COMPANY RESEARCH AND ANALYSIS REPORT

Kitanotatsujin Corporation
2930
Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
FISCO Ltd. Analyst

Ikuo Shibata

FISCO Ltd.
http://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01■Company profile---------------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. Business description. . ..................................................................................................................................

03

2. History................................................... ......................................................................................................

05■Company features----------------------------------------------------------------------------------------------------------------------------------------------------- 06
1. Overwhelmingly strong product appeal.. ......................................................................................................

06

2. Stability from regular purchases. . ........... ......................................................................................................

07

3. Effective marketing methods.. ................ ......................................................................................................

07■Financial highlights-------------------------------------------------------------------------------------------------------------------------------------------------- 08
1. Trends in past results............................. ......................................................................................................

08

2. FY2/20 financial highlights..................... ......................................................................................................

09■Topics and recognition of issues---------------------------------------------------------------------------------------------------------------- 11
1. Main topics..................................................................................................................................................

11

2. Recognition of issues. . .................................................................................................................................

12■Outlook-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 13■Growth strategy----------------------------------------------------------------------------------------------------------------------------------------------------------- 14■Shareholder returns------------------------------------------------------------------------------------------------------------------------------------------------- 15

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/█ SummaryIn FY2/20 sales and profits increased, driven by the “injecting
cosmetics” series being a big hit
The Company has positioned FY2/21 as a year for rebuilding
the organization with expectations for a temporary decrease inoperating results
Kitanotatsujin Corporation <2930> (hereafter, also “the Company”) conducts an e-commerce (EC) business foronline sales of health foods and cosmetics to general consumers. On the J North Farm (Kitano-Kaitekikobo) website,which is its original brand, it focuses on the development and sales of products that specialize in supporting bodily
problems, such as constipation, atopy, and acne. In particular, KAITEKI OLIGO, which uses oligosaccharide as araw material, has been driving the Company’s growth. Recently, there has been significant growth in the major hit“injecting cosmetics” series, and the percentage of sales from basic skin care products is increasing compared toin the past, when sales were centered on health foods, and with this the breadth of membership has expanded toinclude middle-aged and elderly men who are interested in anti-aging solutions.
In the FY2/20 results, sales and profits grew, with net sales increasing 21.4% year-on-year (YoY) to ¥10,093mn andoperating profit rising 56.6% to ¥2,915mn, renewing record highs, with net sales surpassing ¥10,000mn. However,while net sales fell short of initial forecasts, profits exceeded forecasts. The “injecting cosmetics” series has beena big hit, which contributed to the increase in sales. In particular, sales of HYALO DEEP PATCH have grown at afaster-than-expected pace, and now has a larger presence in the sales mix by product. Moreover, two newly released
products in the “injecting cosmetics” series have made a strong start. However, the reasons that net sales undercut
the forecast were 1) production of the explosive hit product HYALO DEEP PATCH could not keep pace with demand,
resulting in shipping delays (although these were completely cleared in by December 2019), and 2) there was a lullin growth in new customer acquisitions during the second half of the fiscal year. Meanwhile, profits exceeded theforecast due to the fact that the Company temporarily curbed advertising expenditure following shipping delays of
HYALO DEEP PATCH. This should also be seen as a temporary factor. In addition, issues remain due to factors suchas a lull in growth in new customer acquisitions and delays in the release of new products.
The Company’s earnings forecast for FY2/21 is for lower sales and profits, with net sales forecast to decrease 18.5%
YoY to ¥8,227mn and operating profit to decrease 31.2% to ¥2,006mn, mainly due to rebuilding the organization
structure. As in FY2/20, growth in the “injecting cosmetics” series and continued demand for other mainstay
products can be expected; however, the Company is forecasting a temporary decrease in earnings having positioned
FY2/21 as a “year for rebuilding the organization structure,” with a view to long-term growth. In other words, tohelp solve issues that have been shown up in FY2/20, the Company intends to strengthen its creative divisions andstrengthen its product development division, but the forecast is based on conservative assumptions that do notincorporate the impacts of eliminating the two issues of the lull in growth in new customer acquisitions and delaysin the release of new products and sales of new products.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
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Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Summary

Up until now, the Company has operated a business with high profit margins by developing multiple products inrelatively uncontested niche markets where each product is worth between ¥1.0-2.0bn, aiming for a total businessscale of around ¥10bn. As a result, in FY2/20, net sales surpassed ¥10.0bn and the Company also maintained ahigh operating margin. In addition, by acquiring the expertise to operate products at around the ¥5.0bn level with ahigh profit margin, the Company is now placed to develop multiple products at a scale of ¥5.0-10.0bn in large-scalemass markets going forward, and has laid out a strategy aiming to achieve net sales of ¥100.0bn and operating profitof ¥30.0 bin in the future. Specifically, in addition to creating new markets, such as the “injecting cosmetics” series,
the Company seems also to be envisaging categories with large markets, such as all-in-one gel and shampoo. On
the other hand, in terms of overseas development, the Company is eyeing further expansion, such as growth of
the Taiwan business, which has already become profitable, and has adopted a policy of promoting specialization
in internet sales, which are easy to roll-out horizontally. From our point of view, assuming annual growth of 30%
continues over the long-term (10 years), net sales are at a level that can certainly reach ¥100.0bn, and we consider
the Company to have this potential. In addition, by utilizing the economies of scale, the Company’s strategy could
also involve large-scale M&As led by the Company, which could accelerate the pace of its expansion. How the
Company will go about evolving without losing its distinctive character is an area for demonstrating the skill ofmanagement.
Key Points
In FY2/20 sales and profits increased, driven by the “injecting cosmetics” series being a big hit (record highresults)• On the other hand, a lull in new customer acquisitions and delays in new product releases have been shown up
as issues to be addressed• The Company has positioned FY2/21 as a year for rebuilding the organization structure in preparation for the
next stage, and is therefore expected to experience temporary decreases in sales and profits• In the large-scale mass market, the Company aims to develop multiple products with individual scales in therange of ¥5.0bn to ¥10.0bn, aiming to be a company with net sales of ¥100.0bn and operating profit of ¥30.0bn
in the future•

