Summary of Consolidated Financial Results
for the Year Ended March 31, 2024
(Based on Japanese GAAP)May 14, 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

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 25, 2024
June 26, 2024

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 26, 2024
YesHolding of financial results meeting:

Yes

TEL

06-6900-9102(for analysts and institutional investors)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended March 31, 2024 (from April 1, 2023 to March 31, 2024)(1) Consolidated operating results
Net salesYear ended March 31, 2024
Year ended March 31, 2023

Millions of yen
227,934
208,859

Operating profit%––

Millions of yen
17,647
5,514%––

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parentMillions of yen% Millions of yen%
24,477–
16,173–
5,141–
2,201–

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassets
salesparent/equityYen
Yen%%%
Year ended March 31, 2024
328.59
–
11.0
6.1
7.7
Year ended March 31, 2023
44.72
–
1.6
1.5
2.6
Note: The fiscal period ended March 31, 2023 represents a transitional period for the change in the fiscal period for nine consolidated
subsidiaries, scoped 15-month period from January 1, 2022-March 31, 2023. Due to this method of presentation, year-on-year percentagechange data is not provided.
Earnings per share

Diluted earnings pershare(2) Consolidated financial position
Total assets
As of March 31, 2024
As of March 31, 2023

Net assets

Equity ratio

Millions of yen
430,653
371,347

Millions of yen
155,893
136,894

Cash flows fromoperating activities
Millions of yen
8,212
2,544

Cash flows frominvesting activities
Millions of yen(40,394)(30,284)

Net assets per share
%
36.2
36.9

Yen
3,167.27
2,781.17(3) Consolidated cash flows

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

Cash flows fromCash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen
35,40729,65017,481
24,257

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen%%––30.00
30.00

––

30.00
30.0060.00
60.00

2,953
2,953

134.2
18.3

2.2
2.0

–

30.00

–30.00

60.00

1

25.5

3. Forecast of consolidated financial results for the year ending March 31, 2025 (from April 1, 2024 to March 31, 2025)
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
Six months ending
122,800
14.3
5,200 (25.8)
5,200 (49.2)
3,100 (55.4)
62.98
September 30, 2024
Full year261,500
14.7
18,0002.0
17,600 (28.1)
11,600 (28.3)
235.67.
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) 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:
Changes in accounting policies due to other reasons:

NoNo

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2024

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 March 31, 2024

2,295,857 shares As of March 31, 2023

2,294,167 shares

49,220,501 shares Year ended March 31, 2023

49,221,853 shares

Average number of shares during the period
Year ended March 31, 20242

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

As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade24,257
46,79529,65062,916

Electronically recorded monetary claims - operating
Merchandise and finished goods

7,777
44,457

8,854
48,986Work in process
Raw materials and supplies

13,90634,564

13,90638,180Derivatives
Other

3,981
7,431

9,531
5,804

Allowance for doubtful accounts

(180)

(113)

182,990

217,718

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

56,19057,219Machinery, equipment and vehicles, net
Land18,966
17,03918,017
18,251

Construction in progress
Other, net

31,155
3,652

55,917
4,237

Total property, plant and equipment

127,004

153,642

Intangible assets
Goodwill

34,61332,568Manufacturing and sales right
Technology assets

7,332
7,115

6,873
6,302

Other

3,884

4,841

Total intangible assets

52,94550,586

676
607

641
607

Deferred tax assets
Other

5,303
2,632

5,699
2,557

Allowance for doubtful accounts

(812)

(800)

Investments and other assets
Investment securitiesShares of subsidiaries and associates

Total investments and other assets
Total non-current assets
Total assets

38,407

8,705

188,357

212,934

371,347

430,653(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Liabilities
Current liabilities
Notes and accounts payable - trade17,272

