June 20, 2013
To whom it may concern:
Company Name : TOHO HOLDINGS CO., LTD.
Representative : Norio Hamada /President and Representative Director(Securities Code: 8129 / First Section of Tokyo Stock Exchange)
Contact: Katsuya Kato
Corporate Officer and General Manager ofCorporate Communications Officeand Corporate Planning Office(TEL: 03-5259-9520)

Notice on the Formulation of the New Medium-term Management PlanTOHO HOLDINGS CO., LTD. hereby announces that it has formulated a new Medium-term Management Plan,
which covers the period from April 2013 to March 2016. An outline of the new Medium-term Management Plan isas follows:
1. Purpose of Formulating the Medium-term Management Plan
From the current fiscal year, the Company has established a new Medium-term Management Plan “TotalCommitment to Good Health 14-16” under which, by going a step ahead of the rapid changes andfront-line issues of the medical care and pharmaceutical industries, it aims to further improve theefficiency of pharmaceutical distribution and realize high added value in order to contribute to anextension of the healthy life expectancy of people as well as the establishment and maintenance of asustainable social security system in this super-aging society. In addition, while recognizing its public
nature as a medical and health-related company, the Company will focus on streamlining its management
through various measures to improve the optimization and productivity of the whole group and aspire tobecome a business group that is continuously supported by the society under its motto “Total Commitment
to Good Health”.

2. Basic policy of the Medium-term Management Plan
(1) Formation of a business group that can offer maximum professional advantages

In the field of the wholesale and dispensing pharmacy business, the Company will appropriately
proceed with restructuring area operations of business companies from the perspective of improving
business efficiency and the optimization of the group as a whole, while in the field of its main
business, the pharmaceutical wholesaling operations, it will continue to promote its “uniqueproposal-based marketing and sales business model” based on the theme of “customer orientation”
by introducing a branch company system for each block. Furthermore, in the dispensing pharmacy
business, the Company will strive to make efforts for restructuring area operations of businesscompanies, enhancing the efficiency of dispensing pharmacies businesses that play an importantrole in community healthcare, and ensuring greater added value. In addition, in peripheral medicalcare businesses, the Company will develop a coordination system between business companies ineach field and form a business group that can offer maximum professional advantages in the fieldsof medical treatment and health care.

(2) Approach towards community healthcare linkages using a broad product lineup
In addition to prescription pharmaceuticals, through its broad lineup of medical and health products

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ranging from reagents, medical devices, medical materials, OTC drugs to health foods, and its
contribution to the community healthcare linkage, home medical care and nursing fields, theCompany aims to be a business group that can comprehensively support an extension of the healthy
life expectancy of people by preventing diseases and promoting their health.

(3)

Development of a business base that can serve as part of the social infrastructure
The Company will review and further reinforce each of its functions as a pharmaceutical wholesalecompany, i.e. “Product Distribution”, “Commercial Distribution” and “Information” in light of thebusiness continuity. Meanwhile, as for the necessary investments, for example, in theimplementation of measures to cope with earthquake disasters, pandemics, etc., the Company willproceed with necessary preparations based on “confidence and empathy” from various stakeholders
regardless of economic rationality and improve the social corporate value of the Company.

3. Priority measures towards achievement of the Medium-term Management Plan’s goals(1) Comprehensive reform of marketing and distribution

The Company will enhance its competence in collecting and making use of information on the trendsof pharmaceuticals market and customers while continuing both the proposal-based marketing andsales centering on customer support and the pharmaceutical products promotion. On the other hand,
it will make efforts to further improve productivity in the wholesale and dispensing pharmacy
business by strongly promoting drastic structural reform based on the central measure “Integrated
Reform in Sales and Distribution”. Under this measure, the Company will take various efforts tosignificantly reinforce and expand the functions of the group administration center that centrally
controls pharmaceutical wholesaling and dispensing pharmacy operations, to drastically review theexisting businesses with the emphasis on an increase in the number of call centers, to optimize andreduce the total number of personnel by integrating back-office affairs, and to review the delivery
system from the distribution center, etc.
Through these efforts, the Company aims at accomplishing its target of a SG&A ratio to sales of
5.49% in the pharmaceutical wholesaling business and 27.91% in the dispensing pharmacy businessin the final year of this Medium-term Management Plan.

