Shinnihonseiyaku Co., Ltd.TSE: 4931

Supplementary Briefing Material on Financial Results for the Third Quarter of the Fiscal Year Ending September 2021

Aug 26, 2021 at 10:00 PM UTC · Issued by Shinnihonseiyaku Co., Ltd.

August 6, 2021

Shinnihonseiyaku Co., Ltd.

Securities Code: 4931

First Section of the Tokyo Stock Exchange

Summary of Financial Results for the Third Quarter of the Fiscal Year	Page 1
Ending September 2021
© Shinnihonseiyaku Co., Ltd.

*The Company has shifted to consolidated financial results since the third quarter of the fiscal year ending September 2021.

Net Sales: 25,289 million yen (down 1.1% year on year)

In the cosmetics business, mail order sales progressed at a higher pace than those of the same period of the previous fiscal year and more than expected.

Net Sales	(Up-selling and cross-selling went well, increasing the unit purchase price and the purchase frequency.)
◼ Overseas sales, particularly in China, maintained a good performance and increased significantly year on

	year.
	◼ The market environment for our Direct store/Wholesale business continued to be harsh, and the
	healthcare business restrained advertising investment and posted lower earnings.

Expenses/

Profit

Growth Strategy

Operating Profit: 2,400 million yen (down 6.0% year on year)

Operating profit decreased year on year due to aggressive marketing investment, but progressed better than expected.
Operating expenses were significantly reduced due to the progress in efficiency improvement measures.

Progress and New Strategy

Rebranding the "PERFECT ONE" brand.
Launching the new "PERFECT ONE FOCUS" skincare brand for the "minimum life" generation.
Reinforcement of the healthcare business portfolio by making Flatcraft, Inc. a subsidiary.

1. Summary of Third Quarter Financial Results

Summary of Third Quarter Financial Results	Page 4
*The Company has shifted to consolidated financial results since the third quarter of the fiscal year ending September 2021.	© Shinnihonseiyaku Co., Ltd.

In the cosmetics business, sales in the Mail Order segment increased year on year due to rises in the unit purchase price and the purchase frequency by subscribers in mail order sales.
Sales in the healthcare business declined year on year due to restrained advertising investment.
All types of profit turned out to be higher than expected, mainly as a result of reducing operating expenses.

					(Unit: Million yen)

			First nine months of	Year-on-year comparison
	Items	First nine months of
	FY ending Sept.
	FY ended Sept. 2020
		2021 (consolidated)	Changes	Changes (%)
		(non-consolidated)


Net Sales	25,573	25,289	-284	-1.1%

	Cosmetics	23,542	23,686	+144	+0.6%

	Healthcare	2,030	1,602	-428	-21.1%

Operating profit	2,552	2,400	-152	-6.0%

Ordinary profit	2,546	2,419	-126	-5.0%

	Ordinary profit rate	10.0%	9.6%	-0.4pt	-

Profit (attributable to	1,593	1,624	+31	+2.0%
owners of parent)

			Prior-year ordinary profit is retroactively adjusted for changes in accounting policies.

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