November 10, 2022

Noevir Holdings Announces 2022 Consolidated Results(based on Japan GAAP)
Trade name:
Listing:
URL:
Representative:
Contact:

Noevir Holdings Co., Ltd.
Tokyo Stock Exchange, Prime Market (Securities Code: 4928)
https://www.noevirholdings.co.jp/
Takashi Okura, President and CEO
Mitsuyoshi Hanyu, Executive Officer, Accounting
Tel. +81-78-303-5121
Annual General Meeting of Shareholders: December 8, 2022
Date of commencement of dividend payments: December 9, 2022
Submission of securities report: December 8, 2022
Supplemental materials for the financial results prepared: Yes
Results briefing for the reporting period held: Yes (for institutional investors and analysts)(Amounts under one million yen have been rounded down)

1. Operating results for the fiscal year ended September 30, 2022
(October 1, 2021 – September 30, 2022)(1) Consolidated operating results(Millions of yen; percentage figures denote year-on-year change)

Net salesYear ended September 30, 2022

61,143OperatingincomeOrdinary
incomeNet income
attributable to ownersof the parent

10,115－

10,406

－

7,589

－

Year ended September 30, 2021
51,272 (1.1)%
8,557
Note: Comprehensive income:Year ended September 30, 2022: 7,900 million yen [－%]
Year ended September 30, 2021: 7,061 million yen [14.8%]

6.2%

8,972

8.9%

6,383

13.6%

－

EPS (Yen)

Diluted EPS
(Yen)

ROE
(%)

Ordinary
income/Total
assets (%)

Operatingincome/Total sales(%)

Year ended September 30, 2022

222.20

－

14.6

13.2

16.5

Year ended September 30, 2021

186.88

－

12.3

11.2

16.7

[Reference]
Equity in gain/losses of affiliated companies
Year ended September 30, 2022: — million yen

Year ended September 30, 2021: — million yen
Note: The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. has been
applied from the beginning of the fiscal year ended September 30, 2022. The figures for the fiscal year ended September
30, 2022 are presented after application of this accounting standard, etc. Therefore, year-on-year changes for thesefigures are not disclosed.

(2) Consolidated financial position
Total assets
76,78180,448Year ended September 30, 2022
Year ended September 30, 2021
[Reference] Equity:Year ended September 30, 2022: 52,055 million yen

Net assets
52,38452,233Equity ratio (%)
67.8
64.5

(Millions of yen)

Net assets per share (Yen)
1,524.05
1,520.27

Year ended September 30, 2021: 51,926 million yen-1-(3) Consolidated cash flows(Millions of yen)

Cash flows fromoperating activities

Cash flows frominvesting activities

5,845
9,063

(255)
(416)

Year ended September 30, 2022
Year ended September 30, 2021

Cash flows fromfinancing activities(7,380)(7,181)

2. Cash dividends
Annual dividends

Year ended
September 30, 2021
Year ended
September 30, 2022
Year ending
September 30, 2023
(forecast)

Total dividend
amount(Millions of yen)(Annual)Payout ratio(%)(Consolidated)

Cash and cash
equivalents,
end of year
29,53030,841(Yen)
Dividends/
Shareholders’equity (%)(Consolidated)

1stquarter

2ndquarter

3rdquarterYearend

Total

－

0.00

－

210.00210.00

7,172

112.4

13.8

－

0.00

－

215.00215.00

7,343

96.8

14.1

－

0.00

－

215.00215.0095.4

3. Consolidated earnings forecasts for the fiscal year ending September 30, 2023
(October 1, 2022 – September 30, 2023)(Millions of yen; percentage figures denote year-on-year change)

Net Sales
Half year
Full year

30,20061,6000.1%
0.7%

Net income
attributable toowners of the parent
1.4%
2,400 (19.5)%
4.7%
7,700
1.5%

Operating income

Ordinary income

5,300
10,7005,400
10,9001.3%
5.8%

EPS (Yen)
70.27
225.43* Notes(1) Significant changes in subsidiaries (scope of consolidation) during period: None
(2) Changes in accounting principles, procedures, disclosure methods
1) Changes associated with revision in accounting standards: Yes
2) Other changes: None
3) Changes in accounting estimates: None
4) Restatements: None
(3) Shares outstanding (common stock)
1) Shares outstanding (including treasury stock)
As of September 30, 2022: 34,156,623
As of September 30, 2021: 34,156,623
2) Treasury shares outstanding
As of September 30, 2022: 270
As of September 30, 2021: 235
3) Average shares outstanding for the period
Year ended September 30, 2022: 34,156,378
Year ended September 30, 2021: 34,156,472
Note: Please refer to “Per Share Information” on page 21 of the supplementary materials regarding the formula used to
calculate earnings per share (consolidated).

