Supplementary material for thefinancial results for the year ended
March 31, 2024
May 2024(Stock code: 4553)

2024

Notes to and summary of the disclosure of financial resultsfor 2024/03
Notes● In this document, Towa Pharma International Holdings, S.L., our overseas segment, is referred to as “Towa
INT.”● As the fiscal year-end dates of Towa INT and Sunsho Pharmaceutical were changed for consolidated results

during the fiscal year ended March 2023, the subsidiaries’ fiscal year ended March 31, 2024 is from April 1,
2023, to March 31, 2024.
● For the purpose of comparing the results for 2024/03 with those for the same period (April to March) of theprevious year, the results figures of Towa INT and Sunsho Pharmaceutical for 2023/03 are disclosed as
reference figures, with April 1, 2022 to March 31, 2023 replacing January 1, 2022 to March 31, 2023.
In this document, these figures have been labeled “2023/03 (adjusted period).”● Towa INT’s results figures for “2023/03 (adjusted period)” have been calculated by subtracting the yen-based
results for the period from January 1 to March 31, 2022, from the yen-based results for the period fromJanuary 1, 2022 to March 31, 2023, for convenience of translating local currency-based figures to yen-based

figures.
Therefore, the figures for “2023/03 (adjusted period)” converted using the euro/yen exchange rate during theperiod from April 1, 2022 to March 31, 2023, do not coincide with the local currency-based figures for said
period.
● KAMATA Co., Ltd. (“KAMATA” below), made a subsidiary of Towa in January 2024, will be included in Towa
Group’s consolidated balance sheet from 2024/03 and income statement from 2025/03.
2024

1

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

24/3

23/3(adjusted period)(Overseas & Sunsho 12 months)

23/3(Overseas & Sunsho 15 months)(JPY billion)(JPY billion)(JPY billion)

YOY change (%)

Net sales

227.9+ 17.4％

194.1

208.8

Operating profit

17.6+197.4％5.9

5.5● Achievement rate for the revised full-year plan announced in February :Net sales: Approx. 99.5%, Operating profit: Approx. 113.9 % at the overall consolidated level.
Fiscal period

24/3 Results

Revised full-year plan for 24/3 ( announced Feb 13)

Item(JPY billion)(JPY billion)

Achievement rate (%)

Net sales

227.9

229.0

99.5%

Operating profit

17.6

15.5

113.9%● Production volume (Towa Pharma non-consolidated; tablets and capsules only)→ Approx. 13.6 billion tablets, up approx. 5.7% year on year,
Achievement rate for the revised full-year plan announced in February: Approx. 99.3%● Sales volume (Towa Pharma non-consolidated; tablets and capsules only)→ Approx. 13.3 billion tablets, up approx. 17.6% year on year
Achievement rate for the revised full-year plan announced in February: Approx. 100.9%● 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. 8.3% 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
2. Outline of financial results for 2024/03– Progress rate

3. Balance sheets, capital expenditure anddepreciation
4. Full-year earnings plan for 2025/03
5. Initiatives to increase corporate value

2024

3

Table of contents
1. Outline of financial results for 2024/03
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
Sales ratio of products released in the last three years

2. Outline of financial results for 2024/03– Progress rate
3. Balance sheets, capital expenditure anddepreciation
4. Full-year earnings plan for 2025/03
5. Initiatives to increase corporate value
2024

4

Outline of financial results for 2024/03 (Consolidated)* Comments below are on the comparison between 2024/03 and 2023/03 (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 5.5 billion yen gain on valuation of derivatives(JPY million, %)Consolidated earnings

Fiscal period

24/3

Item

(JPY million)

Percentageof net sales(%)

YOY change(%)

23/3(adjusted period)

23/3(Overseas & Sunsho:
12 months)(Overseas & Sunsho:
15 months)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)(JPY million)

Net sales

227,934

100.0+ 17.4

194,107

100.0

208,859

100.0

Cost of sales

146,551

64.3+ 16.7

125,592

64.7

136,145

65.2

SGA

63,735

28.0

+ 1.8

62,581

32.2

67,19932.2

Operating profit

17,647

7.7+ 197.4

5,934

3.1

5,514

2.6

Ordinary profit

24,477

10.7+ 342.9

5,526

2.8

5,141

2.5

Profit before income taxes

24,45910.7+ 390.1

4,990

2.6

4,605

2.2

Profit attributable to16,173

7.1+ 393.8

3,275

1.7

2,201

1.1

owners of parent
Exchange rate at endof period (TTM)

24/3

23/3

22/3

Exchange rateduring period (TTM)

