Noevir : Announces 2024 Consolidated Results

Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.

November 8, 2024

	Noevir Holdings Announces 2024 Consolidated Results
	(based on Japan GAAP)
Trade name:	Noevir Holdings Co., Ltd.
Listing:	Tokyo Stock Exchange, Prime Market (Securities Code: 4928)
URL:	https://www.noevirholdings.co.jp/
Representative:	Takashi Okura, President and CEO
Contact:	Junya Baba, General Manager, Accounting

Tel. [phone]

Annual General Meeting of Shareholders: December 9, 2024

Date of commencement of dividend payments: December 10, 2024

Submission of securities report: December 9, 2024

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, 2024 (October 1, 2023 - September 30, 2024)

(1) Consolidated operating results

(Millions of yen; percentage figures denote year-on-year change)

							Operating		Ordinary		Net income
			Net sales				attributable to owners
				Income		income
									of the parent
Fiscal year ended September 30, 2024	63,823	2.0%		11,423		3.6%		11,594	2.6%		7,970	3.9%
Fiscal year ended September 30, 2023	62,552	2.3%		11,024		9.0%		11,295	8.5%		7,673	1.1%
Note: Comprehensive income:
Fiscal year ended September 30, 2024: 8,319 million yen [1.2%]
Fiscal year ended September 30, 2023: 8,224 million yen [4.1%]
						Diluted EPS		ROE	Ordinary		Operating
			EPS (Yen)		income/Total		income/Total sales
				(Yen)		(%)
									assets (%)			(%)
	Fiscal year ended September 30, 2024		233.34			－		15.0			15.1			17.9
	Fiscal year ended September 30, 2023		224.66			－		14.6			14.7			17.6
	[Reference]
Equity in gain/losses of affiliated companies
Fiscal year ended September 30, 2024: - million yen
Fiscal year ended September 30, 2023: - million yen
(2) Consolidated financial position												(Millions of yen)
		Total assets		Net assets		Equity ratio (%)	Net assets per share (Yen)
As of September 30, 2024	76,471			53,906		69.9			1,565.68
As of September 30, 2023	77,246			53,205		68.3			1,545.54
[Reference] Equity:
As of September 30, 2024: 53,477 million yen
As of September 30, 2023: 52,790 million yen
						- 1 -

(3) Consolidated cash flows

(Millions of yen)

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents,

operating activities

investing activities

financing activities

end of year

Fiscal year ended September 30, 2024

9,123

1,525

(7,712)

29,006

Fiscal year ended September 30, 2023

7,624

(3,544)

(7,493)

26,166

2. Cash dividends

Annual dividends (Yen)

Total dividend

Payout ratio

Dividends/

amount

Shareholders'

1st

2nd

3rd

Year-

(%)

Total

(Millions of yen)

equity (%)

quarter

quarter

quarter

end

(Consolidated)

(Annual)

(Consolidated)

Fiscal year ended

－

0.00

－

220.00

220.00

7,514

97.9

14.3

September 30, 2023

Fiscal year ended

－

0.00

－

225.00

225.00

7,685

96.4

14.5

September 30, 2024

Fiscal year ending

September 30, 2025

－

0.00

－

225.00

225.00

96.1

(forecast)

3. Consolidated earnings forecasts for the fiscal year ending September 30, 2025 (October 1, 2024 - September 30, 2025)

(Millions of yen; percentage figures denote year-on-year change)

							Net income
	Net Sales	Operating income	Ordinary income	attributable to	EPS (Yen)
							owners of the parent
Full year	64,000	0.3%	11,500	0.7%	11,700	0.9%	8,000	0.4%	234.22

* Notes

1. Significant changes in the scope of consolidation during the period: None
2. Changes in accounting principles, procedures, disclosure methods
3. 1. Changes associated with revision in accounting standards: None
   2. Other changes: None
   3. Changes in accounting estimates: None
   4. Restatements: None
4. Shares outstanding (common stock)
5. 1. Shares outstanding (including treasury stock)