Results trends
Net sales (left)

Operating profit (right)

（¥mn）

（¥mn）

2,915

12,0003,000

10,000

2,500
2,006

1,861
8,000

2,000
1,403

6,000

1,500

10,093
8,312

4,000
2,000

542

387

459

397

1,782

1,940

2,222

2,696

FY2/14

FY2/15

FY2/16

FY2/17

8,227

5,292

1,000
500

0

0

FY2/18

FY2/19FY2/20 FY2/21E

Source: Prepared by FISCO from the Company’s financial results

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
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Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/█ Company profile
Conducts an e-commerce business through J North Farm, its
original brand1. Business description
The Company conducts online sales of health and beauty products, etc., to general consumers. On the J North
Farm website, which is its original brand, it focuses on the development and sales of products that specialize insupporting health and beauty problems. In particular, KAITEKI OLIGO, which uses oligosaccharide as a raw material,has been driving the Company’s growth so far. In addition, the hit product HYALO DEEP PATCH, the first productin the “injecting cosmetics” series, has seen a significant increase in sales. Recently, the percentage of sales frombasic skin care products is increasing compared to in the past, when sales were centered on health foods, andwith this the breadth of membership has expanded to include middle-aged and elderly men who are interested inanti-aging solutions.
KAITEKI OLIGO is a highly pure, high quality food with functional claims (the details are given below, it is effective forconstipation) created by compounding several types of oligosaccharide, including sugar beet produced in Hokkaido,
as the main ingredients. In addition, the Company handles 31 products that meet purchasers’ specific needs (as ofthe end of February 2020), including HYALO DEEP PATCH, which concentrates and replenishes moisture by using
micro-sized needles of hyaluronic acid to reach the deep parts of fine wrinkles around the eyes; EYE KIRARA, which
is a cream to improve bags under the eyes; and CLEAR NAIL SHOT α, which is a penetrating, specialized nail careproduct that contributes to beautiful and healthy nails.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Company profile

Product overview (in order of launch)
Item

Description

KAITEKI OLIGOJapan’s first “food with functional claims” with 5 ingredients to improve bowel movements is a high-purity, high-quality
oligosaccharide food effective for improving constipation

KOJUKANThe Company’s first food with functional claims, with low-molecular weight lychee polyphenol as the main ingredient,
to which is added ingredients including hyaluronic acid, vitamin C and L-citrulline

MINNANO HADAJUNTO ~ATO CARE TYPE ~A moisturizing-care product that is 100% derived from plants, with the main ingredient being sugars made from sugar
beet produced in Hokkaido

KAITEKI DOKA SLIM CHA

A health food formulated using a unique blend of natural herbs developed by thoroughly studying the peristaltic
motion of the intestines

20NEN HOIPPU

A facial cleanser to improve facial skin dullness that uses a proprietary manufacturing method called direct flame pot
kneading and that adds whey to the ingredients as the moisturizing compound

MINNANO HADAJUNTO ~CLEAR TYPE ~An acne-prevention skin care product coated with plant oils, including lavender and peppermint, and which uses
sugars made from sugar beet produced in Hokkaido as the main ingredient

EZOSHIKI SU-SUCHA

A health food independently developed by the Company which blends three types of tea leaves in a perfect balance—
bamboo grass that has been used as a herbal remedy in Hokkaido since the olden days, red perilla, and tencha(tea leaves) of the rose family. The product suppresses allergy symptoms, including sneezing, runny nose, and nasal
congestion

KITANO DAICHINOYUMESHIZUKU

A food with functional claims that increases sleep-promoting hormones and boosts sleep quality

ZUKI SHIRAZUNO MI

A health food formulated from feverfew, giant knotweed, and bittern (magnesium chloride)

MINNANO HADAJUNLOTIONA lotion formulated from humidity-retention components, such as lipidurea, squalene, and ceramide, and whose main
ingredient is sugars made from sugar beet produced in Hokkaido

MINNANO HADAJUNBURO

A moisture-sealing, moisture-care bath additive formulated from sugars made from sugar beet produced in Hokkaido,
and also other ingredients including extracts from natural deposits at hot springs and sea buckthorn.

EYE KIRARA

A cream that improves bags under the eyes. It is formulated from ingredients including MGA, which is one type ofvitamin C-derivative that supports collagen, and plant oils rich in natural vitamin K that help to make the blood flowsmoothly

CLEAR FOOT VEIL

A barrier-type foot care product for use specifically by people with constantly itchy feet

NO ! NO ! SMELL !

A medicated deodorant foot cream that addresses existing issues with foot odor while also treating skin conditions tomake it difficult for odor to reappear.

KUROUMEBIYORI

A health food that leads to a life without concerns through normalizing the body and protecting it from the inside

CLEAR NAIL SHOT α

A penetrating, specialized nail care product that deeply penetrates the nail to the source of problems, which leads tobeautiful and healthy nails

CARE NANO PACK

A sleeping pack that leads to tightened pores that do not stand out

HYALO DEEP PATCH(The first product in the“injecting cosmetics” series)

A premium, night-care product, in which micro-sized needles of hyaluronic acid reach the deep parts of the finewrinkles around the eyes, concentrating and replenishing moisture

MAYME WHITE 60

A fast-acting skin whitening cream that leads to ideal whitening in 60 seconds with rapid-action whitening and a
deep-layer approach

LUMINAPEELA hand peeling gel developed to solve problems with aging hands that are susceptible to UV-related damage