24/3

23/3 12months

23/3 15months

USD 1

JPY 151.41

JPY 133.53

JPY 122.39

EUR 1

JPY 156.8

JPY 140.97

JPY 138.85

Notes: 1. The consolidated fiscal year ended March 31, 2024 for Towa INT and Sunsho Pharmaceutical is from April 1, 2023 to March 31, 2024.
2. For 2024/03, the USD/JPY exchange rate at the end of the period is the rate as of March 31, 2024, and the EUR/JPY exchange rate during the period is the average rate for theperiod from April 1, 2023, to March 31, 2024.
2024

5

Outline of financial results for 2024/03 (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

178,715

49,324228,040- 105

227,934

Cost of sales

112,384

34,205

146,589- 38

146,551

SGA

44,441

15,10759,5494,186

63,735

Segment profit

21,88911

21,901- 4,253

17,647

Notes: 1. The consolidated fiscal year ended March 31, 2024 for Towa INT and Sunsho Pharmaceutical is from April 1, 2023 toMarch 31, 2024.
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 967 million; Sunsho Pharmaceutical JPY 3,262 million
2024

6

Outline of financial results for 2024/03 (Domestic segment)* Comments below are on the comparison between 2024/03 and 2023/03 (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
24/3

Item

(JPY million)

23/3(adjusted period)(Sunsho: 12 months)

Percentage
YOYof net sales
change (%)(%)(Sunsho: 15 months)(JPY million)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)

Net sales

178,715100.0+ 18.7

150,588100.0

155,538

100.0

Cost of sales

112,384

62.9+ 18.6

94,742

62.9

98,635

63.4

SGA

44,441

24.9

- 1.8

45,23730.0

45,97029.6

Segment
profit21,88912.2+ 106.3

10,6087.0

10,931

7.0

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

7

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

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

Item

(JPY million)

23/3

Percentage ofnet sales (%)

YOY change(%)(JPY million)

Percentage ofnet sales (%)

Net sales

153,720100.0+ 20.7

127,355

100.0

Cost of sales

92,80960.4+ 22.275,973

59.7

SGA

40,510

26.4

- 3.3

41,91032.9

Segment profit

20,40013.3+ 115.4

9,471

7.4

2024

8

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

23/3
24/3

Item

(JPY million)

23/3(adjusted period)(12 months)

Percentage
YOYof net sales
change (%)(%)(15 months)(JPY million)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)

Net sales

24,995

100.0

+ 7.6

23,232100.0

28,182

100.0

Cost of sales

19,574

78.3

+ 4.3

18,76880.8

22,662

80.4

SGA

3,931

15.7

+ 18.2

3,325

14.3

4,060

14.4

Segment profit

1,489

6.0

+ 30.8

1,138

4.9

1,460

5.2

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

2024

9

Net sales by supplement year (Towa non-consolidated)(JPY billion)
2020/03
1.2

Year of productsupplement
24/3

2015/03 2016/03 2017/03
5.0
8.4
6.7

23/3

4.8

7.0

4.9

2018/03
11.0

9.5

2019/03
6.6

6.2

2021/039.9

8.7

2022/0313.7

12.9

2023/0313.8

2024/03
4.5

5.2

1.2
22/3

5.2

7.0

5.4

11.1

7.0

10.6

6.0

1.2
21/3

5.3

6.9

5.4

10.9

6.6

7.4

1.0
0

10

20

30

40

50

60

2024

70

80

10

Net sales by distribution channel (Towa non-consolidated)

24/3

41.4% (71)

18.7%

35.7%

23/3

42.3% (71)

18.9%

33.0%

5.7%

22/3

43.1% (71)

19.6%

32.3%

5.0%

21/3

44.7% (71)20.0%

Direct sales

Sales agent

Wholesaler

29.4%

4.2%

6.0%

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

23/3

Number ofcustomers

Coverage(%)

Transaction
amount %mix (%)

Change innumber ofcustomers

Change intransaction
amount (%)

Number ofcustomers

Transaction
amount %mix (%)

Approx.8,200

7,612

93.3

10.3

+ 130

+ 14.5

7,482

10.9

DPC

Approx.1,760

1,743

99.1

6.2

+ 23

+ 15.51,720

6.4

Clinics

Approx.106,000

31,305

29.5

11.8+ 1,629+ 12.1

29,676

12.6

Pharmacies

Approx.62,000

60,066

96.8

77.7+ 1,607+ 22.558,459

76.3

Total

Approx.176,200

98,983

56.2

100.0

+ 3,366+ 20.3

95,617100.0(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（adjusted period）

