01 Corporate Principles

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2 Management Philosophy of the Group President and COO Masashi Yoshida Chairman and CEO Namio Matsumoto Towards Our Goal of Increasg Total Group Sales to One Trillion Yen and Number of Stores to 2,000 by FY March 2016 Treat all of our customers with respect. Provide all of our customers with the help and advice they need to mata and improve their health and beauty. Strive to be the friendliest drugstore. The three birds our logo represent our three-fold commitment to further growth: listeng attentively to our customers, helpg them to tune their health and beauty, while achievg the further growth of our group. This group has 15 companies, cludg 9 retailg operatg companies led by Matsumotokiyoshi, as well as 14 licensed franchise companies, and 6 busess partner companies. We are strivg for further expansion of our busess network. Matsumotokiyoshi Holdgs is responsible for formulatg management strategies and supervisg their implementation for the entire group to ensure that each operatg company can focus on its own sales and service activities. This system enables each company to conduct itself as a community-oriented, customer-friendly busess that meets all of the needs of each customer a carg, supportive manner. In keepg with advances medical technology, and the growg segment of the elderly population, the cost spent on medical expenses Japan is on an upward trend. This is not only a problem faced by this country, but by all advanced nations. The Japanese economy has been a difficult situation under due to the fluence of the global recession triggered by the US fancial crisis. In this environment, there is anxiety over employment and wages. Trends towards protective lifestyles and cuttg down on spendg are buildg. Medical expenses the country are growg faster than creases national come, meang that the economic burden of medical expenses is mountg. Reforms the medical system, such as cuttg costs and improvg efficiency, are considered necessary to solve these economic problems. This group plans to play a role supportg medice by promotg awareness of the concept of self-medication. Last year, the Pharmaceutical Affairs Law was amended for the first time 50 years. Up to now, our Group has aimed to provide user-friendless and professionalism, and we are workg to enhance our corporate system and make it one that meets customer needs a diversified local society. With the addition of Midoriyakuh Co., Ltd., Nakajima Family Pharmacy Co., Ltd. and Lovedrugs Co., Ltd. as our Group s operatg companies, as of April, our Group has greatly expanded and now has a presence 42 prefectures, for a grand total of 1,176 outlets. In the past three years, we have secured our foothold aimed at further growth by makg each step a careful and deliberate one. This year will be one which we take a significant step forward, usg the results we have so far attaed to develop more dramatically In order to provide our customers with a lifestyle that is beautiful, healthy and fun, we aim to be a community-oriented, family drugstore that has the trust of its customers. Corporate Data (As of July 1, ) Chairman and CEO President and COO Namio Matsumoto Masashi Yoshida Director Standg Corporate Auditor Norio Yuasa Tetsuo Omori Eiji Komatsu Yukio Koyama Corporate Name Matsumotokiyoshi Holdgs Co., Ltd. Address 9-1 Shmatsudo-Higashi, Matsudo-shi, Chiba Phone (81) Incorporated October 1, Common Stock billion yen Book Closg March 31 Les of Busess Management of subsidiaries, purchase and sale of products Issued Shares 53,579,014 Senior Managg Director and CFO Senior Managg Director Advisor Director Director Director Kazuo Narita Kiyoo Matsumoto Tetsuo Matsumoto Koichi Nezu Masahiro Oya Ryoichi Kobayashi Corporate Auditor Corporate Auditor Corporate Auditor Satoru Suzuki Kenji Morohoshi Masato Taimura Toshio Hayata Takao Watanabe Hajime Yabe Kunio Yamazaki Eiichi Kitajima Takashi Matsumoto Soichiro Okushima Hidesato Hiramatsu Shgo Obe 01 Corporate Prciples Top Message 02