WRINKY FLAT

A fast-acting, anti-wrinkle beauty gel that stretches wrinkles and leads to younger looking skin in just one minute after
it is applied

LID KIRARA

A beauty gel exclusively for the upper eyelids that returns skin to its original condition by thoroughly tightening theupper eyelid skin. It has a fast-acting effect with the skin tightening immediately after application, and a continuity
effect, with the foundation being raised by its continuous use

BUILD MAKE 24

A hybrid protein formulated from 1,750 mg of HMB per single serving that focuses on making body conditioning
extremely efficient

RIMO SAVON

A laundry detergent that coats clothing fibers in the Company’s proprietary coating compound with each wash,
which makes it difficult for pet hairs to stick to clothes, and if they do stick, enables them to be easily removed. The
Company’s first product to be classified in miscellaneous goods

HANDPURENA

A care cream for aging hands, with a concentrated approach to hand skin that makes the skin feel soft when it is used

NECK ESTHE MIST

An aging-care mist for the neck, which uses a mist to bring tightness and firmness to signs of aging on the neckMEN’s EYE KIRARA

Eye-shot cream for under the eyes made to suit men’s skin texture

OKOSAMAYOU KAITEKI
ORIGO

A powdered oligosaccharide food blended with oligosaccharides made to suit the balance of bifidobacteria inchildren’s intestines

MIKEN DEEP PATCH(The second product in the“injecting cosmetics” series)

An anti-aging cosmetic product specifically for eyebrows that softens hardened skin and leads to younger looking skinby injecting a needle with condensed hyaluronic acid and other beauty ingredients directly between the eyebrows.

ODEKO DEEP PATCH(The third product in the“injecting cosmetics” series)

An anti-aging cosmetic product specifically for the forehead that leads to firm and glossy skin by injecting a needle
with condensed hyaluronic acid and other beauty ingredients directly into forehead indentations to directly deliver the
beauty ingredients to the keratin layer.

ASESU CARE

This specialized supplement for men provides an internal approach to addressing perspiration issues. The
combination of five components that support autonomous functions are designed to address unique aspects of male
physiology, and also help to control odor.

Source: Prepared by FISCO from securities reports and press releases

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Company profile

The Company itself does not have production bases for its products and it mainly consigns production to its OEM
partners (a method where a company purchases raw materials and consigns the manufacturing process externally).
On the other hand, at the end of December 2015 it established a Taiwan branch office as a base for strengthening
online sales in local markets in Asia, followed in January 2019 by the establishment of the South Korean liaison
office to promote consigned production to overseas companies.
2. History
The Company was established in May 2002 as Hokkaido dot See Oh dot Jay Pee KK by current Representative
Director & President Katsuhisa Kinoshita (in March 2009, the Company name was changed to the current name of
Kitanotatsujin Corporation). However, the history of its establishment goes back to May 2000, when Mr. Kinoshita,
who had worked at Recruit Holdings <6098>, aimed to expand the e-commerce market and launched the EC
website “Hokkaidou.co.jp.,” which marked the start of online sales of specially produced Hokkaido foods.
The first turning point was in July 2007 when, with the aim of differentiating itself in a situation of an increasing
number of competing EC websites, the Company established the Kaiteki Friend Club site (currently, J North Farm)as a site for comprehensive sales of health and beauty products. In addition, in September of the same year, itestablished Hokkaido Wakeari Ichiba as a website specializing in outlet (non-standard product) food sales. In
particular, Hokkaido Wakeari Ichiba, which was rare among websites at that time, was featured on many mass
media outlets, garnering a lot of attention. However, as this business was comparatively easy to imitate, the morethat it attracted attention, the more that competition intensified.
The second turning point was when the Company decided to compete by using overwhelming superior productquality and functions that other companies could not easily imitate. It transferred management of the Hokkaidou.
co.jp. and Hokkaido Wakeari Ichiba businesses, and at the same time, pivoted to the development and sales ofhealth and beauty products through the Company’s own brand, J North Farm. During this period, KAITEKI OLIGO
became a hit product, and it has continued to achieve high growth at the same time as the Company has worked
to steadily expand the base of regular-purchase members. In May 2012, it was listed on the Sapporo Securities
Exchange (SSE) Ambitious market, and then in March 2013, its listing was upgraded to the SSE’s main market.
Moreover, in November 2014, it was additionally listed on the Tokyo Stock Exchange (TSE) Second Section, andthen on November 24, 2015, its listing was upgraded to the TSE First Section. So it achieved an upgrade to a newlisting market for four consecutive years.
Subsequently, the Company established the Taiwan Branch Office (the end of December 2015), and started bolstering the organization, including the product development system and customer acquisition system (introduced
an automated advertisement system, etc.). In addition, the Company established the South Korea Liaison Office(January 2019), relocated the Head Office (March 2019), opened the Tokyo Branch Office (April 2019), and otheroffices worked to create a business foundation targeting accelerated growth.
Meanwhile, in terms of external evaluations of the Company, in September 2015 in EY Entrepreneurs of the Year
Japan*1, which is a part of an international scheme to recognize entrepreneurship, Mr. Kinoshita was elected as
the representative of the Hokkaido block. In February 2017, Mr. Kinoshita was awarded the Special E-Commerce
Promotion Award at the Japan Venture Awards 2017*2 hosted by the Organization for Small & Medium Enterprises
and Regional Innovation, JAPAN (sponsors: The Small and Medium Enterprises Agency, METI, etc.)*1	An international awards system that honors the efforts and achievements of entrepreneurs who take on challenges in new
business areas. In Japan, it started in 2001 as EY Entrepreneurs of the Year Japan, and each year it honors entrepreneurs
selected from all over the country.
*2	A system that honors managers in high-minded venture companies that manage businesses which are innovative, havehigh growth potential, and contribute to the revitalization of regions.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Company profile