-2-* These financial results are not audited by a certified public accountant or audit company.
* Explanation regarding the appropriate use of business performance forecasts
Forward-looking statements included in these materials, such as forecasts of business performance, are based on
information known to the Company’s management as of the time of writing, and reflect judgments believed to bereasonable on the basis of that information. There is, therefore, a possibility that actual business performance figures
will differ substantially from our forecasts as a result of changes in the economic situation and other unforeseeable
factors. Please refer to “(1) Analysis of operating results” under “1. Operating results and financial information” onpage 5 of “Attached Material.”-3-

Contents of the Attached Material
1. Operating results and financial information .......................................................................................... 5(1) Analysis of operating results .............................................................................................................. 5(2) Analysis of financial position ............................................................................................................. 6(3) Profit distribution/dividend payment for the reporting term and the current term ............................. 7
2. Management strategy ............................................................................................................................ 7(1) Basic management policies and medium- to long-term strategy ....................................................... 7(2) Numerical targets and achievements .................................................................................................. 7(3) Key issues .......................................................................................................................................... 7
3. Basic Approach to Selecting Accounting Principles ............................................................................. 7
4. Consolidated financial statements and notes......................................................................................... 8(1) Consolidated balance sheets............................................................................................................... 8(2) Consolidated statements of income and comprehensive income ..................................................... 10(3) Consolidated changes to equity........................................................................................................ 12(4) Consolidated statements of cash flows ............................................................................................. 14(5) Notes to the quarterly consolidated financial statements ................................................................. 15(Note on assumptions for going concern) ....................................................................................... 15(Changes in accounting principles) ................................................................................................. 15(Change in presentation method) .................................................................................................... 16(Additional information) ................................................................................................................. 16(Consolidated balance sheet) .......................................................................................................... 16(Segment information, etc.) ............................................................................................................ 17(Per-share information) ................................................................................................................... 21(Important subsequent events) ........................................................................................................ 21-4-

1. Operating results and financial information(1) Analysis of operating results1) Operating results for the reporting fiscal period<<Background>>During fiscal 2022 (October 1, 2021 to September 30, 2022), economic trends remained uncertain, mainly
due to the continuing impact of COVID-19, although some signs of recovery were observed.
The Group has been impacted by the COVID-19 pandemic in markets where it conducts business
operations.
In this environment, the Company is working to realize the concept of its medium-term management
plan: “Realizing steady corporate growth by securing sustainability in every Group business segment.”
As a result, net sales for the fiscal year ended September 30, 2022 came to 61,143 million yen,operating income was 10,115 million yen, ordinary income amounted to 10,406 million yen, and net
income attributable to owners of the parent came to 7,589 million yen.
<<Segment results>>(a) Cosmetics
Sales in the Cosmetics segment totaled 47,032 million yen, and segment income came to 10,814
million yen.
(b) Pharmaceuticals & Health Food
Sales in the Pharmaceuticals & Health Food segment totaled 11,408 million yen, and segment income
came to 1,157 million yen.
(c) Other
Sales in the Other segment came to 2,703 million yen, while segment income came to 381 million yen.
Note: The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),
etc. has been applied from the beginning of the fiscal year ended September 30, 2022. As a result,the accounting treatment of revenue differs from that for the previous fiscal year, so businessperformance is explained without presenting year-on-year changes. If operating results for the fiscal
year ended September 30, 2021 had been calculated based on the same standard, the year-on-yearchanges in operating results for the fiscal year ended September 30, 2022 would have been as
follows: an increase of 4.1% year on year in net sales, an increase of 16.3% year on year in operating
income and an increase of 14.2% in ordinary income.
Segment operating income (loss) represents the amount before adjustment for intersegment
eliminations and unallocated corporate expenses. For details on the segment income (loss)
adjustment, please see “3) Information concerning sales, income and loss, assets, liabilities andother item amounts in each reporting segment and revenue breakdown information (Note 1) in(Segment information)” on pages 18 and 19.
2) Forecast for the current fiscal year ending September 30, 2023
The outlook for the impact of the COVID-19 pandemic is expected to remain uncertain.
In this environment, the Company will move forward aiming to realize the concept of its medium-term
management plan: “Realizing steady corporate growth by securing sustainability in every Groupbusiness segment.” With this aim in mind, the Company’s consolidated forecast for the fiscal year
ending September 30, 2023 is for net sales of 61,600 million yen, operating income of 10,700 million
yen, ordinary income of 10,900 million yen, and net income attributable to owners of the parent of 7,700
million yen.

