Shinnihonseiyaku : Supplementary Briefing Material on Financial Results for Third Quarter of Fiscal Year Ending September 2020

Supplementary Briefing Material on Financial Results for Third Quarter of Fiscal Year Ending September 2020

August 6, 2020

Shinnihonseiyaku Co., Ltd.

Securities Code: 4931

Tokyo Stock Exchange Mothers

© Shinnihonseiyaku Co., Ltd.

Summary of Financial Results for Third Quarter of Fiscal Year Ending September 2020

Net Sales: 25,573 million yen

Page 1

© Shinnihonseiyaku Co., Ltd.

(up 0.8% year on year, 73.1% as the progress rate against the full-year outlook)

• Sales increased year on year due to an expansion in cosmetics sales, although the progress rate

Net Sales

is lower than the plan.

• The impacts of the consumption tax rate hike and the novel coronavirus pandemic are limited.
• With domestic EC sales remaining firm, overseas EC sales are on a recovery trend, mainly in China.

Profit

Growth Strategy

Operating Profit 2,552 million yen

(down 1.6% year on year, 81.0% as the progress rate against the full-year outlook)

• Profit is progressing as planned, albeit lower than a year earlier.
• The effort to improve efficiency in operating expenses is progressing well.
• Marketing investment was temporarily curbed in order to see through consumer trends.
• Full-yearoutlook remains unchanged (Profit is projected to end with a 10% year-on-year increase).

New Growth Strategy

• All-in-OneGel that improves wrinkles and whitens the skin is scheduled to be released this fall.
• Toward a new era after the end of the coronavirus pandemic, the Company launches the "Smart Health Care Business."

INDEX

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© Shinnihonseiyaku Co., Ltd.

1. Summary of Third Quarter Financial Results
2. Outlook for Financial Results for Fiscal Year Ending September 2020
3. Business Overview
4. Growth Strategy
5. Initiatives for ESG APPENDIX

1. Summary of Third Quarter

Financial Results

Summary of Third Quarter Financial Results	Page 4
© Shinnihonseiyaku Co., Ltd.

• Net sales increased by 190 million yen year on year (an increase of 0.8%).
• The impact of the novel coronavirus was limited, and sales of cosmetics remained solid.
• In profit, although operating profit decreased 1.6% year on year due to increased marketing investment in the first half of the fiscal year under review, it is making steady progress to achieve the full-yearoutlook.

							(Unit: Million yen)
		First nine	First nine	Year-on-year comparison	Full-year	Progress rate
		months of	months of			outlook for
	Items			against full-
	FY ended	FY ending	Changes	Changes (%)	FY ending
		year outlook
		Sept. 2019	Sept. 2020	Sept. 2020
Net sales	25,376	25,573	+196	+0.8%	35,000	73.1%
	Cosmetics	23,066	23,542	+475	+2.1%	32,607	72.2%
	Health care	2,310	2,030	-279	-12.1%	2,392	84.9%
	products
Operating profit	2,592	2,552	-40	-1.6%	3,150	81.0%
Ordinary profit	2,546	2,549	+3	+0.1%	3,130	81.5%
	Ordinary profit	10.0%	10.0%	0.0 p	ー	8.9%	ー
	rate
Profit	1,573	1,593	+19	+1.2%	2,010	79.3%

Summary of Third Quarter Financial Results - Supplemental Data

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© Shinnihonseiyaku Co., Ltd.

• In sales by channel, direct store sales/wholesale and overseas sales were partially affected by the novel coronavirus, but mail order, which was not influenced, drove overall sales.
• In terms of overseas and domestic EC sales, domestic EC, in particular, led the expansion of overall sales, marking a year-on-yearincrease of 22%.
• The Company temporarily curbed marketing investment from the plan after April in order to see through consumer trends.
• In operating expenses, both FF cost* and call center cost made progress in improving efficiency, as planned.

