Note: This document has been translated from the Japanese original for reference purposes only. In the event ofany discrepancy between this translated document and the Japanese original, the original shall prevail.
May 12, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(Under Japanese GAAP)
Company name:
Listing:
Securities code:
URL:
Representative:
Inquiries:

TOHO HOLDINGS CO., LTD.
Tokyo Stock Exchange8129
https://www.tohohd.co.jp/en/
Atsushi Udoh / Representative Director, CEO
Makoto Kawamura / Corporate Officer and General Manager, Corporate Communications andInvestor Relations Division
Telephone:+81-3-6838-2803
Scheduled date of annual general meeting of shareholders:June 29, 2023
Scheduled date to commence dividend payments:
June 9, 2023
Scheduled date to file annual securities report:
June 29, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes (for Institutional Investors and Analysts)(Yen amounts are rounded down to millions, unless otherwise noted.)
1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31,
2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Millions of yen

1,388,565
1,266,171

Note: Comprehensive income% Millions of yen

9.7
4.6

12,813
12,527

Profit attributable toowners of parent

Ordinary profit% Millions of yen

2.3
191.1

19,17618,182% Millions of yen

5.5
76.7

13,63013,379

%

1.9
168.1

For the fiscal year ended March 31, 2023:¥11,592 million[103.3%]
For the fiscal year ended March 31, 2022:¥5,701 million [-29.0%]

Basic earnings
per share
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Ratio of ordinary
Ratio ofprofit to total
operating profit
assetsto net sales
%
%
%
5.6
2.7
0.9
5.6
2.6
1.0

Diluted earnings
Return on equity
per shareYen
196.70189.70Yen
180.67174.48Reference: Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended March 31, 2023: ¥41 million
For the fiscal year ended March 31, 2022: ¥24 million(2) Consolidated financial position

As ofMarch 31, 2023
March 31, 2022

Total assets

Net assets

Millions of yen
715,288702,376

Millions of yen
242,916
241,281

Reference: Equity
As of March 31, 2023:
As of March 31, 2022:¥242,678 million¥240,931 million
1

Equity-to-asset ratio

Net assets per share

%
33.9
34.3

Yen
3,623.81
3,415.50

(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Millions of yen-916,341Millions of yen
4,315-11,032

Fiscal year ended
March 31, 2023
March 31, 2022

Cash and cash
equivalents at end of
periodMillions of yen
Millions of yen-13,060
81,839-4,47390,014

Cash flows fromfinancing activities

2. Cash dividends
Annual dividends per share
First
Second Third Fiscal
quarter- quarter- quarter- yearend
end
end
end
Yen

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024
(Forecast)

Yen

Yen

Yen

Total

Total cash
dividends(Total)Ratio of
Payout ratio dividends to net(Consolidated)assets(Consolidated)

Yen Millions of yen

%

%

－

15.00

－

15.00

30.00

2,116

15.8

0.9

－

16.00

－

16.00

32.00

2,200

16.3

0.9

－

18.00

－

18.00

36.00

19.6

3. Consolidated projected results of operations during fiscal year ending March 31, 2024 (from April 1,
2023 to March 31, 2024)(Percentages indicate the rate of change compared with the preceding fiscal year.)
Profit attributable to Net income
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen％

Yen

First Half

651,000

－

3,800

－

5,000

－

6,700

－

100.05Full year

1,325,000－

11,500－13,800－12,300－183.672

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
Newly included: － companies
Excluded:－ companies(2) 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
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2023
As of March 31, 2022

78,270,142 shares
78,270,142 shares(ii) Number of treasury shares at the end of the period
As of March 31, 2023
As of March 31, 2022

11,302,582 shares
7,729,376 shares(iii) Average number of shares outstanding during the period
Fiscal year ended March 31, 2023
Fiscal year ended March 31, 2022

69,297,318 shares
70,529,419 shares[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Millions of yen

12,794
7,308% Millions of yen

Ordinary profit% Millions of yen

75.1
-35.8

5,579 1,114.3
459
-90.7

Basic earnings
per shareYen
139.32
56.91

Diluted earnings
per shareYen
127.91
52.22

7,260
2,080

Profit% Millions of yen

249.0
-69.6

9,655
4,014

%

140.5
-60.8

(2) Non-consolidated financial position

As ofMarch 31, 2023
March 31, 2022

Total assets

Net assets

Millions of yen
253,452
254,760

Millions of yen
152,299
154,787

Reference: Equity
As of March 31, 2023:
As of March 31, 2022:¥152,153 million¥154,637 million

3

Equity-to-asset ratio

Net assets per share

%
60.0
60.7

Yen
2,271.65
2,191.82

* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* 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 considers
rational at the time of the release of this report, and does not indicate that the Company undertakes to achieve
such results. Actual results may differ significantly from the projections above, due to a variety of factors. As forprecautions regarding the use of the Performance Projections and the conditions underlying the assumptions for
the Performance Projections, refer to Section “1. Summary of Management Results (4) Projections for the Next
Fiscal Year” on Page 4 of the Attached Document.
- The Company plans to hold a briefing on the financial results for institutional investors and analysts on the web
on May 17, 2023. The Company also intends to provide a record of the progress of the session and the outline of
the briefing (voice recording), together with the briefing material, on its website promptly after the briefing.

4Contents of Attached Document
1. Summary of Management Results････････････････････････････････････････････････････････ 2(1) Summary of Management Results for the Current Fiscal Year････････････････････････････････ 2(2) Summary of Financial Position for the Current Fiscal Year･･････････････････････････････････ 3(3) Summary of Cash Flows for the Current Fiscal Year･･･････････････････････････････････････ 44(4) Projections for the Next Fiscal Year････････････････････････････････････････････････････
2. State of the Corporate Group････････････････････････････････････････････････････････････ 5
3. Business Management Policy････････････････････････････････････････････････････････････ 5
4. Basic Idea for Selection of Accounting Standards････････････････････････････････････････････ 6
5. Consolidated Financial Statements and Main Note･･･････････････････････････････････････････ 7(1) Consolidated Balance Sheets･･････････････････････････････････････････････････････････ 7(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income･････････ 9(3) Consolidated Statement of Changes in Equity･････････････････････････････････････････････ 12(4) Consolidated Statement of Cash Flows･････････････････････････････････････････････････ 14(5) Notes to Consolidated Financial Statements･･････････････････････････････････････････････ 16(Notes Concerning Premise of a Going Business)･･････････････････････････････････････････ 16(Change in Scope of Consolidation or Application of Equity Method)･････････････････････････ 16(Change in the Accounting Policies)････････････････････････････････････････････････････ 16(Segment Information)･･････････････････････････････････････････････････････････････ 16(Amounts per Share)････････････････････････････････････････････････････････････････ 19
19(Significant Subsequent Events)･･････････････････････････････････････････････････････
6. Unconsolidated Financial Statements･････････････････････････････････････････････････････ 20(1) Balance Sheets･････････････････････････････････････････････････････････････････････ 20(2) Statements of Income････････････････････････････････････････････････････････････････ 22(3) Statements of Changes in Equity･･･････････････････････････････････････････････････････ 24