3 Group Strategy Aimg for Enhanced Corporate Value The basic management philosophy of Matsumotokiyoshi Holdgs MKHD Group seeks to promote self-medication based on the idea of protectg one s health on one s own. By servg as a community drugstore, we believe that we can contribute to society. Another of our group s philosophies is 1st for you, which was the ideal of our founder, Kiyoshi Matsumoto, when he first began his busess. Based on these philosophies, our entire group strives to look at our busess from the standpot of our customers, and utilize a high degree of specialization to obta the trust and satisfaction of consumers by meetg their needs to be healthy and beautiful. Matsumotokiyoshi Holdgs goals and management dex The long-term goal of the group is to achieve net sales of 1 trillion yen by FY March 2016, with a group-wide total of 2,000 drugstores. These figures are based on a market forecast of 10 trillion yen by Our goal is to capture 10% of the market. We also aim for enhancement sustaable corporate value, and to this end our management dex goal is to exceed ROE 10%. Overview of FY March and issues covered this period In, the Japanese economy was fluenced by the global recession. A steep decle corporate profits meant restrictions on frastructure vestment, and had a detrimental effect on employment and wages. Although there was some sun shg on a few dustries at the end of the fiscal year, the path ahead remaed far from transparent, and consumer spendg contued to be restraed. The same situation held true for the drugstore dustry. Consumers are still feelg the need to protect their lifestyles and cut down on spendg, and we fd ourselves the midst of fierce price-cuttg competition that overlaps different dustries. At the same time, changes drug sales accordg to amendments to the Pharmaceutical Affairs Law have thrown retailers together for even more severe competition. Considerg this severe situation, the MKHD Group has secured our foothold aimed at further growth by focusg on come certaty of the past three years. Among all the more-or-less identical drug retailers, the competition has creased and the dustry market has grown segmented. So we need further implementations to ensure market share. It has become clear that order to nurture the loyalty of consumers, we must establish our busesses their communities and meet their needs. Sales promotional measures and efficiency are also required, as are systems for offerg counselg and reasonably priced MK Customer Brand (private brand) products. In the matter of expansion, we have not put complete priority on the number of openg new stores. Instead, we consider how promisg stores are terms of future profitability, and have taken steps to close some locations. The result this term was 63 new stores and 55 closed, for a total of 1,117 stores for the group as a whole as of March 31,. Lookg back on our busess records, the first quarter was blessed with comparatively good weather and temperatures. The second quarter, however, was fluenced by climate as well as changes drug sales accordg to amendments to the Pharmaceutical Affairs Law; sales of seasonal pharmaceutical and cosmetic products were sluggish. This, combed with trends towards protective lifestyles and cuttg down on spendg due to a contued poor economic climate, made for severe results. Durg this period, however, the outbreak of the new fluenza meant creased sales masks, gargle, disfectant solutions, and anti-bacterial products, which contributed to sales performance. Climactic factors, however, contued to fluence sales, and fluenza the first half of the year led to a general fear of gettg the disease the second half. Prevention measures at home were substituted by receivg medical treatment at hospitals or clics durg a cold season the third/fourth quarter, and sales of products to relieve cold symptoms were down drastically at drugstores. Another contributg factor was a much lighter hay fever season than usual (accordg to both yearly averages and year-on-year comparisons). FY is takg an economic turn for the better. Both government and private-sector economists have mentioned brighter forecasts for growth. The MKHD Group, which has spent the last three years preparation for this opportunity, is anticipatg a good year ahead. Mid-and-long term Group Strategy MKHD Group aims for maximum group synergy and more efficient and speedy group management. Our mid-and-long term strategy for achievg our management dex goal consists of the followg three undertakgs. 1. Capturg 10% of the drugstore market To optimize earngs our ma busess (the drugstore market), we must plow even deeper to this domant area and expand our group share. This is how we plan to get ahead a state of competition fueled by rapid oligopolization (dustry restructurg) and new entrants from outside this dustry. 2. Pioneerg new users, areas and channels Along with planng products and services that more completely meet the diverse needs of consumers, we plan to pioneer and expand new customer segments, areas and sales channels, and broaden the base of our market. 3. Creatg a new busess model With the objective of stable, long-term profits, we are workg on the creation of a new busess model. We are developg products and services that will not only satisfy, but spire our customers. Our new values will lead to customer benefits. Group Tasks The group as a whole will take on the followg priority tasks. 