7-6-15 Ginza, Chuo-ku, Tokyo 104-8208, Japan
Phone: +81-3-5568-0305 Fax: +81-3-5568-0441

http://www.noevirholdings.co.jp

Annual Report 2013
Year ended September 30, 2013

Printed in Japan using environment-friendly ink and paper.

*noevir13̲1218表紙最終.indd a1-a2

14/01/08 10:39

ANNUAL REPORT 2013

Contents

A Discussion withTop Management

01

Noevir at a
GlanceNoevir Holdings Co., Ltd. is
a comprehensive corporategroup mainly comprising
two key operatingcompanies: Noevir Co., Ltd.
and Tokiwa PharmaceuticalCo., Ltd. Striving tocontribute to health andbeauty, the Group
operates a cosmetics
business that offers
skincare and makeup
products, while providing
health foods, functional
drinks and OTC
pharmaceuticals.
Since October 2013,
the Group has beenpromoting a new mediumterm management plan
themed on “Securing
sustainability in every
business segment,”
pursuing profit generation
through domestic
business as well as market
development overseas.

*noevir13̲1218最終.indd a1-1

Product Strategy

04
Sales Strategy

12
Corporate Social
Responsibility

08

A Discussion with Top Management

Achieving Record-High Net Income
through Reforms in Business
Structure, Noevir Is Aiming for
New Targets

Corporate
Governance

15

Takashi Okura,President and Representative Director

Financial Section

16
Principal
Consolidated
Subsidiaries

26
Notes to Financial Statements
Translations of consolidated financial
statements and performance in thisannual report are based on the
Company’s quarterly financial reports
prepared in accordance with disclosure
conditions stipulated by the Tokyo Stock
Exchange. Quarterly financial reports areprepared based on Japan’s Generally
Accepted Accounting Principles(Japanese GAAP).

1

18
Board of Directors
and Auditors/
Investor Information

Q1

A1

What is your assessment of the operating environment surrounding the Noevir Group andthe basis of the Group’s competitive edge?

The Noevir Group’s principal focus is the Cosmetics

Accordingly, in October 2013 we revised thebusiness, which offers products ranging frommedium-term management plan, moving forward toprestige counseling cosmetics available primarily

realize new goals under a new theme.

through direct sales to self-selection retail products

perspective, although our mainstay prestige

also provides pharmaceutical and food products

cosmetics have seen signs of market demandand is engaged in the apparel business.

recovery, low-priced products are engulfed in harsh

Since October 2012, we had been promoting

27

Putting the current operating environment into

popular with the young adult segment. The Groupand ongoing market competition. The Noevir Group

a medium-term management plan that involved

is countering these business challenges throughongoing initiatives aimed at improving our profit

swift decision making. Also, our unique corporate

structure. These efforts were so successful that we

culture allows us to quickly focus our Groupwide

achieved this three-year plan’s final-year earnings

strengths on acting on such decisions. I believe thattargets in the first year of its implementation.

our approach is what gives us our competitive edge.

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2

ANNUAL REPORT 2013

Q2

ANNUAL REPORT 2013

Please tell us how the Company’s business activities and performance during fiscal
2013 contributed to Noevir’s record-high earnings.
We strove to enhance the counseling capabilities ofA2

at ¥46,516 million, were slightly below the forecast

spearheading this effort. These studios have been

made as of the beginning of the fiscal year due tocertified by Noevir Co., Ltd. in accordance with

self-selection products seeing a tapering off ofin-house criteria aimed at maintaining highsales growth fromstandards of service quality and uniform service

newly introduced

content. This and other initiatives contributed to

products andfirm sales of high-end cosmetic products boasting

intensifying market

greater profitability, including the upgraded Noevir

competition,

SPECIALE and Noevir EXTRA skincare lines. Also,

operating income

we reduced the cost of sales even further while

reached ¥7,252

cutting fixed costs through the integration andmillion and net

rationalization of administrative tasks that had

income hit a record-

overlaps among Group members.

high ¥4,580 million.

acquired 101,000 new household customers

and plans call for continuously reinforcing theirthrough the transfer of trade rights from two

operations. We will also develop a more effective

domestic medicine-kit marketing companies.

sales network of directly managed stores by

As a result, although consolidated net sales,

sales representatives, with Noevir Beauty Studiosof which will be converted from existing salons,

A Noevir Beauty Studio

3

As for global expansion, we are working toestablishing new stores,

achieve business growth in Asian countries,

primarily in metropolitan

including China, where we have been steadily

locations. Moreover, with thepenetraing the self-selection cosmetics market,

aim of encouraging repeat

as well as Singapore and Malaysia. Furthermore, wepurchases of thewill seek out opportunities to enter markets in suchdermatologist-recommended

countries as Indonesia and the Philippines. Also, as

NOV skincare line, efforts are

we consider North America a priority market, we will

now under way to develop an

continue to devote our management resources thisonline user support system.

region as well.

In the pharmaceutical

Taking these factors into consideration, ourbusiness, we are striving toconsolidated performance forecast for fiscal 2014

expand our business in the(from October 1, 2013 to September 30, 2014)

deposit system market. In

includes net sales of ¥48,000 million, operating income

November 2013, weof ¥7,800 million and net income of ¥4,900 million.

Noevir 505 skincare line

Please tell us about the latest medium-term management plan launched in fiscal 2014.

Q3

A3

Please discuss the CSR activities undertaken by the Noevir Group.
Targeting fiscal 2016, our latest medium-term

enhance our brand value, with an eye on the market

management plan’s theme is “Securing sustainability

environment in countries abroad. Also, we arein every business segment.” As it aims to speedily

stepping up product development and human

implement this plan, the Noevir Group will rally its

resource nurturing initiatives aimed at increasing ourstrengths Groupwide to make the most of its

global market presence.

Q5
For many years, the Noevir Group has striven todevelopment of an abundant society with thefulfill its corporate social responsibility (CSR).

participation of every Group member, wasSpecifically, the Group’s operating companies,

reestablished as a public interest incorporated

including Noevir Co., Ltd. and Tokiwa

foundation in December 2013. Looking ahead, we

capabilities related to R&D, production technology,

Pharmaceutical Co., Ltd., have pursued activities

will remain committed to advancing environmental

marketing and branding. At the same time, we will

promoting environmental preservation and local

preservation on a global basis and supporting thecontinuously work to lower operational costs while

contribution as well as initiatives aimed atsound upbringing of children. Also, we will

steadily implementing highly profitable businesssupporting the sound upbringing of children. As we

proactively provide assistance for the promotion

models that are based on innovation achievedseek to step up these efforts, the “Noevir Greenand healthy development of sports activities.

through domestic operations. Overseas, since theFoundation,” which helps contribute to theA5launch of the previous medium-term management
plan, we have proactively promoted our skincare
products while seeking to expand the breadth of ouroperations. Moreover, we have been striving toFinally, do you have a few words for Noevir Holdings’ stakeholders?
A store in China that handles self-selection cosmetics

What is the outlook for fiscal 2014?

A6

Q4

A4

We have decided to pay out cash dividends for theNoevir Group will maintain a flexible approach toyear under review of ¥50 per share, up ¥10 fromensure that it is capable of quickly dealing withthe dividend forecast as of the beginning of theexternal changes. Simultaneously, we will strive toyear. We aim to pay out annual dividends of ¥50

become an exceptional presence in both theper share for fiscal 2014 as well.