							(Unit: Million yen)
		First nine	First nine	Year-on-year comparison	Full-year	Progress rate
		months of	months of			outlook for
Items				against full-year
	FY ended	FY ending	Changes	Changes (%)	FY ending
		outlook
		Sept. 2019	Sept. 2020			Sept. 2020
Mail order		23,366	23,540	+173	+0.7%	31,794	74.0%
Direct store/Wholesale		1,563	1,546	-17	-1.1%	2,443	63.3%
Overseas		446	487	+40	+9.1%	762	63.9%
Overseas and domestic EC		2,070	2,539	+469	+22.7%	3,235	78.5%
sales
Advertising expenses		7,470	7,643	+172	+2.3%	10,993	69.5%
FF cost*		3,684	3,200	-483	-13.1%	4,219	75.9%
Call center cost		2,356	2,219	-137	-5.8%	3,102	71.5%
						* FF cost = Order fulfillment cost

Summary of Third Quarter Financial Results - Operating Profit Change Factor Analysis

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© Shinnihonseiyaku Co., Ltd.

• A net sales increase driven by expanded sales of cosmetics and improved efficiency through FF cost reduction contributed to higher profit.
• Whereas marketing investment such as advertising expenses was carried out aggressively in the first half to expand sales, the investment was temporarily curbed in the third quarter in order to see through consumer trends. Consequently, operating profit ended up on almost the same level as the year earlier.

(Unit: 100 million yen)

Factor in

	1.6						profit growth
	1.3
		1.7				Factor in
					0.1
					3.9	profit decline
				3.0
25.9							25.5
First nine months	Sales increase	Gross margin	Advertising	Promotion	FF cost*	Other SG&A	First nine months
of FY ended			expenses	expenses	improved	expenses	of FY ending
Sept. 2019					efficiency		Sept. 2020
Operating profit							Operating profit

* FF cost = Order fulfillment cost

Status of Balance Sheet

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© Shinnihonseiyaku Co., Ltd.

• The Company purchased a total of 299 million yen in treasury shares between May 14 and June 23.
• The Company has 9.3 billion yen in net cash as well as ample amounts of cash and deposits for investment for growth.
• The Company has concluded overdraft and commitment-line agreements up to 10 billion yen in an effort to ensure stable financing.

(Unit: Million yen)

(Unit: 100 million yen)

	Year-end of	Year-end of	Q3-end of	Changes from
Items	FY ended	FY ended	FY ending	previous fiscal
	Sept. 2018	Sept. 2019	Sept. 2020	year-end

Current assets	6,094	14,693	14,362	-330
	Cash and	2,954	10,576	10,354	-221
	deposits
	Accounts	2,099	2,913	2,730	-183
	receivable-trade
	Inventories	901	1,063	1,168	104
Non-current assets	3,397	3,882	3,793	-89
Total assets	9,491	18,575	18,156	-419
Liabilities	5,299	5,817	4,438	-1,378
	Trade payables	360	416	268	-147
	Interest-bearing	1,284	1,109	979	-129
	debt
Net assets	4,191	12,758	13,717	958
	Treasury shares	ー	ー	(299)	-299
Total liabilities and	9,491	18,575	18,156	-419
net assets

Net Cash

Equity Ratio

75.3%

68.7%

94.693.7

43.6%

16.7

FY ended	FY ended	Q3 of FY ending
Sept. 2018	Sept. 2019	Sept. 2020

2. Outlook for Financial Results

for Fiscal Year Ending September 2020

Outlook for Financial Results for Fiscal Year Ending	Page 9
September 2020	© Shinnihonseiyaku Co., Ltd.