1. Strengtheng and expandg the scale of the drugstore busess In recent years, the drugstore dustry has gone through dramatic operational changes due to deregulations, new entrants from outside the dustry, and rapid dustry restructurg. On the other hand, we are also experiencg a lower birth rate, an agg population and a decle the population as a whole. In the midst of this, we aim to contue our role as a family drugstore, as well as to deal flexibly products and services meetg high-level needs for beauty and health-related fields, such as medice and assisted livg. At the same time, we hope to make the most of the total power of our group and aim for further growth. Our axis will be new direct-operated stores, expansion licensed franchise companies, and strategic M&A to achieve a drugstore busess on a larger scale, makg use of scale merit and synergic effects. The results will be a system that will optimize our competitiveness. Specifically, (1) scale merit will allow attractive prices that satisfy the customer, (2) PB product development and sales power will be backed up by group capacity, (3) a high degree of specialization will offer total solutions for beauty and health, (4) convenience and a full le-up of attractive products will make us stores that are the closest and most reliable for our customers, (5) we will deal with the matter of providg our customers with cordial service that shows them how important they are to us. 2. Developg stores with new busess platforms and strengtheng our expansion system As the population ages and people become more conscious of beauty and health, customer needs are constantly diversifyg. Our group is developg new types of stores based on location and customer needs. We will use this to offer customers products and services that will be of value to them. At present we are workg on the followg store formats: (1) workg tandem with other busesses, our convenient, health-oriented new-type stores will offer customers a healthier and more pleasant lifestyle. (2) Medi + Matsukiyo stores will make effective use of small spaces characteristic of the medical field. (3) H&B Place, our new type of stores, will operate under the concept of ner and outer beauty. ((2) and (3) will be deployed by Matsumotokiyoshi.) The market Japan will most likely shrk as the birthrate falls and the population shrks. In such a situation, overseas expansion will be vital. We are conductg surveys and dog research on how MKHD Group companies can most efficiently and effectively move onto the global stage. 3. Research and development on the vertical tegrated busess model The environment surroundg MKHD Group is ever more severe. To beat the competition, we must be supported by customers and develop a system for creasg profit. We aim to optimize not only the operations of our group companies, but all of the busesses that are a part of the supply cha that delivers our products to the hands of our customers. President and COO Yoshida Masashi 1 Trillion Yen by March 2016 Group Target for Total Net Sales of 1 Trillion Yen for FY2016! Net Sales 393, , , , ,982 (Year endg March 31 / Unit: millions of yen) Target for the Year Endg March 2016: 2,000 Stores Number of stores Target of 2,000 stores 2,000 1, (As of March 31 / Unit: numbers of stores) Chairman and CEO Namio Matsumoto Ordary Income 15,339 15,454 16,982 17,989 16,852 Net Income 2,309 4,133 6,801 7,728 7,281 Net assets 98,060 94,728 93,872 96, ,219 Number of group employees 9,482 7,692 4,092 3,516 5,390 4,176 9,811 4,179 5,632 10,332 4,324 6,008 11,000 4,884 6,116 (Year endg March 31 / Unit: millions of yen) (Year endg March 31 / Unit: millions of yen) (Year endg March 31 / Unit: millions of yen) (As of March 31 / Unit: persons) Full-time workers Part-time workers (per 8-hour shifts)

4 Group Network Our network of stores covers 42 prefectures Japan. Matsumotokiyoshi Holdgs aspires be a Family Drugstore. Organization Chart (As of April 1, ) Matsumotokiyoshi Holdgs Corporate Planng Internal Control Office Corporate Communications Office Busess Development Office Corporate Planng Department Marketg and Sales Promotion / Merchandise Control Management Control Marketg and Sales Promotion Department Prescription Handlg Department Distribution Department Merchandise Department FC Planng Department Fancial and Accountg Department Information Systems Department Personnel Department General Affairs Department Subsidiary Management Department Operatg Companies Affiliated Company Wholesale / Other Operatg Companies Matsumotokiyoshi Co., Ltd. (HQ) Matsudo-shi, Chiba Pref. PAPASU Co., Ltd. (HQ) Sumida-ku, Tokyo MK East Japan Co., Ltd. (HQ) Sendai-shi, Miyagi Pref. MIDORIYAKUHIN Co., Ltd. (HQ) Kagoshima-shi, Kagoshima Pref. Matsumotokiyoshi Kou-Sh-Etsu Japan Co., Ltd. (HQ) Okaya-shi, Nagano