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 6 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Under Japanese GAAP)

Company name: TOHO HOLDINGS CO., LTD.
Listing:
Tokyo Stock Exchange
Securities code:8129
https://www.tohohd.co.jp/en/
URL:
Representative:
Eiromi Edahiro / Representative Director, CEO and CFO
Inquiries:
Makoto Kawamura / Corporate Officer and General Manager, Corporate Strategy Division
Telephone:+81-3-6838-2803
Scheduled date to commence dividend payments:―
Preparation of supplementary material on financial results: Yes
Holding of 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, 2024
(from April 1, 2024 to June 30, 2024)(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, 2024
373,044
6.2
2,278
22.9
2,928
16.1
June 30, 2023
351,179
8.3
1,853
-18.2
2,521
-19.8
Note: Comprehensive income For the three months ended June 30, 2024: ¥2,032 million [-61.2%]
For the three months ended June 30, 2023: ¥5,241 million [47.7%]

Basic earnings
per share
Three months ended

Yen

Yen

28.75

25.46

June 30, 2023

23.07

21.12

(2) Consolidated financial position

Total assets

June 30, 2024
March 31, 2024
Reference: Equity

Net assets
Millions of yen%

770,234

250,40232.5

249,437

32.2

773,427
As of June 30, 2024:¥250,149 million
As of March 31, 2024: ¥249,188 million

First quarter-end
Yen

%

18.0
-25.8

Equity-to-asset ratio

Millions of yen

2. Cash dividends

1,804
1,529

Diluted earnings
per share

June 30, 2024

As ofMillions of yen

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

Yen

Yen

Total
Yen

Fiscal year ended
─
18.00
─
22.00
40.00
March 31, 2024
Fiscal year ending─March 31, 2025
Fiscal year ending
March 31, 2025
25.00
─
25.00
50.00
(Forecast)
Note: Revision to the forecast of cash dividends most recently announced: None
Breakdown of cash dividends for the FY ended March 2024: Commemorative dividend: 4.00yen; Ordinary dividend: 36.00yen

3. Consolidated financial forecast for fiscal year ending March 31, 2025(from April 1, 2024 to March
31, 2025)
Net sales
Millions of yen

First Half％

(Percentages indicate the rate of change compared with the preceding fiscal year.)
Profit attributable to
Net income
Operating profit
Ordinary profit
owners of parent
per share％％％
Yen
Millions of yen
Millions of yen
Millions of yen

731,000 -0.5

6,900

6.3

7,900

-0.6

4,900

-44.2

78.14

Full year
1,492,000 1.0
18,200-5.9
20,100Note: Revision of consolidated financial forecast most recently announced: None

-7.7

12,500-39.5

202.36* Notes(1) Significant changes in the scope of consolidation during the period: 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: Yes(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, 2024

76,431,342 shares

As of March 31, 2024

76,431,342 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

13,651,058 shares

As of March 31, 2024

13,650,854 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended June 30, 2024

