0
Financial Overview for the Second Quarter of the Fiscal Year Ending December 31, 2018 August 3, 2018 Akihiro Kobayashi President & Chief Operating Officer Kobayashi Pharmaceutical Co., Ltd. Table of Contents 1/58 11
Consolidated Results for the Second Quarter of the Fiscal Year Ending December 31, 2018 Forecasts for Year Ending December 2018 Returns to Shareholders Creation of Social Value through Business Activities ESG Progress of the Medium-Term Management Plan for 2017 to 2019 Investment in the Construction of New Plants under the Growth Strategy 2/58 2
Consolidated Results for the Second Quarter of the Fiscal Year Ending December 31, 2018 Consolidated Results for the Second Quarter of the 3/58 33 Fiscal Year Ending December 31, 2018
Achieved significant growth in both revenue and income
2Q FY2018 2Q FY2017 (Jan. to Jun. 2018) (Jan. to Jun. 2017)
Amount Margin Amount Difference Percentage (million yen) (%) (million yen) (million yen) (%)
Net sales 72,678 - 67,307 5,371 108.0%
Operating 11,602 16.0% 10,363 1,239 112.0% income Ordinary 11,533 15.9% 10,244 1,289 112.6% income
Net income 7,629 10.5% 7,037 592 108.4%
EPS 96.58 yen - 89.44 yen 7.14 yen 108.0% Highlights of Consolidated Results [Net sales] 4/58 44
(4) Growth in direct marketing business (+0.1 Increases billion yen) Year-on-year (5) Decrease in the return of Kiribai’s body change warmers (+0.4 billion yen) 108.0%
(1) Decrease in sales of existing
products in Japan (-1.9 billion yen) Decreases Highlights of Consolidated Results [Operating income] 5/58 55 Assisted growth by actively investing in advertisements and achieved a
sharp increase in income. Year-on-year (Unit: 100 million yen) change 112.0% +6 +39 +1 -2 -6 116 -10 103 -7 -1 -3 -4 - - - Factor for increase - - - Factor for decrease
Production costs SGA expenses
Loss on Loss
disposal
expenses
Advertising
Other costs Other
of of inventory
expenses
Operating Operating
income for income for income
Priceincrease
Salesincrease
R&D expenses R&D
Cost reduction Cost
Other expenses Other
Personnel costs Personnel
Sales promotion Sales
Jan. to to Jan. 2017Jun. to Jan. 2018Jun. Segment Results 6/58 66
The three major businesses (Domestic Consumer Products, Overseas Consumer Products, and Direct Marketing Businesses) achieved sales increases.
Domestic Consumer Products Business Overseas Consumer Direct Marketing (Sales at stores in Japan and Products Business Business Kiribai Chemical) Year-on- Year-on- Year-on- Amount Amount Amount year year year (million yen) (million yen) (million yen) change (%) change (%) change (%)
57,382 106.4% Net sales 9,646 122.0% 5,109 103.4% *55,715 *105.8%
Operating 10,985 110.3% Comparable 154 271.1% 76 period in 2017 income *11,324 *109.3% -67
* Net income and operating income excluding Kiribai Chemical 7/58 7 Domestic Consumer Products Business (Sales at stores in Japan and Kiribai Chemical) Performance of Domestic Business 8/58 88
Net sales : 57.3 billion yen (106.4% year on year) Operating income: 10.9 billion yen (110.3% year on year)
(100 million yen)
400 80 20 18.5% 19.1%
200 40 10
0 0 0 Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Sales by Business Category 9/58 99
Healthcare and household products and body warmers achieved sales increases.
2nd Quarter 2nd Quarter FY2017 FY2018 (Jan. to Jun. 2017) (Jan. to Jun. 2018)
Amount Amount Difference Percentage (million yen) (million yen) (million yen) (%)
Healthcare products 29,329 27,483 1,845 106.7%
Household products 24,005 22,680 1,324 105.8%
Skin care products 2,959 2,983 -24 99.2%
Body warmers 1,088 768 319 141.7%
Total 57,382 53,915 3,466 106.4% Inbound Demand 10/581010
Inbound demand is estimated to be 5.2 billion yen. In addition to OTC drugs, demand for household products expanded.
Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. 2015 2016 2017 2018
Pharmaceuticals Supplements Household products 11/5811
Overseas Consumer Products Business Performance of Overseas Business 12/581212
Sales at stores and sales via EC expanded sharply in mainland China. Net sales : 9.6 billion yen (122.0% year on year) Operating income: 0.1 billion yen (271.1% year on year)
(100 million yen)
15 79 80
11.8% 13.3% 10
40 5
0 0 Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. 2014 2015 2016 2017 2018 13/5813
Direct Marketing Business Performance of Direct Marketing Business 14/581414
Supplements and skin care products sold well. Net sales : 5.1 billion yen (103.4% year on year) Operating income: 0.07 billion yen (an operating loss of 0.06 billion yen in the comparable period in 2017)
(100 million yen)
20
Year-on-year change 0 Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. Jan. to Jun. 106% 2014 2015 2016 2017 2018 15/5815
Forecasts for Consolidated Results for Year Ending December 2018 Forecasts for Consolidated Results for 16/581616 Year Ending December 2018 The Company aims to achieve the 21st consecutive term of growth with increased net sales and increased operating income.
Medium-term Management FY2018 forecasts FY2017 results Plan for 2017–2019 (announced on November 1, (Jan. to Dec. 2018) (Jan. to Dec. 2017) 2016) Amount Margin Amount Percentage Amount (million yen) (%) (million yen) (%) (million yen) Net sales 163,000 - 156,761 104.0% 165,000 Operating 23,700 14.5% 22,925 103.4% income 23,000 Ordinary 24,800 15.2% 24,191 102.5% income - Net income 17,000 10.4% 15,863 107.2% 17,000
EPS 215.33 yen - 201.31 yen 107.0% -
ROE - - 10.7% - Over 10.0% 17/5817
Returns to Shareholders Changes in Dividend Payment 18/581818
The Company increases its interim dividend from 30 yen to 31 yen and plans to pay 61 yen for the full year. The aim is to achieve an increase in dividend payment for 20 consecutive terms in FY2018.
(Yen) Interim dividend: 31 yen (to be paid in Sep. 2018) (%) 70 40 Year-end dividend: 30 yen (to be paid in Mar. 2019) 61 Dividend amount 60 58 Dividend pay-out ratio 30 50
40 28.3% 20 30
20 10
10
0 0 Mar. 1999 'Dec. 2018 (Forecast) 19/5819
Creation of Social Value through Business Activities Creation of Social Value 20/582020
[Creation of value for each customer] Solve customers’ problems related to their living and health They must endure the problems unless the Kobayashi Pharmaceutical Group develops and markets products.
[Leading to the creation of social value] The Kobayashi Pharmaceutical Group will contribute to the solution of societal problems lying behind customers’ problems. Creation of Social Value 21/582121
Solution of troubles Creation of Social Value
Alleviating symptoms of “The medicine has freed me menopausal disorders from anxiety and worry.” “The medicine has enabled Abrupt perspiration me to live vigorously and Irritation positively.” “The medicine has enabled Languid me to concentrate on my Stiff shoulders and job without worry.” headache Helping women to play an active role. 22/5822
ESG Efforts (1) Realizing growth 23/582323
A superior delegates tasks to his/her subordinate and periodically tells him/her, “You have grown on this point.”
While talking with a superior, a subordinate prepares his/her future goals and action plan to achieve the goals.
A subordinate looks back on what he/she has achieved, and a A subordinate carries superior tells his/her out his/her action plan. subordinate what has changed. A superior helps his/her Visualize growth = Realize growth subordinate.
Together with a superior, a subordinate checks the progress of his/her action plan and revises the plan as necessary. Efforts (1) Realizing growth 24/582424
The Company compiles tips for dialogue with subordinates and distributes a collection of tips to superiors, since there are many superiors that are not familiar with dialogue with subordinates.
For superiors Five tips for dialogue with a subordinate Always prepare to talk about growth with a Observe a subordinate’s behavior and Tip No. 1: subordinate. statements. Sincerely tell both good things and bad things to each Begin with an exchange of opinions by telling Tip No. 2: other. facts objectively.
Tip No. 3: Let a subordinate express his/her opinion in his/her Don’t jump to a conclusion, since there are own words. always differences and gaps in thinking.
Tip No. 4: Accept subordinate’s idea to execute his/her plan. Increase choices by pooling ideas together.
Tip No. 5: Tell a subordinate what you expect him/her to achieve. Express in words the desires and thinking you want to convey as a superior.