Pref. Tobu Drug Co., Ltd. (HQ) Koshigaya-shi, Saitama Pref. LOVEDRUGS Co., Ltd. (HQ) Okayama-shi, Okayama Pref. Nakajima Family Pharmacy Co., Ltd. (HQ) Suzaka-shi, Nagano Pref. Sugiura Co., Ltd. (HQ) Konan-shi, Aichi Pref. Itohide Shoji Co., Ltd. Mogi Pharmaceutical Co., Ltd. MK Planng Co., Ltd. Yukari Advertisg Co., Ltd. Matsumotokiyoshi Insurance Service Co., Ltd. Total Number of Stores: 1,176 (As of April 1, ) Matsumotokiyoshi Co., Ltd. 9-1 Shmatsudo-Higashi, Matsudo-shi, Chiba Phone: (81) Instructions given by area Hokkaido and Tohoku Region Kanto Region Tokai Region Koushetsu Region Hokuriku Region Kansai Region Chugoku Region Shikoku Region Kyushu and Okawa Region PAPASU Co., Ltd Yokokawa, Sumida-ku, Tokyo Phone: (81) Matsumotokiyoshi Co., Ltd. 657 Stores throughout Japan PAPASU Co., Ltd. 126 Stores Kanto Region Kanto Region 541 Stores Tokai Region 21 Stores Kansai Region 48 Stores Chugoku Region 7 Stores Shikoku Region 2 Stores Kyushu and Okawa Region 38 Stores MK East Japan Co., Ltd. Hokkaido and Tohoku Region 14 Stores Kanto Region 75 Stores Hokuriku and Koushetsu Region 10 Stores 99 Stores Eastern Japan MIDORIYAKUHIN Co., Ltd. 144 Stores Kyushu Region Matsumotokiyoshi Kou-Sh-Etsu Japan Co., Ltd. 61 Stores Tohoku and Koushetsu Region Tokyo Chjba Pref. 125 Stores 1 Store Northern Kyushu Region 50 Stores Southern Kyushu Region 87 Stores Okawa Pref. 7 Stores Niigata Pref. Nagano Pref. Fukushima Pref. 21 Stores 39 Stores 1 Store Franchise Stores and Busess Partners (As of April 1, ) KEIKYU HAUTSU Co., Ltd. Koyo Yakuh Co., Ltd. (HQ) Yokohama-shi, Kanagawa Pref. (HQ) Osaka-shi, Osaka Pref. Kohnan Shoji Co., Ltd. (HQ) Sakai-shi, Osaka Pref. SAN-A Co., Ltd. (HQ) Gowan-shi, Okawa Pref. Izumi Co., Ltd. (HQ) Hiroshima-shi, Hiroshima Pref. BEST DENKI Co., Ltd. (HQ) Fukuoka-shi, Fukuoka Pref. ITAYAMAMEDICO Co., Ltd. (HQ) Kofu-shi, Yamanashi Pref. MK East Japan Co., Ltd Ichiban-cho Aoba-ku Sendai-shi, Miyagi Phone: (81) Matsumotokiyoshi Kou-Sh-Etsu Japan Co., Ltd Akahane, Okaya-shi, Nagano Phone: (81) LOVEDRUGS Co., Ltd Fukutomi-Nishi, Okayama-shi, Okayama Phone: (81) MIDORIYAKUHIN Co., Ltd. 8-8 Toukai-cho, Kagoshima-shi, Kagoshima Phone: (81) Tobu Drug Co., Ltd. 9-6 Gamou Asahi-cho, Koshigaya-shi, Saitama Phone: (81) Nakajima Family Pharmacy Co., Ltd Sumisaka, Suzaka-shi, Nagano Phone: (81) Tobu Drug Co., Ltd. 30 Stores Kanto Region Saitama Pref. Chiba Pref. Tokyo 18 Stores 5 Stores 7 Stores Kyoei Co., Ltd. JA-IZUMO (HQ) Tokushima-shi, Tokushima Pref. (HQ) Izumo-shi, Shimane Pref. Meijido-Yakuh Co., Ltd. (HQ) Ama-shi, Aichi Pref. SUPER VALUE CO., LTD. (HQ) Saitama-shi, Saitama Pref. HOKENDO Co., Ltd. (HQ) Nerima-ku, Tokyo MORIS CO., LTD. (HQ) Takasago-shi, Hyogo Pref. Ishii Co., Ltd. (HQ) Yoro-gun, Gifu Pref. MK Planng Co., Ltd. 3-5 Shmatsudo, Matsudo-shi, Chiba Phone: (81) Mogi Pharmaceutical Co., Ltd Yushima, Bunkyo-ku, Tokyo Phone: (81) Yukari Advertisg Co., Ltd Shikoda, Kashiwa-shi, Chiba Phone: (81) Affiliated Company Sugiura Co., Ltd. Itohide Shoji Co., Ltd. 44 Kogane, Matsudo-shi, Chiba Phone: (81) Matsumotokiyoshi Insurance Service Co., Ltd Kashiwa, Kashiwa-shi, Chiba Phone: (81) LOVEDRUGS Co., Ltd. Okayama Pref. Hiroshima Pref. Hyogo Pref. 45 Stores Chugoku and Kansai Region 37 Stores 2 Stores 6 Stores Nakajima Family Pharmacy Co., Ltd. Niigata Pref. 1 Store Nagano Pref. 13 Stores Yokohama Pharmacy Co., Ltd. (HQ) Kitatsugaru-gun, Aomori Pref. CHUBU YAKUHIN Co., Ltd. (HQ) Tajimi-shi, Gifu Pref. SAPPORO DRUG STORE Co., Ltd. (HQ) Sapporo-shi, Hokkaido OKUWA Co., Ltd. (HQ) Wakayama-shi, Wakayama Pref. Komeya Drugstore Co., Ltd. (HQ) Hakusan-shi, Ishikawa Pref. LAWSON, INC. (HQ) Shagawa-ku, Tokyo 170 Kawahigashi, Wada-cho, Konan-shi, Aichi Phone: (81) Stores Koushetsu Region 05 Group Network Group Network 06

5 Matsumotokiyoshi Co., Ltd. Store Models Matsumotokiyoshi deploys stores various locations, different forms, and accordg to customer segments. Stores Designed for Downtown Areas A number of stores are located downtown areas, right next to department stores and other commercial facilities. These multi-segment stores clude our flagship store, Gza 5th Store, as well as Shjuku 3-chome, and Ikebukuro Part 2 Store. Stores designed for station buildgs We also have stores built next to major tra stations and that are tenants station buildgs. These are health & beauty stores that feature the traditional Matsumotokiyoshi sign with a modern touch. 