(51)203,30350,310(29,940)
20,3701,988(1,451)537
24,917
6,604(4,229)
2,375
31
4,184
(3,391)
792
49,02450,569(31,394)
19,174
2,031(1,526)505
25,244
7,760(4,834)
2,925
925
4,543
(3,614)929
49,704

818
1,415
368
774
3,377

682
2,735
286
209
3,913

44,642
1,419
7,589
400
3,362
(1,002)56,411
108,813297,316

46,956
1,202
9,184
400
3,245
(653)
60,336113,954317,258(Million yen)
As of March 31, 2024

As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Lease liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Asset retirement obligations
Provision for retirement benefits for directors(and other officers)
Provision for share awards for directors (andother officers)
Provision for share awards
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

13

164,571
990
970
2,095
1,569
684
7,777
178,659

179,174
890
970
1,561
1,687
831
8,290
193,407

6,790
1,498
8,676
271

5,820
1,434
9,786
278

196

208

54

80

855
148
18,491
197,150

77
60
163
17,910211,3175,000
12,81067,864(7,575)78,0995,000
5,272
71,339(1,653)
79,95819,972

22,749913

1,956

20,886

24,705

1,179
100,165
297,316

1,276
105,940
317,258

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Million yen)

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
Provision of allowance for doubtful accounts
Interest expenses
Rental expenses
Loss on investments in investment partnerships
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
Impairment losses
Loss on sale of investment securities
Loss on valuation of investment securities
Demolition cost
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

For the fiscal year ended
March 31, 2023
581,327
534,80946,51742,492
4,024

For the fiscal year ended
March 31, 2024
587,481539,179
48,30142,745
5,556

31
751

32
699

108

52

240
995
2,127

260
333
1,379

96
79
0
15
192
5,960

103
103
77
73
20
378
6,557

22
4,201
4,224

46
2,556
26
2,630

14
1,791
26
56
183
2,072
8,111
3,184
(7)
3,177
4,934
102
4,831

82
318
57
57
515
8,672
2,966
(238)
2,728
5,943
100
5,843

14

Consolidated Statements of Comprehensive Income(Million yen)

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 interests

For the fiscal year ended
March 31, 2023
4,934

For the fiscal year ended
March 31, 2024
5,943

(1,690)

2,079

(762)

1,042

11

696

(2,442)
2,491

3,818
9,762

2,388

9,662

102

100

15

(3) Consolidated Statements of Changes in Equity
Fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total
shareholders’equity5,000

12,81064,402(6,581)

75,631

Changes during period
Dividends of surplus(1,369)(1,369)Profit attributable to owners ofparent

4,831

4,831

Purchase of treasury shares

(998)

(998)

Disposal of treasury shares bystocks payment trust

4

4

Change in scope of
consolidation00

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

-

-

3,461

(994)

2,467

5,000

12,81067,864(7,575)78,099

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

21,645

1,683

23,3291,080

100,041

Changes during period
Dividends of surplus(1,369)Profit attributable to owners ofparent

4,831

Purchase of treasury shares(998)

Disposal of treasury shares bystocks payment trust

4

Change in scope of
consolidation0

Net changes in items other thanshareholders’ equity(1,672)(769)

Total changes during period(1,672)(769)(2,442)

98

123

Balance at end of period

19,972913

20,886

1,179

100,165

16(2,442)98(2,343)

Fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

Retained earnings

Treasury shares

Total
shareholders’equity5,000

12,81067,864(7,575)78,099Changes during period
Dividends of surplus(2,368)(2,368)

Profit attributable to owners ofparent

5,843

5,843

Purchase of treasury shares(1,626)(1,626)

Disposal of treasury shares

0

0

0

Disposal of treasury shares bystocks payment trust

(0)

11

11

Cancellation of treasury shares(7,537)

7,537-

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period-(7,537)

3,475

5,922

1,859

5,000

5,272

71,339(1,653)

79,958

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-for-salesecurities

Remeasurementsof defined benefit
plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

Total net assets

19,972913

20,886

1,179

100,165

Changes during period
Dividends of surplus(2,368)

Profit attributable to owners ofparent

5,843

Purchase of treasury shares(1,626)

Disposal of treasury shares

0

Disposal of treasury shares bystocks payment trust

11

Cancellation of treasury shares-

Net changes in items other thanshareholders’ equity

2,776

1,042

3,818

96

3,914

Total changes during period

2,776

1,042

3,818

96

5,774

Balance at end of period

22,7491,956

24,705

1,276

105,94017

(4) Consolidated Statements of Cash Flows(Million yen)
For the fiscal year ended
March 31, 2024

For the fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase(decrease) in net defined benefit asset andliability
Interest and dividend income
Rental income
Interest expenses
Loss (gain) on investments in investment
partnerships
Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on sale and valuation of investment
securities
Loss (gain) on sale and retirement of property,
plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable - other
Decrease (increase) in guarantee deposits
Increase (decrease) in trade payables
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Income taxes refund
Other, net
Net cash provided by (used in) operating activities

18

8,111
3,010
1,791
343

8,672
3,251
82
137

416

(339)