• Full-yearoutlook remains unchanged from the initial forecast.
• By product category, the Company expects sales growth for cosmetics in the mail order channel.
• The Company projects an expansion in demand for all-in-one cosmetics that enable easy and smart skin care as the tendency to economize is rising, and new lifestyles, such as the habit of wearing face masks, are taking root.
• Demand for health care products is expected to expand due to growing awareness of maintaining

health and improving immunity.					(Unit: Million yen)
						FY ending Sept. 2020	Outlook for	Progress rate
			Items	FY ended	FY ended			Y-o-Y change in	against full-year
			Results in the	Outlook for
			Sept. 2018	Sept. 2019	full-year results	outlook
				first nine months	full-year results
						(%)	(a/b)
						(a)	(b)
	Net sales	31,210	33,570	25,573	35,000	+4.3%	73.1%
		Cosmetics	27,209	30,575	23,542	32,607	+6.6%	72.2%
		Health care products	4,001	2,994	2,030	2,392	-20.1%	84.9%
	Operating profit	2,493	2,864	2,552	3,150	+10.0%	81.0%
	Ordinary profit	2,499	2,828	2,549	3,130	+10.7%	81.5%
			Ordinary profit rate	8.0%	8.4%	10.0%	8.9%	+0.5 p	ー
	Profit	1,751	1,824	1,593	2,010	+10.2%	79.3%

Premises of Outlook for Financial Results for	Page 10
Fiscal Year Ending September 2020	© Shinnihonseiyaku Co., Ltd.

• There have been no changes in the premises of the full-yearoutlookfor sales by channel, in consideration of the third quarter financial results.
• In marketing investment, the Company plans to choose media, based on efficiency for capturing customers, and to expand investment in domestic EC, which is performing well in particular.
• For operating expenses, the Company intends to make efforts to improve efficiency in FF cost* as

planned.						(Unit: Million yen)
				FY ending Sept. 2020	Outlook for	Progress rate
	Items	FY ended	FY ended	Results in the	Outlook for	Y-o-Y change in	against full-year
	Sept. 2018	Sept. 2019	first nine months	full-year results	full-year results	outlook
				(a)	(b)	(%)	(a/b)
	Mail order	29,080	30,804	23,540	31,794	+3.2%	74.0%
	Direct store/Wholesale	1,703	2,151	1,546	2,443	+13.5%	63.3%
	Overseas	426	614	487	762	+24.2%	63.9%
	Overseas and domestic EC	2,490	2,816	2,539	3,235	+14.9%	78.5%
	sales
	Advertising expenses	9,763	10,245	7,643	10,993	+7.3%	69.5%
	<>perating expenses>
	FF cost*	4,497	4,575	3,200	4,219	-7.8%	75.9%
	Call center cost	2,957	3,082	2,219	3,102	+0.6%	71.5%

* FF cost = Order fulfillment cost

Medium-Term Performance Targets

Net sales	40,000 million yen or more
Ordinary profit rate	10% or more

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© Shinnihonseiyaku Co., Ltd.

The Company strives to achieve the above targets at an early stage and will aim at further growth.

				Net sales		Ordinary profit rate	10.0% or more
				(Million yen)		経常利益率	8.9%	40,000
						8.4%
8.2%		8.0%	8.0%		million yen or more
	7.0%					33,570	35,000
	6.7%			31,210
		28,372
	23,697

19,240

12,465

FY ended	FY ended	FY ended	FY ended	FY ended	FY ended	Outlook for	Medium-term
March 2015	March 2016	Sept. 2016*	Sept. 2017	Sept. 2018	Sept. 2019	FY ending	target
						Sept. 2020

* FY ended Sept. 2016 had only six months as an accounting period.

3. Business Overview

• Obtained Patents on Manufacturing New Functional Collagen Raw Material
• Enhancement of the Effect of Proposals as People Spend More Time at Home
• Achieved Targeted Sales Quantities of Seasonal Products for Three Months in a Row
• Capturing New Customers in EC is Making Steady Progress
• Recent Status of Direct Store Sales/Wholesale
• Recent Status of Overseas Business

Obtained Patents on Manufacturing New Functional Collagen Raw Material*1	Page 13
―The world's first original raw material "VC Collagen" from
© Shinnihonseiyaku Co., Ltd.
Shinnihonseiyaku

• The Company succeeded in developing the new functional collagen raw material "VC Collagen," which combines the coenzyme "Vitamin C" necessary to produce collagen with "collagen" which creates beautiful skin.
• In addition to the moisturizing effect of collagen and the antioxidant effect of vitamin C, the Company confirmed that "VC Collagen" has the ability to stimulate production of collagen about five times*2 as high as general collagen raw materials.