-5-(2) Analysis of financial position
1) Assets, liabilities and net assets
Total assets on a consolidated basis as of September 30, 2022 stood at 76,781 million yen, a decreaseof 3,667 million yen from the previous fiscal year-end. The main changes were decreases of 1,354
million yen in cash and cash equivalents, 1,349 million yen in property, plant and equipment, and 646
million yen in investment securities.
Total liabilities came to 24,397 million yen, a decrease of 3,818 million yen from the previous fiscal
year-end. This was mainly due to a decrease of 5,016 million yen in net defined benefit liability andan increase of 796 million yen in other accounts payable.
Net assets came to 52,384 million yen, an increase of 151 million yen from the previous fiscal yearend. This was primarily attributable to an increase in total accumulated other comprehensive incomeof 186 million yen.
As a result, the equity ratio stood at 67.8％, up 3.3 percentage points from the previous fiscal yearend, and net assets per share stood at 1,524.05 yen, an increase of 3.78 yen.
2) Cash flow
Cash and cash equivalents (hereinafter, “cash”) on a consolidated basis as of September 30, 2022 stoodat 29,530 million yen, a decrease of 1,310 million yen compared with the previous fiscal year-end.
The status of each cash flow together with the factors contributing to their increase or decrease for the
fiscal year ended September 30, 2022 are presented as follows.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 5,845 million yen (3,217 million yen less thanin the previous fiscal year). The main item increasing cash was 11,161 million yen in income before
income taxes, and the main item decreasing cash was a 4,056 million yen decrease in net defined
benefit asset and liability.
(Cash flows from investing activities)
Net cash used in investing activities came to 255 million yen (161 million yen less than in thecorresponding period of the previous fiscal year). The principal cash outflow was 546 million yen forpurchase of property, plant and equipment.
(Cash flows from financing activities)
Net cash used in financing activities came to 7,380 million yen (199 million yen more than in thecorresponding period of the previous fiscal year). This was mainly due to the payment of 7,166
million yen in dividends.
(Reference)Year ended
Sept. 30,
2018
62.6

Year ended
Sept. 30,
2019
63.3

Year ended
Sept. 30,
2020
64.9

Year ended
Sept. 30,
2021
64.5

Year ended
Sept. 30,
2022
67.8

Equity ratio (%)
Equity ratio
255.3
231.2
209.9
226.3
252.7
market capitalization (%)
Cash flows/
－
－
－
－
－
interest-bearing debt ratio (%)
Interest coverage ratio (times)
－
－
－
－
－
Notes:
Equity ratio = Shareholders’ equity/Total assets
Equity ratio (market capitalization) = Market capitalization/Total assets
Cash flow versus interest-bearing debt ratio = Interest-bearing debt/Operating cash flow
Interest coverage ratio = Operating cash flow/Interest expense* All figures are calculated on a consolidated basis.
* Market capitalization is calculated based on shares outstanding excluding treasury stock.
* Interest-bearing debt covers all debt (excluding lease obligations by the interest-paid inclusive method) recordedon the balance sheets for which interest is paid.
-6-

(3) Profit distribution/dividend payment for the reporting term and the current term
The Company regards profit distribution to shareholders as an important management issue.
Therefore, its basic policy is to continue to pay dividends with a focus on retuning profits toshareholders while ensuring the necessary reserves for business expansion in the medium and longterm and a stronger management structure. For fiscal 2022 (ended September 30, 2022), based on the
aforementioned policy, we plan to pay a year-end dividend of 215 yen per share, which is a 5 yen
increase from our most recent dividend forecast.
For the current fiscal year, ending September 30, 2023, we plan to pay a dividend of 215 yen per
share.
2. Management strategy(1) Basic management policies and medium- to long-term strategy
To achieve the Noevir Group’s medium-term management plan concept, “Realizing steady corporate
growth by securing sustainability in every Group business segment,” the Group will execute thefollowing five policies.
1. Pursue innovation and continuous profit generation in the domestic market
2. Enhance our brand value
3. Accelerate efforts to diversify human resources and our corporate structure
4. Strengthen our competitiveness by stepping up the diversification of our R&D, production andlogistics systems
5. Promote a management approach that is responsive to changes in the business environment(2) Numerical targets and achievements
Having positioned net sales, operating income and return on equity (ROE) as key management
indicators, the Noevir Group aims to maximize its corporate value and enhance profitability.
(3) Key issues
The outlook for the impact of the COVID-19 pandemic is expected to remain uncertain.
In this environment, to respond to change and diversification in the markets for the Group’s core
Cosmetics and Pharmaceuticals & Health Food businesses, the Group recognizes that promoting its
medium-term management plan concept, “Realizing steady corporate growth by securing
sustainability in every Group business segment” is an important priority.
3. Basic Approach to Selecting Accounting Principles
For the foreseeable future, the Group plans to prepare consolidated financial statements based on
generally accepted accounting principles in Japan. This policy takes into account factors such as the needto maintain comparability between the accounting periods of the consolidated financial statements and thefact that the Group has very little need to procure funds in overseas markets. Going forward, the Groupplans to give due consideration to the adoption of international financial reporting standards (IFRS),
taking into account conditions in Japan and overseas.