1

1. Summary of Management Results(1) Summary of Management Results for the Current Fiscal Year
The prescription pharmaceuticals market in the consolidated fiscal year ended March 31, 2023 continued to beaffected by measures to curtail medical expenses, such as the lowering of NHI drug prices by 6.69% on a drug
cost basis in the revision of the medical payment system implemented in April 2022. However, the market showed
positive growth due to the sales expansion of COVID-19-related products, including therapeutic agents and test
kits, under the circumstances of a further spread of infections in the seventh and eighth waves. The Group also
posted increases in both sales and profit due to the significant contribution from sales of COVID-19-related
products as well as growth in sales of cancer drugs and specialty pharmaceuticals. With regard to the customer
support systems, we have newly released "FutureENIF-WEB," the online version of our drug ordering andinformation terminal "ENIF." Furthermore, we have significantly revised the functions of our online medical careand medication instruction system "KAITOS" according to the needs of medical institutions and released an
application version to improve the convenience of patients. Meanwhile, in line with the growing need for medical
appointments and online medical services due to the COVID-19 pandemic, an increasing number of medical
institutions are enhancing their websites in conjunction with the introduction thereof. Against this backdrop, we
have strengthened our proposal activities for the web service “Byouin-Navi."
In the logistics division, TBC Hokuriku (Kanazawa City, Ishikawa Prefecture), a key logistics facility forprescription pharmaceuticals in the Hokuriku area, started operation in May 2022. Moreover, with the favorable
location and high functionality of the TBC DynaBASE rated highly by pharmaceutical manufacturers, the numberof contracts not only for wholesale distribution but also for manufacturer distribution increased. In order to stably
supply refrigerated or frozen products that require strict temperature control and transportation, we have newly
developed a constant-temperature transportation system "SALM FZ" that can handle temperatures from -25°C to+4°C. Together with SYSMEX CORPORATION, we have also started operating dry ice-free transportation fromthe perspective of sustainability and environmental consideration in the supply of precision control samples that
require advanced frozen transport.
As one of the medium-and long-term management strategies, we are incorporating leading-edge technologies ingrowth fields and promoting collaboration without boundaries. As part of such efforts, we agreed with the
National Institute of Advanced Industrial Science and Technology to establish a cooperative research laboratory in
April 2023 and conduct joint research in a bid to solve various issues related to access to medical care.
With regard to initiatives to improve profitability and enhance corporate value, we conducted an extensive
review of our organization and personnel, including the consolidation of sales offices, with the aim of improving
productivity by optimizing Group management and streamlining the organization. In June 2022, the number of
directors was reduced from 14 to 9 in order to build a flexible management system. They include one female andthree outside directors.
In addition, the Sustainability Promotion Committee was newly established to further promote sustainablegrowth and solve social issues. Four companies, TOHO HOLDINGS CO., LTD., TOHO PHARMACEUTICAL, J
MIRAIMEDICAL, and Nextit Research Institute, Inc., were certified as Health & Productivity Management
Outstanding Organizations 2023 in March this year.
The Company’s consolidated operating results for fiscal year ended March 31, 2023 recorded 1,388,565 million
yen for net sales (an increase of 9.7% on a year-on-year basis), 12,813 million yen for operating profit (an increaseof 2.3% on a year-on-year basis), 19,176 million yen for ordinary profit (an increase of 5.5% on a year-on-yearbasis), and 13,630 million yen for profit attributable to owners of parent (an increase of 1.9% on a year-on-yearbasis).
On March 24, 2023, Kyushu Toho Co., Ltd., our consolidated subsidiary, received a cease and desist order anda surcharge payment order from the Japan Fair Trade Commission for violations of the Antimonopoly Act inconnection with bidding by the Headquarters of the National Hospital Organization for ethical pharmaceuticals
that were to be purchased by hospitals located in the Kyushu area. The entire Group will continue to promotesound and transparent business activities to restore trust.
The outline of business segment operating results are as follows.
In the pharmaceutical wholesaling business, we continued our efforts to deliver COVID-19-related products. We
also worked to adjust shipments of generic drugs due to violations of Good Manufacturing Practices (GMP) bygeneric drug manufacturers and to adjust shipments of analgesic antipyretic drugs due to tight supply and demandbalance. Sales of specialty pharmaceuticals and other products that can only be delivered by certain wholesalers are
growing steadily, and increased demand for COVID-19 drugs and test kits is also contributing significantly to our
performance. With regard to price negotiations with medical institutions, we worked to secure appropriate profits
by further promoting price negotiations commensurate with the value of individual products and distribution costs.
As for the customer support systems, we launched new online promotions using remote detailing, and actively
engaged in proposal activities for the online medical care and medication instruction system “KAITOS,” the Initial
Examination Reservation Service, centralized administration system of pharmacy operations "Mizar", and othersystems.
2