• In December 2018, the Company held a meeting to share with all managers know-how of dialogues and successful examples. • The Company hopes to evolve its efforts into the Kobayashi Pharmaceutical Group original human development model. Efforts (2): Strengthening of governance 25/582525
Kobayashi Pharmaceutical will continuously strengthen its corporate governance from various aspects, including the composition of the Board of Directors and the quantity and quality of discussions, and continue to raise the transparency of management.
The Company’s main efforts so far 2008 Elected outside director (one person) 2010 Established the Compensation Advisory Committee 2012 Established the Nomination Committee Increased the number of outside directors (from one to two); and then 2013 increased the number of outside directors to three in 2016 Held a committee to evaluate the Board of Directors * The committee consists of three outside directors 2017 and two outside auditors. * The committee extracts issues of the Board of Directors and brings the issues to the Board of Directors for discussion. Commenced tackling improvement according to the issues extracted the above committee 2018 * Increased the agenda concerning business strategy and Committee to evaluate ESG and secured time the Board of Directors * Clarified the annual discussion schedule 26/5826
Progress of the Medium-Term Management Plan for 2017 to 2019 Outline of the Medium-Term Management 27/5827 Plan for 2017 to 2019 27
Net sales 165 billion yen 144.8 billion yen 114%
Operating income 23 billion yen 18.4 billion yen 124%
Net income 17 billion yen 15 billion yen 113%
ROE Over 10% 10% -
*1: The financial targets are minimum targets; the Company will aim for higher results. *2: The results of the comparable period in 2016 are the total of the results for January to December 2016. *3: Comparison with results for January to December 2016 Outline of the Medium-Term Management 28/5828 Plan for 2017 to 2019 28
1. Promote the four growth businesses.*
2. Invest in growth for the future.
3. Develop and cultivate new market creator products.
4. Aim to be a company where employees can feel growth.
* Four growth businesses: Overseas, Direct Marketing, Skin Care, and Kampo Outline of strategies: Promote the Four Growth Businesses 29/582929
FY2019 Change from the comparable Overseas business target amount period in 2016* Strengthen the OTC Pharmaceuticals business mainly in North 27 billion America and China. 150% Cultivate products such as Netsusama Sheet, Anmeltz and body yen warmers.
FY2019 Change from the comparable Direct Marketing business target amount period in 2016* Develop new high-profile products that would lead to new 12 billion customer acquisition. 126% Develop brands by mixing sales at stores and by direct yen marketing.
FY2019 Change from the comparable Skin Care business target amount period in 2016* Create a brand that would become the third pillar after Keshimin 9 billion 167% and Eau de Muge. yen
FY2019 Change from the comparable Kampo business target amount period in 2016* Continue to pursue the development of products that are easier 12.5 billion for customers to choose, depending on their constitution and 113% symptoms. yen * Comparison to results for January to December 2016 Progress of the Four Growth Businesses 30/583030 (as of the end of Dec. 2017) Comparable FY2017 2019 period in results target 2016 results Overseas 17.7 21.7 billion yen 27 billion billion business yen Progress rate 44% yen
Direct 9.5 10.1 billion yen 12 Marketing billion billion yen Progress rate 27% yen business Skin Care 5.4 6.0 billion yen 9 billion billion business yen Progress rate 17% yen
Achieved the target Kampo 11.2 12.7 billion yen 12.5 billion billion business yen Progress rate 124% yen
* The progress rates are based on the results for Jan. to Dec. 2016, compared with the target values for FY2019. Four Growth Businesses (Overseas Business) 31/583131
FY2019 target FY2017 results FY2017 What the Company is striving to achieve: amount Progress rate evaluation Strengthen product marketing, such as body warmers 21.7 and Netsusama Sheet in North America, China, and 27 billion yen Southeast Asia. billion yen ◎ Strengthen the OTC Pharmaceuticals business. 44% Evaluation at 2Q [United States] Strengthen the OTC of FY ending Dec. 2018 Pharmaceuticals business ◎
In the fall of 2018, the Company plans to Current product, MAX FREEZE launch MAX FREEZE with a new formula that delivers more pain relieving power. Four Growth Businesses (Overseas Business) 32/583232
[Mainland in China (1)] Sales increased further in both sales at stores and sales via EC. • In addition to body warmers, sales of menstrual pain killers Sales at stores and pharmaceuticals grew. (Jan. to Jun. 2018) • The Netsusama Sheet market expanded, leading to an increase in sales. 1.5 billion yen (Year-on-year change 247%)
Sales via EC • Sales, mainly imported goods from Japan, expanded. *Cross-border EC included (Jan. to Jun. 2018)
1 billion yen (Year-on-year change 220%) Four Growth Businesses (Overseas Business) 33/583333
[Mainland in China (2)] Laid a foundation for the introduction of OTC pharmaceuticals Turned “Jiangsu Zhongdan Pharmaceutical Co., Jun. 8, Ltd.” into a subsidiary 2018 & The company name was changed to “Jiangsu Kobayashi Pharmaceutical Co., Ltd.”