Japanese and overseas markets, thereby

Focusing on the Cosmetics business, we will

we upgraded the Noevir 505 skincare line, ourpursue profit generation in Japan while striving to

mainstay brand in highly profitable counselingAmid the rapid transformation anddevelop new markets overseas.

cosmetics. On the sales front, we will launch adiversification of the market environment, theIn the Cosmetics business, in October 2013*noevir13̲1218最終.indd 2-3

Q6

enhancing our corporate value.

growing number of Noevir Beauty Studios, some

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ANNUAL REPORT 2013

ANNUAL REPORT 20135

Noevir at a Glance
In the domestic cosmetics market—the Noevir Group’s core operating domain—high-end products have seen
gradual recovery in demand while low-priced products have been facing ongoing harsh competition.
On the other hand, the Group was somewhat ahead of schedule regarding the medium-term management
plan it launched in October 2012, attaining the plan’s final-year earnings targets in the first year of this three-year
plan. Taking this into consideration and in step with changes in the market environment, we revised our mediumterm management plan in October 2013. (Please see the facing page of this report for the outline of our latest plan,

Medium-Term Management Plan
Targeting sustainable growth, the Noevir Group’s latest three-year medium-term management plan covers
the fiscal 2014–2016 period. Under the five policies stated below, we are striving to improve profitability
even further while developing new markets.

which covers the fiscal 2014-2016 period.)
The fiscal 2014 – 2016 period
Medium-term management plan theme:

Fiscal 2013 Sales by Segment
Sales in the Cosmetics Business by Sales Route

Other

3.6%

Counseling cosmetics¥1,688 million

Cosmetics principally represented by prestige skincare
products, sold under Noevir brand through such direct sales
channels as sales representatives and directly managed
stores as well as mail order services

Cosmetics

Pharmaceuticals &Health Food

29.1%

53%

36%

67.3%

Self-selection cosmetics¥31,278 million

Cosmetics produced by Tokiwa Pharmaceutical Co., Ltd. thatare sold through general retailers and mail order services¥13,549 million

Overseas business7%

Five policies

1. Pursue innovation and continuous
profit generation in Japan“Securingsustainability inevery businesssegment”

2. Enhance our brand value anddevelop new markets in countries
worldwide
3. Diversify and globalize humanresources and our corporate
structure
4. Strengthen our manufacturing
competitiveness5. Promote a management approachthat is responsive to changes inthe business environment

Overseas sales of counseling cosmetics and self-selection
cosmetics

OEM

4%

Numerical Targets and Achievements

The contract manufacturing of cosmetics and quasi-drugs on
an OEM basis, utilizing the Group’s know-how in both fields

Under the latest medium-term management plan, which sets the target year at fiscal 2016, we are striving to improve
profitability to achieve consolidated net sales of ¥50 billion, operating income of ¥10 billion and an overseas sales
ratio of 10%.
(Millions of yen)

The Size of the Domestic Cosmetics Market in 2012

million24.6%

Cosmetics stores, Department
pharmacies
storesFiscal 2015 targets

Fiscal 2016 targets¥46,516¥48,000¥49,000¥50,000

Operating income

7,252

7,800

8,900

10,000Ordinary income

7,547

8,000

9,100

10,200Net income

4,580

4,900

5,500

6,200

Operating income margin (%)

15.6%

16.3%

18.2%

20.0%

Overseas sales ratio (%)

5.3%

—

—

10.0%

¥130.87¥146.89

Others¥393,400 million
Direct sales

Generalmerchandise stores

6.1%

17.1%
¥2,298,300

Fiscal 2014 forecasts

Net sales

High-end skincare products
The size of domestic
cosmetics market

Fiscal 2013 results

4.0%
Drugstores

Mail orderservices

18.5% 17.6% 14.9% 14.3%

EPS (Yen)ROE (%)
Dividends per share (Yen)*noevir13̲1218最終.indd 4-5¥122.34
8.9%¥ 50.00

9.0%¥ 50.00¥165.59

9.5%

10.0%

—

—

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ANNUAL REPORT 2013

ANNUAL REPORT 20137

Noevir at a Glance
Segment Information

Pharmaceuticals &Health Food

Cosmetics

Other

Overview

Fiscal 2013 Results

Overview

Overview

The Group develops, produces and sells a versatile

In counseling cosmetics, we worked to enhance

The Group develops, produces and sells such flagship items as the

The Other segment encompasses

collection of products under well-regarded brandcustomer services provided at Noevir Beauty Studios.

long-selling Nanten Nodo Ame cough drops, functional drinks,

apparel and aircraft sales and leasing.

names, including Noevir high-performance functional

We also upgraded the Noevir SPECIALE skincare line,

such as the Min Min Da Ha lineup, and other OTC

counseling skincare products; the popular Sanaa prestige skincare line that is of the highest grade.

pharmaceuticals, including cold remedies and eye drops, as well as

products for the self-selection cosmetics market; andIn self-selection cosmetics, we released new

NOV hypoallergenic cosmetics. In addition,

product lines and upgraded items in the Sana

consolidated subsidiary Bonanza Co., Ltd. undertakes

Nameraka Honpo skincare line, our mainstay brand in

the contract manufacturing of cosmetics.

this field, while strengthening sales promotion activities

Fiscal 2013 Results

nutritional supplements featuring high-quality natural ingredients

The aviation-related business enjoyedand such health food products as tea.

firm sales despite unstable market
demand in Europe and the United

Fiscal 2013 Results

States. Backed by the introduction of

We implemented proactive advertising and sales promotion

new products, sales in the apparelAs a result, sales in the Cosmetics segment

activities for functional drinks, including the Min Min Da Ha lineup.

business have also been favorable.

decreased year on year to ¥31,278 million, while

As for nutritional supplements, we introduced new products, such

As a result, sales in the Other

segment income rose to ¥7,775 million.

as Noevir Hyaluronic Acid Jun, that have contributed to steady andsegment increased year on year tofirm sales.

¥1,688 million, and segment income fell

at stores to enhance brand recognition.

Channels

Despite these efforts, sales in the Pharmaceuticals & Health• Direct Sales• Drugstores• Variety Stores• Supermarkets• Mail Order• Directly Managed Stores• Contract Manufacturing

year on year to ¥3 million.

Food segment edged down year on year to ¥13,549 million,
although segment income grew to ¥1,295 million.

