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KOA SHOJI HOLDINGS Co. , Ltd. ( Securities code : 9273 ) Supplementary Material of Financial Results for the Year Ended June 30 , 2026 August 7 , 2026 支 上 医 營 流 藥 品 Supporting Pharmaceuticals from Upstream . KOA 1 KOA SHOJI HOLDINGS CO . , LTD .
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KOA SHOJI HOLDINGS 2 Table of Contents I. Topics II. Medium- to Long-term Business Plan III. FYE6/2026 Financial Results Overview and FYE6/2027 Forecasts IV. Market Environment and Competitive Advantage of the Company’s Strategy (Appendix)
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KOA SHOJI HOLDINGS I. Topics 3 1. Summary 2. Highlights of FYE6/2026 Financial Results 3. Trend of Financial Results 4. Highlights of FYE6/2027 Financial Results Forecast 5. FYE6/2027 Forecasts Overview 6. Completion of Zao Factory 2 7. Return to Shareholders 8. Our Group’s Initiatives for Trust
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KOA SHOJI HOLDINGS CO., LTD.4 I-1. Summary In the API segment, sales and profit increased YoY, thanks to increased transaction volumes for certain products, driven by expanded sales of recently launched products and the selective care system. In the manufacture and sales of pharmaceuticals, sales increased YoY while profit remained flat. This was due to a decline in sales of tablets, the mainstay products of HQ Factory, despite solid performance of the mainstay products of Zao Factory. EBITDA:¥26.3bn Full-year Financial Results for FYE6/2026 In the API segment, we expect YoY increases in both sales and profit, supported by expanded sales of recently launched products and an expected recovery in transaction volumes for products whose sales decreased in the previous fiscal year due to customers’ purchase timing. In the manufacture and sales of pharmaceuticals, sales are expected to increase YoY, while profit is expected to decrease. This is due to an expected decline in sales of our mainstay tablet products, chiefly owing to the entry of competitors into the market and the impact of the NHI drug price revision, as well as expected cost increases, including depreciation, higher personnel expenses resulting from wage increases and higher R&D expenses. To address this, we will increase production of our mainstay pre-filled syringe formulations by bringing forward the start of operations at Zao Factory 2 to March. EBITDA:¥25.7bn Financial Results Forecast for FYE6/2027 Market Environment A series of regulatory revisions are being made to measures promoting the use of generics, including raising the patient copayment under the selective care system to one-half, shortening the application period of the G1 rule from 10 years to five years, and setting the NHI prices of Authorized Generics (AGs) at the same level as those of their original drugs. Downward pressure on prices from annual NHI drug price revisions continues, requiring the industry as a whole to achieve even greater operational efficiency.
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KOA SHOJI HOLDINGS CO., LTD.5 I-2. Highlights of FYE6/2026 Financial Results Net sales and all profit levels hit new record highs. 12.6% ROE YoY -1.1pts PBR 1.02x YoY -0.02pts Dividend payout ratio (Planned) 20.2% YoY +1.7pts ¥24.67 bn Net sales YoY +6.1％ ¥5.47 bn Operating profit YoY +2.3％ ¥3.74 bn Profit attributable to owners of parent YoY +3.0％
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KOA SHOJI HOLDINGS CO., LTD.6 1,910 2,242 2,390 2,727 2,769 3,215 3,312 453 1,200 1,421 1,534 1,700 2,137 2,124 14.5% 19.0% 18.7% 19.3% 19.8% 23.0% 22.2% FYE6/2020 FYE6/2021 FYE6/2022 FYE6/2023 FYE6/2024 FYE6/2025 FYE6/2026 API segment Manufacture and sales of pharmaceuticals OP margin 2,329 3,377 3,807 4,249 4,382 5,355 5,476 10,317 10,795 12,848 14,164 13,734 14,601 15,717 5,717 7,021 7,505 7,889 8,400 8,669 8,962 FYE6/2020 FYE6/2021 FYE6/2022 FYE6/2023 FYE6/2024 FYE6/2025 FYE6/2026 API segment(External sales) Manufacture and sales of pharmaceuticals 16,034 17,816 20,353 22,052 22,134 23,269 24,678 I-3. Trend of Financial Results Operating profit Net sales have continued to increase for eight consecutive fiscal years; operating profit and other line-item profits have continued to hit new record highs for seven consecutive fiscal years. (million ¥) Net sales
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KOA SHOJI HOLDINGS CO., LTD.7 I-4. Highlights of FYE6/2027 Financial Results Forecast With sales expected to increase in both segments, consolidated net sales are forecast to rise 8.2% YoY. Despite solid performance in the API segment, consolidated operating profit is forecast to decline 3.8% YoY due to lower profit in the manufacture and sales of pharmaceuticals. Operations at Zao Factory 2 are scheduled to begin in March 2027. Dividend payout ratio (Forecast) 22.3% YoY +2.1pts ¥26.70 bn Net sales YoY +8.2％ ¥5.27 bn Operating profit YoY -3.8％ ¥3.59 bn Profit attributable to owners of parent YoY -4.2％ Cash dividends (Forecast) ¥19 YoY +¥1 *EBITDA : ¥6.00bn (YoY-1.4%)
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KOA SHOJI HOLDINGS CO., LTD.8 I-5. FYE6/2027 Forecasts Overview In FYE6/2027, the API segment is expected to record higher sales and profit, while the manufacture and sales of pharmaceuticals is expected to record higher sales but lower profit due to declining sales of mainstay tablet products and increasing cost. We aim to begin operations at Zao Factory 2 in March 2027. (million ¥) FYE6/2026 FYE6/2027 YoY FYE6/2028 Forecast Change (%) Target Net sales 24,678 26,700 2,022 8.2 31,900 API segment (external sale) 15,717 17,380 1,663 10.6 19,730 Manufacture and sales of pharmaceuticals 8,961 9,320 359 4.0 12,170 Operating profit 5,476 5,270 -206 -3.8 6,530 API segment 3,312 3,350 38 1.1 3,600 Manufacture and sales of pharmaceuticals 2,123 1,950 -173 -8.1 2,900 Adjustments 39 -30 -69 － 30
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KOA SHOJI HOLDINGS CO., LTD.9 I-6. Completion of Zao Factory 2 The construction of Zao Factory 2 was completed on June 30, 2026, followed by a completion ceremony on July 3. We aim to begin operations in March 2027, earlier than initially planned. From top left • Factory exterior • Completion ceremony (Toshihiro Hirono, Executive Vice President and Representative Director in charge of the Manufacture and Sales of Pharmaceuticals Segment; President, Representative Director of KOA ISEI CO., LTD.) From bottom left • Filling and Assembly Room (integrated filling line) • Compounding Room (solution preparation equipment) • Washing Room