(2) Improvements in distribution efficiency and the upgrading of traceability
The Company will promote the establishment of a new storage and distribution system in responseto newly emerging distribution challenges in relation to the increase in the volume of genericproducts and the handling of specialty products, while giving the highest priority to ensuring of
security and safety in the distribution of the pharmaceutical products. In this context, the Company
will realize auto-location control based on the manufacturing number (lot number) and the expiry
date of the products at all the distribution centers, and promote innovation in the distribution
facilities through such means as the introduction of robots to save labor and increase efficiency inwarehouses. Besides this, it will establish a system to control shipping information and achieve animprovement of customer satisfaction and efficiency in the distribution of pharmaceutical products.
(3) Approach to the promotion of overseas businesses
In addition to the wholesale business in China, the Company will further promote mutual exchangesof human resources with its partner companies in the United States and South East Asia, andreinforce approaches to surveys and research for business development in the pharmaceuticalproducts distribution and healthcare market in overseas countries.
(4) Efforts to develop new business models and new products through the use of the Internet.
By offering a new business model that can maximize the professional competence of pharmacists andensure safety for consumers via its “eKenkoshop”, the Company will support the reinforcement of the2relationship between dispensing pharmacies and the patients related to OCT drugs andhealth-related products. With its “Initial Examination Reservation Service”, the Company will also
improve the presence of medical clinics which are our customers and thereby contribute to theiracquisition of new patients. Likewise, it will develop B2C businesses centering on health-related
products and make new efforts for the development and nurturing of PB products by taking
advantage of its information and product procurement capacity as a pharmaceutical wholesalecompany.

(5) Promotion of cash flow management
In order to maintain financial soundness, the Company will continue to take various measures,
including the shortening of accounts receivables turnover months and inventory turnover months,
the optimization of cost efficiency, and the reduction of financing costs by using the internal funds
within group companies. In addition, the Company will actively work on the development of new
business models and investment in alliances based on the principle of selection and concentration.
(6)

Development of human resources to realize an active organization
The Company aims to develop human resources equipped with highly integrated capabilities,
combining insight based on deep wisdom and intelligence as well as practical and flexible
communication skills and abilities to get things done. While encouraging the employees to face newchallenges, the Company will promote implementation of education and training and cross-sectional
projects in order to foster an organizational climate in which the employees can feel free todemonstrate their abilities in multiple ways through spontaneous activities.

4. Performance targets
Numerical targets for the performance during the new Medium-term Management Plan have been
set as follows:
Consolidated

Net sales
Operating income
Ordinary income

FY20131,140,364
15,877
19,585FY2014 (Target)
1,181,000
14,70020,400FY2015 (Target)
1,229,000
19,50025,000(Unit: million yen)
FY2016 (Target)
1,285,000
26,10031,400As described in the Notice regarding a Change in the Accounting Treatment submitted to Tokyo Stock Exchange onMay 10, the Company posted a “loss before deduction of temporary consumption tax payment (such as non-deductible
consumption tax)” under the classification of “non-operating expenses” until fiscal 2013, however, the Company
decided to change it to be represented in SG&A expenses from the fiscal year ending March 2014.
Due to the change, SG&A expenses have been raised by 2.8 billion yen, whereas the operating income has been
reduced by the same amount in the full-year earnings forecasts for FY2014. The full-year operating income forecast
based on the accounting treatment prior to the change is 17.5 billion yen (up 10.2% from the previous year in realterms). Neither ordinary income nor net income is affected by the change.

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