9-1 Shmatsudo-Higashi, Matsudo-shi, Chiba Phone: (81) President, Toshio Hayata Gza 5 th Store Lalaport Iwata Store Aimg to be a family drugstore rooted the community, one that everyone can count on. 1st for you. We aim to provide the most scere service to all of our customers throughout Japan! Matsumotokiyoshi, the core of the MKHD Group, was established 1932 by Kiyoshi Matsumoto, father of the current CEO of MKHD. In 1987, our first urban drugstore was opened Ueno s Ameyoko Store, followed by the Ikebukuro Higashiguchi store and Shibuya Part 1 Store. TV commercials at the time led to the Matsukiyo nickname, and today our stores brg customers, both urban areas and our larger suburban-style locations. We aim to make new Matsumotokiyoshi fans by lettg customers know that we put them first through efforts to crease their satisfaction. We are rapidly openg up new stores, a sign of company growth, and addg personal touches to all aspects, makg our outlets both highly specialized and convenient. next to Hospitals and Medical-mall Type Drugstore/ We also run prescription pharmacies located right outside general hospitals. At these pharmacies pharmacists with expertise fill prescriptions and serve the customers. Some of our prescription pharmacies are placed next to Medical malls which are located the same buildgs of doctor s clics. These medical-mall type pharmacies deal with cosmetics, health foods, OTC medical products and others as well as prescription drugs. Hamamatsu Chuo Store Developg New Types of Store Medi + Matsukiyo New store models Kanto and Kansai make efficient use of small spaces Utilizg new store formats to meet diversified customer needs. By deployg stores stations and nearby areas, we brg new customers attracted by convenience and a family drugstore they can depend on. Suburban Suburban drugstores are large and come equipped with parkg facilities. The range of products meets the daily lifestyle needs of its customers, with medical products, cosmetics, health foods, as well as other food items and sundry goods. H & B Place For Complete Advice on Health and Beauty Tokiwadaira Store Matsumotokiyoshi is producg a new kd of store where beauty specialists and senior nutritionists provide women with advice on how to stay beautiful, side and out. Convenience for Customers Toei Gotanda Store Colette Mare Matomirai Store Aimg to run a cha of drugstores rooted the community As of April, the cha has been divided to 8 regional blocs as a way to come closer to the customer s pot of view each area. Expandg the number of stores open 24 hours a day. 8 stores urban commercial areas currently operate around the clock. (As of March 31, ) 657 Stores throughout Japan Matsumotokiyoshi Co., Ltd. Drugstore Operations Planng & Management Department CS Promotion Department New Busess Promotion Project Customer Services Electronic money and UnionPay cards accepted More and more stores are equipped to accept Edy and other electronic money sources and cards. Western Japan 116 Stores Eastern Japan 541 Stores Store Operations HDQ Marketg HDQ Admistrative Management Saitama Bloc Josai and Jonan Bloc (Tokyo) Marketg Department Internet Sales Department Joto and Johoku Bloc (Tokyo) Store Development Department Shop at Matsumotokiyoshi on the Internet and by mobile phone Learn about health foods, cosmetics, sundries and food products not carried stores but available onle at Kanagawa and Shizuoka Bloc Chiba-chuo Bloc Chiba-kita and Ibaraki Bloc Tokai and Kansai Bloc Kyushu Bloc Kansai Busess Office Kyushu Busess Office 07 08

6 PAPASU Co., Ltd. MK East Japan Co., Ltd Yokokawa, Sumida-ku, Tokyo Phone: (81) President, Koichi Nezu Ichiban-cho, Aoba-ku, Sendai-shi, Miyagi Phone: (81) President, Keiichi Okano Our drugstores have the top share of the market Tokyo. With community roots gog back 20 years, we aspire to be a store convenient for life town trusted by our customers. Always bearg md the smiles of our customers, we do our best to provide people the community with health and more abundant lifestyles. Our goal is to expand our group share throughout Tokyo. Our motto is to stand the shoes of our customers when conductg busess and to create stores loved by them. Our ultimate goal is to be the company with the No.1 rate of customer satisfaction the 21st century. Customer satisfaction is a never-endg pursuit. In addition to contuous improvement, we will also make efforts to become a unique company where employees feel satisfaction from their work. It is our desire to contribute to local communities as advisors for self-medication. Deployg stores rooted the community the 13 prefectures of eastern Japan. Hearg the words thank you makes us happy. To carry out our policy of puttg the customer first, we provide services based on the their perspectives, and provide expert advice on health and beauty. All of us who work for MK East Japan get a sense of satisfaction every time we are able to help customers and hear the words Thank you. As professionals the service dustry, we constantly strive to atta higher levels of skills to assist customers to be healthier and more beautiful. are the