62,780,374 shares

Three months ended June 30, 2023

66,293,007 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements by certified
public accountants or an audit firm: None
* 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,
2025 on page 4 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, 2024················ 2(1) Explanation of Management Results ··········································································· 2(2) Explanation of Financial Position ··············································································· 4(3) Explanation of Projections of Consolidated Operating Results for
Fiscal Year ending March 31, 2025 ············································································ 4
2. Quarterly Consolidated Financial Statements and Main Notes ················································ 5(1) Quarterly Consolidated Balance Sheets ········································································ 5(2) Quarterly Consolidated Profit and Loss Statement and Quarterly Consolidated Statements ofComprehensive Income ·························································································· 7
Quarterly Consolidated Profit and Loss Statement ······························································· 7
Cumulative Period for the Consolidated First Quarter ······················································· 7
Quarterly Consolidated Statements of Comprehensive Income ················································· 9
Cumulative Period for the Consolidated First Quarter ······················································· 9(3) Notes Concerning Quarterly Consolidated Financial Statements··········································· 10(Notes Concerning Premise of a Going Business) ···························································· 10(Notes Concerning Material Changes in Shareholders’ Equity) ············································ 10(Notes Concerning Changes in the Accounting Policies) ·················································· 10(Segmental Information) ························································································· 11(Notes Concerning Consolidated Statements of Cash Flows) ·············································· 12(Significant Subsequent Events) ················································································ 12-1-1. Qualitative Information on Financial Results for the Three Months Ended June 30, 2024
(1) Explanation of Management Results
In the prescription pharmaceuticals market in the first quarter under review, NHI drug price revisions were
implemented in April 2024, lowering NHI drug prices by 4.67% on a drug cost basis. With the end of government
subsidies for COVID-19 treatment in April of this year, sales of related products such as therapeutic drugs andreagents were expected to decline. However, owing to the emergence of new variants and other factors, the numberof newly infected patients is currently on the rise, and the outlook remains uncertain.
The Group developed the Medium-term Management Plan 2023-2025 “Create the Next Generation,” for a periodof three years from 2023. It set out four basic policies: (1) Business transformation, (2) Investment for growth andimprovement of profitability, (3) Sustainability management, and (4) Improvement of capital efficiency andenhancement of shareholder returns. Based on these policies, we implemented specific measures to maintainsustainable growth and enhance corporate value through such means as active business alliances and digitaltransformation (DX).
With regard to business transformation, in order to shift to a team system centered on secondary medical careareas, which we aim to start in FY2026, we are implementing various initiatives, including joint promotion ofpharmaceutical MSs (marketing specialists) and reagent MSs, and the consolidation and closure of business sites.
In June 2024, we began offering the Kyoso Mirai Portal, which provides at-a-glance information on order history,
delivery schedule, stockout, etc., with a view to improving the work efficiency of our sales staff and theconvenience of our customers.
As initiatives regarding investment for growth and improvement of profitability, we have been entrusted sinceApril 2024 with the distribution of the regenerative medical product Sakracy® by Hirosaki Lifescience Innovation,
Inc. (hereinafter, “Hirosaki LI”). We invested in Hirosaki LI in July to support its business development andproduction capacity improvement. The Group is determined to fully cooperate with Hirosaki LI on distribution as
well by utilizing the Group’s nationwide distribution network, sophisticated distribution system, and know-how inemergency response.
In the area of sustainability management, in order to conduct responsible procurement activities based on arelationship of trust with our suppliers, we have formulated and announced the Group’s Procurement Policy andparticipated in the Declaration of Partnership Building to promote coexistence and co-prosperity with our suppliersin the entire supply chain. We have also established the Purchasing Management Department to address issues in
the Group’s purchasing activities.
In addition, we have invested in One Capital, Inc., a domestic venture capital firm, and employed its DX advisoryteam, which has many years of experience and a track record in global major consulting firms, in a Group-wide
effort to promote DX.
Furthermore, the Management Strategy Committee, which was established for the purpose of accelerating theimplementation of the initiatives of the Medium-term Management Plan and enhancing their effectiveness, focuses
first on verifying profit growth strategies and proceeds with discussions on (1) specific action plans for improving
profitability and productivity in each business (including indirect divisions) and (2) growth investments in existing
businesses, peripheral businesses and new businesses. Specifically, with the top priority of steadily achieving an
ROE of 8% and establishing an earnings and financial structure that can maintain an ROE of 8% or higher on an
ongoing basis, we are examining measures to increase profitability and productivity and investment for growthcentered on our core pharmaceutical wholesaling business. At the same time, bearing in mind the declining trend
in gross profit margin, which is a structural problem in the pharmaceutical wholesaling business, we are examining
not only measures to improve productivity in the wholesaling business, but also the strategies for, and the possibilityof growth investment in, other business segments (dispensing pharmacy business, pharmaceutical manufacturingand marketing business, and other peripheral businesses), as well as the possibility of new businesses that leverage
our strengths, in order to establish a second pillar of earnings. Based on these examinations, we plan to clarify ourideal state for the next generation, build the optimal business portfolio to achieve it, and, based on that,decide on apolicy for holding assets, such as cross-shareholdings, together with a medium-term capital allocation policy,
The Company’s consolidated operating results for the three months ended June 30, 2024 recorded 373,044
million yen for net sales (an increase of 6.2% on a year-on-year basis), 2,278 million yen for operating profit (anincrease of 22.9% on a year-on-year basis), 2,928 million yen for ordinary profit (an increase of 16.1% on a yearon-year basis), and 1,804 million yen for profit attributable to owners of parent (an increase of 18.0% on a yearon-year basis).
The outline of business segment operating results are as follows.
In the pharmaceutical wholesaling business, while sales of COVID-19-related products decreased compared tothe same period of the previous year, sales of specialty pharmaceuticals and other limited-handling products forselected wholesalers continued to grow steadily. In price negotiations with medical institutions, in order to comply
with the Guidelines for the Improvement of Commercial Transaction Practices of Ethical Drugs for Manufacturers,
Wholesalers, and Medical Institutions/Pharmacies that were revised in April 2024, we continued our efforts tonegotiate unit prices for individual products to better reflect their individual value and distribution costs. We also
worked to negotiate separately for drugs that are particularly needed for medical purposes. As for customer support-2-