Channels• Direct Sales

Channels• Direct Sales• Convenience Stores• Drugstores• Supermarkets• Deposit Sales• Mail Order• Directly Managed Stores• Contract Manufacturing

A promotional pamphlet
for makeup products

Apparel product catalogs

Sana Nameraka Honpo “Hari-Tsuya” line

*noevir13̲1218最終.indd 6-7

Noevir EXTRA skincare line

Sana Excel makeup line

Min Min Da Ha and Kyo Kyo Da Ha
functional drinks

Nanten Nodo Ame cough drops

Noevir Hyaluronic Acid Jun
nutritional supplements

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ANNUAL REPORT 2013

ANNUAL REPORT 2013

9

Product Strategy

The Noevir Group boasts a broad productnanotechnology and brain science with thelineup. For high-end markets, we provide

aim of ensuring that active ingredients

prestige skincare products as well as

penetrate into the keratin layer.

functional cosmetics that we have

As for products targeting the domestic

developed through extensive R&D. In

general retail market, we released the Lift Up

addition, the affordably priced skincare

Red Lotion and the Lift Up Red Gel lines,

products we offer for the young adultwhich incorporate astaxanthin as ansegment are enjoying a strong presence iningredient for skin protection, in the Sana

the general retail market. While responding

Nameraka Honpo skincare line. In doing so,to the needs of these markets, which are at

we sought to expand the product lineup in

opposite poles of the product spectrum, we

the Sana Nameraka Honpo line, our flagshipare reinforcing our anti-aging and skinline boasting No. 1 sales* in the market for01

brightening solutions. Moreover, we leveragesoymilk-based skincare products.

our cosmetic development know-how tooffer items that promote beauty and health,such as nutritional supplements, energy* According to the fiscal 2012 data regarding02

the storefront sales of skincare products

drinks and pharmaceuticals.

incorporating soymilk-based ingredients

Our functional cosmetics, the crownacquired through the point of sales (POS)

jewels of the Noevir Group’s R&D, are key tosystems of the five major domestic retailers

our business performance. In fiscal 2013,
we introduced Noevir BIOSIGN nightsmoothy, a beauty serum for use at night, to01

Noevir BIOSIGN
night smoothy02

Noevir SPECIALE
skincare line

03

Noevir EQ FORCEEDITION

04

Sana Nameraka
Honpo Lift Up Red
Lotion and Lift Up
Red Gelthe Noevir BIOSIGN line, which reflects along history of research in genetics. This
product was developed based on a careful
study of the skin’s metabolic and restoration
mechanisms during sleep. We also released

03

Noevir EQ FORCE EDITION beauty serum,
which incorporates equol, a soy isoflavone
metabolite that in the course of ourGroupwide R&D activities was revealed to

04

04

improve the skin barrier function. Moreover,
we upgraded the Noevir SPECIALE skincare
line of prestige cosmetics that is of thehighest grade. In designing the upgraded
line, emphasis was put on luxury and user
comfort, and it is garnering market praise for
its unique mechanisms. These mechanisms
apply results of our research into

Our Competitive Edge in
Next*noevir13̲1218最終.indd 8-9Developing
Generation Cosmetics
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ANNUAL REPORT 2013

ANNUAL REPORT 2013

11

Interview with Executive in Charge of R &D
Research and Development
In April 2013, the Noevir Group integrated

The Group’s Noevir brand-related

the research laboratories of Noevir Co., Ltd.

research focuses on a wide range of plants

and Tokiwa Pharmaceutical Co., Ltd.,and is based on a policy of being “natural toeffectively establishing a research structure

the skin.” At the same time, the Group

that enables it to provide even morepursues other avenues of research incompetitive products in a range extending

accordance with its proprietary beauty

from cosmetics to pharmaceuticals. Fully

science concept. For the Tokiwa brand, theexploiting the R&D capabilities andGroup proactively engages in joint studies

accomplishments each laboratory has

with universities, focusing on basic researchbrought to the integration, we providethat explores the potential of materials.

products that contribute to health andPositioning brain science and genetics as

beauty and are highly competitive.

priority R&D areas, we are aiming toMoreover, by stepping up collaboration with

develop unique products that are insulated

universities, medical institutions and otherfrom price competition by creating new

external R&D bodies, we continue tovalue.

Pursuing Trail-Blazing
R &D as We Look toa New Era
Kousuke Torii
Executive Officer, General Manager in Charge ofGroupwide Research and Development, Noevir Co., Ltd.

Please explain the Company’s basic R&D stance.

Q1

In its pursuit of R&D, the Noevir Group has beencosmetics to provide stress relief, relaxation andconducting material research aimed at seeking out

refreshment. Also, it has been discovered that the use

new active ingredients while working to create safeof cosmetics can invigorate the brain. To address the

expand the breadth of our R&D, in theand reliable products that are on-trend with market

need for products capable of delivering such effects,

process creating new value andneeds. The role that cosmetics play in society

we are positioning brain science and genetics ascontributing to affluent lifestyles.

changes with the times. For example, we recognize

priority R&D areas.

that today’s aging and high-stress society expects

Please tell us about further details of two priority areas.

Q2

Quality Assurance

In brain science, we have been striving to understandmethods that will be more effective in affecting brain

the psychological effects of facial massage andfunction.
In the area of genetics, we are promoting

The Noevir Group is striving to ensure theFactory has acquired certifications for theskincare based on the measurement of cerebral blood

stable provision of high-quality products

ISO 9001 quality management system andflow fluctuation in response to such stimuli. Our

research and product development projects themed

the ISO 14001 environmental management

research has already succeeded in quantifying theon the following genes: SIRT1, a member of the sirtuin

standards through its own quality

system. Moreover, the factory has

relationship between users’ emotional values, such as

family of proteins that facilitates the effect of a growth

assurance systems, which entail thoroughestablished an integrated management

how their stress has been eased and their level ofhormone and thereby slows the aging of the skin; thesatisfaction, and the analysis results. The results ofMelanogenesis Protecting Factor (MPF) gene, which

this research have been applied to the development ofaffects the accumulation of melanin on the skin,

the Noevir SPECIALE skincare line and othercausing dark patches and freckles to appear; and the

products. Pursuing not only product development but

Mitochondrial Activating Factor (MAF) gene, which

also the enhancement of our services, including salon

affects the mitochondria that power cells.

capable of satisfying stringent safety

quality control at each production process,system that meets the ISO 22716 standard,

from raw material procurement towhich provides technical guidelines for the

manufacturing and shipment. Serving as

manufacture and quality management of

the Group’s key manufacturing facility forcosmetics, and is managing all operations

cosmetics and quasi-drugs, the Shiga

based on this system.

treatments, we are also developing facial massage

Could you tell us about the Company’s future R&D initiatives?

Q3*noevir13̲1218最終.indd 10-11

From the perspective of preventive medicine, thehealth foods as well as salon services, including facial

Noevir Group is striving to develop anti-aging

massage, we will advance the Group’s underlying

solutions that work from both the inside and the

R&D concept, namely, “enhancing beauty from bothoutside. As we strive to develop cosmetics,

the inside and the outside.” To that end, we will

pharmaceuticals, nutritional supplements and otherdevote our best efforts to R&D.

