Noevir Holdings Co., Ltd.
Results for Fiscal 2020
(October 1, 2019 – September 30, 2020)

November 12, 2020
Noevir Holdings Co., Ltd.
Ikkou Yoshida, Director,
Management Strategy and Public & Investor Relations

Company Overview
Noevir Holdings Co., Ltd.

Ticker:4928

Date of Establishment

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

Paid-in Capital¥7,319 million

Consolidated Subsidiaries 13 subsidiaries (6 domestic / 7 international)
Employees

1,507 (Consolidated)

Number of shareholders

19,188

Outstanding Shares

34,156 thousand shares

Market Capitalization¥161.390 billion (November 11, 2020 @ ¥ 4,725)

Line of BusinessApparelbusiness
Aviation-related
business
Cosmetics

Pharmaceuticals & Health Food

Other1. Results for Fiscal 2020
2. Fiscal 2020 Segment-Based Highlights
3. Medium-Term Management Plan

4. Forecasts and Initiatives for Fiscal 2021

Fiscal 2020 Consolidated Results Summary
Maintained an operating income margin of 15.5% despite a decrease in sales and profits
due to a rebound accompanying the rise in the consumption tax and the impact of COVID-19

Fiscal 2020

Year-on-yearchangeNet sales

51,800 million yen-12.5

Operating income8,000 million yen-32.8

Operating income margin

15.5➢ Impact of rebound due to rise in consumption tax
Net sales - 600 million yen➢ Impact due to COVID-19
Net sales - 5,300 million yen-4.7pt

Maintained operating income
ratio of 15.5%

Fiscal 2020 Highlights
Net sales 51,841 million yen (down 12.5% YoY), operating income 8,060 million yen(down 32.8% YoY), ordinary income 8,242 million yen (down 32.7% YoY),
net income attributable to owners of the parent 5,618 million yen (down 22.3% YoY).

Net salesYear ended
September 30, 2020

Year ended
September 30, 2019

Millions of yen

Millions of yen

Year-on-year change
Millions of yen

Millions of yen

51,841

59,252(7,411)(12.5)

Cost of sales

18,76021,039(2,279)(10.8)

Gross profit

33,081

38,213(5,131)(13.4)

SG&A

25,02026,220(1,200)(4.6)

Operating income

8,060

11,992(3,931)(32.8)

181

255

(73)

(28.9)

8,242

12,247(4,005)(32.7)(9)(1,214)

1,204

8,233

11,033(2,800)(25.4)

2,614

3,807

(1,192)(31.2)

5,6187,226(1,608)(22.3)

Cost ratio (%)
Operating income margin (%)
Ordinary income margin (%)

36.2

35.5

0.7

15.5

20.2(4.7)

17.6

15.9

20.7(4.8)

18.0

Net income attributable to owners of the parent margin (%)

10.8

12.2

(1.4)

12.2

SG&A ratio (%)

48.3

44.3

4.0

Non-operating income/expenses

Ordinary income
Extraordinary income/loss
Income before income taxes
Income taxes
Net income attributable to owners of the parent

54,000(4.0)

9,500(15.1)

9,700(15.0)

6,600(14.9)

Trends in sales and operating income(Millions of yen)
Operating income

Net sales

54,47349,07547,2202,872
FY20115,150

FY2012

46,51648,253

7,252

7,064

FY2013

FY201449,3877,588

FY201557,82859,252

51,841

51,180

7,706

9,986

FY2016FY2017

11,343

FY2018

11,992FY20198,060

FY2020Fiscal 2020 net sales and operating income both decreased※Net sales and operating income for Fiscal 2011 are the sum value of results from Noevir Co, Ltd. for Q2 Fiscal 2011 and Noevir Holdings Co., Ltd. for Fiscal 2011.

Fiscal 2020 Monthly Net Sales in the Cosmetics Segment

98.2%
95.8%

97.2%

98.8%
89.6%

89.5%

91.5%

85.0%
71.5%

72.4%

70.8%

Stores closed
during the stateof emergency

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

May

71.2%

Stores reopened

Jun.

Jul.

Aug.

Sep.