As a result, the pharmaceutical wholesaling business posted net sales of 1,336,766 million yen (an increase of
9.9% on a year-on-year basis) and segment profit (operating profit) of 10,443 million yen (an increase of 4.8% on a
year-on-year basis) for the consolidated fiscal year under review.
In the dispensing pharmacy business, we implemented opening of new stores and closure on the basis ofprofitability while responding to the revision of dispensing fees.
Also in a bid to provide high-quality medical services, we worked on the use of digital tools such as medication
follow-up on social media, online medication instruction, and prescription transmission applications, as well as
the training of family pharmacists. Since October 2022, Kyoso Mirai Akiho Pharmacy in Sakata City, Yamagata
Prefecture, has been participating in the "Model Project for Electronic Prescription" led by the Ministry of Health,Labour and Welfare to collect examples of the use of electronic prescriptions and relevant issues. Furthermore, inorder to contain COVID-19 as soon as possible, while we implemented thorough measures against infectious
diseases at our stores, we also sold antigen test kits and conducted free PCR and antigen tests in response to thegovernment’s project to make PCR and other tests free.
As a result, the dispensing pharmacy business posted net sales of 92,346 million yen (an increase of 0.6% on a
year-on-year basis) and segment profit (operating profit) of 2,431 million yen (a decrease of 18.0% on a year-onyear basis).
In the pharmaceutical manufacturing and sales business, we worked to ensure a stable supply of high-quality,
high-value-added generic drugs through thorough quality control based on a proprietary verification systemdeveloped in-house and a planned production system based on demand. However, a surge in demand caused by
shipment adjustments by other generic drug manufacturers affected some of the Company’s products.
In addition, we continued to expand our product lineup by launching 3 ingredients and 5 products of new genericdrugs during the consolidated fiscal year under review. As of the end of March 2023, the product lineup wascomposed of 89 ingredients and 208 products. As a result, the pharmaceutical manufacturing and sales businessposted net sales of 9,944 million yen (an increase of 9.4% on a year-on-year basis) and segment profit (operating
profit) of 864 million yen (a decrease of 2.3% on a year-on-year basis).
In the other peripheral businesses, net sales amounted to 6,635 million yen (an increase of 16.1% on a year-onyear basis) and segment profit (operating profit) was 621 million yen (an increase of 57.2% on a year-on-yearbasis).
（Note） Segment sales include inter-segment transactions.
(2) Summary of Financial Position for the Current Fiscal Year(i)Assets
Consolidated current assets as of the end of March 2023 increased 4.0% from the end of the previous
consolidated fiscal year to 533,519 million yen, due mainly to an increase accounts receivable-trade of 14,521
million yen, an increase in merchandise and finished goods of 11,048 million yen, and a decrease in cash anddeposits of 8,055 million yen in other.
Non-current assets as of the end of March 2023 decreased 4.0% from the end of the previous year to 181,768
million yen, due mainly to a decrease in property, plant and equipment of 4,382 million yen, and a decrease ininvestments securities of 6,137 million yen.
As a result, consolidated total assets as of the end of March 2023 increased 1.8% from the end of the previous
consolidated fiscal year to 715,288 million yen.
(ii)Liabilities
Current liabilities increased 9.3 % from the end of the previous consolidated fiscal year to 440,188 million yen,owing to an increase in notes and accounts payable-trade of 15,128 million yen, and an increase in current portionof bonds payable of 20,003 million yen in other.
Non-current liabilities decreased 44.8 % from the end of the previous consolidated fiscal year to 32,183 million
yen with a decrease in bonds payable of 20,023 million yen, and a decrease in long-term borrowings of 6,124
million yen.
As a result, total liabilities increased 2.4% year-on-year to 472,372 million yen.
(iii)Net Assets
Total net assets increased 0.7% from the end of the previous consolidated fiscal year to 242,916 million yen,with an increase in retained earnings of 11,277 million yen, an increase in treasury shares of 7,388 million yen,
and a decrease in valuation difference on available-for-sale securities of 2,057 million yen.

3

(3) Summary of Cash Flows for the Current Fiscal Year
Cash and cash equivalents (hereinafter referred to as “cash”) during this consolidated fiscal year decreased
by 8,174 million yen from the end of the previous consolidated fiscal year. As a result, the balance at the end of
this consolidated fiscal year totaled 81,839 million yen. The following describes the three categories of
consolidated cash positions during this consolidated fiscal year, as well as the factors responsible.
(i) Cash Flows from Operating Activities
Cash flow from operating activities was an outflow of 9 million yen (a decrease of 16,351 million yen on a
year-on-year basis). Although inflow was secured by some positive factors such as net profit before income
taxes of 20,420 million yen, and an increase in trade payables of 14,685 million yen, these were somewhat
offset by negative factors including an increase in trade receivables of 14,634 million yen, an increase ininventories of 10,854 million yen, and income taxes paid of 8,986 million yen.
(ii) Cash Flows from Investing Activities
Cash flow from investing activities was an inflow of 4,315 million yen (an increase of 15,348 million yen
from the previous fiscal year). Although inflow was secured by some positive factors such as proceeds fromsales of property, plant and equipment of 1,807 million yen, and proceeds from sale and redemption of
investment securities of 5,866 million yen, these were somewhat offset by negative factors including purchasesof property, plant and equipment of 1,639 million yen, and purchases of intangible assets of 880 million yen.
(iii) Cash Flows from Financing Activities
Cash flow from financing activities was an outflow of 13,060 million yen (a decrease of 8,586 million yen
from the previous fiscal year). Positive factor, proceeds from long-term borrowings of 3,610 million yen, wassomewhat offset by negative factors including repayments of long-term borrowings of 6,395 million yen,purchase of treasury shares of 7,390 million yen, and dividends paid of 2,187 million yen.
(Reference) Trends in key indicators of cash flows
Fiscal year
Fiscal year
Fiscal year
Fiscal year
Fiscal year
ended March ended March ended March ended March ended March
31, 2019
31, 2020
31, 2021
31, 2022
31, 2023
Shareholder’s Equity Ratio
32.2
34.4
34.7
34.3
33.9
(%)
Shareholder’s Equity Ratio
28.4
23.8
21.0
18.6
22.0
at Market Value (%)
Ratio of cash flows to
254.9
394.5
523.2
259.4
－
interest-bearing debts (%)
Interest Coverage Ratio
179.6
198.2
107.1
209.5
－
(times)Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio at market value: Total market value of stock / Total assets
Ratio of cash flows to interest-bearing debts: Interest-bearing debts / Cash flows from operating activities
Interest coverage ratio: Cash flows from operating activities / Interest paid
1. All indicators are calculated using consolidated financial data.
2. The total market value of stock is calculated by multiplying the closing price of stock at the end of the fiscal
year by the number of shares outstanding at the end of the fiscal year (after deducting treasury shares).
3. Cash flows from operating activities is the “Cash Flows from Operating Activities” in the Consolidated
Statements of Cash Flows. Interest-bearing debt is all the interest-bearing debts in the Consolidated Balance
Sheets. Interest paid is the interest payments in the Statements of Consolidated Cash Flows.
4. Neither ratio of cash flows to interest-bearing debts of Fiscal year ended March 31, 2023 nor interest
coverage ratio is written due to negative cash flows from operating activities.
(4) Projections for the Next Fiscal YearIn the prescription pharmaceuticals market that the Company is part of, off-year drug price revisions were
implemented in April 2023, lowering drug prices for approximately 9,300 products. In addition, owing to thedowngrading of the legal status of COVID-19 on May 8, 2023 to Class 5, the future business environment remains
uncertain. This is caused by the impact on the infection situation and changes in the medical care delivery system
due to further increased social activities, the influence on physician visits due to changes of bearers for relevant
treatment and testing costs, and so on. Under these circumstances, the Group has formulated the Medium-termManagement Plan 2023-2025 “Create the Next Generation” with the fiscal year ending March 31, 2026 as the
final year, and will forge ahead with measures to achieve continuous growth and increase profitability over the
medium to long term. For details, please refer to the “Notice Regarding Formulation of the Medium-term
4