More recently, aspects such as the Company’s profitability and growth potential have been positively evaluated in
the media on a number of occasions. For example, in Forbes Asia, the regional Asia version of the U.S. economic
magazine Forbes (the July/August 2019 issue), it was selected among “Asia’s 200 Best Under a Billion,” which
are its selection of 200 excellent companies with sales of less than U.S.$1 billion in the Asian Pacific region (third
selection). In addition, in the national edition of NIKKEI dated July 9, 2019, the Company was included in the“NEXT1000,” which included medium-sized listed companies with high average ROE over the past three years,
having a three-year average ROE of 40.8%. Most recently, the Company received the Internet Shopping Award at
the Asia Direct Marketing Summit 2019, and in an article published in the October 4, 2019 edition of Toyo Keizai
Online entitled “Must See for Investors! Executive Rankings as Evaluated by the Market,” Representative Director &President Katsuhisa Kinoshita was selected as the top executive.
On August 7, 2019, it was selected as a constituent stock of the JPX-Nikkei Mid and Small Cap Index* for two
consecutive years (applied on August 31, 2019).
*	A stock index jointly calculated by Tokyo Stock Exchange Inc. and Nikkei Inc. JPX Nikkei Index 400 introduces the conceptof selecting companies that have high investment appeal to investors as its constituent stocks. The JPX-Nikkei Mid andSmall Cap Index applies the same concept to select mid and small cap stocks of companies that efficiently utilize capitaland conduct management with investors in mind. In addition, the index aims to spread and promote the awareness ofinvestment appeal to a wide range of companies. (From the JPX Japan Stock Exchange Group website)█ Company features
Strengths include regularly purchased products with high customer
satisfaction and effective marketing
1. Overwhelmingly strong product appeal
The reason for the Company’s growth so far is because it has used the overwhelming appeal of its products to
expand its base of highly loyal customers. It has launched a series of hit products by specializing in providing
consumers with support for the body-related problems that they find most concerning, and at the same time, by
maximizing customer satisfaction through a product-development concept that prioritizes quality above all and thatprovides thorough follow-up services. Although they do not stand out in comparison to the major growth of theresults of the long-running mainstay products, including KAITEKI OLIGO, or of HYALO DEEP PATCH, the first productin the “injecting cosmetics series” which is currently a big hit, each of the products are supported by long-term
demand and positioned as the top product in their respective niche market. These products have also won numerous
awards*, mainly in the food field, such as by Monde Selection, an international rating organization that reviews thequality of products. These awards can be said to indicate the strength of the Company’s product capabilities.
*	In Monde Selection 2019, all of the Company’s products that were evaluated won awards. In particular, KAITEKI OLIGO
won the Grand Gold Award for the eighth consecutive year, Minna no Hadajuntou (After Care Type) won it for the seventh
consecutive year, and Minna no Hadajuntou (Clear Type) for the fifth consecutive year. Also, 20NEN HOIPPU won the Gold
Award for the seventh consecutive year, EYE KIRARA for the fourth consecutive year, HYALO DEEP PATCH and CLEAR
NAIL SHOT α for the third consecutive year. In addition, HANDPURENA, MEN’s EYE KIRARA, and KAITEKI OLIGO for
Children were each awarded the Gold Award for the first time.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Company features

The key to creating hit products that are supported by consumers is highly accurate test marketing. From among
the many candidates, it selects those whose effects are easily experienced and that are likely to be purchased
repeatedly. In addition, its consistent policy has been to only launch a product that is highly likely to sell well basedon the results of a monitor survey of a prototype product.
2. Stability from regular purchases
The same as other EC businesses, the Company has a growth model in which the expansion of the membershipbase drives results. But in the case of the Company, in addition to the fact that the products are premised on
their continuous use, its customer base is composed of highly loyal members who suffer from pressing problems.
Therefore, a feature of its business is that the rate of regular purchases* is high, which gives it management stability.
Moreover, until now it has followed a strategy of aiming for multiple products that are top of their niche market(¥1.0bn to ¥2.0bn per product), but going forward the Company intends to develop in the large-scale mass market(¥5.0bn to ¥10.0bn per product). However, it still does not intend to pursue an explosive growth in results (a boom)
that tends to be temporary, and rather to steadily capture long-term demand in each of these respective markets
at the same time as aiming to achieve stable results growth by diversifying risk.
*	Regular purchases account for approximately 70% of net sales.

3. Effective marketing methods
Another feature of the Company is a marketing method using detailed data analysis. After conducting multiple typesof sales tests at each stage, such as for markets, products, advertisements, and webpages, and comparing andanalyzing the results, it finds the definite “winning pattern” and only then starts fully fledged sales. Particularly withregards to advertising investment, an important policy for an EC business is that it directly links it to sales, but theCompany judges this only after measuring the advertisement-investment effects for each media up to the level ofcustomers’ lifetime value. Therefore, even if member numbers and net sales are expected to temporarily increase
due to investments in advertising, that investment may be foregone depending on assumptions for retention rate
after the fact. Amidst this background is the Company’s approach of thoroughly prioritizing profits, and it also reflects
its high profit margin. Recently, it has been working on further improvements in efficiency and accuracy throughits in-house advertising system starting operations, the introduction of B1*1 tools and combinations with RPA*2.
*1	A system that collects, analyzes, and processes the information accumulated in the various information systems in the
Company, and converts it into useful information to assist in the investigation of business strategies and quick decision
making.
*2	Abbreviation of Robotic Process Automation. It refers to the use of robots (cognitive technologies, such as artificial
intelligence) to automate operations.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
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Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/█ Financial highlights
Increasing the number of regular-purchase members and realizing
strong growth through active and appropriate investments inadvertising (operation)
1. Trends in past results
Looking back on the Company’s past results, they have grown alongside the increase in the number of regular-purchase members, while the growth since FY2/13 has been particularly large. This was because up to that time theresults’ dependence on KAITEKI OLIGO had been high, but from then on, the Minna no Hadajuntou series and
20NEN HOIPPU became established as new main products, and new products like EYE KIRARA contributed to thegrowth in results. In addition, the “injecting cosmetics” series is currently seeing a large increase in sales. Therefore,
it can be said that while lowering its dependence on KAITEKI OLIGO, the extension of new earnings pillars has
enabled balanced growth.
In profits also, alongside the growth in sales from the effective investment in advertising expenses, the operating
margin had risen to the high level of above 25%. In FY2/19, the operating margin dropped to 22.4% at one point;
however, this was due to strategically making investments in advertising at a higher level than planned to avoid
opportunity losses and increase new customer acquisitions. Conversely, for FY2/20, the Company consciously
suppressed advertising expenditure, and the operating margin increased significantly to 28.9%. Temporary factors
have probably had a major impact in this. (Details are given below.)
Meanwhile, the equity ratio, which is an indicator of financial stability, reached the high level of 86.5% in FY2/16 througha capital increase from a public offering and the accumulation of retained earnings. It fell in FY2/17 to 67.4% at one
point in order to secure liquidity from cash on hand through long-term borrowing, but it has been rising again since then.
In addition, ROE (return on equity), which is an indicator of capital efficiency, has been around the 50% level recently,
supported by the Company’s high profitability, and its financial condition can be evaluated as being extremely good.

