Page 00© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

Supplementary Briefing Material on
Financial Results for Third Quarter of
Fiscal Year Ending September 2020
August 6, 2020
Shinnihonseiyaku Co., Ltd.
Securities Code: 4931
Tokyo Stock Exchange Mothers© Shinnihonseiyaku Co., Ltd.

Summary of Financial Results for Third Quarter of
Fiscal Year Ending September 2020

Page 1

1© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

Net Sales: 25,573 million yen
Net Sales(up 0.8% year on year, 73.1% as the progress rate against the full-year outlook)◼ Sales increased year on year due to an expansion in cosmetics sales, although the progress rate
is lower than the plan.
◼ The impacts of the consumption tax rate hike and the novel coronavirus pandemic are limited.
◼ With domestic EC sales remaining firm, overseas EC sales are on a recovery trend, mainly in
China.

Operating Profit 2,552 million yen
ProfitGrowthStrategy(down 1.6% year on year, 81.0% as the progress rate against the full-year outlook)◼ Profit is progressing as planned, albeit lower than a year earlier.
◼ The effort to improve efficiency in operating expenses is progressing well.
◼ Marketing investment was temporarily curbed in order to see through consumer trends.
◼ Full-year outlook remains unchanged (Profit is projected to end with a 10% year-on-yearincrease).

New Growth Strategy◼ All-in-One Gel that improves wrinkles and whitens the skin is scheduled to be released this fall.
◼ Toward a new era after the end of the coronavirus pandemic, the Company launches the “Smart
Health Care Business.”

Page 2INDEX

2© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

1

Summary of Third Quarter Financial Results2

Outlook for Financial Results for Fiscal YearEnding September 2020

3

Business Overview

4Growth Strategy

5

Initiatives for ESG
APPENDIX

Page 33
© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

1.

Summary of Third Quarter
Financial Results

Page 4

Summary of Third Quarter Financial Results

4© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ Net sales increased by 190 million yen year on year (an increase of 0.8%).
◼ The impact of the novel coronavirus was limited, and sales of cosmetics remained solid.
◼ In profit, although operating profit decreased 1.6% year on year due to increased marketing investmentin the first half of the fiscal year under review, it is making steady progress to achieve the full-year
outlook.
(Unit: Million yen)Items

Net salesFirst ninemonths of
FY ended
Sept. 2019

First ninemonths of
FY ending
Sept. 2020

Year-on-year comparison
Changes

Changes (%)

Full-year
outlook for
FY ending
Sept. 2020

Progress rate
against fullyear outlook

25,37625,573

+196

+0.8%

35,00073.1%

Cosmetics

23,06623,542

+475

+2.1%

32,607

72.2%

Health careproducts

2,310

2,030

-279

-12.1%

2,392

84.9%

Operating profit

2,592

2,552

-40

-1.6%

3,150

81.0%

Ordinary profit

2,546

2,549

+3

+0.1%

3,130

81.5%

10.0%

10.0%

0.0 p

ー

8.9%

ー

1,573

1,593

+19

+1.2%

2,010

79.3%

Ordinary profit
rate
ProfitSummary of Third Quarter Financial Results Supplemental Data

Page 5

5© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ In sales by channel, direct store sales/wholesale and overseas sales were partially affected by the novel coronavirus,
but mail order, which was not influenced, drove overall sales.
◼ In terms of overseas and domestic EC sales, domestic EC, in particular, led the expansion of overall sales,marking a year-on-year increase of 22%.
◼ The Company temporarily curbed marketing investment from the plan after April in order to see through consumer
trends.
◼ In operating expenses, both FF cost* and call center cost made progress in improving efficiency, as planned.
(Unit: Million yen)

Items

First ninemonths of
FY ended
Sept. 2019

First ninemonths of
FY ending
Sept. 2020

Year-on-year comparison
Changes

Changes (%)