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KOA SHOJI HOLDINGS CO., LTD.10 436 475 547 673 758 800 FYE6/2022 FYE6/2023 FYE6/2024 FYE6/2025 FYE6/2026 FYE6/2027 (Forecast) I-7. Return to Shareholders : “annual dividend growth in principle” Forecast a dividend increase of 1 yen to 19 yen per share for FYE6/2027. Determine the dividend amount based on a comprehensive assessment, with a payout ratio of 20% or higher as a benchmark. Record date: June 30 Total amount of dividend (million ¥) 11 12 13 16 18 19 18.5 17.7 17.5 18.5 20.2 22.3 FYE6/2022 FYE6/2023 FYE6/2024 FYE6/2025 FYE6/2026 FYE6/2027 (Forecast) Dividend per share Dividend payout ratio
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KOA SHOJI HOLDINGS CO., LTD.11 I-8. Our Group’s Initiatives for Trust Our system for checking legal compliance and quality control ・Self-inspections ・Annual reviews ・Consistency inspections ・ Intergroup unannounced audits ・Compliance audits under the Pharmaceuticals and Medical Devices Act (PMD Act) by the Internal Audit Office By regularly implementing these initiatives, we continue to ensure the quality, safety, and stable supply of generic drugs. API segment Pharmaceuticals segment Authorities 4 times/year 2 times/year Clients 34 times/year 7 times/year *FYE6/2026 results / Total number of on-site, written, and remote inspections ・Inspections by authorities ・Audits by clients Internal External Management education
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KOA SHOJI HOLDINGS II. Medium- to Long-term Business Plan 12 1. 10-Year Long-Term Business Plan 2. Vision of Group’s Growth in 10-Year Long-Term Business Plan 3. 10-Year Long-Term Business Plan Financial Targets 4. Progress of Medium-term Plan 5. Growth Strategy in API Segment 6. Growth Strategy in Pharmaceuticals Segment 7. Medium- to Long-term Business Strategy—Manufacture and sales of pharmaceuticals 8. Characteristics of Zao Factories 9. Group Synergies 10. Cash Allocation 11. Growth Investment and Shareholder Return
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KOA SHOJI HOLDINGS CO., LTD.13 II-1. 10-Year Long-Term Business Plan Environmental Changes Surrounding Medical Field and Sustainable Growth of the Group In the medical field, the focus on new drug development is shifting from conventional small molecules to polymers, such as biopharmaceuticals.* Additionally, the modalities* (treatment methods) are becoming increasingly diversified and complex, including medium-sized molecules, regenerative medicine, and gene therapy, and medical care is becoming more personalized. Achieve both economic and social values in the modality revolution as an opportunity to increase corporate value * ＊Modalities: types of drug discovery and therapeutic methods such as small molecule compounds, peptide (medium-sized molecule) drugs, antibody drugs, nucleic acid drugs, biopharmaceuticals, etc. ＊Biopharmaceuticals: pharmaceuticals produced by applying biotechnologies such as gene recombination and cell culture technologies In 2020, we developed a long-term business plan and announced our sustainable growth strategy. Amount of sales - Introduction of pharmaceuticals produced overseas - Improvement of injection quality and production capacity - M&A is also an option - Approaches to sustainability - TSE Prime - API import trading company - Generic manufacturer focusing on injections - Trading company specializing in pharmaceuticals - Top Domestic manufacturer of specialized injectables 2020 2025 2030 Quote: New Modality Global Pharmaceutical Sales Trends Source: Ministry of Health, Labour and Welfare “Pharmaceutical Industry Vision 2021” (Document)
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KOA SHOJI HOLDINGS CO., LTD.14 FYE6/2030FYE6/2021 Operating profit Manufactur e and sales of pharma- ceuticals API segment 10 years Medium-term Plan for FYE6/2026 to FYE6/2028 Strengthen business foundation to achieve the long-term business plan targeting FYE6/2030. II-2. Vision of Group’s Growth in 10-Year Long-Term Business Plan (1) HQ Factory: Renew business license and start restructuring in December 2026 (2) Zao Factory 2: Start of operations * Continue efforts to increase production of pre-filled syringe formulations and improve vial line utilization at Zao Factory 1. ¥4.0 bn ¥4.0 bn Medium-term Plan from FYE6/2026 to FYE6/2028 (2)(1) Stable earnings base Growth driver
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KOA SHOJI HOLDINGS CO., LTD.15 FYE6/2030 (Target) FYE6/2028 (Target)Financial FYE6/2027 (Forecast) FYE6/2026 (Actual) FYE6/2025 (Actual) II-3. 10-Year Long-Term Business Plan Financial Targets Consolidated net sales (excl. intra-group transactions) 23,269 24,678 26,700 31,900 40,000 Consolidated operating profit 5,355 5,476 5,270 6,530 8,000 ROE 13.7％ 12.6％ Aim for further increase (million ¥) 12% or higher We aim to expand our growth driver, the manufacture and sales of pharmaceuticals, to achieve operating profit of 8.0 billion yen by the year ending June 30, 2030.
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KOA SHOJI HOLDINGS CO., LTD.16 II-4. Progress of Medium-term Plan Segment Medium-term Business Strategy Status of Initiatives in FYE6/2026 API Drive credible growth toward achieving the FYE6/2030 target ・Increase the number of newly listed products ・Expand the market share of existing products ・develop business for new drug manufacturers, including long-listed drugs ・Achieved the target for newly listed products, primarily with major generic drug manufacturers. ・Achieved the target for developing new 2nd-source projects. ・The number of new items investigated by the Development Department increased steadily. Strengthen and diversify the supply chain Achieved the targets for meetings with key suppliers and joint visits to customers. Promote new businesses toward becoming a “pharmaceutical specialized trading company” The number of proposals increased from the previous fiscal year. Manufacture and Sales of Pharmaceuticals Promote CDMO strategy ・Full-scale launch of contract business at Zao Factory ・Increase production of pre-filled syringe formulations ・Acquire new contracts for vial liquid formulation and freeze-dried formulation ・Efforts to secure new contracts for syringe formulations progressed steadily. ・Achieved the production target for Maxacalcitol. ・A new CDMO project for a vial liquid formulation progressed steadily, including the manufacture of investigational drugs. Start operations of Zao Factory 2 as early as possible Aiming to bring forward the start of operations at Zao Factory 2 in response to expansion of the syringe product market. Consider new developments by strengthening group synergies Development of candidate products is underway. API selection and market research were conducted for several other products.
