Mandom Report 2023

Introduction

What solutions can cosmetics provide
for social issues?
Mandom Corporate Slogan

なりたい自分に、全部なろう。

The products and services we provide are neither social infrastructure, nor food,nor pharmaceuticals. In other words, they are not directly essential to people ʼs survival.
Even so, we recognize that people all over the world share a desire to live each day true tothemselves, confidently, and filled with positivity.
Cosmetics are an item that can fulfill such desires. Cosmetics offer empathy andunderstanding to consumers ʼ moods in any ordinary day, as well as give them confidence
and vitality. Through cosmetics, we believe we can demonstrate “Dedication to Service(Oyakudachi) ” to support consumers all around the world.

Mandom Logo

Why “human-oriented”?

The two unique human abilities, imagination,and creativity, are the key for the future.
Our cosmetics and related services are intended to appeal one ʼs own beauty and coolness
and to give oneself confidence to appear in front of others. In this sense, we are anindustry with a strong cultural element that requires aesthetic sensitivity, emotional
sensibility, and a discerning eye.
That is why Mandom believes in the importance of being compassionate to peopleʼs emotions,
imagining happy people (imagination), and creating value that is useful to people (creativity),
which are all values that are unique to humans and cannot be replicated by AI or robots.
We aspire to be a “human-oriented ” company where employees unleash these two abilities
to the fullest to bring discovery and inspiration to consumers in the realm of “Health,Cleanliness, Beauty and Fun ” and provide new value that resonates with them.
Mandom Report 2023

01

FY2023 Ceremony for New Employees

BE ANYTHING, BE EVERYTHING.
New employees attended the ceremony in clothing that expressed
who they want to be

Editorial Policy

The Mandom Group has been publishing the Mandom Report(integrated report) since 2018 to help our stakeholders
understand our medium- to long-term efforts at value creation.
Mandom Report also integrates the previously separate KohDoh
Report (CSR report). This has been done as part of our work on
providing integrated information as a company and to enhance thenon-financial information we provide. When editing this report, we
put together a brief summary focused on information that is highly
important for improving Mandomʼs corporate value while referringto the “Guidance for Collaborative Value Creation” released by
the Ministry of Economy, Trade and Industry and other resources.

02

Mandom Report 2023

Visit our website for more detailed information.
●●

IR Information: https://www.mandom.co.jp/en/ir/
CSR Information: https://www.mandom.co.jp/en/csr/

Report Coverage: Mandom Corporation and its affiliated companies
both inside and outside Japan

Note: For details, please see p. 86 “Mandom Group Companies.”

Reporting Period: FY2022 (ended March 31, 2023)●●

Mandom and Group companies in Japan: April 1, 2022-March 31, 2023
Overseas Group companies: January 1, 2022-December 31, 2022

Note: To the extent it is possible, the latest information at the time this report was
written is included.

Contents
About Mandom

̶From the Past to the Present Mandom̶04 Mission Framework
06 Dedication to Service (Oyakudachi) for Consumers Continuing
Constantly Since Founding
08 Mandom Group Business Areas and Business Highlights for the Fiscal
Year Ended March 31, 2023
10 Brands of the Mandom Group

Value Creation Story̶From the Present to the Future Mandom̶
12 Top Message
18 Mandom Groupʼs Human-Oriented Value Creation Model
20 Co-creation and Dialogue with Each Stakeholder
22 Materiality and Sustainability Strategy of the Mandom GroupStrengths and Initiatives to Help Materiality

̶From the Present to the Future Mandom̶
26 Strengths and initiatives to help “Creating an easy-to-start grooming
culture”
28 <Feature> Only One Marketing Topics “LÚCIDO-L”
31 Strengths and initiatives to help “Expanding Dedication to Service(Oyakudachi) to a diversity of consumers”
34 Strengths and initiatives to help “Realizing mutual growth of employees
and the company”
36 <Feature> The Mandom Groupʼs Human Capital Management Initiatives
39 Strengths and initiatives to help “Actions for sustainable global
environment”
45 Strengths and initiatives to help “Sustainable procurement of raw
materials”
48 Strengths and initiatives to help “Maintaining/enhancing the corporatebase”
51 Corporate Governance
58 Introduction of Officers
60 ComplianceMiddle-Range Planning
62
64
65
66
68
70

13th Middle-Range Planning “MP-13” and positioning of “VISION2027”
Look Back at Previous Middle-Range Planning
Outline of “MP-13 (April 2021 through March 2024)”
Look Back on the Fiscal Year Ended March 31, 2023
Financial Strategy
Middle-Range Planning Topics “Promotion of Digital Transformation of
the Mandom Group”

Performance for the Fiscal Year Ended March 31, 2022
72
74
76
78

Analyses of Management and Finances
Financial and Non-financial Highlights
11-Year Consolidated Financial and Non-financial Highlights
Consolidated Financial Statements

Company Information
84 Mandom Group Detailed History
86 Mandom Group Companies
87 Company Outline / Stock and Shareholder Information

Reference Guidelines“International <IR> Framework”● “Guidance for Integrated Corporate Disclosure andCompany-Investor Dialogue for Collaborative Value
Creation” released by the Ministry of Economy, Trade,and Industry● “ISO 26000:2010̶Guidance on Social Responsibility”
edited by Japanese Standards Association● “Environmental Reporting Guidelines (2018 Version)”
released by Ministry of the Environment, Japan● “GRI Standards” released by GRI(Global Reporting Initiative)●

Regarding Forward-Looking Statements

This annual report contains forward-looking statements concerning
Mandomʼs current plans, strategies, beliefs and performance. These
forward-looking statements include statements other than those basedon historical facts and represent the assumptions and beliefs ofmanagement based on information currently available. Mandom
therefore wishes to caution readers that actual results may differ
materially from expectations, and that forward-looking statements are
subject to a number of foreseen and unforeseen risks anduncertainties. All amounts have been rounded down to the nearest
whole unit.

Mandom Report 2023

03

04

Mandom Report 2023

Mandom Report 2023

05

Dedication to Service (Oyakudachi) for Consumers Continuing
Shinpachiro Nishimura, the founder, believed that spreading cosmetics would serve society as Dedication toService (Oyakudachi) under the principle of “high-quality and best-value products*1.” Since then, the Company has
believed that Dedication to Services (Oyakudachi) for consumers through cosmetics is its reason for existence,and expanded Dedication to Service (Oyakudachi) in terms of quantity (sales) in Japan and Asia through Only One
Marketing from the perspective of Consumer-led Lifestyle Value Creation, and the creation of new markets that
propose new grooming behaviors.
*1 To provide consumers with products of unique quality and value at an appropriate price, and to obtain profit by the spread of the products, thereby maintaining social significance.

Founder
Shinpachiro NishimuraFounded in 1927
Founding Spirit

1982 following the Second Business Crisis
Pursuit of the Companyʼs reason for existence

Spreading high-quality andbest-value products“Dedication to Service (Oyakudachi)
for consumers”

Spreading high-quality products andhaving them used by as many people aspossible will lead to social contribution.

Identifying lifestyle wants in consumersʼ daily lives and helping
them feel a little bit of magic, to feel positive and cheerful,through cleaning their body, grooming, and dressing neatly.

■ Domestic net sales■ Overseas net sales*2 Fiscal year ended March 31, 2019: Some items that had been treated as expenses have been deductedfrom net sales at overseas consolidated subsidiaries included in financial statements conforming to IFRS.
*3 Fiscal year ended March 31, 2022: Some items that had been treated as expenses have been deductedfrom net sales of the Japan segment in order to apply the Accounting Standard for Revenue Recognition(ASBJ Statement No. 29), etc.

1920’s - 50’s (1st - 43rd)

1960’s (44th - 53rd)

1927
Established Kintsuru
Perfume Corporation

1970’s (54th - 63rd)

1980’s (64th - 73rd)

1990’

1960ʼs First Business Crisis

1980 Second Business Crisis

Alcohol-based liquid hair styling products
came to market
Performance of the Company was sluggish
due to being unable to respond to changes in
consumer wants as a result of not letting go of
the success of tique and pomade

Transitioned to a direct sales structure in
1978, but with ballooning costs, things cameto a standstill in two years, and eventually thedecision was made to return to sales throughdistributors.
The crisis left a long-standing impact, particularly
with respect to having to reduce personnel.

1933

1970

1982

Launched Tancho Tique

Launched the Mandom Series

Commenced the first MP
Developed Mandom terminology
such as “Oyakudachi (Dedication
to Service)” and “Seikatsusha(Consumers).”▲

Overseas
Business

06

Mandom Report 2023

1958

1969

Commenced operations at
technical tie-up in the Philippines

Established a joint
venture in Indonesia

Strengthened Overseas
1988

1990

Singapore

Thailand

1989

1992

TaiwanThe Philippines

Constantly Since Founding

2021
Launched the new VI andcorporate slogan

80,000*2“Human-Oriented Company” [Human to Human]

About Mandom

2017, the 90th anniversary of the founding of the Company
Evolve the Companyʼs reason for existence

Mandom is a “human-oriented company.”
Guided by our original concepts of Health, Cleanliness &Beauty, we reach boldly beyond the norm to bring wonder andinspiration to peopleʼs everyday lives.
60,000*3

Value Creation Story

40,000What the Company
aspires to be
in 2027, the 100th
anniversary of its
founding

VISION2027➡ P.6220,000Materiality

106th fiscal year

(ended March 31, 2023)

0’s (74th - 83rd)

Consolidated
base2000’s (84th - 93rd)

0 (Millions of yen)2010’s (94th - 103rd)

2020’s (104th -)2011

Commenced the firstover-the-counter sales of
GATSBY hair foam for men
Launched GATSBY facial cleansing paper
Introduced a new way of grooming

Launched Bifesta, a cosmetics
brand for women
Full-scale introduction to the skincare market
Commenced full-scale renewal of LÚCIDO as
an aging care brand and developed the middleaged menʼs market

2006

2014

Launched GATSBY Moving Rubber, which becamea signature series in the menʼs styling market

Launched LÚCIDO-L Oil Treatment series

1994

1995

Launched menʼs hair styling product GATSBY
Water Gloss in Indonesia
Expanded product line for various sizes;
became widely known, primarily for thesachet-size version

Launched womenʼs cosmetic item Pixy
Two Way Cake in Indonesia

1996

2019

Developments
1993

1997

2008

2015

Hong Kong

Malaysia

China

Vietnam

1996

1999

2012

China

South Korea

India➡ P.31

Acquired shares of ACG International
Sdn. Bhd.

(Mandomʼs Six Strengths)

Only One
MarketingKnowledge in Menʼs
Cosmetics Field
Overseas
Expansion Focusedon Asia“Unique Research”
and “Reliable
Technology”

Production Systemwith Three
Manufacturing
Bases

Company Information

The first M&A since founding

Acquired
AssetsPerformance for the Fiscal Year Ended March 31, 2022

1985

Middle-Range Planning

Created a market and expanded results by offering new grooming options

Highly-Engaged
Human Resources(Employees)➡ P.34 〜

Mandom Report 2023

07

Mandom Group Business Areas and Business Highlights
Other overseas
The Mandom Group is developing its global operations, particularly
in Asia. The Group segments its operations into three regions:Japan, Indonesia and Other overseas.

Japan

We create and invigorate markets by responding meticulously toconditions in each area and to such characteristics as consumer
preferences, lifestyles and purchasing power.

▲

Composition of net sales byregion and business▲

Composition of consolidated net sales by region■ Menʼs business■ Womenʼs business■ Other businesses

Other overseas

25.5%

Net sales

Indonesia

Japan

53.3%

Composition of consolidated
operating income by region▲¥67,047
millionIndonesia（

21.2%
Other overseas Indonesia

Not presented due to operating
loss for the Indonesia segment

）

Japan

Note: All figures are for the fiscal year ended March 31, 2023

▲

Japan

Net sales, year on year

Our core sales region, constituting more than half of the Mandom Groupʼs net sales

Average growth rate,
past five years

4,248

48,442 46,175
38,84732,5958.8
3,014

35,7696.5

35,541＊-0.7-1,4732021(Year ended March 31)

0.8

282
-255 -266＊

2019
2020
(Year ended March 31) (Year ended March 31)

Operating margin (%)▲▲

Operating income or loss (Millions of yen)▲

Net sales (Millions of yen)

2022
2023
(Year ended March 31) (Year ended March 31)

9.7%
-6.2%

2019
2020
(Year ended March 31) (Year ended March 31)

2021(Year ended March 31)

2022
2023
(Year ended March 31) (Year ended March 31)

-4.5
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)* If calculated using the same criteria as the fiscal year ended March 31, 2022

<Menʼs business>

Our mainstay brand “GATSBY” saw an increase in sales of bodycleansing wipes, deodorant sprays, etc., which are summer season
products, due to the unusually hot weather at the end of June 2022, in
addition to the decline in COVID-19 infections resulting in a recoveryof the flow of people. In February 2023, we launched “Meta Rubber,” a
new line of styling products
tailored to the tastes of todayʼs
young men.
Combining an affordable pricerange and high functionality,
this product is in line with thecurrent demand for cost- andtime-effectiveness and is
expected to increase its sales.
“GATSBY Meta Rubber”

08

Mandom Report 2023

<Womenʼs business>

The cleansing and facial wash brand “Bifesta” also saw an improvementin performance due to a rise in opportunities to go out and put on
makeup. The brandʼs new products, such as Cleansing Balm and Clay
Face Mask, contributed to the increase in sales.
The hair care brand “LÚCIDO-L” launched the “Hair Damage Repair
Treatment” in August 2022.
The series has garneredfans for making hair quality
improvement treatments
available at home and ataffordable prices, whensuch treatments are typicallycostly at salons, and more
stores sold the products than
anticipated.
“LÚCIDO-L #Hair Damage Repair Treatment”

for the Fiscal Year Ended March 31, 2023
Net sales, year on year

The largest overseas business area and growth leader for the Mandom Group

Average growth rate,
past five years

681

17,044 17,791
12,102 11,751

Operating margin (%)▲▲

Operating income or loss (Millions of yen)▲

Net sales (Millions of yen)

645

4.0

14,178

3.6

- 676

-899

2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)<Womenʼs business>

Our makeup brand “Pixy” saw a significant
rise in sales following the renewal of thefoundation “Two Way Cake,” a mainstay
product, and the airing of TV commercials.
Our fragrance brand “Pucelle” hassuccessfully captured the increase in demand
due to more opportunities to go out, and new
products were steadily introduced.

Materiality

Our mainstay brand “GATSBY” is recording a growth in sales withthe aggressive launch of new products in response to the recoveryof consumersʼ purchasing appetite since the impact of COVID-19
subsided. In our mainstay category of hair styling, we launched
pomade, water
gloss, and hair cream
products in sachet
sizes. For fragrances,
we launched “Eaude Blue” and otherproducts in bottles thatwould be popular in thelocal market.
“GATSBY Pomade Series”“Pixy Two Way Cake”

Net sales, year on year

This area possesses a large potential for future growth and is expected to become the engine of growth in the future

Average growth rate,
past five years

17,098

2,205

16.3

2,310

1,802

12,360 13,015

2.8

2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)<China>“GATSBY Facial Wash”

Chinaʼs zero-COVID policy imposedsevere movement restrictions, andwhile countries around the world
were recovering from the pandemic,
the Chinese economy continued toslump, resulting in a drop exceeding
30% in the Companyʼs sales from theprevious year. However, the market
has been recovering since thebeginning of 2023, and we expect
improved results in the fiscal year
ending March 31, 2024.

Company Information

Restrictions to stem the spread of
COVID-19 were lifted throughout
Malaysia in January 2022. Since
then, our Group companies
witnessed robust growth due tomarket reopening, with growthof 30% at Mandom (Malaysia)
Sdn. Bhd. and over 50% at ACG
International Sdn. Bhd., a womenʼs
cosmetics company, and they
are leading the “Other overseas”
segment.

10.5

2.9

369

2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)<Malaysia>

13.0

Performance for the Fiscal Year Ended March 31, 2022

361
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Operating margin (%)▲

13,510▲Operating income or loss (Millions of yen)▲

17,80631.4%
6.1%

Middle-Range Planning▲

Other overseas
Net sales (Millions of yen)

Value Creation Story

-10.2

2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)<Menʼs business>

- 4.8

-7.4

-1,204
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

20.7%
-4.5%

About Mandom▲

Indonesia“Bifesta Cleansing Oil”

Mandom Report 2023

09Brands of the Mandom Group
Other businesses

13.0%

▲

Composition of net
sales by business

The Mandom Group concentrates its
operations in two cosmetics businesses̶
menʼs business and womenʼs business̶
through which it responds carefully with a

Womenʼs business

29.9%

Menʼs businessNet sales

57.0%¥67,047million

wide range of brands to meet consumer

Notes:
1. All figures are for the fiscal year
ended March 31, 2023
2. Does not total 100 due to rounding

demands.

Menʼs business▲▲Net sales (Millions of yen)
■ GATSBY ■ LÚCIDO ■ Other

Business offering a range of products including menʼs everyday

49,58047,38837,889grooming products as well as general fashion items, such as hairstyling, face care, and body care products

33,461

38,249YoY change UP

35,511＊

Target categories: Hair styling/hair coloring/scalp care/face care/body care

2019
2020
(Year ended March 31) (Year ended March 31)

2021(Year ended March 31)

14.3%⬆

2022
2023(Year ended March 31) (Year ended March 31)* Calculated using the same criteria as the fiscal year ended March 31, 2022

Note: Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated
subsidiaries included in financial statements conforming to IFRS.
* From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc.

Japan Overseas

Other overseas

Compositionof net sales byregion in 2023
(Year ended March 31)

Indonesia

Japan

This is a menʼs cosmetics brand that always offers stylishness
for the times. Rolling out horizontally across Asia as a core brandof the Mandom Group.

Japan Overseas

Other overseas

Compositionof net sales byregion in 2023
(Year ended March 31)

A “smart aging cosmetic brand” for the fashion andgrooming of middle-aged men 40 and up.

10

Mandom Report 2023

Japan

▲

Overseas Development Regions (as of May 31, 2023)
Japan

Vietnam

China

India

GATSBYLÚCIDO●

Indonesia Singapore
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Taiwan●●Hong Kong South Korea Malaysia Philippines Thailand●●

About MandomMenʼs business

Womenʼs business

Bifesta
PIXYLÚCIDO-L
Pucelle

●

●

●

●

Value Creation Story

Womenʼs business

●

▲

▲

Net sales (Millions of yen)
■ Bifesta ■ PIXY ■ LÚCIDO-L ■ Pucelle ■ Other

Business offering a range of products spanning everyday womenʼs

22,43325,974grooming and fashion items, including hair styling products, body care

18,783＊

16,68520,07817,890products, and products to bring a splash of color to the beauty lives of

YoY change UP

20.3%⬆

women, such as make-up and skin care items
2019
2020
(Year ended March 31) (Year ended March 31)

2021(Year ended March 31)

2022
2023
(Year ended March 31) (Year ended March 31)
Materiality

Target categories: Make-up/skin care/hair styling/hair coloring/hair treatment/body care

* Calculated using the same criteria as the fiscal year ended March 31, 2022

Note: Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated
subsidiaries included in financial statements conforming to IFRS.
* From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc.

Japan Overseas

Overseas

Compositionof net sales byregion in 2023
(Year ended March 31)

Middle-Range Planning

Other overseas

Other overseas

Japan

Indonesia

Compositionof net sales byregion in 2023
(Year ended March 31)

A brand with a wide range of products from

“Beautiful Skin Comes True,”skincare to makeup that pulls out the diverse beauty of Asian women.

it has fans in Japan and various other Asian countries.

Rolling out in Indonesia and certain other countries.

Japan Overseas

Performance for the Fiscal Year Ended March 31, 2022

As a brand with the concept ofOverseas
Other overseas

Other overseas

Compositionof net sales byregion in 2023
(Year ended March 31)

Japan

Indonesia

Compositionof net sales byregion in 2023
(Year ended March 31)

We continually offer new hair beauty

A brand of fragrances and body care products for young women who

cosmetics of reliable quality,

seek a cosmopolitan, cool beauty style. Centered on fragrances,rolling them out across Japan and other Asian countries.

rolling out in Indonesia and certain other countries.

Mandom Report 2023

Company Information

Indonesia

11Top Message

We want to become a company
that is always active for all stakeholders,
including consumers and employees.

Mandom Corporation
President Executive Officer & Director

Ken Nishimura

Although Indonesia posted an operating loss on a segment

Looking Back on the Fiscal Year
Ended March 31, 2023

12

basis due to the reconfiguration of financial results that
occurred when recording the consolidated results, it wasable to post a profit on a non-consolidated basis in local

Given that the Companyʼs operating margin was around 10%

currency terms. As a result, consolidated net sales

and consolidated operating profit was around ¥8.0 billion

increased 16.9% year on year to ¥67,047 million, while

before the COVID-19 pandemic, neither management nor ourconsolidated operating profit amounted to ¥1,409 million.

employees could have imagined that the Company would fall

However, we have only taken the first step toward recovery,

into an operating loss in such a short period of time, evenand I believe that we must improve profitability to a levelwith the impact of the pandemic. As a result, the Company

where our operating margin approaches 10%, and in theas a whole lost confidence and remained in a state of being

future, exceeds 10%. ROIC was 2.1%. With regard tounable to stay optimistic for two years. In order to regain

invested capital, which is the denominator of the calculation

confidence, one small step at a time, we decided to start byformula for ROIC, we are working to shorten the cash

aiming to record a profit in each segment on a consolidated

conversion cycle, optimize product inventories, and reduce

basis in the fiscal year ended March 31, 2023, which would

manufacturing costs, while continuing to work withnaturally translate into a profit on a consolidated basis.

customers to minimize the volume of returned goods as

Mandom Report 2023

About Mandom

Value Creation Story
Materiality

We review the figures for our progress every three months

recovery, consumers in all but a few countries in the Otherat Management Council meetings, and we are raisingoverseas segment have started to return to their normalawareness of these issues across the entire Group, including

lives and go about their everyday routines in aoverseas. The operating margin, which is the numerator of

forward-looking manner. I have also resumed going on

the calculation formula for ROIC, is still at a low level, andoverseas business trips last year (2022), and unlike in

we must first restore it to a level where it can reach 10% asJapan, the streets of the countries I visited were extremely

soon as possible. We are also aware of the need to raise

lively, with some countries having already returned to

ROIC to a level where it exceeds capital costs as quickly as

pre-COVID sales levels. I believe that most countries, withpossible in the next Middle-Range Planning (“MP”).

the exception of China and South Korea in East Asia, will

Performance for the Fiscal Year Ended March 31, 2022

Indonesia still have a long way to go in terms of theirMiddle-Range Planningmuch as possible in parallel with our cost reduction efforts.

probably exceed their pre-COVID sales levels by the end of
this fiscal year. We consider the Other overseas segment as

If we take a look at individual segments, although Japan anda growth driver within the Group in the next MP as well. On

Company Information

Current Situation and Issues by
Segment

the other hand, with regard to Indonesia, we have been
growing sales by leveraging brands such as GATSBY andPixy as much as possible, but there is a sense that we are

Mandom Report 2023

13

Top Message

approaching the limit of their potential. This is an issue notthat if we fail to address these needs, our business may be

only for Indonesia but across the entire Group. I feel that wecaught in a diminishing equilibrium in a Japanese market thatare entering a phase in which we should alter our approach

is facing declining population and economic stagnation.

in order to develop our next set of strengths, such as byintroducing new brands while leveraging our current
strengths, rather than relying too heavily on our strong
brands. In my view, there are concerns that merely persistingwith our past approach in Indonesia will lead to a slowdownMarketing That Is Well-Adapted to
Changes Among Consumers

in the pace of growth.

