May 10, 2013
To whom it may concern:
TOHO HOLDINGS CO., LTD.
Norio Hamada, President and Representative Director(Tokyo Stock Exchange Securities Code: 8129)
Contact: Katsuya Kato
Corporate Officer and General Manager ofCorporate Communications Officeand Corporate Planning Office(TEL: 03-5259-9520)

Results of Operations for the Fiscal Year Ended March 2013
In the market for prescription pharmaceuticals during the consolidated fiscal year under review, medical
treatment fees and NHI drug prices were revised, and accordingly NHI drug prices were reduced by 6.0%
on average (6.25% on average if additional reductions in the prices for long listed drugs are included). In
addition, measures to hold down medical expenses have been spreading, as seen in the accelerated use ofgeneric drugs due partly to the promotion of generic name prescription. On the other hand, some positive
factors such as the progressive aging of the population and the sales of new drugs as well as orphan drugs
helped the market follow a steady, albeit slow, upward path; it advanced 1.9%, year on year (estimates byCrecon Research & Consulting Inc.). The Company’s pharmaceutical wholesaling business continued topromote its unique business model, i.e. proposal-based marketing and sales centering on customer support
systems, while selling new products for which the market is expected to be expanding. Thanks to thepursuit of this “two-pronged strategy”, the Company was able to achieve growth that was faster than themarket average.
Under these circumstances, the Group’s consolidated net sales for fiscal 2013 were 1,140,364 million yen,102.9% of that of the previous year. In the pharmaceutical wholesaling operations, the Company strictly
operated a price lock system to secure appropriate profits based on price systems in accordance with thevalue of each product, and tackled improvements in relation to distribution problems, including total valuetransactions and the issue of the gap between the NHI price and the market prices as well as the problem ofprovisional shipping with the pricing yet to be negotiated. A group-wide effort to expand fee businesses andcut costs was also made. In the field of dispensing pharmacy operations, the Company constantly expanded
its business scale through setting up new dispensing pharmacies, however, the increased expenses forsetting up new pharmacies and employing pharmacists have weighed on profits. As a result, theconsolidated operating income was 15,877 million yen, 112.8 % of that of the preceding year, and the ratioof operating income to net sales was 1.4 %, an increase by 0.1 percentage points compared with last year.
Consolidated ordinary income was 19,585 million yen, 110.5% of the figure for fiscal 2012. Consolidated
net Income was 11,526 million yen, 107.1% of the figure for fiscal 2012. Consequently, all of the net sales,operating income, ordinary income and net income hit all-time highs, as they did in the previous year.
“The loss before deduction of temporary consumption tax payment (non-deductible consumption tax, etc.)”
accounted for up to the fiscal year under review as “non-operating expenses” will be booked as “SG&Aexpenses” under the new accounting treatment to be employed from the next fiscal year onward, asmentioned in the “Notice regarding a Change in the Accounting Treatment” announced today.
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 the next fiscal year. The full-year
operating income forecast based on the accounting treatment prior to the change is 17.5 billion yen (up10.2% from the previous year in real terms). Neither ordinary income nor net income is affected by thechange.

11.

Financial Results for Fiscal 2013(Consolidated)(1) Comparison with the same period in the previous fiscal year
Unit: million yen, %Consolidated
Fiscal 2013
Fiscal 2012
YoY Change
YoY Change Ratio

OperatingIncome15,877
14,073
1,804
112.8

Net Sales
1,140,364
1,108,089
32,275
102.9

Ordinary
Income19,585
17,732
1,853
110.5

Net Income
11,526
10,766759
107.1(2) Comparison with the forecast for full fiscal 2013

Consolidated
Fiscal 2013
Forecast for
the Fiscal 2013
Percentage against theFull-year Earnings
Forecasts

Unit: million yen, %Ordinary
Net Income
Income19,585
11,526

1,140,364

Operating
Income15,8771,140,000

15,70018,40010,400

100.0

101.1

106.4

110.8

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
salessales
Sales
Fiscal 2013
8.9
7.6
1.4
1.7
Fiscal 2012
YoY Change Ratio
2.

8.8
0.1

7.5
0.1

1.3
0.1

1.6
0.1

Forecast for fiscal 2014 (Full-year)

1,181,000
1,140,364
40,635

Operating
Income14,70015,877-1,177

Ordinary
Income20,40019,585
814

3.6

-7.4

4.2

Consolidated

Net Sales

Fiscal 2014
Fiscal 2013
Increase/Decrease
Increase/Decrease
Ratio

2

Unit: million yen, %Net Income
Net Income
per Share
11,600164.35 yen
11,526159.21 yen
73
5.14 yen
0.6

3.2