May 9, 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 for the Fiscal Year Ended March 2014
In the market for prescription pharmaceuticals during the consolidated fiscal year under review, the marketfor prescription pharmaceuticals followed a steady, albeit slow, upward path supported by some positive
factors including the progressive aging of the population and the sales of new bland drugs despite thenegative impact of the continuing management policy about health expenditure as seen in the accelerated
use of generic drugs. Furthermore, as last-minute demand spurred by the increase of the consumption
tax, the market was racking up a 3.8% increase from the previous fiscal year (estimates by Crecon
Research & Consulting Inc.).
Under these circumstances, the Company achieved to experience sales growth that outpaced that of themarket, meanwhile, implemented aggressive investments for the future optimization of the Company’sbusiness solutions as distribution centers and call centers. Accordingly the Company incurred expenses
impacting the Company’s financial forecasts including the risk aversion to increase inventory andpersonnel for starting up new distribution center with all possible measures to ensure, and redundancy tooffice clerks of business office as a result of front-load appointment of personnel in new call center. As
these facilities started to work behind schedule, it was ineffective in cost cutting the Company expectedduring the consolidated fiscal year under.
Thereby, the Company increase in revenue and decrease in profit during the consolidated fiscal year,
consolidated net sales for fiscal 2014 were 1,189,627 million yen (4.3% increase compared to the previousyear, 100.7% of that of forecasts.), the consolidated operating income was 12,328 million yen (6.2%decrease compared to the previous year, 83.9% of that of forecasts.), consolidated ordinary income was
18,303 million yen (6.5% decrease compared to the previous year, 89.7% of that of forecasts.),
consolidated net income was 10,407 million yen (9.7% decrease compared to the previous year, 89.7% ofthat of forecasts.).
Meanwhile, the “loss before deduction of temporary consumption tax payment (non-deductibleconsumption tax, etc.)” that had traditionally been booked under the classification of “non-operatingexpenses” has started to be posted under a new accounting treatment employed from this consolidated
fiscal year as “selling, general and administrative (SG&A) expenses.” For the purpose of year-on-yearcomparison, the comparative figure of the previous year has been re-calculated based on the new
accounting treatment.

11.

Financial Results for Fiscal 2014(Consolidated)(1) Comparison with the same period in the previous fiscal year
Unit: million yen, %Consolidated
Fiscal 2014
Fiscal 2013
YoY Change
YoY Change Ratio

Operating
Income12,32813,150△82193.8

Net Sales
1,189,627
1,140,364
49,262
104.3

Ordinary
Income18,303
19,585△1,28293.5

Net Income
10,407
11,526△1,11990.3(2) Comparison with the forecast for full fiscal 2014

Consolidated
Fiscal 2014
Forecast for
the Fiscal 2014
Percentage against theFull-year Earnings
Forecasts

Unit: million yen, %Ordinary
Net Income
Income18,303
10,407

1,189,627

Operating
Income12,3281,181,000

14,70020,400

11,600

100.7

83.9

89.7

89.7

Net Sales(3) Gross profit rates, SGA expenses rate, Operating income ratio and Ordinary income ratio(Year-on-year change Ratio)
Unit: %
SG&A
Operating
Ordinary
Gross profit toConsolidated
expenses to net
income to net
income to net
net sales
sales
sales
Sales
Fiscal 2014
8.8
7.8
1.0
1.5

2.

Fiscal 2013

8.9

7.8

1.2

1.7

YoY Change Ratio

△0.1

0.0

△0.2

△0.2

Forecast for fiscal 2015 (Full-year)

1,221,000
1,189,627
31,372

Operating
Income15,600
12,3283,271

Ordinary
Income21,10018,303
2,796

2.6

26.5

15.3

Consolidated

Net Sales

Fiscal 2015
Fiscal 2014
Increase/Decrease
Increase/Decrease
Ratio

2

Unit: million yen, %Net Income
Net Income
per Share
12,700168.46 yen
10,407139.58 yen
2,292
28.88 yen
22.0

20.7