Trends in the equity ratio and ROE
Equity ratio

ROE

100.0%
86.5%
73.8%

80.0%

67.4%

67.3%

69.4%

48.8%

48.9%

FY2/18

FY2/19

58.8%
60.0%

40.0%

54.2%

50.0%

35.3%

73.7%

36.7%
27.9%

24.8%
18.0%

20.0%

0.0%

FY2/13

FY2/14

FY2/15

FY2/16

FY2/17

FY2/20Source: Prepared by FISCO from the Company materials

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Financial highlights

For the cash flow situation also, a feature of the Company’s business is that a large amount of capital investment is
not required and investment cash flow falls within the range of its abundant operating cash flow, so the balance of
cash and cash equivalents at the end of the fiscal period has accumulated significantly. In FY2/16, operating cash
flow temporarily declined, but this was due to inventory investment alongside the growth in net sales, in addition toinvestment in advertising and publicity expenses and upfront investment with an eye to the future. Since FY2/17,
it has one again trended significantly positively. Therefore, going forward it seems that an issue will be how the
Company will use its solid financial base and abundant operating cash flow to realize further growth.

Trends in operating cash flow, investment cash flow,
and the balance of cash and deposits at period end
Operating cash flow (left)
Investment cash flow (left)
Balance of cash and deposits at the period end (right)

（¥mn）
2,200
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
-200

（¥mn）
4,088

1,153
859

748
168

295

284

-8

-30

-63

FY2/13

FY2/14

FY2/15

4,400
4,000
3,600
3,200
2,687
2,508
2,800
2,400
2,142
1,756
2,000
1,600
931
1,200
1,193
1,035
800
637
400
0
0
-2
-12
-38
-100 -400-184
FY2/16 FY2/17 FY2/18 FY2/19 FY2/20

Source: Prepared by FISCO from Company materials

2. FY2/20 financial highlights
In the FY2/20 results, sales and profits increased significantly, with net sales rising 21.4% YoY to ¥10,093mn,
operating profit growing 56.6% to ¥2,915mn, ordinary profit climbing 57.1% to ¥2,923mn, and net profit increasing
52.7% to ¥1,974mn. As net sales and operating profit both reached new record highs, net sales also exceeded¥10,000mn. However, while net sales were below the initial forecast, profits were above forecast.
The “injecting cosmetics” series has been a big hit, which contributed to the increase in sales. In particular, sales of
HYALO DEEP PATCH have grown at a faster-than-expected pace, and now has a larger presence in the sales mix
by product. The newly released MIKEN DEEP PATCH (second product released in July 2019) and the ODEKO DEEP
PATCH (third product released in September 2019) also achieved a strong start. However, the reasons that net sales
undercut the forecast were 1) production of the explosive hit product HYALO DEEP PATCH could not keep pace withdemand, resulting in shipping delays (although these were completely cleared in by December 2019), and 2) there
was a lull in growth in new customer acquisitions during the second half of the fiscal year (details are given below).

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09 15

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Financial highlights

Meanwhile, with regards to profits, the costs ratio deteriorated slightly due to the changes in the product mix* 1, while
SG&A expenses also increased in conjunction with the bolstering of the system (increase in personnel and Head
Office relocation, etc.). Despite this, the Company posted a significant increase in operating profit due to the increasein net sales. The operating margin also increased significantly to 28.9% (22.4% in the previous fiscal year). However,operating profit exceeded the forecast mainly due to the fact that the Company temporarily curbed advertisingexpenses following shipping delays*2 of HYALO DEEP PATCH, which should also be seen as a temporary factor.
*1	The “injecting cosmetics” series has a relatively high cost ratio*2	Other factors behind the upturn in operating profit include the Company curbing investments in advertising for new
customer acquisitions as a result of 1) reallocation of resources from the customer acquisition department for use instructural upgrades for the future and 2) an improvement in indicators showing the efficiency of advertising investments,
both occurring in the first half of the fiscal year. However, the factor in 2) also requires examination in terms of causing aloss of opportunity for new customer acquisitions as a delay in quantification could have caused the Company to missthe optimal timing for expanding investment in advertising.