Comparison of collagen creation by fibroblasts

(Ratio when setting no addition as 1)

	6.0
ratio	About*2
Collagen creation	5 times
	1.0
	0.0

o additi	Traditional collagen raw materials	VC Collagen	*Conceptual illustration
No addition	General collagen

raw materials

*1 Patent obtained for "Method for Producing Cosmetic Materials" (July 2, 2020); *2 Evaluation was conducted in-house by using cells.

Enhancement of the Effect of Proposals as People Spend More Time at Home

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© Shinnihonseiyaku Co., Ltd.

• The order closing rate* with subscribers at the call center achieved the highest record in May and June for two consecutive months.
• The Company attributes achievement of the above records to the appeal effect enhanced by a membership magazineas people spend more time at home.
• Another factor seems to be improvement in the quality and opportunity of product proposals, which put importance on dialog with customers by communicators.

[Order closing rate with subscribers]
20%
			Improvement of appeal effects through	Proposals by communicators
			the membership magazine
October	May	June	* Ratio of the number of new purchases of goods to the number of effective calls received

Achieved Targeted Sales Quantities of Seasonal Products for Three Months in a Row

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© Shinnihonseiyaku Co., Ltd.

• Cross-sellingto repeat customers of seasonal products under Perfect One Brand continued performing well, leading the Company to reach targeted sales quantities.
• These products turned out to be popular with many customers since they were developed to solve rough skin caused by wearing a mask and seasonal skin troubles.

[April]	[May]	[June]
SP Barrier Mist	SP Peeling Gel	SP Skin Care Snow Powder

For skin in	To prevent	In the rainy
season
spring with	dullness* of
when the
lots of	the skin that
skin tends
causes for	feels stiff in
to feel oily
irritation	early summer
or shiny

Mist type lotion with two layers of moisture	Cleansing agent that easily cleans and	Skin care powder that can be used for 24 hours
barriers to protect the skin from pollen and	removes dead skin cells to make the skin	both day and night and reduces sweat and
dust and prevent makeup from smearing	smooth and clear	sebum while giving a refreshing feeling to the
		skin.
		* Caused by old dead skin cells that contain melanin.

Capturing New Customers in EC is Making Steady	Page 16
Progress	© Shinnihonseiyaku Co., Ltd.

• Capturing new customers through listing advertisingis going well.
• In addition, capturing new customers through online and offline collaboration that utilizes the advertising space of offline mail order has continued making progress.

[Actual examples of listing	[Actual examples of online and offline collaboration]
advertisements]

パーフェクトワン

Newspaper advertisement

購入する

	Read the QR code to
	display the web page for
TV	product purchases

Recent Status of Direct Store Sales/Wholesale

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© Shinnihonseiyaku Co., Ltd.

• The Company's direct stores and a portion of stores that handle its products suspended operation due to the coronavirus pandemic, but they started reopening gradually in late May.
• During business suspension, direct stores performed sales promotion, such as dispatching direct mail based on the customer database and receiving orders by telephone, as measures for continuing relationships with customers.

[Sales promotion measures at direct stores]

〒□□□- □□□□

〒□□□- □□□□

〇月〇日

×××－×××－××××

Sending pamphlets for a home delivery campaign to	Send DM for sales promotion
customers who have difficulty visiting our stores

Recent Status of Overseas Business

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© Shinnihonseiyaku Co., Ltd.