Management Plan 2023-2025 “Create the Next Generation” that is released today.
Accordingly, for the next fiscal year ending March 31, 2024, the Company forecasts net sales of 1,325,000
million yen, operating profit of 11,500 million yen, ordinary profit of 13,800 million yen, and profit attributable toowners of parent of 12,300 million yen.
Revenues from information service fees, which have previously been recorded as commission income for nonoperating income, are important revenues earned from pharmaceutical manufacturers and other customers as partof the Group's sales activities and are expected to become more important going forward in line with changes in
the information business environment. For this reason, we have decided to include such revenues in net sales fromthe fiscal year ending March 31, 2024, and the change in presentation method has been reflected in the
consolidated earnings forecasts for the said year.
2. State of the Corporate GroupFor the purposes hereof, the Group (TOHO HOLDINGS CO., LTD. and its associated companies) or simply the“Group” consists of TOHO HOLDINGS CO., LTD. or simply the “Company,” 60 subsidiaries, and 11 affiliates.
The Group’s primary business operations and their positions, and their relationships with the segments classified
by types of business operations are described below.
The following 4 divisions are the same as the categories of the segments described in “Segment Information”.
(1) Pharmaceutical Wholesaling Business
The Company’s 4 consolidated subsidiaries (TOHO PHARMACEUTICAL CO., LTD., Kyushu Toho Co.,
Ltd., SAYWELL inc., and KOYO Co., Ltd.), 7 unconsolidated subsidiaries and 2 affiliates (SAKAIMEDICINES CO., LTD and other one affiliate) purchase pharmaceuticals and health-related products, mainly
from pharmaceutical manufacturers, for distribution primarily to hospitals, clinics, and dispensing pharmacies.
As for the products purchased from pharmaceutical manufacturers, etc., the consolidated subsidiaries
mentioned above supply these products to 28 subsidiaries (PHARMA DAIWA, J.MIRAIMEDICAL, Shimizu
Pharmacy, PHARMA MIRAI INC., SEIKO MEDICAL BRAIN, Strelitzia, VEGA PHARMA, Cure co., Ltd.,AOBADO, KOSEI, and other 18 subsidiaries) and 4 affiliates.
Toho System Service Co., Ltd. (a consolidated subsidiary) is mainly engaged in mission-critical system
operations such as data processing for the Kyoso Mirai Group (the Company, affiliates which are mainly
engaged in wholesale sales of pharmaceuticals, and companies that have a business tie-up with the Group).
SQUARE･ONE Co., Ltd. (a consolidated subsidiary) is engaged in real estate agency business.
(2) Dispensing Pharmacy Business
The Company’s 10 consolidated subsidiaries (PHARMA DAIWA, J.MIRAIMEDICAL, Shimizu Pharmacy,
PHARMA MIRAI INC., SEIKO MEDICAL BRAIN, Strelitzia, VEGA PHARMA, Cure co., Ltd., AOBADO,
and KOSEI), 18 unconsolidated subsidiaries and 4 affiliates are primarily engaged in health insurance
dispensing pharmacies business.
PharmaCluster Co., Ltd (a consolidated subsidiary) is engaged in the management of the dispensing pharmacies
business.
(3) Pharmaceutical Manufacturing and Sales Business
The Company’s 1 consolidated subsidiary (KYOSOMIRAI PHARMA CO., LTD.) and 2 affiliates (AYUMI
Pharmaceutical Holdings, AYUMI Pharmaceutical Corporation) manufacture and sell pharmaceuticals.
KYOSOMIRAI PHARMA CO., LTD. (a consolidated subsidiary) manufactures and sells generic drugs andproduces injection drugs on consignment. Generic drugs are mainly supplied to TOHO PHARMACEUTICAL
CO., LTD. (our consolidated subsidiary)(4) Other Peripheral Businesses
The Company’s 5 consolidated subsidiaries (Tokyo Research Center of Clinical Pharmacology Co., Ltd.,ALF.Inc, Nextit Research Institute, Inc., eKenkoshop Corporation and K.K.eHealthcare), 12 unconsolidated
subsidiaries and 3 affiliates are engaged in peripheral businesses related to the above businesses.
3. Business Management Policy
Setting “Total Commitment to Good Health” as our corporate slogan and under the mission statement,“Working in harmony with society and customers, and jointly creating new value through the provision of original
services, thereby contributing to the improvement of medical services for, and health of, people around the world”,
the Group always places ultimate priority on people who wish to be healthy, makes efforts to create customer
value in order to increase customer satisfaction, and aims to improve corporate value and establish a corporate
brand in the market.
Aiming to develop and maintain sustainable social security systems amidst extending healthy life expectancy,
super-aging society, and decrease in the total population in Japan, the government is currently moving ahead withmeasures to build a “community comprehensive healthcare system” and curtail medical expenses such as
introducing the once-yearly NHI drug price revision.
5

In recent years, there have been many new expensive drugs that require strict control, such as gene therapy
pharmaceuticals and regenerative medical products, and so the pharmaceutical modality has changed significantly.
Accordingly, it has become necessary to establish sales and logistics systems that can respond to the diversity ofpharmaceutical and other products. As seen above, the environment surrounding the healthcare andpharmaceutical industries has been changing drastically. Under these circumstances, the Group has formulated theMedium-term Management Plan 2023-2025 “Create the Next Generation” with a view to, as a corporate groupengaged in the areas of medical care, healthcare, and nursing care, contributing to extending the healthy life
expectancy of men and women in Japan and to establishing and maintaining sustainable social security systems,
thereby continuing to be supported by society. In order to realize the vision of the Group, we will create afoundation that leads to the next generation during the fiscal years under this Medium-term Management Plan.
In addition, with the aim of achieving stable and long-term corporate growth and a sustainable society, theGroup identifies issues in the areas of the environment, society, governance, and compliance, and promotes
sustainability management to resolve them.
As a company responsible for distribution of pharmaceuticals and other products, we regard coping with both
environmental conservation and business activities as our most important issue, and we are working to improvedelivery efficiency through such means as direct delivery from distribution centers to customers, optimization ofdelivery frequency, and joint distribution.
We will also foster a free and active corporate culture and maximize human capital value by utilizing a wide
range of human resources regardless of gender, nationality, age, etc., developing human resources throughparticipation in various training programs and projects, and respecting the human rights and personality of each
employee. Meanwhile, in order to carry out sound business activities, we will further strengthen governance andall executives and employees will give top priority to "compliance with relevant laws and regulations" and"compliance and risk management."
In addition, in recognition of its public nature as a medical and health-related company and its mission as asocial infrastructure, the Company will continue to invest in measures against earthquakes and pandemics, andother measures necessary for the stable supply of pharmaceuticals, based on the trust and sympathy of eachstakeholder, in order to sustain the medical care system even in an emergency.
Through the implementation of the above-mentioned measures, we will strive to become a corporate grouprelied upon and continuously supported by all stakeholders including people who wish to be healthy, customers,
local communities, shareholders and employees.
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.