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KOA SHOJI HOLDINGS CO., LTD.17 II-5. Growth Strategy in API Segment [Seven business strategies] [Number of items under development or investigation] More than 70 items (as of June 2026) Long-term growth strategy: From an API import trading company to a pharmaceutical specialized trading company (1) Drive credible growth toward achieving the FYE6/2030 target Maximize the number of newly adopted items through an organization-wide approach (newly listed products, MSPs*, original drugs) (2) Strengthen and diversify the supply chain Diversify the supply chain and strengthen the stable supply system Deepen partnerships (3) Promote digital transformation and utilize artificial intelligence technology in business operations Transform business operations by implementing DXP2 and leveraging data and AI (4) Promote new businesses toward becoming a “pharmaceutical specialized trading company” Establish new businesses (exports and formulations) and business models for new modalities (5) Back office covering evolving needs Evolve into an “execution-support back office” that accelerates sales activities Renovate Yokohama Pharmaceutical Analysis Center (6) Enhance group synergies (7) ESG efforts [Operating profit] *Multi Source Project 0 1,000 2,000 3,000 4,000 5,000 FYE6/2026 (Actual) FYE6/2027 (Forecast) FYE6/2028 (Target) FYE6/2030 (Target)
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KOA SHOJI HOLDINGS CO., LTD.18 0 1,000 2,000 3,000 4,000 5,000 FYE6/2026 (Actual) FYE6/2027 (Forecast) FYE6/2028 (Target) FYE6/2030 (Target) II-6. Medium- to Long-term Business Strategy—Manufacture and Sales of Pharmaceuticals [Four business strategies] [CDMO projects] Approx. 10 projects, mainly involving highly pharmacologically active injections, including new modalities (FYE6/2026 actual) Long-term growth strategy: From a generics manufacturer focusing on injections to a leading domestic manufacturer of distinctive injections (1) Toward achieving the FYE6/2030 target Bring forward the start of operations at Zao Factory 2 from July to March 2027 Implement a stable supply system in view of corporate indicators (2) Promote CDMO strategy Secure new contracts for syringe formulations, vial liquid formulations, and freeze-dried formulations Explore new product development by strengthening group synergies (3) Comply with laws and regulations Strengthen the quality management system in response to the amended PMD Act and ensure stable supply of safe and reliable pharmaceuticals (4) Well-being management Strengthen organizational accountability as a pharmaceutical marketing authorization holder through human capital investment and training [Operating profit]
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KOA SHOJI HOLDINGS CO., LTD.19 Manufacture II-7. Growth Strategy in Manufacture and Sales of Pharmaceuticals Segment Manufactures solid dosage forms, including Lanthanum Carbonate OD tablets. Promotes contract manufacture of injectable drugs. Development Zao Warehouse Operating from March 2024 to strengthen stable supply system Supports investigational new drug production and commercial production by utilizing the characteristics of high-mix low-volume production lines for high-pharmacological value- added formulations . Syringe formulation: Approx. 4.8 million units (1ml)/ year* Vial formulation (liquid): Approx. 0.9 million units (1ml)/ year Freeze-dried formulation: Approx. 0.6 million units (1ml)/ year *Production capacity in full-time operation with three 8-hour shifts. ・ Pre-filled syringes ・ Vials ・Tablets ・ Injections・ Pre-filled syringes Low - mix high - volume productionHigh-mix low-volume production We will strengthen our contract business based on a consistent CDMO* system from development to manufacture, specializing in syringes and vials for injectable drugs. With the construction of mass-production type Zao Factory 2, we will utilize the characteristics of Zao Factory 1, which is one of the few plants in Japan that manufactures a wide variety of high-pharmacological formulations in small quantities. Zao Factory 1 Zao Factory 2 (Operations to be started in March 2027) HQ Factory *CDMO: Contract Development and Manufacturing Organization Promotes business expansion as a mass- production plant for highly pharmacologically active sterile formulations, with annual production capacity of 12 million units*1. Aims for annual production capacity of 16 million units*2 in the future. *1 Production capacity with two 8-hour shifts for filling and one 8-hour shift for inspection and packaging. *2 Production capacity with three 8-hour shifts for filling and one 8-hour shift for inspection and packaging.
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KOA SHOJI HOLDINGS CO., LTD.20 II-8. Characteristics of Zao Factories Zao Factory 1 Characteristics High-mix low-volume production (Syringe and vial formulations) Building area 1,917㎡ Total floor area 3,329㎡ Filling equipment Syringe line and vial line for liquid and freeze- dried formulations Production capacity Syringe formulation: Approx. 4.8 million units (1ml)/ yr Vial formulation (liquid): Approx. 0.9 million units (1ml)/yr Freeze-dried formulation: Approx. 0.6 million units (1ml)/yr Products manufactured Highly pharmacologically active injectable drugs / Pre-filled syringe formulations / Vial formulations Characteristics Low-mix high-volume production (Syringe formulations) Building area 2,793.10㎡ Total floor area 3,419.27㎡ Filling equipment High-volume syringe production line Production capacity Syringe formulations: 12 million units/yr Products manufactured Highly pharmacologically active injectable drugs / Pre-filled syringe formulations Zao Factory 2 High-mix low- volume production Single-use manufacturing Low-mix high-volume production Dedicated to pre-filled syringe formulations
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KOA SHOJI HOLDINGS CO., LTD.21 II-9. Group Synergies API/formulation manufacturers overseas Pharmaceutical companies in Japan KOA ISEI Strengthen Group synergies by expanding the business areas of both segments. KOA SHOJI KOA BIOTECH BAY Procurement of APIs/formulations Use of pharmaceutical analysis center Development/ contract manufacturing （CDMO） Contract packaging OTC License-in activities New contract/development Stable supply system
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KOA SHOJI HOLDINGS CO., LTD.22 Cash outflowCash inflow II-10. Cash Allocation Debt financing ■ Return to shareholders: Approx. ¥2.5 bn ・Maintain a basic policy of “annual dividend increase in principle” and continue to pay stable dividends over the long term ■Growth investment: Approx. ¥12.0 bn API segment ・Renovate Yokohama Pharmaceutical Analysis Center ・Do repair work of existing sites in conjunction with renovation, etc. Manufacture and sales of pharmaceuticals ・Construct Zao Factory 2 ・Renovate HQ Factory ・Introduce packaging machinery, etc. ■ R&D expenses: Approx. ¥0.6 bn ■Repayments of borrowings: Approx. ¥1.0 bn ■Other Consider further facility investments, M&A, and enhancement of shareholder returns Operating cash flow Return to shareholders Growth investment R&D expenses Repayments of borrowings FYE6/2026-FYE6/2028 (Approx. ¥17.0 bn) Policy Achieve sustainable corporate growth through a cycle of investment, recovery, and return. Allocate cash generated during the three-year Medium-term Plan period to growth investment and return to shareholders.
