１．3Q FY 2021 Financial Results

２．Full-Year Forecast for FY 2021

３．Reference

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

1

Business model＝Marketing Manufacturer

I.K Co., Ltd is a "Marketing Manufacturer" that conducts integrated business activities including product planning, manufacturing, sales and distribution through its original promotion strategy

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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Overview of 3Q FY'21 Financial Results

（Unit: Million Yen,%）

FY'20

FY'21

YoY

Main factors

3Q

3Q

From the previous 3Q, BtoC sales increased by

1,933 million yen, BtoBtoC sales increased by 511

Sales

13,864

16,415

118.4

million yen, and other sales increased by 105

million yen. As a result, the total sales were

16,415 million yen, an increase of 2,550 million

yen overall.

The SG&A ratio was 47.1%, which was 1.7%

higher than the previous 3Q, due to the increased

Operating

393

822

209.2

ratio of packing freight and advertising expenses.

Income

However, the gross profit margin was 52.1%,

3.9% higher than the previous 3Q. As a result, the

operating income was 822 million yen, an increase

of 429 million yen.

Ordinary

Like

operating

income,

ordinary income

has

394

824

209.1

increased by 430 million yen, resulting in 824

Income

million yen.

The income attributable to owners of parent was

Income attributable

244

422

173.1

422

million yen

due to

extraordinary

losses of

provision for surcharge

of 47 million

yen

and

to owners of parent

provision for customer compensation expenses of

70 million yen

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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Sales trend of each Segment

（Unit: Million Yen,%）

FY'20

FY'21

Ratio to

YoY

Main factors

3Q

3Q

Sales

The increase in sales of TV shopping

B to C

hit products, such as Speed Heat,

5,167

7,100

43.3

137.4

STEP 8, and AIR YAWN covered the

Business

decrease in sales of SKINFOOD stores,

resulting in an overall increase of

1,933 million yen.

While wholesale of cosmetics to drug

stores decreased, sales of food

B to B to C

products increased by 33.3% through

8,504

9,015

54.9

106.0

the co-op route and 33.8% through

Business

the mail-order route. The overall

sales of BtoBtoC business was 9,015

million yen, an increase of 511 million

yen.

Sales increased by 105 million yen

Other

192

298

1.8

154.9

due to the acquisition of new

customers for M-Talk (chat system).

Total

13,864

16,415

100.0

118.4

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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Operating Income trend of each Segment

（Unit: Million Yen）

FY'20

FY'21

Operating

YoY

Main factors

income

3Q

3Q

margin

B to C

Compared to the previous 3Q, MR (sales /

285

531

7.5

186.3

media costs) of TV shopping increased by

Business

0.5% and sales efficiency was improved.

As a result, the operating income of the

overall BtoC business was 531 million yen.

B to B to C

Compared to the previous 3Q, sales have

79

229

2.5

288.6

increased by 6.0% and the SG&A

Business

expenses to sales ratio decreased by

1.0%, resulting in an increase of 149

million yen in operating income.

Other

△10

38

12.8

－

Operating income was increased by 48

million yen due to strong sales of M-Talk

and a 12.9% decrease in the SG&A ratio.

Total

393

822

5.0

209.2

*The Segment income or loss adjustment amount for FY'21 is 23 Million Yen, compared to 39 Million Yen of FY'20.

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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MR trend of TV Shopping

  • MR（Media Relation=Sales/Media costs）

FY'20

1Ｑ

2Ｑ

2Q

3Q

4Q

Total

End

MR

2.3

2.9

2.6

2.3

2.7

2.6

BUTTERFLY

STEP 8

Speed Heat Vest

Speed Heat Vest

AIR YAWN

Main

ABS DT

STEP 8

STEP 8

Aged black garlic

STEP 8

Products

AIR YAWN

AIR YAWN

Resara

ryuhyo mat

AIR YAWN

Ashitsuranaito

Aged black garlic

Black Soybeans

Hair Foundation

FY'20

1Ｑ

2Ｑ

2Q

3Q

４Q(target)

Total

End

(target)

MR

2.4

3.1

2.8

2.8

2.0

2.6

STEP 8

AIR YAWN

Speed Heat Vest

STEP 8

STEP 8

Speed Heat Vest

AIR YAWN

Main

STEP 8

AIR YAWN

Multi sleeping bag

Aged black garlic

AIR YAWN

Products

ryuhyo mat

Dannel

motilax

Aged black garlic

White Up Pants

Black Fine Pants

Happy Nappers

SHAPOLINE

Speed Heat

STEP 8 Gold

Bucket

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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Key Management Indicators

FY'20

FY'21

3Q

3Q

Gross profit margin（％）

48.2

52.1

Operating profit margin（％）

2.8

5.0

Ordinary profit margin（％）

2.8

5.0

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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Financial Overview

FY'20

FY'21

3Q

3Q

Total assets（Million Yen）

6,955

7,940

Total Equity（Million Yen）

2,662

3,657

Capital adequacy ratio（％）

38.2

45.9

Equity per share（Yen）

366.15

464.67

Quarterly net income per

33.03

56.79

share（Yen）

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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１．3Q FY 2021 Financial Results

２．Full-Year Forecast for FY 2021

３．Reference

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

12

Dividend Policy

While strengthening the corporate structure through retained earnings in preparation for future business development, the policy is to aim for a dividend payout ratio of 20%. There are possibilities of an adjustment being made on this profit distribution in further consideration of the future business environment. We intend to utilize the retained earnings to further strengthen our corporate structure and enhance and expand our business activities in the future.

14

１．3Q FY 2021 Financial Results

２．Full-Year Forecast for FY 2021

３．Reference

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

15

Company overview

I.K Co., ltd.

Headquarters ：5th floor of KDX Nagoya Station Building, 3-26-8

Meieki, Nakamura-ku,Nagoya-shi,Aichi-ken

Corporate Officers ：Hiroshi Iida, Chairman & CEO

Shogo Nagano, President & COO

Established

：May 1, 1982

Capital

：620.93 million yen

Sales

：18,483 million yen (Consolidated sales for May 2020)

Ordinary income：623 million yen (Consolidated sales for May 2020)

Total assets ：7,369million yen (Consolidated sales for May 2020)

Total equity ：2,809million yen (Consolidated sales for May 2020)

Employees ：282 (Consolidated for May 2020)

Stock Exchange Listings：Tokyo and Nagoya (First section) code 2722

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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History

1982 May I.K Trading LLC founded

1983 Apr. Started business with Aichi CO-OP Union 1991 Apr. Changed company name to I.K Co., ltd.

2001 Dec. I.K Co.,Ltd. listed on the JASDAQ market

2005 Dec. Launched private brand 「Lowcalo Life」

2009 Jun. Founded Food Cosmetic Co., Ltd.

2010 Dec. Made AlfaCom, Ltd. a subsidiary 2013 Feb. Launched make-up brand 「LB」

2014 Sep. Made Primedirect Inc. a subsidiary

2017 Aug. Founded I.K Trading Company Limited. a subsidiary

Oct. Founded LB(SHANGHAI)COSMETICS Co.,Ltd. (indirect ownership 60%)

2018 Feb. Listed on the Second Section of Tokyo and Nagoya Stock Exchange market 2019 Sep. Merged Graceas Co.,Ltd.

2020 Dec. Listed on the First Section of Tokyo and Nagoya Stock Exchange market

I.K Co., Ltd. -To becoming a "Marketing Manufacturer"-

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I.K Co. Ltd. published this content on 13 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 April 2021 07:32:02 UTC.