65. Consolidated Financial Statements and Main Note
(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Merchandise and finished goods
Raw materials and supplies
Purchase rebates receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Previous fiscal year
(As of March 31, 2022)

7(Unit: million yen)
Current fiscal year
(As of March 31, 2023)

94,256
2,212
299,389
80,169194
12,73324,442-290
513,107

86,201
2,312
313,910
91,217206
13,407
26,639-376
533,519

35,951
315
11,965
43,168914
2,337
94,65336,025279
10,23542,261
999
469
90,270

733
4,443
5,177

514
4,863
5,377

78,742
2,772
1,960
7,814
-1,85189,438189,268
702,376

72,6042,344
2,102
11,016-1,947
86,120181,768
715,288

Previous fiscal year
(As of March 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term borrowings
Current portion of bonds payable
Current portion of long-term borrowings
Lease liabilities
Income taxes payable
Contract liabilities
Accrued expenses
Provision for bonuses
Provision for bonuses for directors
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land revaluation
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
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

8(Unit: million yen)
Current fiscal year
(As of March 31, 2023)

370,012
247
－
6,298
596
5,416
206
2,297
3,252
53
4
14,435402,819

385,140163
20,003
9,637
590
5,152
259
2,102
3,214
42
40
13,842
440,188

20,023
12,596977
14,236
757
2,423
2,741
3,639
879
58,275461,095

－
6,472
1,023
12,434
756
2,508
2,747
4,849
1,391
32,183472,372

10,64949,228180,254-15,719
224,413

10,64949,146
191,531-23,107228,219

20,792

18,734-4,273-4,276

16,51814,458149
199
241,281702,376146
92
242,916715,288(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Previous fiscal year
(From April 1, 2021 toMarch 31, 2022)
1,266,171(Unit: million yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)
1,388,565

Cost of sales

1,157,484

1,277,750

Gross profit

108,687

110,814

Remuneration, salaries and allowances for
directors

43,413

43,162

Provision for bonuses

3,216

3,159

Provision for bonuses for directors

53

42

Retirement benefit expenses

274

275

Welfare expenses

7,754

7,806

Vehicle expenses

1,065

1,070

Provision of allowance for doubtful accounts

-147

223

Depreciation

6,087

5,767

323

294

Rent expenses

8,042

7,990

Taxes and dues

2,088

2,083

Non-deductible temporary paid consumption tax
expense

6,228

6,330

Other

17,757

19,796

Total selling, general and administrative expenses

96,15998,000Operating profit

12,527

12,813

Interest income

6458

Dividend income

1,405

1,269

Commission income

3,154

3,292

Rental income from real estate

832

833

Share of profit of entities accounted for using
equity method

24

41

Other

724

1,369

6,205

6,864

Interest expense

76

72

Commitment fees

13

13

Real estate lease expenses

197

209

Other

264

206

Total non-operating expenses

551

502

18,182

19,176

Net sales

Selling, general and administrative expenses

Amortization of goodwill

Non-operating income

Total non-operating income
Non-operating expenses

Ordinary profit

9

(Unit: million yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)

Previous fiscal year
(From April 1, 2021 toMarch 31, 2022)
Extraordinary income
Gain on sales of non-current assets

185

744

Gain on sale of investment securities
Reversal of provision for loss on Antimonopoly
Act
Other

2,720

3,545

162

－

23

19

Total extraordinary income

3,092

4,310

Loss on disposal of non-current assets

113

118

Impairment losses

579

165

Loss on valuation of investment securities

413

334

Provision for loss on Antimonopoly Act

－

1,210

Loss on early termination

－

608

Other

56

629

Total extraordinary losses

1,163

3,066

Profit before income taxes

20,11020,420

Income taxes - current

7,180

7,807

Income taxes - deferred-484-1,038

Total income taxes

6,695

6,769

Net profit

13,415

13,65035

1913,37913,630Extraordinary losses

Profit attributable to non-controlling interests
Profit attributable to owners of parent

10

Consolidated Statement of Comprehensive Income
Previous fiscal year
(From April 1, 2021 toMarch 31, 2022)
13,415(Unit: million yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)
13,650-7,692-2,101-22

43-7,714-2,057

Comprehensive income

5,701

11,592Comprehensive income attributable to:Comprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

5,665

11,57335

19

Net profit
Other comprehensive income
Valuation difference on available-for-salesecurities
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income11(3) Consolidated Statement of Changes in Equity
Previous fiscal year (From April 1, 2021 to March 31, 2022)(Unit: million yen)
Shareholders’ equity

Share capital
Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Change in scope of consolidation
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

10,649

CapitalsurplusRetainedearnings

49,378168,872

Treasury shares-15,784-19
10,64949,378-4-146

168,852-19-15,784-2,116

13,37913,379
-0
65

245

-0
61
99
－

-107
-150
49,228213,097-2,116－－
10,649Total
shareholders’equity213,117

11,401
180,254-107
64-15,719

11,315
224,413

Accumulated other comprehensive income
Valuation
Total
Share
Nondifference on Revaluation accumulated acquisition controlling Total net
assetsotheravailable-for- reserve forinterests
rightscomprehensive
sale
land
securities
incomeBalance at beginning of the period
28,506-4,38024,125162－ 237,405
Cumulative effects of changes in-19
accounting policies
Restated balance
28,506-4,38024,125162－ 237,385
Changes during period
Dividends of surplus-2,116
Profit attributable to owners of
13,379parentPurchase of treasury shares-0
Disposal of treasury shares
61
Change in scope of consolidation
99
Purchase of shares of－
consolidated subsidiaries
Reversal of revaluation reserve-107
for landNet changes in items other than
-7,714107-7,606-13
199-7,420shareholders' equity
Total changes during period-7,714107-7,606
-13
199
3,895
Balance at end of period
20,792-4,273
16,518149
199 241,281

