Supplementary material for the financial
results for the third quarter of the year
ending March 31, 2024
February 2024
(Stock code: 4553)

2022
2022

Notes to and summary of the disclosure of financial resultsfor 2024/03 3Q
Notes● In this document, Towa Pharma International Holdings, S.L., our overseas segment, isreferred to as “Towa INT.” It was referred to as “Towa HD” in previous results documents.
● As the fiscal year-end dates of Towa INT and Sunsho Pharmaceutical were changed forconsolidated results during the fiscal year ended March 2023, the subsidiaries’ first ninemonth period of the fiscal year ending March 31, 2024 is from April 1, 2023, to December
31, 2023.
● For the purpose of comparing the results for 2024/03 3Q with those for the same period(April to December) of the previous year, the results figures of Towa INT and Sunsho
Pharmaceutical for 2023/03 3Q are disclosed as reference figures, with April 1 to December
31, 2022 replacing January 1 to September 30, 2022 as the first nine-month period.
In this document, these figures have been labeled “2023/03 3Q (adjusted period).”● Towa INT’s results figures for “2023/03 3Q (adjusted period)” have been calculated bysubtracting the yen-based results for the period from January 1 to March 31, 2022, from the
yen-based results for the period from January 1 to December 31, 2022, for convenience oftranslating local currency-based figures to yen-based figures.
Therefore, the figures for “2023/03 3Q (adjusted period)” converted using the euro/yen
exchange rate during the period from April 1 to December 31, 2022, do not coincide with thelocal currency-based figures for said period.
● On February 13, we announced a revision to our full-year earnings forecast for the fiscal
year ending March 31, 2024.
20241

Notes to and summary of the disclosure of financial resultsfor 2024/03 3Q
Summary● Net sales and profit increased year on year at the overall consolidated level.
Fiscalperiod24/3 3Q

23/3 3Q (adjusted period)

23/3 3Q(Overseas & Sunsho:
April–December 2023)(Overseas & Sunsho:
April–December 2022)(Overseas & Sunsho:
January–September 2022)(JPY billion)

YOY change(%)

Net sales

168.3+ 16.7

Operatingprofit13.2+ 169.6

Item(JPY billion)

YOY change
(%)

144.1

140.4

+ 11.84.8

5.3- 68.5(JPY billion)● Production volume (Towa Pharma non-consolidated; tablets and capsules only)→ Approx. 10.21 billion tablets, up approx. 9.8% year on year
● Sales volume (Towa Pharma non-consolidated; tablets and capsules only)→ Approx. 10.02 billion tablets, up approx. 17.7% year on year
● Increases in raw material costs and utilities expenses (Towa Pharma non-consolidated)→ Raw materials: Increased by several percentage points year on year due to a weaker yen and higher
resource prices→ Utilities expenses: Increased by approx. 12.3% year on year
Utilities expenses accounted for approx. 2.5% of total manufacturing costs.
2024

2

Table of contents

1. Outline of financial results for 2024/03 3Q
2. Outline of financial results for 2024/03 3Q– Progress rate
3. Balance sheets, capital expenditure anddepreciation

4. Revisions to full-year earnings plan for 2024/03

2024

3

Table of contents

1. Outline of financial results for 2024/03 3Q
Consolidated
Segment information
Domestic segment
Breakdown
Net sales by supplement year (Towa non-consolidated)
Net sales by distribution channel (Towa non-consolidated)
Number of customers by customer segment (Towa non-consolidated)
Selling, general and administrative expenses (Domestic segment)

Overseas segment
By region

2. Outline of financial results for 2024/03 3Q – Progress rate
3. Balance sheets, capital expenditure and depreciation
4. Revisions to full-year earnings plan for 2024/03

2024

4

Outline of financial results for 2024/03 3Q (Consolidated)* Comments below are on the comparison between 2024/03 3Q and 2023/03 3Q (adjusted period):●Both sales and profit increased due to the strength of Towa Pharmaceutical and Sunsho
Pharmaceutical in the domestic segment and mainly due to a weaker yen in the overseas segment.
●Ordinary profit: Increased due mainly to the posting of a 3.6 billion yen gain on valuation of derivatives(JPY million, %)Consolidated earnings
Fiscal period
24/3 3Q

Item(JPY million)

Percentage
YOYof net sales
change (%)(%)

23/3 3Q (adjusted period)

23/3 3Q(Overseas & Sunsho: April–
December)(Overseas & Sunsho: January–
September)(JPY million)

Percentage of net
sales (%)(JPY million)

Percentage
YOYof net sales
change (%)(%)

Net sales

168,325

100.0+ 16.7

144,182

100.0

140,405

100.0+ 11.8

Cost of sales

107,91664.1+ 16.7

92,46664.1

89,35363.6+ 24.4

SGA

47,203

28.0

+ 0.8

46,81732.5

45,69932.5+ 24.3Operating profit

13,2047.8+ 169.6

4,898

3.4

5,352

3.8

- 68.5

Ordinary profit

17,16910.2+ 363.2

3,706

2.6

4,639

3.3

- 78.0

Profit attributable to11,5186.8+ 554.0

1,761

1.2

1,984

1.4

- 86.8owners of parent
Exchange rate
at end of period
(TTM)