As of September 30, 2024: 34,156,623

As of September 30, 2023: 34,156,623

1. Treasury shares outstanding
   As of September 30, 2024: 416
   As of September 30, 2023: 270
2. Average shares outstanding for the period

Fiscal year ended September 30, 2024: 34,156,316

Fiscal year ended September 30, 2023: 34,156,353

Note: Please refer to "Note on per-share information" on page 21 of the Attached Material regarding the formula used to calculate earnings per share (consolidated).

- 2 -

• Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.
• 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 be reasonable 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) Operating results for the fiscal year ended September 30, 2024" under "1. Operating results and financial information" on page 5 of Attached Material.

- 3 -

Contents of the Attached Material
1. Operating results and financial information	5
(1)	Operating results for the fiscal year ended September 30, 2024	5
(2)	Financial position as of September 30, 2024	7
(3)	Profit distribution/dividend payment for the reporting term and the current term	7
2. Management strategy	8
(1)	Basic management policies and medium- to long-term strategy	8
(2)	Numerical targets and achievements	8
(3)	Key issues	8
3. Basic Approach to Selecting Accounting Principles	8
4. Consolidated financial statements and notes	9
(1)	Consolidated balance sheets	9
(2)	Consolidated statements of income and comprehensive income	11
(3)	Consolidated changes to equity	13
(4)	Consolidated statements of cash flows	15
(5)	Notes to the consolidated financial statements	16
	(Note on assumptions for going concern)	16
	(Note on change in presentation method)	16
	(Note on consolidated balance sheets)	16
	(Note on segment information, etc.)	17
	(Note on per-share information)	21
	(Note on important subsequent events)	21

- 4 -

1. Operating results and financial information

1. Operating results for the fiscal year ended September 30, 2024
   1) Consolidated operating results for the reporting fiscal period

< >

	Fiscal year ended	Fiscal year ended
	September 30, 2023	September 30, 2024	Change	Change
	Net Sales	% of Total	Net Sales	% of Total	(Millions of yen)	(%)
	(Millions of yen)	(Millions of yen)
Ner sales	62,552	100.0	63,823	100.0	1,270	2.0
Cosmetics	48,175	77.0	49,761	78.0	1,586	3.3
Pharmaceuticals	11,985	19.2	11,443	17.9	(542)	(4.5)
& Health Food
Other	2,391	3.8	2,618	4.1	226	9.5
	Fiscal year ended	Fiscal year ended
	September 30, 2023	September 30, 2024	Change	Change
	Amount	% of Net sales	Amount	% of Net sales	(Millions of yen)	(%)
	(Millions of yen)	(Millions of yen)
Operating income	11,024	17.6	11,423	17.9	398	3.6
Ordinary income	11,295	18.1	11,594	18.2	298	2.6
Net income						3.9
attributable to	7,673	12.3	7,970	12.5	296
owners of the parent

During fiscal 2024 (October 1, 2023 to September 30, 2024), economic trends remained uncertain, although some signs of gradual recovery were observed.

In this environment, the Company is working to realize the concept of its medium- to long-termstrategy: "Realizing steady corporate growth by securing sustainability in every Group business segment."

As a result, net sales for the fiscal year ended September 30, 2024 came to 63,823 million yen (up 2.0% year on year), operating income was 11,423 million yen (up 3.6%), ordinary income was 11,594 million yen (up 2.6%), and net income attributable to owners of the parent was 7,970 million yen (up 3.9%). Notably, net income attributable to owners of the parent was a record high.

<>

(a) Cosmetics

				(Millions of yen)
	Fiscal year ended	Fiscal year ended	Change	Change
	September 30, 2023	September 30, 2024	(Millions of yen)	(%)
Net sales	48,175	49,761	1,586	3.3
Segment income	11,867	12,226	359	3.0

Sales in the Cosmetics segment totaled 49,761 million yen (up 3.3% year on year), and segment income came to 12,226 million yen (up 3.0%).