Full-year
outlook for
FY ending
Sept. 2020

Progress rate
against full-year
outlook<Sales by channel>
Mail order

23,36623,540

+173

+0.7%

31,79474.0%

Direct store/Wholesale

1,563

1,546

-17

-1.1%

2,443

63.3%

Overseas

446

487

+40

+9.1%

762

63.9%

2,070

2,539

+469

+22.7%

3,235

78.5%

7,470

7,643

+172

+2.3%

10,99369.5%

FF cost*

3,684

3,200

-483

-13.1%

4,219

75.9%

Call center cost

2,356

2,219

-137

-5.8%

3,102

71.5%

<Overseas and domestic EC sales>
Overseas and domestic EC
sales<Marketing investment>
Advertising expenses<Operating expenses>* FF cost = Order fulfillment cost

Summary of Third Quarter Financial Results Operating Profit Change Factor Analysis

Page 6

6© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ A net sales increase driven by expanded sales of cosmetics and improved efficiency through FF cost
reduction contributed to higher profit.
◼ Whereas marketing investment such as advertising expenses was carried out aggressively in the firsthalf to expand sales, the investment was temporarily curbed in the third quarter in order to see throughconsumer trends. Consequently, operating profit ended up on almost the same level as the year earlier.
(Unit: 100 million yen)
Factor in
profit growth

1.6
1.3

1.7
3.9

Factor in
profit decline

0.1

3.0

25.9

First nine months
of FY ended
Sept. 2019
Operating profit

25.5

Sales increase

Gross margin

Advertisingexpenses

Promotion
expenses

FF cost*improved
efficiency

Other SG&A
expenses

First nine months
of FY ending
Sept. 2020
Operating profit* FF cost = Order fulfillment costPage 7

Status of Balance Sheet

7© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ The Company purchased a total of 299 million yen in treasury shares between May 14 and June 23.
◼ The Company has 9.3 billion yen in net cash as well as ample amounts of cash and deposits forinvestment for growth.
◼ The Company has concluded overdraft and commitment-line agreements up to 10 billion yen in aneffort to ensure stable financing.

(Unit: 100 million yen)

(Unit: Million yen)

Items

Year-end of
FY ended
Sept. 2018

Year-end of
FY ended
Sept. 2019

Q3-end of
FY ending
Sept. 2020

Changes fromprevious fiscal
year-end

6,094

14,69314,362

-330

2,954

10,576

10,354

-221

2,099

2,913

2,730

-183

Inventories

901

1,063

1,168

104

Non-current assets

3,397

3,882

3,793

-89

Total assets

9,491

18,575

18,156-419

Liabilities

5,299

5,817

4,438

-1,378Trade payables

360

416

268

-147

Interest-bearing
debt

1,284

1,109

979

-129

4,191

12,75813,717

958

ー

ー

(299)

-299

9,491

18,575

18,156-419

Current assets
Cash anddeposits
Accounts
receivable-trade

Net assets

Treasury shares
Total liabilities andnet assets

Net CashEquity Ratio
75.3%

68.7%

94.6

93.7

FY ended
Sept. 2019

Q3 of FY ending
Sept. 2020

43.6%

16.7

FY ended
Sept. 2018

Page 8

8
© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

2.

Outlook for Financial Resultsfor Fiscal Year Ending
September 2020

Outlook for Financial Results for Fiscal Year Ending
September 2020

Page 99© ShinnihonseiyakuPage
Co., Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ Full-year outlook remains unchanged from the initial forecast.
◼ By product category, the Company expects sales growth for cosmetics in the mail order channel.
◼ The Company projects an expansion in demand for all-in-one cosmetics that enable easy and smart
skin care as the tendency to economize is rising, and new lifestyles, such as the habit of wearing facemasks, are taking root.