USD 1

24/3 3Q

23/3 4Q

23/3 3Q

22/3 4Q

Exchange rateduring period (TTM)

24/3 3Q

23/3 Apr–Dec

23/3 Jan–Sep

JPY 141.83

JPY 133.53

JPY 132.70

JPY 122.39

EUR 1

JPY 155.29

JPY 140.59

JPY 135.95

Notes: 1. The first nine-month period for Towa INT and Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2. For 2024/03 3Q, the USD/JPY exchange rate at the end of the period is the rate as of December 31, 2023, and the EUR/JPY exchange rate during the period is the average rate forthe period from April 1, 2023, to December 31, 2023.
2024

5

Outline of financial results for 2024/03 3Q (Segment information)(JPY million)

Reportable segment
Domestic
Item

Towa Pharmaceutical
J-Dolph Pharmaceutical
Daichi Kasei
Greencaps
Pharmaceutical
Sunsho Pharmaceutical

Overseas

Adjustment
Total(Goodwillamortization, etc.)

Consolidated

Towa INT

Net sales

132,840

35,565

168,406- 81

168,325

Cost of sales

83,40324,539107,942- 26

107,916

SGA

33,117

10,94344,061

3,142

47,203

Segment profit

16,32082

16,403- 3,198

13,204

Notes: 1. The first nine-month period for Towa INT and Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2. Since SGA adjustments include goodwill amortization and internal transactions between Towa Pharmaceutical and Towa
INT, they do not equal the sum of the following goodwill amortization.
3. Goodwill amortization: Towa INT JPY 718 million; Sunsho Pharmaceutical JPY 2,446 million
2024

6

Outline of financial results for 2024/03 3Q (Domestic segment)* Comments below are on the comparison between 2024/03 3Q and 2023/03 3Q (adjusted period):● Net sales: Increased due to the growth in sales volume at Towa Pharmaceutical mainly for new items
and strong sales at Sunsho Pharmaceutical● Segment profit: Increased due to an increase in sales and a reduction in SGA expenditure, such as
R&D expenses, at Towa Pharmaceutical(JPY million, %)Domestic segment
Fiscal period(Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps Pharmaceutical,
Sunsho Pharmaceutical)
23/3 3Q(adjusted period)

24/3 3Q

23/3 3Q(Sunsho: Jan–Sep)(Sunsho: Apr–Dec)

Item(JPY million)

Percentage
YOYof net sales
change (%)(%)(JPY million)

Percentageof net sales(%)(JPY million)

Percentage
YOYof net sales
change (%)(%)

Net sales

132,840

100.0+ 19.1

111,566

100.0

110,005

100.0+ 12.5

Cost of sales

83,40362.8+ 19.869,63862.4

68,18562.0+ 28.4

SGA

33,117

24.9

- 2.0

33,79930.3

33,57430.5+ 21.2

Segment
profit16,32012.3+ 100.8

8,127

7.3

8,245

7.5

- 51.4

Notes: 1. The first nine-month period for Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
2024

7

Outline of financial results for 2024/03 3Q(Domestic segment, breakdown)(JPY million, %)Fiscal period

Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei,
Greencaps Pharmaceutical
24/3 3Q

Item(JPY million)

23/3 3Q

Percentage of YOY change
net sales (%)(%)(JPY million)

Percentage of YOY change
net sales (%)(%)

Net sales

114,098

100.0+ 21.094,315

100.0

- 3.5

Cost of sales

68,74460.3+ 23.2

55,778

59.1

+ 5.0

SGA

30,263

26.5

- 3.4

31,32733.2+ 13.1

Segment profit

15,09013.2+ 109.3

7,210

7.6

- 57.52024

8Outline of financial results for 2024/03 3Q(Domestic segment, breakdown)(JPY million, %)Sunsho Pharmaceutical
Fiscal period

23/3 3Q (adjusted
period)24/3 3Q

23/3 3Q(January–September)(April–December)
Item(JPY million)

Percentage
YOY changeof net sales(%)(%)(JPY million)

Percentage ofnet sales (%)(JPY million)

Percentageof net sales(%)

Net sales

18,742

100.0

+ 8.6

17,250100.0

15,689100.0

Cost of sales

14,658

78.2

+ 5.8

13,86080.3

12,407

79.1

SGA

2,853

15.2

+ 15.4

2,472

14.3

2,247

14.3

Segment profit

1,230

6.6

+ 34.1

917

5.3

1,035

6.6

Notes: 1. The first nine-month period for Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.

2024

9

Net sales by supplement year (Towa non-consolidated)(JPY billion)
2020/030.76

Year of productsupplement
2016/03 2017/03
24/3 3Q 2015/03
3.73
6.25
4.62

23/3 3Q

3.46

5.31

3.45

2018/03
8.15

7.14

2019/03
4.90

4.592021/03
7.48

6.542022/03
10.28

9.72

2023/0310.15

2024/03
3.02

3.15

0.74

22/3 3Q

3.90

5.39

4.11

21/3 3Q

3.75

5.18

3.80

8.68

5.34 0.85

8.10

4.78

8.24

3.92

4.90
0.65

0

10

20

30

40

2024

50

60

10

Net sales by distribution channel (Towa non-consolidated)

24/3 3Q

41.3% (71)23/3 3Q

42.5% (71)22/3 3Q

43.0% (71)21/3 3Q

44.6% (71)

Direct sales

Sales agent

19.0%

19.1%

19.7%

20.2%

Wholesaler

35.5%

32.3%

6.0%

32.0%

28.9%

4.3%

5.3%

6.3%

Other (consignment, sales by other companies, exports)

Figures in brackets indicate the number of sales offices.