FY2019-1,932

11,992150
Decrease in sundry
expenses

650
Decrease in activities
expenses-3,200Decrease in sales
promotion expenses

Decrease in gross profit
due to sales decreasecaused by factors other than
COVID-19

Decrease in gross profit
due to sales decrease caused by
COVID-19

Fiscal 2020 Reasons for Change in Operating Income(Millions of yen)

Factors increasing profit

Factors decreasing profit

400

Decrease in operating income of 3,932 million yen
8,060

FY 2020

Operating Income Margin

19.6%

20.2%

18.3%
15.6%

15.4%
14.6%

15.1%

15.5%

10.9%

5.9%

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

Maintained a high profit margin despite a decrease in Fiscal 2020
* The operating income margin for Fiscal 2011 was calculated from a sum of results for Noevir Co, Ltd. for Q2 Fiscal 2011 and Noevir Holdings Co., Ltd. for Fiscal 2011.

1. Results for Fiscal 2020
2. Fiscal 2020 Segment-Based Highlights
3. Medium-Term Management Plan

4. Forecasts and Initiatives for Fiscal 2021

Fiscal 2020 Segment-Based Highlights
Year ended
Year ended
September 30, 2020 September 30, 2019

Millions of yen

Millions of yen

Year-on-year change
OtherChange

Cosmetics
Net sales

38,74245,175(6,432)(14.2)

Pharmaceuticals &Health Food

Segment income

9,505

13,183(3,678)(27.9)

21.8%

Pharmaceuticals &Health Food

Net sales

51,841

Net sales

11,273

12,036

(763)

(6.3)

Segment income

1,261

1,312

(50)

(3.8)

million of yen

Cosmetics

OtherNet sales

1,825

2,041

(215)

(10.5)

Segment income

1070(60)(85.8)

Consolidated netsales

51,841

59,252(7,411)(12.5)

Cosmetics

3.5%

74.7%
Composition of net sales in Fiscal 2020

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

Pharmaceuticals &Health Food

Sales and profits decreased year on year
Nutritional supplements were steady but functional and nutritional drinks were sluggish

Other

Sales and profits decreased year on yearSales in the apparel-related business and the aviation-related business were sluggish

Fiscal 2020 Cosmetics

Year ended
September 30, 2020

Previous year

Year-on-year change

Millions of yen

Millions of yen

ChangeCosmetics

74.7%

Net sales

38,74245,175(6,432)(14.2)

Segment income

9,505

13,183(3,678)(27.9)

38,742
million of yen

Composition of net sales in Fiscal 2020

Face-to-facechannelcosmetics➢ Impact of rebound due to rise in consumption tax➢ Sales decreased year on year, mainly in existing series, due to the impact of COVID-19➢ New product Noevir NEUROGIC SERUM contributed to sales➢ Sales decreased for excel brand lineup due to COVID-19

Self-selection
cosmetics➢ Strong sales of new products in the Nameraka Honpo skincare brand, but decreased
mainly through existing series

Noevir NEUROGIC SERUM➢ Performed solidly despite decrease in sales, mainly in the NOV makeup line

Overseas andOEM businesssales➢ Overseas sales decreased due to COVID-19➢ OEM performed strongly
excel brand lineup

Fiscal 2020 Pharmaceuticals & Health FoodYear ended
September 30, 2020

Previous year

Year-on-year change

Millions of yen

Millions of yen

ChangePharmaceuticals &Health Food

Net sales

11,273

12,036(763)

(6.3)

21.8%

Segment income

1,261

1,312(50)(3.8)

million of yen➢ Sales decreased due to sluggish sales of national brand drinks in spite of solid
sales of nutritional supplements

11,273
Noevir AGARICUS HYPER EX
Composition of net sales in Fiscal 2020

➢ Profits remained on line with the previous year through efficient management ofselling, general and administrative expenses

Min Min Da Ha
functional drink brandlineup

Fiscal 2020 OtherNet sales
Segment income

Year ended
September 30, 2020

Previous year

Year-on-year change

Millions of yen

Millions of yen

Change

Other

1,825

2,041(215)(10.5)