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KOA SHOJI HOLDINGS CO., LTD.23 II-11. Growth Investment and Shareholder Return Achieve sustainable corporate growth through a cycle of investment, recovery, and return and realize cost-conscious management ＊Proactive IR activities, shareholder return policy, capital policy, etc. Maintain ROE level Consider liquidity improvement measures＊ Sustain corporate value improvement Facility investments Return to shareholders Recovery/ returns Facility investments Promote facility investments for medium- to long-term growth strategy to become ■ a pharmaceutical specialized trading company ■ a top manufacturer of distinctive generic injectables Return to shareholders Annual dividend growth in principle Maintain or increase dividends with profit in mind Recovery/returns Create a business plan for medium- to long- term growth and announce numerical targets
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KOA SHOJI HOLDINGS III. FYE6/2026 Financial Results Overview and FYE6/2027 Forecasts 24 1. Highlights of Financial Results 2. Highlights of Financial Results by Segment 3. API Segment Net Sales Analysis 4. Manufacture and Sales of Pharmaceuticals Net Sales Analysis 5. Comparison with FYE6/2026 Financial Results Forecast 6. Ordinary Profit Change Factors 7. Condensed Consolidated Balance Sheet 8. Condensed Consolidated Statement of Cash Flows 9. Full-Year Financial Results Forecast 10. Full-Year Financial Results Forecast by Segment
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KOA SHOJI HOLDINGS CO., LTD.25 FYE6/2025 FYE6/2026 YoY Actual Actual Change (%) Net sales 23,269 24,678 1,409 6.1 Gross profit 7,697 8,004 306 4.0 Operating profit 5,355 5,476 120 2.3 Ordinary profit 5,375 5,521 146 2.7 Profit attributable to owners of parent 3,637 3,748 110 3.0 Dividend (yen/share) 16 18 2 12.5 Depreciation 691 614 -77 -11.1 R&D expenses 154 152 -2 -0.7 Facility investments 3,077 3,784 708 23.0 III-1. Highlights of Financial Results YoY results comparison: Both consolidated net sales and operating profit hit new record highs. Depreciation decreased, while R&D expenses remained flat. Facility investments increased due to the construction of Zao Factory 2. (million ¥) DepreciationR&D expensesFacility investments FYE6/2025 FYE6/2026 691 614 154 152 3,077 3,784
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KOA SHOJI HOLDINGS CO., LTD.26 FYE6/2025 FYE6/2026 YoY Actual Actual Change (%) Net sales 23,269 24,678 1,409 6.1 API segment 15,930 16,958 1,027 6.5 API segment (external sale) 14,600 15,717 1,116 7.7 Internal sale 1,330 1,241 -88 -6.7 Manufacture and sales of pharmaceuticals 8,668 8,961 293 3.4 Adjustments -1,330 -1,241 88 － Operating profit 5,355 5,476 120 2.3 API segment 3,215 3,312 97 3.0 Manufacture and sales of pharmaceuticals 2,136 2,123 -12 -0.6 Adjustments 3 39 36 1,200.0 （OP margin） 23.0% 22.2% -0.8% － Ordinary profit 5,375 5,521 146 2.7 Profit 3,637 3,748 110 3.0 III-2. Highlights of Financial Results by Segment (1) Sales increased in both segments, while profit grew in the API segment. (million ¥)
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KOA SHOJI HOLDINGS CO., LTD.27 15,930 16,958 8,668 8,961 -1,330 -1,241 Sales Increase factors 3,215 3,312 2,136 2,123 3 39 23.0% 22.2% Profit Increase factors III-2. Highlights of Financial Results by Segment (2) FYE6/2025 FYE6/2026 FYE6/2025 FYE6/2026 Manufacture and sales of pharmaceuticals • Sales of pre-filled syringe formulations and antitumor-agent vial formulations manufactured under contract remained solid. • Sales of tablets, our mainstay products, decreased primarily due to the entry of competitors into the market. As a result, sales increased, but profit remained almost unchanged. API segment • Sales and profit increased, thanks to expanded sales of recently launched products and higher transaction volumes driven by an increase in the volume share of generics due to the selective care system and other factors. • The operating margin declined, partly due to higher personnel expenses. • Prevailing exchange rates (FYE6/25/FYE6/26): USD 150/152; EUR 162/176 API segment Manufacture and sales of pharmaceuticals Adjustments OP margin
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KOA SHOJI HOLDINGS CO., LTD.28 Cardiovascular drugs Antitumor agents Central nervous system agents Other metabolic drugs Antibiotic preparations Digestive drugs Sensory organ drugs Allergy drugs Vitamin preparations Dermal agents Genitourinary and anal drugs Other FYE6/2025 FYE6/2026 16.2% 17.0% 17.9% 20.2% 19.5% FYE6/2022 FYE6/2023 FYE6/2024 FYE6/2025 FYE6/2026 In and before 2014 2015-2019 2020-2024 2025 and Beyond OP margin III-3. API Segment Net Sales Analysis Sales increased, driven by strong performance of products launched since 2025. Sales by launch year YoY sales comparison by therapeutic category Allergy drugs, Central nervous system agents, Other metabolic drugs: Sales grew partly due to expanded sales of recently launched products and growth in volume share. Antitumor agents, Cardiovascular drugs: Sales decreased partly due to customers’ purchase timing and the adoption of competing APIs. Antitumor agents, Cardiovascular drugs: Sales increased partly due to growth in volume share resulting from the selective care system and the completion of inventory adjustments by key customers. Antibiotic preparations: Sales decreased partly due to customers’ purchase timing and inventory adjustments by key customers.
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KOA SHOJI HOLDINGS CO., LTD.29 20.2% 24.6% 23.7% FYE6/2024 FYE6/2025 FYE6/2026 Sales Increase factors by factory Other HQ Factory Zao Factory OP margin III-4. Manufacture and Sales of Pharmaceuticals Net Sales Analysis Zao Factory Sales of pre-filled syringe formulations and antitumor-agent vial formulations manufactured under contract steadily increased. HQ Factory Sales of tablets, our mainstay products, declined due to the entry of competitors into the market and other factors. Operating margin The profit margin also declined due to lower sales of mainstay tablets and other mainstay products of HQ Factory. While sales of mainstay products produced by Zao Factory remained strong, sales of those produced by HQ Factory declined due to the entry of competitors into the market and other factors. As a result, the segment saw higher sales, but profit remained almost unchanged.