2024

11

Number of customers by customer segment(Towa non-consolidated)(Customer, %)Customersegment

Number of
medicalinstitutions

Hospitals

24/3 3Q

23/3 3Q

Number ofcustomers

Coverage(%)

Transaction
amount %mix (%)

Change innumber ofcustomers

Change intransaction
amount (%)

Number ofcustomers

Transaction
amount %mix (%)

Approx. 8,200

7,607

93.1

10.6

+ 138

+ 13.7

7,469

11.2

DPC

Approx. 1,760

1,742

98.9

6.3

+ 20

+ 14.2

1,722

6.6

Clinics

Approx. 105,800

31,322

29.6

11.8+ 1,583+ 13.929,73912.5

Pharmacies

Approx. 61,900

59,966

96.8

77.5+ 1,652+ 22.758,314

76.1

Total

Approx. 175,900

98,895

56.2

100.0

+ 3,373+ 20.6

95,522

100(Excludes transactions by other companies)
Note: The number of medical institutions is calculated with reference to Nihon Ultmarc Inc’s national medical institution data.

2024

12

Selling, general and administrative expenses(Domestic segment)(JPY million, %)Fiscal period

Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps
Pharmaceutical, Sunsho Pharmaceutical
23/3 3Q (adjusted period)

24/3 3Q
Item(JPY million)(Sunsho: April–December)

Percentage ofnet sales (%)

YOY change(%)(JPY million)

Percentage ofnet sales (%)

YOY change(%)

Personnel

13,1839.9+ 1.6

12,978

11.6

+ 8.9

Advertising

554

0.4

- 27.3763

0.7- 25.8

Packing & freight

2,108

1.6

+ 0.5

2,097

1.9

+ 16.3

Commissions paid

3,705

2.8

+ 0.5

3,686

3.3

+ 105.3

R&D expenses

8,283

6.2

- 7.7

8,974

8.0

+ 36.4

Depreciation

1,028

0.8

+ 8.4

948

0.9

+ 20.0

Other

4,252

3.2

- 2.3

4,351

3.9

+ 15.3

SGA

33,117

24.9

- 2.0

33,79930.3+ 22.1

Notes: 1. The first nine-month period for Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
3. Expenses arising in the R&D Division have been reclassified as R&D expenses.
2024

13

Outline of financial results for 2024/03 3Q (Overseas segment)* Comments below are on the comparison between 2024/03 3Q and 2023/03 3Q (adjusted period):● Net sales: Increased mainly due to the weaker yen● Segment profit: Profitable due to an increase in sales and a drop in the cost of sales ratio on theback of improved sales mix in the U.S.
(JPY million, %)Overseas segment (Towa INT)
Fiscal periodItem24/3 3Q

23/3 3Q (adjusted
period) (April–December)

Percentage
YOYof net sales
change (%)(%)(JPY million)

Percentageof net sales(%)(JPY million)(JPY million)

23/3 3Q (January–September)
Percentage
YOYof net sales
change (%)(%)

Net sales

35,565

100.0

+ 8.5

32,782100.0

30,540

100.0

+ 9.7

Cost of sales

24,539

69.0

+ 7.5

22,828

69.6

21,16869.3+ 13.0SGA

10,943

30.8

+ 8.8

10,057

30.7

9,185

30.1

+ 8.3

Segment profit(loss)

82

0.2

－

- 102

- 0.3

185

0.6

- 70.5

Exchange rateduring period

24/3 3Q

23/3 Apr–Dec

23/3 Jan–Sep

JPY 155.29

JPY 140.59

JPY 135.95

(TTM)

EUR 1

Notes: 1. The first nine-month period for Towa INT is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
2024

14

Outline of financial results for 2024/03 3Q(Overseas segment, by region)(JPY million, %)Towa INT Europe
Fiscal periodItem24/3 3Q

23/3 3Q (adjusted
period) (April–December)

Percentage
YOYof net sales
change (%)(%)(JPY million)

Percentageof net sales(%)(JPY million)(JPY million)

23/3 3Q (January–September)
Percentage
YOYof net sales
change (%)(%)

Net sales

20,353100.0+ 14.2

17,816100.0

16,657100.0+ 13.7

Cost of sales

13,79167.8+ 21.2

11,38063.9

10,67264.1+ 16.4

SGA

7,414

36.4

+ 5.8

7,006

39.3

6,336

38.0

+ 3.9

Segment loss

- 852

- 4.2

－

- 570

- 3.2

- 351

- 2.1

－

Exchange rateduring period
(TTM)

EUR 1

24/3 3Q

23/3 Apr–Dec

23/3 Jan–Sep

JPY 155.29

JPY 140.59

JPY 135.95

Notes: 1. The first nine-month period for Towa INT is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
2024

15

Outline of financial results for 2024/03 3Q(Overseas segment, by region)(JPY million, %)Towa INT U.S.
Fiscal period
23/3 3Q (adjusted
period) (April–December)

