Towa Pharmaceutical : FY2026(1st quarter) Briefing Script and Q&A Summary of financial results meeting(319K／15P)

Date and time: August 7, 2026 (Friday), 2:00-3:00 pm Speakers: Masaaki Takeyasu, Managing Director

Toshikazu Kokubun, Director

Hideshi Nakamura, Director

Shiro Hatagami, Operating Officer,

Division Manager, Finance & Accounting Division Masaji Morikawa, 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.

First, I would like to offer our deepest respects to those who lost their lives in the 2026 Kumamoto Earthquake, which occurred on July 28, and our heartfelt

sympathies go out to all those affected by the disaster.

We sincerely pray for the safety of everyone in the affected areas and for a swift recovery.

At this time, we have not experienced any casualties or injuries, and we are continuing our normal manufacturing and sales activities.

I would like to explain our financial results based on the "Supplementary material for the financial results for the first quarter of the year ended March 31, 2027." 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

• 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."

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

Notes to financial results disclosure material

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."

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

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

2026

Outline of financial results for 2027/3 1Q (Consolidated)

• YoY change:

Net sales and operating profit increased due to an increase in sales volume and unit prices at Towa Pharmaceutical, etc. and sales growth in Europe for both BtoC and BtoB at Towa INT, which compensated for the deterioration in performance at Sunsho Pharmaceutical, etc.

• Progress rate for the plan: Net sales progressed almost as planned, with Towa INT compensating for delays in progress at Sunsho Pharmaceutical, etc.

  Operating profit progressed as planned partly due to delays in spending on SG&A expenses at Towa Pharmaceutical, etc.

• Ordinary profit increased due to the posting of a 1.4 billion yen gain on valuation of derivatives.

(In the same period last year, a 1.4 billion yen loss on valuation of derivatives was recognized.)

4

Now, please turn to slide 4.

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

Regarding year-on-year changes in consolidated operating results, net sales increased by 9.6% to 71.3 billion yen and operating profit increased by 25.2% to 6.5 billion yen due to an increase in sales volume and unit prices at Towa Pharmaceutical, etc. and sales growth in Europe for both B2C and B2B at Towa INT, which compensated for the deterioration in performance at Sunsho Pharmaceutical, etc.

Compared to the plan, net sales progressed almost as planned, with Towa INT compensating for delays in progress at Sunsho Pharmaceutical, etc.,

and operating profit progressed as planned partly due to delays in spending on SG&A expenses at Towa Pharmaceutical, etc.

Consolidated ordinary profit increased due to the posting of a gain on valuation of derivatives of 1.4 billion yen.

5

2026

etc. etc.

27/3 1Q

Towa INT

26/3 1Q

Increase in R&D expenses: -0.29 Increase in other SG&A expenses: -0.54

Decrease in goodwill amortization of Sunsho Pharmaceutical: +0.62

Increase in gross profit due to an increase in sales volume and unit prices: +1.52

-0.54

5.20

0.56

0.68

6.51

0.60

+ 1.31

(JPY billion)

Factors behind changes in operating profit for 2027/3 1Q

Pharmaceutical, Pharmaceutical,

Sunsho

Towa

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nୢఇ峥 Ù

৹ତપ

52.0

6.8

-5.4

5.6

6.0

65.1

Please turn to slide 5.

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

Operating profit increased by 1.31 billion yen from the same period last year as gross profit increased at Towa Pharmaceutical, etc. due to an increase in sales volume and unit prices while goodwill amortization at Sunsho Pharmaceutical decreased.

Outline of financial results for 2027/3 1Q

(Towa Pharmaceutical, etc.)

• YoY change:

Net sales and segment profit increased as the quantity supplied to the market increased due to an increase in production volume, and unit prices also increased due to the improved sales mix.

• Progress rate for the plan: Net sales remained slightly sluggish due to the less-than-expected progress in sales expansion of recently launched products.

Segment profit increased more than planned due to delays in spending on SG&A expenses, such as R&D expenses.

• Sales volume (Towa Pharmaceutical non-consolidated; tablets and capsules only)

  → Approx. 4.02 billion tablets, up 4.4% year on year Progress rate for the full-year plan: 23.6%

• Production volume (Towa Pharmaceutical non-consolidated; tablets and capsules only)

→ Approx. 4.09 billion tablets, up 6.2% year on year Progress rate for the full-year plan: 22.7%

2026

6

Please turn to slide 6.

I would like to explain the financial results summary for Towa Pharmaceutical, etc.

Regarding year-on-year changes in operating results for this segment, net sales increased by 8.7% and segment profit rose by 10.2% as the quantity

supplied to the market increased due to higher production volumes while unit prices also increased due to the improved sales mix.

Compared to the plan, net sales remained slightly sluggish due to less-than-expected growth in the sales of recently launched products while segment

profit increased more than planned due to delays in spending on SG&A expenses, such as R&D expenses.

The sales volume of Towa Pharmaceutical on a non-consolidated basis was approximately 4.02 billion tablets, up 4.4% year on year.

Meanwhile, production volume was approximately 4.09 billion tablets, up 6.2% year on year.