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ANNUAL REPORT 2013

ANNUAL REPORT 2013

13

Sales Strategy

The Noevir Group has introduced multilateral sales methods in response toStrengthening Sales Promotion Activities

diversifying customer needs.
For counseling cosmetics, which are represented by high-end skincare

In fiscal 2013, we conducted proactive

cosmetics. Recommended byproducts, the Group mainly employs direct sales channels backed by sales

sales promotion activities for the Sana

dermatologists, this product line has

representatives as well as directly managed stores. To complement direct sales,

Nameraka Honpo skincare brand—been enjoying growing consumer

the Group also offers the Noevir Style mail order service. Regarding medium-

which encompasses several lines ofrecognition since its launch in 1985 andand low-priced self-selection cosmetics, the Group mainly utilizes such generalself-selection cosmetics boasting

today boasts a significant presence inretailer channels as general merchandise stores, drugstores and variety stores

unique, highly functional and enriching

the general retail market, largely

while also selling these products online through each brand’s website.

items that have captured significant

reflecting rising demand for

For pharmaceuticals, the Group employs deposit sales, in which products

shares of the general retail market

hypoallergenic properties and safety. To

are delivered on regular basis to contracted households and companies, withdespite the increasingly competitive

build consumer support, moreover, we

the settling of accounts based on actual volume consumed. Moreover, theenvironment—and Min Min Da Ha

established a NOV brand website thatGroup undertakes the contract manufacturing of cosmetics and quasi-drugs onfunctional drinks. Featuring a TV

enables visitors to search for outlets

an OEM basis, utilizing its know-how in both fields.

personality and a singing group, chosen

handling the NOV skincare line andfor their popularity among theoffers e-mail-based counseling services

purchasers’ demographic, theseprovided by specialized staff to help

advertising campaigns yielded

customers solve their skin problems.

Providing a customer with makeup tips

Advertising for Sana Nameraka Honpo
skincare line

higher sales.
Accelerating the Expansion of Our Directly Managed Store Network

Also, we have been promoting theAdvertising for NOV skincare line

NOV skincare line of hypoallergenic

Noevir Style directly managed store

The operation of Noevir Style stores,

including lessons on using Noevir

which are directly managed byproducts at home. In fiscal 2013, we

headquarters, steadily gathered

newly established four such stores atmomentum. This was attributable tomajor commercial areas in Tokyo.

our efforts aimed at strengthening theAnother store was added in November

counseling capabilities of store staff

2013. This is one way we are

who engage in such services as facial

diversifying our distribution channels.

massage and provide beauty tips,

Providing a customer with skincare tips

Pushing Forward Reforms Aimed
Sales*noevir13̲1218最終.indd 12-13

Reinforcing the Operations of Noevir Beauty Studios
In May 2011, we introduced Noevir

proactively nurturing sales

Beauty Studios, salons that handle

representatives. Together with thecounseling cosmetics and are certified

Noevir Beauty Academy, which offers

by the Company as maintaining theirfour specialized courses and imparts

service content in line with prescribed,

the basics that sales representatives

across-the-board service standards asneed to master, we introduced suchwell as maintaining a high standard

training programs as the Noevir Skin

regarding sales representatives’ service

Care Advisor System, which provides

skills. As of September 2013, morequalification testing on the concepts

than 1,350 salons had been certified asbehind beauty consulting and beauty

Noevir Beauty Studios. We are alsocare-related skills, and the My Salon

Advertising for Min Min Da Ha
functional drinks

at Developing
Representatives’ Potential
14/01/08 10:42

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ANNUAL REPORT 2013

ANNUAL REPORT 201315

Corporate GovernanceIn order to deepen the understanding of its

Organizational Structure
Education Program which aims to help staff

Premium certificate in September 2013 withThe Board of Directors of Noevir Holdings (“the Company”)

stakeholders and ensure their appropriate evaluation, Noevir

move up to manager level. Moreover, we

the aim of creating a model for salonsconsists of seven members, including one outside director.*

Holdings voluntarily and consistently discloses important

are motivating sales representatives to getnationwide. Our headquarters are providing

Board of directors’ meetings are held monthly on a regular

information pertaining to the Group in a fair, timely andinvolved in management, so that every

this flagship studio with exhaustive support,

basis, with extraordinary meetings convened as necessary.

appropriate manner. To disseminate investor relations (IR)salon enjoys a long life.

including business consultation, thereby

During the fiscal year under review, thirteen meetings were

information, Noevir Holdings established a dedicatedheld. With a view to strengthening corporate governance,

department, created the position of IR director, and regularly

the Company performs duties that ensure the viability of its

holds briefings for analysts and institutional investors.

internal control system and has established a framework*Independent director and corporate auditors in accordance withthe rules of the Tokyo Stock Exchange. The Company has notified
the stock exchange with regard to these appointments.

In line with even higher standards, weawarded our first ever Noevir Beauty Studionurturing a key player that will help solidify
Noevir’s brand image.

whereby the entire Group strictly adheres to legal
requirements and Noevir Holdings’ articles of incorporation.
Noevir Holdings has adopted a corporate auditor system,

To Remain a Salon
That Is Loved by Customers
over Generations
As one of approximately 1,350 Noevir Beauty Studios

Yoshimi Wakiyama
Salon Manager, Noevir Beauty Studio “Nature”

with a board of corporate auditors comprising one standing

Internal Control System Strengthening

corporate auditor and two outside corporate auditors.* In

To ensure the appropriate and sound execution of its

addition, the Company has established an Internal Audit

business operations, Noevir Holdings endeavors to maintain

Department that conducts regular audits across all divisions

an internal control system that strictly adheres to legal

and reports directly to the President and Representativerequirements and its articles of incorporation. The Company

Director. The corporate auditors, the Internal Audit

undertakes the storage and management of information

Department and an independent auditor attend Board ofassociated with directors’ duties, the execution of which is

Corporate Auditors’ meetings whenever necessary. Thisthoroughly streamlined. The Company works to maintainfacilitates mutual cooperation and enables a three-way audit

clarity in its risk management structure as well as tocontrol system that effectively executes its duties.

strengthen and promote its compliance structure under the

Furthermore, Noevir Holdings has adopted an

Noevir Group Strategy and the Noevir Group Code of

executive officer system with the aim of strengthening the

Conduct. By securing a structure for reporting to anprovide customers with an inspiring experience every

nationwide, we continually strive to ensure our ability totime they visit our salon. In addition, we hold monthly

harness Noevir’s brand and product capability. Ourevents aimed at reaching new customers and securingcorporate governance structure. The executive officer

independent board of auditors and conducting effective

certification as the first Noevir Beauty Studio Premium—repeat business. To sum it all up, we are continuallysystem is expected to reinforce the Board of Directors’audits and reliable financial reporting, Noevir Holdings

based on our track record of nurturing closer

working to ensure that our salon is vibrant.

decision-making and auditing functions, accelerate business

continues to further enhance its internal control system.

relationships with customers in the local community and

Looking ahead, our goal is to win the love andproviding high-quality services—has further inspired meloyalty of customers over the generations; we aspire toto step up efforts to make this salon even better.

become part of the legacy passed on from parents to

In line with a policy of nurturing a sense of sharedexecution and clarify the Company’s responsibilities.
Corporate Governance Organizational Structurechildren to grandchildren, and to inspire colleagues

joy and fun through the provision of beauty carenationwide, thereby encouraging them to join us in the

support, “Nature” strives to fulfill its customers’ desire to

pursuit of this goal.