24/3 3Q

Item

Percentage
YOYof net sales
change (%)(%)(JPY million)

23/3 3Q (January–September)(JPY million)

Percentageof net sales(%)(JPY million)

Percentage
YOYof net sales
change (%)(%)

Net sales

15,211

100.0

+ 1.6

14,966100.0

13,882

100.0

+ 5.2

Cost of sales

10,747

70.7

- 6.1

11,44776.5

10,495

75.6

+ 9.8

SGA

3,528

23.2

+ 15.7

3,050

20.4

2,849

20.5

+ 19.6

Segment
profit935

6.1+ 99.7

468

3.1

536

3.9

- 57.0Exchange rateduring period

24/3 3Q

23/3 Apr–Dec

23/3 Jan–Sep(TTM)

JPY 155.29

JPY 140.59

JPY 135.95

EUR 1

Exchange rateduring period

24/3 3Q

23/3 Apr–Dec

23/3 Jan–Sep(TTM)

JPY 143.29

JPY 136.51

JPY 128.05

USD 1

Notes: 1. The first nine-month period for Towa INT is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
2024

16

Table of contents

1. Outline of financial results for 2024/03 3Q
2. Outline of financial results for 2024/03 3Q – Progress rate
Consolidated
Domestic segment
BreakdownOverseas segment
By region

Trend of R&D expenses

3. Balance sheets, capital expenditure and depreciation
4. Revisions to full-year earnings plan for 2024/03

2024

17

Outline of financial results for 2024/03 3Q – Progress rate
(Consolidated)● The progress rate of both net sales and operating profit was good due to the strength of Towa
Pharmaceutical and Sunsho Pharmaceutical in Japan and a weaker yen.
● Ordinary profit: The progress rate was good due mainly to the posting of an unplanned 3.6 billion
yen gain on valuation of derivatives.
(JPY million, %)Consolidated earnings
Fiscal period
24/3 3Q Results
Item(JPY million)

24/3 Full-year Plan (announced on May 15)

Percentage ofnet sales (%)

Percentage ofnet sales (%)(JPY million)

Progress
rate (%)

Net sales

168,325

100.0

216,300

100.0

77.8

Cost of sales

107,91664.1

136,600

63.2

79.0

SGA

47,20328.0

67,90031.4

69.5

Operating profit

13,2047.8

11,8005.5

111.9

Ordinary profit

17,16910.2

11,5005.3

149.3

Profit attributable to owners

11,518

6.8

6,900

3.2

166.9

of parent

Exchange rate
(TTM)

EUR 1

Rate during 24/3 3Q

Assumed rate for
24/3

JPY 155.29

JPY 138.00

Note: The first nine-month period for Towa INT and Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2024

18

Outline of financial results for 2024/03 3Q – Progress rate
(Domestic segment)● Net sales: The progress rate was good due to the higher-than-expected growth in sales volume at
Towa Pharmaceutical and strong sales at Sunsho Pharmaceutical.
● Segment profit: The progress rate was good due to the delay in SGA expenditure, such as R&D
expenses, despite a rise in the ratio of cost of sales due to a worse-than-expected sales mix at Towa
Pharmaceutical.
(JPY million, %)Domestic segment
Fiscal period(Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps
Pharmaceutical, Sunsho Pharmaceutical)
24/3 3Q Results

Item(JPY million)

24/3 Full-year Plan (announced on May 15)

Percentage of net
sales (%)(JPY million)

Percentage ofnet sales (%)

Progress rate (%)

Net sales

132,840

100.0

171,900

100.0

77.3

Cost of sales

83,40362.8

106,100

61.7

78.6

SGA

33,11724.9

50,00029.1

66.2

Segment profit

16,32012.3

15,8009.2

103.3

Notes: 1. The first nine-month period for Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
2024

19

Outline of financial results for 2024/03 3Q – Progress rate
(Domestic segment, breakdown)(JPY million, %)Fiscal period

Towa Pharmaceutical, J-Dolph
Pharmaceutical, Daichi Kasei,
Greencaps Pharmaceutical
24/3 3Q Results

Sunsho Pharmaceutical

24/3 Full-year plan(announced on May 15)

24/3 3Q Results

24/3 Full-year plan(announced on May 15)

Item(JPY million)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)

Progress
rate (%)(JPY million)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)

Progress
rate (%)

Net sales

114,098100.0

148,000

100.0

77.1

18,742100.0

23,900

100.0

78.4

Cost of sales

68,74460.3

86,60058.5

79.4

14,65878.2

19,500

81.6

75.2

SGA

30,26326.5

46,800

31.6

64.7

2,853

15.2

3,200

13.4

89.2

Segment
profit15,09013.2

14,600

9.9

103.4

1,230

6.6

1,200

5.0

102.5

Notes: 1. The first nine-month period for Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.

