新日本製薬（4931） – [Delayed]Consolidated Financial Results for the Six Months Ended March 31,2022[Japanese GAAP]

% — — Consolidated Financial Results for the Six Months Ended March 31, 2022 [Japanese GAAP] Company name: Code number: Representative Contact: Shinnihonseiyaku Co., Ltd. 4931 Takahiro Goto, President & Representative Director of the Board and Chief Executive Officer Tetsuya Ono, Corporate Officer, General Manager of Corporate Administration Div. and Finance & Accounting Dept. Stock exchange listing: URL: https://corporate.shinnihonseiyaku.co.jp May 9, 2022 Tokyo Stock Exchange (TEL) +81-92-720-5800 Scheduled date of filing the quarterly securities report: Scheduled date of commencing dividend payments: Availability of supplementary briefing material on quarterly financial results Schedule of quarterly financial results briefing session: May 12, 2022 — Yes Yes (for institutional investors and analysts) (Amounts less than 1 million yen are rounded down.) 1. Consolidated Financial Results for the Six Months Ended March 31, 2022 (October 1, 2021 to March 31, 2022) (1) Consolidated Operating Results (Cumulative) Net Sales Million yen (% indicates the change from the corresponding period of the previous fiscal year.) Profit attributable to owners of parent Million yen Operating profit Ordinary profit Million yen Million yen % % % Six months ended March 31, 2022 Six months ended March 31, 2021 (Note) Comprehensive income 18,001 — — — 1,675 — — — 1,694 — Six months ended March 31, 2022 Six months ended March 31, 2021 1,134 million yen (-%) – million yen (-%) Basic earnings per share Diluted earnings per share — — 1,137 — Six months ended March 31, 2022 Six months ended March 31, 2021 (Note) As the Company began preparing quarterly consolidated financial statements in the third quarter of the fiscal year ended 53.06 52.66 — — Yen Yen September 2021, the figures for the second quarter of the fiscal year ended September 2021 and the rate of change from the same quarter of the previous year are not presented. (2) Consolidated Financial Position Total assets Net assets Equity ratio As of March 31, 2022 As of September 30, 2021 Million yen 22,796 23,197 (Reference) Equity As of March 31, 2022 As of September 30, 2021 Million yen 16,661 16,174 16,502 million yen 15,990 million yen 1st quarter-end 2nd quarter-end Year-end Total Yen — Fiscal year ended September 30, 2021 Fiscal year ending September 30, 2022 Fiscal year ending September 30, 2022 (Forecast) (Note) Revision from the most recently announced dividend forecast: No 0.00 0.00 — Annual dividends 3rd quarter-end Yen Yen — — % 72.4 68.9 Yen 32.50 30.00 Yen 32.50 30.00 2. Dividends 3. Consolidated Financial Results Forecast for the Fiscal Year Ending September 30, 2022 (October 1, 2021 to September 30, 2022) Net Sales Operating profit Ordinary profit Million yen 37,000 % Million yen － 3,095 % Million yen － 3,020 Revision from the most recently announced financial results forecast: No (% indicates changes from the previous fiscal year.) Profit attributable to owners of parent % － % Million yen － 2,067 Basic earnings per share Yen 96.60 2. As the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) and other standards have been applied since the beginning of the fiscal year ending September 30, 2022, the financial result forecast reflects figures based on the above standards. Accordingly, percentage changes presenting the year-on-year increase (decrease) from financial results prior to the application of the standards are not presented. * Notes (1) Significant changes to subsidiaries during the first six months of the fiscal year under review (transfers of Full year (Notes) 1. specific subsidiaries with changes in the scope of consolidation) New company __ company(ies) (company name) Excluded company __ company(ies) (company name) (2) Accounting policies adopted specially for the preparation of the consolidated quarterly financial statements: (3) Changes in accounting policies, changes in accounting estimates and retrospective restatement 1) Changes in accounting policies due to the revision of accounting standards: 2) Changes in accounting policies other than 1) above: 3) Changes in accounting estimates: 4) Retrospective restatement: (3) Total number of shares issued (common stock) No No Yes No No No 1) 2) Total number of shares issued at the end of the period (including treasury shares) Total number of treasury shares at the end of the period 3) Average number of shares during the period (cumulative) As of March 31, 2022 As of March 31, 2022 Six months ended March 31, 2022 21,855,200 shares 398,715 shares 21,433,096 shares As of September 30, 2021 As of September 30, 2021 Six months ended March 31, 2021 21,855,200 shares 451,385 shares 21,565,687 shares * These quarterly financial results are outside the scope of quarterly review by certified public accountants or auditing firms. * Explanation on the proper use of financial results forecast and other notes Financial results forecasts and other forward-looking statements herein are based on currently available information and certain assumptions that the Company deems reasonable, and actual results, etc. may differ significantly from these forecasts due to various factors. (How to obtain the Supplementary Briefing Material and the contents of the financial results briefing) The Shinnihonseiyaku Group plans to stream online the financial results briefing for institutional investors and analysts on Monday, May 9, 2022. The supplementary briefing material used in this briefing is disclosed today on TDnet and is posted on the Company’s website. Table of Contents 1. Qualitative Information for Quarterly Financial Results for the Period Under Review ……………………………………… 2 (1) Explanation on Business Results ………………………………………………………………………………………………………….. 2 (2) Explanation on Financial Position ………………………………………………………………………………………………………… 2 (3) Explanation on Consolidated Financial Results Forecast and Other Forward-Looking Information ………………. 2 2. Quarterly Consolidated Financial Statements and Primary Notes …………………………………………………………………… 3 (1) Quarterly Consolidated Balance Sheet ………………………………………………………………………………………………….. 3 (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income ………………………………………………………………………………………………………………………. 5 (3) Notes to the Quarterly Consolidated Financial Statements……………………………………………………………………….. 7 (Notes on going concern assumption)…………………………………………………………………………………………………………. 7 (Notes when there was a substantial change in the amount of shareholders’ equity) …………………………………………. 7 (Changes in accounting policies) ……………………………………………………………………………………………………………….. 7 (Segment information, etc.) ………………………………………………………………………………………………………………………. 8 – 1 – 1. Qualitative Information for Quarterly Financial Results for the Period Under Review (1) Explanation on Business Results During the second quarter under review, the Japanese economy saw a global resurgence of infections by the Omicron variant of COVID-19. Further, the outlook remained uncertain mainly due to changes to the international situation and surging prices of crude oil and raw materials. In the cosmetics and other industries as well, where the Company has expanded business, there are concerns about the impacts of surges in crude oil and raw material prices. However, the performance of the Group has not been affected yet. In this market environment, the Group worked to promote key challenges in accordance with “VISION2025,” the four-year medium-term management plan starting from the fiscal year under review. Mail order drove net sales due to the successful acquisition of new customers by “PERFECT ONE Glow & Cover Cushion Foundation” as a result of aggressive advertising that has continued from the first quarter. In addition, the number of customers who bought multiple products on a regular basis rose as a result of strengthening product proposals and sales promotion by communicators in the call center, which led to an increase in spending per customer. In EC sales, sales at external malls stayed firm due to stepping up sales promotional measures through campaigns and social media. In direct store sales and wholesales, the number of customers remained low under a quasi-state of emergency in the wake of the spread of infections by the Omicron variant. On the other hand, the Group was able to see a steady increase in the number of stores that handled brands to be developed, such as “PERFECT ONE FOCUS,” a skincare brand for young people and “BODY AURA,” a healthcare brand for people in their 30s to 40s. In overseas sales, as we engaged in business activities while closely monitoring the status of economic activities in each region, sales of “PERFECT ONE FOCUS” started in China through cross-border EC, expanding and reinforcing the lineup of products handled. As a result of the foregoing, for the first six months of the fiscal year under review, net sales were 18,001 million yen, operating profit was 1,675 million yen, ordinary profit was 1,694 million yen, and profit attributable to owners of parent was 1,137 million yen. The Group’s business segments consist of Mail Order, Direct Store Sales/Wholesale, and Overseas Sales of cosmetics and merchandise related to healthcare. As the ratio of Direct Sales/Wholesale and Overseas Sales to overall sales is insignificant, and their materiality as disclosed information is low, a description by business segment has been omitted. (2) Explanation on Financial Position Total assets as of the end of the second quarter under review were 