24/3
Item

(JPY million)（Sunsho: 12 months）

Percentage ofnet sales (%)

YOY change(%)(JPY million)

Percentage ofnet sales (%)

Personnel

17,3849.7+ 1.7

17,09011.3

Advertising

814

0.5

- 19.4

1,010

0.7

Packing & freight

2,805

1.6

+ 0.1

2,803

1.9

Commissions paid

5,164

2.9

+ 4.6

4,939

3.3

R&D expenses

11,045

6.2- 9.9

12,262

8.1

Depreciation

1,380

0.8

+ 5.3

1,311

0.9

Other

5,847

3.3

+ 0.5

5,818

3.9

SGA

44,441

24.9

- 1.8

45,23730.0

Notes: 1. The consolidated fiscal year ended March 31, 2024 for Sunsho Pharmaceutical is from April 1, 2023 to March 31, 2024.
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 (Overseas segment)* Comments below are on the comparison between 2024/03 and 2023/03 (adjusted period):● Net sales: Increased due to good performance in Europe and 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 period23/3（adjusted period）

24/3
Item

（12 months）

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

23/3（15 months）(JPY million)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)

Net sales

49,324100.0+ 12.943,686100.0

53,487

100.0

Cost of sales

34,205

69.3+ 10.930,84970.6

37,50970.1

SGA

15,107

30.6+ 12.813,38730.6

16,255

30.4

11

0.0

ー

- 551

- 1.3

- 277

- 0.5

Segment profit(loss)
Exchange rateduring period (TTM)

24/3

23/3 12months

23/3 15months

EUR 1

JPY 156.8

JPY 140.97

JPY 138.85

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

14

Outline of financial results for 2024/03(Overseas segment, by region)(JPY million, %)Towa INT Europe
Fiscal period23/3（adjusted period）

24/3

Item

（12 months）

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

23/3（15 months）(JPY million)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)

Net sales

28,736100.0+ 19.724,006100.0

29,373

100.0

Cost of sales

19,60468.2+ 26.6

15,48564.5

18,931

64.5

SGA

10,28635.8+ 10.6

9,301

38.7

11,334

38.6

Segment loss

- 1,154

- 4.0

ー

- 780

- 3.3

- 892

- 3.0

Exchange rateduring period (TTM)

24/3

23/3 12months

23/3 15months

EUR 1

JPY 156.8

JPY 140.97

JPY 138.85

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

15

Outline of financial results for 2024/03(Overseas segment, by region)(JPY million, %)Towa INT U.S.
Fiscal period23/3（adjusted period）

24/3

Item

(JPY million)（12 months）

Percentage
YOYof net sales
change (%)(%)

23/3（15 months）(JPY million)

Percentageof net sales(%)(JPY million)

Percentageof net sales(%)

Net sales

20,588

100.0

+ 4.6

19,679100.0

24,114

100.0

Cost of sales

14,601

70.9

- 5.0

15,36478.1

18,578

77.0

SGA

4,820

23.4

+ 18.0

4,086

20.8

4,921

20.4

Segment profit

1,166

5.7

+ 409.0

229

1.2

614

2.5

24/3

23/3 12months

23/3 15months

JPY 156.8

JPY 140.97

JPY 138.85

Exchange rate during
period
(TTM)

EUR 1

Exchange rateduring period
(TTM)
USD 1

24/3

23/3 12months

23/3 15months

JPY 144.62

JPY 135.47

JPY 131.61

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

16

Sales ratio of products released in the last three years(Overseas segment)

U.S.（＄comparison）

Europe（€ comparison）

2024/03

88.2%

11.8%

2024/03

77.6%

22.4%

2023/03

84.0%

16.0%

2023/03

81.8%

18.2%

2022/03

85.5%

14.5%

2022/03

79.4%

20.6%

Sales of existing products

Sales of existing products

Sales of products released in the last three years

Sales of products released in the last three years* Sales of products released in the last three years
2022/03: Products released during the period from January 1, 2019 to December 31, 2021
2023/03: Products released during the period from January 1, 2020 to March 31, 2023
2024/03: Products released during the period from January 1, 2021 to March 31, 2024

2024

17

Contents
1. Outline of financial results for 2024/03
2. Outline of financial results for 2024/03– Progress rate
Consolidated
Domestic segment
BreakdownOverseas segment
By region
Trend of R&D expenses