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KOA SHOJI HOLDINGS CO., LTD.30 III-5. Comparison with FYE6/2026 Financial Results Forecast Net sales fell short of forecast, while operating profit and other line-item profits met forecasts. (million ¥) API segment • Although net sales fell short of forecast, partly due to customers’ purchase timing and inventory adjustments by key customers, operating profit met forecast thanks to expanded sales of recently launched products and other factors. • Prevailing exchange rates (budget/FYE6/26 actual): USD 153/152; EUR 163/176 Manufacture and sales of pharmaceuticals • Sales of pre-filled syringe formulations and antitumor-agent vial formulations manufactured under contract remained solid. • Both net sales and operating profit fell short of forecasts due to a decline in sales of tablets, our mainstay products, resulting from the entry of competitors into the market and other factors. FYE6/2026 FYE6/2026 YoY Actual Forecast Change (%) Net sales 24,678 25,700 -1,022 -4.0 API segment 16,958 17,820 -862 -4.8 API segment (external sale) 15,717 16,620 -903 -5.4 Internal sale 1,241 1,200 41 3.4 Manufacture and sales of pharmaceuticals 8,961 9,080 -119 -1.3 Adjustments -1,241 -1,200 -41 － Operating profit 5,476 5,430 46 0.8 API segment 3,312 3,300 12 0.4 Manufacture and sales of pharmaceuticals 2,123 2,150 -27 -1.3 Adjustments 39 -20 59 － （OP margin） 22.2% 21.1% 1.1% － Ordinary profit 5,521 5,430 91 1.7 Profit 3,748 3,640 108 3.0
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KOA SHOJI HOLDINGS CO., LTD.31 5,375 1,409 -1,102 -185 25 5,521 FYE6/2025 Net sales Cost of sales SG&A Non operating profit/loss FYE6/2026 III-6. Ordinary Profit Increase Factors Costs also increased as a result of the growth in sales Profit increased due to subsidies, interest income on foreign currency-denominated bonds, and other factors SG&A expenses included higher personnel expenses due to wage increases and increased headcount, as well as temporary shareholder- related expenses Sales increased in both segments (million ¥) Increase Decrease
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KOA SHOJI HOLDINGS CO., LTD.32 III-7. Condensed Consolidated Balance Sheet (million ¥) • The construction of Zao Factory 2 proceeded as planned, resulting in an increase in property, plant and equipment. • Investments and other assets increased due to the purchase of foreign currency-denominated amortizing bonds. FYE6/2025 FYE6/2026 FYE6/2025 FYE6/2026 ％ ％ ％ ％ Current assets 26,527 73.5 25,329 64.1Current liabilities 6,363 17.6 6,951 17.6 Cash and deposits 14,919 41.3 17,210 43.5 Trade payable 2,016 5.6 1,463 3.7 Trade receivable 8,121 22.5 4,666 11.8 Short-term borrowings 1,209 3.3 2,349 5.9 Inventories 3,264 9.0 2,840 7.2 Other 3,138 8.7 3,139 7.9 Other 221 0.6 611 1.5Non-current liabilities 1,630 4.5 1,400 3.5 Non-current assets 9,587 26.5 14,202 35.9 Long-term borrowings 1,241 3.4 971 2.5 Property, plant and equipment 9,195 25.5 12,365 31.3 Other 388 1.1 428 1.1 Intangible assets 8 0.0 7 0.0Total liabilities 7,994 22.1 8,352 21.1 Investments and other assets 382 1.1 1,829 4.6Total net assets 28,120 77.9 31,180 78.9 Total assets 36,114 100.0 39,532 100.0Total liabilities and net assets 36,114 100.0 39,532 100.0
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KOA SHOJI HOLDINGS CO., LTD.33 7,592 -8,154 189 14,739 22 14,388 Beginning balance (Cash … Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Effect of exchange rate change on cash and cash equivalents ending balance (Cash and cash … III-8. Condensed Consolidated Statements of Cash Flows ■Operating cash flows +7,592 Profit before income taxes +5,525 Change in trade receivables +3,455 Depreciation +614 Change in trade payables -552 Income taxes paid -1,880 ■Financing cash flows +189 Net increase in short-term borrowings +1,220 Dividends paid -673 ■Investing cash flows -8,154 Purchase of investment securities -1,856 Purchase ofnon-current assets -3,676 Increase Decrease (million ¥)
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KOA SHOJI HOLDINGS CO., LTD.34 FYE6/2026 FYE6/2027 FYE6/2028 Depreciation R&D expenses Facility investments III-9. Full-Year Financial Results Forecast (million ¥) 152 259 222 3,784 1,649 2,066 FYE6/2026 FYE6/2027 YoY FYE6/2028 Forecast Change (%) Target 【Consolidated net sales】 24,678 26,700 2,022 8.2 31,900 API segment 16,958 18,310 1,352 8.0 20,930 Manufacture and sales of pharmaceuticals 8,961 9,320 359 4.0 12,170 Adjustments -1,241 -930 311 － -1,200 【Consolidated operating profit】 5,476 5,270 -206 -3.8 6,530 API segment 3,312 3,350 38 1.1 3,600 Manufacture and sales of pharmaceuticals 2,123 1,950 -173 -8.1 2,900 Adjustments 39 -30 -69 － 30 【Consolidated Ordinary profit】 5,521 5,260 -261 -4.7 6,430 Profit attributable to owners of parent 3,748 3,590 -158 -4.2 4,380 Depreciation 614 734 120 19.5 1,024 R&D expenses 152 259 107 70.4 222 Facility investments 3,784 1,649 -2,135 -56.4 2,066 614 734 1,024
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KOA SHOJI HOLDINGS CO., LTD.35 16.2% 17.0% 17.9% 20.2% 19.5% 18.3% FYE6/2022 FYE6/2023 FYE6/2024 FYE6/2025 FYE6/2026 FYE6/2027 (Forecast) In and before 2014 2015-2019 2020-2024 2025 and Beyond OP margin III-10. Full-Year Financial Results Forecast by API Segment SG&A expenses are expected to increase due to higher taxes and dues resulting from tax reforms, higher personnel expenses, and other factors. Consequently, the operating margin is expected to decline by 1 percentage point. Budget rates: USD 158; EUR 188 The API segment is expected to record higher sales and profit, primarily driven by contributions from products launched since 2025. Recently launched products Sales of products launched in 2025 and beyond are expected to remain solid. In addition, sales of products that declined due to customers’ purchase timing are expected to recover. Sales by launch year
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KOA SHOJI HOLDINGS CO., LTD.36 20.2% 24.6% 23.7% 21.0% FYE6/2024 FYE6/2025 FYE6/2026 FYE6/2027 (Forecast) Sales Increase factors by factory Other HQ Factory Zao Factory OP margin III-10. Full-Year Financial Results Forecast by Manufacture and Sales of Pharmaceuticals Zao Factory Sales are expected to increase with the start of operations at Zao Factory 2 in March 2027 and increased production of mainstay pre-filled syringe formulations. HQ Factory Sales of mainstay tablet products are expected to decline due to the entry of competitors into the market and NHI drug price reductions. Sales are forecast to increase, while profit is forecast to decrease due to increasing cost and lower sales of mainstay tablet products resulting from the entry of competitors and the impact of NHI drug price revisions, among other factors. To address this, we will bring forward the start of operations at Zao Factory 2 to March and increase production of mainstay pre-filled syringe formulations. Operating margin The operating margin is expected to decline due to lower sales of tablets, the mainstay products of HQ Factory, as well as higher Depreciation, higher personnel expenses resulting from wage increases, higher R&D expenses, and other factors.