(b) Pharmaceuticals & Health Food

				(Millions of yen)
	Fiscal year ended	Fiscal year ended	Change	Change
	September 30, 2023	September 30, 2024	(Millions of yen)	(%)
Net sales	11,985	11,443	(542)	(4.5)
Segment income	1,185	1,230	45	3.8

Sales in the Pharmaceuticals & Health Food segment totaled 11,443 million yen (down 4.5% year on year), and segment income came to 1,230 million yen (up 3.8%).

- 5 -

(c) Other

				(Millions of yen)
	Fiscal year ended	Fiscal year ended	Change	Change
	September 30, 2023	September 30, 2024	(Millions of yen)	(%)
Net sales	2,391	2,618	226	9.5
Segment income	260	330	69	26.7

Sales in the Other segment came to 2,618 million yen (up 9.5% year on year), while segment income came to 330 million yen (up 26.7%).

2) Forecast for the current fiscal year ending September 30, 2025

Although a gradual economic recovery is anticipated, the outlook is expected to remain uncertain due to factors such as the risk of downward pressure on consumer spending caused by rising prices.

In this environment, the Company will move forward aiming to realize the concept of its medium- to long-termstrategy: "Realizing steady corporate growth by securing sustainability in every Group business segment." With this aim in mind, the Company's consolidated forecast for the fiscal year ending September 30, 2025 is for net sales of 64,000 million yen, operating income of 11,500 million yen, ordinary income of 11,700 million yen, and net income attributable to owners of the parent of 8,000 million yen.

- 6 -

1. Financial position as of September 30, 2024

1. Assets, liabilities and net assets

Total assets on a consolidated basis as of September 30, 2024 stood at 76,471 million yen, a decrease of 774 million yen from the previous fiscal year-end. This was mainly due to a decrease of 1,606 million yen in other under current assets, while there were increases in investment securities of 500 million yen and cash and cash equivalents of 340 million yen.

Total liabilities came to 22,564 million yen, a decrease of 1,475 million yen from the previous fiscal year-end. This mainly reflected decreases other accounts payable of 1,073 million yen and in long- term guarantee deposits of 418 million yen.

Net assets came to 53,906 million yen, an increase of 701 million yen from the previous fiscal year- end. This was primarily attributable to an increase in retained earnings of 455 million yen and an increase in net unrealized gain on other securities of 343 million yen, due to net income attributable to owners of the parent of 7,970 million yen, which was partly offset by the payment of 7,514 million yen in dividends at the previous fiscal year-end.

As a result, the equity ratio stood at 69.9%, up 1.6 percentage points from the previous fiscal year- end, and net assets per share stood at 1,565.68 yen, an increase of 20.14 yen.

2) Consolidated cash flows

Cash and cash equivalents (hereinafter, "cash") on a consolidated basis as of September 30, 2024 stood at 29,006 million yen, an increase of 2,840 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, 2024 are presented as follows.

(Cash flows from operating activities)

Net cash provided by operating activities amounted to 9,123 million yen (compared with an inflow of 7,624 million yen in the corresponding period of the previous fiscal year). The main factor increasing cash was income before income taxes of 11,619 million yen, and the main factor decreasing cash was income tax paid of 2,161 million yen.

(Cash flows from investing activities)

Net cash provided by investing activities came to 1,525 million yen (compared with an outflow of 3,544 million yen in the corresponding period of the previous fiscal year). The principal cash inflow was 2,717 million yen in proceeds from withdrawal of time deposits, whereas the principal cash outflow was 626 million yen for purchase of property, plant and equipment.

(Cash flows from financing activities)

Net cash used in financing activities came to 7,712 million yen (compared with an outflow of 7,493 million yen in the corresponding period of the previous fiscal year). This was mainly due to the payment of 7,522 million yen in dividends.