1070(60)(85.8)➢ Sales in the apparel-related business and the aviation-related
business were sluggish due to COVID-19

3.5%
1,825
million of yen

Composition of net sales in Fiscal 2020

Balance Sheets
Millions of yen

Current assets
Cash and cash equivalents

Previous year

Year ended September 30,2020

As of September 30, 2019

As of September 30, 2020

ChangeNon-current assets
Property, plant and equipment
Buildings and structures, net
Equipment and vehicles, net
Intangible assets
Goodwill
Investments and other assets
Investment securities
Total assets

54,02130,73910,82729,30923,213
4,946
2,451
494
302
5,600
1,522
83,33050,41629,456
9,229
29,63623,023
5,628
1,631
430
271
6,181
2,064
80,052(3,605)(1,283)(1,598)
327
(190)
682
(819)
(63)
(31)
581
541
(3,277)

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

9,634
20,74913,371
30,38352,1937,319
44,87552,946
83,3307,580
20,22912,89427,80950,9807,319
43,662
52,24380,052(2,054)(520)(477)(2,574)(1,213)(1,213)(703)(3,277)

Equity ratio

63.3%

64.9%

1.7pt

Notes and accounts receivable

Previous year
Capital Expenditures
Depreciation

1,994
1,808

Year ended September 30,2020

1,456
1,668

Change(537)(140)

1. Results for Fiscal 2020
2. Fiscal 2020 Segment-Based Highlights
3. Medium-Term Management Plan4. Forecasts and Initiatives for Fiscal 2021

Medium-Term Management Plan and Forecast
Having positioned net sales, operating income and return on equity (ROE)
as key management indicators, the Noevir Group aims to maximize its
corporate value and enhance profitability.
Medium-termManagement PlanConcept

Five Policies

Realizing steady corporate growth by securing
sustainability in every Group business segment

1. Pursue innovation and continuous profit generation in thedomestic market
2. Enhance our brand value
3. Accelerate efforts to diversify human resources and ourcorporate structure
4. Strengthen our competitiveness by stepping up thediversification of our R&D, production and logistics systems
5. Promote a management approach that is responsive tochanges in the business environment

1. Results for Fiscal 2020
2. Fiscal 2020 Segment-Based Highlights
3. Medium-Term Management Plan

4. Forecasts and Initiatives for Fiscal 2021

Fiscal 2021 Forecasts
Net Sales

Operating
IncomeOrdinary
IncomeNet Income
Attributableto Owners of Parent

EPS

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Yen

Full Year Forecasts

52,500

9,000

9,200

6,300

184.45

Fiscal 2020 Results

51,841

8,060

8,242

5,618

164.48

1.3%

11.7%

11.6%

12.1%

－1st Half Forecast

25,500

4,000

4,100

1,90055.63

Fiscal 2020 1st Half Results

27,789

5,068

5,135

2,398

70.22

Change△8.2%△21.1%△20.2%△20.8%

2nd Half Forecast

27,000

5,000

5,100

4,400

128.82

Fiscal 2020 2nd Half Results

24,052

2,992

3,107

3,219

94.26

Change

12.3%

67.1%

64.1%

36.7%

ChangeFiscal 2020 Reasons for Change in Operating Income
Forecast(Millions of yen)
Factors increasing profit

Factors decreasing profit

75900

9,000

FY 2020-10
A&P on par with previousyear

Forecast increase in operating income
増益額予想
940of百万円
940 million
yen

Sundry expenses, etc.
decreased-25

Personnel expenses on
par with previous year

Increase in gross profit
due to increase in sales
and decrease in cost
rate

8,060

FY 2021
ForecastMajor initiatives
for fiscal 2021

Main Measures in the Cosmetics Segment

Strive for improved profitability as a core business

Face-to-facechannelcosmetics

Expand customer contact points in e-commerceand online based on face-to-face sales

Self-selection
cosmetics

Present products timely with an understanding ofcustomers’ needs

Major initiatives
for fiscal 2021

Cosmetics

Face-to-face channel
cosmetics

NoevirFocus on based on face-to face sales

Sales outlets conduct NOEVIR Beauty Studios salons➢ Improve service quality, focus on sales➢ Roll out to about 1,900 stores nationwide,
focusing on regional areas