Many players have entered the menʼs cosmetics market in

In Japan, our major market, we primarily operate ourrecent years, and the market has also matured asbusiness in the mass market. Our business is centered on

consumers become more literate. There are also somebrands such as GATSBY and LÚCIDO for menʼs cosmetics,

categories whose products now offer more powerful

and on brands such as Bifesta and LÚCIDO-L for womenʼsfunctions and higher added value. For example, there arecosmetics. In terms of menʼs cosmetics, we have notcurrently many skincare and menʼs makeup products on theestablished any brand in the market following LÚCIDO.

market, but as their value and functionality grow, the cost ofLÚCIDO and GATSBY are 34 years old and 45 years old thisthese products naturally rises as well. Since the Company

year, respectively. Until now, both these brands have evolved

was founded, we have been committed to the popularization

over time to ensure that they do not become obsolete, butof high-quality and best-value products and have continued

after such a long time, there is indeed a sense that we areoperating our business with the hope that our Dedication toalmost reaching the limits of their potential. In view of this, itService (Oyakudachi) can enrich the everyday lives ofis necessary for us to create new excitement in the massconsumers by spreading the culture of cosmetics to as

market, including by proposing new categories or new

many such consumers as possible regardless of the times.

brands, something we have not done for many years, and by

Although the Company does not take decisions to raiseworking to adapt to the evolving times. There are concerns

prices lightly even considering the soaring prices of various
raw materials in recent times, the market has come todemand high added value products, and thus the selling
prices of our new products have also increased in line with
their higher product functionality. For example, some of our
new products launched last year (2022) are priced close to¥2,000, which is higher than our normal price range up to
now. However, one positive we can take heart in is thatthese products have garnered tremendous support and are
ranked among the top products of their respective
categories in the market, which I believe is a sign of ourability to evolve.
As for what we refer to as career recruitment in the
Company, we have hired several individuals who possess
various forms of marketing expertise, including digitalmarketing and product planning, in recent years. The aim of
this is to strengthen our ability to develop fans of our brand,

14

Mandom Report 2023

been around for a long time have the support of loyal

something in order to do certain other things. For example,

customers, and it is vital for a brand to identify what its fansthe stance that quality is not negotiable in the case ofwant from it and reflect their needs in its new products ascosmetics but such products must also be environmentallywell as its advertising and promotional activities. In particular,

friendly has become very important as well.

there is a sense that GATSBY had abandoned its original

I believe this fiscal year is an important year for us, especiallyfans by striving to become a brand that is universallyin terms of how we formulate the next MP. Until now,

accepted, resulting in a brand that has become lessdecisions have often been made by the management teamdistinctive and unique, which makes it difficult to identify whoalone, but starting from this fiscal year, we have launchedexactly the brand is targeting. Unlike in the past, it istraining for department heads, during which we ask them toimperative that we evolve and adapt to the times, given thatconsider and propose actions that each department can takeso many players have entered the market. To this end, I hopein response to the 14th Middle-Range Planning (“MP-14”).

that the newly recruited members of our team through the

We are starting to involve even department heads in our

career recruitment will not only demonstrate the skills they

management plans, thereby setting a trend where everyone

possess but also bring new perspectives to the Company.

gets involved. ➡ P.35 In MP-14, we hope to go a little

Value Creation Story

cases where many people and things need to give up

About Mandom

which has been an issue for a long time. Brands that have

Materiality

further than before and explain with greater nuance how, interms of our growth strategy, some areas can be expanded

Initiatives for the Fiscal Year Ending
March 31, 2024with our existing portfolio while other areas require us to

We are keenly aware that the demand for sustainability is

growth strategy that serves as the basis for creating suchgrowing both within and beyond the Company. As humanexciting possibilities will benefit not only investors and othercapital management becomes increasingly necessary, issues

external stakeholders but also employees as well. We hopesuch as the promotion of diversity and womenʼs participation

to present an MP that is an upgrade from our current plan

have become important themes. In addition, it is necessary

and which clearly shows employees our future direction as a

to take action over the course of our business operations tocompany.

reduce various resources and energy used in our

We have established a new division this fiscal year called

manufacturing process and utilize more environmentally

the Corporate Transformation Division. It is composed offriendly product packaging. Although our current businessthree members, and I serve as its General Manager. The

environment requires us to address many issues, such as

first thing we are currently working on is the facilitation ofrising costs across the board, we are actively engaged ininternal dialogues between all our management personnel ininitiatives aimed at addressing social and environmental

Japan and young employees aged 40 years old and younger

issues. We have set our medium- and long-term targets forover a two-year period following my appointment asmateriality in April of this year, and awareness of thesePresident, and this year, we plan to hold dialogues withtargets is growing throughout the Group.

employees aged 40 and older. ➡ P.35 We conduct surveys
on the spot for each employee to find out what we can do

EVERYTHING,” and its goal is to create and provide value

now and what we need to do moving forward to make thethat contributes to realizing a lifestyle and society that do

Company a place that is rewarding and always enjoyable to

not require trade-offs, which have been traditionallywork at. The results of these surveys are analyzed byperceived as parts of a so-called trade-off relationship indelving below the superficial descriptions to identify any

Mandom Report 2023

Company Information

Company has adopted the slogan of “BE ANYTHING, BE

Performance for the Fiscal Year Ended March 31, 2022

The

or considering M&A opportunities. I believe presenting a

Middle-Range Planning➡ P.24take on new challenges, such as by introducing new brands

15

Top Message

intrinsic issues that lie beneath the responses. The findings

From the perspective of employees, it is crucial for a

are then presented to the Human Resources & Generalcompany to be able to have people of various attributes

Administration Division, the Corporate Planning Division,working well together. In the case of Japan, I believe thatand other relevant divisions as part of efforts to reform andgender bias must be eliminated. Diversity can be defined inrevitalize our company culture. As for initiatives involving

terms of gender, age, nationality and other attributes, but it

external parties, I believe there is a need to establish an

is important to strike a good balance not only in terms ofenvironment in which we can collaborate with external

individual attributes but also in giving rise to an improvement

ventures and startups. This would allow us to collaboratein the companyʼs corporate value. There is a sense in

more flexibly with external parties, perhaps by exploring

recent times that career diversity is also very important.

M&A opportunities or partnering with startups and ventures.

For instance, there are quite a number of employees who do

I believe that having the new division take some concrete

not wish to move into management; instead, they want toactions, no matter how small, at an earlier stage would makefurther refine their specialized skills in their field of expertise

it more likely that our efforts will resonate with employees.

and work as experts and professionals. There will be

After all, it is imperative that the Corporate Transformation

situations in the future where men and women embrace

Division becomes a division that employees can have highdifferent work styles and pursue different career paths while

expectations of.

young employees and overseas employees work together.
A key requirement I look for in human resources is the ability
to approach issues from scratch without relying on past

Toward a Truly Global Company

successes. The ability to think from scratch also means
being open to diversity. It is important for us to have human

Although we have made progress in the globalization of ourresources who are capable of being receptive to what is

products and brands, I believe that we cannot become abest for the Company when figuring out combinations that

truly global company unless we promote the globalization offeature the very best. They must be always intellectually

our people and management. The percentage of overseas

curious, constantly in pursuit of new developments andnet sales will probably exceed 50% in the period

attuned to what is going on around them, and aware of theircorresponding to MP-14. I believe that Japan currently

own weaknesses, while setting their own vision of what

accounts for too large a portion of the Group. In order forthey want to be and growing toward that vision. People whoJapan to retain the Groupʼs headquarters function andcan do that are the kind of human resources I would like tosupport our business in various countries, employees

work with.

working in Japan need to acquire a holistic understanding of
the Groupʼs business operations, foster a global mindset,
and embrace diversity. Staying in Japan and having themindset and lack of urgency associated with the stagnant
status quo will not allow us to offer adequate support for our

16

Toward the 100th Year of Our
Founding

overseas business. I also believe that we should delegate

Our material issues include creating a grooming culture,authority to each country to some extent, attract human

expanding Dedication to Service (Oyakudachi) to a diversity

resources of various nationalities and attributes to work atof consumers, and realizing mutual growth of employees andtheir companies, and ensure that the management team of

the company. This part of value creation should be called

each overseas company is localized and diversified, all of“aggressive materiality” as it leverages the Companyʼswhich are key points that must be addressed in MP-14.

strengths, and I believe that the introduction of Mandom HR

Mandom Report 2023

new era undeterred. When I was asked what kind ofcompany. There is no company growth without employee

company I wanted Mandom to be following my appointment

growth, and I believe that we must foster a relationship in

as President, I replied, “The most enjoyable and vibrantwhich both parties can grow and find mutual happiness.

company for employees to work for in Japan, and hopefully

Indeed, as set out in our corporate philosophy, Mandom

in the entire world.” I believe there are countless ways for amust reach boldly beyond the norm and always strive to becompany to achieve excellence. However, not manyan active company. Regardless of whether we are dealing

companies can claim that they are a company that nurtureswith long-selling brands or new brands, I want employees to

its employees or a company that its employees enjoy

have an image of a company that is always on the move,working for. Yet, there is no reason why such companies

generating news, and making new product proposals, whichshould have poor business performance. I am not talking

is also the image I would like all our stakeholders to have ofabout companies at which people simply have fun hanging

the company. In order to become an active company, weout but companies where employees enjoy working. These

hope, for example, to systemize and formalize in MP-14 aare companies where there is constant friendly competition,framework under which employees are given positive

where everyone is moving in the same direction despite theevaluations in their evaluation indicators for taking on new

occasional disagreement, and where a diverse range ofchallenges, regardless of whether the eventual outcome washuman resources work together to always actively provide

a success or a failure. While a bottom-up approach isvalue to the world. Mandom hopes to become a corporate

fundamental for reforming the company culture as it is vitalgroup that always has that vision in mind.

Materiality

framework for realizing mutual growth of employees and theValue Creation Story

actively on the move, continue to evolve, and approach the

About MandomTransformation (MHRX) ➡ P.36 is very important as afor each employee to take ownership in addressing various
issues, I also recognize that top-down action is sometimes
Middle-Range Planningnecessary.
Another quality of Mandom is our respect for people.
I believe that our stance of always prioritizing our employees,
consumers, suppliers, and all other affiliated parties withwhom we work together to operate our business is part ofour company culture, a testament to how we are a highly

Performance for the Fiscal Year Ended March 31, 2022

human-oriented company. We have managed to survive inthe cosmetics industry until now as a result of our uniqueand active approach of reaching boldly beyond the norm
over the years, and the recent stagnation in the Company
may be attributed to a slight decline in this aspect. This is aquality that has been handed down since the time of theCompanyʼs founder and has remained intact for nearly 100
years, and it is one that I believe we must preserve. The
Companyʼs name has been changed twice in the past, and if

Company Information

you take a look at our history, you will notice that we are acompany that has undergone a series of changes andinnovations and overcome various crises to get to where weare today. I believe that our fundamental stance is to be

Mandom Report 2023

17

Mandom Groupʼs Human-Oriented Value Creation

INPUT

Creating aneasy-to-start
grooming
cultureHuman Capital●●●

Employees: 2,732 (Consolidated)
648 (Non-consolidated)
Human resources with global mindset
Human resources with high interest incosmetics and fashion●●

Extensive knowledge related to menʼs
cosmetics
Technologies related to research areas of focus(hair/scalp, skin, body odor/antiperspirant)

Three manufacturing sites that can supply products
in line with the wide-ranging predicted GDP levelof each country (Japan, Indonesia and China)
Companies cooperating with production in andoutside Japan

Financial Capital●

Total assets: ¥91,005 million●

Net assets: ¥71,184 million●●

Shareholdersʼ equity: ¥65,125 million(shareholdersʼ equity ratio: 71.6%)
Free cash flow
Cumulative amount of most recent five years:¥21,454 million

Materiality●

Realizing
mutual growthof employees
and thecompany●●●

Rolled out 13 Group companies in Asia
Collaboration with business partners (distributors)
in Japan and overseas and a product distribution
system based on those partnerships
Business relationships with major retailers inJapan and Asia
External joint research institutions centered onuniversities

Natural Capital●

Energy input (Japan ): 118,954 GJ●

Electricity input (Japan): 10,283,000 kWh●

Water usage (Japan): 70,197 m3●

Raw materials used in products (Japan): 9,175 t●

Satisfaction

Packaging and container materials (Japan):7,599 tPublicity/
Creation of
Shopping Areas

Consumers

LatentDissatisfacti

Three Features of
Only One Marketing

1. Consumer-led Lifestyle
Value Creation
2. The Viewpoint of “Fun”
Bringing enjoyment to everyday lifeand making everyday life easier

3. Something New,
Something Different
Actions forsustainableglobalenvironment

Social Capital●

Processes for creating/expanding Dedication to
Only One Marketing

Knowledge related to TRP channels

Manufacturing Capital●

Creating new value through imagining peopleʼs

Expanding
Dedication toService to adiversity of
consumers

Intellectual Capital●“Human-Oriented”

Sustainableprocurement of
raw materials

Partnerships

TechnoRese

Procurement/
Production〈 Mandom Groupʼs Six Strengths 〉

1 Only One Marketing
2 Extensive Knowledge Related to Menʼs Cosmetics
3 Overseas Expansion Focused on the Rapidly Growing Asia

Maintaining/enhancing thecorporate base

4 “Unique Research” and “Reliable Technology” That Respond
5 Production and Supply System Which Seeks the Spread of High-Quality
6 Highly-Engaged Employees

Sustainable Management
Mission Framework
18

Mandom Report 2023

ModelCompany

OUTCOME
Details ➡ P.20

happiness and excitement
Service (Oyakudachi) throughOwned
cosmetics brands

Consumers

About Mandom

OUTPUT

Expansion of
Dedication toService(Oyakudachi)

Value Creation Story

VISION2027

Men

Employees
Women
Product
Planning

MP-13

Customers/
Suppliers

Details ➡ P.36

DX

ologies/earch

IT strategy

Accelerating theenhancement ofcreativity/
productivity

Mandom humanresources
●

●

●

●

➡ P.30➡ P.31to Consumer Wants➡ P.32and Best-Value Products➡ P.33Natural Capital●●●➡ P.34

Environment/
Regional society

CO2 emissions (Scope 1 + 2
in Japan): 3,645 t-CO2
Water discharge volume(Japan): 29,447 m3
Waste disposal volume(Japan): 3,314 t (recycling
rate: 99.8%)

Performance for the Fiscal Year Ended March 31, 2022

➡ P.26

Human resources who arehighly engaged with theCompany
Human resources overflowing
with the spirit to take onchallenges
Human resources overflowing
with intellectual curiosity andcreativity
Human resource marketerswith strong understanding of
consumers

Shareholders/
Investors

Middle-Range Planning

なりたい自分に、全部なろう。

Details ➡ P.70

Materiality

MHRX

Human resource
strategy

Realizing well-being for consumers around the globe

MP-14

ion

Government/
Variousorganizations

Details ➡ P.22

“MISSION,” “PRINCIPLES,” and “SPIRIT”

Details ➡ P.04

Company Information

We promote unique sustainable management that ensures both enrichment on an everyday
basis and solution of social issues through our concepts of Health, Cleanliness, Beauty and Fun.

Mandom Report 2023

19

Co-creation and Dialogue with Each Stakeholder
Name of stakeholders

20

Relation with stakeholders

Consumers

Narrowly defined, consumers are end users of Mandom products. Broadly defined, consumers are
our employees, customers and suppliers, shareholders and investors, and each and every memberof regional societies. We earn high-quality profits in return for the satisfaction of consumers byunderstanding their needs and wants and creating products that satisfy them.
Our corporate slogan is “BE ANYTHING, BE EVERYTHING,” and we aim to create value that enriches
the everyday lives of people by supporting everyone to live their lives to the fullest and creating in asustainable manner a society that enables them to achieve this goal, which we have positioned as our
new “Dedication to Service (Oyakudachi).”

Employees

Our employees are at the very heart of the Company, whose corporate philosophy is rooted in theprinciple of being human-oriented. Our human resources philosophy is “Happy individuals make a happycompany,” which seeks to allow each and every employee to demonstrate their individual qualities,
enhance their expertise, and grow, thereby increasing their job satisfaction, while simultaneously
allowing the Company to enhance its corporate value by making the most of its diverse humanresources and fulfilling its Dedication to Service (Oyakudachi). Our aim is to become a cosmetics
company that possesses strengths unique to Mandom and to create an organization and a pool ofhuman resources that are capable of change and taking on new challenges to establish new forms ofvalue and Dedication to Service (Oyakudachi).

Customers/
Suppliers

We use a distributor system for sales in many cases in both Japan and overseas. As such, narrowly
defined, our customers are domestic and overseas distributors.
Broadly defined, our customers can also be considered to include retailers and e-commerce sites
where consumers encounter our products.
As the Company operates its business in Japan and Asia based on the policy of “high-quality and bestvalue products,” we are supported by many suppliers through the provision of sustainable and highly
economical raw materials. In response, suppliers seek fair and sound transactions with us. In recent
years, society has demanded that we build a sustainable supply chain that takes into consideration
environmental conservation and the respect for human rights.

Shareholders/
Investors

Shareholders/investors expect the Company to produce returns exceeding their capital costs in
exchange for financially supporting the execution and growth of the business operations of theCompany as the financial capital contributor. In recent years, there have been increased investor
interest and demand for greater consideration for and engagement in ESG issues, which are in the
spotlight. Shareholders and investors also function as monitors of the Companyʼs business execution.
In response, the Company focuses on management transparency and accountability, and engages in
dialogue as needed.

Environment/
Regional society

The soundness and sustainability of the global environment and regional societies is a major
prerequisite for the Companyʼs continued sustainable growth, and we will promote sustainable
management that creates resolution of social and environmental issues through our core businesses.
In addition, for a corporate group such as the Mandom Group that operates widely across Asia, wecannot sustain our business without a mutual understanding and harmony with regional societies.
Furthermore, we also generate employment opportunities by hiring locals in each operating country.

Government/
Various organizations

As a corporate member of society, we strive to create new value by building partnerships with multiple
stakeholders that we believe are effective for the sustainable development of society and the standardof living of people around the world.
We also fulfill our social responsibilities as a corporation by paying the required taxes in compliancewith the laws in each of our areas of operations.

Mandom Report 2023

Value provided to stakeholders (OUTCOME)

Provide safety and security through high-quality
products and services

●
●
●

●
●
●

Major touch points and engagement

Understanding of consumers
Product development with a “Fun” perspective
Cultural knowledge Aesthetic sense Fashion sense●●

Safe and reliable raw materials procurement
Production technologies
Quality management

●

●
●
●
●

Construct distribution environment and channels
to easily and comfortably obtain products●Company culture that allows both employees
and the Company to mutually grow
Development of human resources with career
autonomy who possess professional skills

Achievement of diverse human resources
through the promotion of diversity
Establishment of work-life balance resulting fromwork style reform

●
●
●
●

●
●

●

●

●
●

●

Stable supply of products●●

Strong relationships of trust with distributors
Safe products
Organizational culture that respects new challenges
HR system which sustains high motivation
Fair HR evaluation
Talent management system
Organizational culture that respects diversity and inclusion
Human rights education
Organizational culture that respects the work-life balanceof each individual
Highly productive work style Promote decent work

●

●
●

●
●
●
●

●

Appropriate and highly transparent purchasing rules
Creation of high added value products
Capacity for a stable supply of products
Highly accurate demand forecasting
Understanding of consumers

●
●
●
●
●
●

Provision of products capable of providing
healthy profits●●

Stable and continuous shareholder returns
through dividends
Ongoing improvement of corporate value
through growth investments

Highly transparent information disclosure●●

Eco-friendliness through business activities
Co-creation of a sustainable society throughcooperation with stakeholders

New value creation through partnerships
between industry, government, and academia

●

●
●
●
●
●
●

●
●

●

●
●

●
●

●
●
●

Understanding of customers
Understanding of products●

Understanding of consumers

Securing and expanding cash flows from operating activities
Financial capital strategy
Dividend policy
Investment strategies (investment plan in line with the MP)
Optimal capital structure
Stable increase of share priceDisclosure activities in accordance with disclosure policy
Proactive IR activities
Obtainment and procurement of environmentally friendly
raw materials
Environment-adaptive technologies
Initiatives for the environment and climate change
HR system suited to each region
Market creation and business scale expansion
Networking within the industrial sector
Networking with government agencies
Networking with academia

●
●
●

●
●
●
●
●

●
●
●
●
●

●
●
●

●

●
●
●
●

Paying taxes from profit from business activities●

Generation of appropriate profits

General meeting of shareholders
Financial results briefings
Small meetings
Overseas road shows
Conferences held by securities
companies
Briefings for private investors
Mandom Report dialogues
Company website
Integrated reports
Shareholder reports
Company website
Integrated reports
Activities that contribute toregional societies
Company tours

Company Information

Contribute to job creation in development
regions in Asia●●

Performance for the Fiscal Year Ended March 31, 2022●

Shareholder returns through earnings growth
based on sound financial standing●

Provision of high added value products
Appropriate sales policies

Daily purchasing activities
Supplier CSR Guidelines
Daily sales activities
New product presentations
New product exhibitions
Product catalogs
Sales regulations
Sales proposal materials
Integrated reports
Company website

Middle-Range Planning

Proposals for creating shopping areas with highsales efficiency●

Corporate philosophy survey
Employee performance evaluationinterviewSelf-evaluation system
One-on-one dialogues
Policy presentations
Integrated reports

Materiality

Equal and fair trade relationships●

Customer Relations Div.
(Company website)
Company website
TV advertising
Online advertising
Retail stores
Integrated reports

Value Creation Story●●

About Mandom

Provide value satisfying cultural fashionconsciousness

Qualities necessary to provide such value

Joint research programs
Various technical conferences
Technical presentations
Information exchange with public
institutions, local public bodies, etc.