◼ Demand for health care products is expected to expand due to growing awareness of maintaining
health and improving immunity.
(Unit: Million yen)
FY ending Sept. 2020

Items

Net sales

FY ended
Sept. 2018

FY ended
Sept. 2019

Outlook for
Progress rate
Y-o-Y change in against full-year
Results in the
Outlook forfull-year results
outlook
first nine months full-year results
(%)
(a/b)
(a)
(b)

31,21033,57025,57335,000

+4.3%

73.1%

Cosmetics

27,20930,57523,54232,607

+6.6%

72.2%

Health care products

4,001

2,994

2,030

2,392

-20.1%

84.9%

Operating profit

2,493

2,864

2,552

3,150

+10.0%

81.0%

Ordinary profit

2,499

2,828

2,549

3,130

+10.7%

81.5%

8.0%

8.4%

10.0%

8.9%

+0.5 p

ー

1,751

1,824

1,593

2,010

+10.2%

79.3%

Ordinary profit rate
ProfitPremises of Outlook for Financial Results for
Fiscal Year Ending September 2020

Page 10Page© Shinnihonseiyaku
Co., 10Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ There have been no changes in the premises of the full-year outlook for sales by channel, in
consideration of the third quarter financial results.
◼ In marketing investment, the Company plans to choose media, based on efficiency for capturing
customers, and to expand investment in domestic EC, which is performing well in particular.
◼ For operating expenses, the Company intends to make efforts to improve efficiency in FF cost* asplanned.
(Unit: Million yen)
FY ending Sept. 2020

Items

FY ended
Sept. 2018

FY ended
Sept. 2019

Outlook for
Progress rateY-o-Ychangeinagainstfull-year
Results in the
Outlook foroutlook
first nine months full-year results full-year results
(%)
(a/b)
(a)
(b)

<Sales by channel>
Mail order

29,08030,80423,54031,794

+3.2%

74.0%

Direct store/Wholesale

1,703

2,151

1,546

2,443

+13.5%

63.3%

Overseas

426

614

487

762

+24.2%

63.9%

2,490

2,816

2,539

3,235

+14.9%

78.5%

9,763

10,245

7,643

10,993

+7.3%

69.5%

FF cost*

4,497

4,575

3,200

4,219

-7.8%

75.9%

Call center cost

2,957

3,082

2,219

3,102

+0.6%

71.5%

<Overseas and domestic EC sales>
Overseas and domestic EC
sales<Marketing investment>
Advertising expenses<Operating expenses>* FF cost = Order fulfillment costPage 11

Medium-Term Performance Targets

Page© Shinnihonseiyaku
Co., 11
Ltd.
© Shinnihonseiyaku Co., Ltd.

40,000 million yen or more
10% or more

Net sales

Ordinary profit rate

The Company strives to achieve the above targets at an early stage andwill aim at further growth.
Net sales(Million yen)

経常利益率
Ordinary profit rate

8.9%
8.2%

8.0%
7.0%

6.7%

8.0%

31,210

8.4%

33,570

10.0% or more

40,000
million yen or more

35,00028,372
23,697
19,24012,465

FY ended
March 2015

FY ended
March 2016

FY ended
Sept. 2016*

FY ended
Sept. 2017

FY ended
Sept. 2018

FY ended
Sept. 2019

Outlook for
FY ending
Sept. 2020

Medium-termtarget* FY ended Sept. 2016 had only six months as an accounting period.

Page 12Page
© Shinnihonseiyaku
Co., 12
Ltd.
© Shinnihonseiyaku Co., Ltd.

3.

Business Overview◼ Obtained Patents on Manufacturing New
Functional Collagen Raw Material◼ Enhancement of the Effect of Proposals as
People Spend More Time at Home
◼ Achieved Targeted Sales Quantities of
Seasonal Products for Three Months in a Row◼ Capturing New Customers in EC is Making
Steady Progress◼ Recent Status of Direct Store Sales/Wholesale◼ Recent Status of Overseas BusinessObtained Patents on Manufacturing New Functional Collagen Raw Material*1―The world’s first original raw material “VC Collagen” from
Shinnihonseiyaku

Page 13

Page© Shinnihonseiyaku
Co., 13
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ The Company succeeded in developing the new functional collagen raw material “VC Collagen,”which combines the coenzyme “Vitamin C” necessary to produce collagen with “collagen” which
creates beautiful skin.
◼ In addition to the moisturizing effect of collagen and the antioxidant effect of vitamin C, the Company
confirmed that “VC Collagen” has the ability to stimulate production of collagen about fivetimes*2 as high as general collagen raw materials.
Comparison of collagen creation by fibroblasts(Ratio when setting no addition as 1)
6.0

Collagen creation ratio

5.0

*2

About

4.0

5 times

3.0

2.0

1.0

0.0

No
Noaddition
addition

Traditional
collagenraw materials VC
VC Collagen
Collagen
Generalcollagen*Conceptual illustration

raw materials*1 Patent obtained for “Method for Producing Cosmetic Materials” (July 2, 2020); *2 Evaluation was conducted in-house by using cells.

