Noevir Holdings Co., Ltd.
Results for the First Half of Fiscal 2020
(October 1, 2019 – March 31, 2020)

May 14, 2020
Noevir Holdings Co., Ltd.
Ikkou Yoshida, Director,
Management Strategy and Public & Investor Relations
1

Company Overview
Noevir Holdings Co., Ltd.
◆Date of Establishment◆Paid-in Capital◆Line of Business

Ticker : 4928

March 22, 2011 (Noevir Co., Ltd. was founded in April 1964.)¥7,319 million

Apparelbusiness
Aviation-related
business

Cosmetics◆Consolidated Subsidiaries◆Employees◆Number of Shareholders◆Outstanding Shares◆Market Capitalization

Pharmaceuticals & Health FoodOther

13 subsidiaries (6 domestic / 7 international)
1,530 (Consolidated)
17,725
34,156,623¥166.684 billion (May 13, 2020 @ ¥ 4,880)

2

First Half of Fiscal 2020 Highlights
Net sales 27,789 million yen (down 5.7% YoY), operating income 5,068 million yen (down 16.4% YoY), ordinary income 5,135 million yen(down 16.8% YoY) and net income attributable to owners of the parent 2,398 million yen (down 15.0% YoY) all fell lower than theprevious fiscal year due to the impact of the rebound against an increase in the consumption tax and the COVID-19 pandemic.
1st half ended
March 31, 2020

1st half ended
March 31, 2019

Millions of yen

Millions of yen

Millions of yen

Net sales

27,78929,483(1,694)

Cost of sales

10,024

10,596

(572)

(5.4)

Gross profit

17,765

18,887(1,122)

(5.9)

SG&A

12,696

12,825

(129)

(1.0)

Operating income

5,068

6,061(992)(16.4)

66

108

(41)

(38.4)

5,135

6,169

(1,034)

16.8

0

1(2)

-Income before income taxes

5,134

6,170

(1,036)(16.8)

Income taxes

2,7353,349(613)(18.1)Net income attributable to owners of the parent

2,398

2,821(422)(15.0)

36.1
18.2
18.5
8.6
45.7

35.9
20.6
20.9
9.6
43.5

0.1
(2.3)
(2.4)
(0.9)
2.2

-

Non-operating income/expenses

Ordinary Income
Extraordinary Income/loss

Cost ratio (%)
Operating income margin (%)
Ordinary income margin (%)
Net income attributable to owners of the parent margin (%)
SG&A ratio (%)

Year-on-year change

Earnings forecast target％

Millions of yen(5.7) 29,700％(6.4)

6,100(16.9)

6,200(17.2)

2,900(17.3)
-20.5
20.9
9.8
--3

Impact of COVID-19

Impact on the First Half of Fiscal 2020
Net sales(670)(Millions of yen)

Cosmetics segment(700)

Pharmaceuticals &Health Food segment

30

Other segment

0

Forecast Impact on the Full Year for Fiscal 2020
Net sales(4,600)Operatingincome(400)(Millions of yen)

Cosmetics segment(4,170)

Pharmaceuticals &Health Food segment(280)

Other segment(150)

Operatingincome(2,300)

4Reasons for Change in Operating Income(Millions of yen)

Factors increasing profit

First Half ofFiscal 2019

Decrease in operatingincome of 992 million yen

Streamlining of sales
promotion expenses, etc.

Increase in personnel
expenses

Impact of COVID-19

Decrease in gross profit due
to sales decrease caused byfactors other than COVID-19

Factors decreasing profit

First Half ofFiscal 2020

5

Segment-Based Highlights
1st half ended
March 31, 2020
Millions of yen

Cosmetics(Net sales)(Segment income)Pharmaceuticals &Health Food(Net sales)(Segment income)
Other(Net sales)(Segment income)Consolidated net sales

1st half ended March 31, 2019
Millions of yen

Year-on-year change％

21,182
5,683

22,4386,614(1,255)
(930)

(5.6)
(14.1)

5,597
688

5,926
676

(328)
12(5.5)
1.9

1,008
92

1,118
46(110)45(9.8)96.1

27,78929,483(1,694)(5.7)•

Cosmetics segment: Sales and profits decreased year on year
Face-to-face channel cosmetics and self-selection cosmetics performed sluggishly•

Pharmaceuticals & Health Food segment: Sales declined and profits increased year on year
Profits increased, mainly due to efficient management of selling, general and administrative expenses.