Mandom Report 2023

21

Materiality and Sustainability Strategy of the Mandom
The Concept of Sustainability in Mandom Group
Mandom Groupʼs business activities are premised on the basisof sound and sustainable “environment (E)” and “society (S).”However, we are confronted with various issues that havebegun surfacing, such as climate change, declining biodiversity,marine plastic pollution, and human rights issues in supply
chains, which should be addressed appropriately by maintaining
solid “governance (G)” that supports such actions.
Mandom upholds “social responsibility & sustainability”
as its corporate philosophy, which itself is equivalent tosustainability of the Mandom Group. To solve social andenvironmental issues, we adhere to sustainable management(ESG management + SDGs management), having worked out
sustainability policies and identified material issues (materiality)
in sustainability in FY2021 to provide further Dedication toService (Oyakudachi) to consumers and create new corporate
values through our core businesses.
Framework for a Global Society and Sustainability of the
Mandom GroupIn September 2015, we signed the UN Global
Compact to express our support for its ten
principles in four areas of activity, with the aimof allowing all Mandom Group employees toshare in the values of global society as a step
toward sustainable development, and to create
new opportunities to strengthen relations witha diverse and wide range of stakeholders.

Sustainability Policies
We will promote unique sustainable management that ensures bothenrichment on an everyday basis and solution of social issues through ourconcepts of Health, Cleanliness, Beauty and Fun.
Themes of Unique Sustainable Management
Theme

Details

Creating strong ties with consumers bystrengthening/expanding Dedication to Service

We will focus on two aspects of Dedication to Service, that is, maximizing satisfactionof consumers and increasing contact with them, by creating unique new value andproviding this to consumers through products, communication and distribution.

Training human resources that form a society,promoting active engagement of a diverse
cohort of employees

We will train all employees to be diverse “human assets,” who should take an active
part in rewarding work and contributing to the corporate future and society throughDedication to Service.

Contributing as good corporate citizens to asustainable society

We will dedicate ourselves to the realization of a sustainable society by analyzing theimpact of all our business activities, including supply chains as well as products andservices, on the global environment and society from a long-term perspective.

Taking measures to be a going concern

Through social responsibility & sustainability, we will continue to develop as acompany that is recognized by all stakeholders for its value, with the dynamism tosurvive in any era.

Relationship between the 4 themes
Creating strong ties with
consumers by strengthening/
expanding Dedication to Service

Training human resources that form asociety, promoting active engagementof a diverse cohort of employees

Contributing as good corporate
citizens to a sustainable society〈 The last theme is the basis on which three other themes will be developed in a medium- to long-term plan 〉

Taking measures to be a going concern

22

Mandom Report 2023

Group
Process of Identifying Material Issues (Materiality) in Sustainability

1

List the threats/risks and opportunities surrounding the Company based on social trends

2

Extract themes of initiatives based on threats/risks and opportunities

About Mandom

Step
▼

Step
▼

Step

3

Identify “key themes of initiatives” from themes of initiatives and the following matters・Key matters in Household & Personal Products sector set ・Framework of Company
by external organizations*
Mission and each strategy▼

4

Have dialogues on the key themes of initiatives identified in Step 3 with external experts (14 persons
across nine companies)

5

Submit the Material Issues (Materiality) in Sustainability revised following the dialogues in Step 4 to
Sustainability Promotion Committee (currently Sustainability Committee) for approval

Value Creation Story

Step・Degree of impact on the
Companyʼs business

▼

Step

* External organizations: FTSE, MSCI, SASB

Material Issues (Materiality) in Sustainability
Commitment

Related SDGs

Materiality

Materiality

Future challenges to be addressed by taking advantage of our strength and creating values

Creating an easy-to-start grooming
culture➡ P.26➡ P.34

We will promote work-style reform to improve “productivity per unit,”“growth of individuals and job satisfaction” and “creativity” so that all
employees as “human assets” may support the company and society.

Middle-Range Planning➡ P.31

We will respond appropriately to changing senses of values andconsumption behavior of consumers and maintain an environment inwhich consumers can look and choose the products and services thatserve and satisfy a billion customers on earth.

Expanding Dedication to Service toa diversity of consumers

Realizing mutual growth of
employees and the company

Based on our original concept of “Health, Cleanliness, Beauty andFun,” that is, the basic parts of “Health, Cleanliness and Beauty”
combined with “Fun,” we will make consumers have fun and feelsatisfied with everyday life through products and services that only
Mandom can provide.

Actions for sustainable global
environment➡ P.39Sustainable procurement of raw
materials➡ P.45

Performance for the Fiscal Year Ended March 31, 2022

Issues to be addressed to realize a sustainable society and company
Switching over to a recycling-based society in our view, we will takemeasures to reduce our environmental burden at all stages of the life
cycle of products, including less dependence on plastics. Regarding
reduction of greenhouse gas emissions, we hope to realize virtuallyzero greenhouse gas emissions by 2050.
We will procure palm oil, paper, etc., ethically. Our action ranges
from protection of forests and biodiversity to execution of corporatesocial responsibility by sustaining natural and labor environments andrespecting human rights throughout all supply chains.

Company Information

Our everlasting mission is expanding and strengthening our Dedication
to Service, which is feasible on the assumption that we are a going
concern. Besides ensuring safety and security, we will strengthenbusiness systems based on our philosophy.

Maintaining/enhancing thecorporate base➡ P.48▲CSR Information
Mandom Group CSR > Sustainability Strategy and Materiality

Mandom Report 2023

23

Materiality and Sustainability Strategy of the Mandom Group

Medium- and Long-Term Targets and Progress on Material Issues (Materiality) in Sustainability
The Company formulated its sustainability policies and identified
materiality in FY2021 and has been promoting initiatives inthis regard. However, no specific materiality-related evaluation
indictors and targets had been disclosed previously, which wasconsidered to be an issue. The ESG Executive Committee,
which was newly established in FY2022, has scrutinized andMateriality

Theme of initiatives

consolidated the themes of initiatives, as well as deliberated andformulated medium- and long-term targets for the material issues(materiality) in sustainability. Moving forward, we will continuously
review materiality-related matters in consideration of the latest
social conditions as well as the opinions and expectations of our
stakeholders, while reporting on our progress.

Evaluation indicator

Medium- and long-term targets
TargetProgressYear of(FY2022 results)
achievement

Future challenges to be addressed by taking advantage of our strength and creating values

Creating an easy-tostart grooming culture

Strengthening our
Dedication to Service(“Oyakudachi”) for
consumers who
actively express theirindividuality

Number of proposals on a new cosmetic fieldthat “enables consumers to freely express their Three or more proposals per year
own individuality” or on consumer attributes
Number of proposals on new technologythat contributes to solution of issues
faced by consumers

Participation rate of employees in training
Developing humanresources to create a programs for penetration of Only One
new grooming culture Marketing

Expanding Dedication
Expanding our
Number of challenges addressed to
to Service to a diversity
Dedication to Service expand our distribution networkof consumers

Realizing mutual
growth of employees
and the company

Ratio of “active engagement employees”
Creating a culture
in a philosophy surveythat encourages
employees to take on
new challenges
Employee engagement
Active engagement
by diverse humanresources

Each year Eight proposals

35 or more proposals in total from 2021 to
2027

2027

Eight proposals (total
number of proposals
from 2021)(To be disclosed in FY2023)

2027

Target to be disclosed
in FY2023

13 or more attempts per year

38% or higher

81% or higher per year

Each year 44 attempts

2027

16%

Each year 70%

20% or more (Mandom Corp.
(non-consolidated))

2027

11.9%

CO2 emissions reduction (compared to
FY2013) in Scope 1+2CO2 emissions reduction in Scope 1+2
in Japan and overseas: 43% or morecompared to FY20132027

14.8% reduction

Achievement of zero CO2 emissions
Group-wide

Completed preparation of scenarios forachievement of zero CO2 emissions
Group-wide by 2050

2027

Scope 3 emissions foroverseas group companies
under calculation

Fossil resource-based virgin plastics
emissions reduction ratio

25% or higher

2027

5.7%
(compared to FY2016)

Eco-friendliness in
products

Mandom Group standards-based ecofriendly products ratio

Eco-friendly products account for 90% of
the Mandom products sold in Japan.

2027

53.5%

Palm oil

Ratio of RSPO -certified palm oil among
palm oil that is used as an origin of raw
materials

Switching 100% of palm-derived raw materials
used at the Fukusaki Factory to RSPO* -certified
palm oil (including book-and-claim compliance)

2026

38.1%

Paper containers
and packaging
materials

Usage rate of FSC® -certified paper for
paper and containers and packaging, andrecovered paper usage ratio

Switching completely to the use of FSC®certified paper/recovered paper for paper
containers and packaging

2027

89.0%

Providing safety,
security and highquality

Number of complaints about quality

Serious complaints: 0

Each year

Two complaints

Safety and securityof employees

Number of employees on long-term leave

Less than 10 (in Japan)

Each year

15 employees

Pursuing themissionMission sharing ratio

65% or higher

Each year

62%

Ratio of women in managerial posts

Issues to be addressed to realize a sustainable society and company

Actions forsustainable global
environment

Sustainableprocurement of raw
materials

Maintaining/enhancing thecorporate basePromoting measures
toward a carbonfree society* RSPO: Roundtable on Sustainable Palm Oil

24

Mandom Report 2023

（FSC N003667）®

Sustainability Promotion System

Decisionmaking

Group and holding discussions with relevant departments at
committee meetings and other meetings, we are strengthening
our efforts to contribute to the sustainable development ofsociety.

About Mandom

We have established a Sustainability Committee headed by
the President Executive Officer with the aim of strengthening
the sustainability promotion system. While developing ourapproach for promoting the sustainability of the MandomSupervision

ESG Executive Committee

E

S

G
Value Creation Story

Sustainability Committee

Board of Directorsʼ Meeting

Quality Assurance Committee

S SocietyOccupational Health and Safety Committee
Total Risk Management Committee

G Governance<Secretariat>

Activities carried out by other related departments

E

S

G

Materiality

Corporate
Planning Div.

Code of Conduct Promotion Committee▲

CSR Information
Mandom Group CSR > Mandom Group Sustainability Promotion System

Activities of the Sustainability Committee and associated committees
Committee

FY2022 Themes●●●

ESG Executive Committee

●

●

●

Quality Assurance Committee

●

●

●

●

Occupational Health and Safety
Committee

●

●

●

●

●

●

Code of Conduct Promotion
Committee●●

Conduct management reviews based on quality assurance regulations
Summarize reports from customers
Respond to quality issues
Report on safety issues
Report on product recalls as well as recall-related issues and measures to be taken
Conduct and report on quality training and internal quality audits as well as plans for FY2023
Improve the health and safety as well as workplace environment of employees
Provide information to improve employee health
Adopt measures to prevent leakage of confidential information due to viruses
Promote the Human Ethical Testing Committee (subcommittee)
Review policy on responding to the present COVID-19 situation
Formulate BCP for the head office
Respond to contingency risks in each operating country

Company Information

Total Risk Management
Committee●

Review medium- and long-term targets related to materiality
List threats/opportunities relevant to management and business issues in MP-14
Report on the latest sustainability-related issues

Performance for the Fiscal Year Ended March 31, 2022●

Formulate medium- and long-term targets related to materiality
Supervise and manage associated committees, including evaluating, analyzing, andproposing improvements to their activities
Determine the themes of initiatives to be strengthened in FY2023

Middle-Range Planning

Sustainability Committee●

Determine policies for company-wide education on Mandom Code of Conduct
Review current status of internal reporting system and consider measures for raisingawareness of the system

Mandom Report 2023

25

Materiality:

Strengths and initiatives to help

“Creating an easy-to-start grooming culture”
We at Mandom aim to be a company that is dedicated to service by proposing concepts born from the day-to-day lives of consumers
as genuine value through our “human-oriented” approach.
Dedication to Service (Oyakudachi) has two aspects: “depth” in terms of how much satisfaction can be provided to a single consumer,and “breadth” in terms of how many consumers can be satisfied. In the age of VUCA, where the future is uncertain and complex, andconsumersʼ needs and wants are becoming more and more diverse, proposing unique and one-of-a-kind products and services thatmeet their needs and wants will expand the “depth” of our Dedication to Service (Oyakudachi) and lead to the realization of well-being*
for as many consumers as possible and to Mandomʼs sustainable growth.
Mandom has always been and will continue to be committed to our original concept of “Health, Cleanliness, Beauty and Fun” that is,the basic parts of “Health, Cleanliness and Beauty” combined with “Fun,” and we will make consumers have fun and feel satisfied witheveryday life through products and services that only Mandom can provide.

Strengths of Mandom 1

Only One Marketing
Proposing products that lower taboo lines to freely
enjoy cosmetic actions
The Mandom Group pursues a unique marketing model in which weconstantly interact with and give care to consumers. This is in order to meettheir latent needs and wants and guide their discoveries and feelings undera marketing philosophy of “Only One Marketing through Consumer-led
Lifestyle Value Creation.”
For example, in 1989, when it was considered a given that cosmetics had

1LÚCIDO, a fragrance-free brand (launched in 1989)

2

GATSBY Facial Cleansing Wipes (launched in 1996)

3

GATSBY Hair Color Series (launched in 2001)

fragrances, Mandom launched the fragrance-free brand LÚCIDO in
response to the wants of consumers who said they could not use fragrantcosmetics because of their professions, or that the fragrance of cosmetics
bothered them because they were particular about the fragrance they wore.
In 1996, “GATSBY Facial Cleansing Wipes” were launched to meet thewant to wash and thoroughly refresh oneʼs face while on the go.
This product introduced the grooming habit of cleansing oneʼs face withwipes, which had not existed until then.
This was followed by the release of body cleansing wipes that easily wipeaway perspiration and provides a refreshing sensation as a body careproduct for the hot and humid Japanese summer.
In addition to proposing a new grooming habit, we expanded the sheet care
category in the menʼs cosmetics market.
In 2001, we launched the GATSBY hair color series for men with dark hairto accommodate the rapidly-increasing want among young men to maketheir hair a lighter color.
This series made it easier for men to color their hair and has led to the
spread of hair coloring as a fashionable daily activity for young men.
In this manner, we have created several new markets for menʼs cosmetics.

26

Mandom Report 2023

This is true not only for menʼs cosmetics, but also for womenʼs cosmetics.
Against the backdrop of an increase in the number of busy women with
About Mandom

the progress of women in society, such as working women, working
mothers, and solo-parenting mothers, we proposed a water cleansing
product that can perform cleansing, washing, and toning in a single
wipe-off, regardless of location, to meet the wants of women who are
tired and want to go to bed immediately and who do not have time forcleansing. This product is now widely distributed not only in Japan but

4

Bifesta water cleansing (launched in 2011)

also in other Asian countries.
Value Creation Story

Under the philosophy of “Consumer-led Lifestyle Value Creation,” we have always been close to consumers, proposing new cosmetic
actions and creating markets in order to respond to the changing wants of consumers over time.
Consumers, either consciously or unconsciously, draw lines that define what acceptable cosmetics and cosmetic actions are andwhich ones cross into taboo territory. We believe that offering value propositions that encourage consumers to freely realize their own
individuality while enjoying cosmetic actions, free from such their stereotypes and current norms will lead to the realization of ourcorporate slogan of “BE ANYTHING, BE EVERYTHING.”

cosmetics

3. Hair coloring for men

your face and body evenwhen away from homewith sheet cosmetics.

Lowering taboo lines tomake cosmetic actions
more freely enjoyable– Creating new markets with new value proposition –Changing hair color is a partof womenʼs fashion. Whenmen do it, however, they arelikely to be seen as unserious.
(2001)

Cleansing requires a place towash up. Facial care issomething you do carefully after
washing your face twice, right?
(around 2010)

Performance for the Fiscal Year Ended March 31, 2022

for them to freely
enjoy coloring their
hair too.

2. Casually refresh both

Middle-Range Planning

Cosmetics being fragrant is to be
expected, but the fragrance gets inthe way of my perfume.
(1989)

Materiality

1. Fragrance-free

I would love to wash my faceor shower to refresh myself
away from home, but itʼs justnot feasible.
(1996)

4. Completely cleanse andmoisturize your faceanytime, anywhere justby wiping it.

Company Information

Mandom Report 2023

27

Materiality: “Creating an easy-to-start grooming culture”<Feature> Only One Marketing Topics– LÚCIDO-L: A popular, dear-and-near hair beauty cosmetics brand –Tackling the challenge of the hair care category and massmarketing LÚCIDO-L as a salon brand
Case
study

LÚCIDO-L

Since we launched it in 1993 as a hair styling brand, LÚCIDO-L has won overconsiderable recognition and popularity for its reliable quality and a newly-proposed
form. Today, we have a wide-ranging lineup of LÚCIDO-L products that go beyond
hair styling to hair coloring, hair care and other types of hair beauty cosmetics that
we have rolled out across Japan and in other Asian countries.
Below, we will introduce our initiatives in the hair care category, which is enjoying favorable sales growth at present.

A hair styling brand tackling the challenge of the hair care category
With LÚCIDO-L, we proposed styling products matched to trendy hair styles since initially releasing the series. Our products and theirconsiderable styling power, which constitute Mandomʼs original strength, were combined with recognition of those productsʼ highquality to win over women of a wide range of ages. From 2000 onward, alongside the entrenchment of hair coloring and styling
conducted with the use of hair irons and other thermal appliances, consumer awareness surrounding hair care grew, and the hair caremarket, driven by the likes of non-bath hair treatment, also grew.
Many a time, we had proposed non-bath hair treatment under the LÚCIDO-L brand as well. However, at the time, the hair care market
favored in-bath hair treatment, and we continued to struggle in our challenge of the hair care category for many years.

Mandomʼs Oil Treatment series becomes a hit
Then, in 2014, we turned our focus to argan oil, which had started becoming a target of attention at hair salons. As LÚCIDO-Lʼs image
as a hair care option was anemic relative to the sway carried by in-bath brands, we shifted to product proposals that carried a sense oftrendiness and quality.
At the time, argan oil was attracting attention for being plant-derived and having a considerable moisturizing feel. On the other hand, alarge number of hair oils that were launched amid the prevailing trend of natural hair styles felt heavy when used, and there was noshortage of consumers who were unable to effectively use the oils due to factors such as the difficulty in adjusting what part of thehair to use them on and how much to use. Another hurdle consumers encountered in buying the oils were that they were priced
somewhat highly. With that in mind, Mandom offered the “LÚCIDO-L Oil Treatment Series,” an approachable and easy-to-use productline containing argan oil, to general consumers as a series for mass distribution, which we specialize in.
In addition to offering this series with an affordable price point for many, we applied high-pressure treatment to the argan oil within toenhance the diffusibility of each strand of hair and give it a light, smoothfinish. Easy for novices to use as well, the series became hit items that werelauded on word-of-mouth websites as well.
Today, there is a greater number of items in the LÚCIDO-L Oil Treatment
series, which has growth into a leading series under that brand with over 17
million units shipped cumulatively.
This series played a considerable role in making argan oil a dear-and-near haircare item for many people and successfully turned it into a leading
mass-market trend. These and other factors translated into both greater salesof LÚCIDO-L products and a larger hair care market.

28

Mandom Report 2023

About Mandom

Originating from hair salons: Acid heat treatment
In recent years, given the high damage caused by hair coloring and thermal devices such as hair and crimping irons and growing
demand for more beautiful hair, “acid heat treatment” has been touted as a means of improving hair quality, and has been enjoying
popularity as a popular treatment option at hair salons.
Value Creation Story

This option requires a technician at a hair salon to apply heat to hair using a hair iron in the treatment process, and typically exceeds¥10,000 in price. While relatively high-priced, it has a real sense of being effective and is thus a popular option.

Challenge of commercializing acid heat treatment as a home hair care productMateriality

Given that, taking a cue from the treatment offered at hair salons,
we launched the “LÚCIDO-L High Damage Repair Treatment Series”
containing acid heat treatment* ingredients in August 2022. Using a
Mandom Group company that supplies professional-use products andtechnologies to hair salons and leveraging our strengths from years ofhair research, we developed a formula that can be easily used at homewith ease and provides a truly genuine sense of treatment. WithLÚCIDO-L High Damage Repair Treatment series, we proposed items
that enable consumers to casually experience acid heat treatment as
part of their hair care and styling routine by applying the heat from adryer they normally use to dry their hair or hair iron they use to style
their hair to simulate the level of heat required in acid heat treatment.
* Levulinic acid

Middle-Range Planning

Offered our first acid heat treatment for mass distribution

Performance for the Fiscal Year Ended March 31, 2022

Even prior to the launch of this series, retailers also had highexpectations for this new, unprecedented proposal of making the
popular acid heat treatment at hair salons casually available atconsumersʼ homes. Stores carrying the series greatly exceeded ourtarget. Following launch, the series was considerably noted and praisedby highly trend-sensitive consumers as well, and was also a hot topic
on social media. With growth in awareness of acid heat treatment
showing no signs of slowing down, the market is expected to growfurther going forward.
Meanwhile, people in the Asian region are highly conscious of hair
beauty as well. The series is performing strongly in Taiwan, where werolled it out early on through a Mandom Group company, and we intend to further expand the rollout area within that region.
Additionally, in August 2023, we will add shampoo and treatment to the lineup to enhance it, and will work towards proposing thislineup as the first full-fledged in-bath series under the LÚCIDO-L brand.

Looking towards the further growth of LÚCIDO-L
Company Information

Our Oil Treatment series containing argan oil, which continued to perform favorably with little impact from the COVID-19 pandemic, as
well as our High Damage Repair Treatment series containing acid heat treatment ingredients, which we newly launched in 2022, helpedLÚCIDO-L reach its highest net sales on record during the fiscal year ended March 31, 2023.
Going forward, Mandom will continue to propose leading trends with speed and in ways that more and more people find approachable
and easy to use, and will work towards expanding its Dedication to Service (Oyakudachi) alongside creating new markets.