core busess of Our stores sell a wide range of PAPASU and provide a wide variety products and offer advice based on of products at reasonable prices based on the various lifestyles of our customers. In this way, we contribute to the betterment of society. Aimg to become family pharmacies Tokyo 125 Stores the needs of customers. Through our consultg sales service we are improvg our standg as trusted stores our communities. Deployg pharmacy/drugstores Hokkaido and Tohoku Region Hokkaido 2 Stores Aomori Pref. 2 Stores Iwate Pref. 2 Stores Akita Pref. 2 Stores Miyagi Pref. 5 Stores Yamagata Pref. 1 Store 14 Stores 99 Stores eastern Japan for our customers, our busesses maly station buildgs, we are contribute to society through our abundant expertise, careful handlg of prescriptions, professional advice, and scere, heartfelt service. Chiba Pref. 1 Store 126 Stores Tokyo and Chiba aimg to become the best the community, providg customers with everythg from preventive medice to prescription drugs. Hokuriku and Koushetsu Region Fukui Pref. 1 Store Ishikawa Pref. 2 Stores Nagano Pref. 2 Stores Niigata Pref. 5 Stores 10 Stores Kitakanto Region Fukushima Pref. 11 Stores Tochigi Pref. 34 Stores Gunma Pref. 30 Stores 75 Stores 09 10

7 Beauty and health put smiles on people s faces! MIDORIYAKUHIN Co., Ltd. Matsumotokiyoshi Kou-Sh-Etsu Japan Co., Ltd. 8-8 Toukai-cho, Kagoshima-shi, Kagoshima Phone: (81) President, Eichi Momosaki Akahane, Okaya-shi, Nagano Phone: (81) President, Masayoshi Asada Aimg to be a company that contributes to the community as a specialist beauty and health. Our theme is health and beauty. Everythg begs with our customers. Group share is expandg thanks to the locations Kyushu ma livg sphere! Our motto is beauty and health put smiles on people s faces! We are dog our best to improve our service so that our customers are happy and satisfied, puttg smiles on as many faces as possible. Thkg of our job as offerg hospitality and gag the trust of the communities where we are located, we look at our busess from the viewpot of our customers, and our reward is a word of thanks from them. Aimg to expand group share suburbs and residential areas of Nagano and Niigata In July, Kenko Kazoku Drug Corporation merged with MAX Co., Ltd. to become Matsumotokiyoshi Kou-Sh-Etsu Japan Co., Ltd. The former had a strong base Nagano, while the latter had most of its stores Niigata. By combg the two we have been able to utilize the strengths each had their respective areas to offer our customers even better services. Our stores provide customers with a wide array of products and formation the field of health & beauty, and we contue to work to build even greater consumer trust. In Nagano, our company has pharmacies to fill prescriptions outside of hospitals, offerg the professional know-how of high-level medical stitutions. In Niigata, our stores offer an expanded le-up of food and sundry products as we aim to cover the bases our support of customer lifestyles. Eager to mata personal contact with We are promotg our drugstore our customers, we do our best to sell medical and cosmetic products after consultation. Our goal is to contribute to the beauty and health of everyone our communities. We place cash registers at our pharmacy counters to give customers every opportunity to discuss their needs and get advice our face-to-face sales. As doctors and pharmacies become separate operations, we have begun operatg pharmacies Northern Kyushu Region Fukuoka Pref. 18 Stores Saga Pref. 3 Stores Nagasaki Pref. 15 Stores Oita Pref. 4 Stores Kumamoto Pref. 10 Stores 50 Stores Okawa Region Okawa Pref. 7 Stores 7 Stores busess accordg to our company s keywords, Everyday and New discovery. We provide a wide range of products at reasonable prices based on the daily needs of our customers. We will contue to brg new discoveries to our customers through our products and services. The division of medical-related services has been accelerated due to the restructurg of the medical surance system. The number Nagano Pref. Tohokush Area 12 Stores Chuush Area 6 Stores Nansh Area 21 Stores Niigata Pref. Niigata-shi Other Areas 11 Stores 10 Stores 21 Stores Fukushima Pref. 1 Store our drugstores. This allows us to become further specialized and contribute to local medical services as a family drugstore. Southern Kyushu Region Kagoshima Pref. 55 Stores Miyazaki Pref. 32 Stores 87 Stores 144 Stores Kyushu and Okawa Region of prescriptions issued by hospitals has been creasg, so the role of drugstores that fill prescriptions has become more important our communities. We combe our expertise handlg prescription medications with the convenience of a drugstore to contribute to the healthy lives of our customers. 39 Stores 61 Stores Niigata, Nagano, and Fukushima Pref