General Meeting of Shareholders
Appoint/Dismiss

enhance their beauty. To this end, we always pay
Oversight

a customer perspective, we are meticulous about theConfirmbackground music, fragrance and interior decor, withthe aim of providing a refuge from the bustle of daily lifeand refreshing the spirit. Moreover, along with offering
outstanding hospitality, we constantly work to ensurethat our salon staff’s beauty consultation and customer
service skills are topnotch. Specifically, our staff

Report

Audit

Noevir Holdings Board of Directors:
Directors and Outside Director
Supervision Appoint/Dismiss

Confirm

President andRepresentative Director

Accounting audit

Thorough supervision andcompliance with policies

Group Executive Council

ReportConfirm

undergoes periodic training on beauty counseling and

Board of Corporate Auditors:
Standing Corporate Auditor, Outside Auditors

Decide/Approve

Decide/Approve

Legal Counsel

Independent Auditor

attention to the salon atmosphere and services. Taking

Internal audit

Noevir Holdings’ divisions

Internal Audit Department
Reporttechniques. In these ways, we strive to ensure that we
Noevir Beauty Studio “Nature,” the first salon toacquire Premium certification

Management guidance/
Approval for important matters

ReportingOperating Companies*noevir13̲1218最終.indd 14-15

14/01/08 10:42

16

ANNUAL REPORT 2013

ANNUAL REPORT 201317

Corporate Social Responsibility
Basic Philosophy
Working toward the realization of affluent lifestyles for all stakeholders, the Noevir Group is engaged in the creation of
beauty and health. With a clear awareness of the responsibilities that we bear for each stakeholder, namely, customers,

Topic 2: NOEVIR STADIUM KOBE

business partners, shareholders, employees, society and the environment, we will proactively contribute to the

In March 2013, Noevir Co., Ltd. acquired the naming

work to help local residents as well as people nationwide

development of society while aiming to achieve further business growth.

rights for the Misaki Park Stadium owned by Kobe City ofshare in the joy and inspiration sports can provide.

Hyogo Prefecture. The Company chose to dub thestadium the “NOEVIR STADIUM KOBE.” This stadium
hosts a number of games in which topnotch female
athletes compete, including the “Nadeshiko Japan”
national female soccer team. Taking this into
consideration, we will strive, as a Kobe-based cosmetic

Topic 1: Establishing the Noevir Green Foundation

manufacturer, to aid in the development of a comfortable
In December 2013, Noevir Holdings Co., Ltd.

which it will help

reestablished the “Noevir Green Foundation” as a publicnurture futureinterest incorporated foundation. The Noevir Groupgenerations and thestrives to ensure beauty and health through thedevelopment of andevelopment of unique cosmetic, pharmaceutical andabundant society. In

health food products that incorporate the blessings ofthese ways, the Noevir

nature. While desiring to preserve the bounties of nature,

Group will strive to

we wish to nurture the qualities of leadership in children,

make even greater

the future custodians of the riches of the natural world,social contribution.

and high-quality stadium setting. By doing so, we will
NOEVIR STADIUM KOBE

Topic 3: Consideration of the Welfare of Experimental Animals
Speaker at an “environmental class”
aimed at supporting the soundupbringing of children

In line with international guiding principles regarding

toxicity testing using rodents can be replaced byanimal welfare, the Groupwide Research andchemical toxicity evaluation using silkworms, a type ofby providing opportunities for youngsters to enjoy sports.

The foundation will take over activities that Noevir

Development Division is developing an alternative to

invertebrate. Applying these findings, efforts are now

The foundation’s focus is therefore on the promotion ofCo., Ltd. has been pursuing for many years in areas thatanimal testing through joint research with the Graduate

under way to develop a practical testing method. Going

environmental protection activities and sports, throughsupport the sound upbringing of children, including

School of Pharmaceutical Sciences at the University offorward, we will continuously pursue R&D activities with“environmental classes,” which encourage them toTokyo and Genome Pharmaceuticals Institute Co., Ltd.

an emphasis on animal welfare.

discuss the future of the natural environment, andThe research has discovered that conventional acuteenvironmental preservation activities, such as forest
development at the Rokko mountain range—an endeavor
in which Group employees also voluntarily take part.
Furthermore, the foundation will explore the possibility oflaunching of new environmental preservation projects

Topic 4: The Noevir Green Recycle and Noevir Green Charity

while proactively providing subsidies for sports
Since 2010, Noevir Co., Ltd. has pursued the Noevir

of goods, including garden planters. As of June 30, 2013,

Green Recycle initiative aimed at environmental

approximately 41.5 tons of containers had been

overall strengths to support environmental preservation

preservation and the Noevir Green Charity, a biannual

collected. The Noevir Green Charity, on the other hand,and social contribution initiatives with the Noevir Greenfund raising campaign aimed at social contribution.

gathers and donates a part of proceeds from designatedFoundation spearheading its efforts and thereby help toNoevir Green

items sold during the biannual skincare product fair. The

associations and supporting the development of athletes.
Looking ahead, the Group will continue to rally its

Children learning about forest maintenance as part of theenvironmental classensure a society where people enjoy fulfilling lives.

Recycle aims to collectamount gathered is donated to the Manasul fund headed

used productby alpinist Ken Noguchi, which raises money for school

containers throughconstruction at the foot of the Himalayas and for thesales representatives

provision of other support of the region’s children. As ofnationwide forAugust 2013, the charity held its seventh campaign andrecycling into a variety

has donated a cumulative total of ¥8,833,077.

The Manasul fund provides assistance forschool construction at the foot of the Himalayas*noevir13̲1218最終.indd 16-17

14/01/08 10:42

18

ANNUAL REPORT 2013

ANNUAL REPORT 2013

19

Financial Section• Management’s Discussion and Analysis¥1,976 million for income tax paid.

Overview

and administrative (SG&A) expenses were ¥23,557 million,

increases of 2.0 percentage points and ¥95.54,

During fiscal 2013 (October 1, 2012 to September 30,

and the ratio of SG&A expenses to net sales was 50.6%.

respectively.

2013), the Japanese economy experienced a turnaroundThe cost of sales as a percentage of net sales and thein the foreign currency exchange rate, which resulted inratio of SG&A expenses to net sales improved 0.9 and

Cash Flows

proceeds from withdrawal of time deposits. The primary

yen depreciation, as well as a rise in stock prices. These

3.8 percentage points year on year, respectively.

Cash and cash equivalents, end of year, stood at ¥42,062

outflow was ¥2,031 million in expenditure for deposit tomillion, an increase of ¥5,809 million compared withtime deposits and ¥505 million for the purchase of¥36,253 million at the end of the previous fiscal year.

property, plant and equipment.

Operating income totaled ¥7,252 million and net

trends have, in turn, spurred expectations of economic

income came to ¥4,580 million, contributing to arecovery in Japan.

Net cash provided by investing activities was¥1,393 million. This was primarily due to ¥4,000 million in

Net cash provided by operating activities amounted

Net cash used in financing activities amounted to

In the domestic cosmetics market—the Noevir

considerable increase in earnings. Reflecting this, theGroup’s core operating domain—demand for high-end

Group posted record-high net income and thereby

to ¥5,778 million. This was due mainly to income before¥1,498 million. This was mainly attributable to cash

products continued to show gradual recovery while low-

attained earnings targets for fiscal 2015, the final year

income taxes totaling ¥7,507 million, against an outflow ofdividends paid of ¥1,498 million.

priced products faced ongoing harsh competition.

of the medium-term management plan, in the first yearof this three-year plan.