Mandom Report 2023

29

Materiality: “Creating an easy-to-start grooming culture”

Strengths of Mandom 2

Menʼs Cosmetics
Achievements and knowledge in the menʼs cosmetics field
Overwhelming presence in menʼs cosmetics since Tancho
and MANDOMAt Mandomʼs founding, we were known for Kintsuru Perfume.
Mandom did not start out specializing in menʼs cosmetics.
After launching hit products such as Tancho Tique and the MANDOM series, webegan to establish a strong presence in menʼs cosmetics.
PIXY, a series of cosmetics centered around makeup, has been rolled out in Indonesia since 1987. Mandom also globally launched
the Bifesta cleansing and face wash brand in Japan and other Asian countries in 2010 onwards. Both of these series have been
performing well, experiencing expanding sales. However, even now the core brand of Mandom remains the menʼs GATSBY brand.
In order to satisfy the high expectations of male consumers, primarily in the long-selling GATSBY series and LÚCIDO cosmetic brandfor middle-aged men, Mandom has invested people, resources, and money to continue tracking changes in menʼs tastes and values.
We possess the advantage of having continuously conducted proprietary research on menʼs hair and skin.

GATSBY, our menʼs grooming brand enjoying tremendous popularity in Asia
Born in 1978, for over 40 years GATSBY has continuously delivered an enjoyable grooming experience to young men in their teensand 20s in various Asian countries. We offer a wide range of products in a variety of categories for all grooming situations, frompersonal grooming to fashion, including hair styling, hair coloring, skin care, shaving, body care, and fragrances.
GATSBY is currently available in all of the 12 areas where Mandom does business, including Japan.
Although GATSBYʼs brand philosophy is globally unified, different products are sold in Japan and other countries.
Needs or wants and the standard of living of local consumers differ between Japan and overseas countries; therefore, the content andselling price of the products are designed differently for each country.
As a result of focusing on the young male in our business expansion in Asia, not just with products but also with communication andin-store points of contact, the name recognition of the GATSBY brand is high in many countries, and it has penetrated to the point of
establishing a number one position in the hair styling market. With the spread of social media, we will continue to offer products andvalue that can help men realize their ideal selves, in line with their ever-increasing awareness of fashion.

GATSBY brand awareness in major Asian cities (%)
GATSBY Japan for men
Cosmetics
Brand share*1

GATSBY Indonesia
Hair styling products
Brand share*2

No.1

No.1

GATSBY Japan for men
Hair styling products
Brand share*1

Total quantities of
GATSBY-brand products shipped by
the Mandom Group in FY2022

40% or higher

260 million units*1 Period: April 2022–March 2023; all business categories, monetary value (market data by
Mandom calculations)*2 Period: January 2022–December 2022; monetary value of brand sales (RMS Nielsen)

30

Mandom Report 2023

72.9

Jakarta

60.7

ManilaJapan

48.8

Kuala Lumpur

43.9

Singapore

33.5

Bangkok

33.3

Hong Kong

28.5

Shanghai

27.7

Taipei22.5

Ho Chi Minh

18.8

Seoul

17.1
Mandom survey (2022)

Materiality:

Strengths and initiatives to help

“Expanding Dedication to Service to a diversity of consumers”
The second aspect of “Dedication to Service (Oyakudachi)” is “breadth” in terms of how many consumers can be satisfied.
As a means of dedicating ourselves to serving as many consumers as possible, we will pursue both “depth” in the form of brand,
About Mandom

communication and categories and “breadth” of distribution and area as we aim to become a global company capable of continuing tocreate strong ties.
At Mandom, we will create new, unique value while keeping an eye on foreseen changes in our market environment and establish
systems through which we can continue to provide that value to consumers through products, communication, and distribution as we
aim to “use our ʻOnly Oneʼ strengths to provide Dedication to Service (Oyakudachi) to a billion people around the world.”

Strengths of Mandom 3
Value Creation Story

Overseas Expansion Focused on the Rapidly Growing Asia
The Mandom Group views overseas countries as markets rather than production bases. We have been engaged in overseas businesswith the policy to demonstrate Dedication to Service (Oyakudachi) to local consumers through our products.
Our overseas expansion began with the commencement of operations at Tancho Corporation, our technical tie-up in the Philippines, in 1958.
Later, in 1969, we established a subsidiary in Indonesia via a joint venture.
Since then, we have continued to expand our area of operations, and today, we have 13 business companies in 11 areas in Asia.

Materiality

Furthermore, we export our products from Indonesia to more than 90 countries, including in the Middle East and Africa, via Dubai (UAE),
which is a global trade hub.
Since our founding, there has been a spirit of spreading high-quality and best-value products at Mandom. In our overseas operations,
we target the general public in each area. We are engaged in product development with a thorough emphasis on Consumer-led
Lifestyle Value Creation for the consumers in each area, not getting caught up in what products are popular in Japan.
If there is a need or want among consumers, we will boldly take up the challenge to roll out products in various categories, regardlessof whether we have experience with such categories in Japan, such as with the Pixy makeup brand in Indonesia.

Middle-Range Planning

Moreover, lifestyle types, income levels, and preferences about fragrances vary depending on the area. As of now, we have placed
development hubs in Indonesia, China, and South Korea in order to offer products that match the preferences and buying power ofconsumers and have built a distribution network that makes it easy for general public consumers to acquire our goods. Through theseand other efforts, we provide reasonably priced products and services that allow people to enjoy personal styling.

Overseas Business Areas(The Companyʼs overseas operations are reported in two segments: Indonesia
and Overseas Other)

Performance for the Fiscal Year Ended March 31, 2022

South Korea
China

Menʼs cosmetics in Japan and overseas

TaiwanHong Kong

India

The Philippines
Company Information

Thailand

Vietnam
Malaysia
Singapore

Indonesia
Traditional trade store (The Philippines)

Mandom Report 2023

31

Materiality: “Expanding Dedication to Service to a diversity of consumers”

Strengths of Mandom 4“Unique Research” and “Reliable Technology”
to Respond to Consumer Wants
Conducting unique research to respond to diversifying consumer wants
Mandom Group conducts research and development focused on the three areas of “hair/scalp,” “skin,” and “deodorant/
antiperspirant,” an area which has gained significant interest in recent times.
Hair/scalp, skin, and deodorant/antiperspirant vary by individual depending on their race, gender, age, lifestyle, climate, and culture.
Just as each personʼs situation varies, so do their demands as consumers.
In order to respond to as many customer wants as possible, Mandom is proceeding with research and development in a wide range ofareas including the human body structure, function, and mechanisms in order to discover ingredients and apply them to products that
respond to these wants.

Hair/Scalp
As a sector, hair/scalp is considerably affected by the external environment surrounding consumers, such as climate and trends, as well as by consumersʼ own
internal changes such as growing in age.
In order to continue to address the ever-changing, ever-evolving new wants and concerns of consumers, Mandom conducts research and development from theperspective of consumers to develop bold and revolutionary products.
Research
ExampleRealized perm-like hair arrangements by fastening fine crystal “spikes” atop hair

Our “GATSBY Meta Rubber Series” that we launched in February
2023 is a new form of styling product for young men who pursue efficiency
and cost performance at an affordable price point. This series strikes a balance
between setting power and ease of use. Of particular note is “GATSBY bubble/ perm-style creator,” a revolutionary product utilizing foam that can be spread
into hair with ease to arrange even straight hair into perm-like style without
actually getting a perm.
After the foam agent is evenly applied to and spread into the hair, it dries to

Skin
Mandom has continuously conducted surveys and research related
to the condition of skin in both men and women and has shown that
there are unique conditions for the skin of each gender. In particular,
we have carried out fully designed surveys and research on men
before anyone else in the cosmetics industry.
We discovered that menʼs skin has attributes different fromthat of womenʼs. In recent years, we have conducted researchand development which consider how skin condition makes the“impression of appearance.” We have also made new discoveries
about women through research focusing on the relationship between
the menstrual cycle and skin condition.

Deodorant/Antiperspirant
Body odor influences oneʼs impression and plays an important rolein achieving smooth communication. Understanding body odor andtaking appropriate care is directly linked to a clean and comfortable
life. Mandom is engaged in research and development to propose
products best suited to various body odors, such as with thediscovery of new body odors like the “middle-aged body odor” which
had not been identified before and the development of technology tolimit the function of substances which are the source of body odor,
including sweat.

32

Mandom Report 2023

Research
Exampleform crystals called “spikes” that attach themselves to the hair as a whole.
This gives hair adhesion and manifests a function through which hair strongly
pulls at each other. This makes it possible to bundle hair in the threedimensional curls that define perm hairstyles.
Some people are averse to perm treatments due to factors such as damage tothe hair and scalp, the risk of a perm that does not come out right, and cost.
We at Mandom believe that the technology in this product makes it possible tocasually enjoy a perm-like hairstyle, thereby offering new value to consumers.

Concealer is proven to instantly change the impression of theskin of middle-aged men by reducing the appearance of blotches,
redness, and dry skinIn a joint study with Assistant Professor Koyo Nakamura and Professor Katsumi Watanabeof the School of Science and Engineering, Waseda University, it was found that the
makeup effect of concealers tended to reduce the “noticeability of blemishes,” “noticeabilityof scars,” and “redness of skin,” as well as the “apparent age.” It was also found to havea stronger effect of reducing the appearance of blotches close rather than far away,meaningfully improve oneʼs impression of leadership, and make one appear younger when
the face was slightly tilted to the side rather than facing straight forward.

Research
Example3D structure of sweat gland published in “Grayʼs Anatomy,” thecommon anatomy textbook used worldwide

The (Mandom) Joint Research Program in the Laboratory of Advanced Cosmetic Scienceat the Graduate School of Pharmaceutical Sciences at Osaka University produced a new
visualization of the detailed structure of human sweat glands and the blood vessel structurethat is the source of sweat production. This image was published in the “Skin” part ofChapter 1 of “Grayʼs Anatomy.”
Based on this knowledge, if ideas that solve sweat gland disorders are born and ourunderstanding of the basic mechanisms of sweat glad contraction and maintenance of
homeostasis are deepened, this will not only help in development of the next generation of
antiperspirants, but also contribute to medical developments through the elucidation andtreatment of medical conditions related to sweat, such as heat stroke and hyperhidrosis.

Strengths of Mandom 5

Product supply system comprised of three manufacturingbases with different missions

About Mandom

Production and Supply System Which Seeks the
Spread of High-Quality and Best-Value Products▲

Three manufacturing bases which
support the Group

Value Creation Story

Mandom Group reinforces the concept of products through Consumer-led Lifestyle
Value Creation in each Asian country we operate. Mandom has three manufacturingbases in Japan, Indonesia, and China in order to provide high-quality, reasonably
priced products and services which fit the changing income levels, wants, and tastes
and lifestyle of consumers in various countries.
Fukusaki Factory in Japan takes the lead of the Group as an innovation center withtechnological and production functions. It is the supply base to provide high quality“Made in Japan” womenʼs cosmetics, including Bifesta, to Asian countries.
Starting in February 2019, we carried out the construction of a new productionbuilding to meet the expected supply capacity, including domestic and overseas
exports, by the time we reach VISION2027, the 100th anniversary of the Companyʼsfounding.
Previously, there were some inefficiencies due to the transfer of items among fivebuildings between delivery of raw materials and shipping of finished goods. With
the new production facility, each building is connected by a walkway that enables
employees and raw materials to pass indoors throughout, which has improved
efficiency. We made the buildingʼs design environmentally friendly, aiming to obtainan A rating under the CASBEE *1 evaluation standard. We are also implementing IoT,
AI, and robotization, to help improve accuracy, product quality and efficiency whilesaving labor.
The new production building has been in operation since November 2021.

Fukusaki Factory (Japan)
Production volume: 144 million units

Materiality

Factory 1 (Indonesia)
Production volume: 409 million units

Our Indonesian factory, which serves as a global production center, has a production
structure that allows it to manufacture high-quality, cost-competitive products. The
factory primarily supplies ASEAN countries, but its global reach extends to manymarkets. Our factory in China primarily supplies products to the countryʼs domestic
market and provides additional production for the Group.

Middle-Range Planning*1 CASBEE (Comprehensive Assessment System for Built Environment Efficiency): Methodology of evaluating
and rating the environmental performance of buildings

Zhongshan Factory (China)
Production volume: 14 million units

We are also taking efforts to construct a system to substitute, provide
complementary production, and conduct shipping in cases when natural disasters or
accidents occur at factories.

Performance for the Fiscal Year Ended March 31, 2022

Note: Production volume based on FY2022
performance

Product supply system which fits various GDP levels and local requirements
Group companies in each country sell products with their own unique product mix; importing products from Japan, Indonesia, andsome from China, tailored to the GDP levels of the countries, consumersʼ income levels, and lifestyles.
In each country, products produced in Japan are in a higher price zone, while products produced in Indonesia are in a more reasonable
price zone and products produced in China are between those two zones. This makes it possible to arrange the best product mix foreach country.

Comparison of net sales by manufacturing center

The Philippines

Malaysia

Singapore

Per capita nominal GDP

Per capita nominal GDP

Per capita nominal GDP

US$ 3,572

US$ 11,425

US$ 72,795*2*2Company Information■ Made in Japan■ Made in Indonesia■ Made in China
Note: Composition excluding
products from othercompanies*2*2 2021 values from the JETRO website
Mandom Report 2023

33

Materiality:

Strengths and initiatives to help

“Realizing mutual growth of employees and the company”
Strengths of Mandom 6

Highly-Engaged Employees
Believing the instillation of our corporate philosophy in all employees and its implementation to be a matter of the highest priority
in order to realize “VISION2027,” our vision for 2027 when we commemorate the 100th anniversary of our founding, in 2017, thefirst year of our “MP-12” 12th Middle-Range Planning, we conducted a series of initiatives to instill that philosophy among all Group
employees with the considerable speed of just six monthsʼ time. We started by holding discussions among officers through gatherings,
then instilled our corporate philosophy among department heads positioned as “evangelists,” and finally instilled it from the various
department heads to their respective department staff through holding workshops.
Every year since 2018, for the purpose of following up on the degree of awareness among employees, we have continued to conduct
employee surveys, provide feedback results, and hold workshops in each department to address their respective issues based on that
feedback.

FY2022 survey results and Group response
1 Sustainable engagement

Sustainable engagement score

Unfortunately, our “sustainable engagement” score fell by threepoints over last year.

80.0This is presumably due to anxiety about the company,
which has struggled for the past two years, and a decline
in satisfaction. We believe that initiatives and measures areneeded to dispel these concerns.
Engagement scores were slightly lower than last year andcomparable to the Japanese standard. We will aim for the level ofglobal consumer goods manufacturers as a medium- to long-termtarget value through the resolution of issues, including surveys.

Medium- to long-term target value: 81pt*

60.0

40.0

20.0

0.0

Mandom2020

Mandom
2021

Average ofMandom Japanesecompanies
2022* Set based on global manufacturing industry standard value

Points of superiority in benchmark comparisons▲▲

Points that showed improvement compared to FY 2021
Authority/discretion▲

Points that did not show improvement compared to FY 2021
Well-being

The development of new products to strengthen the brand led
to long working hours in some departments, resulting in a lower
score with respect to consideration for employee health. We arepromoting health management and believe that employees mustbe healthy both physically and mentally as a prerequisite for theirrewarding and lively activities. We have begun efforts to rectify thissituation.

34

Mandom Report 2023

Goals/targets
This is presumably due to our high level of understanding of thestrategies of each affiliated department and the significance ofeach employeeʼs work, and the fact that Dedication to Service(Oyakudachi), the foundation of our philosophy, is instilled in
employees on a daily basis. In the future, we intend to create value
by synchronizing management strategy and organizational strategy
more closely, with the department heads as key persons.

Points of inferiority in benchmark comparisons▲

The score increased with respect to the delegation of authority
necessary to promote operations and the provision of challenging
and fascinating work opportunities. The three years throughFY2023 (fiscal year ending March 31, 2024) are positioned as a“period of transformation and challenges” in the 13th Middle-Range
Planning “MP-13,” and we assess that this has gradually begun toinstill throughout the company.
In April 2023, we implemented organizational restructuring,
including flattening of the organization and consolidation andelimination of departments, with the aim of delegating authority,
speeding up decision-making, and strengthening collaboration
among departments. We will continue to create an environment
in which employees can demonstrate their abilities to the fullest
extent.

Leadership
Employees are becoming increasingly anxious about the company
and managementʼs strategies, decision-making, and response tochange amid struggling business performance arising from the
COVID-19 pandemic. We believe that more careful and continuous
communication is necessary.
In addition to the “distribution of video messages from Supervisory
Executive Officers to employees” and “dialogue sessions between
the President and employees,” which we have implemented until
now, we have been conducting training for department heads since
FY2023 with the aim of behavioral change to realize transformation.
We believe that department heads have the role of organicallylinking management with members of each organization. We aim
to create an environment and structure in which management andemployees can promote business in unison by realizing a system
in which management strategy and managementʼs ideas can be felt
more closely through the department heads.

2 Initiatives to improve engagement

Dialogue sessions between the President and employees
About Mandom

President Nishimura held dialogue sessions with employees that continued
from FY2021 with the objective of direct communication that leads to mutual
understanding and instillation of policies.
Purpose・Realizations of things that should be addressed during period of “transformation/
challenge,” and instillation of understanding of Mandomʼs medium- to long-term direction
・Regular sharing of awareness of issues, mutual understanding of each otherʼspersonalities
・Formation of sound and solid organizational climate and workplace

September 2022–January 2023

Value Creation Story

Session schedule
Total of 44 sessions

Number of participants
Mandom Corporation employees between their teens and 30s 238 employees in total(Participants in the previous year 247 employees/Total participants 485 employees)

Each dialogue session was held with three to eight employees. All of themwere conducted face to face in principle. Group-wide shared themes andindividual themes for employees in their teens and 20s, those in their 30s,
and new managers were configured as preliminary challenges, with each
employee asked to prepare prior to engaging in the dialogue.
Materiality

The most recent sessions, whose participants were mostly young employees,
yielded some important feedback such as “Internal communication andteamwork is becoming diluted,” “There are few regular opportunities to beʻpraisedʼ or sense a ʻDedication to Service (Oyakudachi)ʼ in the course of
performing duties,” “Itʼs difficult to understand superior policies, as they are
not being sufficiently conveyed,” and “Overtime work at a level that affects
work-life balance is becoming the norm.” With President Nishimura also
sincerely accepting this feedback himself, we have already begun initiatives
to solve these issues.

Middle-Range Planning

Meanwhile, numerous positive opinions were received regarding theimplementation of the dialogue sessions, such as “Rather than giving a cutand-dried response to individual employee concerns, the President carefully
addressed them, which pleased me,” “I feel at ease now knowing that the
President has a sense of the same kind of challenges that I sense on thefrontlines,” and “There were numerous realizations through dialogue withfellow employees in the same age group, which led to improved motivation.”

Performance for the Fiscal Year Ended March 31, 2022

These dialogue sessions are positioned as a meaningful opportunity
for employees to understand and share how the company and its top
management recognize the current situation and what direction they areaiming to take. We plan to hold dialogue sessions between the president andapproximately 200 employees who have not yet participated in the session in
FY2023.

Department head training

We already mentioned that department heads are “evangelists” for our
corporate philosophy. They are the bridge between our management teamand employees in our corporate organization, and are the key persons wholead the transformation and challenges in their respective organizations.
Given that, we established new department head training as a forum for
the Company to communicate its expectations for department heads
and encourage them to change their behavior in preparation for futuretransformation and challenges.

Company Information

Designed with a number of vertical and horizontal contact points in mind,
including those between fellow department heads, department heads andsubordinates, and department heads and our management team, this training
is conducted at the Osaka Head Office in a face-to-face format.
We plan to implement the training in series over the next year, from acquiring
the mindset of a department head and the knowledge and skills to lead theorganization and its people, to developing and implementing strategies fortransformation and challenges through these efforts.

Mandom Report 2023

35

Materiality: “Realizing mutual growth of employees and the company”<Feature> The Mandom Groupʼs Human Capital Management Initiatives–MHRX (MHRX HR Transformation) enters full-fledged operation–

In 2021, the Group formulated its corporate slogan of “BE ANYTHING, BE EVERYTHING.” This is an expression of the form of new“Dedication to Service (Oyakudachi)” that we seek to realize from here on out, that being supporting all consumers to “live their own
lives” and sustainably creating a society in which they can achieve this and which is close to their ideals.
With a view to that realization, we regularly conduct ourselves so that each and every one of our employees can play an active role asirreplaceable human assets with diverse individuality and strengths (specialization) and practice Dedication to Service (Oyakudachi) byproviding new, unprecedented, one-of-a-kind value.
Additionally, amid the heightened uncertainty in our social environment in recent years in particular and the more pronounced
transformation of business models through DX, in order for us to enhance our corporate value on an ongoing basis through Dedication
to Service (Oyakudachi) for society, it is crucial that we cope with these social changes in a proper way and keep on giving rise toinnovation (creating new value) at a greater level than before.
At Mandom, we see “human assets with diverse individuality and strengths” as the true largest source of various innovations,and believe aggressive investment in those human assets to be imperative. Our approach to “human assets” in this fashion is also
consistently expressed in “Human Assets,” one of the Mandom Principles that constitute the Mandom Groupʼs code of conduct, andin “Happy individuals make a happy company,” our human resources philosophy.
Based on this idea, in order to realize “Dedication to Service (Oyakudachi)” for society and improved corporate value throughinnovation in conjunction with our management strategy, we have adopted the following five items as our main initiative areas withrespect to human assets: 1 “development of human assets” with diverse individuality and strengths, 2 new “personnel affair
system” that helps those human assets play active roles, promotion of 3 “health management” and 4 “diversity and inclusion,”and 5 practice of “work styles that enhance productivity and creativity.” We will proceed to practice the following concrete initiatives.

Management strategy
Linkage

Human asset development

Innovation

Personnel affair system

Development of human assets capable ofmaking transformations and taking on challenges

Career development
Ability development

Promotion of health management

Diverse “human assets” willbe the ones to realize these

Diversity and inclusion

Introduction of role ranking program
starting with jobs and autonomy

Work styles that enhance productivity and creativity

Human asset strategy
1 Development of human assets with diverse individuality and strengths (human assets

development policy)

In order for each and every one of our employees to grow as human assets with individuality and strengths (professional humanassets), we will need initiatives based on a multilateral standpoint that include fostering a mindset for autonomous career development
by employees themselves and the enhancement of specialized skills in each field.
At Mandom, we implement various measures aimed at the development of professional human assets within our organization.

