ROHTO PHARMACEUTICAL CO.,LTD. (4527) Q1 2027 Earnings Call Transcript

Q&A of Financial Results Briefing for Q1 (Apr. - Jun.) of the Fiscal Year Ending March 31, 2027

FY2027/3 Q1 (Apr.-Jun.)

Financial Results Briefing - Q&A August 6, 2026 19:00 – 20:00 Respondents:

• Masaya Saito, Executive Vice President, Chief Financial Officer (CFO) • Miki Takei, Executive Officer and Chief Communication Officer • Kyoko Nakata, Director of the Finance and Accounting Division

1-1) Please tell us about your approach to future price increases in Japan and your pricing policy for new products using phytoexosome technology. →Our pricing strategy is not to apply a uniform rate of price increase. Rather, our basic approach is to set the price of each product at a level commensurate with the value it provides. 1-2) How do you view the sales trend of “HADALABO” following the price increase in April 2026? →”HADALABO” has remained solid even after the price increase. We will continue to closely monitor trends in unit sales and sales value. 1-3) You expect Japan's sales growth rate to moderate later in the fiscal year compared with Q1. Is this because you are already seeing a slowdown, or is it an assumption built into the plan? →Rather than reflecting a clear slowdown that we are seeing at present, this reflects our planning assumption that growth will moderate in the latter part of the fiscal year. 2-1) What risks are you monitoring as you work toward achieving this fiscal year's earnings plan? →Because we handle seasonal products, weather factors such as a cool summer, a warm winter, and lower pollen levels represent risks. We also view a prolonged situation in the Middle East and strongerthan-expected yen appreciation as risks. We have incorporated into our plan the impacts that can reasonably be anticipated at present, but if these factors persist or progress beyond our assumptions, they could affect our results. 2-2) Are there any business risks other than the external environment, or any regions or businesses where achieving the plan is relatively more challenging? →Market conditions in Singapore and Hong Kong, particularly Hong Kong, remain challenging, and we recognize this as a risk that has already materialized. In terms of the difficulty of achieving our plan, we are closely monitoring Eu Yan Sang International Ltd. 3-1) Asia exceeded plan in Q1. Excluding foreign exchange effects, which countries or regions have you revised your outlook for in the current full-year forecast? →Asia exceeded plan in both sales and profit in Q1. We have not made a major change to the overall full-year sales forecast, but we have slightly lowered the sales outlook for Eu Yan Sang International Ltd. while raising our outlook for Vietnam and Indonesia from the initial forecast. In Southeast Asia, “HADALABO” is performing particularly well in Malaysia and Indonesia, while eye drop sales are growing in China. 3-2) To what extent have you reflected the strong Q1 momentum in the revised forecast? →We have not made major revisions to the business outlook for China and other markets, although we have incorporated foreign exchange effects, including those from the Chinese yuan. On the other hand, we have reflected higher operating income resulting from strong sales in Indonesia and Vietnam.

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Q&A of Financial Results Briefing for Q1 (Apr. - Jun.) of the Fiscal Year Ending March 31, 2027 4-1) Is it correct to understand that the upward revision mainly reflects Q1 outperformance and revised foreign exchange assumptions, while the business outlook from Q2 onward is broadly unchanged? Also, how do you view the impact of the situation in the Middle East? →Broadly speaking, at ROHTO Pharmaceutical on a standalone basis in Japan, profit margins have improved due to factors including the effects of the “HADALABO” price increase. Multiple countries and regions in Asia have also contributed. On the other hand, we anticipate that the situation in the Middle East may have an impact in the second half and have factored in a certain degree of risk. The revision to our foreign exchange assumptions is also a major factor behind the upward revision. 4-2) Do you expect the strong Q1 performance to continue from Q2 onward? →Vietnam, Indonesia, and other markets continue to perform well. However, as each region faces its own business risks, we have not simply carried forward the strong Q1 performance into the full-year forecast. 4-3) How have THANN and Magic Cod doo been incorporated into the revised forecast? →For THANN, we previously explained that we planned to begin consolidating its results from the second half. At present, however, our policy is to begin consolidation from next year onward, so it is not included in the revised forecast. For Magic Cod doo, we have incorporated its second-half sales and profit into the Europe segment. However, at this stage, the scale is not large enough to have a significant impact on our consolidated results. 5) By how much did Q1 sales and profit exceed the Company's internal plan? →We do not disclose quarterly plan figures. Asia exceeded our initial plan in both sales and profit. Japan, particularly ROHTO Pharmaceutical on a standalone basis, also exceeded plan, but this includes the effect of some advertising and R&D spending being deferred to Q2 and later. As a result, we expect much of the Q1 profit outperformance in Japan to be absorbed as these expenses are incurred from Q2 onward. 6) How did Eu Yan Sang International Ltd. perform against plan in Q1, and why did you slightly lower the full-year sales growth forecast from the previous forecast? →Eu Yan Sang International Ltd. performed at a very strong level in Q1. The main factor was Chinese New Year demand in Malaysia. There was a timing effect, with sales from promotions conducted ahead of Chinese New Year being recorded in Q1. Because Chinese New Year fell relatively late this year, in February, a larger portion of Chinese New Year-related sales was recorded in Q1. On the other hand, we are seeing some reactionary decline in Q2, and taking this into account, we have slightly lowered the full-year sales growth forecast.

Disclaimer: This document was prepared for the purpose of providing an understanding of the current status of the Company as a reference for investment decisions. The content presented here is a summary of our views based on the Q&A session from the financial results briefing. The contents contained herein are prepared based on economic, social and other conditions generally recognized as prevailing at the time of preparation and on certain assumptions judged to be reasonable by the Company, but may be subject to change without notice due to changes in the business environment or other reasons. This document contains information on pharmaceutical products and other products including products under development. Such information is not intended as promotion, advertising or medical advice. Any investment decisions should be made at the investor's own discretion. The Company assumes no responsibility whatsoever for any problems, losses, or damages resulting from the use of this material.

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