15,652

Electronically recorded obligations - operating
Short-term borrowings

18,7983,677

10,7203,112

Current portion of long-term borrowings
Accounts payable - other

7,527
12,822

10,12015,985

Income taxes payable
Provision for bonuses for directors1,190
117

7,926
96

Notes payable - facilities
Accounts payable - facilities

11,547
2,465

3,815
5,952

Other

3,108

6,734

Total current liabilities

78,52980,118150,314322

189,124220

Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other

5,287

5,296

155,923

194,641

234,453274,759

Shareholders' equity
Share capital

4,717

4,717

Capital surplus
Retained earnings

7,837
121,232

7,838
134,452

Treasury shares(5,608)(5,606)

Total shareholders' equity

128,179

141,401

106
8,608

191
14,300Total non-current liabilities
Total liabilities
Net assets

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

48,715

14,491

136,894

155,893371,347

430,653

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income
Fiscal year ended
March 31, 2023
208,859(Millions of yen)
Fiscal year ended
March 31, 2024
227,934

Cost of sales

136,145146,551

Gross profit

72,71381,383

Selling, general and administrative expenses

67,19963,735

Operating profit

5,514

17,647

17

97

8
1,181

9
1,593–
205

5,550
362

Net sales

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Gain on valuation of derivatives
Subsidy income
Other

1,477

498

Total non-operating income

2,889

8,111

635
1,850

947
–

776

335

Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets

3,262

1,282

5,141

24,477

17313

Other

0–

Total extraordinary income

18313

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

6320

88222

Other

470

19

Total extraordinary losses

554

331

Profit before income taxes

4,605

24,459

Income taxes - current

3,038

8,818

Extraordinary losses

Income taxes - deferred

(633)

(532)

Total income taxes

2,404

8,286

Profit2,201

16,173

Profit attributable to owners of parent

2,201

16,173

5Consolidated statements of comprehensive income

2,201(Millions of yen)Fiscal year ended
March 31, 2024
16,173

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

(6)
5,630

84
5,691

Total other comprehensive income

5,623

5,776

7,825

21,949

7,825–

21,949–Fiscal year ended
March 31, 2023
ProfitOther comprehensive income

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

6Consolidated statements of changes in equity
Fiscal year ended March 31, 2023
(Millions of yen)
Accumulated other comprehensive
incomeShareholders' equity

Share capital

Balance at beginning of
period4,717

CapitalsurplusRetainedearnings

7,837

122,131

Valuation
Total
difference onshareholders' availableequity
for-salesecurities

Treasuryshares(5,608)129,078

113

Foreigncurrencytranslation
adjustment
2,977

Total
accumulated
otherTotal net
assetscomprehensive
income3,091

132,169

Changes during period
Dividends of surplus(3,100)(3,100)(3,100)

Profit attributable toowners of parent

2,201

2,201

2,201

(0)

(0)

––

Purchase of treasury
sharesDisposal
sharesof(0)treasury

Net changes in items
other than shareholders'equityTotal changes
periodduringBalance at end of period

(6)

5,630

5,623

5,623

––(898)

(0)

(898)

(6)

5,630

5,623

4,725

4,717

7,837

121,232(5,608)128,179

106

8,608

8,715

136,894

Fiscal year ended March 31, 2024
(Millions of yen)
Accumulated other comprehensive
incomeShareholders' equity

Share capital

Balance at beginning ofperiod

4,717

CapitalsurplusRetainedearnings

7,837

121,232

Valuation
Total
difference onshareholders' availableequity
for-salesecurities

Treasuryshares(5,608)128,179

106

Foreigncurrencytranslation
adjustment
8,608

Total
accumulated
otherTotal net
assetscomprehensive
income8,715

136,894

Changes during period
Dividends of surplus(2,953)(2,953)(2,953)

Profit attributable toowners of parent

16,173

16,173

16,173

(0)

(0)

(0)

22

2

Purchase of treasury
shares
Disposal
sharesoftreasury

0

Net changes in items
other than shareholders'equityTotal changes
periodduringBalance at end of period

84

5,691

5,776

5,776–

013,2192

13,222

84

5,691

5,776

18,998

4,717

7,838

134,452(5,606)