Supporting employees in developing theircareer paths and abilities
We define human assets who engage in independent
career development as “autonomous human assets.”
In order for our employees to grow into autonomous
human assets based on that definition, we havecompiled the three pillars of “career development
assistance” made up of the dual axes of career
autonomy and ability development, the “creating
workplace opportunities” for employees todemonstrate the skills in their possession to
the fullest both internally and externally, and the“development of a foundation” to support theprevious two pillars into a system chart. Using thesepillars as a cornerstone, we establish various formsof education and programs for career and ability
development and conduct other related efforts.
36

Mandom Report 2023

Career development support system chart
Career development assistance
Career autonomy axis

Ability development axis

Accompanies examinationof career view andorientation that forms
premise for mastering
specialized skills

Goes from conventional“equal” ability
development to “selective”
ability developmentthat expands individual
employee specialization

Development of afoundation that supports
career autonomy

Creating workplace opportunities

Provides forums thatallow employees todemonstrate skills in theirpossession to the fullest

Prepares environment that enables employees to demonstrate
diverse individuality to the fullest and challenge themselves tobecome the professional that they want to becomeImplementation of DX education aimed at creating new value●●

About Mandom

Our belief is that in developing employeesʼ abilities, the development of abilities and skills in the areas of digital and DX is particularly
essential elements in future new value creation by Mandom. Having launched the DX Promotion Committee in May 2021, we are
currently pursuing the promotion of DX companywide, and are tackling the following two points in order to develop human assets
capable of creating new value by Mandom amid that transformation.
Select and train next-generation digital leaders
Implement digital education for all employees that fosters company culture of DX promotion

CSR Information
Mandom Groupʼs CSR KohDoh
Practices > Labor Practices >Human Resources Development▲

Initiatives developing and educating human resources

Value Creation Story

The recognition of DX initiatives at Mandom and our accompanying promotion system
satisfying certification standards based on the Digital Governance Code set forth by the
Ministry of Economy, Trade and Industry (DX promotion indices) as well as our information
disclosure efforts being adequately conducted to stakeholders, among others, led to Mandom
being a certified operator under the Digital Transformation Certification on August 1, 2022.

Please visit our website for information on standard training, employee education, andcareer support.

Internal Environment Development Policy
2 Introduction of job-type personnel affair program in line with
With a view to the creation of an organization and human assets capable of making
transformations and taking on challenges in order to realize Dedication to Service (Oyakudachi)
through the creation of new value, we initiated reforms of our human resources systemstarting with jobs and career autonomy (“Mandom HR Transformation,” or MHRX for short).
As part of those reforms, we introduced a role ranking program based on jobs in April 2023.

Materialitytransformation of personnel affair systems

https://www.mandom.co.jp/release/2023033101.html (Japanese Only)

Middle-Range Planning

Based on these reforms, through clarifying the responsibilities and skills required of eachrole, we will conduct fair and impartial evaluations and treatment in accordance with theextent of that role to enable our employees to sense worth in their work and, in turn, realizea system that can be tied into the creation of new value.
3 Promotion of health management
Based on the belief that healthy employees enhance the valueof the company, Mandom promotes the creation of workplaces
where employees can gain job satisfaction and all employees canparticipate in a comfortable work environment to achieve theirown well-being.

Performance for the Fiscal Year Ended March 31, 2022

As a result of these initiatives, Mandom has been selected underthe 2023 Certified Health & Productivity Management Outstanding
Organizations Recognition Program (large enterprise category) in
March 2023.

Main
measures・“Enhancement of health management promotion
system” through health guidance by and opportunities
to consult with public health nurses
・Placement of Health Management Promotion
Committee members at each business site
・“Promotion of visualization of health management”
in which information on health literacy and health iscommunicated to coincide with opening of internal
health management portal site
・“Implementation of health seminars” online

In June 2023, the Health Management Alliance was established
for the purpose of “designing a model for health management, co-creating solutions to make itwork, and implementing them in the industry.” Mandom will participate as a member of the “PracticeGroup” that co-creates a health management model and results through the sharing of initiatives ofparticipating companies. Through our participation, we will further promote our health management
by studying and implementing various initiatives based on the collective knowledge gained within the
Alliance.

Mandom Report 2023

Company Information

At the same time, “rectifying long work hours for certain employees” is a challenge of ours in ourefforts to further promote health management at Mandom. At present, average overtime work permonth for our employees is 15.5 hours. However, it has come to light that certain employees actuallywork long hours in excess of 30 per month (calculated with full-time employees including managers at Mandom Corporation (nonconsolidated) as the target using average hours per month for the three-year period between FY2020–2022). We believe that byrectifying all long work hours and creating an environment in which our employees can work soundly, we will be able to realize the wellbeing of our employees themselves as well as the creation of various forms of new value and a further improvement in corporate value
through that well-being. With that point in mind, Mandom has adopted a new target of “achieving ten hours or less of overtime work
per month on average for all full-time employees (including managers) by FY2027,” and will proceed to tackle this target.
37

Materiality: “Realizing mutual growth of employees and the company”

4 Promotion of diversity and inclusion
Based on our idea that “human assets with diverse individuality and strengths” are our true largest source of various innovations, wewill place a particular focus on active engagement by “female employees,” “midcareer hires,” and “non-Japanese employees,” andfurther promote initiatives geared towards diversity and inclusion.

Promotion of active engagement by female
employees
It is essential to have diverse perspectives rather thanthe uniform viewpoints such as “Japanese,” “men,” and“new graduates” in order to provide Dedication to Service(Oyakudachi) to consumers in the midst of diversifying values.
We believe that one of these perspectives is that of women,
and as such, we have established gradual conduct plans aimed
at promoting active engagement by women and realizing asociety in which womenʼs individuality andabilities can be fully manifested, and havepromoted initiatives to that end.
Recognition of the outcomes of such initiatives
led to Mandom acquiring the highest rankof three stars for the “Osaka City Leading
Company in Womenʼs Participation” ranking in June 2022 aswell as the “Excellence Prize” in the Large-Scale Enterprise
Category for 2022ʼs “Osaka City Leading Company in WomenʼsParticipation” in February 2023.
Additionally, in order to promote further active engagementby our female employees in the future, we have establisheda new indicator in the form of “female manager ratio of atleast 20% by FY2027.” To achieve that, we will proceed to
implement a number of initiatives that include formulating amanagerial position promotion plan for female employees
every single year, conducting various forms of training forfemale employees, and enhancing various forms of educationfor our management and managers to ready them for active
engagement by women.

・Proactive promotion of female employees to manegerial
positions in order to create various innovations byleveraging diverse individuality and strengths
・Personnel reassignments/postings and development
involving group bases with a view to active engagement
as global human assets
・Participation in career design forums for different
industry sectors

Example ofinitiatives

Trends in actual female manager ratio and future indicators（Persons）

（%）

40

24.0

20.0

30

18.0

11.9
20

6.9
10

0

6.0

8

10

…

FY2027target0.0

Notes:・Results of Mandom Corporation (non-consolidated) as of March 31 of each year
・The manager ratio was calculated based on the provision of the Act on the
Promotion of Womenʼs Active Engagement in Professional Life (Act No. 64 of
2015).
・Managers include General Managers and Managers. Executive Officers are notincluded.

We are promoting work-style reform to improve “productivity
per unit,” “growth of individuals and job satisfaction,” and“creativity.” Through this work-style reform, we will realizea work style that increases productivity and creativity while
employees demonstrate their individuality and strengths to thefullest without being bound by various constraints.

Mandom Report 2023

15

March 31, March 31, March 31,
2020
2021
2022

・Abolishment of core time as a general rule as wellas “introduction of flexible working hour system” thatenables employees to work flexibly during work hours,
not just at the start and end of them・“Introduction of work-from-home system” that covers“family residence” based on balance with caregiving
・Proposing hybrid-style work with fusion between atoffice and at-home work by utilizing the above twosystems

productivity and creativity

38

12.0

8.4

5 Practice of work styles that enhance

We are also promoting the proactive taking of childcare leaveby employees. As part of our general employer action plan
(between April 1, 2020 and March 31, 2023) based on the
Act on the Promotion of Womenʼs Active Engagement inProfessional Life, we adopted the goal of achieving 100% ofchildcare leave taken by both male and female employees.
Looking to achieve that goal, we conducted efforts suchas having the Human Resources Division make proactive
announcements aimed at having eligible employees takechildcare leave and requiring three-party interviews between all
eligible employees, their superior and the Human Resources
Division. The results for each fiscal year during the plan period
are as shown in the table on the right. We view this indicator
as something we should keep on achieving. Going forward,
we will continue to tackle it as we strive to continuously
achieve 100% childcare leave taken by both male and female
employees.

Left axis:■ Number of female
managers
Right axis:
Female manager ratio

Example ofinitiatives

Trend in percentage of childcare leave taken（Persons）

32

（%）

121.1

40

100.0

125.0

93.8

100.0

70.0

75.0

100.0

24
16

47.1

50.0

8
0

25.0

9

23 12

7

FY2020

FY2021

FY20228

15

0.0

Left axis:■ Number of employees
who have taken
childcare leave (male)■ Number of employees
who have taken
childcare leave (female)
Right axis:
Percentage ofchildcare leave taken(male)
Percentage ofchildcare leave taken(female)Supplementary information
・Results of Mandom Corporation (non-consolidated) as of March 31 of each year
・For percentages of childcare leave taken, percentages of childcare leave, etc. taken
under Article 71-4, item (i) of the Ordinance for Enforcement of the Act on Childcare
Leave, Caregiver Leave, and Other Measures for the Welfare of Workers Caring forChildren or Other Family Members (Ordinance of the Ministry of Labor No. 25 of 1991)
were calculated based on the provisions of the Act on Childcare Leave, Caregiver
Leave, and Other Measures for the Welfare of Workers Caring for Children or Other
Family Members (Act No. 76 of 1991).
・For the results of male employees for FY2021, given that certain employees who were
eligible to take childcare leave in FY2020 took that leave in FY2021, the number of
employees who took childcare leave in FY2021 exceeded the eligible number, yielding apercentage result of over 100%.

Materiality:

Strengths and initiatives to help

“Actions for sustainable global environment”
About Mandom

Recently, the severity of environmental problems such as climate change and plastic marine pollution have been increasing year by
year, and the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) released in 2021 states that “It is
unequivocal that human influence has warmed the atmosphere, ocean, and land.” The report concluded that human activities are also
responsible for the increase in extreme events such as heat waves and heavy rainfall that have been occurring frequently in recent
years.
We recognize that the growing awareness of our stakeholders, including consumers and investors, toward the global environment will
have an impact on the continuity of the Companyʼs business activities in the future, and we believe that promoting global environmental
initiatives as a company will enhance our corporate value. We have been engaged in activities to reduce our environmental impact
to date, and we will further strengthen our efforts to reduce our environmental impact throughout the product life cycle, including
less dependence on plastics, with the aim of transitioning to a recycling-oriented society. Regarding reduction of greenhouse gas
emissions, we hope to realize virtually zero greenhouse gas emissions by 2050.

Value Creation Story

The Mandom Groupʼs Environmental Policies▲

For detailed items in the Mandom Groupʼs
Environmental Policies, please see our
website.

▲The Mandom Group, based on its corporate philosophy,
recognizes that environmental issues are a common issue for all humankind,and strives to understand the environmental impact of the entire value chain through its
business activities. We will strive to realize a sustainable society by creating value throughour core business, while cooperating with society to fulfil its wishes.

The Fukusaki Factory has separately
established the “Fukusaki Factory
Environmental Policy.”

Targets

1 By 2027, we aim to turn 90% of Mandom products sold inJapan into eco-friendly products.
2 By 2050, we aim to turn 100% of products sold by the

Mandom Group into eco-friendly products.

Progress

Materiality

Formulation of Targets and Associated Progress

53.5 %(as of March 31, 2023)* Target 1 : Progress against products sold in Japan
Middle-Range Planning

We place eco-friendliness as one of our product values and promote efforts to create value that empathizes with society inaccordance with the Mandom Group Eco-Friendliness Product Standards. As part of our effort, we have adopted our own ecofriendly product standards alongside medium- to long-term targets. We will promote efforts to make eco-friendly products in aid ofachieving sustainability across society while checking progress toward our targets. These standards will be updated on an ongoingbasis, with reference to the latest information on technology and developments in Japan and overseas while taking into account views,
expectations and wishes of all our diverse stakeholders.

Eco-Friendliness of Products

Procurement of
raw materials

Environmental issues

Biodiversity conservation andforest conservation

Climate change
Carbon neutrality/
CO2 emissions reduction
Product use
Water use reduction

Other

Waste reduction

Plastic waste reduction
Recycling Circular economy

Environmental-friendliness standards

Product that uses recycled paper with 80%+ content of waste paper pulp as material for its outer andinner box package inserts and other paper-based items
Product that uses FSC® certified paper as material for its outer and inner boxes, package inserts, andother paper-based items
Product that uses raw and other materials that have satisfied other international environmental
certification systems or criteria
Product that uses 25%+ plant-derived biomass content for its container and packaging materials
Product that uses 10%+ plant-derived biomass content for its laminate packaging
Product that uses 25%+ recycled materials for its container and packaging materials
Product that uses 50%+ recycled materials for its laminate packaging
Product that uses 20%+ less in power for dryer and gas for hot water supply when product is used,compared against benchmark
Product that uses 20%+ less water when product is used, compared against benchmark
Product that eliminates use of main container and packaging materials or reduces weight ordimension to achieve 10%+ less use of such packaging, compared against benchmark
Product that eliminates use of individually packaged units or reduces weight by 10%+ of suchpackaging, compared against benchmark
Refill product that reduces container weight by 50%+, compared to standard container weight
Product that has switched from petroleum-based plastic to alternative materials (e.g. paper, glass)
Product that uses mono materials that make separation for disposal easier(Notes) 1. Product that satisfies one or more of the criteria above shall be considered an eco-friendly product.
2. The benchmark will be a product manufactured in 2016 when Mandom revised the Environmental Policy.

Company Information

Disposal

Performance for the Fiscal Year Ended March 31, 2022

Life cycle stage(FSC®N003667)

Mandom Report 2023

39

Materiality: “Actions for sustainable global environment”

Initiatives to Reduce Plastic Waste
Plastic packaging, which is widely used in various fields including cosmetics, has the advantages of being lightweight, durable,
and easy to process. On the other hand, it becomes so-called “marine plastic” if it is not disposed of and managed properly
and ends up in the sea, and there is growing concern about its impact on the ecosystem. In addition, plastics derived fromfossil resources generate a large volume of CO2 emissions in their manufacturing process and when incinerated, and are also
said to be a cause of global warming. In order to preserve a sustainable global environment and contribute to a carbon-freesociety, Mandom set a medium- to long-term target of reducing the volume of virgin plastics derived from fossil resources byat least 25% (compared to FY2016) by FY2027.
Having positioned the reduction of plastic waste as a top-priority challenge in the eco-friendliness of its products, the MandomGroup will strengthen its efforts through the 4Rs (reduce (reduce use and emissions), reuse, recycle, and renewable (replacewith renewable materials)) to work towards reducing the use of plastics derived from fossil resources and addressing social
challenges.

ReducePromote initiatives to reduce the amount of plastics used and the amount of plastics
discarded by reducing the thickness and weight of containers and packaging as well as
sales promotion materials, and by adopting materials other than plastics.

Reuse

Promote the development of refillable and replaceable products with the aim of reducing
waste of single-use containers by enabling repeated use of main containers.

RecyclePromote the development of products that are easy to sort during disposal as well as
containers made of mono material for easy reuse or recycle and recycled materials.

Reduction of usage and emissions

Promotion of reuse

Promotion of recycling

Renewable

Promotion of switching to renewablematerials

Promote the switching to sustainable materials such as plant-based materials (biomass
plastics, etc.) to reduce the use of petroleum-based materials.

Examples of Initiatives to Reduce Plastic Waste
Example of “Reduce”

Example of “Reuse”

We removed the individual packaging of “GATSBY Facial Wipes/Body

We developed refill products in order to

Wipes” sold exclusively through e-commerce.

reuse main containers and reduce waste.

Example of “Renewable”
We changed the outer box of our “GBHair Self Trimming Kit” and “GB Mens
Eyebrow Kit” and the cases housing
the accompanying scissors and otherelements from a plastic to a paper
construction.

40

Mandom Report 2023

Promoting a Recycling-Oriented Society
About Mandom

We have been maintaining a rate of 99% or higher for resource recovery fromindustrial waste to qualify for “zero waste emissions” since October 2003 at the
Fukusaki Factory. In FY2022, this was achieved at all Mandom business sites inJapan.
To encourage waste reduction and recycling at our head office building, we conduct
environmental awareness seminars relating to such topics as environmental
problems, and explain rules for proper waste classification and disposal to new
employees and individuals who have transferred to the head office building.
Waste emissions including general wastes were 3,314 tons in FY2022, a year-onyear decrease of 2.0%. We take this result seriously. Additionally, to further bolster
our initiatives geared towards a sustainable global environment as we prepare forthe transition to a recycling-oriented society, we joined the Japan Circular Economy
Partnership (J-CEP) in 2022. Using the knowledge that we gained in doing so, wewill endeavor to promote a circular economy going forward.

Value Creation Story

J-CEP is a new business co-creation partnership in
which companies and other entities that seek to realize asustainable society engage in the promotion of a circular
economy in cooperation with residents, governments,
universities, and other organizations.

Waste Resource Recovery Initiatives
Example of packaging paper initiative
Materiality

Nonwoven fabrics(raw materials) packed withpackaging paper upon delivery

Nonwoven fabrics withpackaging paper removed

After storing all the removed
packaging paper, it is collected by anintermediate processing contractor(Collection results for FY2022: 11.9 t)

Example of nitrile glove initiative
Middle-Range Planning

At the Fukusaki Factory, we conduct improvement
activities every year with an awareness of waste
resource recovery within the factory. As an exampleof these improvement activities, packaging paper
used as raw material for nonwoven fabric deliveries,
which used to be treated as waste, is now
collected by an intermediate processing contractor
and recycled as recycled paper. In addition, nitrile
gloves, which were collected by a contractor after
being sorted and collected post-use within thefactory, are recycled as raw materials for roadbed
materials and sand cushioning. We are committed
to further improvements and initiatives toward a
recycling-oriented society.

Nitrile gloves used at
production sites

Efficient Water Use
Water Input

Left axis: ■ Fukusaki Factory water supply ■ Fukusaki Factory industrial water ■ Office water supply
Right axis:
Per unit sales(1,000 m3)(m3/million yen)

150

120

1.676
90

60

30

0

2.5

2.219

81,2061.748
80,705

9,568
8,325

9,086
9,986

63,313

61,633

FY2018FY2019

1.963

1.828

2.0

1.5

71,002

72,34370,197

7,236
6,542

5,905
3,442

6,368
2,016

1.0

57,22462,996

61,8130.5

FY2020

FY2021Company Information

In FY2020, water resource usage decreased due
to a decrease in production volume, affectedby COVID-19 pandemic. In FY2022, production
volume recovered to exceed that of the previous
year. However, water resource usage was70,197m3, a year-on-year decrease of 3.0%.
At the Fukusaki Factory, we are regularly callingupon each department to save water, and reviewing
methods of cleaning production equipment, piping,and other facilities.
We will continue to emphasize efficient use
of limited water resources and the continuous
response to water resource issues as we aim to do
our part for a better environment.

After storing all sorted andcollected nitrile gloves, they
are collected by a contractor
involved in the initiative(Nitrile glove collection resultsfor FY2022: 2.2 t)

Performance for the Fiscal Year Ended March 31, 2022

Dedicated collection boxes are
set up onsite for sorting andcollecting after use

FY20220

Mandom Report 2023

41

Materiality: “Actions for sustainable global environment”

Promoting Measures toward a Carbon-Free Society
Initiatives related to Climate Change (disclosure based on TCFD*1 recommendations)Viewing climate change as one of its material issues(materiality) in sustainability, the Mandom Group has adopted“initiatives geared towards a carbon-free society” and “ecofriendly product manufacturing” as themes it will tackle.
We expressed our support for the Task Force on Climaterelated Financial Disclosures (TCFD) in June 2022, as a good
corporate citizen who lives socially with the dynamism of
the times, and in order to be more effective in evolving our
Dedication to Service (Oyakudachi) and creating corporate
value through our core business. Alongside using the TCFD
proposal framework to further strengthen our governanceon climate change, we perform scenario analysis using the
scenarios disclosed by various initiatives as a reference,extract the risks and opportunities arising from climate change,
and assess the financial impact of climate change. Additionally,
we will push forward with various actions based on the themes
we will tackle as well as proactively disclose information.

Governance

Strategy (Opportunity and Risk Analysis)

Viewing response to climate change as a material issue insustainability management, we have established it as oneof the themes we will tackle with respect to materiality.
Additionally, we have formed medium- to long-term targets*2that we discuss at meetings of the Sustainability Committee*3
chaired by the President Executive Officer and consisting of
our management as well as meetings of related subordinate
committees. The content of those discussions is then referredto the Management Council and the Board of Directors, where
the execution status of targets is ascertained and deliberated.

Depending on the status of warming prevention measures,a number of conceivable scenarios are present with respect
to the issue of climate change. Using a variety of data as areference, the Group examines transition risks and physicalrisks in its business management while referring to scenarios
for 1.5˚C and 4˚C*4, both of which are considered representative
average temperatures. We will analyze risks and opportunities
as well as their impact and aggressively tackle them as they
pertain to the effects on our Dedication to Service (Oyakudachi)
through the products that constitute our business domain.