-7-

4. Consolidated financial statements and notes(1) Consolidated balance sheets
As of
September 30, 2021
ASSETS
Current assets
Cash and cash equivalents
Notes and accounts receivable
Merchandise and finished goods
Work in progress
Raw materials and purchased supplies
Other receivables
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Equipment and vehicles, net
Land
Lease assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-8-(Millions of yen)
As of
September 30, 2022

31,101
9,307
5,951
116
1,263
2,836
571
(20)
51,12829,747
8,970
6,242
140
1,467
3,391
617
(7)
50,5695,322
1,418
13,964
1,027
122
186

5,106
784
13,554928
123
195※1 22,041※1 20,692

240
70
120
431

209
119
90
418

2,779
2,705
1,382
(20)
6,847
29,32080,448

2,132
1,729
1,257
(19)
5,100
26,212
76,781As of
September 30, 2021

(Millions of yen)
As of
September 30, 2022

LIABILITIES AND NET ASSETS
Current liabilities
Notes and accounts payable
Lease obligations
Other accounts payable
Income tax payable
Reserve for bonuses

2,592
112
2,401
1,649
102

2,935
93
3,197
1,085
101

Reserve for product returns

589
1,192
8,639

－
2,239
9,653

1,000
12,415
492
5,531
136
19,57528,215912
12,001
311
514
1,003
14,74324,3977,319
43,040(1)50,357

7,319
42,982(1)
50,300

1,730
(27)
(134)
1,568
306
52,23380,448

1,278
486
(8)
1,755
328
52,38476,781

Other
Total current liabilities
Long-term liabilities
Lease obligations
Guarantee deposits received
Deferred tax liabilities
Net defined benefit liability
Other
Total long-term liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Common stock
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on other securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-9-(2) Consolidated statements of income and comprehensive income
Consolidated statements of income
Year ended
September 30, 2021
51,272
18,24133,031

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Sales commission(Millions of yen)
Year ended
September 30, 2022
61,14319,05042,093
8,180

－
3,707
6,171
92
551
13,94924,473
8,557

2,878
6,244
92
412
14,16931,977
10,115

8
17
39

10
18
103

Surrender value of insurance policies

183

Dividend income of insurance
Compensation for damages received
Other
Total
Non-operating expenses
Litigation settlement

56
5
145
455

－
22
44
92
291

Cost of sales
Salaries and bonuses
Accrued allowance for bonuses
Retirement benefits for employees
Other
Total
Operating income
Non-operating income
Interest income
Dividend income
Exchange differences

40

Other
Total
Ordinary income
Extraordinary income
Gain on sale of fixed assets
Gain on revision of retirement benefit plan
Total
Extraordinary losses
Loss on disposal of fixed assets
Impairment loss
Total
Income before income taxes
Income taxes – basic
Income taxes – deferred
Total
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent- 10 -

1
41
8,972

－
0
0
10,406

6

121

－

961

6

1,083

12

18

－

310

12
8,966
2,915
(409)
2,506
6,459
76
6,383

329
11,161
2,359
1,147
3,506
7,654
64
7,589

Consolidated statements of comprehensive income

Net income
Other comprehensive income
Net unrealized gain on other securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total
Comprehensive income(Breakdown)Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests- 11 -

Year ended
September 30, 2021
6,459(Millions of yen)
Year ended
September 30, 2022
7,654

493
207
(99)
602
7,061

(452)
572
125
245
7,900

6,954
107

7,776
123

(3) Consolidated changes to equity
Year ended (September 30, 2021)(Millions of yen)
Commonstock

