Press Release

November 6, 2009

To whom it may concern:
5-2-1 Daizawa, Setagaya Ward, TokyoTOHO HOLDINGS CO., LTD.
(Tokyo Stock Exchange Securities Code: 8129)
Norio Hamada, President and CEO
Contact: Katsuya Kato, Corporate Officer,
General Manager of the Corporate Communications Office(Tel: 03-5259-9500)

Results of Operations during the Second Quarter of Fiscal 2010
With respect to the Company’s performances for the Second Quarter of fiscal 2010(April-September2009), consolidated net sales exceeded by 16.4% those for the same period of the preceding year,
mainly due to increased joint procurement of pharmaceuticals for non-consolidated subsidiaries andaffiliates of the Kyoso Mirai Group (provision of pharmaceuticals by Toho Pharmaceuticals), andassisted by the appreciation by the customers of proposal-based marketing and sales activities basedon the pillar of its unique customer support system and the growth of sales of pharmaceuticals forlifestyle-related diseases and new pharmaceuticals, as well as increasing demand forpharmaceuticals related to the outbreak of a new sub-type of influenza.
Regarding profits, the gross profit rate improved to 7.6%, exceeding that for the full-term of theprevious year by 0.2%, despite being lower compared with the same period a year earlier, which is
attributable primarily to the increase in the number of consolidated subsidiaries engaged indispensing pharmacy operations, in spite of an increase in the cooperative purchasing of low-margin
pharmaceuticals in the pharmaceutical wholesaling operations. The operating income recorded anamount equivalent to 162.0% of the initial projection, though this was lower by 33.3% compared tothe same period last year, and the operating income ratio improved by 0.2% from the full-term of theprevious year to 0.6%, due to the Company’s efforts to keep the SGA expenses rate to 7.0% from
7.2% for the same period a year earlier. Ordinary income decreased by 27.5% on a year-on-yearbasis, but the ordinary income rate improved by 0.1% compared with fiscal 2009 to 0.9%. The
consolidated net income for the first half of fiscal 2010 increased by 5,182 million yen comparedwith the same period last year. In addition, increased net income from the revised forecast is due to adecline in extraordinary losses.
In terms of profits, though amounts for some profit items were lower than those for the same periodof the previous year, each profit rate exceeded that for the full-term of the preceding year, showing
steady progress toward achieving the year’s targets. In addition, the 1st half’s percentage
contribution to the year’s target for net income is 45.7%.
1. Results in the second quarter of fiscal 2010 (Consolidated)(1) Comparison with the same period in the previous fiscal year
Consolidated
First Half, Fiscal 2010
First Half, Fiscal 2009
YoY Change (million yen)
YoY Change Ratio (%)

Net Sales

476,564
409,429
67,135
116.4

Unit: million yen, %Operating Income

Ordinary Income

Quarterly Net Income

2,916
4,370-1,454
66.7

4,432
6,110-1,678
72.5

2,286-2,896
5,182

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Press Release(2) Comparison with the initial Earnings Forecasts for the 1st half of fiscal 2010
Consolidated

Net SalesFirst Half, Fiscal 2010
Initial Earnings Forecasts
for the 1st half of fiscal 2010

Unit: million yen, %Operating Income

Ordinary Income

Quarterly Net Income

476,564
463,000

2,916
1,800

4,432
3,300

2,286
1,700

102.9

162.0134.3134.5

Progress (%)(3) Comparison with the cumulative forecast for the first half of fiscal 2010 (through full year)

Unit: million yen, %Consolidated

Net SalesFirst Half, Fiscal 2010
Forecast for the Fiscal 2010
Percentage against the Full-year
Earnings Forecasts （％）

Operating Income

Ordinary Income

2,916
6,000
48.6

4,432
9,100
48.7

476,564
970,000
49.1

Net Income

2,286
5,000
45.7

(4) Gross profit rates, SGA expenses rate, Operating income ratio and Ordinary income ratio (Year-on-year change)
Unit: million yen, %Consolidated
First Half, Fiscal 2010
First Half, Fiscal 2009
YoY Change Ratio (%)
Fiscal 2009
Change from Fiscal 2009 (%)

Gross profit to net

SG&A expenses to

Operating income

Ordinary incomesales

net salesto net sales

to net Sales

7.6
8.2
-0.6
7.4
0.2

7.0
7.2
-0.2
7.1
-0.1

0.6
1.1
-0.5
0.4
0.2

0.9
1.5
-0.6
0.8
0.1

2. Forecast for fiscal 2010 (Full-year)
With regard to the full-year earnings forecasts, the Company has not changed the forecasts
previously announced since ratio of pharmaceutical manufacturer invoice price is not clear atthis stage before the NHI drug price revisions come into effect in April 2010.