Under these circumstances, in the Cosmetics

Five-Year Summary

segment, the Noevir Group continued to promote
counseling cosmetics with a focus on enhancing customer
services at Noevir Beauty Studios, salons where beauty-(Millions of yen)
Noevir Co., Ltd. Consolidated Results

Assets, Liabilities and Net Assets
Total assets at the fiscal 2013 year-end stood at ¥86,871

related lessons are provided. In self-selection cosmetics,

million, up ¥3,169 million compared with the previous

the Group released new product lines and upgraded items

fiscal year-end. This was due mainly to a ¥3,842 million

offered under its leading brands while strengthening sales

increase in cash and cash equivalents.
Total liabilities at year-end declined ¥418 million year

promotion activities at stores to enhance brandrecognition. In the Pharmaceuticals & Health Foodon year to ¥33,593 million. This was mainly attributable tosegment, the Group implemented proactive advertisingdecreases in notes and accounts payable of ¥855 million.

and sales promotion activities for functional drinks. Also,

Net assets at year-end increased ¥3,588 million to

Fiscal Year

2009

2010

Noevir Holdings Co., Ltd.

2011

2011

2012

2013

Period/Item

September 21–September 20

October 1,
October 1,
March 22,
September 21,
2012–
2011–
2011–
2010–March
September 30, September 30, September 30,
20, 2011
2013
2012
2011
(March 21, 2011*)

Net sales
Operating income¥ 55,227
3,539¥ 24,493
1,296¥ 52,580
2,782¥ 24,581
1,576¥ 47,220
5,150¥ 46,516
7,252

Net income

2,152

1,565

533

614

2,787

4,580

Total assets

89,30888,797

86,84187,427

83,70186,871

Total net assets

51,90352,01250,992

51,59549,68953,278

Capital expenditures

1,277

710

361

186

234

701

the Group introduced a new nutritional supplement¥53,278 million. This was mainly attributable to a ¥3,083

Depreciation

2,099

1,894

854

910

1,702

1,107

product line.

million increase in retained earnings due to the recording

R&D costs

As a result, net sales for fiscal 2013 came to ¥46,516

of net income.
As a result of the foregoing, the equity ratio stood at

million. The cost of sales amounted to ¥15,707 million andas a percentage of net sales was 33.8%. Selling, general

61.3% while net assets per share were ¥1,421.42,

1,487

1,541

775

675

1,095

974

Dividends per share (yen)

¥

36.00

¥

36.00

¥

—

¥

36.00

¥

40.00

¥

Earnings per share, basic (yen)

¥

52.07

¥

37.88

¥

12.90

¥

14.88

¥

73.37

¥ 122.34

Total net assets per share (yen)¥1,255.50¥1,325.88¥1,421.42¥1,233.49¥1,248.02

ROE (%)**

4.2%

3.0%

—

—

5.5%

ROA (%)**

2.3%

1.8%

—

—

3.3%

5.4%

58.1%
2,336

58.6%
2,287

58.7%
—

59.0%
2,097

59.3%
1,798

61.3%
1,670

Equity ratio (%)
Number of employees (consolidated)¥1,258.20

50.00

8.9%

Cosmetics

Net Sales

Operating Income/Net Income(¥ million)(¥ million)

60,0008,000

Net sales¥ 36,825¥ 34 ,589¥ 16,030¥ 16,167¥ 32,223¥ 31,278

5,524

4,799

2,046

2,273

5,591

7,775

Net sales

6,939

6,539

—

—

—

—

Operating income

(511)

(729)

—

—

—

—

8,553

8,440

—

—

—

—

580

346

—

—

—

—

Net sales

—

—

7,404

6,821

13,595

13,549Segment income

—

—

(13)

94

1,245

1,295

2,910
(12)

3,012
(77)

1,059
(32)

1,592
75

1,401
70

1,688
3

Operating income/Segment income
Pharmaceuticals***

50,0006,000
40,000

Health Food***
30,0004,000

Net sales
Operating income

20,000

Pharmaceuticals & Health Food***

2,000
10,000
0

0
2009

2010

2011*
First Half

Net sales

55,22752,58024,493

Noevir Co., Ltd. Consolidated Results

2012

2013

2009

2010

24,58147,22046,516

Noevir Holdings Co., Ltd.

3,539

Net Income

2,152* First Half: September 21, 2010 –March 20, 2011 (See p. 19 note * )*noevir13̲1218最終.indd 18-19

2013

Second Half

2,782

1,296

1,576

5,150

7,252

1,565

533

614

2,787

4,580

Other
Net sales
Operating income/Segment income*

Noevir Co., Ltd. Consolidated Results
( )

2012

First Half

Second Half

Operatingincome2011*

Second Half: March 22, 2011–September 30, 2011

Noevir Holdings Co., Ltd.

March 21, 2011 is included in Noevir Co., Ltd.’s accounting period from September 21, 2010 to March 20, 2011. March 21, 2011 was a public holiday inJapan, and the impact on Noevir’s business results was minor.
** 2011 was an irregular accounting period due to the establishment of the holdings company. Accordingly, ROE and ROA are not presented for 2011 due tothe difficulty in calculating a year-on-year comparison of indices.
*** With the start of FY 2011, Noevir changed the organization of its segments.

14/01/08 10:42

20

ANNUAL REPORT 2013

ANNUAL REPORT 201321

• Consolidated Financial Statements
Consolidated Balance Sheets(Thousands of yen)

As of
September 30, 2013

(Thousands of yen)

As of
September 30, 2012

As of
September 30, 2013

As of
September 30, 2012

¥ 3,968,830¥ 4,824,771

11,176

10,262

LIABILITIES AND NET ASSETSASSETS

Current liabilities

Current assets
Cash and cash equivalents¥42,096,084¥38,253,228

Notes and accounts payable

Notes and accounts receivable

10,914,170

11,754,160

Lease obligations

Merchandise and finished goods

5,254,686

5,694,420

Other accounts payable

3,045,128

3,393,112

216,484

206,578

Income tax payable

2,904,258

1,294,737

Raw materials and purchased supplies

1,096,459

1,299,798

Deferred tax liabilities

—

1,194

Deferred tax assets

1,180,534

1,097,329

Reserve for bonuses

288,629

161,982

Other receivables

1,925,344

1,761,543

Reserve for product returns

543,031

691,425

Other

830,839455,123

1,175,848

1,376,080

Allowance for doubtful accounts(33,069)(55,945)

11,936,904

11,753,567

63,481,536

60,466,236

19,917

21,358

16,577,786

17,358,866

223,355—

4,649,363

4,692,944

185,673

184,689

21,656,096

22,257,858

33,593,000

34,011,425

Common stock

7,319,000

7,319,000

Additional paid-in capital

3,484,620

3,484,620

Retained earnings

42,455,189

39,372,029

(138)

(50)

53,258,671

50,175,599

Work in progress

Total current assets

Other
Total current liabilities
Long-term liabilities
Lease obligations

Non-current assets

Guarantee deposits received

Property, plant and equipment

Deferred tax liabilities

Buildings and structures, net

4,770,138

5,005,520

Equipment and vehicles, net

647,121792,277

13,642,382

13,642,382

Lease assets, net

29,63030,118Construction in progress

60,146

1,609

Other, net

237,394

203,938

19,386,814

19,675,847

Goodwill—

32

Software

174,267

328,769

Other

94,29998,853

268,567

427,654

Total shareholders’ equity

Investment securities

728,677

409,322

Accumulated other comprehensive income

Deferred tax assets

1,951,096

1,796,916

Net unrealized gain on other securities

244,187

39,651Other

1,112,168

1,021,442

Foreign currency translation adjustments(281,011)(570,493)

