Non-Consolidated Financial Results
for the Nine Months Ended June 30, 2020
[Japanese GAAP]
August 6, 2020
Company name:Shinnihonseiyaku Co., Ltd.
Stock exchange listing:Tokyo Stock Exchange
Code number:
4931
URL:
https://corporate.shinnihonseiyaku.co.jp
Representative:
Takahiro Goto, President & Representative Director and Chief Executive Officer
Contact:
Kazuhiro Tagami, Director of the Board(TEL) +81-92-720-5800
Scheduled date of filing quarterly securities report:
August 12, 2020
Scheduled date of commencing dividend payments:―Availability of supplementary briefing material on quarterly financial results: Yes
Schedule of quarterly financial results briefing session:
Yes (On-demand video streaming of financial results briefing)(Amounts of less than one million yen are rounded down.)

1. Financial Results for the Nine Months Ended June 30, 2020 (October 1, 2019 to June 30, 2020)(1) Operating Results (Cumulative)(% indicates changes from the previous corresponding period.)
Operating profit
Ordinary profit
ProfitNet sales
Nine months ended
June 30, 2020
Nine months ended
June 30, 2019

Million yen%

Million yen%

Million yen%

Million yen%

25,573

0.8

2,552

(1.6)

2,549

0.1

1,593

1.2

25,376

—

2,592

—

2,546

—

1,573

—

Basic earnings
per share

Diluted earnings
per share

yenyenNine months ended
June 30, 2020
73.82
73.42
Nine months ended
June 30, 2019109.91109.87(Note) 1. The Company conducted a stock split on March 1, 2019, at the rate of 10 shares per 1 share of common stock. Basicearnings per share and diluted earnings per share are calculated on the assumption that the stock split was carried out at thebeginning of the fiscal year ended September 30, 2019.
2. Since the Company was listed on the Tokyo Stock Exchange Mothers on June 27, 2019, diluted earnings per share for thenine months ended June 30, 2019 is calculated based on the average stock price during the period from the initial listingdate to June 30, 2019, which is deemed as the average stock price during the nine-month period.

(2) Financial Position
Total assets
As of June 30, 2020
As of September 30,2019(Reference) Equity:2.

Net assets

Equity ratio

Million yen

Million yen%

18,156

13,71775.3

12,75868.7

18,575
As of June 30, 2020
As of September 30, 201913,673 million yen
12,758 million yen

Dividends
1st quarter-end

2nd quarter-end

Annual dividends
3rd quarter-endyenyenyenyenyen

—

17.50

17.50

28.00

28.00

Fiscal year ended September 30,
2019
—
0.00
Fiscal year ending September 30,
2020
—
0.00
Fiscal year ending September 30,
2020 (Forecast)(Note) Revision from the most recently announced dividend forecast: No

Year-end

Total—

3.

Financial Results Forecast for the Fiscal Year Ending September 2020 (October 1, 2019, to September 30, 2020)
Net sales
Million yen

Operating profit

Million yen%

Million yen%

yen

Full year
35,000
4.3
3,150
10.0
3,130(Note) Revision from the most recently announced financial results forecast:
No10.7

2,010

10.2

93.01

*%

Million yen%(% indicates changes from the previous year.)
Basic earnings
Ordinary profit
Profitper shareNotes(1)

Accounting policies adopted specially for the preparation of the quarterly financial statements:

No(2)Changes in accounting policies, changes in accounting estimates and retrospective restatement
1)
Changes in accounting policies due to the revision of accounting standards:
2)
Changes in accounting policies other than 1) above:3)
Changes in accounting estimates:
4)
Retrospective restatement:

NoNo
NoNo

(3)

Total number of shares issued (common stock)1)
Total number of shares issued at the endof the period (including treasury shares)
2)
Total number of treasury shares at the endof the period
3)

Average number of shares during theperiod (cumulative)

As of June 30,
2020
As of June 30,
2020
Nine months
ended June 30,
2020

As of September
30, 2019
As of September
190,100 shares30, 2019
Nine months
21,583,680 shares ended June 30,
201921,611,300 shares

21,611,300 shares— shares14,320,300 shares(Note) The Company conducted a stock split on March 1, 2019, at the rate of 10 shares per 1 share of common stock. The average
number of shares during the period is calculated based on the assumption that the stock split took place at the beginningof the fiscal year ended September 30, 2019.
*

These quarterly financial results are outside the scope of quarterly review by certified public accountants or auditing firms.