Enhancement of the Effect of Proposals as People Spend
More Time at Home

Page 14

Page© Shinnihonseiyaku
Co., 14
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ The order closing rate* with subscribers at the call center achieved the highest record in May and Junefor two consecutive months.
◼ The Company attributes achievement of the above records to the appeal effect enhanced by amembership magazine as people spend more time at home.

◼ Another factor seems to be improvement in the quality and opportunity of product proposals,
which put importance on dialog with customers by communicators.
[Order closing rate with subscribers]

20%

Improvement of appeal effects throughthe membership magazine
October

May June

Proposals by communicators* Ratio of the number of new purchases of goods to the number of effective calls received

Achieved Targeted Sales Quantities of Seasonal Products
for Three Months in a Row

Page 15

Page© Shinnihonseiyaku
Co., 15
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ Cross-selling to repeat customers of seasonal products under Perfect One Brand continued
performing well, leading the Company to reach targeted sales quantities.
◼ These products turned out to be popular with many customers since they were developed to solverough skin caused by wearing a mask and seasonal skin troubles.
[April][May]
SP Barrier Mist

[June]SP Peeling Gel

For skin in
spring withlots ofcauses for
irritation

Mist type lotion with two layers of moisturebarriers to protect the skin from pollen anddust and prevent makeup from smearing

To prevent
dullness* ofthe skin thatfeels stiff inearly summer

Cleansing agent that easily cleans andremoves dead skin cells to make the skinsmooth and clear

SP Skin Care Snow Powder

In the rainyseasonwhen theskin tends
to feel oilyor shiny

Skin care powder that can be used for 24 hours
both day and night and reduces sweat andsebum while giving a refreshing feeling to theskin.

* Caused by old dead skin cells that contain melanin.

Capturing New Customers in EC is Making Steady
Progress

Page 16

Page© Shinnihonseiyaku
Co., 16
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ Capturing new customers through listing advertising is going well.

◼ In addition, capturing new customers through online and offline collaboration that utilizes theadvertising space of offline mail order has continued making progress.
[Actual examples of listing
advertisements][Actual examples of online and offline collaboration]

パーフェクトワン

Newspaper
advertisement

購入する

TV

Read the QR code todisplay the web page for
product purchases

Recent Status of Direct Store Sales/Wholesale

Page 17

Page© Shinnihonseiyaku
Co., 17
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ The Company’s direct stores and a portion of stores that handle its products suspended operation
due to the coronavirus pandemic, but they started reopening gradually in late May.
◼ During business suspension, direct stores performed sales promotion, such as dispatching direct
mail based on the customer database and receiving orders by telephone, as measures forcontinuing relationships with customers.

[Sales promotion measures at direct stores]〒□□□- □□□□〒□□□- □□□□

〇月〇日

×××－×××－××××

Sending pamphlets for a home delivery campaign tocustomers who have difficulty visiting our stores

Send DM for sales promotion

Page 18

Recent Status of Overseas BusinessPage© Shinnihonseiyaku
Co., 18
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ Business in each country is recovering gradually from the impact of the novel coronavirus pandemic,
driven by the sales expansion in overseas EC, as economic activity restarted from April.
◼ The big EC event in China “618” generated solid sales.
◼ On June 1, the Company started business in Vietnam.
*Icons and logos are quoted from each company's web site.

[Overseas EC sales growth rate][China]Overseas EC salesrose by about 20%,
driving overall sales[Vietnam]

FY ended FY ended FY ending
Sept. 2018 Sept. 2019 Sept. 2020

Page for purchasing
Perfect One on Tmall

EC malls in which ourstores are opened

Sales in the EC malls
Lazada Vietnam and Shopee

Page 19

Page
© Shinnihonseiyaku
Co., 19
Ltd.
© Shinnihonseiyaku Co., Ltd.