Balance at beginning of the year
Changes during the reporting period
Distribution of dividends fromretained earnings
Net income attributable to ownersof the parent
Purchase of own shares
Increase (decrease) resulting fromchanges in the accounting periodof consolidated subsidiaries
Changes during the reporting
period, excluding shareholders’equityTotal changes during the period
Balance at end of the year

7,319

Shareholders’ equity
Retained
Treasury stockearnings
43,662

Total shareholders’equity(0)50,980(7,002)(7,002)

6,383

6,383
(0)

(0)

(3)

－
7,319

(621)
43,040

(3)

(0)
(1)

Accumulated other comprehensive income
Total
Net
Foreign
Remeasureaccumulated
unrealized
currency
ments ofother
gain on other translation
definedcomprehensive
securities
adjustments benefit plansincome
1,236
(203)
(35)
997
Balance at beginning of the year
Changes during the reporting
periodDistribution of dividends
from retained earnings
Net income attributable toowners of the parent
Purchase of own shares
Increase (decrease) resulting
from changes in theaccounting period of
consolidated subsidiaries
Changes during the reporting
period, excluding
493
176
(99)
570
shareholders’ equity
493
176
(99)
570
Total changes during the period
1,730
(27)
(134)
1,568
Balance at end of the year

- 12 -(622)
50,357

noncontrollinginterests

Total net
assets265

52,243(7,002)
6,383
(0)
(3)

41

612

41
306

(10)
52,233

Year ended (September 30, 2022)
Shareholders’ equity
Common stock
Balance at beginning of the year
Cumulative impact due tochanges in accounting
policies
Balance at the beginning of theyear, reflecting changes inaccounting policies
Changes during the reporting
periodDistribution of dividends
from retained earnings
Net income attributable toowners of the parent
Purchase of own shares
Changes during the reporting
period, excluding
shareholders’ equity
Total changes during the period
Balance at end of the year

7,319

Retainedearnings

Treasury stock

43,040(1)

Total
shareholders’equity50,357

(474)
7,319

－
7,319

(474)

42,565(1)

49,883(7,172)(7,172)

7,589

7,589

416
42,982

(0)

(0)

(0)
(1)

416
50,300

Accumulated other comprehensive income
Total
nonNetForeign
Remeasureaccumulated controlling
unrealized
currency
ments ofotherinterests
gain on other translation
definedcomprehensive
securities
adjustments benefit plansincomeBalance at beginning of theyear
Cumulative impact due tochanges in accounting
policies
Balance at the beginning of theyear, reflecting changes inaccounting policies
Changes during the reporting
periodDistribution of dividends
from retained earnings
Net income attributable toowners of the parent
Purchase of own shares
Changes during the reporting
period, excluding
shareholders’ equity
Total changes during the period
Balance at end of the year

1,730

(27)

(134)

1,568

306

Total net
assets52,233
(474)

1,730

(27)

(134)

1,568

306

51,758(7,172)
7,589
(0)
(452)

513

125

186

22

209

(452)
1,278

513
486

125
(8)

186
1,755

22
328

626
52,384- 13 -

(4) Consolidated statements of cash flows
Year ended
September 30, 2021
Cash flows from operating activities
Income before income taxes(Millions of yen)
Year ended
September 30, 2022

8,966
1,463

11,161
1,420
310

Increase (decrease) in reserve for bonuses

－
31
(1)
1

Increase (decrease) in reserve for product returns

116

Increase (decrease) in net defined benefit asset and liability
Increase (decrease) in accounts payable due to transition to aretirement benefit planInterest and dividends received

280－(4,056)

－

1,832

(25)
(7)
6

(28)
(43)
(103)
(961)

Increase (decrease) in trade payables

－
(47)
801
413

Surrender value of insurance policies

(183)

－
(414)
403
9,189
25
(3,370)Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

Loss (gain) on currency translation
Loss (gain) on sales of property, plant and equipment
Gain on revision of retirement benefit plan
Decrease (increase) in trade receivables
Decrease (increase) in inventories

(478)
(384)
10,95023(2,299)

Increase (decrease) in guarantee deposits
Other
SubtotalInterest and dividends received
Income tax refunded (paid)

31
(15)
(0)

(343)
(284)
282

Surrender value of insurance policies received390

Net cash provided by (used in) operating activities

9,063

－
5,845

(258)
258
(1)
(376)
20
(57)
(416)

(264)
311
(1)
(546)
312
(67)
(255)