For the Company’s financial condition, total assets were up 39.2% on the end of the previous fiscal year to ¥5,902mn,
mainly due to a significant increase in cash and deposits associated with growth in net sales and an increase inproperty, plant and equipment associated with the Company’s Head Office relocation. The equity ratio rose to 73.7%(compared to 69.4% at the end of the previous fiscal year), because shareholders’ equity significantly increased
47.8% YoY to ¥4,347mn due to the accumulation of retained earnings. ROE, an indicator of capital efficiency, also
maintained an extremely high level at 54.2% (48.9% in the previous fiscal year), as the Company maintained its
financial base in an excellent condition.
FY2/20 financial highlights(¥mn)
FY2/19Results

FY2/20% of
total

Results

Change% oftotal

FY2/20

Amount%changeInitialforecast

Difference

% of
total

AmountAchievement
rate
92.3%

Net sales

8,312

-

10,093

-

1,780

21.4%

10,939--846

Cost of sales

1,852

22.3%

2,449

24.3%

596

32.2%

-

-

-

SG&A expenses

4,590

55.2%

4,730

46.9%

139

3.0%

-

-

-

Operating profit

1,861

22.4%

2,915

28.9%

1,053

56.6%

2,702

24.7%

212

107.9%

Ordinary profit

1,861

22.4%

2,923

29.0%

1,062

57.1%

2,703

24.7%

220

108.1%Net profit

1,293

15.6%

1,974

19.6%

681

52.7%

1,890

17.3%

84

104.4%

Source: Prepared by FISCO from the Company’s financial results

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10 15

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/█ Topics and recognition of issues
The “injecting cosmetics” series performed strongly, but issues formoving to the next stage have also shown up
1. Main topics(1) The “injecting cosmetics” series is a major hit
In FY2/20, HYALO DEEP PATCH (released September 2016) drove earnings growth as its sales expanded evenfaster than expected, drawing attention as an “injectable cosmetic” and becoming a major hit. Furthermore, theCompany released another two products in the “injectable cosmetic” series. Of these, MIKEN PATCH, a cosmetic
product specifically for the area between the eyebrows (released on July 9) achieved cumulative sales exceeding
20,000 units since its launch and sales in the first month of launch set a new record high for the Company’s
newly launched product. Furthermore, the ODEKO DEEP PATCH, a cosmetic product specifically for the forehead(released on September 27) also appears to have made a strong start. In FY2/21, also, the Company has released
its fourth product in the series on March 31, 2020, CHEEK PORE PATCH*, a cosmetic product specifically for
pores. The “injecting cosmetics” series applies the microneedle technology that is also used in the medical field
as a new concept for cosmetic products, in which beauty ingredients are molded into a needle form to be directly
injected into the skin. The Company has also obtained trademarks for several key expressions, such as “injecting
cosmetics” to prevent the use of similar packaging presentation of the Company’s registered trademark products
by other companies even if they develop similar generic products.
*	This product focuses on consumer concerns regarding the prominent “cheek pore zone” which has a high concentrationof pores. By applying a sheet embedded with tiny needles made from moisturizing and toning compounds to prominent
areas of the cheek, this cosmetic product specifically for cheek pores helps to achieve firm, smooth skin.

(2) Use of Foods with Functional Claims System
For the Company’s measures to utilize the Foods with Functional Claims System that came into effect in April
2015, most recently in May 2019, the Consumer Affairs Agency accepted its application for KAITEKI OLIGO,
which contains five ingredients for improving bowel movements, into the system as a “food with functional claims,”
and in September 2019, renewal sales were launched. This product has the functional claim that “This productcontains raffinose, lactulose, fructo-oligosaccharides, isomalto-oligosaccharides, and alpha-cyclodextrin, so it
has the function to improve the bowel movements of people prone to constipation (increase stool volume andfrequency).” It will be the first “food with functional claims” in Japan that contains multiple oligosaccharides as thefunctional ingredients. In addition, with regards to KITANO DAICHINO YUMESHIZUKU (a tablet-type supplementwith rafuma, a plant-derived ingredient which boosts sleep quality), which had its application accepted by theConsumer Affairs Agency in November 2018, renewal sales of the product were launched from June 2019 as a“food with functional claims,” and experts are recommending it as a product that can be trusted. The Company
currently has three products* that are “foods with functional claims.”*	In addition to KITANO DAICHINO YUMESHIZUKU, KAITEKI OLIGO, and KOJUKAN (accepted in May 2017).

In January 2020, the Company conducted a renewal sale of Luminapeel as a quasi-medicinal product. Luminapeel
is a peeling gel specifically for the back of the hand, which uses a double approach of removing old skin andcosmetic whitening to rejuvenate the hands for those who have concerns about skin discoloration.

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11 15

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Topics and recognition of issues(3) Strengthening the Management Foundation
In continuation from FY2/19, the Company is working to increase its personnel. As of February 29, 2020, theCompany had 162 executives and employees (up by 48 people from the previous fiscal year-end). With this, theCompany increased the size of the customer acquisition department by 24 people. Going forward, the Company
plans to bolster its customer acquisition system by increasing personnel, particularly in the customer acquisition
department, and by doing so work to discover products with small sales figures which it has not been able tosufficiently work on thus far. Also, with respect to the in-house analysis and operation system aimed at optimizing
the advertising system which the Company introduced from FY2/19, the Company is using the system smoothly
while continuing to boost its functionality. In addition to building a system that enables even inexperienced
employees to generate profits at an early stage, the Company is having aspects that cannot be handled by thissystem co-exist with “direct operation by human management” by experienced personnel to maximize advertising
effectiveness and efficiency. Also, the Company is increasing efficiency by using Robotic Process Automation (RPA)
for routine operations, and appears to have more or less completed establishing a structure for implementing it
appropriately.
With respect to the office infrastructure, on March 18, 2019, the Company relocated its Head Office to Sapporo
Sosei Square in central Sapporo City, in preparation for future business expansion. Furthermore, on April 15,
2020, the Company opened the Tokyo Branch Office (Nihonbashi, Chuo Ward), and expanded the office spacein February 2020. In particular, at the Tokyo Branch Office, the Company plans to hire people with high-level skills
and abundant experience, as the Company expects benefits on the personnel hiring front.
*	A large complex completed in May 2018 which has become a new landmark in Sapporo City.