2024

20

Outline of financial results for 2024/03 3Q – Progress rate
(Overseas segment)● Net sales: The progress rate was good due to the weaker-than-expected yen.
● Segment profit: The progress rate was good due to steady progress in net sales andthe delay in SGA expenditure, such as R&D expenses.
(JPY million, %)Overseas segment (Towa INT)
Fiscal period
24/3 3Q Results
Item(JPY million)

24/3 Full-year Plan (announced on May 15)

Percentage ofnet sales (%)(JPY million)

Percentage ofnet sales (%)

Progress rate (%)

Net sales

35,565100.0

44,600

100.0

79.7

Cost of sales

24,53969.0

30,500

68.4

80.5

SGA

10,94330.8

14,000

31.4

78.2

82

0.2

100

0.2

82.8

Segment profit
Exchange rate
(TTM)

EUR 1

Rate during 24/3 3Q

Assumed rate for
24/3

JPY 155.29

JPY 138.00

Notes: 1. The first nine-month period for Towa INT is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
2024

21

Outline of financial results for 2024/03 3Q – Progress rate
(Overseas segment, by region)(JPY million, %)Towa INT Europe

Towa INT U.S.

Fiscal period
24/3 3Q Results
Item

24/3 Full-year plan

24/3 3Q Results(announced on May 15)

Percentage
Percentage
Progress(JPY million) of net sales (JPY million) of net sales
rate (%)(%)(%)

24/3 Full-year plan(announced on May 15)

Percentage
Percentage
Progress(JPY million) of net sales (JPY million) of net sales
rate (%)(%)(%)

Net sales

20,353100.0

25,000

100.0

81.4

15,211

100.0

19,600

100.0

77.6

Cost of sales

13,791

67.8

16,20064.8

85.1

10,74770.7

14,300

73.0

75.2

SGA

7,414

36.4

9,900

39.6

74.9

3,528

23.2

4,100

20.9

86.1

Segment
profit (loss)

- 852

- 4.2

- 1,100

- 4.4

－

935

6.1

1,200

6.1

77.9

(TTM)

Rate during 24/3
3Q

Assumed rate for
24/3

USD 1

JPY 143.29

JPY 131.00

Assumed rate for
24/3

Exchange rate

(TTM)

Rate during 24/3
3Q

EUR 1

JPY 155.29

JPY 138.00

Exchange rate

Notes: 1. The first nine-month period for Towa INT is from April 1, 2023, to December 31, 2023.
2. Goodwill amortization is not included.
2024

22

Trend of R&D expenses (Consolidated)(JPY billion)

18.0

16.5
16.0

15.3

14.0

3.0

11.5

12.0

10.6
10.0

2.3

1.5

1.2

1.1
9.9

2.1

1.7
8.0

0.8
13.0

6.0

4.0

11.1
9.1

9.4
7.4

2.0
0.0

21/3

22/3

23/3

Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps Pharmaceutical

24/3 3Q

24/3 Plan

Sunsho Pharmaceutical

Towa INT

Notes: 1. The consolidated fiscal year ended March 31, 2023, for Towa INT and Sunsho Pharmaceutical is the 15-month period fromJanuary 1, 2022, to March 31, 2023.
2. 2021/03–2022/03 does not include the results of Sunsho Pharmaceutical.
2024

23

Table of contents

1. Outline of financial results for 2024/03 3Q
2. Outline of financial results for 2024/03 3Q – Progress rate
3. Balance sheets, capital expenditure and depreciation
Balance sheets
Capital expenditure and depreciation

4. Revisions to full-year earnings plan for 2024/03

2024

24

Balance sheets (Consolidated)(JPY million)
Item
Cash and deposits
Notes and accounts
receivable - trade
Electronically recordedmonetary claims operating
Merchandise andfinished goods

23/12

23/3

Change

Item

23/12

23/3

Change30,701

24,257+ 6,444

Notes and accounts payable - trade16,872

17,272- 399

59,551

46,795+ 12,756

Electronically recorded obligations operating

10,475

18,798- 8,323

8,874

7,777

+ 1,097

Short-term borrowings

3,987

3,677

+ 310

8,576

7,527

+ 1,049

15,112

14,012+ 1,099

Other current liabilities

21,93017,240+ 4,690

Total current liabilities

76,95578,529- 1,573

Long-term borrowings

183,611150,314+ 33,297

Other non-current liabilities

5,297

5,609

- 312

Current portion of long-termborrowings
Notes and accounts payable equipment

47,66244,457+ 3,205

Other inventories

52,006

48,470+ 3,535

Other current assets

14,392

11,232+ 3,159

Total current assets

213,190

182,990+ 30,199

56,74456,190+ 554

17,891

18,966- 1,074

Total non-current liabilities

188,909

155,923+ 32,985

Construction in progress

47,93631,155+ 16,781

Total liabilities

265,865

234,453+ 31,412

Goodwill

31,914

34,613- 2,698

Foreign currency translation
adjustment

11,942

8,608+ 3,334

Other non-current assets

47,00847,431- 423

Other net assets

136,878

128,286+ 8,592

Total non-current assets

201,495

188,357+ 13,138

Total net assets

148,820

136,894+ 11,926

Total assets

414,685

371,347+ 43,338

Total liabilities and net assets

414,685

371,347+ 43,338

Exchange rate atend of period (TTM)
EUR 1

23/12

23/3

JPY 157.12

JPY 145.72

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

Note: The first nine-month period for Towa INT and Sunsho Pharmaceutical is from April 1, 2023, to December 31, 2023.
2024

25

Capital expenditure and depreciation (Consolidated)(JPY billion)

50.0
45.2
39.6

40.0

Depreciation in 2024/03 3Q
Manufacturing expenses: JPY
2.413 bn
SGA: JPY 7.637 bn

1.5
2.0

2.8
2.5

30.0
24.9

9.7
1.2

10.0

8.4

1.3
3.2
2.0
3.8

0.0
Notes:

10.4

21/3
1.
2.
3.
4.
5.