• Business in each country is recovering gradually from the impact of the novel coronavirus pandemic, driven by the sales expansion in overseas EC,as economic activity restarted from April.
• The big EC event in China "618" generated solid sales.
• On June 1, the Company started business in Vietnam.

*Icons and logos are quoted from each company's web site.

[Overseas EC sales growth rate]

[China]

Overseas EC sales

rose by about 20%,

driving overall sales

FY ended	FY ended	FY ending
Sept. 2018	Sept. 2019	Sept. 2020

[Vietnam]

Page for purchasing	EC malls in which our	Sales in the EC malls
Perfect One on Tmall	Lazada Vietnam and Shopee
	stores are opened

4. Growth Strategy

• Further Growth of Perfect One Brand
• Launch New Healthcare Business
• Accelerate EC and Digital Expansion
• Expand Overseas Business

Further Growth of Perfect One Brand	Page 20
All-in-One Gel for wrinkle improvement and skin whitening	© Shinnihonseiyaku Co., Ltd.

• From All-in-One Gel series, which has retained the highest market share* for four years in a row, new products are scheduled to put on the market in this coming fall.
• Toward expanding the share in the functional cosmetics market and further growing the Perfect One Brand, the Company aims to expand sales by carrying out aggressive advertising investment.

WrinkleSkin

improvementwhitening

* Fuji Keizai "Cosmetics Marketing Handbook 2017/2018/2019/2020"

Actual manufacturer and brand market shares in the moisture section and the all-in-one section in 2016, 2017, 2018 and 2019

[Quasi-drug (approval pending)]

All-in-One Gel for wrinkle improvement and

skin whitening

Release Date: Scheduled for the fall in 2020

Launch New Healthcare Business ―Smart Health Care

Page 21

© Shinnihonseiyaku Co., Ltd.

• As people's values are shifting to "self-reliance" after experiencing the novel coronavirus pandemic, "self-defense" (prevent of illness by oneself) has become a theme in the health care field.
• In this coming fall, the Company plans to launch a new business that supports people's "self-reliant health care" toward a new era after the novel coronavirus pandemic.

Build a Brand through Innovative Methods

Evidence	Lifestyle	Smart Tech
Products with reliable	Self-reliant, smart	Visualization of the
quality backed by
values and actions	body and of effects
supervision of
doctors

Scheduled to be launched in sequence from the fall of 2020

Accelerate EC and Digital Expansion

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© Shinnihonseiyaku Co., Ltd.

• Taking advantage of the habit of shopping from home taking root, the Company will expand measures to further accelerate the shift to EC.
• Making the best use of its EC site and smartphone apps, the Company will continue capturing new customers.

20%

EC sales ratio target at

20.0%

10%

+1.5%

+0.4%

Full-year target for

FY ending Sept.

2020 at 9.3%

8.0%

8.4%

9.9%

0%

FY

FY ended

2018 FY

FY ended

2019

Q3

Q3 of FY ending

. FY

FY ending

2022

Sept. 2018

Sept. 2019

Sept. 2020

Sept. 2022

2020

Expand Overseas Business

Page 23

© Shinnihonseiyaku Co., Ltd.

• The Company will further expand its overseas business, centering on China, while paying attention to the state of global economic activity, and accelerate development into a global standard brand.

Next! United States

New! Vietnam

From June 2020

Thailand		Taiwan
From November 2018	From December 2016

Singapore	Hong Kong
From September 2019	From June 2018

5. Initiatives for ESG

Initiatives for ESG

Page 25

© Shinnihonseiyaku Co., Ltd.