•

Other segment: Sales declined and profits increased year on year
6

Segment
resultsCosmetics
Sales composition
ratio

Net sales: 21,182 million yen
Previous year: 22,438 million yen (-1,255 million yen, -5.6%)
Segment income: 5,683 million yen Previous year: 6,614 million yen (-930 million yen, -14.1%)

76.2%● Face-to-face channel cosmetics•

New serum performed strongly, but decreased mainly
through existing series•

Increased the opening of NOEVIR Beauty Studio locations● Self-selection cosmetics•Sales decreased for the excel brand makeup line due to theCOVID-19 pandemic•

Strong sales of new products in the Nameraka Honpo skincare
brand, but decreased mainly through existing series•

Strong sales of the New Born and the Pore Putty makeup brand•

Strong sales of the NOV brandNoevir NEUROGIC Serum● Overseas and OEM business sales•

Strong sales of OEM products
excel brand lineup

Nameraka Honpo
brightening skincare line7

Segment
results

Pharmaceuticals & Health Food
Sales composition
ratio

Net sales: 5,597 million yen
Previous year: 5,926 million yen (-328 million yen, -5.5%)
Segment income: 688 million yen Previous year: 676 million yen (+12 million yen, +1.9%)

20.2%● Sales decreased due to sluggish sales of national brand drinks● Profits increased mainly because of efficient management of selling,
general and administrative (SG&A) expenses

Segment
resultsOther

Net sales: 1,008 million yen
Segment income: 92 million yen

Nanten Nodo Ame
cough drop brand product

Min Min Da Ha functional drink
brand lineup

Previous year: 1,118 million yen (-110 million yen, -9.8%)
Previous year:46 million yen (+45 million yen, +96.1%)

Sales composition
ratio

3.6%

● Sales in the apparel-related business and the aviation-related business performed strongly

8Balance Sheets(Millions of yen)
As of Mar. 31, As of Mar. 31,
2019
2020

ChangeCurrent assets
Cash and cash equivalents
Notes and accounts receivable
Non-current assets
Property, plant and equipment
Buildings and structures, net
Equipment and vehicles, net
Land
Lease assets, net
Construction in progress
Intangible assets
Goodwill
Investments and other assets
Investment securities
Total assets

49,65026,575
11,651
29,871
23,2364,202
2,69313,713
1,281
1,142
209
1
6,425
2,458
79,522

48,885(765)
27,574 ① 999
9,926(1,725)29,402(468)
23,336
99
5,594
1,392
2,059(634)13,755
42
1,175
(105)
491
(651)
461
252
286
285
5,603
(821)
1,534
(923)
78,287(1,234)Current liabilities

10,1799,349

Long-term liabilities
Guarantee deposits received
Total liabilities
Shareholders’ equity
Common stock
Retained earnings
Total net assets

20,676
13,62830,85547,7887,319
40,46948,666

20,326(350)
13,129 ② (499)
29,675(1,180)
47,760(27)
7,319—
40,442(27)48,612(53)Total liabilities and net assets

79,52278,287(829)●Balance Sheets
Current assets: 48,885 million yen(compared to Mar. 31, 2019：-765 million yen)
Balance of net cash and deposits: 14.4 billion yen (up: 1.4 billion
yen year on year) = ① Cash and cash equivalents: 27.5 billion
yen - ② Guarantee deposits received: 13.1 billion yen

Total assets / Total liabilities and net assets:
78,287 million yen(-1,234 million yen year on year)●Capital Expenditures / Depreciation(Millions of y en)
1st half ended
Mar. 31, 2019

Capital Expenditures
Depreciation

1st half ended
Mar. 31, 2020

1,218

929

840810Change(289)(30)(1,234)9

Medium-Term Management Plan,
Main Initiatives in the Second-Half of the Year,and Forecasts

10Medium-Term Management Plan and Forecast‒ Three-Year Plan through Fiscal 2022 ‒Having positioned net sales, operating income and return on equity (ROE) as key management
indicators, the Noevir Group aims to maximize its corporate value and enhance profitability.
Medium-Term
Management Plan Concept

Five policies

Management Targets
for Fiscal 2022
NetsalesRealizing steady corporate growth by securing
sustainability in every Group business segment
1. Pursue innovation and continuous profit generation in the domestic market
2. Enhance our brand value
3. Accelerate efforts to diversify human resources and our corporate structure
4. Strengthen our competitiveness by stepping up the diversification of
our R&D, production and logistics systems
5. Promote a management approach that is responsive to changes in the businessenvironment

61,000
million yen

Operatingincome13,000
million yen

ROE15%(Millions of yen)