The Kobayashi Pharmaceutical Group plans to market OTC pharmaceuticals in the Chinese market. Four Growth Businesses (Direct Marketing Business) 34/583434
FY2019 target FY2017 results Evaluation What the Company is striving to achieve: amount Progress rate 10.1 Develop brands by mixing sales at stores and by direct marketing 12.0 (example: Salacia). billion yen billion yen △ Concentrate advertisement investment on high priced products. 27% Cultivate brands both by Actively use advertisement Evaluation at 2Q of FY ending direct marketing and at stores expenses on high priced Dec. 2018 to maximize brand values. products. △
Sales expansion Four Growth Businesses (Skin Care Business) 35/583535
FY2019 target FY2017 results Evaluation What the Company is striving to achieve: amount Progress rate 6 Cultivate Madame Juju and Bioil brands. 9 Develop and cultivate the brands and establish their unique billion yen billion yen △ market positions. 17%
Evaluation at 2Q First pillar Keshimin Third pillar Fourth pillar of FY ending Dec. 2018 ×
Second pillar Eau de Muge
Madame Juju Bioil Four Growth Businesses (Kampo Business) 36/583636
FY2019 target FY2017 results Evaluation What the Company is striving to achieve: amount Progress rate 12.7 The Company continues the development and marketing 12.5 Achieved billion yen the target of new products under an easy-to-understand concept. billion yen 124% Evaluation at 2Q of FY ending New products Existing products Dec. 2018
Sales of Hemorindo, a Sales of existing products expanded sharply ◎ medicine to cure blind piles thanks to packages and advertisements under an that was launched in the easy-to-understand concept. fall 2017, grew steadily. Growth of Domestic Business 37/583737
Progress toward What the Company is striving to achieve: the target Health care products
◎Expansion of the medicated skin care products market ◎Efforts to develop switch OTC ◎ pharmaceuticals (which were previously sold as a prescription drug but are now available as an OTC drug) ◎Strengthening of the development of products that create new markets Household products ◎Launch of high value-added products ◎Development of competitive products in a short time ○ ◎Attempts to create new markets ◎Arrangement to attract inbound demand Invest in Growth for the Future 38/583838
Medium-Term Management Plan for 2017 to 2019 Items Investment budget Invest in Growth for the (2017–2019) Future M&A 30 billion yen Announced in November 2016 R&D and new businesses 3 billion yen
In addition to the above Schedule new large-scale investments in view of the global development of OTC drugs Maximum investment Challenges Actions budget (within five years) Increasing production capacity to respond to the expected increase in demand Building of a new production Manufacturing in compliance with global standards plant (PIC/S) 30 Trade mark management in Expansion of the brands to overseas markets, and individual countries, security actions to cope with global risks billion yen control and other measures Capacity shortage in the current Central R&D Relocation of the Central R&D Laboratory Laboratory * The above figures were calculated in July 2018. The amount of investment may be changed in the future. 39
Investment in the Construction of New Plants under the Growth Strategy
Tetsuji Nishioka Executive Officer Senior General Manager, Manufacturing Division Table of Contents 39/584040
1. Outline of Manufacturing Division 2. Necessity of Investment 3. Sites Proposed for New Plants 4. Schedule for Construction of New Plants 5. Amount of Capital Investment and Depreciation 40/5841
1. Outline of Manufacturing Division (1) Overall View (2) Main Manufacturing Bases in Japan (3) Overseas Manufacturing Bases (1) Overall View of Manufacturing Bases 41/584242
KOBAYASHI AMERICA Hefei Kobayashi Daily Products Co., Ltd. MANUFACTURING LLC
Jiangsu Kobayashi United States China Pharmaceutical Co., Ltd. Toyama Kobayashi Pharmaceutical Co., Ltd. Hefei Kobayashi Kobayashi Pharmaceutical Sendai Kobayashi Plax Co., Ltd. Pharmaceutical Co., Ltd. Pharmaceutical Co., Ltd. Kiribai Kobayashi Pharmaceutical Co., Ltd. (Sanda Plant) Kiribai Kobayashi Pharmaceutical Co., Ltd. (Fujioka Plant)
