Towa Pharmaceutical : FY2025(3rd quarter) Briefing Script and Q&A Summary of financial results meeting(296K／17P)

Date and time: February 17, 2026 (Tuesday), 3:00-3:45 pm Speakers: Toshikazu Kokubun, Director

Masaaki Takeyasu, Director

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

Division Manager, R&D Division

Takahiko Taniguchi, Senior Operating Officer, Division Manager, API Business 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 third quarter of the year ending March 31, 2026." Thank you for your attention.

1

2026

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 third 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."

2026

Overall review of financial results for 2026/3 3Q

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

  Net sales increased due to a rise in sales volume following an increase in production volume at Towa Pharmaceutical, growth in the domestic health food business at Sunsho Pharmaceutical, and an increase in contract manufacturing in European BtoB at Towa INT.

  Gross profit increased as an increase in sales at Towa Pharmaceutical and a drop in the cost of sales ratio due to an increase in production volume at Towa INT outweighed a rise in the cost of sales ratio due to a worsening business mix at Sunsho Pharmaceutical.

  Operating profit increased as increases in SG&A expenses in all three categories was more than offset by an increase in gross profit at Towa Pharmaceutical and Towa INT.

  Ordinary profit increased due to the posting of a 4.5 billion yen gain on valuation of derivatives.

• Progress rate for the full-year plan: Net sales: 72.9%, Operating profit: 72.2% on a consolidated basis

The progress rate for net sales remained sluggish as there were products at Towa Pharmaceutical whose growth after the lifting of regulated shipments was less than expected.

The progress rate for operating profit remained sluggish as the cost of sales ratio rose more than expected at Sunsho Pharmaceutical due to a worsening business mix.

The progress rate for ordinary profit was strong due to the posting of a 4.5 billion yen gain on valuation of derivatives, which had not been included in the plan.

4

Now, please turn to slide 4.

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

Consolidated net sales were approximately 204.0 billion yen, up 5.3% year on year,

and consolidated operating profit was approximately 19.4 billion yen, up 4.7% year on year.

However, their progress rates remained sluggish.

As for the financial results by segment, Towa Pharmaceutical, etc. achieved an increase in both net sales and profit. While segment net sales remained sluggish compare to 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 achieved an increase in both net sales and profit, and both net sales and segment profit after eliminating intercompany transactions with Towa Pharmaceutical progressed as planned.

5

2026

etc.

etc.

26/3 3Q

Towa INT

Pharmaceutical, Pharmaceutical,

Sunsho

Towa

25/3 3Q

Increase in gross profit

due to an increase in sales volume +3.04

Increase in R&D expenses -1.52 Increase in other SG&A expenses -0.71

0.80

+ 0.87

(JPY billion)

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

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三nୢఇ 峥Ù

৹ତપ

186.1

8.0

-3.1

4.0

-0.1

194.9

Please turn to slide 5.

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

Consolidated operating profit increased by approximately 870 million yen compared to the same period last year due to, among other factors, an

increase in gross profit at Towa Pharmaceutical, etc. following an increase in sales volume.

2026

Outline of financial results for 2026/3 3Q (Consolidated)

• Net sales and operating profit increased due to a rise in sales volume following an increase in production volume at Towa Pharmaceutical and an increase in contract manufacturing in European BtoB at Towa INT, which more than offset the worsening results at Sunsho Pharmaceutical.

  The progress rates remained sluggish as there were products at Towa Pharmaceutical whose growth after the lifting of regulated shipments was less than expected, and the cost of sales ratio rose more than expected at Sunsho

  Pharmaceutical.

• Ordinary profit increased, and its progress rate was strong due to the posting of a 4.5 billion yen gain on valuation of derivatives, which had not been included in the plan.

Due to the uncertainty about the financial market environment, exchange rate trends, etc., we have not revised the full-year plan.

(In 25/3 3Q, a 1.7 billion yen gain on valuation of derivatives was recognized.)

(JPY million, %)

6

Now please turn to slide 6.

I would like to explain the consolidated financial results summary for the third quarter.

Consolidated net sales and operating profit increased year on year due to a rise in sales volume at Towa Pharmaceutical and an increase in contract

manufacturing in European BtoB at Towa INT, which more than offset the worsening results at Sunsho Pharmaceutical.

Compared to the full-year plan, the progress rates remained sluggish as there were products at Towa Pharmaceutical whose sales growth after the lifting of regulated shipments was less than expected, and the cost of sales ratio rose more than expected at Sunsho Pharmaceutical.

Consolidated ordinary profit increased, and the progress rate was strong due to the posting of a 4.5 billion yen gain on valuation of derivatives, which had not been included in the plan.

Due to the uncertainty about the financial market environment, exchange rate trends, etc., we have not revised the full-year plan.