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KOA SHOJI HOLDINGS IV. Market Environment and Competitive Advantage of the Company’s Strategy 37 1. SWOT Analysis 2. Trends of Generic Pharmaceutical Industry 3. Treatment of Authorized Generics (AGs) upon Initial Listing 4. Market Size: Trends in Therapeutic Drugs and Dialysis Patient Deaths by Cause 5. Prevention of Infectious Diseases and Pre-filled Syringe
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KOA SHOJI HOLDINGS CO., LTD.38 IV-1. SWOT Analysis Strengths API: • Solid track record of transactions with 90 or more overseas suppliers in ten countries around the world, as well as with 100 or more pharmaceutical manufacturers in Japan • Track record of API adoption for newly listed products • Quality assurance underpinned by Pharmaceutical Analysis Center Pharmaceuticals: • Long years of experience and technological expertise in manufacturing injectable drugs • Track record in manufacturing pre-filled syringe formulations and antitumor agents • Integrated contracting structure covering development to manufacturing • Zao Factory to meet customer needs for high pharmacologically active injectable drugs Weaknesses API: • Transactions of other than generics • Sales capacity overseas • Maintenance/renovation of Yokohama Pharmaceutical Analysis Center Pharmaceuticals: • Operation rate of vial lines at Zao Factory • In-house salesforce • Business license renewal in December 2026 and reconstruction of HQ Factory Opportunities • Higher patient copayments for long-listed drugs under the selective care system • NHI prices of AGs set at the same level as those of original drugs upon initial listing • Promotion of collaboration and strengthening of manufacturing capacity to ensure stable supply • Expectations for value-added generics • Modality revolution • Multi-sourcing by pharmaceutical manufacturers (2nd/3rd selections) Threats • Issues associated with quality and supply of generics and implementation of stricter regulations • Annual NHI drug price revisions and company evaluation system • Harsher competition driven by the growing trend toward multi- sourcing • Impact of volatile international situation on exchange rates and logistics and other costs • Growing shift toward domestic sourcing of certain APIs Negative FactorsPositive Factors Internal EnvironmentExternal Environment
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KOA SHOJI HOLDINGS CO., LTD.39 IV-2. Trends of Generic Pharmaceutical Industry (1) Excerpts from New Targets for Generic Drugs in 176th Meeting of the Medical Healthcare Subcommittee of the Social Security Council, and the timetable of 172nd Meeting of the Medical Healthcare Subcommittee of the Social Security Council, Ministry of Health, Labour and Welfare A new goal in place to increase the value-based generics from 56.7% in fiscal 2023 to 65% or more by the end of fiscal 2029 Concerning the selective care system, the government will raise the patient copayment for long-listed drugs from one fourth to one-half of the price difference between generics and long-listed drugs starting in June 2026. The Generics Market has expanded to make drug prices more reasonable Volume- and Amount-based Shares in Drug Price Survey Volume-based share Amount-based share Attributable primarily to increasing replacement by biosimilars and launch of larger (in terms of total amount) generic drugs 2017 2018 2019 2020 2021 2022 2023 Source: Ministry of Health, Labour and Welfare, About selection recuperation of a Departs First medical product with a late starting medical product (long listing items). Official survey Official survey Official survey Official survey Mid-year revision Mid-year revision Consumption tax revision Long-listed drugs Long-listed drugs Health Insurance Benefits Health Insurance Benefits Health Insurance Benefits Patient copayment Patient copay ment Generics Patient copaym ent Total patient copayment Extra charge Price difference between long- listed drugs and generic drugs Equivalent to half of the price difference *In case of medical necessity *At the patient's request
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KOA SHOJI HOLDINGS CO., LTD.40 IV-2. Trends of Generic Pharmaceutical Industry (2) Overview of measures to optimize prices for long-listed drugs To make drug prices more reasonable Source: Ministry of Health, Labour and Welfare, FY2026 Drug Price Revision (7) 5 years 6 years For long-listed drugs five years after generic launch, G1 applies regardless of the generic substitution rate. For long-listed drugs subject to G1, a withdrawal decision must be made by the end of June five years after generic launch. Market withdrawal must be timed to allow generic production to increase by year six. • Phased price reductions for long-listed drugs (G1) begin five years after generic launch. • If the generic substitution rate reaches 80% or higher, G1 is applied ahead of schedule at a subsequent NHI drug price revision after reconfirming that the rate remains at least 80%. After G1 applies, the NHI price is the lower of: • the price after the G1 reduction; and • the price after the supplementary 2.0% reduction. Patent/re-examination period Generic launch Generic ramp-up preparation period Revision based on market prices Phased reduction to the weighted average generic price Supplementary G1 reduction Reduction rate: -2.0% Revision based on market prices Generic substitution period Period for reducing long-listed drug prices to generic prices Multiples of the weighted average generic price 2.5× 2× 1.5× 1×
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KOA SHOJI HOLDINGS CO., LTD.41 IV-3. Treatment of Authorized Generics (AGs) upon Initial Listing (1) To establish and maintain an appropriate competitive environment for follow- on biologics (so-called biosimilars) and generic drugs, the initial NHI prices of AGs and bio-AGs listed in or after October 2026 will be calculated at the same level as those of their original drugs. Source: Ministry of Health, Labour and Welfare, FY2026 Drug Pricing System Reform Original drugs New generic drugs AGs and bio-AGs ×0.5* * 0.4× for oral drugs with more than seven products (excluding biosimilars)
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KOA SHOJI HOLDINGS CO., LTD.42 IV-3. Treatment of Authorized Generics (AGs) upon Initial Listing (2) Once listed, AGs tend to capture a larger market share than generics, regardless of their listing timing. Concerns have been raised that original drug companies remain dependent on long-listed drugs in a different form, such as by receiving licensing fees from AG marketing authorization holders. This led to the current revision. Source: Ministry of Health, Labour and Welfare, FY2026 Drug Pricing System Reform • When an AG is listed, it tends to gain a larger share than generics, regardless of its listing timing. Figure: Volume Share When AG Is Listed Before Generics (Antihypertensive Drugs) Figure: Volume Share When AG and Generics Are Listed Simultaneously (Antihypertensive Drugs) Figure: Volume Share When AG Is Listed After Generics (Antidiabetic Drugs) 2 mg AG 4 mg AG 8 mg AG 2 mg generic with the largest share 4 mg generic with the largest share 8 mg generic with the largest share 20 mg AG 40 mg AG 80 mg AG 20 mg generic with the largest share 40 mg generic with the largest share 80 mg generic with the largest share 160 mg AG 160 mg generic with the largest share 0.2 mg AG 0.3 mg AG 0.2 mg (OD) AG 0.2 mg generic with the largest share 0.3 mg generic with the largest share 0.2 mg (OD) generic with the largest share 0.3 mg (OD) AG 0.3 mg (OD) generic with the largest share 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 2015 2017 2019 2021 2015 2017 2019 2021 2015 2017 2019 2021 40.0% 30.0% 20.0% 10.0% 0.0% 40.0% 20.0% 0.0% Source: Survey by the Policy Planning Division for Pharmaceutical Industry Promotion and Medical Information Management