Ehime Kobayashi Aloe Pharmaceutical Japan : 8 plants Pharmaceutical Co., Ltd. Co., Ltd. Overseas: 4 plants Kobayashi Pharmaceutical Co., Ltd. Osaka Plant (2) Main Manufacturing Bases in Japan 42/584343 * As of the end of 2017 * The number of employees includes temporary employees (such as part-time employers). Toyama Kobayashi Pharmaceutical Co., Ltd. Sendai Kobayashi Number of employees: 400 Pharmaceutical Co., Ltd. Number of employees: 288
Kiribai Kobayashi Pharmaceutical Co., Ltd. Number of employees: 140 Ehime Kobayashi Pharmaceutical Co., Ltd. Number of employees: 126 (3) Overseas Manufacturing Bases 43/584444 * As of the end of 2017 Hefei Kobayashi Daily Products * The number of employees includes temporary employees Co., Ltd. (such as part-time employers). Number of employees: 389 KOBAYASHI AMERICA MANUFACTURING LLC Number of employees: 106
Jiangsu Kobayashi China Pharmaceutical Co., Ltd. OTC pharmaceuticals
United States Hefei Kobayashi Pharmaceutical Co., Ltd. Number of employees: 49 Organizational Chart of Manufacturing Division 44/584545
* As of the end of 2017 * The number of employees includes temporary employees (such as part-time employers). Number of employees: around 2,200 Manufacturing Division
Development and Procurement Plant Administration Division Administration Division
KAM
Department Department Group
Osaka PlantOsaka
SCM Department
Aloe Pharmaceutical
Development Group
Shanghai Kobayashi
Pharmaceutical Group
Mail Technology Order
ProcurementDepartment
Pharmaceutical Business
Kobayashi Pharmaceutical Plax
Quality ControlQuality Department Hefei Kobayashi Daily Products
Hefei Kobayashi Pharmaceutical
Ehime Kobayashi Pharmaceutical Production Technology and
Kiribai Kobayashi Pharmaceutical
Sendai Kobayashi Pharmaceutical
Overseas DevelopmentOverseas Group Toyama Kobayashi Pharmaceutical
Manufacturing Strategy Department
Health Care Technology Development
Kobayashi Pharmaceutical Distribution
Daily Product Technology Development
Container and Package Technology Product Development Division Plant Division 45/5846
2. Necessity of Investment (1) Coping with changes in the pharmaceutical standards (2) Securing sites for in-house manufacturing (3) Streamlining investment due to a more difficult recruiting environment (1) Changes in the Pharmaceutical Standards 46/584747
[What is PIC/S?] PIC/S: Pharmaceutical Inspection Convention and Pharmaceutical Inspection Co-operation Scheme PIC/S is an unofficial cooperative framework among inspection authorities established with the aim of mutual certification. Around 50 countries, mainly EU countries and the United States, have joined the PIC/S. Japan became a member of PIC/S in 2014.
GMP in Asian EUGMP countries Pharmaceuticals cGMP JGMP exported to overseas
“PIC/S” Coping with PIC/S is essential for global development of the Company’s pharmaceutical business. (1) Changes in the Pharmaceutical Standards 47/584848
Cross contamination
In-house manufacturing OEM: Small Large Sales around 38% In-house manufacturing: OEM around 62% Small
Operating income To expand operating income, the Company in-house manufactures products that bring in large sales. (2) Growth through In-House Manufacturing 49/585050 The Company increases in-house manufacturing, mainly Kampo products, its focused business area.
Candidate product A Candidate product C
Candidate product B Candidate product D
* Example of a product image (2) Growth through In-House Manufacturing 50/585151 Existing plants operate at full capacity. Toyama Kobayashi Pharmaceutical Capacity utilization ratio 10,000
8,000 ) 2 6,000
4,000 Area (m
2,000
0 20142014年 20152015年 20162016年 20172017年 20182018年 生産エリア面積（㎡）Manufacturing area (m2) 使用率（％）Utilization ratio (%) Sendai Kobayashi Pharmaceutical
8,000 Capacity utilization ratio
6,000
) 2
4,000 Area Area (m 2,000
0 20142014年 20152015年 20162016年 20172017年 20182018年 Manufacturing生産エリア面積（㎡） area (m2) 使用率（％）Utilization ratio (%) The Company needs to expand its manufacturing capacity with its eyes focused on the future. (3) A More Difficult Recruiting Environment 51/585252
The effective opening-to-application ratio continues to rise. What the Company has done so far: (10,000 persons) Effective opening- • Moved up the employment of contracted to-application ratio employees without a fixed date • Accelerated employment as a full-time
employee
application ratio) application
-
to -
The Company needs to do more to (Effectiveopening
(Effective opening and effective application) effective and (Effectiveopening secure enough manpower.