8 Tobu Drug Co., Ltd. LOVEDRUGS Co., Ltd. 9-6 Gamou Asahi-cho, Koshigaya-shi, Saitama Phone: (81) President, Masami Kato Fukutomi-Nishi, Okayama-shi, Okayama Phone: (81) President, Kunio Yamazaki We aim to be a drugstore that is completely trusted by both customers and patients. Our goal is to obta the trust of customers and patients and become stores rooted our communities. Our goal is to expand our group share the area serviced by Tobu Railway! Sce our company was established 1967, we have been openg stores maly the area serviced by the Tobu Railway. Under the motto customers first, we aim to always provide total health care advice, and mata our focus on the health and beauty of local customers. Our health and beauty consultg is made from a variety of viewpots, and we aim to be useful, positive and effective. We also have a wide range of products cludg daily-use goods, which makes us a convenient store that is always volved the lives of our customers. Our goal is to satisfy our customers and patients through our cheerful assistance. Our aim is to expand group share the Sanyo area! Lovedrugs is located maly Okayama and other parts of the Sanyo region. Our stores are places where customers can come and get advice about health and beauty family drugstores. We do our best to create stores from the customer s pot of view. Workg to be as convenient and specialized as possible, we aim to be a company that everyone the area can appreciate. Our cha drugstores have been opened station buildgs, commercial facilities, and residential areas the area serviced by Tobu Railway Tokyo, Saitama, and Chiba. After becomg part of the Matsumotokiyoshi Group 2004, our stores side of Tobu Railway stations began usg Matsumotokiyoshi. Saitama Pref. 18 Stores Tokyo 7 Stores We deploy a suburban cha store located commercial facilities and residential areas Okayama, Fukuyama (Hiroshima) and Himeji (Hyogo) areas. We do our best to mata communication with customers and provide them with good service order to ensure their satisfaction. Hiroshima Pref. 2 Stores We have been openg prescription pharmacies to be able to respond to the complete division of medical treatment and pharmacies. Our prescription pharmacies, which are the largest the dustry, are equipped with state-of-the-art equipment. Chiba Pref. 5 Stores 30 Stores Kanto Region In the Okayama area, we are deployg pharmacies for medical patients as family drugstores rooted local communities. We do our best to see thgs from their pot of view so that they will choose Love pharmacies to have their prescriptions filled. Okayama Pref. 37 Stores Hyogo Pref. 6 Stores 45 Stores Sanyo Region 13 14

9 Nakajima Family Pharmacy Co., Ltd Sumizaka, Suzaka-shi, Nagano Phone: (81) President, Katsuhiko Nakajima We re glad to have it here this friendly store! The important thg is what the store can do to keep its customers satisfied. Products, the store itself, and our staff are all important to accomplish this. Our aim is to expand group share the Northern Nagano area! We are deployg the Matsumotokiyoshi motto 1st for you every nook and cranny of our region. We plan to be here ready for tourists who come on vacation. Our stores our stocked with a full le-up of products and staffed by members of the community. To make the most of counselg with pharmacists and OTC-medice counselor staff, we have been conductg semars to crease the number of our employees with pertent licenses and qualifications. On the occasion of our 25th anniversary, we have joed the Matsumotokiyoshi group and are workg to crease our specialization the drugstore busess and start up new drugstores complete with pharmacies to fill prescriptions. Pursg high professionalism At Matsumotokiyoshi Holdgs, our customers are served by specialists. Pharmacists and OTC-Medice Counselors Accordg to the amendments to the Pharmaceutical Affairs Law, OTC drugs are now sorted to three classes; Category 1, Category 2 and Category 3. Accordg to the category, experts with qualifications are required to handle sales. To establish the proper sales environment, our group is hirg more pharmacists and OTC-Medice Counselors. Through these efforts, we aim to create family drugstores rooted their communities. OTC-Medice Counselors OTC-Medice Counselors provide formation and give advice as needed regardg Category 2 and Category 3 OTC drugs. Risk category Category 1 Medices Category 2 Medices Category 3 Medices Pharmacists Because we are specialists--what a specializg store can do. Expert Pharmacists Pharmacists, OTC-Medice Counselors Pharmacists can handle all pharmaceutical products. Only pharmacists can handle Category 1 OTC drugs, which have a strong effect, and for which written formation and advice are legally required. Information