10.2
1.3
8.8

14.8

14.3

1.7

2.1
2.7

4.9
1.5

6.7
22/3

Capital expenditure includes the purchase of property, plant and equipment, andintangible assets.
Depreciation includes the R&D expenses portion.
Depreciation does not include goodwill amortization for Towa INT and Sunsho
Pharmaceutical.
2021/03–2022/03 does not include the results of Sunsho Pharmaceutical.
The consolidated fiscal year ended March 31, 2023, for Towa INT and Sunsho
Pharmaceutical is the 15-month period from January 1, 2022, to March 31, 2023.

1.1
0.6

25.5

20.0

26.6

16.4
1.5
2.4

9.5

10.1

1.7

6.4
23/3

2.3
6.9

14.2

1.7
2.4

4.1

10.1

11.0

4.6

24/3 3Q

24/3 Plan

Capex (Towa INT)

Capex (Sunsho Pharmaceutical)

Capex (Yamagata Plant)

Capex (Okayama Plant)

Capex (other)

Depreciation (Towa INT)

Depreciation (Sunsho Pharmaceutical)

Depreciation (domestic, excl. Sunsho Pharmaceutical)

2024

26

Table of contents

1. Outline of financial results for 2024/03 3Q
2. Outline of financial results for 2024/03 3Q – Progress rate

3. Balance sheets, capital expenditure and depreciation
4. Revisions to full-year earnings plan for 2024/03
Consolidated
Domestic segment
BreakdownOverseas segment
By region

R&D expenses
Capital expenditure and depreciation

2024

27

Outline of revisions to full-year earnings plan for 2024/03
Outline of the revisions to full-year earnings plan announced on February 13, 2024
● Upward revision of JPY 229 billion for net sales (+5.9% vs. May 15 plan) and JPY 15.5 billion for
operating profit (+31.4% vs. May 15 plan) at the overall consolidated level● Around JPY 3.6 billion of gain on valuation of derivatives expected for ordinary profit
Fiscal periodItem24/3 Revised Full-year Plan(announced on Feb 13, 2024)(JPY billion)vs. 5/15
plan(％)

24/3 Full-year plan(announced on May 15, 2023)

Revision(JPY billion)(JPY billion)

Net sales

229

+ 5.9

216.3

+ 12.7

Operating profit

15.5+ 31.4

11.8

+ 3.7

Ordinary profit

19.5+ 69.6

11.5

+ 8.0

13.0

+ 88.4

6.9+ 6.1

Profitattributable to ownersof parent

Changes to assumptions for full-year earnings plan
● Exchange rate assumption (euro/yen) → Revised from JPY 138 to JPY 155.29● Production volume (Towa Pharma non-consolidated; tablets and capsules only)→ Revised from approx. 14.2 billion tablets to approx. 13.7 billion tablets, down approx. 3.5%
● Sales volume (Towa Pharma non-consolidated; tablets and capsules only)→ Revised from approx. 12.4 billion tablets to approx. 13.2 billion tablets, up approx. 6.5%
2024

28

Revisions to full-year earnings plan for 2024/03 (Consolidated)● Both net sales and operating profit were revised upward due to the expected continued strong
performance of Towa Pharmaceutical and Sunsho Pharmaceutical.
● Ordinary profit: Incorporating JPY 3.6 billion gain on valuation of derivatives generated in 3Q(JPY million, %)Consolidated earnings
Fiscal periodItem24/3 Revised Full-year Plan

24/3 Full-year plan(announced on Feb 13, 2024)(announced on May 15, 2023)(JPY million)

Percentage
YOYof net sales change (%)(%)

vs. 5/15
plan(%)(JPY million)

Revision

Percentageof net sales(%)

YOY change(%)(JPY million)

Net sales

229,000

100.0+ 18.0+ 5.9

216,300

100.0+ 11.4

12,700

Cost of sales

148,000

64.6+ 17.8+ 8.3

136,600

63.2

+ 8.8

11,400SGA

65,500

28.6

+ 4.7

- 3.5

67,900

31.4

+ 8.5

- 2,400

Operating profit

15,5006.8+ 161.2+ 31.4

11,8005.5+ 98.83,700

Ordinary profit

19,5008.5+ 252.9+ 69.6

11,5005.3+ 108.1

8,000

Profit attributable to13,0005.7+ 296.9+ 88.46,900

3.2+ 110.7

6,100

owners of parent

Revised assumed rate for
24/3
Exchange rate (TTM)(announced
Feb 13, 2024)
EUR 1
JPY 155.29

Assumed rate for 24/3
(announced on May 15,
2023)

JPY 138.00

Note: The consolidated fiscal year ending March 31, 2024 for Towa INT and Sunsho Pharmaceutical is from April 1, 2023, to March 31, 2024.
2024