12

Current fiscal year (From April 1, 2022 to March 31, 2023)(Unit: million yen)
Shareholders’ equity

Share capital
Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Change in scope of consolidation
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

Balance at beginning of period
Cumulative effects of changes inaccounting policies
Restated balance
Changes during period
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Change in scope of consolidation
Purchase of shares of
consolidated subsidiaries
Reversal of revaluation reserve
for landNet changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

10,649

CapitalsurplusRetainedearnings

49,228Treasury shares

180,254-15,719

Total
shareholders’equity224,413－
10,64949,2280－－

180,254-15,719

224,413-2,187-2,187

13,63013,630-7,3902-7,390
2
-169

-169

-82

-82
2

－
10,649-82
49,1462

11,277
191,531-7,388-23,107

3,806
228,219

Accumulated other comprehensive income
Valuation
Total
Share
Nondifference on Revaluation accumulated acquisition controlling Total net
assetsotheravailable-for- reserve forrightsinterests
comprehensive
sale
land
securities
income20,792-4,273
16,518149
199 241,281－
20,792-4,273

16,518149

199

241,281-2,187
13,630-7,390
2
-169
-82
2

-2,057-2-2,060-2-107-2,171-2,057
18,734-2-4,276-2,06014,458

-2
146

-107
92

1,635
242,91613

(4) Consolidated Statement of Cash Flows
Previous fiscal year
(From April 1, 2021 toMarch 31, 2022)(Unit: million yen)
Current fiscal year
(From April 1, 2022 toMarch 31, 2023)

20,110
6,634
579
323

20,420
6,119
165
294

80

61

-227

－

65

-37

-28

-11

-222

181

-1,47076-1,327
72

-72

-626

-2,299-2,942-16,045-3,859-5,063
13,0404,850-14,634-10,854-1,963
14,685
1,812

1,798

-1,726-4,447-4,125

Subtotal

13,823

5,562Interest and dividend received
Interest paid
Income taxes paid
Payment for deposit
Others, net

1,454
-78
-3,205
－
4,347

1,334
-71
-8,986-2,554
4,705

Net cash provided by operating activities

16,341-9Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in retirement benefit
liability
Increase (decrease) in provision for sales
returns
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors
Increase (decrease) in allowance for doubtful
accounts
Interest and dividend income
Interest expense
Loss (gain) on sales and retirement of noncurrent assets
Loss (gain) on sales and valuation of
investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
Increase (decrease) in accrued consumption
taxes
Other, net

14

(Unit: million yen)Previous fiscal year Current fiscal year
(From April 1, 2021 (From April 1, 2022
to March 31, 2022) to March 31, 2023)
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchases of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchases of intangible assets
Purchases of investment securities
Proceeds from sales and redemption of investment securities
Purchase of shares of subsidiaries and associates
Proceeds from sale of shares of subsidiaries and associates
Payments for acquisition of businesses
Payments for asset retirement obligations
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchases of treasury shares
Repayments of finance lease liabilities
Dividends paid
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
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 in cash and cash equivalents resulting from merger
Increase (decrease) in cash and cash equivalents resulting fromchange in scope of consolidation
Cash and cash equivalents at end of period

15-1,142
1,165-3,621
1,009-581-1,063
5,243-11,095
146
-532
-56
-918
364
50

-1,124
1,069-1,639
1,807
-880
-445
5,866
-45
10
-105
-14

-11,032

4,315

1,037
－
-2,780-0-614-2,116-93
3,610-6,395-7,390-394-2,187－-209-4,473-13,060

835-8,75488,88290,014

－

146

296

432

90,014

81,839－331-513

(5) Notes to Consolidated Financial Statements(Notes Concerning Premise of a Going Business)
This disclosure is not applicable.
(Change in Scope of Consolidation or Application of Equity Method)
Strelitzia, which was the non-consolidated subsidiaries in the previous fiscal year, has been included in thescope of consolidation from the current fiscal year under review as its importance increased.
(Change in the Accounting Policies)
The Group decided to adopt the Implementation Guidance on Accounting Standard for Fair Value
Measurement (ASBJ Guidance No. 31, June 17, 2021, hereinafter referred to as "Implementation Guidance on
Accounting Standard for Fair Value Measurement") at the beginning of the consolidated fiscal year under review,
and in accordance with the transitional treatment set forth in Paragraph 27-2 of the Implementation Guidance on
Accounting Standard for Fair Value Measurement, the new accounting policies set forth in the Implementation
Guidance on Accounting Standard for Fair Value Measurement shall be applied into the future. There is no
impact on the consolidated financial statements.
(Segment Information)
1. Outline of reportable segments(1) Method for determining reportable segment
The reportable segments of the Company are those business units included in the Company for which
separate financial information is available and which are subject to regular review by the Board of Directors sothat it can make decisions about resources to be allocated to them as well as assess their business performance.
The Group has put the pharmaceutical wholesaling and dispensing pharmacies businesses under the controlof respective management companies. Each management company formulates comprehensive domestic
strategies, while operating companies are engaged in actual operations.
Meanwhile, in the pharmaceutical manufacturing and sales business, other peripheral businesses, theCompany and respective operating companies work together in formulating comprehensive domestic strategies
as well as in actual operations.
Accordingly, the Group consists of business segments that are based on sales of prescription pharmaceuticals,
medical care-related products and services, etc. and has four reportable segments, namely Pharmaceutical
Wholesaling, Dispensing Pharmacy, Pharmaceutical Manufacturing and Sales, and Other Peripheral
Businesses.
(2) Types of products and services belonging to each reportable segment
The pharmaceutical wholesaling business sells pharmaceuticals, narcotics, reagents, etc., and medical devices.
The dispensing pharmacy business operates health insurance pharmacy, support home medical care services,and sells pharmaceuticals. The pharmaceutical manufacturing and sales business manufactures and sells
generic drugs, and manufactures injection drugs on consignment. The other peripheral businesses are
peripheral businesses related to the above businesses.
2. The calculation method of net sales, profits or losses, assets and other items by reportable segment
The accounting method used for the reportable segments is generally the same as that used in the preparationof the consolidated financial statements.
Reportable segment profit is based on operating profit. The inter-segment internal net sales or transfers are
based on prevailing market prices.

