November 6, 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 Second Quarter of Fiscal 2015
The prescription pharmaceuticals market during the second quarter of fiscal 2015 experienced NHI drug pricereductions by 2.65% on average on the basis of NHI drug prices inclusive of the increased portion of the consumption
tax effective from April 2014 (or by 5.64% on average exclusive of tax) when medical treatment fees and NHI drug
prices were revised in April this year. As the use of generic drugs has been promoted further in the wake of the medical
treatment fee revisions, the sales of long-listed drugs have decreased more than expected. In addition, due to the controlof consulting a doctor by the increase of the consumption tax and bad weather as well as the backlash of the last-minutedemand with the consumption tax hike, the market volume as a whole posted a 3.4% decrease from the previousquarter period (estimated by CRECON Research & Consulting Inc.).
Under these circumstances in the pharmaceutical wholesaling business of the TOHO HOLDINGS Group net sales
have been far below the forecast partly because the category change from long-listed drugs to generic drugs was done
faster than expected. Although it has been sure to get the stable profit from fee business toward a change into avalue-added service model and the comprehensive reform of marketing and distribution through distribution centersand call centers has had the steady effect, the Company was not able to accomplish cost-cutting by the operation
efficiency during this period. In the dispensing pharmacy business, despite pharmacy management that corresponded todispensing fee revisions and improvement measures for profitability the expenditure precedes due to the increased
expenses for setting up new pharmacies and employing pharmacists and to the delayed standardization of pharmacy
operation and labor-saving by consolidating to the headquarters.
As a result of the cumulative second quarter of the fiscal year ending March 2015, the net sales were 560,916
million yen (3.2% decrease compared to the previous year), the operating income was 2,622 million yen (50.5%decrease compared to the previous year), the ordinary income was 5,558 million yen (33.7% decrease compared to theprevious year), and the quarterly net income was 3,019 million yen (38.6% decrease compared to the previous year).
The Company has revised as below the full-year earnings forecast announced in May 5, 2014 because not only it isdifficult to accomplish the forecast of net sales under the changes of market circumstances stated above but also a partof reduction in SG&A expenses is expected behind schedule till fiscal year 2016.
11. Results in the second quarter of fiscal 2015 (Consolidated)(1) Comparison with the same period in the previous fiscal year
Unit: million yen, %Ordinary
Quarterly net
IncomeIncome5,558
3,019First Half , Fiscal 2015

560,916

Operating
Income2,622

First Half, Fiscal 2014

579,175

5,298

8,387

4,914

YoY Change-18,259-2,675-2,829-1,895

-3.2

-50.5

-33.7

-38.6

Consolidated

Net Sales

YoY Change Ratio (%)(2)Comparison with the cumulative forecast for the first half of fiscal 2015

Consolidated560,916

Operating
Income2,622

560,000

2,600

5,500

3,000

594,000

6,500

9,400

5,800

94.4

40.3

59.1

52.1

Net SalesFirst Half, Fiscal 2015
Revised Forecasts for theFirst Half of Fiscal 2015
Initial Forecasts for the First
Half of Fiscal 2015
Comparison with the Initial
Forecasts for the First Half ofUnit: million yen, %Ordinary
Quarterly net
IncomeIncome5,558
3,019

Fiscal 2015(%)

2. The Revision of the Full-year Earnings Forecasts for the Fiscal Year Ending March 2015
On November 6, 2014, the Company announced a revision of the full-year earnings forecast for fiscal
2015, which was published on May 9, 2014.

Consolidated
Revised Forecasts for
Fiscal 2015
Initial Forecasts for Fiscal
2015
Increase/Decrease

Operating
IncomeNet Sales

Ordinary Income

Unit: million yen, %Quarterly net
Income1,161,000

8,900

14,50011,7001,221,000

15,60021,10012,700-60,000-6,700-6,600-1,0003. Progress Rate Compared to the Revised Forecasts for Fiscal 2015

Consolidated
First Half, Fiscal 2015
Revised Forecasts for
Fiscal 2015
Comparison with the Revised
Forecast for Fiscal 2015(%)

Unit: million yen, %Quarterly net
Income3,019

560,916

Operating
Income2,622

1,161,0008,900

14,50011,700

48.3

29.5

38.3

25.8

Net Sales

2

Ordinary Income
5,558