Press Release

May 12, 2010

To whom it may concern:

5-2-1 Daizawa, Setagaya Ward, TokyoTOHO HOLDINGS CO., LTD.
(Tokyo Stock Exchange Securities Code: 8129)
Norio Hamada, President and CEO
Contact:
Katsuya Kato
Corporate Officer and General Manager ofCorporate Communications Office(TEL: 03-5259－9520)

Results of Operations for Fiscal Year Ended March 2010
Consolidated sales for the fiscal year ended March 2010 increased by 163,219 million yen (up 19.5%) from theprevious year to 1,002,122 million yen, surpassing 1 trillion yen for the first time since the Company’s foundationin 1948, due primarily to ASUCOME CO., LTD. (which became TOHO HOLDINGS’ consolidated sub-subsidiaryon February 1, 2010) and OMWELL Inc. (which became TOHO HOLDINGS’ consolidated subsidiary on October 1,
2009 and then merged with SANUS Inc. on January 1, 2010 to form the current SAYWELL Inc.) having
sequentially launched cooperative purchasing (products are supplied by TOHO HOLDINGS’ subsidiary, TOHOPHARMACEUTICAL CO., LTD.) since April. Other contributors to the strong sales include growth assisted by theappreciation by the customers of proposal-based marketing and sales activities based on the pillar of theCompany’s unique customer support system and the growth of sales of pharmaceuticals for lifestyle-relateddiseases and new pharmaceuticals, as well as increasing demand for pharmaceuticals related to the outbreak of a
new sub-type of influenza.
In terms of profits, operating income, ordinary income and net income all significantly surpassed the corresponding
results of the full fiscal 2009 supported by efforts to minimize product price declines, a solid expansion of thedispensing pharmacy business, curbed growth of SGA expenses, and although expected to have a detrimental
impact on the Company’s earnings at the end of the fiscal year, the ratio of manufacturer invoice price affected by
the introduction of the new drug pricing system having remained more or less in line with the Company’s
prediction. As a consequence, the gross profit rate improved by 0.7% from the full fiscal 2009 to 8.1%. Since theSGA expenses rate decreased by 0.1% from the preceding year to 7.0% due to slowed growth of SGA expenses, theoperating income to net sales ratio improved by 0.7% from the previous year to 1.1% with operating income
increasing by 7,918 million yen or 262.0%, year on year. Meanwhile, ordinary income surged by 7,608 million yen
from the same period of the previous year, with the ordinary income to net sales ratio improving by 0.6% to 1.4%.
Net income also soared by 10,734 million yen from the previous year.
1. Financial Results for Fiscal 2010.（Consolidated）(1) Comparison with the same period in the previous fiscal year
Consolidated

Net Sales

Unit: million yen, %Operating Income

Ordinary Income

Net Income

Fiscal 20101,002,122

10,93914,133

8,263

Fiscal 2009

838,903

3,021

6,525-2,471

YoY Change

163,219

7,918

7,608

10,734

YoY Change Ratio

119.5

262.0

116.6

―

(2) Comparison with the forecast for full fiscal 2010
Consolidated
Fiscal 2010
Forecast for the Fiscal 2010
(Released on February 4)
Percentage against theFull-year Earnings Forecasts

Net Sales

Unit: million yen, %Operating Income

Ordinary Income

1,002,122

10,93914,1338,263

980,000

7,500

10,500

5,500

102.3

145.9

134.6

150.2

1Net Income

Press Release(3) Gross profit rates, SGA expenses rate, Operating income ratio and Ordinary income ratio(Year-on-year change)
Consolidated

Gross profit to netsales

SG&A expenses tonet sales

Operating income
to net sales

Unit：%
Ordinary income tonet Sales

Fiscal 2010

8.1

7.0

1.1

1.4

Fiscal 2009

7.4

7.1

0.4

0.8

YoY Change Ratio

0.7

-0.1

0.7

0.6

2. Forecast for fiscal 2011 (Full-year)
Net Sales

OperatingIncome

Unit: million yen, %Net Income per
Net Income
Share

Ordinary
IncomeFiscal 2011

1,060,000

12,00014,7008,300※111.49

Fiscal 2010

1,002,122

10,93914,133

8,263125.69

Increase/Decrease

57,8781,061

567

37-14.20

5.8

9.7

4.0

0.4

-11.3

Increase/Decrease Ratio* Net income per share
The calculation of net income per share is based on the average number of shares during the respective fiscalyear. Since the average number of shares during the current fiscal year is expected to increase from the previousyear as a result of the rise in the number of shares due to the stock swap implemented in the previous year, net
income per share for fiscal 2011 is likely to decrease. (See “Earnings per share information” provided by theSummary of Consolidated Financial Results, p.77)
Although it is difficult to estimate the expected impact on the pharmaceutical wholesaling business of the new
drug-pricing system including the introduction of a new scheme aiming to encourage the marketing of new
innovative drugs and the resolution for off-label drug, the Company will endeavor to secure adequate profit
through sales growth propelled by an increasing number of consolidated companies along with thorough pricemanagement. With regard to the dispensing pharmacy business, in addition to larger sales likely to be generated
from an increasing number of consolidated companies, existing consolidated companies aim to continue boosting
their management efficiency and implementing increasingly value-added operations.

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