Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Based on Japanese GAAP)
February 13, 2024
Company name:

TOWA PHARMACEUTICAL CO., LTD.

Stock exchange listing: Tokyo
Stock code:
4553
Representative:
Inquiries:

URL

https://www.towayakuhin.co.jp/

President and Representative Director
Director

Itsuro Yoshida
Masao Tanaka

TEL

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

February 14, 2024
–Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
Yes

06-6900-9102(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended December 31, 2023
Nine months ended December 31, 2022

Millions of yen
168,325
140,405

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
19.9
13,204 146.7
17,169 270.0
11,518 480.4
11.8
5,352 (68.5)
4,639 (78.0)
1,984 (86.8)

Earnings per share

Diluted earnings per share

Yen
234.0340.32

Nine months ended December 31, 2023
Nine months ended December 31, 2022

Yen––(2) Consolidated financial position
Total assets
As of December 31, 2023
As of March 31, 2023

Net assets

Millions of yen
414,685
371,347

Equity ratio

Millions of yen
148,820
136,894

%
35.9
36.9

2. Cash dividends
Annual dividends per share

Year ended March 31, 2023
Year ending March 31, 2024

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
30.00
30.00

Yen––

Yen
30.00

Yen
60.00

30.00

60.00

Year ending March 31, 2024 (Forecast)Total

3. Forecast of consolidated financial results for the year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%Yen
Full year
229,000–
15,500–19,500–13,000–264.12
Note: Revision to forecast of consolidated results announced most recently: Yes

14. Notes(1) Changes in significant subsidiaries during the nine months ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

51,516,000 shares As of March 31, 2023

51,516,000 shares

Number of treasury shares at the end of the period
As of December 31, 2023

2,296,786 shares As of March 31, 2023

2,294,167 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended December 31, 2023

49,220,794 shares Nine months ended December 31, 2022

249,221,859 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of March 31, 2023

As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade24,257
46,79530,701
59,551

Electronically recorded monetary claims - operating
Merchandise and finished goods

7,777
44,457

8,874
47,662Work in process
Raw materials and supplies

13,90634,564

14,67637,329Other
Allowance for doubtful accounts

11,413(180)

14,443(50)

Total current assets

182,990

213,190

Buildings and structures, net
Machinery, equipment and vehicles, net

56,19018,96656,744
17,891Land
Construction in progress

17,03931,155

17,34247,936

Other, net

3,652

3,763

127,004

143,679

Goodwill
Other

34,613
18,332

31,914
17,689Total intangible assets

52,94549,604Non-current assets
Property, plant and equipment

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
OtherAllowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

3676

774

8,542(812)

8,266
(828)

8,407

8,212

188,357

201,495

371,347

414,685

(Millions of yen)
As of March 31, 2023

As of December 31, 2023

Liabilities
Current liabilities
Notes and accounts payable - trade17,272

16,872

Electronically recorded obligations - operating
Short-term borrowings

18,7983,677

10,475
3,987

Current portion of long-term borrowings
Income taxes payable

7,527
1,190

8,576
4,569

Provisions
Other

117
29,944124
32,349Total current liabilities

78,52976,955

Non-current liabilities
Long-term borrowings

150,314

183,611Retirement benefit liability
Other

322
5,287

240
5,057

Total non-current liabilities

155,923

188,909234,453

265,865

Share capital
Capital surplus

4,717
7,837

4,717
7,837

Retained earnings
Treasury shares

121,232(5,608)

129,798(5,609)Total shareholders' equity

128,179

136,745

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

4106

133

8,608

11,942

8,715

12,075

136,894

148,820

371,347

414,685

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)
Nine months ended
December 31, 2022
140,405(Millions of yen)
Nine months ended
December 31, 2023
168,325

Cost of sales

89,353

107,916Gross profit

51,05160,408Selling, general and administrative expenses

45,69947,203Operating profit

5,352

13,204Non-operating income
Interest income

1048

Dividend income
Subsidy income

679

795

Gain on valuation of derivatives
Foreign exchange gains

–
811

3,615
768

Compensation income
Other

509
494

–
402

1,912

4,938

Net sales

Total non-operating income
Non-operating expenses
Interest expenses

496674

Loss on valuation of derivatives
Other

1,494
634

–
298

Total non-operating expenses

2,625

973

4,639

17,169Ordinary profitExtraordinary income
Gain on sale of non-current assets

0196

Other0–Total extraordinary income

1196

Loss on disposal of non-current assets
Loss on valuation of investment securities

352053–

Loss on impairment of non-current assets

417

21

Extraordinary losses

473

75

Profit before income taxes

Total extraordinary losses

4,167

17,290

Income taxes

2,183

5,771

Profit1,984

11,518

Profit attributable to owners of parent

1,984

11,5185Consolidated statements of comprehensive income (cumulative)
Nine months ended
December 31, 2022
1,984(Millions of yen)
Nine months ended
December 31, 2023
11,518Valuation difference on available-for-sale securities
Foreign currency translation adjustment

06,69826
3,334

Total other comprehensive income

6,699

3,360

8,683

14,8798,683–

14,879–ProfitOther comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling interests

6Segment information (cumulative)
Information concerning net sales and profit/loss by reportable segment
For nine months ended December 31, 2022
(Millions of yen)
Reportable segment
Domestic

Overseas

Adjustment(Note 1)

Subtotal

Total(Note 2)

Sales
Sales to outside customers

110,005

30,399140,405–

140,405

Sales or transfers between
segments

–

140

140

(140)

–

110,005

30,540140,545(140)

140,405

8,245

185

8,431

(3,079)

5,352

Total
Segment profit

Notes: 1. Adjustment in segment profit represents goodwill amortization of (3,075) million yen, and elimination of internal transactions
between segments of (3) million yen.
2. Segment profit matches operating profit on the consolidated statements of income.

For nine months ended December 31, 2023
(Millions of yen)
Reportable segment
DomesticOverseas

Adjustment(Note 1)

Subtotal

Total(Note 2)

Sales
Sales to outside customers

132,840

35,484

168,325–

168,325

Sales or transfers between
segments

–

81

81

(81)

–

132,840

35,565

168,406(81)

168,325

16,32082

16,403(3,198)

13,204

Total
Segment profit

Notes: 1. Adjustment in segment profit represents goodwill amortization of (3,165) million yen, and elimination of internal transactions
between segments of (33) million yen.
2. Segment profit matches operating profit on the consolidated statements of income.

7