Towa Pharmaceutical : FY2025(2nd quarter) Briefing Script and Q&A Summary of financial results meeting(297K／16P)

Date and time: November 12, 2025 (Wednesday), 3:00-4:00 pm Speakers: Itsuro Yoshida, President

Osamu Uchikawa, Executive Managing Director Toshikazu Kokubun, Director

Masaaki Takeyasu, Director

Tetsuro Tabata, Senior Operating Officer, Division Manager, Production Division

Hideshi Nakamura, Operating Officer, Division Manager, Corporate Strategy Division

Shiro Hatagami, Operating Officer, Division Manager, Finance & Accounting Division

Yasuyuki Oishi, Operating Officer, Division Manager, Sales and Marketing Division

*Slides that are not explained, such as the table of contents and reference materials, have been omitted.

Thank you very much for taking the time to join us today. This is Kokubun from Towa Pharmaceutical.

I would like to explain our financial results based on the "Supplementary

material for the financial results for the second quarter (interim period) of the year ending March 31, 2026." Thank you for your attention.

1

2025

Towa Pharma

Europe

Breckenridge Pharmaceutical

Towa Pharmaceutical

Sun Freres Lab.

Towa Pharma

International Holdings

Sunsho

Pharmaceutical

Kyushu Iyaku

Greencaps

Pharmaceutical

Daichi Kasei

J-Dolph

Pharmaceutical

Towa Pharmaceutical

"Towa INT"

"Sunsho Pharmaceutical, etc."

"Towa Pharmaceutical, etc."

Notes to financial results disclosure material

Notes

• 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 and Sun Freres Lab. are referred to as "Sunsho Pharmaceutical, etc."

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

Towa Pharma International Holdings, S.L., our overseas segment, is referred to as "Towa INT."

Now, please have a look at slide 1.

Before I begin, I would like to explain the notation we use in the financial results disclosure for the second quarter.

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 and Sun Freres Lab. are referred to as "Sunsho Pharmaceutical, etc."

On April 1, 2025, the Company carried out an absorption-type merger with Sunsho Pharmaceutical as the surviving company and KAMATA as the

disappearing company.

Towa Pharma International Holdings, S.L. and its subsidiaries, which

constitute our overseas segment, are collectively referred to as "Towa INT."

2025

Overall review of financial results for 2026/3 2Q

• YoY change: Net sales increased, but operating profit decreased on a consolidated basis.

  Net sales increased due to an increase in sales volume following an increase in production volume at Towa Pharmaceutical and growth in the domestic health food business at Sunsho Pharmaceutical.

  Gross profit increased due to a drop in the cost of sales ratio due to the effect of new product launches at Towa INT, despite a rise in the cost of sales ratio at Sunsho Pharmaceutical.

  Operating profit decreased due to a rise in the cost of sales ratio at Sunsho Pharmaceutical and an increase in SG&A expenses at Towa INT. Ordinary profit increased due to the posting of a 1.5 billion yen gain on valuation of derivatives.

• Progress rate for the full-year plan: Net sales: 46.6%, Operating profit: 38.7% on a consolidated basis

Net sales fell short of the 1H plan target due to the lower-than-expected sales volume of Towa Pharmaceutical and the poor performance in Towa INT for both the Europe and the U.S..

Gross profit fell short of the 1H plan target due to the lower-than-expected net sales of Towa Pharmaceutical and a higher-than-expected cost of sales ratio of Sunsho Pharmaceutical and the European BtoB of Towa INT.

Operating profit fell short of the 1H plan target due to the poor performance of Sunsho Pharmaceutical and Towa INT, despite progressing as planned due to delays in spending on SG&A expenses of Towa Pharmaceutical.

Ordinary profit met the 1H plan target due to the posting of an unplanned 1.5 billion yen gain on valuation of derivatives.

4

Now, please turn to slide 4.

I would like to explain the financial results for the second quarter.

Consolidated net sales increased to approximately 130.4 billion yen, up 5.7% from the same period last year, but fell short of the 1H plan target.

Consolidated operating profit decreased to approximately 10.4 billion yen,

down 0.7% from the same period last year, falling short of the 1H plan target.

As for the financial results by segment, Towa Pharmaceutical, etc. achieved an increase in both net sales and profit. Segment net sales slightly fell short of, but were almost in line with, the plan. Segment profit progressed as planned.

Sunsho Pharmaceutical, etc. achieved an increase in net sales, but its profit decreased. Segment net sales progressed as planned, but the progress rate of segment profits was sluggish.

Towa INT saw a decline in net sales and an expanding loss, with both segment net sales and profit falling short of the 1H plan target.

5

2025

26/3 2Q

Towa INT

25/3 2Q

Increase in gross profit

due to an increase in sales volume +1.99

Increase in R&D expenses -0.90 Increase in other SG&A expenses -0.82

-0.19

10.44

0.00

-0.14

10.51

0.27

- 0.07

(JPY billion)

Factors behind changes in operating profit for 2026/3 2Q

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ূਮఇ品

三nୢఇ

Please turn to slide 5.

I would like to explain the factors behind the changes in consolidated operating profit.

Although gross profit increased at Towa Pharmaceutical, etc. due to an increase in sales volume, consolidated operating profit decreased by

approximately 70 million yen compared to the same period last year due to an increase in the cost-of-sales ratio at Sunsho Pharmaceutical, etc. and an

increase in SG&A expenses at Towa INT.

Now please turn to slide 6.

I would like to explain the outline of consolidated financial results for the second quarter.

Consolidated net sales increased 5.7% year on year due to an increase in sales volume at Towa Pharmaceutical.

As for the results compared to the 1H plan, net sales fell short of the plan target due to the slightly lower-than-expected sales volume of Towa

Pharmaceutical and the poor performance of Towa INT in both Europe and the U.S.

Consolidated operating profit decreased 0.7% year on year.

As for the results compared to the 1H plan, operating profit fell short of the

plan target due to the poor performance of Sunsho Pharmaceutical and Towa INT, although Towa Pharmaceutical progressed as planned due to delays in spending on SG&A expenses.

Consolidated ordinary profit increased due to the posting of an unplanned 1.5 billion yen gain on valuation of derivatives, achieving the 1H plan target.