August 1, 2014

To whom it may concern:
TOHO HOLDINGS CO., LTD.
Norio Hamada, President and Representative Director(Tokyo Stock Exchange Securities Code: 8129)
Contact: Katsuya Kato
Director and General Manager ofCorporate Communications Officeand Corporate Planning Office(TEL: 03-6838-2803)

Results of Operations during the First Quarter of Fiscal 2015
The prescription pharmaceuticals market experienced NHI drug price reductions by 2.65% on average on thebasis of NHI drug prices inclusive of the increased portion of the consumption tax effective from April 2014 (or by5.64% on average exclusive of tax) when medical fees and NHI drug prices were revised in April this year. Themarket volume as a whole posted a 3.3% decrease from the previous quarter period (estimated by CRECON
Research & Consulting Inc.) partly due to medical care cost containment measures such as the effort to promote theuse of generic drugs further in the wake of the medical fee revisions, and partly due to the backlash of thelast-minute demand before the consumption tax hike.
Under these circumstances, in the field of pharmaceutical wholesaling operations, the TOHO HOLDINGSGroup boldly promoted proposal-based marketing and sales activities, which are centered on the unique customer
support systems, in order to further strengthen the relationship with medical institutions and expand its fee business.
The Company has been striving to ensure a reasonable selling price formation in which the value of eachprescription pharmaceutical should be reflected, with the ultimate goal of securing appropriate profits. At the sametime, it has been making efforts to improve distribution problems, for purposes of promoting the early conclusionof negotiations, ensuring total value transactions, and correcting the gaps between NHI prices and market prices
and other issues. On the other hand, in the field of dispensing pharmacy operations, the Company has promoted theexpansion of operations and the efficiency in the businesses of its existing subsidiaries, as well as bringing higher
added value to their businesses.
As a result, the Company’s operating results for the consolidated cumulative first quarter of the fiscal year ending
March 2015 recorded 281,479 million yen for net sales (a decrease of 2.7% on a year-on-year basis), 2,911 million
yen for operating income (an increase of 19.4% on a year-on-year basis), 4,676 million yen for ordinary income (anincrease of 11.1% on a year-on-year basis), and 2,759 million yen for net income (an increase of 5.1% on ayear-on-year basis).
1. Results in the first quarter of fiscal 2015 (Consolidated)(1) Comparison with the same period in the previous fiscal year
Unit: million yen, %Ordinary
Quarterly netIncome
Income4,676
2,759First Quarter, Fiscal 2015

281,479

OperatingIncome2,911

First Quarter, Fiscal 2014

289,328

2,437

4,211

2,626

YoY Change-7,848

473

465

132

YoY Change Ratio (%)

97.3

119.4

111.1

105.1

Consolidated

Net Sales1(2) Comparison with the cumulative forecast for the first half of fiscal 2015
Consolidated
First Quarter, Fiscal 2015
Cumulative Forecast for theFirst Half of Fiscal 2015
Progress (%)

Unit: million yen, %Ordinary
Quarterly net
IncomeIncome4,676
2,759

281,479

Operating
Income2,911

594,000

6,500

9,400

5,800

47.4

44.8

49.8

47.6

Net Sales

2. Forecast for fiscal 2015 (Full-year)
There has been no change in our forecast for fiscal 2015 performance, both in the first half and thefull-year period, from the figures announced on May 9, 2014.

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