(0)
(7,002)(66)(111)(7,181)
159
1,625
29,199(0)(7,166)(101)(112)(7,380)479(1,310)30,84116－

30,841

29,530Cash flows from investing activities
Expenditure for deposit to time deposits
Proceeds from withdrawal of time deposits
Purchase of investment securities
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
Cash dividends paid to non-controlling interests
Other
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
Increase (decrease) in cash and cash equivalents resulting fromchanges in the accounting period of consolidated subsidiaries
Cash and cash equivalents, end of year

- 14 -

(5) Notes to the quarterly consolidated financial statements(Note on assumptions for going concern)
Not applicable(Changes in accounting principles)(Application of “Accounting Standard for Revenue Recognition”, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020) (hereinafter, “Revenue Recognition Accounting Standards”), etc. from the beginning of
the fiscal year ended September 30, 2022. Under this accounting standard, the Company recognizes
revenue as the amount of consideration it expects to obtain in exchange for promised goods or services
when the control of the goods or services is transferred to customers. Moreover, the Company has applied
the alternative treatment specified in Paragraph 98 of the “Implementation Guidance on AccountingStandard for Revenue Recognition” (ASBJ Guidance No. 30, March 26, 2021) Under this alternative
treatment, the Company recognizes revenue for merchandise and products sold in Japan upon shipment
when there is a normal period of time from shipment until control of merchandise or products is transferred
to customers.
As a result, while the Company previously recognized revenue upon sales to directly contracted sales
representatives, the Company has switched to a method of recognizing this revenue upon shipment tocustomers. It has also switched to a method of recording sales commissions, which had previously been
deducted from net sales, as selling, general and administrative expenses. Moreover, some sales promotion
fees paid to customers, which had previously been recorded as selling, general and administrative expenses,
are now deducted from net sales. Furthermore, the estimated loss on product returns for sales with productreturn options had previously been recorded as reserve for product returns. For these sales, the Company
has switched to a method of recording refund liabilities for the projected product return component and forsales rebates, which had previously been recorded in estimated amounts, in accordance with rules onvariable consideration for each of these items.
In applying the Revenue Recognition Accounting Standards, etc., the Company follows the transitional
treatment set forth in the proviso of Paragraph 84 of the Revenue Recognition Accounting Standards. The
cumulative effect of retroactively applying the new accounting principles to periods prior to the beginningof the fiscal year ended September 30, 2022, has been added to or subtracted from retained earnings at the
beginning of the fiscal year ended September 30, 2022, and the new accounting principles have been
applied from the beginning balance of the fiscal year ended September 30, 2022.
As a result, for the fiscal year ended September 30, 2022, net sales increased by 7,603 million yen, costof sales decreased by 91 million yen, gross profit increased by 7,695 million yen, and selling, general andadministrative expenses increased by 7,599 million yen. Operating income, ordinary income, and income
before income taxes each increased by 95 million yen. In addition, the balance of retained earnings at the
beginning of the fiscal year ended September 30, 2022 decreased by 474 million yen.
As a result of applying the Revenue Recognition Accounting Standards, etc., reserve for product returns,
which was presented under current liabilities on the consolidated balance sheet for the previous fiscal year,
has been included in other under current liabilities as refund liabilities, from the fiscal year ended
September 30, 2022. The Company has not reclassified the consolidated financial statements for theprevious fiscal year using the new presentation method in accordance with the transitional treatment
stipulated in Paragraph 89-2 of the Revenue Recognition Accounting Standards. Furthermore, information
about breakdown of revenue from contracts with customers for the previous fiscal year has not beenpresented in accordance with the transitional treatment stipulated in Paragraph 89-3 of the “AccountingStandard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020).

- 15 -

(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019) (hereinafter, “Fair Value Measurement Accounting Standards”), etc. from the beginning of the
fiscal year ended September 30, 2022. In accordance with the transitional treatment stipulated in Paragraph
19 of the Fair Value Measurement Accounting Standards and Paragraph 44-2 of the “Accounting Standard
for Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company will apply the new
accounting policies set forth in the Fair Value Measurement Accounting Standards, etc. into the future. This
will have no effect on the consolidated financial statements.

