Towa Pharmaceutical : FY2024 Supplementary Material of Financial Results (1.3M／44P)

2025

• In this document, for the breakdown of the domestic segment,

  Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps Pharmaceutical, and Kyushu Iyaku are referred to as "Towa Pharmaceutical, etc.," and Sunsho Pharmaceutical, KAMATA, and Sun Freres Lab. are referred to as "Sunsho Pharmaceutical, etc." Towa Pharma International Holdings, S.L., our overseas segment, is referred to as "Towa INT."

  "Towa Pharmaceutical, etc." "Sunsho Pharmaceutical, etc." "Towa INT"

  Towa Pharmaceutical

  J-Dolph

  Pharmaceutical

  Daichi Kasei

  Greencaps Pharmaceutical

  Kyushu Iyaku*

  Sunsho Pharmaceutical

  Towa Pharma

  International Holdings

  KAMATA*

  * Consolidated subsidiary from 2024

  Sun Freres

  Lab.*

• KAMATA, which became a consolidated subsidiary in January 2024,

  has been included in the consolidated balance sheets since 2024/3 and the consolidated statements of income since 2025/3.

  On April 1, 2025, the Company carried out an absorption-type merger in which Sunsho Pharmaceutical is the surviving company and KAMATA is the disappearing company.

  Kyushu Iyaku became a consolidated subsidiary in April 2024 and has been included in both the consolidated balance sheets and statements

  of income since 2025/3.

  Sun Freres Lab. was established in April 2024 and has been included in both the consolidated balance sheets and statements of income since 2025/3.

• On May 7, we announced a revision to our full-year earnings forecast for the fiscal year ended March 31, 2025.

• On May 15, we announced a revision to our numerical targets set forth in the 6th Medium-term Business Plan.

  2025 1

  
  
  Table of contents
  1. Outline of financial results for 2025/3
  2. Full-year earnings plan for 2026/3
  3. Initiatives to increase corporate value
  4. Reference materials

     2025 2

     
     
     Table of contents
     1. Outline of financial results for 2025/3

     2. Full-year earnings plan for 2026/3

     3. Initiatives to increase corporate value

     4. Reference materials

     2025 3

     
     
     Summary of financial results for 2025/3

• YoY change: Net sales and profit increased on a consolidated basis

  Net sales increased as sales volume increased at Towa Pharmaceutical due to strong demand for products, and Sunsho Pharmaceutical and Towa INT also achieved sales growth.

  Gross profit increased due to an increase in sales and a drop in the cost of sales ratio from the previous fiscal year on the back of improved sales mix at Sunsho Pharmaceutical and Towa INT.

  Operating profit increased due to an increase in gross profit and a decrease in the SGA ratio at Towa Pharmaceutical. Ordinary profit increased due to an increase in operating profit.

  Due to a decrease in gain on valuation of derivatives from the previous fiscal year (from approx. 5.5 billion yen in 2024/3 to approx. 1.2 billion yen in 2025/3), the percentage increase in profit is lower than that of operating profit.

• Progress rate for the plan: Net sales: 99.0%, Operating profit: 99.8% on a consolidated basis

Net sales, gross profit, and operating profit were all almost as planned.

Ordinary profit outperformed the plan due to the recognition of foreign exchange gains of approx. 1.9 billion yen and gain on valuation of derivatives of approx. 1.2 billion yen.

2025 4