4.

Growth Strategy◼ Further Growth of Perfect One Brand◼ Launch New Healthcare Business◼ Accelerate EC and Digital Expansion◼ Expand Overseas BusinessFurther Growth of Perfect One Brand

Page 20

Page© Shinnihonseiyaku
Co., 20Ltd.

All-in-One Gel for wrinkle improvement and skin whitening© Shinnihonseiyaku Co., Ltd.

◼ From All-in-One Gel series, which has retained the highest market share* for four years in a row, newproducts are scheduled to put on the market in this coming fall.
◼ Toward expanding the share in the functional cosmetics market and further growing the Perfect One
Brand, the Company aims to expand sales by carrying out aggressive advertising investment.

Wrinkleimprovement

Skin
whitening[Quasi-drug (approval pending)]
All-in-One Gel for wrinkle improvement and* Fuji Keizai “Cosmetics Marketing Handbook 2017/2018/2019/2020”
Actual manufacturer and brand market shares in the moisture section and the all-in-one section in 2016, 2017, 2018 and 2019skin whitening

Release Date: Scheduled for the fall in 2020

Launch New Healthcare Business―Smart Health Care

Page 21Page© Shinnihonseiyaku
Co., 21
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ As people’s values are shifting to “self-reliance” after experiencing the novel coronavirus pandemic,“self-defense” (prevent of illness by oneself) has become a theme in the health care field.

◼ In this coming fall, the Company plans to launch a new business that supports people’s “self-reliant
health care” toward a new era after the novel coronavirus pandemic.

Build a Brand through Innovative Methods

Evidence
Products with reliable
quality backed bysupervision of
doctors

Lifestyle

Smart Tech

Self-reliant, smart
values and actions

Visualization of the
body and of effects

Scheduled to be launched in sequence from the fall of 2020

Page 22

Accelerate EC and Digital Expansion

Page© Shinnihonseiyaku
Co., 22
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ Taking advantage of the habit of shopping from home taking root, the Company will expand measures tofurther accelerate the shift to EC.
◼ Making the best use of its EC site and smartphone apps, the Company will continue capturing newcustomers.
20%

EC sales ratio target at

20.0%
+1.5%

10%

+0.4%

Full-year target for
FY ending Sept.
2020 at 9.3%

8.0%

8.4%

FY ended
FY ended
Sept. 2018
Sept. 2018

FY ended
FY ended
Sept. 2019
Sept. 2019

9.9%

0%
of FY
endingQ3Q3of FY
ending
Sept.
Sept. 2020
2020

FY ending
FY ending
Sept. 2022
Sept. 2022

Expand Overseas Business

Page 23

Page© Shinnihonseiyaku
Co., 23
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ The Company will further expand its overseas business, centering on China, while paying attention
to the state of global economic activity, and accelerate development into a global standard brand.

Next!

New!

United States

Vietnam
From June 2020

Thailand
From November 2018

TaiwanFrom December 2016

Singapore
From September 2019

Hong Kong
From June 2018

Page 24Page
© Shinnihonseiyaku
Co., 24
Ltd.
© Shinnihonseiyaku Co., Ltd.

5.

Initiatives for ESG

Page 25

Initiatives for ESG

Page© Shinnihonseiyaku
Co., 25
Ltd.
© Shinnihonseiyaku Co., Ltd.

◼ Following the mission of “a Company that Contributes to Society,” we will start engaging in efforts that we
can do now.

◼ In support of the MAKE IT BLUE JAPAN Executive Committee, the Company participated in the “#LIGHT IT
BLUE,” which sent thanks and encouragement with a blue light to medical professionals fighting on thefrontlines against the novel coronavirus pandemic, and we turned the light at the entrance of the head officeto blue.
◼ Similarly, we joined “#FridayOvation,” an initiative by Fukuoka City to encourage medical and nursing care
workers, and clap our hands to show our gratitude to them at noon every Friday.
◼ We donated face masks and our products to Fukuoka City and Fukuoka City Council of Social Welfare.
◼ We donated relief funds to people affected by the torrential rain of July 2020 through municipalities.
◼ We raised money internally to support the activities of the International Medical Volunteer Organization“Japan Heart” in response to the torrential rain disaster of July 2020.