Directly-managed NOEVIR Style and NOEVIR SALON DE SPECIALE stores➢ Strengthen Customer Attraction andProfitability➢ NOEVIR SALON DE SPECIALE Ikebukuro
Opened in October 2020
➢ Roll out 10 stores, mainly in major cities

Major initiatives
for fiscal 2021

Cosmetics

Face-to-face channel
cosmetics

NoevirPromote use of e-commerce and online sales➢ Dedicated online ordering system for sales outlets
Promote use of NOEVIR Support➢ Beauty education for sales outlets
New product briefings and makeup training online➢ Customer service
Online counseling sales

Online makeup training for sales outlets

Major initiatives
for fiscal 2021

Cosmetics

Face-to-face channel
cosmetics

NoevirSell and focus on sales expansion of new products

A Noevir First

Wrinkle serum
Noevir WRINKLE SERUM
28,000 yen (tax exclusive)
On sale December 5, 2020

Major initiatives
for fiscal 2021

Cosmetics

Self-selection
cosmetics

excel brandSell and focus on sales expansion of attractive new products

Official excel brand lineup Instagram accountLive streaming of new product releases(for image purposes)

excel brand lineup image model
In-store display (for image purposes)

Major initiatives
for fiscal 2021

Cosmetics

Self-selection
cosmetics

Nameraka Honpo skincare brand
Acquire a wide array of customers and further expand earnings

Brightening skincare line

Wrinkle skincare line

Moisture skincare Line

Haritsuya skincare Line* Suppresses generation of melanin, prevents blemishes and freckles

Major initiatives
for fiscal 2021

Cosmetics

Self-selectioncosmetics

NOV L&W skincare line
(High moisturization aging care for sensitive skin)

NOV brand
Focus on Expanding Sales of Mainstay Series

NOV Ⅲ skincare line

NOV AC ACTIVE skincare line

(Skincare for sensitive and dry skin)(Proactive skincare for adult acne)

Strengthen expansion of sales to medical institutions (dermatologists, etc.), dispensing pharmacies,
specialty goods stores and drug stores throughout Japan

Major initiatives
for fiscal 2021

Pharmaceuticals & Health Food

➢ Launch distinctive new products centered on functional and nutritional
drinks and increase profitability by strengthening cost control➢ Strengthen orders for private brands, OEM

Pharmaceuticals

Aim to increase earnings by capturing
new customers through launch of special
products and new products, etc.

Health Food

Deploy promotions using internet andsocial media

Major initiatives
for fiscal 2021

Other

➢ Improve Profitability

Apparel business

Launch new products

Aviation-related businessContinue responding
carefullyReturn on Equity

14.1
13.8
12.3

10.7
8.9

8.9

9.2

8.0%

5.5

2.2

FY 2011

FY 2012FY 2013

FY 2014

FY 2015

FY 2016

FY 2017

FY 2018

FY 2019

FY 2020

Enhance profitability through efficient management* ROE for Fiscal 2011 was calculated from the sum of net income attributable to owners of the parent of Noevir Co, Ltd. for Q2 Fiscal 2011 and Noevir Holdings Co., Ltd. for Fiscal 2011.

Dividend and Dividend Payout Ratio
200 yenDividend

205 yen 205 yen

180 yenDividend payout ratio
150 yen129.5
120 yen100 yen

36 yenFY 201140 yen50 yen54.5

40.9

FY 2012FY 2013

124.6

73.1

111.1

94.5

84.2

60 yen75.1

78.8

FY 2017

FY 2018

51.7

FY 2014

FY 2015

FY 2016

FY 2019

FY 2020

FY 2021（Forecast）
forecast

Continue stable shareholder return by maximizing corporate value
and enhancing profitability* Dividend payout ratio for Fiscal 2011 was calculated from the sum of net income attributable to owners of the parent of Noevir Co, Ltd. for Q2 Fiscal 2011 and Noevir Holdings Co., Ltd. for Fiscal 2011.

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