(Change in presentation method)(Consolidated statements of income)In the fiscal year ended September 30, 2021, advertising expenses, depreciation, and research anddevelopment expenses were reported as separate items under selling, general and administrative expenses.
In the fiscal year ended September 30, 2022, they were included in other because of a decrease in theirmonetary importance. Furthermore, in the fiscal year ended September 30, 2021, compensation for damages
received was included in other under non-operating income. Due to its increased financial significance, it has
been reported as a separate item in the fiscal year ended September 30, 2022. The consolidated financial
statements for the fiscal year ended September 30, 2021 have been restated to reflect this change inpresentation method.
As a result, advertising expenses of 1,171 million yen, depreciation of 989 million yen, and research anddevelopment expenses of 1,041 million yen that were shown under selling, general and administrative
expenses in the consolidated statements of income for the fiscal year ended September 30, 2021 have been
included in other under selling, general and administrative expenses. In addition, other of 151 million yenthat was shown under non-operating income has been restated as compensation for damages received of 5
million yen and other of 145 million yen.
(Additional information)(Accounting estimates concerning the impact of the COVID-19 pandemic)
The outlook for the impact of the COVID-19 pandemic is expected to remain uncertain.
In this environment, the COVID-19 pandemic could possibly impact the Group’s accounting estimates
for the following fiscal year and beyond.
(Consolidated balance sheet)*1. Accumulated depreciation of property, plant and equipment is as follows.

Accumulated depreciation ofproperty, plant and equipment

As ofSeptember 30, 2021

(Millions of yen)
As of
September 30, 2022

29,51530,416- 16 -

(Segment information, etc.)(Segment information)
1) Reportable segments
The Company’s reportable segments are the subject of regular management review, for the purposes ofdecision-making for resource allocation and performance evaluation by the Board of Directors, in as muchas financial information relating to individual units of the Company are available.
The Group engages principally in the manufacture and marketing of cosmetics, pharmaceuticals and healthfoods, as well as operating other businesses including apparel- and aviation-related businesses.
The Group’s business activities are based on strategies tailored to the changing and diversifying market
environment.
Accordingly, the Group has the following three reportable segments, comprising business segments basedon the products handled by the Group.
The Cosmetics segment manufactures and markets cosmetics products.
In the Pharmaceuticals & Health Food segment, the Company manufactures and sells pharmaceuticals andfood products.
In the Other segment, we mainly operate apparel-businesses, purchase and sale of aircraft and vessels,
aviation-related operations, pilot training operations and others.
2) Method for calculating sales, income and loss, assets, liabilities and other item amounts in each reporting
segment
The accounting procedure for reporting business segments is largely the same as described in Basis for
Presentation of Consolidated Financial Reports, which was disclosed in the latest securities report (submitted
December 6, 2021).
Reportable segment income figures are on an operating income basis.
Internal rates of return and transfer within the Group are based on the actual market price.
As described in changes in accounting principles, the Company has applied the Revenue Recognition
Accounting Standards, etc. in the consolidated financial statements for the fiscal year ended September 30,
2022 and has changed its accounting treatment for revenue recognition. For this reason, the Company has
made the same changes to its calculation method for income or loss of business segments.
As a result of these changes, for the fiscal year ended September 30, 2022, net sales in the Cosmetics
segment increased by 6,820 million yen while segment income increased by 262 million yen; net sales in
the Pharmaceuticals & Health Food segment increased by 529 million yen while segment income decreased
by 167 million yen, and net sales in the Other segment increased by 254 million yen while segment income
increased by 0 million yen, compared to what would have been recorded under the previous method.

- 17 -

3) Information concerning sales, income and loss, assets, liabilities and other item amounts in each reporting
segment and revenue breakdown information
Consolidated results for fiscal 2021 (October 1, 2020 to September 30, 2021)

Net Sales
Sales, externalIntersegment
sales
Total
Segment income
Segment assets
Other items
Depreciation
Amortizationof goodwill
Increases ofproperty, plantand equipment
and intangible
assets(Millions of yen)Amounts included inconsolidated
statements of income(Note 2)

Cosmetics

Pharmaceuticals&
Health Food

38,325

11,117

1,828

51,272－

51,272

－

－

260

260

(260)

－

38,3259,600
53,40011,117
1,442
17,422

2,089
156
2,474

51,532
11,20073,298(260)(2,642)
7,150

51,272
8,557
80,448

947

489

59

1,496

(32)

1,463

－

－

31

31

－

31

417

114

7

539

－

539

Other

Adjustment(Note 1)

Total

(Note 1) Adjustments are as follows.
1) Intersegment eliminations totaling 804million yen and unallocated corporate expenses totaling (3,446)
million yen have been included in the segment income adjustment totaling (2,642) million yen. Corporate
expenses refer to parent company administration costs which do not come under any reportable segments.
2) The segment income adjustment is for assets of the entire Company that are not allocated to eachreportable segment. Assets of the entire Company are primarily the Company’s financial assets (cash andcash equivalents, investment securities, etc.) that do not belong to reporting segments and assets related toadministrative divisions.
3) The depreciation adjustment is for the depreciation of assets related to elimination/corporate.
4) The adjustment on the increases of property, plant and equipment and intangible assets is due tointersegment eliminations.
(Note 2) Segment income or loss refers to operating income as reported in the consolidated statements of income, after
adjustment.