External Site▲

*1 TCFD: Task force on Climate-related Financial Disclosures

External Site▲

*2 See p.24 “Sustainability Strategy and Materiality.”*3 See p.25 “Sustainability Promotion System.”▲▲*4 Examples of various scenarios used as a reference
AR6 Synthesis Report: Climate Change 2023:
IPCC > World Energy
World Energy Outlook (WEO) 2022: International Energy Agency (IEA)▲

Risks and opportunities with climate change at Mandom
Scenario Classification

Transition
risks

Risks and opportunities

Business impact/financial impact
Increase in operational costs due to introduction of carbon
tax

Mediumterm＋＋

Rise in energy costs for renewable power

Rise in energy costs due to growth in demand forrenewable power

Short
term

＋＋

Long
term

＋＋

Medium
term

＋＋

−

Long
term

＋＋

−

Medium
term

＋＋

−

Long
term

＋＋

−

Long
term

＋＋

−

Short
term

＋＋

−

Long
term

＋＋

−

Cost resulting from transition from packaging
materials and plastic products to “sustainableproducts”

Product development/market expansion andcost reductions related to physical risks andOpportunities
accompanying improvement in evaluation by
investors

42

Mandom Report 2023

Envisioned monetary impact¥320 million per year

Introduction of/rise in carbon tax

Risk of getting shut out of market if there is no progress intransition to “sustainable products” concerning packaging
materials and plastic products
1.5˚C
Risk of earnings decreasing and business costs increasing
scenario
due to changes in market (changes in consumer
Decrease in earnings and increase in business
preferences) and intensified competition in specificcosts resulting from changes in the market
markets
Reduction in costs, increase in earnings, improvement
Reduction in costs, increase in earnings,
in asset value, etc. resulting from development of new
improvement in asset value, etc. resulting fromdevelopment of new products and technologies products and technologies
Opportunities
Increase in earnings and enhancement of market Increase in earnings and enhancement of market
competitiveness resulting from incorporation of competitiveness resulting from incorporation of consumer
preferences
consumer preferences
Damage to business bases and suppliers caused by
Fragmentation of supply chain caused byabnormal weather, etc. and risk of decrease in earnings
damage to suppliers
resulting from fragmentation of supply chain
Physicalrisks
Risk of stagnation of business activities caused Risk of stagnation of business activities cause by water
shortages given projections of increased frequency of
by water shortages resulting from heat waves
heat waves and droughts
and droughts
4˚C
scenario
Rise in energy costs due to growth in demand forTransition
Rise in energy costs for renewable power
renewable power
risks

・Timing of manifestation
・Degree of impact

Envisioned timing Degree ofof manifestation impact

Product development/market expansion and cost
reductions related to physical risks and accompanying
improvement in evaluation by investors

Short term: 0–1 years; medium term: 3–5 years; long term: 10+ years++: Considerable impact; +: Certain degree of impact; -: Small or negligible impact*Maximum risk value when current
emissions continue until 2030

¥170 million–¥990 million per year
*Maximum risk value when current
power composition/electricity
consumption continues until 2030

¥710 million per year
*Maximum risk value when current
consumption continues until 2030

Risk Management

Left axis: ■ CO2 emissions (overseas) ■ CO2 emissions (Japan)(t-CO2)50,000

Right axis:

Per unit sales(t-CO2/million yen)

0.472

0.50

0.425
40,000

0.363

0.366

0.348

0.30

30,000

6,643

5,409

20,00010,000 21,876

23,048FY2013

4,475

4,859

3,645

18,687

19,533

20,664FY2019FY2020

FY2021

FY2022
Scope1 0.6%

Mandom believes that reducing GHG emissions
throughout the entire value chain, from raw material
procurement to product manufacturing, sales, use, anddisposal, is important in order to realize a “decarbonizedsociety.” Since FY2018, we have been calculating thegreenhouse gas emissions produced throughout the entire
value chain based on the Scope 3 Standard established by
the GHG Protocol.
Our calculations show that more than 90% of greenhousegas emissions fall under Scope 3 and we were able tosee that emissions were particularly large in Category 1(Purchased goods and services) and Category 11 (Use ofsold products).
In addition to improving the accuracy of future
calculations, we will strive to reduce our environmental
impact throughout the value chain, such as by developing
environmentally friendly products that can help reduce
emissions in the categories detailed above.

12. End-of-life treatment ofsold products 6.2%

Scope2 1.4%

CO2 emissions

179,498 t-CO

0.10

0

Performance for the Fiscal Year Ended March 31, 2022▲

15. Investments 0.6%

Calculation of GHG emissions for the entire value chain

0.20

Middle-Range Planning

0

0.40

Materiality

In FY2022, CO2 emissions from Scope 1 + 2 in Japanand overseas totaled 24,309 tons, a 14.8% reduction
compared to FY2013.
In FY2022, while an increase in overseas production
yielded increases in fuel and power consumed, due in partto the replacement of all power at our Japanese head
office building with renewable power, emissions decreased
by 0.3% year on year.

Value Creation Story▲

Trends in CO2 emissions (Scope 1 + 2 in Japanand overseas)*5 Trends over five years in environmental data for the MandomGroup – Supply chain emissions in Japan▲

CO2 emissions in business activities

About Mandom

from the use of power in Scope 2 and emissions from theprocurement of raw materials and use of products in Scope 3
are deemed considerable. From the dual perspective of risks
and opportunities in our business activities, we formulate
medium- to long-term targets and tackle with priority thechangeover of the power we consume to renewable energy
and the development of eco-friendly products.
Moreover, with respect to the calculation and ascertainment of
CO2 emissions in our value chain, going forward, we will pursue
initiatives aimed at calculating and ascertaining emissions
across the entire Group.

Under the Sustainability Committee, after examining of
impact on our business activities pertaining to climaterelated opportunities and risks at meetings of related
committees, we ascertain the situation in the entire Groupand examine response. Through deliberation and approval by
the Sustainability Committee and reports to the Management
Council and the Board of Directors, we manage progress ineach material issue (materiality) and target.
Additionally, for emission results, progress in targets is
managed based on yearly calculations of CO2 emissions
originating from energy and power used by each company inthe entire Group (Scope 1 + 2) and CO2 emissions generated
by the value chain in our Japan business (Scope 3).*5
In particular, concerning CO2 emissions, emissions originating

1. Purchased goods
and services
39.4%

2

11. Use of sold products
46.9%

9. Transportation anddelivery (downstream) 0.1%
7. Employee commuting 0.1%

Company Information

Scope of calculations: Japan
Period of calculations: April 2022–March 2023

2. Capital goods 1.2%
3. Fuel and energy related
activities 0.5%
4. Transportation anddelivery (upstream) 2.0%
5. Waste generated inoperations 0.9%
6. Business travel 0.1%▲

CSR Information
Overview of Domestic Environmental Load of the Mandom Group
Historical Environmental Data
Environmental Data by Production Site▲▲

Mandom Report 2023

43

Materiality: “Actions for sustainable global environment”

Indicators and Targets
In order to realize a sustainable society, we at Mandom are
moving to ascertain our GHG emissions (in Scopes 1, 2 and
3). Believing that addressing the matter with further speed
is of the essence, in addition to the long-term targets that
we formulated, we formulated medium-term targets aimed atachieving the long-term counterparts in December 2021. As
a Group-wide initiative, we formulated an initiative roadmap
for risks and opportunities based on scenario analysis that
we performed in 2022, and are currently implementing thatroadmap.

GHG emission reductions in the Group

Related targets: Eco-friendliness in products

Long-term targets

Long-term targets

・Aiming to achieve zero CO2 emissions Group-wide
in FY2050

・Turning 100% of products marketed by the
Mandom Group into eco-friendly products
by 2050

Medium-term targets

Medium-term targets

・Aiming to reduce CO2 emissions in Scope 1 + 2 in Japanand Overseas by 46% or more compared to FY2013 by
FY2030・Aiming to reduce CO2 emissions in Scope 1 + 2 in Japanand Overseas by 43% or more compared to FY2013 by
FY2027・Turning 90% of Mandom products marketedin Japan into eco-friendly products by 2027▲

For the progress status, please refer to “Medium- and Long-Term Targets and Progress on Material Issues (Materiality) in Sustainability” on page 24.

Initiative roadmap for risks and opportunities
Scenario Classification

Risks and opportunities

・Introduction of/rise in carbon tax
・Rise in energy costs for renewable power

Transition
risks
・Cost resulting from transition from packaging materials andplastic products to “sustainable products”
・Decrease in earnings and increase in business costs resulting
from changes in the market

1.5˚C
scenario・Reduction in costs, increase in earnings, improvement in asset
value, etc. resulting from development of new products andtechnologies
Opportunities
・Increase in earnings and enhancement of market
competitiveness resulting from incorporation of consumer
preferences

4˚C
scenario

Physicalrisks

・Fragmentation of supply chain caused by damage to suppliers・Risk of stagnation of business activities caused by water
shortages resulting from heat waves and droughts

FY2023

FY2027

FY203043% reduction of CO2 emissions in
Scope 1 + 2
46% reduction of CO2 emissions in
Scope 1 + 2

FY2050Net zero CO2emissions* Including Scope 3

Promotion of eco-friendly products(90% adoption of eco-friendliness for products marketed in Japan (up to 2027)➡ 100% (up to 2050))

Building of supply chain from perspective of BCP

Status of Initiatives
In 2022, we changed the power consumed at our head officeunder our Japan business over to renewable energy-certified
power, and also switched lighting at the head office andR&D buildings to LED. Consequently, due to the increase inproduction volume accompanying the recovery in the market,
which had been sluggish due to the impact of the COVID-19
pandemic, CO2 emissions in Scope 1 increased (an increaseof 442 t-CO2 compared to 2021). However, we managed tofacilitate reductions in CO2 emissions in Scope 2 (a decreaseof 524 t-CO2 compared to 2021), resulting in a total reduction
volume of 81 t-CO2 in Scope 1 and 2 (compared to 2021).
For initiatives geared towards eco-friendliness with products,
we are currently enhancing our eco-friendly product offerings,

which constitute 53.5% of the Mandom products marketedin Japan as of March 31, 2023 (45.8% as of March 31,2022). Additionally, as a means of responding to changes
in consumer value in the market due to the rise in outdoor
temperatures accompanying the issue of climate change, weare rolling out products that make use of our proprietary “Kaitech technology”*6. (Examples of such products: “GATSBYSpace Shower Wipes for Scalp/for Body,” “Mandom Happy
Deo Body Sheets Fresh & Smooth/Extra Cool,” and “Mandom
Happy Deo Face Mist Refresh Mint.”)*6 Kai-tech technology: Proprietary technology of Mandom that utilizes ourknowledge of Transient Receptor Potential (TRP) channels, which are skinsensation sensor, to thoroughly pursue greater comfort upon use

Visit our website below for more detailed information on disclosures in line with TCFD.
https://www.mandom.co.jp/en/csr/eco_globalwarming.html

44

Mandom Report 2023

Materiality:

Strengths and initiatives to help

“Sustainable procurement of raw materials”
About Mandom

At the Mandom Group, we will follow the Guiding Principles on Business and Human Rights and identify the negative impact on humanrights relating to the business conducted by the Company and will engage in action that prevents or reduces such negative impact. If
due diligence action on human rights uncovers any occurrence or furtherance of negative impact on human rights, we will strive to takeappropriate and effective remedial action. If our products or services are directly linked to a negative impact on human rights due toour trading partnerships, we recognize the possible need to take corrective action.
Recently, companies have been internationally required to engage in fair and free competition as well as proper trade and responsible
procurement. To achieve this, the Mandom Group will procure palm oil, paper, etc. ethically. Our action ranges from protection offorests and biodiversity to execution of corporate social responsibility by sustaining natural and labor environments and respecting
human rights throughout all value chains.

The Mandom Group recognizes that our business activities
must only exist on the basis of our respect for human rights.
We have adopted and will implement the following Human
Rights Policy so that we can promote action in respect of theValue Creation Story

Human Rights
human rights of all Mandom employees and their families,
trading partners and all others involved in the supply chain as
well as production operations upstream, consumers and allother stakeholders relating to the Mandom Group.

Mandom Groupʼs Human Rights Policy
1. Basic Stance on Human Rights

5. Reporting System
Any employee recognizing the possibility of violation of laws andrules that apply in the countries and regions of our operationor the infringement of human rights rules and other in-house
regulations can use the internal reporting system to report such
violations. We also have set up a reporting contact where external
stakeholders can report any violation of our Human Rights Policyor any risk of violation.

6. Education and Training
We will deliver continuous education to employees so that correctknowledge about respect for human rights can be fully diffused
and understood throughout the Mandom Group.

Performance for the Fiscal Year Ended March 31, 2022

We respect all the diverse values, individualities and privacy of
stakeholders relating to our corporate activities as we promote
diversity.
We will not discriminate under any circumstance against any
person on reasons of race, nationality, ethnicity, sex, age, origin,religion, education, physical characteristics, disability, healthcondition, sexual orientation, or gender identity.
We strive to create a workplace environment where employees
can work safely with reassurance, energy and in full mental andphysical health, where there is mutual trust and where common
sense prevails.
We will eliminate any discrimination, violence or harassment in theworkplace.

In our activities relating to negative impact on business and humanrights, we will engage experts from outside the Company and wewill provide opportunities and engage in dialog and discussion
with relevant stakeholders, with respect and sincerity.

Middle-Range Planning

2. Respect of Stakeholder Human Rights and Promotion ofDiversity

4. Dialogue and Discussion with Stakeholders
Materiality

We support and respect international norms relating to humanrights including the International Bill of Human Rights stipulatedby the United Nations on the basic human rights of all people, theILO Declaration on Fundamental Principles and Rights at Work,and the Guiding Principles on Business and Human Rights.
As a signatory to the United Nations Global Compact, theCompany supports the ten basic principles of the Compact.
The Mandom Group will comply with the laws of the nations andregions where we conduct our business activities.
If laws or rules in the nations or regions conflict with theinternational principles on human rights, we will comply with thelocal laws while pursing methods of respecting the internationallyaccepted basic human rights principles.

7. Information Disclosure
We will disclose the progress and results of our human rights
actions on the Company website and through other means.

3. Due Diligence in the Supply Chain

Company Information

We will follow the Guiding Principles on Business and Human
Rights and identify the negative impact on human rights relating
to the business conducted by the Mandom Group and will engage
in action that prevents or reduces such negative impact. If due
diligence action on human rights uncovers any occurrence orfurtherance of negative impact on human rights, we will strive totake appropriate and effective remedial action. If our products orservices are directly linked to a negative impact on human rights
due to our trading partnerships, we recognize the possible needto take corrective action.

Mandom Report 2023

45

Materiality: “Sustainable procurement of raw materials”

Building and Implementing a CSR Procurement System
Aiming to Build and Implement a CSR Procurement System
We have selected “the building and implementing a CSR
procurement system” and are engaged in drafting supplier CSR
guidelines and gaining the cooperation of trading partners toachieve this goal.
As times change in an age of rapid globalization, socialand environmental issues are becoming more varied andcomplex. We are currently engaged in thoughtful action basedon our Purchasing Policy, but we need to strengthen that
implementation, which includes making ongoing improvements
and revisions to prevent new social and environmental

issues from arising and thereby avoiding such risks. Anotherreason for better implementation is to be able to continue
responding to expectations and demands from a broad range ofstakeholders.
We strive to achieve fairness and transparency in alltransactions and will try to gain the cooperation of our trading
partners as we practice due diligence with respect to specifictopics in core areas such as human rights, labor practices andthe environment, alongside taking other measures to build asustainable and CSR procurement system.

Purchasing Policy
We at the Mandom Group have adopted the following Purchasing Policy andwill implement it in order to pursue fair and transparent business practices to the fullest extent.

1. We strive to achieve fairness, honesty and transparency inall transactions based on the principles of mutual equality,
respect for independence, and free competition, regardlessof nationality, business record or size of business. In choosing
our trading partners, we will take overall consideration including
their effort input into sustainable technology development
capacity and environmental protection, respect for human rights
and management attitudes towards sustainability and social
responsibility while balancing our judgements on our assessmentof the quality, technology, price, delivery and stability of supply thatthey can assure.

2. Our shared goals are OYAKUDACHI and safety and reassurance
to consumers. To this end, we will work with our trading partners
by engaging in mutual learning and development as well as close
communication so that we can build a business partnership ofharmony and mutual prosperity.

3. We will contribute to the sustainable development of the societythat surrounds us and the global world. Through collaboration with
our trading partners, we will reduce environmental impact in all
our activities involving design, production and distribution of our
products and services.

4. In undertaking our international business operations, we will
act as a local company to enhance OYAKUDACHI to our
local stakeholders. We will promote local production and local
purchasing.

5. We will fully understand and comply with Japanese and foreignlaws and rules in order to engage in honest and fair purchasing
activities.

About the Mandom Group Supplier CSR Guidelines (Version 2)
In order to address sustainable procurement, we issued
the Mandom Group Supplier CSR Guidelines (Version 2) inNovember 2017, asking suppliers for their understandingof these guidelines. Going forward, we will secure theunderstanding and cooperation of our trading partners̶
through steps such as requesting that these guidelines
be shared with secondary, tertiary, and overseas trading
partners̶and we will continue discussions, working step-bystep to make our supply chain more transparent.
▲

CSR Information
Mandom Groupʼs CSR KohDoh Practices > Fair Operating
Practices > Mandom Group Supplier CSR Guidelines (Version 2)

46

Mandom Report 2023

We also regularly conduct monitoring using the “CSR
Procurement Self-Assessment Tool Set” recommended by the
Global Compact Network Japan.
・Number of companies monitored in FY2021: 110*Our next monitoring survey is scheduled to be conducted in FY2023.

Protecting Biodiversity

Targets 1 Procure 100% of palm-derived materials accepted by the Fukusaki

Progress

Factory as certified oil (including book-and-claim response) by
2026

About Mandom

Formulation of Targets and Associated Progress

38.1 %(as of March 31, 2023)

and recycled paper for paper containers and packaging by 2027

Value Creation Story

89.0 %

2 Switch completely to the use of FSC®-certified paper, used paper,(as of March 31, 2023)

These efforts will not only protect both the environment and biodiversity; they will help to actively build and strengthen cooperative
relationships with related counterparties and experts, NGOs and NPOs, and people in various communities. At the same time, theefforts will lead to our building and implementing a CSR procurement system that also considers human rights and labor issues.

Procurement of Sustainable Palm Oil
Ratio of Raw Materials Including RSPO-Certified Palm
Oil to Palm-Derived Raw Materials

Materiality■ B&C ■ MB
（%）

40.0

30.0

Middle-Range Planning

In March 2018, Mandom joined the Roundtable on Sustainable
Palm Oil (RSPO) in order to procure sustainable palm oil that takes
into consideration the social issues and environmental impact of
the raw material production area, and in March 2021 acquired
RSPO supply chain certification at its Fukusaki Factory, the only
production base in Japan, and began procuring mass balance (MB)certified oil in May 2021.
In FY2022, in addition to procuring RSPO-certified palm oil using a
mass balance method for some raw materials that were to be used
at our Fukusaki Factory, we completed the purchase of certification
under the RSPO supply chain certification model “book-and-claim
method” for the entire volume of three raw materials, including theone most commonly used at that factory. We plan to gradually
increase our purchase of certifications for other materials in the
future. For book and claim credits, we also purchase credits that
support small-scale palm farmers who obtained RSPO certification.

20.0

10.0

0.0

2019

2020

2021

2022
Performance for the Fiscal Year Ended March 31, 2022

Procurement of Sustainable Paper Materials（FSC® N003667）

External Site

WWF Japan Official Website
About RSPO

▲

▲

FSC
FSC Japan Official Website

Examples of product using FSC®-certified paper

Company Information

Mandom engages in the procurement of sustainable papermaterials. We will contribute to preventing global warming throughthe effective use of forestry resources that is eco- andcommunity-friendly while preventing illegal deforestation and thedestruction of ecosystems.
We have set a target to use FSC®-certified paper or recycled
paper for all paper containers and packaging for our products by
2027 in accordance with “Eco-Friendliness of Products” on page
39. We are 89.0% of the way there as of March 31, 2023.
At the Fukusaki Factory, we are gradually introducing the use of
FSC®-certified paper and recycled paper for cardboard used totransport Mandom products.

Used in mount part

Used in paper packaging materials

Mandom Report 2023

47

Materiality:

Strengths and initiatives to help

“Maintaining/enhancing the corporate base”
As the corporate philosophy of the Mandom Group, we consider that “Social Responsibility & Sustainability” is the sustainability of
the Mandom Group. With that in mind, we treat sustainable management aimed at resolving social and environmental issues (ESG
management + SDGs management) as a fundamental concept.
We will continue to develop as a company that is recognized by all stakeholders for its existence value, with the dynamism to survive inany era, and we will further strengthen our corporate foundation based on our management philosophy with advancing our Dedication
to Service (Oyakudachi) deeply and widely as the going concern.
In addition, in order to provide cosmetics and quasi-drugs that consumers can use safely and with peace of mind, we are working toensure conformity with Mandom safety standards (safe quality) and to achieve conformity with consumer satisfaction (reliable quality).

Providing High Quality and Peace of Mind
Reconfiguring Our Quality Assurance System and Quality Assurance Activities

48

established the Quality Assurance Committee through which
we unify the company-wide direction on quality.
Additionally, the officers in charge, director in charge ofoverall manufacturing and sales, director in charge of quality
assurance, director in charge of safety management andtechnical supervisors stipulated in the Pharmaceutical andMedical Devices Act (Act on Securing Quality, Efficacy and
Safety of Products Including Pharmaceuticals and Medical
Devices) work closely with each other to supervise andpromote quality assurance activities.
For a diagram of the Mandom quality management system,
please see the next page.
CSR Information
Consumer Issues > Promotion of Quality Assurance System▲

Regarding quality assurance for cosmetics and quasidrugs, Mandom works to assure fully satisfactory quality as
demanded by consumers from purchase to end of use. We
engage in quality assurance activities to improve the quality ofour products and services in all processes, including planning,
design and development, production, sales, and customer
handling.
In January 2014, we established the ISO 9001-based “Mandom
quality management system” (a system for quality assurance
activities that incorporate customer opinions), which we havesince operated as we pursue continuous improvement ofquality.
In order to continuously improve the effectiveness andreliability of this Mandom quality management system, weAnalysis of active ingredients in quasi-drugs

Confirmation of process operations

Confirmation of process operations

Visual inspection of products

Product sampling inspection

Microbiological inspection

Mandom Report 2023

Mandom quality management system (a system for quality assurance activities that incorporate customer opinions)

Production

Discovering customersʼ wants

About Mandom

Product Planning

Regulatory complianceMarketing research

ISO 22716 (Cosmetics GMP) conformity
Production Policy

Drafting and reviewing plan●●

Ordering of raw materials

Marketability Preference Functional superiority
Eco-friendliness Regulatory compliance●●●

Deliberation over content of plan
Acceptance of raw materials

Board of Directorsʼ Meeting

Quality check

Quality check Acceptance inspection

Approval for sale of new productCompliance with material standards

Preparation of content

Deliberation over validity of and challenges with draft plan
Timing of implementation: Upon inputting of plan
Implementing divisions: Product planning, production and design

Quality check Content inspection
Compliance with content standards

Design of content and container●

Safety Stability Functionality
Regulatory compliance●●●

Filling, packaging

Usability

Quality check Product inspection

Design of production methods

Compliance with product standards, deliverability screening

Selection of raw material suppliers●

Materiality●

Value Creation Story

Marketing strategy meetings (monthly)
Chairperson: executive officer in charge of marketing

Regulatory compliance Purchasing Policy

Delivery●

Product Design●●

Assurance of traceability through lot control
Management of retention samples

Middle-Range Planning

Officers in charge
Director in charge of overall manufacturing and sales
Director in charge of quality assurance
Director in charge of safety management
Engineer in charge

Performance for the Fiscal Year Ended March 31, 2022

New product development, product improvement

Customers
Consumers, retailers, distributors, trade partners,
investors, etc.