3. Balance sheets, capital expenditure anddepreciation
4. Full-year earnings plan for 2025/03

5. Initiatives to increase corporate value
2024

18

Outline of financial results for 2024/03 – Progress rate
(Consolidated)● Net sales: Almost as planned● Operating profit: The plan was achieved because Towa Pharmaceutical’s expenditure of SG&A
expenses such as R&D expenses was lower than expected.
● Ordinary profit: The achievement rate was good due mainly to the posting of a 5.5 billion yen gain on
valuation of derivatives.
(JPY million, %)Consolidated earnings
Fiscal periodItem24/3 Results(JPY million)

24/3 Full-year Plan (announced on Feb 13)

Percentage ofnet sales (%)(JPY million)

Percentage ofnet sales (%)

Achievement
rate (%)

Net sales

227,934100.0

229,000

100.0

99.5

Cost of sales

146,55164.3

148,000

64.6

99.0

SGA

63,73528.0

65,50028.6

97.3

Operating profit

17,6477.7

15,5006.8

113.9

Ordinary profit

24,47710.7

19,5008.5

125.5

Profit before income taxes

24,45910.7

19,5008.5

125.4

Profit attributable to owners of

16,1737.1

13,000

5.7

124.4

parentExchange rate (TTM)
EUR 1Assumed rate for 24/3

Rate during 24/3

（announced on Feb13）

JPY 156.8

JPY 155.29

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

19

Outline of financial results for 2024/03 – Progress rate
(Domestic segment)● Net sales: Almost as planned● Segment profit: The plan was achieved because Towa Pharmaceutical’s expenditureof SG&A expenses such as R&D expenses was lower than expected.
(JPY million, %)Domestic segment
Fiscal period(Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps
Pharmaceutical, Sunsho Pharmaceutical)
24/3 Results

Item(JPY million)

24/3 Full-year Plan (announced on Feb 13)

Percentage of net
sales (%)(JPY million)

Percentage ofnet sales (%)

Achievement rate(%)

Net sales

178,715100.0

180,000

100.0

99.3

Cost of sales

112,384

62.9

114,300

63.5

98.3

SGA

44,44124.9

46,00025.6

96.6

Segment profit

21,88912.2

19,700

10.9

111.1

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

20

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

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

Sunsho Pharmaceutical

24/3 Full-year Plan(announced on February 13)

Item(JPY million)

Percentageof net sales(%)(JPY million)

Net sales

153,720100.0

153,000

Cost of sales

92,80960.4

SGA

40,510

Segment
profit20,40024/3 Results

24/3 Full-year Plan(announced on Feb 13)

Percentage
Achievementof net sales
rate (%)(%)(JPY million)

Percentageof net sales(%)(JPY million)

Percentage
Achievementof net sales
rate (%)
(%)

100.0

100.5

24,995100.0

27,000

100.0

92.6

92,700

60.6

100.1

19,57478.3

21,600

80.0

90.6

26.4

42,200

27.6

96.0

3,931

15.7

3,800

14.1

103.5

13.3

18,100

11.8

112.7

1,489

6.0

1,600

5.9

93.1

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

2024

21

Outline of financial results for 2024/03 – Progress rate
(Overseas segment)● Both Net sales and segment profit achieved plan
(JPY million, %)Overseas segment (Towa INT)
Fiscal period
24/3 Results
Item(JPY million)

24/3 Full-year Plan (announced on Feb 13)

Percentage ofnet sales (%)(JPY million)

Percentage ofnet sales (%)

Achievement rate(%)

Net sales

49,324100.0

49,000

100.0

100.7

Cost of sales

34,205

69.3

33,700

68.8

101.5

SGA

15,10730.6

15,30031.2

98.7

Segment profit

11

0.0

0

0

ー

Exchange rate (TTM)
EUR 1Rate during 24/3

（announced on Feb 13）

JPY 156.8

JPY 155.29

Assumed rate for 24/3

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

22

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

Towa INT U.S.

Fiscal period
24/3 Results
Item

24/3 Full-year Plan(announced on February 13)

24/3 Results

24/3 Full-year Plan(announced on February 13)

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

Net sales

28,736100.0

27,800

100.0

103.4

20,588100.0

21,200

100.0

97.1

Cost of sales

19,60468.2

18,600

66.9

105.4

14,601

70.9

15,100

71.2

96.7

SGA

10,28635.8

10,400

37.4

98.9

4,820

23.4

4,900

23.1

98.4

Segment
profit (loss)- 1,154- 4.0- 1,200

- 4.3

ー

1,166

5.7

1,200

5.7

97.2

Exchange rate (TTM)
EUR 1Assumed rate for 24/3

Rate during 24/3

（announced on Feb 13）

JPY 156.8

JPY 155.29

Exchange rate
(TTM)
USD 1

Assumed rate for 24/3

Rate during 24/3

（announced on Feb 13）

JPY 144.62

JPY 143.29

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

23

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

18.0

16.0

15.3

14.0

3.0
11.5

12.0

10.6
10.0

1.5

1.1

2.1

15.1
13.2

2.1

2.2

1.1

1.1

8.0
6.0
4.0

11.1
9.1

9.4

21/3

22/3

11.8
9.9

2.0
0.0

23/3

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

24/3

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 fromJanuary 1, 2022, to March 31, 2023.
2. 2021/03–2022/03 does not include the results of Sunsho Pharmaceutical.
2024