Image of a donation
presentation ceremony
After the ceremony takes
place on August 4,
insert the picture.

Image of the head office illuminated in blue

Scene from internal fundraising activities

Scene from a donation presentation
ceremony

Page 26

Page
© Shinnihonseiyaku
Co., 26
Ltd.
© Shinnihonseiyaku Co., Ltd.

APPENDIX

Page 27

Company Overview

Page© Shinnihonseiyaku
Co., 27
Ltd.
© Shinnihonseiyaku Co., Ltd.

Company Name Shinnihonseiyaku Co., Ltd.
Representative Takahiro Goto, President & Representative Director of the Board Chief Executive Officer
EstablishedMarch 1992

Head Office

1-4-7 Otemon, Chuo-ku, Fukuoka City, Fukuoka Prefecture

CapitalExecutives

3,826 million yen [As of June 30, 2020]

Takahiro Goto, President & Representative Director of
the Board Chief Executive Officer
Mitsuyoshi Fukuhara, Executive Director of the Board
Seiichiro Hatori, Director of the Board
Kazuhiro Tagami, Director of the Board

Masayuki Kakio, Outside Director
Haruki Murakami, Outside Director
Keiichi Zenmyo, Full-time Outside Auditor
Takashi Tanabe, Outside Audit & Supervisory
Board Member
Yuji Nakanishi, Outside Audit & Supervisory Board
MemberBusiness Profile Planning, mail order, store sales and wholesale of cosmetics, health foods, and pharmaceuticals.
Net Sales
Bases
Total Assets

33.57 billion yen [FY ended September 2019]
Fukuoka (head office), Tokyo Office, 12 direct stores, Yoshizuka Office and Logistics Center
18.1 billion yen [As of June 30, 2020]

Page 28

Introduction to the Company

Page© Shinnihonseiyaku
Co., 28
Ltd.
© Shinnihonseiyaku Co., Ltd.

VisionCreating Healthy and Enriched Lives for People around the World
MissionAchieving the Greatest Possible Satisfaction and Trustfrom Our Customers, Making Our Employees Happy and
Giving Them Dreams for the Future, as a Company That
Contributes to Society, We Aim to Expand Our Efforts
Far and Wide without Limitation
Domain

One to One health & beauty-care.

Creator of Lifestyles that Foster Beauty andGood Health Through Database Marketing

Page 29

HistoryPage© Shinnihonseiyaku
Co., 29
Ltd.
© Shinnihonseiyaku Co., Ltd.

Date

Overview

March 1992

Founded Shinnihonnliving Co., Ltd. (currently Shinnihonseiyaku. Co., Ltd.) as a company that planned and sold daily essentials at Higashi-Ori, Onojo City,
Fukuoka Prefecture (Share capital of 10 million yen).

July 1994 Started sales of health foods by mail order.
June 1996 Relocated the head office to Otogana-Higashi, Onojo City, Fukuoka Prefecture.
December 2000 Commenced sales of basic cosmetics by mail order.
April 2002 Renamed Shinnihonnliving Co., Ltd. to Shinnihonseiyaku Co., Ltd.
March 2003 Opened a logistics center in Yoshizuka, Hakata-ku, Fukuoka City, Fukuoka Prefecture.
April Relocated the head office to Yoshizuka, Hakata-ku, Fukuoka City, Fukuoka Prefecture.