22,796 million yen, a decrease of 400 million yen from the end of the previous fiscal year. This was mainly due to a fall of 614 million yen in cash and deposits and a drop of 407 million yen in accounts receivable – trade despite an increase of 489 million yen in merchandise and an increase of 139 million yen in Other of intangible assets in non-current assets (software in progress, etc.). Liabilities totaled 6,135 million yen, a decrease of 887 million yen from the end of the previous fiscal year. This was mainly due to a fall of 259 million yen in accounts payable – other, a decrease of 213 million yen in income taxes payable and a drop of 199 million yen in long-term borrowings. Net assets totaled 16,661 million yen, an increase of 487 million yen from the end of the previous fiscal year. This was mainly due to an increase of 441 million yen in retained earnings. (3) Explanation on Consolidated Financial Results Forecast and Other Forward-Looking Information The forecast for the fiscal year ending September 2022 has not changed from the forecast announced in “Non-Consolidated Financial Results for the Fiscal Year Ended September 30, 2021” dated November 12, 2021. Financial results and other forward-looking statements herein are based on information available to the Company and certain assumptions deemed reasonable at the date of publication of this document. Actual results, etc. may differ significantly from these forecasts due to various factors. – 2 – 2. Quarterly Consolidated Financial Statements and Primary Notes (1) Quarterly Consolidated Balance Sheet Previous consolidated fiscal year (As of September 30, 2021) (Unit: Million yen) Second quarter of the current fiscal year (As of March 31, 2022) Assets Current assets Cash and deposits Accounts receivable – trade Merchandise Other Allowance for doubtful accounts Total current assets Non-current assets Property, plant and equipment Intangible assets Goodwill Other Total intangible assets Investments and other assets Total non-current assets Total assets 13,652 3,196 1,264 483 (67) 18,528 2,157 1,107 327 1,435 1,075 4,669 23,197 13,037 2,788 1,753 578 (61) 18,096 2,111 1,050 466 1,517 1,070 4,700 22,796 – 3 – Liabilities Current liabilities Accounts payable – trade Current portion of long-term borrowings Accounts payable – other Income taxes payable Provision for bonuses Provision for points card certificates Provision for sales returns Other Total current liabilities Non-current liabilities Long-term borrowings Retirement benefit liability Other Total non-current liabilities Total liabilities Net assets Shareholders’ equity Share capital Capital surplus Retained earnings Treasury shares Total shareholders’ equity Accumulated other comprehensive income Remeasurements of defined benefit plans Total accumulated other comprehensive income Share acquisition rights Total net assets Total liabilities and net assets Previous consolidated fiscal year (As of September 30, 2021) (Unit: Million yen) Second quarter of the current fiscal year (As of March 31, 2022) 527 398 2,108 739 242 303 37 354 4,712 1,839 171 299 2,311 7,023 4,158 4,150 8,532 (852) 15,990 (0) (0) 184 16,174 23,197 531 398 1,849 525 172 － － 536 4,014 1,640 178 301 2,121 6,135 4,158 4,125 8,974 (752) 16,506 (3) (3) 158 16,661 22,796 – 4 – (2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income Quarterly Consolidated Statement of Income First six months of the fiscal year (Unit: Million yen) First six months of the current fiscal year (From October 1, 2021 to March 31, 2022) Selling, general and administrative expenses Net sales Cost of sales Gross profit Operating profit Non-operating income Dividend income Rental income Gain on sale of non-current assets Other Total non-operating income Non-operating expenses Interest expenses Foreign exchange losses Loss on valuation of investment securities Other Total non-operating expenses Ordinary profit Extraordinary income Gain on reversal of share acquisition rights Total extraordinary income Extraordinary losses Provision of allowance for investment loss Total extraordinary losses Profit before income taxes Income taxes – current Income taxes – deferred Total income taxes Profit Profit attributable to owners of parent 18,001 3,222 14,778 13,102 1,675 0 5 11 6 24 2 1 1 0 5 0 0 1,694 12 12 1,682 469 75 544 1,137 1,137 – 5 – Quarterly Consolidated Statement of Comprehensive Income First six months of the fiscal year Profit Other comprehensive income Remeasurements of defined benefit plans Total other comprehensive income Comprehensive income (Breakdown) Comprehensive income attributable to owners of parent (Unit: Million yen) First six months of the current fiscal year (From October 1, 2021 to March 31, 2022) 1,137 (3) (3) 1,134 1,134 – 6 – (3) Notes