*

Explanation on the proper use of financial results forecast and other notes
Financial results and other forward-looking statements herein are based on currently available information and certain assumptions
that the Company deems as reasonable, and actual results, etc. may differ significantly from these forecasts due to various factors.

Table of Contents
1.

Qualitative Information for Quarterly Financial Results for the Period under Review ·································· 2(1) Explanation on Business Results ························································································· 2(2) Explanation on Financial Position ························································································ 2(3) Explanation on Financial Results Forecast and Other Forward-Looking Information Forecast ················· 22. Quarterly Financial Statements and Primary Notes ·············································································· 3(1) Quarterly Balance Sheet ··································································································· 3(2) Quarterly Statement of Income ··························································································· 5(3) Notes to the Quarterly Financial Statements ············································································ 6(Notes on going concern assumptions) ·················································································· 6(Segment information, etc.) ······························································································· 6- 1 -1. Qualitative Information for Quarterly Financial Results for the Period Under Review(1) Explanation on Business Results
The Japanese economy during the nine months ended June 30, 2020, was influenced significantly by stagnation ineconomic activity and a deterioration in consumer spending caused by the spread of novel coronavirus infections,amid the lingering impact of a reactionary decline in demand after a surge by a buying rush prior to the hike of theconsumption tax rate.
With the end of the pandemic not in sight globally either, the outlook for the economy in Japan and overseas remains
uncertain.
In such a market environment, sales in the mail order channel, which is key to net sales, were not significantly
affected for the nine months ended June 30, 2020, although there remained the impact of a reactionary fall in demand
after sales were moved up from the current fiscal year to the previous fiscal year, resulting from the rise of theconsumption tax rate, and some direct store/wholesale channels and overseas channels were impacted by thecoronavirus pandemic.
In Mail Order, net sales recorded a year-on-year increase due to measures taken to cultivate new customers indomestic EC sales and active investment in advertising on external online malls in addition to solid trends in salesof seasonal products that can be applied along with All-in-One Gel, targeted at customers already using the Perfect
One All-in-One Gel series.
In Direct Store/Wholesale, net sales decreased from the same period of the previous year due to temporary shutdownof stores and a decrease in customer traffic because of self-restraint on outings caused by the novel coronavirus
pandemic, despite continued efforts to increase the number of stores, mainly variety shops and GMS (*1), that handle
our products and to expand spaces for our products in sales floors.
In Overseas, although sales were trending upward in China, in particular, during the three months ended December
31, 2019, a portion of sales activities was affected by suspension of domestic distribution in China and delays inexports to China during the six months ended March 31, 2020, resulting from the spread of novel coronavirus
infections. Nonetheless, net sales grew on a year-on-year basis due to growth in overseas EC sales.
As a result, net sales were 25,573 million yen (up 0.8% year-on-year), operating profit was 2,552 million yen (down1.6% year-on-year), ordinary profit was 2,549 million yen (up 0.1% year-on-year) and profit was 1,593 million yen(up 1.2% year-on-year).
The Company’s business segments consist of Mail Order, Direct Store Sales/Wholesale, and Overseas Sales ofcosmetics and merchandise related to health care. As the ratio of Direct Store Sales/Wholesale and Overseas Sales
to overall sales is insignificant, and their materiality as disclosed information is low, description by business segment
has been omitted.
*1: GMS stands for General Merchandise Store (general supermarket)(2) Explanation on Financial Position
Total assets as of June 30, 2020 were 18,156 million yen, a decrease of 419 million yen from the end of the previous
fiscal year. The main factors for the decrease were a decrease of 221 million yen in cash and deposits, a decrease of
183 million yen in accounts receivable-trade, and an increase of 93 million yen in merchandise.
Liabilities were 4,438 million yen, a decrease of 1,378 million from the end of the previous fiscal year. This wasmainly due to a decrease of 595 million yen in accounts payable-other and a decrease of 462 million yen in income
taxes payable.
Net assets were 13,717 million yen, an increase of 958 million yen from the end of the previous fiscal year. Thiswas mainly attributable to the posting of profit of 1,593 million yen, a decrease of 378 million yen by the paymentof dividends, and a decrease of 299 million yen by the purchase of treasury shares.
(3) Explanation on Financial Results Forecast and Other Forward-Looking Information Forecast
No revision has been made to the financial results forecast for the fiscal year ending September 30, 2020, releasedin “Non-Consolidated Financial Results for the Fiscal Year Ended September 30, 2019” dated November 8, 2019.
Financial results and other forward-looking statements herein are based on information available to the Company
and certain assumptions deemed reasonable at the date of publication of this document. Actual results, etc. may
differ significantly from these forecasts due to various factors.