Fiscal 2019 Results

Net sales
Operating income
ROE

59,252
11,992
13.8%

Fiscal 2020

54,0009,500
13%

Fiscal 2021

60,40012,60015%

Fiscal 2022

61,00013,00015%
11Fiscal 2020 Forecasts
Net Sales

Operating
IncomeOrdinary
Income(Millions of yen) (Millions of yen) (Millions of yen)

Net Income
Attributable toowners of theParent(Millions of yen)

EPS(Yen)

1st Half Results

27,789

5,068

5,135

2,398

70.22

2nd Half Forecast

26,211

4,432

4,565

4,202

123.05Full Year Forecasts (A)54,000

9,500

9,700

6,600

193.23Fiscal 2019 Results (B)59,252

11,992

12,2477,226211.57

Change (A-B)(5,252)(2,492)(2,547)(626)(18.34)

Change(8.9)%(20.8)%(20.8)%(8.7)%(8.7)%

Previous Full-Year Forecast(C)

59,80012,30012,5008,500

248.85

Change (A-C)(5,800)(2,800)(2,800)(1,900)(55.62)

Change(9.7)%(22.8)%(22.4)%(22.4)%(22.4)%
12Fiscal 2020 Reasons for Change in
Operating Income Forecast
Controlled costs, but the impacts of the rebound accompanying the consumption tax
increase and COVID-19 pandemic drove down gross profits and operating income fell below
the previous fiscal year.
(Millions of yen)
Factors increasing profit

Fiscal 2019

Forecast decrease in operating
income of 2,492 million yen

Decrease in packing
and transportation
costs, etc.

Streamlining of sales
promotion expenses, etc.

Impact of COVID-19

Decrease in gross profit due
to sales decrease caused byfactors other than COVID-19

Factors decreasing profit

Fiscal 2020
(forecast)
13

Initiatives
for 2H

Cosmetics

Launch new products that encapsulate customer needs in the face-to-face channel and self-selectioncosmetics, increase profitability as a core business● Face-to-face channel cosmetics•

Launch new products such as Noevir WATERLY OIL SERUM, etc., and concentrateon expanding sales•

NOEVIR Beauty Studio
Improve service quality and concentrate on sales with NOEVIR Beauty Studio as animportant point of contact with customers•

Accelerate spread of NOEVIR support, an online ordering system for sales outlets•

Expand earnings and attract customers at the directly-managed NOEVIR Style andNOEVIR SALON DE SPECIALE stores● Self-selection cosmetics•Noevir WATERY OIL SERUM

Acquire a wide customer base and expand sales with the launch of attractive
new products in the Nameraka Honpo skincare brand, excel brand makeup
line, New Born, and Pore Putty makeup brand
Acquire a wide array of customers and further expand earnings•

Focus on sales expansion of NOV mainstay III and L&W skincare lines● Overseas and OEM business sales•

Acquire further new OEM orders

NOV III skincare line

14

Initiatives
for 2H

Pharmaceuticals & Health Food

Launch distinctive new products centered on drinks and increase profitability by strengthening
cost control● Min Min Da Ha functional drink brand
Deploy promotions using internet and social media● Nanten Nodo Ame cough drop brandAim to increase earnings by capturing new customers through launch of
special products and new products, etc.
Min Min Da Ha functional drink brand lineup● Strengthen orders for private brands and OEM

Initiatives
for 2H

OtherNanten Nodo Ame cough drop brand lineup

Improve profitability● Launch new apparel products● Continue to proceed with caution in the aviation-related business15

Dividend and Dividend Payout Ratio（￥）

Dividend¥200 ¥200 250

200¥180180140¥120120 129.5％

10080

200150¥10010040200¥150

16060（％）

Dividend payout ratio¥36 ¥40

54.5％

¥50
40.9％

¥60
73.1％

84.2％

75.1％

78.8％

94.5％

103.5％

5051.7％

Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2014 Fiscal 2015 Fiscal 2016 Fiscal 2017 Fiscal 2018 Fiscal 2019 Fiscal 2020
forecast016

[Inquiries] Noevir Holdings Co., Ltd. Public & Investor Relations Tel: +81-03-5568-0305 Fax: +81-03-5568-0441
E-mail: ir@noevirholdings.co.jp Web: https://www.noevirholdings.co.jp/english/index.htm
These materials contain information that constitutes forward-looking statements. Such forward-looking statements are not guarantees of future
performance and involve risks and uncertainties. Actual results may differ from those in the forward-looking statements as a result of various factors
including changes in material circumstances.

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