24

Table of contents

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

4. Full-year earnings plan for 2025/03

5. Initiatives to increase corporate value

2024

25

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

24/3

23/3

Change29,65024,257+ 5,393

62,916

46,795+ 16,121

8,854

7,777

+ 1,077

Item

24/3

23/3

Notes and accounts payable - trade

15,652

17,272- 1,619

Electronically recorded obligations operating

10,72018,798- 8,078

Short-term borrowings

3,112

3,677

- 565

10,1207,527+ 2,593

9,768

14,012- 4,244

30,743

17,240+ 13,503

Total current liabilities

80,11878,529+ 1,589

Long-term borrowings

189,124

150,314+ 38,810

Other non-current liabilities

5,516

5,609

- 93

Total non-current liabilities

194,641

155,923+ 38,717

Total liabilities

274,759

234,453+ 40,306

Foreign currency translation
adjustment

14,3008,608+ 5,691

Other net assets

141,593

128,286+ 13,307

Current portion of long-termborrowings
Notes and accounts payable equipment
Other current liabilities

Change48,98644,457+ 4,529

Other current assets

52,086
15,222

48,470
11,232+ 3,616+ 3,989

Total current assets

217,718

182,990+ 34,727

57,21956,190+ 1,028

18,017

18,966- 949

Other non-current assets

55,91732,56849,212

31,15534,61347,431+ 24,762- 2,044+ 1,780

Total non-current assets

212,934

188,357+ 24,577

Total net assets

155,893

136,894+ 18,998

Total assets

430,653

371,347+ 59,305

Total liabilities and net assets

430,653

371,347+ 59,305

Buildings and structures,net
Machinery, equipment
and vehicles, net
Construction in progress
Goodwill

Exchange rate at endof period (TTM)

24/3

23/3

EUR 1

JPY 163.24

JPY 145.72

Notes: 1. KAMATA is included in Towa Group’s consolidated balance sheet from 2024/03.
2.The consolidated fiscal year ended March 31, 2024 for Towa INT and Sunsho Pharmaceutical is from April 1, 2023 to March 31, 2024.
2024

26

Capital expenditure and depreciation (Consolidated)(JPY billion)

50.0
Depreciation in 2024/03

40.0

Manufacturing expenses: JPY 3.27 bn

39.6

SGA: JPY 10.38 bn

2.8
2.5

0.9

30.0

9.7
1.2

10.0

10.4
1.3
3.2
2.0
3.8

8.4

0.0
21/3
1.
2.
3.
4.
5.

10.2
1.3

14.8
1.7

8.8

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.

14.3

13.7
2.1
2.2

2.1
2.7
2.4
9.5

6.4
23/3

1.1

22.9

22.6

25.5

20.0

Notes:

36.9
1.5

36.0
2.2

9.4
24/3

14.2
1.7
2.4
3.3
6.9

10.1

3.2
8.2

24/3 Revised

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

2024

27

Table of contents
1. Outline of financial results for 2024/03
2. Outline of financial results for 2024/03– Progress rate
3. Balance sheets, capital expenditure and depreciation
4. Full-year earnings plan for 2025/03
Consolidated
Segment information
Domestic segment
BreakdownOverseas segment
By region
Half-year plans by segment
R&D expenses
Capital expenditure and depreciation
New products to be listed on NHI drug reimbursement
price list in June 2024 (Non-consolidated)

5. Initiatives to increase corporate value
2024

28

Outline of full-year earnings plan for 2025/03
Summary● We plan to achieve growth in both sales and profit as compared with theresults for 2024/03.
Fiscal periodItem25/3 Full-year plan
(JPY billion)

24/3 Results

YOY change (%)(JPY billion)

Net sales

261.5+ 14.7％

227.9

Operating profit

18.0+ 2.0％

17.6●Production volume (Non-consolidated; tablets and capsules only)→ Approx. 15.1 billion tablets, up approx. 11.6% year on year
●Sales volume (Non-consolidated; tablets and capsules only)→ Approx. 15.4 billion tablets, up approx. 16.0% year on year

