Towa Pharmaceutical : FY2022(4th quarter) Summary of Consolidated Financial Results for the Year Ended March 31, 2023(Based on Japanese GAAP) (616K/10P)

Summary of Consolidated Financial Results

for the Year Ended March 31, 2023

(Based on Japanese GAAP)

May 15, 2023

Company name:

TOWA PHARMACEUTICAL CO., LTD.

Stock exchange listing:

Tokyo

Stock code:

4553

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

Representative:

President and Representative Director

Itsuro Yoshida

Inquiries:

Director

Masao Tanaka

TEL [phone]

Scheduled date of ordinary general meeting of shareholders:

June 27, 2023

Scheduled date to file Securities Report:

June 28, 2023

Scheduled date to commence dividend payments:

June 28, 2023

Preparation of supplementary material on financial results:

Yes

Holding of financial results meeting:

Yes

(for analysts and institutional investors)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)

(1) Consolidated operating results

Percentages indicate year-on-year changes

Net sales

Operating profit

Ordinary profit

Profit attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

Year ended March 31, 2023

208,859

-

5,514

-

5,141

-

2,201

-

Year ended March 31, 2022

165,615

6.9

19,205

(3.6)

22,739

21.7

15,914

14.0

Earnings per share

Diluted earnings per

Profit attributable to

Ordinary profit/total

Operating profit/net

share

owners of

assets

sales

parent/equity

Yen

Yen

%

%

%

Year ended March 31, 2023

44.72

-

1.6

1.5

2.6

Year ended March 31, 2022

323.36

316.19

12.8

7.9

11.6

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 percentage change data is not provided.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Millions of yen	Millions of yen		%		Yen
As of March 31, 2023		371,347		136,894		36.9		2,781.17
As of March 31, 2022		332,097		132,169		39.8		2,685.18
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at end of period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
Year ended March 31, 2023		2,544		(30,284)		17,481		24,257
Year ended March 31, 2022		22,129		(59,729)		46,540		32,830
2. Cash dividends
		Annual dividends per share		Total cash	Dividend payout	Ratio of dividends
						to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total	dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen	Yen	Yen	Yen	Yen	Millions of yen	%	%
Year ended March 31, 2022	-	27.00	-	33.00	60.00	2,953	18.6	2.4
Year ended March 31, 2023	-	30.00	-	30.00	60.00	2,953	134.2	2.2
Year ending March 31, 2024	-	30.00	-	30.00	60.00		42.8
(Forecast)
			1

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

	Net sales		Operating profit		Ordinary profit		Profit attributable to	Earnings per share
				owners of parent
	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
Six months ending	104,600	-	5,800		-	5,600		-	3,400		-	69.08
September 30, 2023
Full year	216,300	-	11,800		-	11,500		-	6,900		-	140.18

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 percentage change data is not provided.

4. Notes

(1)	Changes in significant subsidiaries during the year ended March 31, 2023	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(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:	Yes
	Changes in accounting policies due to other reasons:	No
	Changes in accounting estimates:	No
	Restatement of prior period financial statements:	No

(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, 2023	51,516,000	shares	As of March 31, 2022	51,516,000	shares
Number of treasury shares at the end of the period
	As of March 31, 2023	2,294,167	shares	As of March 31, 2022	2,294,101	shares
Average number of shares during the period
	Year ended March 31, 2023	49,221,853	shares	Year ended March 31, 2022	49,215,648	shares

2

Consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of March 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	32,830	24,257
Notes and accounts receivable - trade	42,896	46,795
Electronically recorded monetary claims - operating	7,971	7,777
Merchandise and finished goods	32,098	44,457
Work in process	12,055	13,906
Raw materials and supplies	28,548	34,564
Derivatives	5,832	3,981
Other	4,750	7,431
Allowance for doubtful accounts	(119)	(180)
Total current assets	166,864	182,990
Non-current assets
Property, plant and equipment
Buildings and structures, net	52,559	56,190
Machinery, equipment and vehicles, net	16,224	18,966
Land	16,549	17,039
Construction in progress	11,709	31,155
Other, net	2,829	3,652
Total property, plant and equipment	99,873	127,004
Intangible assets
Goodwill	39,064	34,613
Manufacturing and sales right	6,626	7,332
Technology assets	8,132	7,115
Other	4,241	3,884
Total intangible assets	58,063	52,945
Investments and other assets
Investment securities	464	676
Shares of subsidiaries and associates	607	607
Deferred tax assets	4,259	5,303
Retirement benefit asset	27	-
Other	2,760	2,632
Allowance for doubtful accounts	(825)	(812)
Total investments and other assets	7,295	8,407
Total non-current assets	165,232	188,357
Total assets	332,097	371,347

3

			(Millions of yen)
		As of March 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade	14,834	17,272
Electronically recorded obligations - operating	14,242	18,798
Short-term borrowings	49,335	3,677
Current portion of bonds with share acquisition rights	4,150	-
Current portion of long-term borrowings	8,022	7,527
Accounts payable - other	11,251	12,822
Income taxes payable	4,285	1,190
Provision for bonuses for directors	108	117
Notes payable - facilities	3,427	11,547
Accounts payable - facilities	2,207	2,465
Other	3,206	3,108
Total current liabilities	115,073	78,529
Non-current liabilities
Long-term borrowings	79,194	150,314
Retirement benefit liability	547	322
Other	5,111	5,287
Total non-current liabilities	84,853	155,923
Total liabilities	199,927	234,453
Net assets
Shareholders' equity
Share capital	4,717	4,717
Capital surplus	7,837	7,837
Retained earnings	122,131	121,232
Treasury shares	(5,608)	(5,608)
Total shareholders' equity	129,078	128,179
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	113	106
Foreign currency translation adjustment	2,977	8,608
Total accumulated other comprehensive income	3,091	8,715
Total net assets	132,169	136,894
Total liabilities and net assets	332,097	371,347

4

Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Millions of yen)
		Fiscal year ended	Fiscal year ended
		March 31, 2022	March 31, 2023
Net sales	165,615	208,859
Cost of sales	95,429	136,145
Gross profit	70,185	72,713
Selling, general and administrative expenses	50,980	67,199
Operating profit	19,205	5,514
Non-operating income
Interest income	8	17
Dividend income	6	8
Foreign exchange gains	795	1,181
Gain on valuation of derivatives	2,896	-
Compensation income	-	873
Subsidy income	310	205
Other	528	604
Total non-operating income	4,546	2,889
Non-operating expenses
Interest expenses	230	635
Loss on valuation of derivatives	-	1,850
Provision of allowance for doubtful accounts	670	-
Commission for syndicated loans	-	492
Other	111	283
Total non-operating expenses	1,011	3,262
Ordinary profit	22,739	5,141
Extraordinary income
Gain on sale of non-current assets	123	17
Other	-	0
Total extraordinary income	123	18
Extraordinary losses
Loss on disposal of non-current assets	27	63
Impairment losses	25	432
Loss on valuation of investment securities	58	20
Loss on valuation of shares of subsidiaries and associates	505	-
Other	-	38
Total extraordinary losses	616	554
Profit before income taxes	22,246	4,605
Income taxes - current	6,155	3,038
Income taxes - deferred	176	(633)
Total income taxes	6,331	2,404
Profit	15,914	2,201
Profit attributable to owners of parent	15,914	2,201

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