16

3. Information about sales, profit or loss, asset and other items by reportable segment
Previous fiscal year (from April 1, 2021 to March 31, 2022)(Unit: million yen)

Reportable segments
Other
Pharmaceutical Dispensing Pharmaceutical
Manufacturing
Peripheral
Wholesaling Pharmacy
and Sales
Businesses

Total

Adjustments Consolidated
total(Note 1)
(Note 2)

Net sales(1) Sales to externalcustomers(2) Inter-segment
sales

1,168,155

91,786

1,899

4,329 1,266,171

47,864

14

7,193

1,388

Total

1,216,019

91,801

9,093

Segment profit

9,967

2,963

884

395

Segment assets

535,156

54,23017,796

Depreciation

3,562

902

Amortization of
goodwill

84

Impairment losses―

1,266,171

56,460-56,460―

5,717 1,322,632-56,460

1,266,171

14,211-1,684

12,527

5,580

612,763

89,612

702,376

180

406

5,052

1,581

6,634

110

―

129

323

―

323

439

140

―

―

579

―

579

1,640

―

11,090―12,730―12,730

221

222

―

290

733

―

733

3,719

444

126

199

4,489

-9

4,480

Other items

Investment in an
affiliate accounted
for by the equity
methodUnamortizedbalance of goodwill
Capitalexpenditures(Note) 1. Adjustments comprised the following items:(1) The adjustment amounts of segment profits represented the elimination of inter-segment transactions,
unrealized profit, and corporate expenses not allocated to any reportable segment.
(2) The adjustment amounts of segment assets included 151,421 million yen of the corporate assets thatare not allocated to any business segment, in addition to the elimination of inter-segment transactions.
The corporate assets mainly consist of surplus funds under management (cash and deposits) and longterm investment funds (investment securities and other).
2. The amounts of segment profit were subsequently adjusted with the amount of operating profit in theConsolidated Statements of Income.

17

Current fiscal year (from April 1, 2022 to March 31, 2023)(Unit: million yen)

Reportable segments
Other
Pharmaceutical Dispensing Pharmaceutical
Manufacturing
Peripheral
Pharmacy
Wholesaling
and Sales
Businesses

Total

Adjustments Consolidated
total(Note 1)
(Note 2)

Net sales(1) Sales to externalcustomers(2) Inter-segment
sales

1,289,136

92,3372,105

4,985 1,388,565

47,630

8

7,839

1,650

Total

1,336,766

92,346

9,944

Segment profit

10,443

2,431

864

621

Segment assets

562,837

55,845

18,123

Depreciation

3,198

922

Amortization of
goodwill

55

Impairment losses―

1,388,565

57,128-57,128―

6,635 1,445,694-57,128

1,388,565

14,360-1,547

12,813

5,571

642,378

72,910715,288

187

206

4,515

1,604

6,119

109

―

129

294

―

294

24

136

―

4

165

―

165

1,744

―

11,068―12,8120

12,813

165

186

―

161

514

―

514

2,286

584

135

191

3,198

111

3,309

Other items

Investment in an
affiliate accounted
for by the equity
methodUnamortizedbalance of goodwill
Capitalexpenditures(Note) 1. Adjustments comprised the following items:(1) The adjustment amounts of segment profits represented the elimination of inter-segment transactions,
unrealized profit, and corporate expenses not allocated to any reportable segment.
(2) The adjustment amounts of segment assets included 139,174 million yen of the corporate assets thatare not allocated to any business segment, in addition to the elimination of inter-segment transactions.
The corporate assets mainly consist of surplus funds under management (cash and deposits) and longterm investment funds (investment securities and other).
2. The amounts of segment profit were subsequently adjusted with the amount of operating profit in theConsolidated Statements of Income.

18

(Amounts per Share)Previous fiscal year

Current fiscal year

(From April 1, 2021 to March 31, 2022)

Net asset per share(From April 1, 2022 to March 31, 2023)

3,415.50 yen

3,623.81 yen

Basic earnings per share

189.70 yen
196.70 yen
Diluted earnings per share
174.48 yen
180.67 yen(Note) 1. The basis of the calculation of basic earnings per share and diluted earnings per share after adjustmentson potential shares is as follows:
Previous fiscal year

Current fiscal year

(From April 1, 2021
to March 31, 2022)(From April 1, 2022
to March 31, 2023)

13,37913,630－－13,37913,63070,529,419

69,297,318

-13

-13

(-13)

(-13)

6,074,182

6,071,776(73,582)(71,176)(6,000,600)(6,000,600)

Basic earnings per share
Profit attributable to owners of parent (million yen)Amount not attributed to shareholders of commonshare (million yen)
Profit attributable to owners of parent from commonshare (million yen)
Average number of shares of common shareoutstanding during the period
Diluted earnings per share
Adjustment for profit attributable to owners ofparent (million yen)
(Including interest income (after deducting the
portion equivalent to tax) (million yen))
Increase in number of shares of common share(Including share acquisition rights)(Including bonds with share acquisition rights)
Outline of potential shares not included in calculationof diluted earnings per share after adjustments on
potential shares due to no dilution effect－

2. The basis of the calculation of the net asset per share is as follows:
Previous fiscal year

Current fiscal year

(As of March 31, 2022)(As of March 31, 2023)

241,281242,916

349

238(Including: share acquisition rights) (million yen)

(149)

(146)

(Including: non-controlling interests) (million yen)
Net assets available to owners of parent of commonshare (million yen)
Number of shares of common share for computationof net asset per share

(199)

(92)

240,931242,678

70,540,766

66,967,560

Total net asset on the Consolidated Balance Sheets(million yen)Amounts deducted from total net assets (million yen)

(Significant Subsequent Events)
Not applicable.

