Results by business segment for the fiscal year ended March 2026 are as follows.

While sales of COVID-19 related products continued to decline, sales grew for cancer drugs and limited-handling products for selected wholesalers (exclusive products) such as specialty pharmaceuticals, as well as diabetes medication and herpes zoster vaccine. In terms of initiatives, we improved productivity by clarifying the roles of sales and delivery teams and introducing digital tools such as the Kyoso Mirai Portal and new delivery terminals. We also focused on various training programs, including those for customer support, aimed at enhancing the skills of our sales representatives. In addition, we conducted price negotiations in line with the Ministry of Health, Labour and Welfare's Guidelines for the Improvement of Commercial Transaction Practices of Ethical Drugs for Manufacturers, Wholesalers, and Medical Institutions / Pharmacies, and worked to visualize and optimize distribution costs for each product and customer. On the other hand, the pharmaceutical wholesaling business was impacted by rising purchase costs. As a result, for the fiscal year under review, the segment posted net sales of 1,494,868 million yen (an increase of 2.1% on a year-on-year basis) and segment profit (operating profit) of 16,820 million yen (a decrease of 11.6% on a year-on-year basis).

We worked to reorganize our operating companies and reduced the number of dispensing pharmacy operating companies under PHARMA CLUSTER CO., LTD. from 24 at the end of March 2024 to four as of April 1, 2026. In addition to responding to the revisions to dispensing fees, we have established a prescription input center and are centralizing prescription input tasks from individual stores to save labor and enhance pharmacists' patientfacing duties. In the consolidated fiscal year under review, despite the occurrence of restructuring expenses that exceeded the benefits, net sales were 100,538 million yen (an increase of 5.2% on a year-on-year basis) and segment profit (operating profit) was 1,397 million yen (an increase of 64.0% on a year-on-year basis).

In December 2025, we launched three products across one generic drug ingredient. Furthermore, the Group engaged in the stable supply of high-quality and high value-added pharmaceuticals by strictly monitoring the quality of products based on its own verification system and establishing a planned production and procurement system. At the Haneda Packaging Center, a secondary packaging facility for prescription pharmaceuticals opened within the same facility as TBC DynaBASE, preparations are underway to begin accepting orders within fiscal 2026. The pharmaceutical manufacturing and sales business posted net sales of 11,564 million yen (an increase of 0.9% on a year-on-year basis); however, segment profit (operating profit) was 282 million yen (a decrease of 61.3% on a year-on-year basis) due to factors such as rising costs of sales.

Net sales amounted to 7,048 million yen (an increase of 2.9% on a year-on-year basis) and segment profit (operating profit) was 832 million yen (an increase of 26.9 % on a year-on-year basis).

(Note) Segment sales include inter-segment transactions.