• Following the mission of "a Company that Contributes to Society," we will start engaging in efforts that we can do now.
• In support of the MAKE IT BLUE JAPAN Executive Committee, the Company participated in the "#LIGHT IT BLUE," which sent thanks and encouragement with a blue light to medical professionals fighting on the frontlines against the novel coronavirus pandemic, and we turned the light at the entrance of the head office to blue.
• Similarly, we joined "#FridayOvation," an initiative by Fukuoka City to encourage medical and nursing care workers, and clap our hands to show our gratitude to them at noon every Friday.
• We donated face masks and our products to Fukuoka City and Fukuoka City Council of Social Welfare.
• We donated relief funds to people affected by the torrential rain of July 2020 through municipalities.
• We raised money internally to support the activities of the International Medical Volunteer Organization
  "Japan Heart" in response to the torrential rain disaster of July 2020.

Image of the head office illuminated in blue	Scene from internal fundraising activities	Scene from a donation presentation
ceremony

APPENDIX

Company Overview

Page 27

© Shinnihonseiyaku Co., Ltd.

Company Name		Shinnihonseiyaku Co., Ltd.
Representative		Takahiro Goto, President & Representative Director of the Board Chief Executive Officer
Established		March 1992
Head Office		1-4-7 Otemon, Chuo-ku, Fukuoka City, Fukuoka Prefecture
Capital		3,826 million yen [As of June 30, 2020]
									Masayuki Kakio, Outside Director
		Takahiro Goto, President & Representative Director of	Haruki Murakami, Outside Director
		the Board Chief Executive Officer							Keiichi Zenmyo, Full-time Outside Auditor
Executives		Mitsuyoshi Fukuhara, Executive Director of the Board		Takashi Tanabe, Outside Audit & Supervisory
		Seiichiro Hatori, Director of the Board				Board Member
		Kazuhiro Tagami, Director of the Board			Yuji Nakanishi, Outside Audit & Supervisory Board
									Member
Business Profile		Planning, mail order, store sales and wholesale of cosmetics, health foods, and pharmaceuticals.
Net Sales		33.57 billion yen [FY ended September 2019]
Bases		Fukuoka (head office), Tokyo Office, 12 direct stores, Yoshizuka Office and Logistics Center
Total Assets		18.1 billion yen [As of June 30, 2020]

Introduction to the Company

Vision

Page 28

© Shinnihonseiyaku Co., Ltd.

Creating Healthy and Enriched Lives for People around the World

Mission

Achieving the Greatest Possible Satisfaction and Trust from Our Customers, Making Our Employees Happy and Giving Them Dreams for the Future, as a Company That Contributes to Society, We Aim to Expand Our Efforts Far and Wide without Limitation

Domain

One to One health & beauty-care.

Creator of Lifestyles that Foster Beauty and Good Health Through Database Marketing

History

Page 29

© Shinnihonseiyaku Co., Ltd.

Date	Overview
March 1992	Founded Shinnihonnliving Co., Ltd. (currently Shinnihonseiyaku. Co., Ltd.) as a company that planned and sold daily essentials at Higashi-Ori, Onojo City,
Fukuoka Prefecture (Share capital of 10 million yen).
July 1994	Started sales of health foods by mail order.
June 1996	Relocated the head office to Otogana-Higashi, Onojo City, Fukuoka Prefecture.
December 2000	Commenced sales of basic cosmetics by mail order.
April 2002	Renamed Shinnihonnliving Co., Ltd. to Shinnihonseiyaku Co., Ltd.
March 2003	Opened a logistics center in Yoshizuka, Hakata-ku, Fukuoka City, Fukuoka Prefecture.
April	Relocated the head office to Yoshizuka, Hakata-ku, Fukuoka City, Fukuoka Prefecture.
May 2005 Start sales of cosmetics brand "RAffINE series."
May 2006	Relocated the head office to Akasaka, Chuo-ku, Fukuoka City, Fukuoka Prefecture.
May	Launched RAffINE Perfect One.
October	Established "Iwakuni-Hongo Research Institute" as the base for cultivation and research of medical plants*1.
November	Started sales of pharmaceuticals by mail order.
March 2010	Opened its first direct store in Fukuoka PARCO shopping mall
July	Opened a Tokyo sales office in Uchisaiwaicho, Chiyoda-ku, Tokyo (Currently Tokyo Office).
April 2012	Start wholesale of "RAffINE series."
October 2013	Relocated the head office to Otemon, Chuo-ku, Fukuoka City, Fukuoka Prefecture.
April 2014	Changed the cosmetics brand name to "Perfect One."
December 2016	Start sales overseas by mail order (the Taiwanese market).
February 2017	Was awarded the Steering Committee Award in the 7th "Company I Want to Cherish Most in Japan" Grand Prize.
March	Perfect One All-in-One Gel series became number one*2 in the Japanese all-in-one skin care market.
September 2018	Started cross-border EC in the Chinese market.
September	Was awarded the top prize and the rookie of the year at the beauty award hosted by Taiwan's popular infotainment TV show "Queen."
June 2019	Listed on Tokyo Stock Exchange Mothers.
January 2020	Relocated Tokyo Office to Marunouchi Building in Chiyoda-ku, Tokyo