2024

29

Full-year earnings plan for 2025/03 (Consolidated)● Net sales:● Operating profit:● Ordinary profit:

Planned to achieve increases in net sales both in Japan and overseas
Planned to achieve an increase in profit as gross margin will increase as a result of
an increase in sales although SGA will also increase
The plan does not reflect any derivative gains or losses as the outlook of the foreignexchange markets is uncertain.
(JPY million, %)Consolidated earnings
Fiscal period
25/3 Full-year plan
Item

(JPY million)

24/3 Results

Percentage of net
sales (%)

YOY change (%)(JPY million)

Percentage of net
sales (%)

Net sales

261,500

100.0+ 14.7

227,934

100.0

Cost of sales

168,000

64.2+ 14.6

146,551

64.3

SGA

75,50028.9+ 18.563,73528.0

Operating profit

18,0006.9+ 2.0

17,647

7.7

Ordinary profit

17,6006.7- 28.1

24,477

10.7

Profit before income taxes

17,6006.7- 28.024,459

10.7

Profit attributable to11,6004.4- 28.3

16,173

7.1

owners of parent

Exchange rate (TTM)
EUR 1

25/3 assumption

24/3 assumption

JPY 152.00

JPY 156.80

2024

30

Full-year earnings plan for 2025/03 (Segment information)(JPY million)

Segment information
Domestic

Item

Towa Pharmaceutical
J-DolphPharmaceutical
Daichi Kasei
Greencaps
Pharmaceutical
SunshoPharmaceutical(including KAMATA)

Overseas
Adjustment

Total(Goodwillamortization, etc.)

Consolidated

Towa HDNet sales

209,700

52,300262,000- 500

261,500

Cost of sales

132,800

35,400168,200- 200

168,000

SGA

54,60016,90071,5004,000

75,500

Segment profit

22,300022,300- 4,300

18,000Notes:
1. The consolidated fiscal year ending March 31, 2024 for Towa HD and Sunsho Pharmaceutical is from April 1, 2023 to March 31, 2024.
2. Goodwill amortization: Towa HD JPY 900 million; Sunsho Pharmaceutical and KAMATA JPY 3,400 million

2024

31

Full-year earnings plan for 2025/03 (Domestic segment)● Net sales:

Planned to achieve an increase as Towa Pharmaceutical plans to achieve growth insales volume although sales will be affected by NHI drug price revision● Segment profit: Planned to achieve an increase in profit as gross margin will increase as a result of
an increase in sales and although SGA such as R&D expenses will also increase(JPY million, %)Domestic segment
Fiscal period(Towa Pharmaceutical, J-Dolph Pharmaceutical, Daichi Kasei, Greencaps
Pharmaceutical, Sunsho Pharmaceutical (including KAMATA))
24/3 Results

25/3 Full-year plan
Item

(JPY million)

Percentage of net
sales (%)

YOY change (%)(JPY million)

Percentage of net
sales (%)

Net sales

209,700

100.0+ 17.3

178,715

100.0

Cost of sales

132,800

63.3+ 18.2

112,384

62.9

SGA

54,60026.0+ 22.944,441

24.9

Segment profit

22,300

10.6

+ 1.9

21,88912.2

Note: Goodwill amortization is not included.
2024

32

Full-year earnings plan for 2025/03(Domestic segment, breakdown)(JPY million, %)Fiscal period

Towa Pharmaceutical, J-Dolph
Pharmaceutical, Daichi Kasei, Greencaps
Pharmaceutical
25/3 Full-year planItem

24/3 Results

Sunsho Pharmaceutical(including KAMATA)
25/3 Full-year plan

24/3 Results

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

Net sales

181,200

100.0+ 17.9

153,720

100.0

28,500100.0+ 14.024,995

100.0

Cost ofsales

110,100

60.8+ 18.692,80960.4

22,70079.6+ 16.019,574

78.3

SGA

50,50027.9+ 24.740,510

26.4

4,100

14.4

+ 4.3

3,931

15.7

Segment
profit20,600

11.4

+ 1.0

20,400

13.3

1,700

6.0

+ 14.2

1,489

6.0

Note: Goodwill amortization is not included.

2024

33

Full-year earnings plan for 2025/03 (Overseas segment)●Net sales:
Planned to achieve an increase as sales will remain strong in Europe●Segment profit: R&D expenses are expected to increase due to new product development andresponse to nitrosamine impurities.
(JPY million, %)Overseas segment (Towa HD)
Fiscal period
24/3 Results

25/3 Full-year plan
Item

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

Percentage of net
sales (%)(JPY million)

Net sales

52,300

100.0

+ 6.0

49,324

100.0

Cost of sales

35,400

67.7

+ 3.5

34,205

69.3

SGA

16,90032.3+ 11.915,107

30.6

0

0.0

- 100.011

0.0

Segment profit(loss)
Exchange rate (TTM)
EUR 1

25/3 assumption

24/3 assumption

JPY 152.00

JPY 156.80

Note: Goodwill amortization is not included.