systems, we strengthened the proposal of simplified Mizar and promoted the switch from ENIF to FutureENIF. As
a result, the pharmaceutical wholesaling business posted net sales of 360,544 million yen (an increase of 6.3% on
a year-on-year basis) and segment profit (operating profit) of 2,660 million yen (an increase of 19.7% on a yearon-year basis) for the three months ended June 30, 2024 under review.
In the dispensing pharmacy business, in order to implement the transformation of the dispensing pharmacy
business, which is a key measure of the Medium-term Management Plan, we pressed ahead with the reorganizationof operating companies. Consequently, the number of dispensing pharmacy companies decreased from 27 at theend of March 2024 to 17 by July 1 this year, and the reorganization in East Japan is almost complete. Moreover, inorder to promote pharmacy DX, we worked to promote the use of the My Number health insurance card, online
medication instructions, etc. As a result, Net sales of the dispensing pharmacy business were 22,932 million yen(an increase of 0.5% year on year) and segment loss (operating loss) was 492 million yen.
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 3 ingredients and 8
products of generic drugs in June 2024. As a result, the pharmaceutical manufacturing and sales business posted
net sales of 2,904 million yen (an increase of 9.2% on a year-on-year basis.) and segment profit (operating profit)of 369 million yen (an increase of 25.9% on a year-on-year basis.).
In the other peripheral businesses, net sales amounted to 1,523 million yen (an increase of 3.4% on a year-on-yearbasis.) and segment profit (operating profit) was 51 million yen (an increase of 43.3% on a year-on-year basis.).
(Note) Segment sales include inter-segment transactions.
(2) Explanation of Financial Position(Assets)
Current assets decreased 1.1 % from the end of the previous consolidated fiscal year to 591,417 million yen witha decrease in notes and accounts receivable-trade of 5,259 million yen, and a decrease in merchandise and finishedgoods of 2,256 million yen in other.
Non-current assets increased 1.9% from the end of the previous consolidated fiscal year to 178,817 million yen
with an increase in property, plant and equipment of 677 million yen, and an increase in investment securities of
1,471 million yen and deferred tax assets of 827 million yen included in other under investments and other assets.
As a result, consolidated net assets decreased 0.4% from the end of the previous consolidated fiscal year, to770,234 million yen.
(Liabilities)
Current liabilities decreased 0.9% from the end of the previous consolidated fiscal year to 466,838 million yen withan increase in notes and accounts payable-trade of 1,550 million yen, and a decrease in income taxes payable of
5,222 million yen in other.
Non-current liabilities increased 0.6% from the end of the previous consolidated fiscal year to 52,993 million yen.
As a result, total liabilities decreased 0.8 % from the end of the previous consolidated fiscal year, to 519,832
million yen.
(Net assets)
Total net assets increased 0.4% from the end of the previous consolidated fiscal year to 250,402 million yen withan increase in retained earnings of 738 million yen in other.
(3) Explanation of Projections of Consolidated Operating Results for Fiscal Year ending March 31, 2025
There are no changes in the projected consolidated results of operations for the first half of fiscal year ending March2025 and the full-term of the fiscal year published on May 10, 2024.

-3-

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Unit: million yen)

As of March 31, 2024
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
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-4-

As of June 30, 2024

132,970
338,726
87,107
180
39,263-359
597,888

133,365
333,467
84,851
154
39,936-357
591,41787,47888,156

297
5,339
5,636

253
5,245
5,499

83,793-1,36982,423
175,538
773,427

86,559-1,397
85,162
178,817770,234

(Unit: million yen)

As of March 31, 2024
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Provision for bonuses for directors
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Provision for loss on guarantees
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
Share acquisition rights

438,072
552
7,429
3,681
43
21,527

Non-controlling interests
Total net assets
Total liabilities and net assets-5-

As of June 30, 2024

471,305

439,622
546
2,206
5,436
11
19,015466,838

22,092
6,074
148
2,539
2,846
4,849
14,134
52,684
523,990

22,087
5,974
154
2,598
2,853
4,849
14,47752,993519,832

10,64945,212
209,746-30,907234,701

10,64945,212
210,485-30,908
235,439

18,77018,993-4,283
14,486144
104
249,437
773,427-4,283
14,710144
109
250,402770,234

(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, 2023
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
Bond issuance costs
Real estate lease expenses
Other
Total non-operating expenses
Ordinary profit-6-

Three months ended
June 30, 2024

351,179
324,287
26,892373,044345,351
27,692

9,998

10,241

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

1,877
11
69
1,965
248
20
1,315
62
1,957
480

1,682

1,718

5,203

5,445

25,03825,413

1,853

2,278

10
412

12
391

91

21

209
172
897

201
102
730

15
83
44
87
230

10

2,521

2,928

－

44
26
81

(Unit: million yen)Three months ended
June 30, 2023
Extraordinary income
Gain on sales of non-current assets
Gain on extinguishment of tie-in shares
Other