141,401

191

14,30014,491

155,8937

Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
March 31, 2024

Fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit before income taxes

4,605

24,45914,261
5,148

13,659
4,229

31
4(94)
(25)

Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset(275)
27(135)–

Loss (gain) on sale of non-current assets
Loss (gain) on disposal of non-current assets(17)
63(313)
88

Interest and dividend income
Interest expenses

(25)
635

(106)
947

Loss (gain) on valuation of derivatives
Loss (gain) on valuation of securities

1,850
19

(5,550)(18)

Decrease (increase) in trade receivables
Decrease (increase) in inventories(1,592)(18,496)(15,523)(6,288)

Increase (decrease) in trade payables
Subsidy income

6,554
(205)

(10,509)(362)

Other, net(3,522)

5,630

Subtotal

9,066

10,087

Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses for directors

Interest and dividends received

24104

Interest paid
Income taxes refund (paid)(610)(6,285)(941)(1,760)Compensation received
Subsidies received

143
205

509
214

2,544

8,212

Net cash provided by (used in) operating activities
Cash flows from investing activities
Proceeds from sale of securities

34–

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment(28,731)239(37,851)
1

Purchase of intangible assets
Proceeds from sale of intangible assets(1,738)15(1,474)
419

(301)

(50)

–(1,570)198

131(30,284)(40,394)

Purchase of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Other, net
Net cash provided by (used in) investing activities

8

(Millions of yen)
Fiscal year ended
March 31, 2024

Fiscal year ended
March 31, 2023
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings(45,680)
78,831(768)
46,935

Repayments of long-term borrowingsRedemption of bonds with stock acquisition rights(8,118)(4,150)(7,607)–Purchase of treasury shares
Dividends paid

(0)(3,100)(0)(2,952)

Repayments of lease liabilities
Other, net

(146)
(153)

(222)
24

Net cash provided by (used in) financing activities

17,48135,407

Effect of exchange rate change on cash and cash equivalents

1,685

2,167

Net increase (decrease) in cash and cash equivalents(8,573)

5,393

Cash and cash equivalents at beginning of period

32,83024,257

Cash and cash equivalents at end of period

24,25729,6509Segment information
Information concerning net sales and profit/loss by reportable segment
Fiscal year ended March 31, 2023
(Millions of yen)
Reportable segment
Domestic

Overseas

Adjustment(Note 1)

Subtotal

Total(Note 2)

Sales
Sales to outside customers

155,538

53,321

208,859–

208,859

Sales or transfers between
segments

–

166

166

(166)

–

155,538

53,487

209,026(166)

208,859

Segment profit(loss)

10,931(277)

10,653(5,139)5,514

Segment assets

310,434

60,913371,347–

371,347

12,1602,101

14,261–

14,261

Total

Other items
Depreciation

Increases of property, plantandequipment
and36,843
2,801
39,645–39,645
intangible assets
Notes: 1. Adjustment in segment profit represents goodwill amortization of (5,148) million yen, and elimination of internal transactions
between segments of 9 million yen.
2. Segment profit (loss) matches operating profit on the consolidated statements of income.

Fiscal year ended March 31, 2024
(Millions of yen)
Reportable segment
Domestic

Overseas

Adjustment(Note 1,2)

SubtotalTotal(Note 3)

Sales
Sales to outside customers

178,715

49,218

227,934–

227,934

Sales or transfers between
segments–

105

105(105)–

178,715

49,324228,040(105)

227,934

Segment profit

21,88911

21,901(4,253)

17,647

Segment assets

360,882

69,824

430,707(54)

430,653

11,601

2,058

13,659–13,659Total

Other items
Depreciation

Increases of property, plant
andequipment
and33,7482,218
35,967–35,967
intangible assets
Notes: 1. Adjustment in segment profit represents goodwill amortization of (4,229) million yen, and elimination of internal transactions
between segments of (24) million yen.
2. Adjustment in segment assets represents elimination of internal transactions between segments.
3. Segment profit matches operating profit on the consolidated statements of income.

10