May 2005 Start sales of cosmetics brand “RAffINE series.”
May 2006 Relocated the head office to Akasaka, Chuo-ku, Fukuoka City, Fukuoka Prefecture.
May Launched RAffINE Perfect One.
October Established “Iwakuni-Hongo Research Institute” as the base for cultivation and research of medical plants* 1.
November Started sales of pharmaceuticals by mail order.
March 2010 Opened its first direct store in Fukuoka PARCO shopping mall
July Opened a Tokyo sales office in Uchisaiwaicho, Chiyoda-ku, Tokyo (Currently Tokyo Office).
April 2012 Start wholesale of “RAffINE series.”
October 2013 Relocated the head office to Otemon, Chuo-ku, Fukuoka City, Fukuoka Prefecture.
April 2014 Changed the cosmetics brand name to “Perfect One.”
December 2016 Start sales overseas by mail order (the Taiwanese market).
February 2017 Was awarded the Steering Committee Award in the 7th “Company I Want to Cherish Most in Japan” Grand Prize.
March Perfect One All-in-One Gel series became number one*2 in the Japanese all-in-one skin care market.
September 2018 Started cross-border EC in the Chinese market.
September Was awarded the top prize and the rookie of the year at the beauty award hosted by Taiwan‘s popular infotainment TV show “Queen.”
June 2019 Listed on Tokyo Stock Exchange Mothers.
January 2020 Relocated Tokyo Office to Marunouchi Building in Chiyoda-ku, Tokyo*1 Integrated it into Yoshizuka Office (R&D Center) in June 2020.
*2 Fuji Keizai “Cosmetics Marketing Handbook 2017” (Actual manufacturer and brand market shares in the moisture section and the all-in-one section in 2016)

Page 30

Financial Highlights

Page© Shinnihonseiyaku
Co., 30
Ltd.
© Shinnihonseiyaku Co., Ltd.

Financial closing date
Net sales
Ordinary profit
ProfitShare capital
Total number of shares issued
Net assets
Total assets
Equity ratio
Return on equity
Dividend payout ratio
Cash flows from operating
activities
Cash flows from investing
activities
Cash flows from financing
activities
Cash and cash equivalents
at the end of the period
Number of employees (excluding
temporary employees)

March 2016

September 2016* September 2017 September 2018 September 2019

June 2020(Q3)

23,697
1,663
1,082
200
4,000
1,635
6,288
25.1
84.1
55.4

12,465
839
715
200
4,000
2,583
7,379
34.2
34.8
195.8

28,372
2,275
1,477
220
1,003,630
2,685
8,560
30.7

31,210
2,499
1,751
250
1,009,630
4,191
9,491
43.6

33,570
2,828
1,824
3,826
21,611,300
12,75818,575
68.7

57.3
20.7

51.8
20.1

21.6
15.4

Million yen

－

－

2,372

1,415

1,992

－

Million yen

－

－

(280)

(420)

(943)

－

Million yen－－(1,546)

(419)

6,567

－

Million yen

－

－

2,377

2,954

10,576

10,354People

291

326

346

361

354

－

Million yen
Million yen
Million yen
Million yen
SharesMillion yen
Million yen%%%

25,573
2,549
1,593
3,826
21,611,300
13,717
18,156
75.3－－*The fiscal year ended September 2016 covers the six months from April 2016 to September 2016 due to a change in the accounting period.

Net assets per share

Yen

157.86

252.67261.97409.58590.37－

Earnings per shareYen

108.2771.52

147.69174.46113.99－Dividend per share

Yen

60.00

140.00

30.50

35.00

17.50

－

This table shows the trends in indicators per share calculated on the assumption that a stock split (250 shares per share) conducted in September 1, 2017, and a stock split (10 shares per share)on March 1, 2019, were implemented at the beginning of the fiscal year ended March 2014. Numbers for the fiscal years ended March 2016 and September 2016 (all numbers for dividend pershare) were not audited by Deloitte Touche Tohmatsu LLC.

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<Disclaimer concerning the proper use of business results forecast>
The content presented in this material is based on multiple assumptions and are not intended topromise or guarantee the realization of future planned numbers or measures.

<Contact for inquiries regarding this document>
IR&PR Division, Corporate Planning Division, Shinnihonseiyaku Co., Ltd.
TEL: +81-92-303-8318 FAX: +81-92-720-5819

For inquiries, please use the inquiry form on the Shinnihonseiyaku Co., Ltd. website.
We will reply to you as soon as we can.
https://corporate.shinnihonseiyaku.co.jp/contact/

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