Allowance for doubtful accounts(57,857)(96,333)

Total accumulated other comprehensive income(36,824)(530,841)

Total investments and other assets

3,734,085

3,131,347

Minority interests

56,15544,902

23,389,467

23,234,849

Total net assets

53,278,002

49,689,660¥86,871,003¥83,701,086

Total liabilities and net assets¥86,871,003¥83,701,086

Land

Total property, plant and equipment
Intangible assets

Total intangible assets

Reserve for employees’ retirement benefits
Other
Total long-term liabilities
Total liabilities

NET ASSETS
Shareholders’ equity

Treasury stock

Investments and other assets

Total non-current assets
Total assets*noevir13̲1218最終.indd 20-21

14/01/08 10:42

22

ANNUAL REPORT 2013

ANNUAL REPORT 2013

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income(Thousands of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Cost of sales
Advertising expenses
Salaries and bonuses
Accrued allowance for bonuses
Retirement benefits for employees
Depreciation
Research and development expenses
Other
Total
Operating income
Non-operating income
Interest income
Dividend income
Exchange differences
Sales of promotional materials
Lease income
Insurance dividends
Other
Total
Non-operating expenses
Commitment fee
Other
Total
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on sale of investment securities
Gain on transfer of business
Total
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Other
Total
Income before income taxes
Income taxes-basic
Income taxes-deferred
Total
Income before minority interests
Minority interests
Net income*noevir13̲1218最終.indd 22-23

23(Thousands of yen)

Year ended
September 30, 2013

Year ended
September 30, 2012

¥46,516,576
15,707,046
30,809,529¥47,220,289
16,372,870
30,847,418

3,851,354
1,337,360
6,912,695
228,121589,248
693,048
968,914
8,976,496
23,557,239
7,252,290

4,030,696
1,425,780
7,878,143
122,845819,908
1,143,508
1,090,749
9,185,785
25,697,417
5,150,001

9,141
9,455
20,26722,39854,22776,400115,677
307,569

11,9409,286
14,532
26,50656,097
77,402
120,318
316,084

9,486
2,388
11,875
7,547,984

12,032
2,849
14,882
5,451,204

9,577
—
—
9,577

160,775
2,563
64,000227,338

49,566——49,566
7,507,995
3,040,322(120,862)
2,919,460
4,588,535
7,664¥ 4,580,870

60,66086,1875,000
151,847
5,526,695
1,782,066
944,316
2,726,383
2,800,312
12,618¥ 2,787,693

Income before minority interests
Other comprehensive income
Net unrealized gain on other securities
Foreign currency translation
Total
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

Year ended
September 30, 2013

Year ended
September 30, 2012

¥4,588,535¥2,800,312

204,535
302,369
506,904
5,095,440

22,181
25,07347,2552,847,568

5,074,887
20,552

2,833,369
14,198

Consolidated Changes to Equity(Thousands of yen)

Shareholders’ equity
Common stock
Balance at beginning of the year
Changes during the reporting period
Total changes during the period
Balance at end of the year
Additional paid-in capital
Balance at beginning of the year
Changes during the reporting period
Retirement of treasury stock
Total changes during the period
Balance at end of the year
Retained earnings
Balance at beginning of the year
Changes during the reporting period
Distribution of dividends from retained earnings
Net income
Increase (decrease) due to change in accounting period of
consolidated subsidiaries
Total changes during the period
Balance at end of the year
Treasury stock
Balance at beginning of the year
Changes during the reporting period
Purchase of own shares
Retirement of treasury stock
Total changes during the period
Balance at end of the year

Year ended
September 30, 2013

Year ended
September 30, 2012

¥ 7,319,000¥ 7,319,000—
7,319,000—
7,319,000

3,484,620

6,809,798——
3,484,620(3,325,177)(3,325,177)
3,484,620

39,372,029

37,944,986(1,497,711)
4,580,870(1,487,622)
2,787,693—
3,083,159
42,455,189

126,971
1,427,043
39,372,029

(50)

(17)

(87)
—
(87)
(138)

(3,325,210)
3,325,177
(32)
(50)

14/01/08 10:42

24

ANNUAL REPORT 2013

ANNUAL REPORT 2013

Consolidated Changes to Equity (Continued)

Consolidated Statements of Cash Flows(Thousands of yen)

Total shareholders’ equity
Balance at beginning of the year
Changes during the reporting period
Distribution of dividends from retained earnings
Net income
Purchase of own shares
Retirement of treasury stock
Increase (decrease) due to change in accounting period of
consolidated subsidiaries
Total changes during the period
Balance at end of the year
Accumulated other comprehensive income
Net unrealized gain on other securities
Balance at beginning of the year
Changes during the reporting period
Changes during the reporting period, excluding shareholders’ equity
Total changes during the period
Balance at end of the year
Foreign currency translation
Balance at beginning of the year
Changes during the reporting period
Changes during the reporting period, excluding shareholders’ equity
Total changes during the period
Balance at end of the year
Accumulated other comprehensive income
Balance at beginning of the year
Changes during the reporting period
Changes during the reporting period, excluding shareholders’ equity
Total changes during the period
Balance at end of the year
Minority interests
Balance at beginning of the year
Changes during the reporting period
Changes during the reporting period, excluding shareholders’ equity
Total changes during the period
Balance at end of the year
Total net assets
Balance at beginning of the year
Changes during the reporting period
Distribution of dividends from retained earnings
Net income
Purchase of own shares
Retirement of treasury stock
Increase (decrease) due to change in accounting period of
consolidated subsidiaries
Changes during the reporting period, excluding shareholders’ equity
Total changes during the period
Balance at end of the year

*noevir13̲1218最終.indd 24-25

25(Thousands of yen)

Year ended
September 30, 2013

Year ended
September 30, 2012

¥50,175,599¥52,073,767(1,497,711)
4,580,870(87)—(1,487,622)
2,787,693(3,325,210)——

126,971

3,083,071
53,258,671(1,898,167)
50,175,599

39,651

18,362

204,535
204,535
244,187

21,28921,28939,651(570,493)(520,373)

289,481
289,481(281,011)(50,119)(50,119)(570,493)(530,841)(502,010)

494,016
494,016(36,824)(28,830)(28,830)(530,841)

44,902

23,468

11,253
11,25356,15521,434
21,43444,902

49,689,660

51,595,224(1,497,711)
4,580,870(87)—(1,487,622)
2,787,693(3,325,210)——
505,2703,588,341¥53,278,002

126,971(7,396)(1,905,564)¥49,689,660

Cash flows from operating activities
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in reserve for doubtful accounts
Increase (decrease) in reserve for bonuses
Increase (decrease) in reserve for product returns
Increase (decrease) in reserve for retirement benefits
Interest and dividends received
Gain/loss on currency translation
Gain/loss on marketable and investment securities
Gain/loss on sales of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in guarantee deposits
Other
SubtotalInterest and dividends received
Income tax (paid) refunded
Net cash provided by (used in) operating activities
Cash flows from investing activities
Expenditure for deposit to time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of investments in subsidiaries
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Net cash provided by (used in) investing activities
Cash flows from financing activities
Purchase of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effects of exchange rate changes on cash and cash equivalents
Net change in cash and cash equivalents
Cash and cash equivalents, beginning of year
Net change in cash and cash equivalents due to change inaccounting period of consolidated subsidiaries
Cash and cash equivalents, end of year