2. Recognition of issues
The reason for net sales undercutting the target in FY2/20, as mentioned above, is largely due to a lull in new
customer acquisitions in the first half of the fiscal year. The Company has noted four causal factors as follows: 1)
an inability to release appropriate advertising creative elements, 2) a cooling of consumer sentiment due to theconsumption tax increase and the COVID-19 pandemic, 3) fewer new product releases than planned, and 4) missing
the optimal timing for increasing advertising investment. Of these, 2) is an external factor, and 4) has been resolved
by converting the numbers indicating advertising investment efficiency into coefficients. However, 1) and 3) arerecognized as issues that remain to be addressed for the next stage. The Company intends to take the following
initiatives as priority measures for FY2/21.
(1) Strengthen the creative division
In mail-order sales, sales are significantly influenced by “product appeal” and “advertising creatives.” In particular,
while it is important to have excellent creative elements, it is also necessary to replace creative elements regularly
using different perspectives and openings to keep advertising fresh for the customer. The Company has preparedcreative logic, manuals, support systems and so forth to help improve advertising. However, in falling behind on
training team members following an increase in personnel, the Company was unable to maintain the freshness of
its creative elements appropriately, resulting in a lull in new customer acquisitions. Accordingly, the Company is
now looking to strengthen the training system and improve the skills of its creative team by allocating management
personnel and increasing mid-career hiring of experienced personnel.

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12 15

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/

Topics and recognition of issues(2) Strengthening the product development division
New product releases in FY2/20 were fewer than planned at just three products. As the mainstay products for theCompany transition from health foods to basic skin care products, the basic skin care products will be impacted
to some degree by waves in demand, compared to the steady demand for health foods, and must counter this
impact by stimulating demand through periodic new product releases or renewals. The Company intends toestablish a structure for advancing planning and development of multiple products in parallel in order to increasedevelopment speed. It will look to maintain quality while reviewing the planning process and taking steps to hire
experienced personnel.

█ Outlook
In FY2/21, the Company’s earnings are expected to see temporary
decreases in sales and profits, mainly due to rebuilding theorganizational structure
The Company’s forecasts for FY2/19 are for decreases in sales and profits due to rebuilding the organizational
structure, with net sales to decrease 18.5% YoY to ¥8,227mn, operating profit to fall 31.2% to ¥2,006mn, ordinary
profit to decrease 31.4% to ¥2,007mn, and net profit to fall 31.2% to ¥1,357mn.
As in FY2/20, growth in the “injecting cosmetics” series and continued use of other mainstay products can be
expected; however, the Company is forecasting a temporary decrease in earnings, having positioned FY2/21 asa “year for rebuilding the organization structure,” with a view to long-term growth. In other words, to help solve
issues that have been thrown into relief during FY2/20, the Company intends to strengthen its creative divisions andstrengthen its product development division, but the forecast is based on assumptions that do not incorporate theimpact of eliminating the two issues of the lull in growth in new customer acquisitions and delays in the release of
new products and sales of new products.
The Company has really shown its true value by accurately identifying issues to be addressed even when its earnings
are growing steadily, and acting quickly to respond to them, as this is an important activity for realizing further growth.
However, although there are some areas of uncertainty such as the impact of the COVID-19 pandemic, considering
the Company’s accumulative growth model, its earnings forecast seems to be a quite a conservative level. Therefore,
it will be necessary to monitor the Company’s performance closely each quarter, such as its progress on the various
initiatives and the specific results.
FY2/21 forecasts(¥mn)
FY2/20FY2/21

ChangeResults% of total

Full-year
forecast% of total

Amount% change

Net sales

10,093

-

8,227

-

-1,865-18.5%

Operating profit

2,915

28.9%

2,006

24.4%

-908

-31.2%

Ordinary profit

2,923

29.0%

2,007

24.4%

-916

-31.4%Net profit

1,974

19.6%

1,357

16.5%

-617

-31.2%

Source: Prepared by FISCO from the Company’s financial results

We encourage readers to review our complete legal statement on “Disclaimer” page.

13 15

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/█ Growth strategy
Work towards expanding into the large-scale mass markets
Aim to become a company with net sales of ¥100.0bn in the future
The Company does not publish specific medium-term management targets, but looking back at its strategy todate, based on its policy of prioritizing profits above sales, basically it has pursued a strategy of constantly releasing
products every period following sufficient test marketing with the aim of them becoming the top in their niche market,
and at the same time, steadily capturing demand through effectively investing in advertising and publicity expenses.
In particular, the Company has operated a business with high profit margins by developing multiple products inrelatively uncontested niche markets where each product is worth between ¥1.0-¥2.0bn, aiming for a total businessscale of around ¥10.0bn. As a result, in FY2/20, net sales surpassed ¥10.0bn, thereby achieving its initial target.
The Company is now placed to develop multiple products at a scale of ¥5.0-10.0bn in large mass markets going
forward, and has laid out a strategy aiming to achieve net sales of ¥100.0bn and operating profit of ¥30.0 bin in the
future, while maintaining a high profit margin. Specifically, in addition to creating new markets, such as the “injecting
cosmetics” series, the Company seems also to be envisaging categories with large markets, such as all-in-one gel
and shampoo. In the background to this, 1) the Company has the skill to maintain high profit margins regardless ofniche market or top share, 2) it has acquired the expertise to create businesses in the scale of ¥4.0bn to ¥5.0bn per
product, and 3) it recognizes that the niche markets that it has targeted to date are encountering limits on room to
grow. Accordingly, we recognize that the Company’s strategies reflect a response to its organizational capabilities
and business foundation, and a desire to accelerate growth. On the other hand, in regard to its overseas expansion,
the Company is eyeing further expansion, including in the Taiwan operations, which have already become profitable,
and its policy is to focus particularly on promoting online sales, which are easy to expand horizontally. In particular,
it appears to be promoting a sales strategy based on platforms such as Google, Yahoo!JAPAN, Facebook, Twitter,
Criteo, and Amazon, among others.
For our part, we see the target level of ¥100.0bn for net sales as being very achievable on the assumption of annual
growth of 30% over the long-term (8-10 year span), and we consider the Company to have that potential. Naturally,
expansion into large-scale mass markets and overseas expansion are essential strategic themes for achieving thisgoal, and the recent change in direction appears to be a rational one. In particular, if the Company can accumulate
not only market-making hit products such as HYALO DEEP PATCH but also around 15 to 20 products that can
project a presence (originality) in part of the large-scale mass markets, we believe that the net sales of ¥100.0bn will
naturally be achieved. In addition, if the Company achieves this, the strategy will enable it to readily leverage scale ofeconomies and conduct large-scale M&As on its own initiative, which could further accelerate its scale expansion.
Naturally, cosmetic products and mass markets entail different levels of difficulty compare to the health foods andniche markets that the Company has engaged in thus far, and the degree to which it can make progress in these
directions without losing its distinctive character is a matter for demonstrating management skill. In that sense,
resolving the challenges that the Company has now identified and laying a proper foundation for growth in FY2/22
and beyond can be considered an important litmus test for the Company, and the results of its activities over the
coming year should be carefully observed.