26

117

(1,679)(2,388)

(783)
(240)
96

(732)
(260)
103

(617)

-

(108)

(52)

(4,118)(2,238)

(4)

(44)

1,172
942
(73)
4,278
(12,113)(1,468)(1,017)790(96)(3,527)836
12(3,001)

660
(552)
164
(7)
14,545
4,289
25,409733(103)(3,558)921
168
23,570(Million yen)
For the fiscal year ended
March 31, 2024

For the fiscal year ended
March 31, 2023
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from repayment of investment securities
Proceeds from redemption of investment
securities
Loan advances
Proceeds from collection of loans receivable
Purchase of shares of subsidiaries resulting inchange in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of long-term borrowings
Repayments of lease liabilities
Proceeds from disposal of treasury shares
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change in scope of consolidation
Cash and cash equivalents at end of period

19

(150)
(5,840)339(1,845)

200

128

(759)
(353)
5,491
4

(3,253)(1,258)
4,537
1

100

200

(60)
89

(27)
43

-

(147)

238
(1,038)(542)(1,822)

(970)
(742)
(998)
(1,365)(4)(4,080)(8,121)
23,239

(100)
(970)
(703)
0
(1,626)(2,365)(4)(5,769)15,97815,14729-

15,147

31,125(5) Notes to Consolidated Financial Statements(Notes on going concern assumption)
Not applicable.
(Changes in accounting policies)
Not applicable.
(Change in method of presentation)
The Group previously recognized income from the provision of sales information to manufacturers as administrative
service fee income under non-operating income but changed the method of presentation and this income is included
in net sales from the first quarter of the consolidated fiscal year.
Based on its medium-term vision "business model innovation looking at next-generation capabilities" and under abasic policy of "evolution of distribution and marketing model in step with progress of DX in health care," the Grouppositions information provision as an important operating activity given the increasing importance of information
provision services and the purpose of this change in presentation method is to properly present the results of theGroup's operating activities.
The consolidated financial statements for the previous consolidated fiscal year have been restated to reflect thischange in presentation method.
As a result, administrative service fee income of ¥1,554 million, which had been presented under non-operating
income, has been restated as net sales, resulting in net sales of ¥581,327 million and operating profit of ¥4,024 million.
Ordinary profit and profit before income taxes are not affected by this change.
In addition, accounts receivable-other of ¥199 million, which had been presented in current assets, has been restatedas notes and accounts receivable-trade, resulting in notes and accounts receivable-trade of ¥118,585 million.
In addition, in the consolidated statement of cash flows for the previous fiscal year, "Office work fee" and "Office
work fee received" that were shown under "cash flows from operating activities" were changed to "increase(decrease)in trade receivables." It is included in the amount. As a result, "Office work fee" of -1,554 million yen and "Office
work fee received" of 1,580 million yen, which were shown in "Cash flows from operating activities," have been
reclassified to "Increase(decrease) in trade receivables." , the "increase(decrease) in trade receivables" was 1,146
million yen.
(Changes in accounting estimates)
Not applicable.
(Segment information)
As described in “change in reporting method,” the Company changed the method for reporting administrative service
fee income under non-operating income to include it in net sales, starting in the first three months of the current fiscal
year.
To reflect this change in the reporting method, the financial results for the previous fiscal year have been
retrospectively adjusted. As a result, compared to the previous method, net sales increased in the pharmaceuticalwholesale business and veterinary drug wholesale business by ¥1,544 million and ¥9 million, respectively, while
segment profit increased by ¥1,544 million and ¥9 million, respectively.
1. Overview of reportable segments
The Group’s reportable segments are components of the Group about which separate financial information isavailable. These segments are subject to periodic examinations to enable the company’s Board of Directors to decide
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.
20

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. to farms, 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 fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Reportable segment
Adjustment(Note 2)

Amountrecorded in
Consolidated
Statements ofIncome(Note 3)581,327-

581,327

2,553

13,015(13,015)-587,316

7,026

594,343(13,015)581,327

4,053

(204)

3,849

175

4,024

5,288

295,676

9,666

305,343(8,027)297,316

142

17

2,800

210

3,010

-

3,010

15

327

-

343

-

343

-

343

6,070

57

9

6,137

836

6,974

-

6,974

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

547,603

18,361

10,889576,854

4,473

10,4529

0

10,462558,055

18,371

10,889

3,597

106

349

281,594

8,794

2,640

Pharmaceutical
Wholesale
Business
Net sales
Net sales to outside
customers
Inter-segment net sales
or transfers
Total
Segment income (loss)
Segment assets
Other items
Depreciation
Amortization of
goodwill
Increase in property,
plant and equipment, andintangible assets

Total

Others(Note 1)

Total

(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as
wholesale of agricultural chemicals, nursing care service business, transportation business, and consulting
services for medical institutions.
2. Adjustment of segment income (loss) of ¥175 million and adjustment of segment assets of ¥(8,027) million
refer to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income to operating profit reported on the consolidated
statements of income.