Publicity and Sales Promotion
Creation of advertising ● Creation of sales promotion tools
Information dissemination through website, social media, etc.
● Plan management and implementation of promotions, etc.
●●●

Communication with Customers
Regulatory compliance, privacy policy

Regulatory compliance
Conformance with voluntary standards of industry

Advertising is to be carried out based on the following guidelines.
Appropriate Advertising Guidelines including Cosmetics from theJapan Cosmetic Industry Association
https://www.jcia.org/user/business/advertising (Japanese Only)

Company Information

Gathering customer opinions,feedback to customers

●

Sales

(Inquiries, requests, adivice on quality, etc.)
Daily reports

In-store communication
Supply of information to distributors, retailers● Gathering of market information, etc.
●●

Collation and analysis of customer opinions
Requests to related divisions to consider improvements,
quality management reviews●

Regulatory compliance Sales Policy●

Mandom Report 2023

49

Materiality: “Maintaining/enhancing the corporate base”

Customer Inquiry System

Customer Inquiries in FY2022

We set up a Customer Relations Division in 1994 as a generalcontact point for communicating with customers, including theirsuggestions, requests and other feedback. After reviewing
the feedback received, we add information to the Frequently
Asked Questions (FAQ) & Inquiries section of our website aspart of our efforts to ensure the supply of information.
Furthermore, feedback is compiled in a database, and throughmutually attended internal meetings, is passed along to top
management and relevant departments to be integrated into
future product development and improvement.

Other

Purchasing methods

2,999 inquiries／30.2%
Non-productsuggestions andrequests

214 inquiries／2.2%

2,454 inquiries／24.7%

Customer Inquiries

Product suggestions
and requests

9,918 inquiries

319 inquiries／3.2%
How to use, Product functions

1,526 inquiries／15.4%

Opinions, Advice

2,406 inquiries／24.3%(Notes) 1. Does not include the number of inquiries received via chatbot.
2. Opinions, Advice: Includes 870 inquiries related to voluntary recalls.

Quality Assurance Div.
Consumers

Employees

Distributors

Information
providers

OverseasGroupcompanies

Requests, inquiries,etc.
・ Telephone
・ Email・ Mail・ Chatbot
・human-operated live chat・ Information provided
・ Inquiry content
・ Other information
・ Proposal/request information

Retailers・ Information provided
・ Inquiry content

Investigating
dept.

Report results
Confirm
information
Information
provision

Domestic Group companies
Responses

Requestinvestigation

Individual
dept.

Reportinformation

Management
decisionManagement
team▲

Top Page
Customer Support

Examples of Utilizing Customer Feedback
At Mandom, we share feedback from customers with top management and relevant departments, and work to express true customer
satisfaction.
The following presents our latest efforts making use of customer feedback.
LÚCIDO Perfect Skin Gel/Cream

Based on feedback regarding the label on the inner lid such as “The explanation is hard tounderstand” and “The characters are hard to see,” we changed the explanation to an easyto-understand one and gave the label content improved visibility.

LÚCIDO-L Hair Treatment Oil Frizz Care

We stated a “gel form” label to the product in response to feedback that the product did notlook how customers imagined.

LÚCIDO-L Oil Treatment Series

A customer commented, “It is difficult to see the remaining amount.” In response to this, we
improved the label by widening the gap to make it easier to see the remaining amount.

LÚCIDO-L Hair Styling Stick

A customer reported to us that opening the cap caused the stick inside to break, so westated “Please pull the cap up without twisting it” on the back side of the product.

GATSBY Styling Grease

Since inquiries about how to separate trash to be recycled have increased, the following
environmentally-friendly labeling is written on the product: “Bottle is plastic; Cap isaluminum.”

GATSBY Acne Care Water

Since inquiries about the product appearing blacker have increased because we changed
ingredients, the following is written on the top of the product: “Changed to environmentallyfriendly powder *Color may appear lighter, but this does not affect quality.”

GATSBY Body Hair Remover Foam Type

Since inquiries about use in delicate zones have increased, the following is written on theback of the product: “Please do not use on delicate zones.”LÚCIDO Ageing Care Refreshing Lotion

We stated a “gel-type” label to the product in response to feedback that the product did notlook how customers imagined.

FY2022

FY2021

FY202050

Mandom Report 2023

Corporate Governance
About Mandom

Corporate Governance Policy
The Mandom Groupʼs mission is co-existence, mutual growth and mutual creation with global
society. Consequently, to realize our core philosophy, we are dedicated to generating stableprofits by pursuing efficiency, while ensuring soundness and transparency. As a result, welook to achieve sustainable, steady growth together with consumers, society and otherstakeholders.

Value Creation Story

Efforts to Strengthen Corporate Governance
1985

1995

2000

2005

2010

2015

2020

Management Supervision and Auditing
Inviting independent external officers
Inviting external Audit &Supervisory Board members 1985

Inviting external directors

1995

Establishment of nominating committee

2008

Materiality

Establishment of a committee chaired by an independent external officer
2021

Changed the chairperson of the committee to an external director

Improvement based on annual evaluation and analysis
Evaluation of the effectiveness of the Board of Directors
Evaluation of the effectiveness of the Audit & Supervisory Board

2016
2019

Separation of supervision and execution
Introduction of executive officer system

2001

Enhancement of effectiveness and transparency
Abolition of advisors, honorary advisors, and counselors

Middle-Range Planning

2018

Compensation for Officers
Establishment of a committee chaired by an independent external officer
Establishment of compensation committee

2005

2021

Changed the chairperson of the committee to an external director

Ensuring objectivity and transparency of compensation for officers
Terminated retirement benefits for directors and corporate auditors

2005

Review of officersʼ compensation program
Introduced restricted stock compensation plan

Performance for the Fiscal Year Ended March 31, 2022

2018

Reinforcement of the System
Complied with Japanʼs Corporate Governance Code, and announced Corporate Governance Guidelines

2015

Promotion of sustainable management
Establishment of Sustainability Committee

2015 CSR Promotion Committee 2020

Compliance system
Establishment of the Mandom Groupʼs Code of Conduct
Introduction of Helpline System

1999 (revised 2002, 2007, 2011, 2014, 2018)2002

2007: Expanded coverage to business partners

The Company adopts an audit & supervisory board system,
where its compliance management is founded on strict audits
carried out by Audit & Supervisory Board members to ensure
the legality of the Companyʼs activities. Based on such policy,
the Company will strengthen its monitoring and advisory
functions by appointing more than one (1) external director in

Company Information

Corporate Governance System
the Board of Directors.
By adopting a system of supervisory and executional officers
in charge of specific operations and clarifying responsibilities
and delegating authority, we have created a system for theproactive and expeditious execution of operations.

Mandom Report 2023

51

Materiality: “Maintaining/enhancing the corporate base”

Corporate Governance System (as of June 23, 2023)
Top Decision-Making Body, Venue for Communicating with Shareholders

General Meeting of Shareholders
Advice/Recommendations
Transparent and fair
selection process
3 Nominating

Appointment/Dismissal

Decision-making/Supervision

Femaleratio

1 Board of Directorsʼ Meeting● Representative Director● External Directors● External Experts

Statutory
auditing

ProposalReport● External Directors

Authority delegation/
Supervision

External
ratio

ReportAppointment
Dismissal

Legal audits

External
ratio● Internal Directors

Committee

Femaleratio

Disclosure/Explanation

2 Audit &Advance discussion,mutual checks, monitoring

Supervisory
Board

6 Executive Board● Audit & Supervisory● Chairman

Board Members● President Executive Officer● External Audit &● Supervisory Executive Officers

Business execution

Supervisory Board
Members● Audit & Supervisory Board Members

President Executive Officer
Supervisory Executive Officers

Transparent and faircompensation system
4 Compensation

Technology

Committee● Representative Director● External Directors

Marketing● External Experts

Femaleratio

External
ratio

Domestic
Sales

Production

Human Resources/
General Resources

Overseas
Business

Corporate Planning/
Financing

ProposalReportSocial responsibility
7 Sustainability

Committee

Code of Conduct
Promotion Committee
Quality AssuranceCommittee

Executive Officers

ESG Executive Committee

Direction/
Management

Independent audits
Audit of internal
controls forfinancial reporting

Independent
Auditor

Total Risk Management
Committee

Authority delegation/
Supervision

Reporting, discussion,and mutual checks of business execution
5 Management Council

Statutory
auditing

Statutory
auditing

Internal control,
business audits

Internal Audit
Div.

Occupational Health and
Safety Committee

System construction/
Overall management

Information
provisionCompany-wide organizations(Group companies in Japan and overseas)

1 Board of Directorsʼ Meeting

The Board of Directors is comprised of directors and makes decisions
regarding important business execution matters based on a corporate
philosophy and corporate planning in addition to supervising the executionof business by directors and executive officers.
Representative Director and Chairman serves as Chair.

2 Audit & Supervisory Board

The Audit & Supervisory Board is comprised of Audit & Supervisory Board
members, who attend important meetings, such as Board of Directors andManagement Council meetings. Audit & Supervisory Board members also
exchange information with the Accounting Audit and Internal Audit Division
and audit the business execution of directors, etc. through hearing of eachdivision and affiliated company.
An Audit & Supervisory Board member serves as Chair.

3 Nominating Committee

The Nominating Committee is comprised of the Representative Director
and external directors. It is established as an advisory body to the Boardof Directors in order to ensure fairness and transparency of the process
when determining candidates for directors and Audit & Supervisory Board
members. This committee advises the Board of Directors on proposals
regarding candidates for director, Audit & Supervisory Board member andsupervisory executive officer.
An external director serves as Chair.

4 Compensation Committee

The Compensation Committee is comprised of the Representative Director
and external directors. It is established as an advisory body to the Boardof Directors in order to ensure transparency and fairness of the process
when determining officersʼ compensations. This committee advises theBoard of Directors on policies regarding compensation for directors andsupervisory executive officers.
An external director serves as Chair.

52

Mandom Report 2023

5 Management Council

The Management Council is comprised of officers of executive officer level
and higher. It performs decision-making and reporting related to businessexecution of the management strategy, primarily for the applicable fiscal
year. The Mandom Group promptly responds to changing businessenvironments by delegating business execution to the Management
Council.
The Representative Director & President Executive Officer serves as Chair.

6 Executive Board

The Executive Board is comprised of officers of supervisory executive
officer level and higher. It performs decision-making and reporting related
to business execution of the management strategy, primarily for the
medium- to long-term. The Executive Board also deliberates on efforts torealize VISION2027 as developed by the Company.
The Representative Director & President Executive Officer serves as Chair.

7 Sustainability Committee

The Sustainability Committee is comprised primarily of directors, Audit &Supervisory Board members, and supervisory executive officers. Whiledeveloping our approach for promoting the sustainability of the MandomGroup and holding discussions with relevant departments at committee
meetings and other meetings, this committee is strengthening our efforts
to contribute to the sustainable development of society.
The President Executive Officer & Director serves as Chair.

Skill Matrix of Directors and Audit & Supervisory Board Members
About Mandom

corporate value by proactively promoting diverse humanresources, including foreign nationals and female employees,
to officers and managerial positions to provide opportunities
for them to leverage their talents.
By appointing external directors and external Audit &Supervisory Board members who have no special interest
relationships with the Company and are highly independentof the Company, the Company aims to reinforce its corporate
governance and augment the Groupʼs overall management
quality. The Company has formulated the Standards for the
Independence of Independent External Officers shown below.
The external directors and external Audit & Supervisory Board
members of the Company satisfy these standards and theTokyo Stock Exchangeʼs independence criteria. The Company
has notified the Tokyo Stock Exchange that all of these
executives are independent officers.

Value Creation Story

Company Information
Company Profile > Corporate Governance >External Officers “Standards for the Independence of Independent
External Officers”▲

Mandom acknowledges the importance of a composition of
personnel with various business experiences and of diversity
when it comes to the composition of the Board of Directors
and the Audit & Supervisory Board. From the standpoint ofpromoting womenʼs contribution, we have had one female
external director since June 2019. Mami Ito was appointed
in June 2023. At our listed subsidiary in Indonesia, which is
our biggest subsidiary in the overseas business, there are six
Japanese directors and two directors who are foreign nationals(both of which are female) of the total eight directors.
In addition, five foreign nationals (including one of whom is anequity-method affiliate) have already served as representative
directors of overseas subsidiaries.
Mandom aims to become a global company, and while wecurrently do not have any foreign national directors or Audit& Supervisory Board members, we acknowledge this as animportant issue in order to promote diversity management.
Going forward, our policy is to lead innovation and realize new“Dedication to Service (Oyakudachi)” for society and improved

Materiality

Skill Matrix (as of June 23, 2023)
Field of experience*
Name

Corporateplanning

Globalbusiness

Marketing

Sales

Technology/
Production

Finance/
Accounting

Human
Resources/
GeneralResources

Legal affairs
and riskmanagement

ESG

DX and IT

●

●

●

●

[Directors]●

Ken
Nishimura●

YasuakiKameda●Shinichiro
Koshiba●●●●

Hitoshi
Tanii●

Mami Ito

●

●

●

●

●

●

●

●
●

●

●

●

Performance for the Fiscal Year Ended March 31, 2022

Independent External

ShigekiSuzuki●●

Middle-Range Planning

Motonobu
Nishimura

●
●

●

●
●

[Audit & Supervisory Board Members]

Takehiko
Ikehata

Independent External

Masahiro
NishioMikiharu
Mori

●
●

●
Company Information

Takeshi
Hibi

●

●

CPA

●

Attorney* Areas of practical or supervising experience. “Global business” means that the person was seconded by Mandom Corporation to its subsidiaries or affiliated companies where
he/she held a management position.
For independent external officers, this refers to experience in other companies.

Mandom Report 2023

53

Materiality: “Maintaining/enhancing the corporate base”

Message from Newly Appointed
External Director[Comments from Chairman Nishimura]
I would like to receive advice from a broad perspective basedon Ms. Mami Itoʼs eventful and unique career and management
experience to date. In addition, I am also looking forward to heradvice on the promotion of womenʼs activities as part of ourdiversity and inclusion promotion efforts.
Not only this, but she is also active in the media, sharing
her own experiences with younger generations. Therefore,
I would like her to have opportunities to talk directly with
our employees, and I hope that she will provide valuable
insights from an outside perspective as well as a great deal ofinspiration.
Along with strengthening our corporate governance, I
strongly hope that she will help us improve the overall qualityof management of the Mandom Group, a human-oriented
company with the corporate slogan of “BE ANYTHING, BE
EVERYTHING.” for all consumers.
[Message from Director Ito]
Hello, everyone.
I am Mami Ito, and I was appointed as a director at the General
Meeting of Shareholders on June 23, 2023. I look forward toworking for the Mandam Group.
I visited Mandomʼs head office several times before assuming
this position, but it was at the reception after the management
policy announcement on April 3 that I had a good conversation
with Mandomʼs employees. My honest impression at that time
was, “Lively, laughing and having fun!” I was relieved to findthat Mandam was considerably friendlier than I had imagined.
The atmosphere was full of “Come on in! Youʼre more thanwelcome!” and I was able to fit in even with people I had nevermet before. I felt comfortable being so warmly accepted. I
believe that Mandom has experienced several turning points in
its long history, but Mandomʼs strength is that it has grown by
taking advantage of change as an ally without fearing changes.
I think that is the origin of the friendly corporate culture.
In 2000, I became the Representative Director of NIHON
DENTO KOUGYO Co., Ltd., a surface treatment company
founded by my father. Although I am the daughter ofthe founder, my father had already passed away and myappointment as president was unexpected, so only a handfulof employees greeted me when I went to the office. On thecontrary, I started out in an environment so unwelcoming that
there were even employees who ignored me. The company
itself was on the verge of bankruptcy, so there was no sparkle
in the eyes of employees who sensed that the company
was fighting for survival, and the atmosphere was verysomber. Most of the employees were male baby boomers
and they were in a state of resignation, wondering what the
inexperienced daughter of the founder could do and thinking
that the company was doomed. I am a competitive person,
and the more opposition I faced, the more motivated I became.
However, it took time and effort to actually revive the company.
To put it simply, the reason why the companyʼs business had
deteriorated so much was because after my fatherʼs passing,
they failed to see the times as they were, and took no actionin the face of the reality. There may have been plenty ofopportunities, but I believe that this state was the result of not
taking action, just getting by, hating change, and refusing to54

Mandom Report 2023

take on new challenges.
There is nothing more foolish than refusing to accept someone,or rejecting them, because they are outside of your industry,
because they are a different gender, or because they do
not share your values. It is perfectly natural for people to bedifferent. It is precisely because people are not the same thatthey are fresh and can make new discoveries. Some people
have obvious skills that anyone can see are amazing, whileothers have amazing talents that are hard to see from thesurface. Everyone has different strengths and weaknesses. It
is important to recognize and respect each other because ofour differences.
Japan is a wonderful country. However, I believe that there
are still a high percentage of people who are too concerned
about their surroundings and do not like to be different fromothers. Is there still a strong culture of “the nail that sticks out
gets hammered down”? Perhaps Japan still has a culture that
refuses to recognize uniqueness as a wonderful thing. Perhaps
the importance of having your own ideas and asserting themwithout being dragged down by others has not yet spreadthroughout Japanese society. This may be one of the reasons
why Japan has yet to become a country where women canplay an active role. Part of the problem is that many policies
have been male-driven for many years. However, it cannot
be said that there are no problems on the part of the women
who have allowed this to happen. I think it was necessary for
women to have the courage to take action for the sake of theirjuniors and for the future, even though they may be criticizedfor doing so. Among developed countries, Japan is a backward
country in terms of diversity. However, as you all know, withthe birthrate declining, the survival of not only companies but
also the nation itself will be in jeopardy unless diversity andinclusion are promoted and diverse human resources play anactive role. The phase of wait and see, where we think thateven if we donʼt do anything, someone surely will, is over.
“Now is the time to act!”
By moving forward, we will inevitably meet others with similar
mindsets. Like an orchestra playing different instruments inbeautiful harmony, we can combine our different personalities

company so impactful that everyone remembers to enjoy lifein their own way. I have only been in office for a short time,and I am sure there are many things I do not yet understand.
However, I would like to fulfill my role as an external director by
drawing on my 23 years of experience as a business manager
and the sensitivity I have developed growing up in a biculturalenvironment.

About Mandom

to deliver a powerful and impactful message to the world.
My first impression of Mandom is not only that it has a cheerfulcorporate culture, but also that it is a company that makes
it possible for anyone to do what they want. I hope that thispositive impression of “BE ANYTHING, BE EVERYTHING!” will
not only spread within the company, but will also be conveyed
to the consumers who use Mandomʼs products. Through
Mandomʼs stance and values, I want to make Mandom a

Method of Determining Compensation Amounts for Company Officers
linked to medium- to long-term performance. Restricted Stockcompensation aims to further promote shared value withshareholders and provide an incentive to strive to continually
increase the Companyʼs corporate value.
Compensation for external directors is composed solely of
fixed compensation.
Compensation for Audit & Supervisory Board members is set
at an appropriate level that reflects their important role andresponsibility for conducting rigorous legal audits that form thebasis of compliance management for the Group, thereby
maintaining and improving corporate value. As the role andresponsibility of Audit & Supervisory Board members is toconduct rigorous legal audits unrelated to the Companyʼsoperating performance, their compensation is composed onlyof the fixed compensation portion, which is not affected byoperating performance.
The amount of compensation for directors is determined by aresolution of the Board of Directors within the limit ofcompensation approved at the General Meeting of
Shareholders based on the deliberation and report of theCompensation Committee, which is chaired by an independent
external director and of which more than half of the members
are from outside the Company (external officers and external
experts).

Value Creation Story

Materiality
Middle-Range Planning

In addition to ensuring soundness and transparency, theCompanyʼs compensation for directors is aimed at theappropriate pursuit of efficiency, leading to the achievement ofmanagement plans and the enhancement of corporate value.
To this end, the Company sets an amount of fixedcompensation to ensure steady devotion to their duties. In
addition, a certain amount of performance-linked variable
compensation is provided to serve as an incentive to a higher
level of motivation. The Companyʼs policy is to strike a balance
between these two.
The Company sets fixed compensation amounts at appropriate
levels by referring to third-party data. These amounts differ
according to executive rank and Group management
responsibilities.
Variable compensation is linked to single-year and medium- tolong-term performance at an appropriate ratio. Annual payment
amounts are set to reflect performance with reference to theCompanyʼs performance in the preceding fiscal year andachievement of planned targets, and to the business plan forthe current fiscal year (amounts paid to individual internal
directors are based on evaluation of their individual
performance). Restricted Stock compensation (in principle, theamount will correspond to compensation for performance of
duties in the first year covered by Middle-Range Planning) is

Appropriate Balance of Fixed and Performance-Linked Compensation (at time of standard evaluation)
Percentage ofcompensation

Evaluation
indicator(monetary)

Short-term performance-linked
compensation (monetary)

Approximately 60%

Approximately 31%

Performance evaluation based onachievement of single-year targets

Performance evaluation based on achievementof Middle-Range Planning targets

Paid as monthly
fixed compensation

Paid as bonus after
evaluating target achievement

Paid Company shares within three fiscal years
corresponding to Middle-Range Planning

One yearThree years (FY2021–2023)−−

Company performance
・Achievement rate for consolidated net
sales forecast in pertinent fiscal year
・Achievement rate for consolidated
operating margin forecast in pertinent
fiscal year
・Rate of dividend growth
Individual performance
・Evaluation of contributions−

Directors
Audit & Supervisory Board members
Supervisory Executive Officers

50% above or below standard
Directors (excluding external directors)
Supervisory Executive Officers

Company performance・Middle-Range Planning
Achievement rate for consolidated net
sales in final year
・Middle-Range Planning
Achievement rate for consolidated
operating margin in final year
・Achievement rate for consolidated
ROIC

Company Information

Eligible
persons(shares)
Approximately 9%

Set compensation level based on
responsibility(Representative Director only evaluated based on
Company performance)

Range of fluctuationof evaluation

Medium- to long-term
performance-linked
compensation

Performance for the Fiscal Year Ended March 31, 2022

Payment
methodPerformance
evaluation period

Fixed compensation

33% above or below standard
Directors (excluding external directors)
Supervisory Executive Officers
Executive Officers

Mandom Report 2023

55

Materiality: “Maintaining/enhancing the corporate base”

Amount of Compensation, etc. for Directors and Audit & Supervisory Board Members for FY2022
Total amount ofcompensation(Millions of yen)

Directors(external directors)

Category

Total amount by type of compensation (Millions of yen)

Number of eligible
officers

Fixed compensation

Performance-linked
compensation, etc.