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14 15

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
http://www.fisco.co.jp

Kitanotatsujin Corporation
2930 Tokyo Stock Exchange First Section/Sapporo Securities Exchange

22-Jul.-2020
https://www.kitanotatsujin.com/en/█ Shareholder returns
In FY2/21, the dividend is expected to decrease following theforecast for a decrease in profits
However, there is significant room for further dividend increases inline with profit growth going forward
The Company’s basic policy is to return profits to shareholders in accordance with its results, while also aiming to
supplement retained earnings to strengthen its financial base.
The annual dividend for FY2/20 was ¥4.3 per share (interim ¥2.1, year-end ¥2.2), an increase of ¥0.7 YoY (dividend
payout ratio 30.3%). On the other hand, for FY2/21, the dividend forecasts are for a YoY decrease of ¥1.3 to ¥3.0
per share (interim ¥1.8, year-end¥1.2) (dividend payout ratio 30.7%) as the Company is currently forecasting adecrease in profits. Naturally, it is perfectly possible that the dividend forecast could be revised depending on
earnings trends, and future trends will therefore need to be monitored. The Company aims to stably pay dividends
targeting a dividend payout ratio of at least 30% as the standard, but there remains plenty of room to increase thedividend in the future alongside the growth in profits.

haernet acnadshpaflyoowu,tarnadtitohe balance ofTrends in opeTrraetnindgscinasdhivfildoewn, dinpveerstsm
cash and deposits at period end

（¥）
5.00
（mn）
4.00
2,200

Dividend per share (left)
Payout ratio (right)
Operating cash flow (left)
Investment cash flow (left)
41.4%of cash and deposits at the period end (right)
Balance
38.7%

50.0%

（mn）
40.0%
4,400
32.3%
2,000
4,000
30.9%
30.7%
30.3%
30.3%
29.3%
1,800
3,600
3.00
30.0%
1,600
3,200
2,687
2,508
1,400
2,800
4.30
2.00
20.0%
1,200
2,400
3.60
2,142
1,756
1,000
2,000
3.00
800
1,600
1,153
2.19
1.00
10.0%
931
859
600
1,200
1,193
748
1,035
0.84
0.71
0.57
0.69
400
800
637
0.00
0.0%
200 168
400
295
284
0
FY2/14 FY2/15 FY2/16 FY2/17 FY2/18 FY2/19 FY2/20 FY2/21E
0
0
-2
-8
-12
-30
-38
-63
-100 -400-184-200
FY2/13 FY2/14 FY2/15 FY2/16 FY2/17 FY2/18 FY2/19 FY2/20
Note: the dividend per share is after being adjusted for the following five share splits (fractions of less than 1 yen have been
4,088

rounded-up)
January 3, 2014 (1:2); June 1, 2015 (1:2); April 1, 2017 (1:2); November 6, 2017 (1:2); and February 15, 2018 (1:3)
Source: Prepared by FISCO from the Company’s financial results

In addition, the Company has enhanced its shareholder benefits program. All shareholders who are recorded in
the shareholders’ register as holding 1 or more units of shares (100 shares) at the end of February each fiscal year
receive a gift of Men’s EYE KIRARA, an eye cream specifically for use under the eyes (label price of ¥4,864, includingtax) once a year. (The gift is reviewed each period and may be changed in the future.)

We encourage readers to review our complete legal statement on “Disclaimer” page.

15 15

Disclaimer
FISCO Ltd. (“FISCO”) offer stock price and index information for use under the approval of theTokyo Stock Exchange, the Osaka Stock Exchange and Nikkei Inc.
This report is provided solely for the purpose of offering information, and is not a solicitationof investment nor any other act or action.
FISCO prepared and published this report based on information which it considered reliable;
however, FISCO does not warrant the accuracy, completeness, fitness nor reliability of thecontents of this report or the said information.
The issuers’ securities, currencies, commodities, securities and other financial instruments
mentioned in this report may increase or decrease in value or lose their value due to influence
from corporate activities, economic policies, world affairs and other factors. This report does
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This report has been prepared at the request of the company subject hereto based on theprovision of information by such company through telephone interviews and the like. However,
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FISCO Ltd.
5-11-9 Minami Aoyama, Minato-ku, Tokyo, Japan 107-0062
Phone: 03-5774-2443 (Financial information Dept.)
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