to the Quarterly Consolidated Financial Statements (Notes on going concern assumption) Not applicable (Notes when there was a substantial change in the amount of shareholders’ equity) Not applicable (Changes in accounting policies) (Application of the Accounting Standard for Revenue Recognition) The Company has been applying the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 released on March 31, 2021, hereinafter referred to as “Revenue Recognition Accounting Standard”) from the beginning of the first quarter of the fiscal year under review. Revenue is recognized on the basis of the amount expected to be received from a customer in exchange for the promised goods or services at the time when control of the goods or services is transferred to the customer. In the case of domestic sales where the time period between shipment of the goods and the transfer of control of the goods to the customer is a normal period, revenue is recognized at the time of shipment by means of applying the alternative treatment set forth in Paragraph 98 of the “Implementation Guidance on Accounting Standard for Revenue Recognition.” The main changes resulting from the application of the Revenue Recognition Accounting Standard are as follows. – Revenue Recognition Related to the Company’s Points System Points granted to customers at the time of the sale of products were previously recorded as provision for points card certificates in the amount equivalent to the points expected to be used in the future in order to prepare for sales discounts resulting from the use of the points granted. However, the points granted are now recognized as obligations to customers and recorded as contractual liabilities. – Revenue Recognition for Delivery Services in Mail Order Delivery charges received from customers were previously deducted from selling, general and administrative expenses, but the charges are now recognized as revenue because delivery services are included in performance obligations in providing products. With regard to the application of the Revenue Recognition Accounting Standard, the Company is in accordance with the transitional provisions set forth in Paragraph 84 of the standards. The new accounting policy has been applied to the balance at the beginning of the first quarter under review after the cumulative effects of retroactively applying the new accounting policy to the accounting periods prior to the beginning of the first quarter under review were added to or subtracted from retained earnings as of the beginning of the first quarter under review. However, the new accounting policy has not been applied retroactively to contracts for which almost all of the revenue amounts were recognized in accordance with previous treatment by the means set forth in Paragraph 86 of the Revenue Recognition Accounting Standard before the beginning of the first quarter under review. As a result, the impact on profits and losses for the second quarter under review is minimal. Also, there is no impact on the balance of retained earnings as of the beginning of the fiscal year under review. As a result of the application of the Revenue Recognition Accounting Standard, “Provision for points card certificates” included in “Current liabilities” in the consolidated balance sheet for the previous fiscal year is now included in “Other” under “Current liabilities” as contractual liabilities starting from the first quarter under review. In accordance with the transitional treatment prescribed in Paragraph 89-2 of the Revenue Recognition Accounting Standard, no reclassification has been made for the previous fiscal year using a new presentation method. (Application of Accounting Standard for Fair Value Measurement) The Company has been applying the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30 released on July 4, 2019, hereinafter referred to as “Fair Value Measurement Accounting Standard”) from the beginning of the first quarter under review. In accordance with the transitional treatments stipulated in Paragraph 19 of the Fair Value Measurement Accounting Standard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10 released on July 4, 2019), the new accounting policies stipulated in the Fair Value Measurement Accounting Standard will continue to be applied in the future. There is no impact on quarterly consolidated financial statements. – 7 – (Segment information, etc.) The Group’s business segments consist of Mail Order, Direct Store Sales/Wholesale, and Overseas Sales of cosmetics and merchandise related to healthcare. As the ratio of Direct Store Sales/Wholesale and Overseas Sales to overall sales is insignificant, and their materiality as disclosed information is low, a description by business segment has been omitted. – 8 –