29

Revisions to full-year earnings plan for 2024/03(Domestic segment)● Net sales: Revised upward due to expectations of higher-than-expected growth in sales volume at
Towa Pharmaceutical and continued strong sales at Sunsho Pharmaceutical● Segment profit: Revised upward due to expectations of a delay in SGA expenditure, such as R&D
expenses, despite a rise in the ratio of cost of sales ratio due to a worse-than-expected sales mix at
Towa Pharmaceutical(JPY million, %)Domestic segment
Fiscal periodItem(Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps
Pharmaceutical, Sunsho Pharmaceutical)
24/3 Revised Full-year Plan

24/3 Full-year plan(announced on Feb 13, 2024)(announced on May 15, 2023)(JPY million)

Percentage
YOYof net sales
change (%)(%)

vs. 5/15
plan(%)(JPY million)

Percentage
YOYof net sales
change (%)(%)

Revision(JPY million)

Net sales

180,000

100.0+ 19.5+ 4.7

171,900

100.0+ 14.2

8,100

Cost of sales

114,300

63.5+ 20.6+ 7.7

106,100

61.7+ 12.08,200

SGA46,000

25.6

+ 1.7

- 8.0

50,00029.1+ 10.5- 4,000

Segment
profit19,70010.9+ 85.7+ 24.715,8009.2+ 48.93,900

Notes: 1. The consolidated fiscal year ending March 31, 2024 for Sunsho Pharmaceutical is from April 1, 2023 to March 31, 2024.
2. Goodwill amortization is not included.
2024

30

Revisions to full-year earnings plan for 2024/03(Domestic segment, breakdown)(JPY million, %)Fiscal period

Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei,
Greencaps Pharmaceutical
24/3 Revised Full-year Plan

24/3 Full-year plan(announced on Feb 13, 2024)(announced on May 15, 2023)

Percentage
YOYof net sales
change (%)(%)

vs. 5/15
plan(%)

Percentage of YOY change
net sales (%)(%)

Revision

Item(JPY million)

Net sales

153,000

100.0+ 20.1+ 3.4

148,000

100.0+ 16.2

5,000

Cost of sales

92,70060.6+ 22.0+ 7.0

86,60058.5+ 14.06,100

SGA

42,200

27.6

+ 0.7

- 9.8

46,80031.6+ 11.7- 4,600

Segment profit

18,10011.8+ 91.1+ 24.014,6009.9+ 54.2

3,500(JPY million)

2024(JPY million)

31

Revisions to full-year earnings plan for 2024/03(Domestic segment, breakdown)(JPY million, %)Sunsho Pharmaceutical
Fiscal periodItem24/3 Revised Full-year Plan

24/3 Full-year plan(announced on Feb 13, 2024)(announced on May 15, 2023)(JPY million)

Percentage
YOY changeof net sales(%)(%)

vs. 5/15
plan(%)(JPY million)

Revision

Percentage of YOY change(JPY million)
net sales (%)(%)

Net sales

27,000100.0+ 16.2+ 13.023,900

100.0

+ 2.9

3,100

Cost of sales

21,60080.0+ 15.1+ 10.819,500

81.6

+ 3.9

2,100

SGA

3,800

14.1

+ 14.2+ 18.8

3,200

13.4

- 3.8

600

Segment profit

1,600

5.9

+ 40.6+ 33.3

1,200

5.0

+ 5.4

400

Notes: 1. The consolidated fiscal year ending March 31, 2024 for Sunsho Pharmaceutical is from April 1, 2023 to March 31, 2024.
2. Goodwill amortization is not included.

2024

32

Revisions to full-year earnings plan for 2024/03(Overseas segment)● Net sales: Revised upward due to expectations of a weaker-than-expected yen● Segment profit: The plan was revised owing to the expected rise in the cost of sales ratio due
to a worse-than-expected sales mix in Europe.

(JPY million, %)Overseas segment (Towa INT)
Fiscal periodItem24/3 Revised Full-year Plan

24/3 Full-year plan(announced on Feb 13, 2024)(announced on May 15, 2023)(JPY million)

Percentage
YOYof net sales
change (%)(%)

vs. 5/15
plan(%)(JPY million)

Revision

Percentage
YOYof net sales
change (%)(%)(JPY million)

Net sales

49,000100.0+ 12.2+ 9.9

44,600

100.0

+ 2.1

4,400

Cost of sales

33,700

68.8

+ 9.2

+ 10.530,500

68.4

- 1.1

3,200

SGA

15,30031.2+ 14.3+ 9.3

14,000

31.4

+ 4.6

1,300

0

0

ー

ー

100

0.2

ー

- 100

Segment
profitExchange rate
(TTM)

Revised assumed rate for 24/3
(announced on Feb 13, 2024)

Assumed rate for 24/3
(announced on May 15, 2023)

EUR 1

JPY 155.29

JPY 138.00

Notes: 1. The consolidated fiscal year ending March 31, 2024 for Towa INT is from April 1, 2023 to March 31, 2024.
2. Goodwill amortization is not included.