*1 Integrated it into Yoshizuka Office (R&D Center) in June 2020.

*2 Fuji Keizai "Cosmetics Marketing Handbook 2017" (Actual manufacturer and brand market shares in the moisture section and the all-in-one section in 2016)

Financial Highlights

Page 30

© Shinnihonseiyaku Co., Ltd.

Financial closing date		March 2016	September 2016*	September 2017	September 2018	September 2019	June 2020
	(Q3)
Net sales	Million yen	23,697	12,465	28,372	31,210	33,570	25,573
Ordinary profit	Million yen	1,663	839	2,275	2,499	2,828	2,549
Profit	Million yen	1,082	715	1,477	1,751	1,824	1,593
Share capital	Million yen	200	200	220	250	3,826	3,826
Total number of shares issued	Shares	4,000	4,000	1,003,630	1,009,630	21,611,300	21,611,300
Net assets	Million yen	1,635	2,583	2,685	4,191	12,758	13,717
Total assets	Million yen	6,288	7,379	8,560	9,491	18,575	18,156
Equity ratio	%	25.1	34.2	30.7	43.6	68.7	75.3
Return on equity	%	84.1	34.8	57.3	51.8	21.6	－
Dividend payout ratio	%	55.4	195.8	20.7	20.1	15.4	－
Cash flows from operating	Million yen	－	－	2,372	1,415	1,992	－
activities
Cash flows from investing	Million yen	－	－	(280)	(420)	(943)	－
activities
Cash flows from financing	Million yen	－	－	(1,546)	(419)	6,567	－
activities
Cash and cash equivalents	Million yen	－	－	2,377	2,954	10,576	10,354
at the end of the period
Number of employees (excluding	People	291	326	346	361	354	－
temporary employees)
*The fiscal year ended September 2016 covers the six months from April 2016 to September 2016 due to a change in the accounting period.
Net assets per share	Yen	157.86	252.67	261.97	409.58	590.37	－
Earnings per share	Yen	108.27	71.52	147.69	174.46	113.99	－
Dividend per share	Yen	60.00	140.00	30.50	35.00	17.50	－

This table shows the trends in indicators per share calculated on the assumption that a stock split (250 shares per share) conducted in September 1, 2017, and a stock split (10 shares per share) on March 1, 2019, were implemented at the beginning of the fiscal year ended March 2014. Numbers for the fiscal years ended March 2016 and September 2016 (all numbers for dividend per share) were not audited by Deloitte Touche Tohmatsu LLC.

Page 31

© Shinnihonseiyaku Co., Ltd.

The content presented in this material is based on multiple assumptions and are not intended to promise or guarantee the realization of future planned numbers or measures.

IR&PR Division, Corporate Planning Division, Shinnihonseiyaku Co., Ltd.

TEL: [phone] FAX: [phone]

For inquiries, please use the inquiry form on the Shinnihonseiyaku Co., Ltd. website.

We will reply to you as soon as we can.

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