The Company will streamline * Source: The graph is quoted from “Employment Security Statistics (July 2017)” on the website of the its operations further. Ministry of Health, Labour and Welfare. (3) Improvement of Productivity through Streamlining 52/585353 What the Company has done so far:
Image Robotization processing
Use of IoT and AI
Raw materials Autonomous IoT will run out ordering What the Company plans to do: soon!
Raw Raw materials materials suppliers
• Improvement of 6. Filing
9. Delivery AI quality
Order taking
7. Packaging
dispensation
1. Manufacturing and 4. Weighing
raw materials • Improvement of
resourceplanning 5. Bulkinspection
8. Deliveryinspection productivity 2.raw Orderingmaterials
3. Incoming inspection of of 3.inspection Incoming • Reduction of manufacturing costs 53/5854
3. Sites Proposed for New Plants Sites Proposed for New Plants 54/585555 The Company plans to construct new plants within the premises of Toyama Kobayashi Pharmaceutical and Sendai Kobayashi Pharmaceutical.
Toyama Kobayashi Sendai Kobayashi Pharmaceutical Pharmaceutical Ground area: Ground area: 2 around 50,000 m around 100,000 m2
Site for a new plant Site for a new plant
Total floor area: around 14,000 m2 Total floor area: around 16,000 m2 around 31,000 m2 around 34,000 m2
* The above figures may change in the future, since the plan was prepared in July 2018. 55/5856
4. Schedule for Construction of New Plants Schedule for Construction of New Plants 56/585757
Toyama Kobayashi Pharmaceutical: The construction will be completed in 2020. Sendai Kobayashi Pharmaceutical: The construction will be completed in 2021.
2018 2019 2020 2021 2022 2023
Toyama Kobayashi Design Construction Operation Pharmaceutical
Sendai Kobayashi Design Construction Operation Pharmaceutical
* The above schedule may change in the future, since the plan was prepared in July 2018. 57/5858
5. Amount of Capital Investment and Depreciation Amount of Capital Investment and Depreciation 58/585959
Amounts to be invested in the construction of new plants (unit: 100 million yen)
FY ending FY ending FY ending FY ending FY ending Total Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Toyama 35 55 10 - - 100 Sendai - 65 30 5 - 100 Total 35 120 40 5 - 200
Depreciation of new plants (unit: 100 million yen)
FY ending FY ending FY ending FY ending FY ending Total Dec. 2019 Dec. 2020 Dec. 2021 Dec. 2022 Dec. 2023 Toyama 2 9 7 5 23 Sendai 6 7 5 18 Total 2 15 14 10 41
* The above figures were calculated in July 2018. The amount of capital investment and depreciation may change in the future. 60
Supplement Breakdown of Sales in the Overseas 1/36161 Consumer Products Business
Other Other 14% United States 22% Body warmers 25% 29% Southeast Asia Net sales Net sales Pharma- % 9.6 billion yen 9.6 billion yen 21 ceuticals 19%
China and Hong Kong Netsusama Sheet 40% 30%
* Results for Jan. to Jun. 2018 Changes in Capital Investment and 2/36262 Depreciation
(100 million yen) (100 million yen) 80 50
62 40 60 35 33 30 30 43 44 30 26 40 35 33 20
20 10
0 0 FY ended FY ended FY ended FY ended FY ending FY ended FY ended FY ended FY ended FY ending Mar. 2015 Mar. 2016 Dec. 2016 Dec. 2017 Dec. 2018 Mar. 2015 Mar. 2016 Dec. 2016 Dec. 2017 Dec. 2018 (nine-month results) (forecast) (nine-month results) (forecast)
* Amount of capital investment * Depreciation expenses Increase in property, plant and equipment and intangible assets Total of depreciation and amortization of goodwill Foreign Exchange Rates 3/36363
< Foreign exchange rates>
FY ended Dec. 2017 FY ending Dec. 2018 Actual exchange rates Assumed exchange rates
US dollar 112.19 yen 108.00 yen
Chinese yuan 16.63 yen 15.90 yen 64