2024

33

Revisions to full-year earnings plan for 2024/03(Overseas segment, by region)(JPY million, %)Towa INT Europe
Fiscal periodItem24/3 Revised Full-year Plan

24/3 Full-year plan(announced on Feb 13, 2024)(announced on May 15, 2023)

Percentage
YOYof net sales
change (%)(%)(JPY million)vs. 5/15
plan(%)(JPY million)

Revision

Percentage
YOYof net sales
change (%)(%)(JPY million)

Net sales

27,800100.0+ 15.8+ 11.225,000

100.0

+ 4.1

2,800

Cost of sales

18,60066.9+ 20.1+ 14.8

16,200

64.8

+ 4.6

2,400

SGA

10,40037.4+ 11.8

+ 5.1

9,900

39.6

+ 6.4

500

Segment loss

- 1,200

- 4.3

ー

ー

- 1,100

- 4.4

ー

- 100

(TTM)

Revised assumed rate for 24/3
(announced on Feb 13, 2024)

Assumed rate for 24/3
(announced on May 15, 2023)

EUR 1

JPY 155.29

JPY 138.00

Exchange rate

Notes: 1. The consolidated fiscal year ending March 31, 2024 for Towa INT is from April 1, 2023 to March 31, 2024.
2. Goodwill amortization is not included.

2024

34

Revisions to full-year earnings plan for 2024/03(Overseas segment, by region)(JPY million, %)Towa INT U.S.
Fiscal periodItem24/3 Revised Full-year Plan

24/3 Full-year plan(announced on Feb 13, 2024)(announced on May 15, 2023)(JPY million)

Percentage
YOYof net sales
change (%)(%)

vs. 5/15
plan(%)(JPY million)

Revision

Percentage
YOYof net sales
change (%)(%)(JPY million)

Net sales

21,200

100.0

+ 7.7

+ 8.2

19,600

100.0

- 0.4

1,600

Cost of sales

15,100

71.2

- 1.7

+ 5.6

14,300

73.0

- 6.9

800

SGA

4,900

23.1

+ 19.9+ 19.5

4,100

20.9

+ 0.3

800

Segment
profit1,200

5.7+ 423.6

±0

1,200

6.1

+ 423.6

0Exchange
rate (TTM)
EUR 1

Revised assumed rate for24/3(announced on Feb
13, 2024)

Assumed rate for 24/3
(announced on May 15,
2023)

JPY 155.29

JPY 138.00

Exchange
rate (TTM)
USD 1

Revised assumed rate for24/3(announced on Feb
13, 2024)

Assumed rate for 24/3
(announced on May 15,
2023)

JPY 143.29

JPY 131.00

Notes: 1. The consolidated fiscal year ending March 31, 2024 for Towa INT is from April 1, 2023 to March 31, 2024.
2. Goodwill amortization is not included.

2024

35

Trend of R&D expenses (Consolidated)● Expected to decrease by approx. JPY 1.4 billion from the initial plan at the overall consolidated level(JPY billion)

18.0

16.5
16.0

15.3

14.0

3.0

12.0
10.0

11.5

2.3

15.1

1.2

2.1

1.1

1.1
9.9

2.1

1.7
8.0

0.8
13.0

6.0

11.8

11.1

9.4
4.0

7.4

2.0
0.0

22/3

23/3

24/3 3Q

Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps Pharmaceutical

24/3 Plan

24/3 Revised plan

Sunsho Pharmaceutical

Towa INT

Notes: 1. The consolidated fiscal year ended March 31, 2023, for Towa INT and Sunsho Pharmaceutical is the 15-month period from January 1, 2022,
to March 31, 2023.
2. 2022/03 does not include the results of Sunsho Pharmaceutical.
2024

36

Capital expenditure and depreciation (Consolidated)● Capital expenditure: Expected to decrease by approx. JPY 8.3 billion from the initial plan at the overall consolidated level(JPY billion)

50.0
Depreciation in 2024/03 3Q
Manufacturing expenses: JPY
2.413 bn
SGA: JPY 7.637 bn

39.6

40.0

45.2
1.5
2.0

2.8
2.5

1.5
1.1

30.0
24.9
25.5

20.0
14.8
1.7

10.0

10.2
1.3

4.9

14.3
2.1
2.7
2.4

1.5
8.8

0.0
Notes: 1.
2.
3.
4.
5.

6.7
22/3

16.4

9.5
23/3

6.4

1.5
1.7

10.1
2.3
6.9

36.9

26.6
1.1
0.6

22.9
14.2
1.7
2.4

4.1

10.1

11.0

4.6

24/3 Plan

24/3 3Q

14.2
1.7
2.4

10.1

3.2
8.2

24/3 Revised plan

Capex (Towa INT)
Capex (Sunsho Pharmaceutical)
Capex (Yamagata Plant)
Capex (Okayama Plant)
Capex (other)
Depreciation (Towa INT)
Depreciation (Sunsho Pharmaceutical)
Depreciation (domestic, excl. Sunsho Pharmaceutical)

Capital expenditure includes the purchase of property, plant and equipment, and intangible assets.
Depreciation includes the R&D expenses portion.
Depreciation does not include goodwill amortization for Towa INT and Sunsho Pharmaceutical.
2022/03 does not include the results of Sunsho Pharmaceutical.
The consolidated fiscal year ended March 31, 2023, for Towa INT and Sunsho Pharmaceutical is the
15-month period from January 1, 2022, to March 31, 2023.
2024

37

Forward-looking statements are based on targets andprojections and do not offer commitments or guarantees.
Please be aware that results may differ from the forecasts.

Contact:
Investor Relations Group, Public Relations and Investor Relations Department,
Towa Pharmaceutical Co., Ltd.
ir@towayakuhin.co.jp TEL. +81-6-6900-9102 FAX. +81-6-7177-49602024