21

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Reportable segment
Adjustment(Note 2)

Amountrecorded in
Consolidated
Statements ofIncome(Note 3)

587,481-

587,481

2,656

13,243(13,243)-593,599

7,125

600,724(13,243)

587,481

5,574

(109)

5,465

90

5,556

5,431

312,487

12,991

325,479(8,193)

317,285

149

16

3,014

236

3,251

-

3,251

15

122

-

137

-

137

-

137

4,794

67

1

4,863

94

4,958

-

4,958

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

552,870

19,115

11,027583,012

4,468

10,57412

0

10,587

Total

563,444

19,127

11,027

Segment income (loss)

4,913

310

350

297,553

9,502

2,849

Pharmaceutical
Wholesale
Business

Net sales
Net sales to outside
customers
Inter-segment net
sales or transfers

Segment assets
Other items
Depreciation
Amortization of
goodwill
Increase in property,
plant and equipment,
and intangible assets

Total

Others(Note 1)

Total

(Notes) 1. “Others” is the segment which is not included in reportable segments, including such businesses as
wholesale of agricultural chemicals, nursing care service business, transportation business, and consulting
services for medical institutions.
2. Adjustment of segment income (loss) of ¥90 million and adjustment of segment assets of ¥(8,193) million
refer to elimination of inter-segment transactions.
3. Adjustments are made to reconcile segment income to operating profit reported on the consolidated
statements of income.

[Related information]
1. Information by product and service
Statement has been omitted as net sales to outside customers in a single product/service category exceed 90% of
total net sales in the consolidated statements of income.
2. Information by geographic area
(1) Net sales
Not applicable as there are no net sales to outside customers other than in Japan.
(2) Property, plant and equipment
Not applicable as there are no property, plant or equipment in areas other than in Japan.
3. Information by major customer
Statement has been omitted as no outside customer accounts for 10% or more of total net sales in the consolidated
statements of income.

22

[Information concerning impairment loss on non-current assets by reportable segment]
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Reportable segment
Pharmaceutical
Wholesale
Business
Impairment losses

78

Veterinary
Drug
Wholesale
Business

Pharmacy
Business
1,713

Others

Total
-

1,791

Total

-

Amountrecorded in
Consolidated
Statements ofIncomeAdjustment

1,791

-

1,791

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Reportable segment
Pharmaceutical
Wholesale
Business
Impairment losses

Veterinary
Drug
Wholesale
Business

Pharmacy
Business82-

Others

Total
-

82

Total

-

Amountrecorded in
Consolidated
Statements ofIncomeAdjustment

82

-

82

[Information concerning amortization of goodwill and unamortized balances by reportable segment]
For the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(Million yen)
Reportable segment
Pharmaceutical
Wholesale
Business

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

Others

Total

Total

Amountrecorded in
Consolidated
Statements ofIncomeAdjustment(Goodwill)
Amortization expense

15

327

-

343

-

343

-

343

Balance at end of period

19

798

-

818

-

818

-

818

For the fiscal year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(Million yen)
Reportable segment
Pharmaceutical
Wholesale
Business

Pharmacy
Business

Veterinary
Drug
Wholesale
Business

Others

Total

Total

Amountrecorded in
Consolidated
Statements ofIncomeAdjustment(Goodwill)
Amortization expense

15

122

-

137

-

137

-

137

Balance at end of period

3

678

-

682

-

682

-

682

23

(Per share information)

Net assets per share
Basic earnings per share

For the fiscal year ended
March 31, 2023
¥1,911.44¥92.69For the fiscal year ended
March 31, 2024
¥2,085.09¥115.03(Notes) 1. Diluted earnings per share is not stated as there are no dilutive shares.
2. Basis of calculation of basic earnings per share and diluted earnings per share is as follows:
For the fiscal year ended
March 31, 2023
Basic earnings per share
Profit income attributable to owners ofparent (Million yen)Amount not attributable to common
stockholders (Million yen)
Profit attributable to owners of parent
relating to common stock (Million yen)
Average number of shares of common stock
outstanding during the period (Thousand
shares)For the fiscal year ended
March 31, 2024

4,831

5,843

-

-

4,831

5,843

52,11950,798For the fiscal year ended
March 31, 2023
100,165

For the fiscal year ended
March 31, 2024
105,940

1,179

1,276

(1,179)(1,276)

98,986

104,664

51,78650,196

3. Basis for the calculation of net assets per share is as follows:

Total net assets (Million yen)Amount deducted from total net assets(Million yen)(Non-controlling interests) (Million yen)
Year-end net assets corresponding to common
stock (Million yen)
Number of common stock at the year-end
used to calculate net assets per share(Thousand shares)(Note) The Company shares held by the Custody Bank of Japan, Ltd. (Trust Account E) as trust assets for the “Board
Benefit Trust (BBT)” are included in treasury stock to be deducted in the calculation of average number ofshares during the period for the purpose of calculating basic earnings per share (116 thousand shares for the
fiscal year ended March 31, 2023, and 106 thousand shares for the fiscal year ended March 31, 2024).
(Significant subsequent events)
Not applicable.

24