196. Unconsolidated Financial Statements(1) Balance Sheets

AssetsCurrent assets
Cash and deposits
Prepaid expenses
Other accounts receivable
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings, net
Structures, net
Furniture and fixtures, net
Land
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Leasehold interests in land
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and affiliates
Investments in capital of subsidiaries andassociates
Long-term loans receivable
Long-term loans receivable fromsubsidiaries and associates
Distressed receivables
Long-term prepaid expenses
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

Previous fiscal year
(As of March 31, 2022)

20(Unit: million yen)
Current fiscal year
(As of March 31, 2023)

83,36363
605
18,78612-4102,826

74,796
61
1,752
30,96312-5
107,581

21,963450
32
19,717160
1,849
44,17322,154481
39
19,603260
215
42,754

12
165
51
228

12
452
202
666

56,24444,271

50,77644,261

1,585

1,585

911

903

1,732

1,498

3,350
111
1,582
-2,258
107,531
151,933
254,760

3,050
131
2,398
-2,154102,450
145,871
253,452

Liabilities
Current liabilities
Current portion of bonds payable
Current portion of long-term borrowings
Lease liabilities
Asset retirement obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Deposits received
Provision for bonuses
Provision for bonuses for directors
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Deferred tax liabilities for land
revaluation
Provision for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Reserve for tax purpose reduction
entry of land
General reserve
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Revaluation reserve for land
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets

Previous fiscal year
(As of March 31, 2022)

21(Unit: million yen)
Current fiscal year
(As of March 31, 2023)

－
2,304
82
－
111
67
387
297
51,42475
32－
54,78320,003
9,240
74
40
398
59
393
－
55,77956
20
886,07620,0239,240
69
13,058757－－
196
11,403
756

11
1,931
99
45,18999,972

11
1,932
777
15,076
101,153

10,64910,64946,177
3,933
50,11046,177
3,933
50,110

664

664

1,404

1,379

6,336
80,01388,418-15,759
133,420

6,336
87,51095,890-23,147
133,504

25,46822,902-4,25021,217
149
154,787
254,760-4,25318,649146
152,299
253,452

(2) Statements of Income(Unit: million yen)
Current fiscal year
(From April 1, 2022
to March 31, 2023)

Previous fiscal year
(From April 1, 2021
to March 31, 2022)
Operating revenue
Consulting fee income
Real estate lease revenue
Dividend income
Other

1,162
3,947
1,908
289

1,216
4,052
7,290
235

Total operating revenue

7,308

12,794

3,099

3,366

1,478

1,222

75
32
0
190
1

56
20
0
148
2

-320

-103

378
329
430
1,152

178
330
427
1,564

6,848

7,214

459

5,579

Non-operating income
Interest income
Dividend income
Commission income
Rental income from real estate
Other

235
1,358
224
11
218

190
1,214
245
8
395

Total non-operating income

2,048

2,054

316
1
110

341
1
30

427

373

2,080

7,260

Operating expenses
Real estate related expenses
General and administrative expenses
Remuneration, salaries and allowances for
directors
Provision for bonuses
Provision for bonuses for directors
Provision for retirement benefits
Welfare expenses
Vehicle expenses
Provision of allowance for doubtful
accounts
Depreciation
Rent expenses
Taxes and dues
Other
Total operating expenses
Operating profit

Non-operating expenses
Interest expense
Commitment fees
Other
Total non-operating expenses
Ordinary profit

22

(Unit: million yen)
Current fiscal year
(From April 1, 2022
to March 31, 2023)

Previous fiscal year
(From April 1, 2021
to March 31, 2022)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Other

113
2,867
－
2,981

Total extraordinary income

4
4,193
2
4,200

Extraordinary loss
Loss on disposal of non-current assets
Impairment losses
Loss on sale of investment securities
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries
and associates
Loss on early termination

－
7
341

23
7
267
323

37

212

－

608

Total extraordinary loss

389

1,442

Profit before income taxes

4,671

10,018

Income taxes-currents
Income taxes-deferred

739
-81

910
-547

Total income taxes

657

362

4,014

9,655

3

Net profit23

(3) Statement of Changes in Shareholders’ Equity
Previous fiscal year (From April 1, 2021 to March 31, 2022)

Share capital
Balance at beginning of
periodChanges during period(Unit: million yen)
Shareholders’ equity
Capital surplus
Legal capital
Other capital
Total capitalsurplussurplussurplus10,64946,177

3,937

50,114-4-4

Dividends of surplus
ProfitReversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

―

―

-4

-4

10,64946,177

3,933

50,110Legalretainedearnings
Balance at beginning of
periodChanges during period
Dividends of surplus
ProfitReversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

664

Shareholders’ equity
Retained earnings
Other retained earnings
Total
Reserve forTreasury
Total
Retainedshareholder’s
tax purpose
sharesGeneral earnings retained
equityreduction
reserve brought earnings
entry offorward
land
1,513

6,336

-109

78,11386,627-2,116
4,014-2,116
4,014-2,116
4,014

109

―

―

-107

-107

-15,823

131,568

-0

-0

65

61
-107

―

-109

―

1,900

1,791

64

1,851

664

1,404

6,336

80,01388,418-15,759

133,42024

Balance at beginning of
periodChanges during period
Dividends of surplus
ProfitReversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

Valuation and translation adjustments
Valuation
Total valuationdifference on
Revaluationand translation
available-for- reserve for land
adjustments
sale securities
33,244-4,35728,886(Unit: million yen)Shareacquisitionrights162

Total net
assets160,617-2,116
4,014
―
-0
61
-107

-7,776107-7,668-13-7,682-7,77625,468107-4,250-7,66821,217-13
149-5,830154,78725

Current fiscal year (From April 1, 2022 to March 31, 2023)

Share capital
Balance at beginning of
periodChanges during period
Dividends of surplus
ProfitReversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at the end of
period10,64946,177

3,933

50,110

0

0

―

―

0

0

10,64946,177

3,933

50,110Legalretainedearnings
Balance at beginning of
periodChanges during period
Dividends of surplus
ProfitReversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period(Unit: million yen)
Shareholders’ equity
Capital surplus
Legal capital
Other capital
Total capitalsurplussurplussurplus664

Shareholders’ equity
Retained earnings
Other retained earnings
Total
Reserve forTreasury
Total
Retainedshareholders’
tax purpose
sharesGeneral earnings retained
equityreduction
reserve brought earnings
entry offorward
land
1,404

6,336

-24

―
664

-24
1,379

―
6,336

26

80,01388,418-2,187
9,655-2,187
9,655-2,187
9,655

24

―

―

2

2

7,496
87,5107,471
95,890-15,759

133,420-7,390-7,3902

2
2-7,388-23,147

83
133,504

Balance at beginning of
periodChanges during period
Dividends of surplus
ProfitReversal of reserve fortax purpose reduction
entry of land
Purchase of treasury
shares
Disposal of treasury
shares
Reversal of revaluation
reserve for land
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

Valuation and translation adjustments
Valuation
Revaluation Total valuationdifference on
reserve for and translation
available-forland
adjustments
sale securities
25,468-4,25021,217(Unit: million yen)Shareacquisitionrights149

Total net assets

154,787-2,187
9,655―-7,3902
2-2,565-2-2,568-2-2,571-2,56522,902-2-4,253-2,56818,649-2
146-2,487
152,29927