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KOA SHOJI HOLDINGS CO., LTD.43 IV-4. Market Size: Trends in Therapeutic Drugs and Dialysis Patient Deaths by Cause The facility survey shows that the total number of patients undergoing chronic dialysis therapy was 343,508 as of the end of 2023. The leading causes of death among dialysis patients, in descending order, are infectious diseases, heart failure, malignant tumors, cachexia/uremia/senility, and cerebrovascular disorders. Prevention of infectious diseases in dialysis facilities is an important issue. * Excerpts from The Japanese Society for Dialysis Therapy (JSDT), 2023 Annual Dialysis Data Report, JSDT Renal Data Registry Market developments in the dialysis field, which is the target market for the main products in the manufacture and sales of pharmaceuticals 2023 Heart failure: 0.4% Infectious disease: 22.7% Malignancy: 7.6% CVD: 5.7% MI: 3.2% Fig. 12 Trends in major causes of death among prevalent dialysis patients, 1983 to 2023 (Tabulated based on patient survey) year CVD* MI* Heart failure Infectious disease Malignancy CVD: cerebrovascular disease MI: myocardial infarction *Based on the Company’s research. Data cover major drugs for secondary hyperparathyroidism (injections). 0 5 10 15 20 25 30 35 40 Y2021 sales volume Y2022 sales volume Y2023 sales volume Y2024 sales volume Y2025 sales volume Sales Volume Trends for Drugs for Secondary Hyperparathyroidism (Unit: million units)*
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KOA SHOJI HOLDINGS CO., LTD.44 0% 50% 100% 2021 2022 2023 2024 2025 Changes in sales volume-based share of Maxacalcitol (in 2.5μ unit) ampule syringe Ⅲ-4. Prevention of Infectious Diseases and Pre-filled Syringe Guidelines for Standard Hemodialysis Procedure and Prevention of Infection in Maintenance Hemodialysis Facilities (6th edition) is issued by the Japanese Association for Dialysis Physicians as a manual for preventing nosocomial infections in dialysis facilities. As an infection control measure, the guideline recommends to select pre-filled syringe formulations that are commercially available whenever possible (Level 1 A). The pre-filled syringes are increasingly in demand for their effectiveness in preventing infection. Although its market share is gradually increasing, we have determined that production capacity must be strengthened to expand it further and have decided to construct Zao Factory 2. Using pre-filled syringe formulations is recommended as a preventive measure against infection. It is recommended to select pre- filled syringe formulations that are commercially available whenever possible (Level 1 A). * Excerpt from Association of Dialysis Physicians, Guidelines for Standard Hemodialysis Procedure and Prevention of Infection in Maintenance Hemodialysis Facilities (6th edition) (Unit: %) Year
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KOA SHOJI HOLDINGS [Appendix] ・ Stock Performance ・ Corporate Profile ・ Vision, Corporate Policy, Corporate Slogan, etc. ・ History ・ Metrics ・ Return to Shareholders: Shareholder Benefits ・ About Pharmaceuticals ・ Illustrative Image of KOA’s Position ・ Value of Generics, and APIs ・ Business Model ・KOA ISEI Marks Its 70th Anniversary: Logomark ・ Sustainability Activities
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KOA SHOJI HOLDINGS CO., LTD.46 Stock Performance (Price/Trading Volume of KOA’s Stock) Share price(¥) Trading volume (million ¥) 0 50 100 150 200 250 300 350 400 450 400 500 600 700 800 900 1000 2025/7/1 2025/7/11 2025/7/21 2025/7/31 2025/8/10 2025/8/20 2025/8/30 2025/9/9 2025/9/19 2025/9/29 2025/10/9 2025/10/19 2025/10/29 2025/11/8 2025/11/18 2025/11/28 2025/12/8 2025/12/18 2025/12/28 2026/1/7 2026/1/17 2026/1/27 2026/2/6 2026/2/16 2026/2/26 2026/3/8 2026/3/18 2026/3/28 2026/4/7 2026/4/17 2026/4/27 2026/5/7 2026/5/17 2026/5/27 2026/6/6 2026/6/16 2026/6/26 2026/7/6 2026/7/16 2026/7/26 Trading volume of KOA’s stock Closing price of KOA’s stock
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KOA SHOJI HOLDINGS CO., LTD.47 Company Profile Manufacture and Sales of Pharmaceuticals API Sales split for FYE6/2026 63.7％ 36.3％ *1 As of June 30, 2026 Pharmaceuticals segment API Segment Company name Establishment Representative Listing exchange Number of employees *1 Main business Head office Haji Co. 42.33% Shuto Scholarship Foundation 10.92% Toshiyuki Shuto 5.01% The Master Trust Bank of Japan, Ltd. (Trust Account) 3.22% Governance *1 Holding company [Group companies: Sales of APIs, manufacture and sales of pharmaceuticals] 13-15, Hiyoshi 7-chome, Kohoku-ku, Yokohama-shi High-ranking shareholders *1 Directors: 10 [6 Internal and 4 Outside] Audit and Supervisory Committee Members: 4 [4 Outside] KOA SHOJI HOLDINGS Co., Ltd. January 2015 President and Representative Director Toshiyuki Shuto Prime Market, Tokyo Stock Exchange 318 [Ratio of female employees: 45.9%]
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KOA SHOJI HOLDINGS CO., LTD.48 Vision, Corporate Policy, Corporate Slogan, etc. Corporate Culture “Well-being” “Engagement” Founder’s Principles “Human Capital Management”
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KOA SHOJI HOLDINGS CO., LTD.49 History The founder (current CEO) established KOA SHOJI CO., LTD., leveraging his connections and experience, as he was engaged in the business of active pharmaceutical ingredients for generics at an Italian trading company, and thus, saw significant growth potential and untapped opportunities in the Japanese generics market. In expectation of growth of the highly pharmacologically active generic injectable drug market, KOA SHOJI entered into a capital alliance with ISEI CO., INC. (current KOA ISEI CO., LTD.), a company with 60 years of experience in injectable drugs and 40 years of experience in freeze-drying technology. KOA SHOJI HOLDINGS CO., LTD. was incorporated. KOA SHOJI HOLDINGS CO., LTD. was listed on the Prime Market of TSE. KOA SHOJI HOLDINGS CO., LTD. was listed on the 2nd Section of TSE. 1991 KOA ISEI’s Zao Factory was completed. 2011 2015 2016 2018 2022 We have innovated ourselves to remain a leader in the pharmaceutical industry supporting the accelerating super-aging society. KOA SHOJI HOLDINGS CO., LTD. was listed on the 1st Section of TSE. 2020 2026 KOA ISEI’s Zao Factory 2 was completed.
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KOA SHOJI HOLDINGS CO., LTD.50 Metrics FYE6/2025 FYE6/2026 FYE6/2027 Forecast Total assets ¥36.1 bn ¥39.5 bn － Net assets ¥28.1 bn ¥31.1 bn － Equity ratio 77.9％ 78.9％ － ROE 13.7％ 12.6％ － Cash dividends ¥16.0 ¥18.0 ¥19.0 Dividend payout ratio 18.5% 20.2% 22.3% Dividend on Equity Ratio (DOE) 2.5％ 2.6％ － PBR (as of year end) 1.04x 1.02x －
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KOA SHOJI HOLDINGS CO., LTD.51 Return to Shareholders: Shareholder Benefits Record date for dividend payment Number of shares held Details of Shareholder Benefits End of June Holding 200 shares or more QUO Card worth ¥1,000 Continuously holding of 200 shares or more for one year or more QUO Card worth ¥2,000 *Continuously holding for one year or more refers to shareholders listed or recorded at least three consecutive times (twice at the end of June and once at the end of December) with the same shareholder number in the company's shareholder registry at the end of June and December. Providing Shareholder Benefits in addition to year-end dividends (P10)
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KOA SHOJI HOLDINGS CO., LTD.52 Pharma- ceuticals Ethical drugs Over The Counter (OTC) drugs* Launch Drugs that are distinguished clearly from existing drugs in terms of active ingredients, efficacy, and effects, which manufacturers are allowed to exclusively manufacture and sell during a patent term of 20 to 25 years. 2 to 3 years 3 to 5 years 3 to 7 years 1 year Approval review Patent application Patent expiration Development costs Tens of billions of yen Drug discovery Screening Non-clinical trial <Pharmacology> Clinical trial <Phase I to III> New drugs (original drugs) Generics (copy drugs) Release Drugs that are therapeutically equivalent to original drugs and can be sold after the patent terms of original drugs expire. They are less expensive than original drugs as their development costs are lower. 3 to 5 years 1 year Development costs Approx ¥100 million Development Approval review <Types of Ethical Drugs> About Pharmaceuticals Drugs prescribed by physicians Drugs that can be purchased at drugstores and others without a prescription
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KOA SHOJI HOLDINGS CO., LTD.53 Pharmaceutical manufacturer Pharmaceutical wholesaler / sales company Medical institution / dispensing pharmacy Patients API manufacturer Pharmaceutical excipients manufacturer <Distribution route for ethical drugs> Illustrative Image of KOA’s Position