Three months ended
June 30, 2024
18
0

0
22
0

18

24

41
5
0

18
18
30
4

Total extraordinary losses
Profit before income taxes

47
2,492

71
2,880

Income taxes-current

1,706
-746

1,940
-869

959

1,070

1,533
3

1,809
4

1,529

1,804

－

Total extraordinary income
Extraordinary loss
Loss on disposal of non-current assets
Impairment losses
Loss on valuation of investment securities
Other

－

Income taxes-deferred
Total income taxes
Net profit
Profit attributable to non-controlling interests
Profit attributable to owners of parent-7-

Quarterly Consolidated Statements of Comprehensive Income[Period for the Consolidated First Quarter]
Three months ended
June 30, 2023

(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

1,533

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, 2024

1,809

3,662

208

46

14

3,708
5,241

223
2,032

5,238

2,028

3

4

(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.
(Application of the Accounting Standard for Current Income Taxes, etc.)
The Accounting Standard for Current Income Taxes (ASBJ Statement No. 27, October 28, 2022; hereinafter,“Revised Accounting Standard 2022”), etc. have been applied from the beginning of the first quarter of the fiscal
year ending March 31, 2025. Revisions concerning the categories in which current income taxes should berecorded (taxes on other comprehensive income) are subject to the transitional treatment set forth in the proviso
of paragraph 20-3 of the Revised Accounting Standard 2022 and the transitional treatment set forth in the proviso
of paragraph 65-2 (2) of the Guidance on Accounting Standard for Tax Effect Accounting (ASBJ Guidance No.
28, October 28, 2022; hereinafter, “Revised Guidance 2022”). The change in accounting policies had no impact
on the consolidated financial statements for the first quarter under review.
With regard to revisions related to changes in the accounting treatment for consolidated financial statements
when gains/losses on sale of shares, etc. in subsidiaries resulting from transactions between consolidated
subsidiaries are deferred for tax purposes, the Company has applied the Revised Guidance 2022 from the
beginning of the first quarter under review. The change in accounting policies was applied retrospectively to theconsolidated financial statements for the first quarter of the previous fiscal year and the entire previous fiscal year.
The change in the accounting policies had no impact on the consolidated financial statements for the first quarterof the previous fiscal year or the entire previous fiscal year.

-9-

(Segmental Information)
Ⅰ Previous 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
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

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.
Ⅱ This consolidated first quarter (from April 1, 2024 to June 30, 2024)
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

348,207

22,925778

1,132

373,044－

373,044(2) Inter-segment sales

12,336

6

2,126

391

14,861-14,861－

Total

360,544

22,932

2,904

1,523

387,905-14,861

373,044

Segment profit

2,660

-492

369

51

2,588

-309

2,278

（Note）1. The amount of the adjustments for segment profits or losses shows the elimination of internal transactions
and unrealized profit and corporate expenses not attributable to any reportable segment.
2. The amounts for profits or losses in the reportable segments were subsequently adjusted with the amountof operating 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 -

(Notes Concerning Consolidated Statements of Cash Flows)
Quarterly consolidated statements of cash flows for the first quarter of the current fiscal year are not prepared.
Depreciation (Including amortization of intangible assets excluding goodwill.) and goodwill for the first quarterof the current fiscal year are as follows.

Depreciation
Amortization of goodwill

Three months ended
June 30, 2023
1,548 million yen

Three months ended
June 30, 2024
1,406 million yen

67 million yen

62 million yen(Significant Subsequent Events)(Acquisition of Own Shares and Cancellation of Treasury Stock)
The Company has resolved, at a meeting of the Board of Directors held on August 6, 2024, the mattersconcerning the acquisition of own shares pursuant to the provisions of Article 156 of the Companies Act, asapplied by replacing the relevant terms pursuant to the provisions of Article 165, paragraph (3) of the same Act,and to cancel those shares pursuant to the Article 178 of the same Act.
1. Reason for Acquisition of Own Shares
To enhance shareholder return and improve capital efficiency
2. Details of matters related to acquisition
Class of shares to be(1)
Common sharesacquired(2)

Total number of shares tobe acquired

Up to 5,000,000 shares(7.96 % of total number of issued shares (excluding treasury shares))(3)

Total amount of shareacquisition costs¥ 15,000,000,000 (Maximum)(4)

Acquisition period

From August 7, 2024 to March 31, 2025

(5)

Method of acquisition

Market Purchase at the Tokyo Stock Exchange
Some or all orders may not be executed due to market trends, etc.

3．Details of Cancellation
Class of share to be(1)cancelled

Common shares(2)

Total number of shares tobe cancelled

All of the shares acquired as described in 2. above(3)

Planned cancellation date

March 31, 2025

- 11 -