2024

34

Full-year earnings plan for 2025/03(Overseas segment, by region)(JPY million, %)Towa INT Europe

Towa INT U.S.

Fiscal period
24/3 Results

25/3 Full-year planItem

24/3 Results

25/3 Full-year plan

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

Net sales

33,400100.0+ 16.2

28,736100.0

18,900

100.0

- 8.2

20,588100.0

Cost ofsales

22,10066.2+ 12.7

19,60468.2

13,300

70.4

- 8.9

14,601

70.9

SGA

12,00035.9+ 16.7

10,286

35.8

4,900

25.9

+ 1.7

4,820

23.4

Segment
profit (loss)

- 700

- 2.1

ー

- 1,154

- 4.0

700

3.7

- 40.0

1,166

5.7

Exchange rate(TTM) EUR 1

25/3 assumption

24/3 assumption

JPY 152.00

JPY 156.80

Exchange rate(TTM) USD 1

25/3 assumption

24/3 assumption

JPY 138.00

JPY 144.62

Note: Goodwill amortization is not included.

2024

35

Half-year plans for 2025/03 (Consolidated)(JPY million, %)Consolidated earnings
25/3 Plan

Fiscal period
First half
Item

(JPY million)

Second half

Percentage of net
sales
(%)

(JPY million)

Percentage of net
sales
(%)

Net sales

122,800

100.0

138,700

100.0

Cost of sales

80,20065.3

87,80063.3

SGA37,40030.5

38,10027.5

Operating profit

5,200

4.2

12,8009.2

Ordinary profit

5,200

4.2

12,400

8.9

Profit before income taxes

5,200

4.2

12,400

8.9

Profit attributable to owners

3,100

2.5

8,500

6.1

of parent

2024

36

Half-year plans for 2025/03 by segment(JPY million, %)Domestic segment25/3 Plan

Fiscal period
First half
Item

Overseas segment25/3 Plan

Fiscal period

Second half

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

First half
Item

Second half

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

Net sales

97,900100.0

111,800

100.0

Net sales

25,100100.027,200100.0

Cost ofsales

62,90064.2

69,90062.5

Cost ofsales

17,40069.3

18,00066.2

SGA

27,20027.8

27,400

24.5

SGA

8,100

32.3

8,800

32.4

Segment
profit7,800

8.0

14,500

13.0

Segment
profit (loss)

- 400

- 1.6

400

1.5

Note: Goodwill amortization is not included.

2024

37

Trend of R&D expenses (Consolidated)(JPY billion)
20.0

18.7
3.6

15.3
15.0

3.0
10.6
10.0

1.5

11.5

1.1

2.1

1.1

13.2
2.2
1.1

14.0
5.0

9.1

9.4

21/3

22/3

11.1

9.9

0.0

23/3

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

24/3
Sunsho Pharmaceutical and KAMATA

25/3 Plan
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.
3. 2021/03–2024/03 does not include the results of KAMATA.
2024

38

Capital expenditure and depreciation (Consolidated)(JPY billion)
50.0

40
2.8
2.5

40.0

38
36
2.2
0.9

30.0

22.6

25.5

20.0

10.0

2.8
2.7

9.7
1.2

10.4
1.3
3.2
2.0
3.8

8.4
0.0
21/3

10.2
1.3
8.8

15
1.7
4.9
1.5
6.7

22/3

Notes: 1. Capital expenditure includes the purchase of property, plant andequipment, and intangible assets.
2. Depreciation includes the R&D expenses portion.
3. Depreciation does not include goodwill amortization for Towa INT, Sunsho
Pharmaceutical and KAMATA.
4. 2021/03-2022/03 does not include the results of Sunsho Pharmaceutical.
5. 2021/03-2024/03 does not include the results of KAMATA.
6. 2023/03 for Towa INT and Sunsho Pharmaceutical is the 15-month period
from January 1, 2022, to March 31, 2023.