(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 to shareholders while ensuring the necessary reserves for business expansion in the medium and long term and a stronger management structure. For fiscal 2024 (ended September 30, 2024), based on the aforementioned policy, we plan to pay a year-end dividend of 225 yen per share, which is a 5 yen increase from our most recent dividend forecast.

For the current fiscal year, ending September 30, 2025, we plan to pay a dividend of 225 yen per share.

- 7 -

1. Management strategy
2. 1. Basic management policies and medium- to long-term strategy
      To achieve the concept underlying the Noevir Group's medium- to long-term strategy, "Realizing steady corporate growth by securing sustainability in every Group business segment," the Group will execute the following five policies:
   2. 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 and logistics systems
      5. Promote a management approach that is responsive to changes in the business environment
   3. 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.
   4. Key issues
      Although a gradual economic recovery is anticipated, the outlook is expected to remain uncertain due to factors such as the risk of downward pressure on consumer spending caused by rising prices.
      In this environment, in order 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 concept underlying the medium- to long-term strategy, "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 need to maintain comparability between the accounting periods of the consolidated financial statements and the fact that the Group has very little need to procure funds in overseas markets. Going forward, the Group plans to give due consideration to the adoption of international financial reporting standards (IFRS), taking into account conditions in Japan and overseas.

- 8 -

4. Consolidated financial statements and notes

1. Consolidated balance sheets

		(Millions of yen)
	As of	As of
	September 30, 2023	September 30, 2024
ASSETS
Current assets
Cash and cash equivalents	28,883	29,223
Notes and accounts receivable	10,495	10,788
Merchandise and finished goods	6,352	6,307
Work in progress	141	112
Raw materials and purchased supplies	1,653	1,672
Other	3,655	2,049
Allowance for doubtful accounts	(6)	(5)
Total current assets	51,175	50,148
Non-current assets
Property, plant and equipment
Buildings and structures, net	4,887	4,597
Equipment and vehicles, net	650	653
Land	13,554	13,559
Lease assets, net	846	766
Construction in progress	71	156
Other, net	183	174
Total property, plant and equipment	*1 20,193	*1 19,907
Intangible assets
Goodwill	178	158
Software	89	108
Other	431	727
Total intangible assets	699	994
Investments and other assets
Investment securities	2,611	3,112
Deferred tax assets	1,455	1,186
Other	1,132	1,141
Allowance for doubtful accounts	(20)	(18)
Total investments and other assets	5,178	5,421
Total non-current assets	26,071	26,323
Total assets	77,246	76,471

- 9 -

		(Millions of yen)
	As of	As of
	September 30, 2023	September 30, 2024
LIABILITIES AND NET ASSETS
Current liabilities
Notes and accounts payable	2,903	2,951
Lease obligations	87	86
Other accounts payable	3,012	1,939
Income tax payable	2,146	1,720
Reserve for bonuses	97	97
Other	2,258	2,527
Total current liabilities	10,506	9,323
Long-term liabilities
Lease obligations	827	742
Guarantee deposits received	11,583	11,165
Deferred tax liabilities	461	658
Net defined benefit liability	534	557
Other	127	119
Total long-term liabilities	13,534	13,241
Total liabilities	24,040	22,564
NET ASSETS
Shareholders' equity
Common stock	7,319	7,319
Retained earnings	43,312	43,768
Treasury stock	(1)	(2)
Total shareholders' equity	50,629	51,084
Accumulated other comprehensive income
Net unrealized gain on other securities	1,607	1,951
Foreign currency translation adjustments	558	461
Remeasurements of defined benefit plans, net of tax	(5)	(20)
Total accumulated other comprehensive income	2,160	2,392
Non-controlling interests	415	428
Total net assets	53,205	53,906
Total liabilities and net assets	77,246	76,471

- 10 -