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KOA SHOJI HOLDINGS CO., LTD.54 Value of Generics, and APIs CALONAL Active ingredients Acetaminophen Pharmaceutical excipients Lactose hydrate, crystalline cellulose, partly pregelatinized starch, hydrolyzed polyvinyl alcohol, magnesium stearate, aroma chemicals What are APIs = Active Pharmaceutical Ingredients Ingredients contained in drugs or quasi-drugs that show intended efficacy Value of generics Generics are drugs that are scientifically proven to have an equivalent efficacy to original drugs. They are improved in the taste, flavor, ease of use, etc. with a new technology, to make them easier for patients to take. Pharma - ceuticals APIs
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KOA SHOJI HOLDINGS CO., LTD.55 Business Model Original Business Model Combining a Trading Company and a Manufacturer 医 療 機 関 API Segment Pharmaceuticals Segment
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KOA SHOJI HOLDINGS CO., LTD.56 スペイン ドイツ スイス イタリア 中国 イスラエル カナダ インド 台湾 韓国 メキシコ アメリカ ポーランド ハンガリー フランス マルタ API suppliers overseas: 90 suppliers or more in ten countries around the world Pharmaceutical manufacturers in Japan: 100 manufacturers or more Stable supply of safe, reliable, and reasonably priced APIs As an API-specialized trader, we boast a top-class transaction base and the number of products handled in Japan. Competitive Advantages in API Segment (1)
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KOA SHOJI HOLDINGS CO., LTD.57 Pharmaceutical Analysis Center Quality Assurance Department Robust supporting structure consisted of elite salesforce x specialists Development Department *As of June 30, 2025 Overseas API suppliers Domestic pharmaceutical manufacturers Sales Department Business Management Department (including logistics and warehouse management) 18 persons 67 persons Competitive Advantages in API Segment (2)
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KOA SHOJI HOLDINGS CO., LTD.58 Development Department Overseas API suppliers Domestic pharmaceutical manufacturers Patent research Marketing Development audit SI Center Japan Quality realized through the provision of information on Japanese markets A group of experts capable of proposing safe and reliable APIs from the development stage Proposals looking ahead a few years, and tailored development support • Proposals on manufacturing techniques that bypass patents • Provision of projections about Japanese markets • Instructions on how to build a management structure that meets the audit standards of Japanese regulatory authorities • Proposals on techniques to improve the quality of /new purification methods for APIs to meet domestic regulatory requirements • Proposals on manufacturing techniques that allow for synthesis at low cost • Providing patent opinion • Making proposals catered to customer needs, taking into account marketability and existing product line-ups • Offering referrals to reliable API manufacturing plants • Providing the APIs with characteristics that match formulations • Providing technological information that is helpful in developing formulations Competitive Advantages in API Segment (3)
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KOA SHOJI HOLDINGS CO., LTD.59 Overseas API suppliers Domestic pharma - ceutical manufacturers API warehouse Pharmaceutical Analysis Center Stable supply built on three warehouses located in eastern and western Japan Osaka Yokoham a Rigorous quality management using advanced equipment Trading companies generally outsource or omit quality tests. KOA, however, conducts quality tests on its own to reduce costs, shorten time to delivery, and improve reliability. In addition, we are committed to reducing the burden of development operations of customers, by assuming a range of responsibilities, from the establishment of the method of quality test/standards to the responses to regulatory authorities. SEM-EDX XRDICP-MS Results of quality test Competitive Advantages in API Segment (4) Zao
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KOA SHOJI HOLDINGS CO., LTD.60 Competitive Advantages in Manufacture and Sales of Pharmaceuticals (1) API suppliers Domestic pharmaceutical manufacturers Many years of experience in manufacturing injectable drugs and expertise in freeze-drying technology, covering oral medicine and three formulations for injectable drugs (vial, ampule, and syringe) *Freeze-dry formulation: Necessary ingredients freeze-dried into powder form, which is chemically stable and can be stored for a long time. The formulation, however, needs to be dissolved each time they are used. HQ Factory ■Oral medicine ■Injectable drug ampule line ■Injectable drug vial line (Liquid formulation/freeze-dry line) Ampule Syringe (pre-filled syringe) Zao Factory ■Injectable drug syringe line ■Injectable drug vial line (Liquid formulation/freeze-dry line) Tablet KOA ISEI Vial
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KOA SHOJI HOLDINGS CO., LTD.61 Competitive Advantages in Manufacture and Sales of Pharmaceuticals (2) Vial A small bottle that is filled with drug solution and then capped with a rubber lid The solution can be extracted through the rubber lid using a syringe needle. Ampule A small container that is filled with drug solution and then sealed by melting its thin top Syringe (Pre-filled Syringe) A syringe pre-filled with drug solution Tablet A solid dosage form Lanthanum Carbonate OD Tablet, one of our mainstay products, is a tablet drug. Competitive Advantages of Our Products Lanthanum Carbonate OD Tablet is a pharmaceutical product used to improve hyperphosphatemia in patients with chronic kidney disease. The OD tablet that can be taken without water, and thus, is useful for dialysis patients whose water intake is restricted. Maxacalcitol Injectable Solution is a pharmaceutical product that suppresses the synthesis and secretion of parathyroid hormone and lowers the concentration of parathyroid hormone within the blood, generally used for the treatment of secondary hyperparathyroidism in dialysis patients. Several companies, including the company which has released an original product, have released equivalent products. The difference is that our product in the syringe formulation, while all other companies’ products are in the ampule formation. Pre-filled syringe formations are useful in preventing infections, ensuring the safety of medical professionals, and improving the operational efficiency. Luer slip Barrel (outer tube) Finger grip Cap Drug solution Gasket Plunger
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KOA SHOJI HOLDINGS CO., LTD.62 KOA ISEI Marks Its 70th Anniversary: Logomark 70th Anniversary Logomark We created a logomark to symbolize our 70th anniversary by combining the rising sun over Mount Zao with the number “70” to form the letters “ZAO.” This design embodies our determination and aspirations for the future as we take on new challenges with strength and resilience, like the towering Mount Zao.
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KOA SHOJI HOLDINGS CO., LTD.63 Sustainability Activities We announced ESG Data 2025, while primarily the Sustainability Committee has driven initiatives relating to the environment, society, and governance. ( https://www.koashoji-hd.com/upfile/esg_data.pdf ) ESG Data2026 to be updated in Sept. 2026
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KOA SHOJI HOLDINGS CO., LTD.64 Disclaimer This document has been prepared as part of reference materials to provide investors with an understanding of the current status of KOA SHOJI Co., Ltd (the “Company”). The contents contained herein are prepared based on economic, social, and other conditions generally recognized as of the date of this presentation and on certain assumptions that the Company has judged reasonable, but may be subject to change without prior notice due to changes in the business environment or other reasons. Please use your judgment when making investments.
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KOA SHOJI HOLDINGS CO., LTD.65 KOA SHOJI HOLDINGS CO., LTD. (Securities code: 9273） Supporting Pharmaceuticals from Upstream