- 18 -

Consolidated results for fiscal 2022 (October 1, 2021 to September 30, 2022)

Net Sales
Revenue fromcontracts withcustomers
Other revenue(Millions of yen)Amounts included inconsolidated
statements of income(Note 2)

Cosmetics

Pharmaceuticals&
Health Food

47,032

11,4082,617

61,057－61,057

－

－

85

85

－

85

Other

Total

Adjustment(Note 1)47,032
11,4082,703
61,143
61,143－
Sales, externalIntersegment
(265)
265
265
－
－
－
sales
Total
47,032
11,4082,968
61,409(265)
61,143
Segment income
10,814
1,157
381
12,353(2,238)
10,115
Segment assets
50,596
16,753
2,721
70,072
6,709
76,781Other items
Depreciation
945
471
34
1,451
(30)
1,420
Amortization
31
31
31
－
－
－
of goodwill
Increases ofproperty, plant
397
206
1
605
605
and equipment－
and intangible
assets(Note 1) Adjustments are as follows.
1) Intersegment eliminations totaling 516 million yen and unallocated corporate expenses totaling (2,754)
million yen have been included in the segment income adjustment totaling (2,238) million yen. Corporate
expenses refer to parent company administration costs which do not come under any reportable segments.
2) The segment income adjustment is for assets of the entire Company that are not allocated to eachreportable segment. Assets of the entire Company are primarily the Company’s financial assets (cash andcash equivalents, investment securities, etc.) that do not belong to reporting segments and assets related toadministrative divisions.
3) The depreciation adjustment is for the depreciation of assets related to elimination/corporate.
(Note 2) Segment income refers to operating income as reported in the consolidated statements of income, after
adjustment.

- 19 -(Impairment loss for non-current assets by reportable segment)
Previous fiscal year (October 1, 2020 to September 30, 2021)

Not applicable
Reporting fiscal year (October 1, 2021 to September 30, 2022)

Cosmetics
Impairment loss

276

Pharmaceuticals&
Health Food

(Millions of yen)
Elimination/
corporate (total)

Other

27

6

Total
310

－

(Amortization and unamortized balance of goodwill for each reportable segment)
Previous fiscal year (October 1, 2020 to September 30, 2021)(Millions of yen)
Cosmetics

Pharmaceuticals&
Health Food

Other

Elimination/
corporate (total)

Total

Balance at the end of
240
240
－
－
－
the year(Note) Amortization of goodwill is omitted because similar information is disclosed in Segment Information.
Reporting fiscal year (October 1, 2021 to September 30, 2022)(Millions of yen)
Cosmetics

Pharmaceuticals&
Health Food

Other

Elimination/
corporate (total)

Total

Balance at the end of
209
209
－
－
－
the year(Note) Amortization of goodwill is omitted because similar information is disclosed in Segment Information.

(Information about gain on bargain purchase for each reportable segment)
Not applicable- 20 -

(Per-share information)(Yen)
Year ended
September 30, 2022

Year ended
September 30, 2021
Net assets per share

1,520.27

1,524.05

Net income per share

186.88222.20Notes:

1. Diluted income per share is not disclosed since there were no potentially dilutive shares.
2. The basis for calculation of net assets per share is as follows.
Item

As of
September 30, 2021

Total net assets (millions of yen)

As of
September 30, 2022

52,23352,384

Amount deducted from total net assets (millionsof yen)306

328(Of which, non-controlling interests)

(306)

(328)

Net assets at the end of the period attributable tocommon stock (millions of yen)

51,92652,055

Number of common shares at the fiscal year-end
used for calculation of net assets per share
34,156,388(shares)
3. The basis for calculation of net income per share is as follows.
Item

Year ended
September 30, 2021

34,156,353

Year ended
September 30, 2022

Net income attributable to owners of the parent(millions of yen)

6,383

7,589

Amount not attributable to ordinary shareholders(millions of yen)－－

Net income attributable to owners of the parent(millions of yen)

6,383

7,589

Average number of common shares for the period(shares)

34,156,472

34,156,378(Important subsequent events)
Not applicable- 21 -