- 2 -2. Quarterly Financial Statements and Primary Notes(1) Quarterly Balance Sheet(Unit: Million yen)Previous fiscal year
(As of September 30, 2019)
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total non-current assets
Total assets- 3 -Third quarter ofthe current fiscal year
(As of June 30, 2020)

10,576
2,913
964
326
(87)

10,354
2,730
1,057
317
(97)14,693

14,362

2,140
653
1,088

2,306
506
979

3,882

3,793

18,575

18,156

(Unit: Million yen)Previous fiscal year
(As of September 30, 2019)
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Provision for bonuses
Provision for point card certificates
Provision for sales returns
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for retirement benefits
Provision for retirement benefits for directors (andother officers)
OtherThird quarter ofthe current fiscal year
(As of June 30, 2020)

416
173
2,297
848
201
264
39
303

268
173
1,702
385
107
119
49
381

4,544

3,188

936
149

806
157

150

163

36

123

1,272

1,250

Total liabilities

5,817

4,438

Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares

3,826
3,817
5,113
—

3,826
3,817
6,328
(299)

12,757

13,67210

10

Total non-current liabilities

Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets- 4 -—

43

12,75813,717

18,575

18,156

(2) Quarterly Statement of Income
First nine months of the fiscal year
(Unit: Million yen)First nine months ofthe previous fiscal year
(From October 1, 2018
to June 30, 2019)

First nine months ofthe current fiscal year
(From October 1, 2019
to June 30, 2020)

Net sales
Cost of sales

25,376
3,669

25,573
3,832

Gross profit

21,707

21,741

Provision for sales returns

79

Gross profit - net

21,69921,731

Selling, general and administrative expenses

19,107

19,179Operating profit

2,592

2,552

49619
8319

32

1348
3032
1

Non-operating income
Dividend income
Rental income
Other
Total non-operating income
Non-operating expenses
Foreign exchange losses
Loss on valuation of investment securities
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment loss
Total extraordinary losses

65

34

2,546

2,549——

310—

13Profit before income taxes2,546

2,536

Income taxes - current
Income taxes - deferred986
(14)

856
86

Total income taxes
Profit- 5 -972

942

1,573

1,593

(3) Notes to the Quarterly Financial Statements(Notes on going concern assumptions)Not applicable(Segment information, etc.)
The Company’s business segments consist of Mail Order, Direct Store Sales/Wholesale, and Overseas Sales ofcosmetics and merchandise related to health care. As the ratio of Direct Store Sales/Wholesale and Overseas
Sales to overall sales is insignificant, and their materiality as disclosed information is low, description by businesssegment has been omitted.

- 6 -