provided even when not requested Information writg must be provided Must make effort to form No requirement (No regulation amendments to the Pharmaceutical Affairs Law) Deal with the matter when advice is requested Obligation In order for our group drugstores to be supported by customers as their family drugstores, we will put special efforts to trag sales staff to provide service worthy of high levels of customer satisfaction. Education for Pharmacists / OTC-Medice Counselors is tegrated to personnel trag system With amendments to the Pharmaceutical Affairs Law, the role of professionals at drugstores (pharmacists and OTC-edice Counselors) has become more important. It is necessary for these professionals to improve their knowledge and communication skills for counselg customers. In addition to existg classroom trag, enhanced trag will make use of -house communications and e-learng. How can we be of help the lives of our customers? Along with the conventional roles of drugstores to keep customers healthy, beautiful and radiant, we are creatg new roles: (1) Deployg drugstores suburban areas, and (2) developg new stores and busess forms residential areas. Our job is to be a family drugstore rooted the local community, and with this md, we seek to contribute more to the medical field by providg drugstores equipped with pharmacies. We can establish a system where prescriptions can be filled durg longer busess hours, thus combg convenience with professionalism and beg of greater use to our customers. Nagano Pref. Hokush Area 12 Stores Chuush Area 1 Store Niigata Pref. 1 Store 13 Stores 14 Stores Niigata and Nagano Pref. Trag for Pharmacists Trag for OTC Medice Counselors As a part of their trag, pharmacists will be provided with knowledge of pharmaceuticals, especially Category 1 OTC drugs, and the latest medical fdgs. In addition, expert trag will be given to pharmacists charge of prescriptions. We are trag pharmacists who will be able to contribute to community healthcare as part of our family drugstores. Practical trag will be improved usg case studies so that the knowledge acquired preparation for the OTC Medice Counselor test will be more useful the field. We will provide classroom trag and correspondence-based support to candidates for the OTC Medice Counselor test so that more staff will qualify. PAPASU Trag Center We have OJT that tras employees both how to deal well with customers, their important role as pots of contact, and how to properly operate cash registers, and so on. Matsumotokiyoshi Trag Center Our pharmacy trag center is equipped with a room that is used to simulate work with medication. This is one of the measures beg taken to meet the demand for fillg prescriptions. There is also a beauty trag center to teach employees to advise customers purchasg beauty products. 15 Pursue high professionalism 16

10 Topics There s no rank higher than No. 1. Our MK Customer Private Brand MK Customer is our origal product le developed from the customer s viewpot to promote self-medication. We d like to ask you what or who is No. 1 for you? Is it the person who is the most considerate, offers the greatest peace of md, and to whom you can talk to about anythg? Is it the drugstore that is closest to you and the most enjoyable? It s not easy to be No. 1. But by dog many different thgs for you, one after the other, we d like to become your No. 1 partner. Of course, you can count on us to keep you healthy and lookg good, but we d like to be the drugstore where good thgs beg. We are the 1st for you. We aim to be your No. 1 We want to go from beg your closest Matsumotokiyoshi to beg your regular Matsumotokiyoshi the one that fills your prescriptions and takes good care of you. We at Matsumotokiyoshi Holdgs are takg a new step Do you already have a Matsumotokiyoshi Members Card? forward, right your direction. No registration or annual membership fee. When members use their Matsumotokiyoshi Members Credit Card anywhere, they receive 1 pot for every 100 they spend (excludg consumption tax), and when they use the card to purchase products at a Matsumotokiyoshi store, they receive an additional 1 pot for every 100 of Matsumotokiyoshi cash pots (excludg consumption tax) (some products excluded). Members can also take advantage of our 24-hour telephone counselg service to get advice about health, medical treatment, and nursg care 365 days a year. When travelg overseas, members are also covered by travel surance for up to 20 million. No registration or annual membership fee. Members receive 1 pot for every 100 they spend (excludg consumption tax) (some products excluded). 300 pots earn a customer a discount of 300 from their total purchase. 17 Topics

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