Year ended
September 30, 2013

Year ended
September 30, 2012

¥ 7,507,995
1,107,223—
7,547(62,718)
125,919(148,394)(43,581)(18,597)(21,640)—
39,988923,872
813,198(906,117)(781,446)(807,582)
7,735,667
19,327(1,976,109)
5,778,884¥ 5,526,695
1,702,321
86,187
777(25,784)(23,612)(351,488)(446,200)(21,226)(15,284)(2,563)(100,114)(565,961)
539,274
430,169(1,055,687)(21,261)
5,656,239
23,467(1,451,551)
4,228,155(2,031,637)
4,000,000(2,110)—(16,814)(505,983)
11,719(61,944)
1,393,228(2,031,921)
2,556,561(1,800)52,248—(301,208)
326,727(15,098)
585,508(87)(1,498,589)(1,498,676)
136,223
5,809,660
36,253,228(3,325,210)(1,488,057)(4,813,267)
27,02427,42036,148,890—¥42,062,888

76,916¥36,253,228

14/01/08 10:42

26

ANNUAL REPORT 2013

ANNUAL REPORT 2013

Principal Consolidated Subsidiaries (As of September 30, 2013)

Name

Location¥7,319Tokiwa PharmaceuticalCo., Ltd.

3-5-12 Azuchi-machi
Chuo-ku, Osaka 541-0052
Japan¥4,301Bonanza Co., Ltd.

6-13-1 Minatojima-nakamachi
Chuo-ku, Kobe 650-8521
Japan

¥10

3-12-23 Kitahorie
Nishi-ku, Osaka 550-0014
Japan

¥98

Tokiwa Medical Service
Co., Ltd.

Noevir Aviation Co., Ltd.

Noevir Holding ofAmerica, Inc.
Noevir U.S.A., Inc.

Noevir Canada, Inc.

2-12 Yao Airport
Yao, Osaka 581-0043
Japan

¥35

1095 Main Street
Irvine, California 92614
U.S.A.

US$7,250
thousand1095 Main Street
Irvine, California 92614
U.S.A.
7360 River Road, RichmondBritish Columbia V6X 1X6
CanadaBoard of Directors and Auditors (As of December 11, 2013)

Issued Share Capital Direct or Indirect(millions of yen,
Ownership byexcept as
the Company
otherwise stated)(percent)(Kobe Headquarters)
6-13-1 Minatojima-nakamachi
Chuo-ku, Kobe 650-8521
Japan(Tokyo Headquarters)
7-6-15 Ginza, Chuo-ku
Tokyo 104-8208
Japan

Noevir Co., Ltd.

US$5,900
thousand
C$1,131
thousand

100.00100.00100.00100.00100.00100.00100.00100.00Principal Business

Production and sale ofcosmetics, toiletries and foodproducts as well as purchaseand sale of make-up items andapparel

Production and sale ofcosmetics and toiletries as wellas purchase and sale of makeup items

Hiroshi Okura

Masashi Akagawa

Standing Corporate Auditor
Yoshiharu Hayashi

Outside Corporate Auditors
President andRepresentative Director
Takashi Okura

Directors
Ikkou Yoshida
Yasuo Kaiden
Masataka Nakano

Masakazu Ueda
Kazuhiro Kida

Outside Director
Sanae Tanaka

Investor Information (As of September 30, 2013)
Name:

Stock Listing:

Noevir Holdings Co., Ltd.

Tokyo Stock Exchange, First Section (Ticker: 4928)

Air transportation business

Date of Establishment:

Transfer Agent and Registrar:

March 22, 2011
(Noevir Co., Ltd. was founded in
April 1964.)

Sumitomo Mitsui Trust Bank, Limited
1-4-1 Marunouchi, Chiyoda-ku, Tokyo 100-8233, Japan

Holding company for two U.S.
subsidiaries and one Canadiansubsidiary
Sale of cosmetics andfood products

Sale of cosmetics andfood products

Room 802, No. 6 Jilong Road
Waigaoqiao Free Trade Zone
Pudong New Area,
Shanghai 200131, China

3,311
thousand
Chinese yuan

100.00Shanghai Noevir
Co., Ltd.

Room 2206, Feidiao InternationalPlaza
No. 1065A Zhaojiabang Road
Shanghai 200030, China

5,000
thousand
Chinese yuan

50.00

Sale of cosmetics as well as
procurement and sale of sales
promotion goods for the Noevir
Group

Noevir Aviation, Inc.

200 West Grand Avenue
Montvale, New Jersey 07645
U.S.A.

US$1,350
thousand

100.00Purchase from and sale tocompanies outside the Noevir
Group of aircraft and vessels

Noevir Europe s.r.l.

Via Tre Settembre, 99 (5°-#183)
47891 Dogana
Repubblica di San Marino

26,000euro

100.00Market research in Europe

Noevir Shanghai, Inc.

Vice President andRepresentative Director

Sale of cosmetics, toiletries andfood products as well aspurchase and sale of make-up
items/Production and sale ofover-the-counter (OTC)
pharmaceuticals and quasi-drugs

NT$31,000
thousand

100.00Chairman and
Representative Director

Production and sale of cosmetics,
toiletries and food products aswell as purchase and sale of
make-up items/Production andsale of over-the-counter (OTC)
pharmaceuticals and quasi-drugs

8th Fl.-2, No.111 Songjiang
Road, Jhongshan District
Taipei City 10486
TaiwanNoevir Taiwan, Inc.

27

Sale of cosmetics andfood products

Procurement and sale of sales
promotion goods for the Noevir
Group

Major Shareholders
Paid-in Capital:¥7,319 million

Name

Number of
Shares Held(thousands)

Percentage ofTotal Shares lssued(percent)

Hiroshi Okura

8,438

22.53

Headquarters:

NII Co., Ltd.

4,972

13.27

• Kobe6-13-1 Minatojima-nakamachi
Chuo-ku, Kobe 650-8521, Japan

Takashi Okura

3,699

9.87

Okura Kohsan, Ltd.

2,991

7.98

900

2.40

Noevir Holdings Employees Shareholdings Scheme

883

2.35

Mizuho Bank, Ltd.

600

1.60

Japan Trustee Services Bank, Ltd. (Account in Trust)

478

1.27

Sumitomo Life Insurance Company

300

0.80

• Tokyo
7-6-15 Ginza, Chuo-ku
Tokyo 104-8208, Japan
Phone: +81-3-5568-0305
Fax: +81-3-5568-0441

Sumitomo Mitsui Banking Corporation

Nihon Kolmar Co., Ltd.
Total

300

0.80

23,561

62.92

Forward-Looking Statements
Statements in this annual report with respect to Noevir Holdings’ plans, strategies, projected financial results and beliefs as well as otherstatements that are not historical facts are forward-looking statements based on information currently available, and such statements involverisks and uncertainties that could cause actual results to differ substantially from expectations.

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14/01/08 10:42