14.3

13.7
2.1
2.2

2.1
2.7

6.4

9.4

23/3

16.4
2.3
2.5

2.8

11.7

12.2

3.3

2.4
9.5

17.6

6.9
24/3

25/3 Plan

Capex (Towa INT)
Capex (Sunsho Pharmaceutical and KAMATA)
Capex (Yamagata Plant)
Capex (Okayama Plant)
Capex (other)
Depreciation (Towa INT)
Depreciation (Sunsho Pharmaceutical and KAMATA)
Depreciation (domestic, excl. Sunsho Pharmaceutical and KAMATA)
2024

39

New products to be listed on NHI drug reimbursement
price list in June 2024 (Non-consolidated)
Therapeutic
category

Original/representative
drug nameProduct nameParkinson's disease drug
Parkinsonism in dementia withZONISAMIDE OD TABLETS 25mg TRE “TOWA”
Lewy bodies (levodopa
activator)

TRERIEF OD Tablets 25mg

Parkinson's disease drug
(levodopa activator)

ZONISAMIDE OD TABLETS 50mg TRE “TOWA”

TRERIEF OD Tablets 50mg

Candin antifungal agent

MICAFUNGIN SODIUM FOR INTRAVENOUS
INFUSION 50mg / 75mg “TOWA”

Funguard 50mg / 75mg for infusion

Oral cephem antibiotic
preparation

CEFCAPENE PIVOXIL HYDROCHLORIDETABLETS 75mg / 100mg “TW”
CEFCAPENE PIVOXIL HYDROCHLORIDE FINEGRANULES FOR PEDIATRIC 10% “TW”

FLOMOX Tablets 75mg / 100mg
FLOMOX Fine Granules for Pediatric
100mg

7 products for 3 ingredients are scheduled to be launched.
Sales of approx. JPY 430 million are planned for ZONISAMIDE and MICAFUNGIN in total for the first fiscal
year.
The various CEFCAPENE formulations are not included in the sales plan for new products above, as they are simply a change in the
product name (trade name) from the same dosage forms with the same ingredients that are already on the market.

2024

40

Table of contents

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

4. Full-year earnings plan for 2025/03
5. Initiatives to increase corporate value

2024

41

Initiatives to Increase Corporate Value -- Analysis of Current
Situation
Analysis of Current Situation•••

ROIC declined in 2022/03 due to an increase in invested
capital for the purchase of Sunsho Pharmaceuticalshares and the expansion and remodeling of the 3rdsolid formulation building at the Yamagata Plant.
ROIC declined further in 2023/03 due to a decrease inoperating profit.
ROIC improved in 2024/03 due to an increase inoperating profit.

Trends of ROIC, Operating Margin, and PBR

ROIC
9.0%
7.0%

7.2%

6.6%

5.6%
3.7%

5.0%
3.0%

1.3%

1.0%
March 2020 March 2021 March 2022 March 2023 March 2024

Operating Margin••

Operating margin declined in 2023/03 as operating profit
decreased by around JPY 7.9 billion in the domestic
segment and amortization of goodwill for Sunsho
Pharmaceutical increased.
Operating margin improved in 2024/03 as the operating
profit of the domestic segment recovered.

18.0%

14.6%

14.0%

12.9%

11.6%
7.7%

10.0%

2.6%

6.0%
2.0%

2020年3月 2021年3月 2022年3月 2023年3月 2024年3月

PBR•

PBR has been on a long-term declining trend due to thesmall share price* appreciation range relative to therange of net asset increase.
* Share price: Closing price on March 31

2.5
2.0
1.5
1.0
0.5

March 2008

March 2012

2024

March 2016

March 2020

March 2024

42

Initiatives to Increase Corporate Value -- Future Policy
Future Policy
We will implement the following to ensure healthy and sustainable growth.

1 Initiatives to Improve Capital Efficiency•••

We will achieve a ROIC that is higher than the WACC. We will work to increase operating profit through sales mix
improvements and cost optimization to further improve ROIC.
The Investment Review Committee will be newly established as a subordinate organization of the Executive Strategy
Meeting, which has the function of business execution, and will strengthen the examination and management ofinvestment projects based on investment standards that take are conscious of the cost of capital.
We will periodically measure and analyze PBR and ROIC, and formulate and implement improvement measures.

2 Shareholder Return•

We will work to ensure stable dividends and further increase shareholder returns, taking into account our profitability andfinancial position.

3 Continuous Dialogue with Stakeholders•••

We will periodically analyze and discuss the progress of our medium-term management plan at board meetings, etc.
We will continue to actively disclose information to capital markets and seek to engage in constructive dialogue atshareholder meetings, results presentations, and one-on-one meetings.
We recognize the importance of incorporating into our business management the important input we receive throughstakeholder dialogue. Therefore, the comments and suggestions received through the dialogue with stakeholders are
regularly reported to management.

2024

43

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

2024