Non-monetarycompensation, etc.

288
（ 24）

203
（ 24）

49
（−）

36
（−）

7
（ 3）

Audit & Supervisory Board Members(external Audit & Supervisory Board Members)

50
（ 14）

50
（ 14）

−
（−）

−
（−）

4
（ 2）

Total
(external officers)

339
（ 38）

253
（ 38）

49
（−）

36
（−）

11
（ 5）

(Notes) 1. The amount of monetary compensation for directors was resolved at the 89th Ordinary General Meeting of Shareholders held on June 23, 2006 to be no more than¥450 million per year. As of the close of said General Meeting of Shareholders, the number of directors was eight (including one external director).
Separately from the above compensation framework, a resolution was passed at the 101st Ordinary General Meeting of Shareholders held on June 22, 2018 that theannual amount of compensation under the Restricted Stock compensation plan shall not exceed ¥150 million and the maximum number of shares shall not exceed
39,000 shares per year (external directors are not eligible for the grant). This compensation amount is, in principle, based on the assumption that an amount equivalent
to the compensation for the execution of duties over the period covered by the Middle-Range Planning will be paid in a lump sum in the first year of the period coveredby the Middle-Range Planning. The number of directors (excluding external directors) as of the close of said General Meeting of Shareholders was five.
2. The amount of monetary compensation for Audit & Supervisory Board members was resolved at the 88th Ordinary General Meeting of Shareholders held on June 24,2005 to be no more than ¥70 million per year. As of the close of said General Meeting of Shareholders, the number of Audit & Supervisory Board members was four(including two external Audit & Supervisory Board members).

Policy Related to Stockholdings
The Group maintains a basic policy of strategically holding
shares of listed companies that it determines will contributeto the sustainable improvement of corporate value in theGroup from a medium- to long-term perspective due to thesynergies emerging from strengthening relationships throughstockholding. Each year, the Board of Directors verifies
whether the profit and risks that correspond to holding
each individual company stock are aligned with capital costs
and maintains a policy to comprehensively judge the logicof holdings. The Board of Directors will consider reducing
holdings if it determines that a stockholding is not logical. Even
if stockholding is logical, the Board of Directors will consider
selling as needed after considering a myriad of factors,
including free cash flows, investment plans, etc. Our policy is
to keep the amount recorded on the balance sheet for policy

stockholdings at less than 10% of net assets at the end ofeach fiscal year. However, it was 10.1% at the end of March
2023. The Companyʼs policy is to reduce by at least 30% by
the end of March 2024 compared to the end of March 2021.
Stockholding of shares is a matter for approval by the Boardof Directors. The Group publishes the purpose for holding
major stockholdings in the securities report. The Group judges
exercising voting rights for stockholdings based on whether
a decision will contribute to the improvement of shareholder
value for the Group and the alignment with the purpose of thisinvestment. The Group strives for constructive dialogue withthe company from the position of a shareholder and maintains
a policy to appropriately and strictly exercise voting rights toimprove mutual healthy corporate value and synergies.

Number of Companies with Stock Held and Amount on Balance Sheet
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Category

Trend of listed shares
Left axis: ■ Amount recorded on balance sheet(Millions of yen)

20,000Listed

24

18

14

13

Not
listed

7

6

6

6

Total

31

24

20

19

Listed11,158

8,976

6,247

7,195

Amountrecorded on
Notbalance sheet listed(Million of yen)

26

24

24

24

4,000

Total

11,184

9,000

6,271

7,219

0

Number ofcompanies

56

Mandom Report 2023

Number of companies(Companies)

24

16,00012,000

Right axis:

25

20

18
14

11,158

13

15

7,195

10

8,976
8,000

6,247

5

2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

0Evaluation of the Effectiveness of the Board of Directors
and items that need to be strengthened in future corporate
governance are identified as issues and items for improvement.
The following is a summary of our evaluation and analysis of
the effectiveness of the Board of Directors for the fiscal year
ended March 31, 2023 based on the Corporate Governance
Code (hereinafter the “CG Code”) [Supplementary Principle
4-11 3 ] in our Corporate Governance Guidelines (hereinafter
the “CG Guidelines”).

About Mandom

Since 2016, the Company has conducted an annual survey
on the effectiveness of the Board of Directors targeting
those participating in the Board of Directors (excluding thechairman). Based on the results of the survey, we believe thatthe effectiveness of our Board of Directors has been ensured
if the quantitative evaluation shows that the Board of Directors
has been appropriately implemented. In addition, items thatwere pointed out or suggested in the qualitative evaluation

Evaluation and Analysis Procedures and Quantitative Results
Value Creation Story

1. From January up through February 2023, a questionnaire was distributed to participants in the Board of Directors to determine whether
the Companyʼs Board of Directors is effectively fulfilling its role in accordance with the policies and other requirements of Section 4(Responsibilities of the Board) of the CG Code as stated in the CG Guidelines, and responses were obtained from all eligible participants.
2. Based on these responses, the Representative Director & Chairman, who is the Chairperson of the Board of Directors, interviewed eachinternal director to confirm their content.
3. The responses to the above questionnaire and the results of the interviews were provided to the participants of the Nominating
Committee, and after ensuring a period and opportunity for consideration by the participants, the Nominating Committee made a reportto the Board of Directors after careful deliberation.
4. Upon receiving the Nominating Committeeʼs report, the Board of Directors confirmed the results of its own evaluation and analysis of theeffectiveness of the Board of Directors based on an understanding and respect for the content of the report.

Materiality

The results were as follows: 67.0% for the highest evaluation (appropriate) (66.1% in 2021), 29.1% for the next highest evaluation(appropriate with some issues) (30.3% in 2021), and 2.6% for the lowest evaluation (not appropriate with many issues) (1.7% in 2021).

Items for Which Effectiveness Has Been Ensured
1 Based on the Mandom Mission Framework, the Board of Directors

has developed, revised as needed, and disclosed the Corporate
Governance Policy and Corporate Governance Guidelines throughconstructive discussions in prior deliberations at the Executive
Board and Management Council meetings.

Standards for the Independence of Independent External Officers. In
addition to complying with these standards, the Board of Directors
also invited persons capable of monitoring from an objective
perspective of a shareholder who possess a wealth of businessexperience and an understanding and knowledge of management.

the “Philosophy of Balance, Diversity, and Scope of the Board of
Directors” and the “Policies and Procedures Related to Appointment
of Directors” after receiving advice from independent external
directors and Audit & Supervisory Board members and conducting
constructive discussions, and has maintained the structure of theBoard of Directors in accordance with these policies.

Middle-Range Planning

2 The Board of Directors formulated and disclosed appropriate

3 The Board of Directors appropriately established and disclosed

Issues and Improvement Items
1 While the Nominating Committee and Compensation Committee,

2 It is believed that further reinforcing supervising functions forbusiness execution by the management team would produce
stronger linkage to actions to follow through differential analysis andreflections of progress in management plans.

Performance for the Fiscal Year Ended March 31, 2022

which are chaired by external directors , are being properly
operated, it is believed that clarifying policies and procedures would
result in increased transparency as well as deeper discussion withrespect to personnel affairs for and the development of officers andthe management team.

Examples of Specific Comments
Items for Which Effectiveness Has Been Ensured

Issues and Improvement Items
Regarding our long-term vision, it is believed that gaps havearisen with VISION2027 in aspects such as changes in the
management environment and the suitability of the companyʼsbusiness model in the COVID-19 and the post-pandemic world.
It is likely necessary to make revisions under the leadership ofthe Board of Directors.
[Supplementary Principle 4-1 2 ]● Perhaps personnel affairs for principal members of the
managerial team need to be handled with greater room to spare.
[Supplementary Principle 4-3 1 ]● The careers of external directors are the same with all of them
being management executives.
[Principle 4-7. Roles and Responsibilities of Independent
Directors]●

Mandom Report 2023

Company Information

The Nominating Committee, which is chaired by an external
director, is being properly operated, its reports are being
respected, and sufficient governance is being ensured.
[Supplementary Principle 4-3 4 ]● Exchanges of information with executive officers are being
conducted by external directors. There is a sense of this being
effective in demonstrating monitoring functions.
[Principle 4-6. Business Execution and Supervision of theManagement]● Effective in gathering information and ascertaining the current
situation, such as through informal discussions with executive
officers, quality meetings, and factory cost meetings. Regularmeetings to exchange information with Audit & Supervisory Board
members are highly meaningful.
[Supplementary Principle 4-13 3 ]●57

Introduction of Officers (As of June 23, 2023)
Apr. 1977
Apr. 1983
Jun. 1984
Jun. 1987
Jun. 1990
Jun. 1995
May 2000
Jun. 2004
Apr. 2008
Apr. 2019
Apr. 2021

Joined the Company
General Manager, the East Japan Sales Div.
Director (current position)
Managing Director
Representative Director (current position), Senior Vice President
President Director
Audit & Supervisory Board Member, PT Mandom Indonesia Tbk
President Executive Officer of the Company
In charge of the Internal Control Promotion Div. (until June 2015)
In charge of the Internal Audit Div.
Chairman (current position)

Number and rate of attendance at
the Board of Directors meetings

In charge of the Marketing Units, the Internal Audit Div. and the Corporate
Transformation Div.

Number and rate of attendance at
the Board of Directors meetings

2023 (Year ended March 31):
13/13 (100%)
Chairperson of Board of
Directors

Representative Director & Chairman

Motonobu Nishimura(Date of birth: January 9, 1951)

Apr. 2008
Jan. 2011
Apr. 2013
Jul. 2015
May 2017
Jul. 2017
Apr. 2018
Jun. 2019
Apr. 2021

Representative Director & President Executive Officer

Ken Nishimura(Date of birth: May 12, 1982)

Joined the Company
Assistant Manager, Mandom Corporation (Singapore) Pte. Ltd.
The Human Resources Div. of the Company
The Human Resources Div., stationed in Europe; IESE Business School (Spain)
Graduated from IESE Business School (MBA)
Executive Officer; General Manager, the Corporate Strategy Div. of the Company
Managing Executive Officer; In charge of the Marketing Units
Director (current position)
Representative Director (current position), President Executive Officer (current
position)
May 2021 Audit & Supervisory Board Member, PT Mandom Indonesia Tbk (current position)
Apr. 2022 In charge of the Internal Audit Div. of the Company (current position)
Apr. 2023 In charge of the Marketing Units (current position)
In charge of the Corporate Transformation Div.; General Manager, the Corporate
Transformation Div. (current position)

In charge of the Corporate Planning & the Financial Units and the Human Resources &the General Resources Units, the Legal Affairs Office, and the Executive Secretary Div.
Apr.
Apr.
Apr.
Apr.

1984
2008
2009
2012

Apr. 2014
Apr. 2015
Apr. 2017

Director & Senior Vice President Executive Officer

Yasuaki Kameda(Date of birth: November 1, 1961)

Jun. 2017
Apr. 2018
Apr. 2021

Joined the Company
General Manager, the Product Development Dept. Sec. 1
Executive Officer
In charge of the Chainstore Sales Div. 1, the Chainstore Sales Div. 2 and theDistribution Channel Development Div.; General Manager, the Chainstore Sales Div. 2
In charge of the Corporate Planning Div. and the Corporate Communications &Investor Relations Div.; General Manager, the Corporate Planning Div.
Managing Executive Officer; In charge of the Corporate Planning Units
In charge of the Corporate Planning & the Financial Units and the Human Resources& the General Resources Units (current position)
Director (current position)
Senior Managing Executive Officer
Senior Vice President Executive Officer (current position); Supervising Domestic BusinessIn charge of the International Business Operation Units and the INTERNATIONAL
BUSINESS STRATEGY DIV .

Director & Senior Managing Executive Officer

Shinichiro Koshiba(Date of birth: December 24, 1963)

Apr. 1987 Joined the Company
Jul. 1993 Senior Managing Director, Sunwa Marketing Co., Ltd.
May 1997 General Manager, Zhongshan City Rida Fine Chemical Co., Ltd. (now Zhongshan
City Rida Cosmetics Co., Ltd.)
Apr. 2002 General Manager, the Sales Planning Div. of the Company
Jun. 2008 Executive Officer
Apr. 2013 Managing Executive Officer; In charge of the Marketing Units
Jun. 2016 Director (current position)
Apr. 2018 Senior Managing Executive Officer (current position); In charge of the International
Business Operation Units (current position)
Audit & Supervisory Board Member, Chairman, PT Mandom Indonesia Tbk (current
position)
Apr. 2021 Supervising Overseas Business of the Company

2023 (Year ended March 31):
13/13 (100%)
Chairperson of Management
Council and Executive Board
Chairperson of Sustainability
Committee

Number and rate of attendance at
the Board of Directors meetings

2023 (Year ended March 31):
13/13 (100%)

Number and rate of attendance at
the Board of Directors meetings

2023 (Year ended March 31):
13/13 (100%)

Executive Officers

58

Managing
Executive
Officer

Fumihiro
Okada

Supervising Technology Units
In charge of the Regulatory Strategy & Affairs
Div., the Technology Strategy Div., and the
Quality Assurance Div.

Executive
Officer

GosukeOmori

In charge of the Brand Marketing Div. 1, theBrand Marketing Div. 2, the Sales Marketing
Div., and the Marketing Strategy Div.; General
Manager, the Brand Marketing Div. 1

Managing
Executive
Officer

Koichi
WatanabeSupervising Production Units
In charge of the Purchasing Div.

Executive
Officer

IichiroKagawaIn charge of the International Marketing Div.,the EC Marketing Div., and the Public
Relations Div.; General Manager, theInternational Marketing Div.

Managing
Executive
Officer

Kenji
Uchiyama

Supervising Domestic Sales
In charge of the East Japan Sales Div., theWest Japan Sales Div., and the Chainstore
Sales Div.

Executive
Officer

Teiji
Izawa

In charge of the Hair Care Institute, theAdvanced Technology Institute, and the Skin
Care Institute; General Manager, the Hair Care
Institute

Mandom Report 2023

Apr. 1975 Joined Toyota Motor Co., Ltd. (now Toyota Motor Corporation)
Jan. 1999 Project General Manager, Material Engineering Div. No. 2 (High Polymer Materials)
Jan. 2001 Project General Manager, Material Engineering Div. No. 3 (Advanced Materials
Technology Research)
Jan. 2003 Project General Manager, Material Engineering Div. No. 1 (Metal/Inorganic Materials)
Jun. 2007 Managing Officer (Material Technology Field, Intellectual Property Div., Environmental
Affairs Div. and Future Project Div.)
Apr. 2013 Advisor, Primearth EV Energy Co., Ltd.
Jun. 2013 Representative Director and Vice President
Jun. 2014 Representative Director and President
Jun. 2020 External Director of the Company (current position)

Number and rate of attendance at
the Board of Directors meetings

Apr. 1996 Joined NIPPON TELEGRAPH AND TELEPHONE CORPORATION
Sep. 1997 Established Digital Network Service Limited Partnership Company, Representative
PartnerJan. 2000 Established Infocast, Inc., Representative Director
Sep. 2000 Established Index Digital Co., Ltd., Representative Director and President
Jun. 2005 Established Synergy Marketing, Inc., Representative Director
Sep. 2016 External Director, MarketEnterprise Co., Ltd. (current position)
Feb. 2017 Representative Director, Payforward Inc. (current position)
Mar. 2017 External Director, adish Co., Ltd.
Jan. 2019 External Director, Space Engine Co., Ltd. (current position)
Jul. 2019 Chairperson of the Board, Synergy Marketing, Inc. (current position)
Aug. 2019 External Director, any Carry Co., Ltd. (current position)
Dec. 2019 External Director, ONDECK Co., Ltd. (current position)
Jan. 2020 Established Happy PR Inc., Representative Director (current position)
Jun. 2020 External Director of the Company (current position)

Number and rate of attendance at
the Board of Directors meetings

Mar. 2000 Representative Director, NIHON DENTO KOUGYO Co., Ltd. (current position)
Apr. 2012 Representative Director and President, Japan Accessories Co., Ltd. (current
position)Jul. 2012 Representative Director and President, JULICO Co., Ltd. (current position)
Jun. 2020 External Director, KIMOTO Co., Ltd. (current position)
Mar. 2023 Outside Director, RYOBI LIMITED (current position)
Jun. 2023 External Director of the Company (current position)

Number and rate of attendance at
the Board of Directors meetings

About Mandom

2023 (Year ended March 31):
13/13 (100%)External Director

Shigeki Suzuki(Date of birth: January 2, 1953)

Hitoshi Tanii(Date of birth: June 2, 1972)

Value Creation Story

External Director

2023 (Year ended March 31):
13/13 (100%)
Chairperson of Nominating
Committee
Chairperson of Compensation
Committee

Materiality*New appointment

Middle-Range Planning

External Director

Mami Ito(Date of birth: November 24, 1967)

Audit & Supervisory Board Member

External Audit & Supervisory Board Member

External Audit & Supervisory Board Member

Takehiko Ikehata

Takeshi Hibi

Masahiro Nishio

Mikiharu Mori

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

2023 (Year ended March 31): 13/13 (100%)
2023 (Year ended March 31): 16/16 (100%)

Executive
Officer
Executive
Officer
Executive
Officer

Tsunehisa
HirotaTeruhiko
Komatsu
Hidenori
YamadaMasahiro
Ueda

2023 (Year ended March 31): 16/16 (100%)
Chairperson of Audit & Supervisory Board

2023 (Year ended March 31): 13/13 (100%)
2023 (Year ended March 31): 16/16 (100%)

In charge of the Fukusaki Factory and theProduction Engineering Div.; General Manager,
the Fukusaki Factory

Executive
Officer

In charge of the Sales Strategy Div. and theDistribution Channel Development Div.; General
Manager, the Sales Strategy Div.

Executive
Officer

In charge of the International Business Div.;
General Manager, the International Business Div.

Executive
Officer

Representative Director and President Executive
Officer, PT Mandom Indonesia Tbk

Executive
Officer

Yasumasa
YoshidaTetsuya
Takahashi
TetsuakiMatsudaMasanori
Sawada2023 (Year ended March 31): 13/13 (100%)
2023 (Year ended March 31): 16/16 (100%)

Representative Director and Vice President
Executive Officer, PT Mandom Indonesia Tbk

Company Information

Executive
Officer

2023 (Year ended March 31): 13/13 (100%)

Performance for the Fiscal Year Ended March 31, 2022

Audit & Supervisory Board Member

In charge of the Human Resources & General
Administration Div.; General Manager, the
Human Resources & General Administration Div.
In charge of the Corporate Planning Div. and the
IT Innovation Promotion Div.; General Manager,
the Corporate Planning Div.
In charge of the Finance Div. and the Investor
Relations Div.; General Manager, the FinanceDiv.

Mandom Report 2023

59

Compliance
Rather than relying on external standards and adopting passive compliance stance that centers on just adhering toregulations required by laws, the Mandom Group sets voluntary standards that exceed legal requirements, taking
an independent and proactive stance for the purpose of “usefulness to consumers,” toward protecting consumer
safety and benefits.
The Mandom Group has established the “Mandom Group Code of Conduct” (revised five times since theestablishment in 1999) as a compliance program that officers and employees should always keep in mind in orderto realize the corporate philosophy.
In order to ensure thorough compliance with the Code of Conduct, the Company has established the Codeof Conduct Promotion Committee, which focuses on awareness-raising and education on compliance for all
departments.
In addition, in December 2002, we introduced (expanded the target up to business partners in 2007) a helpline
system, which is an internal reporting system for compliance violations, aimed at early detection, early correction,and prevention of risks related to compliance violations. With this system, legitimate information providers arecompletely protected, and retaliatory acts against information providers are absolutely prohibited.
▲

Mandom Groupʼs Code of Conduct

Excerpt from the Mandom Group Code of Conduct (FY2018 revised version)

Mandom Group Compliance
As a member of society, we fully understand domestic and international laws, customs, and all other social
norms and their respective mentality, comply with them with a spirit of legal compliance, and always act
ethically with a high degree of social decency.
The compliance of the Mandom Group is based on “usefulness” (founding spirit) and “honesty toward
society” (corporate philosophy).
In other words, rather than relying on external standards and adopting passive compliance stance that
centers on just adhering to regulations required by laws, the Mandom Group sets voluntary standards thatexceed legal requirements, taking an independent and proactive stance for the purpose of “usefulness toconsumers,” toward protecting consumer safety and benefits.
In addition, for the sake of honesty towards society, we will strictly adhere to compliance management andnever use fraudulent methods as a means of achieving results.
Therefore, at the Mandom Group,(1) End does not justify the means.
We do not accept the idea that any means can be adopted to achieve business results.
(2) Morals are superior to results. (Results are inferior to morals)
No matter how good the Companyʼs business performance is, the Company does notrecognize results obtained through immoral (unlawful) means.

60

Mandom Report 2023

Helpline System
In December 2002, we introduced the “Helpline System,”
which is an internal reporting system for compliance violations,
aimed at early detection, prevention and recurrence preventionof risks related to compliance violation. This is a system foraccepting reports and consultations when one sees an act
that violates various laws and the code of conduct in theworkplace, or when there is a risk of violation thereof. The
Code of Conduct Promotion Committee, including external
parties (attorneys), serves as a reception desk and theoperation of the whistle-blowing system ensures that whistleblowers are not treated unfavorably by the Company. Since
September 2007 we have been expanding the scope of the

About Mandom

Helpline System to include all domestic business partners of
the Mandom Group.
Our wish is that suppliers who have become aware of aviolation of compliance by a Group company, its officers or
employees in Japan, or an act that may cause a complianceviolation, contact the helpline reception desk in accordancewith the following guidelines. Upon receipt of the report, led by
the Code of Conduct Promotion Committee, the Company willpromptly investigate the facts and causes to correct, stop andprevent recurrence thereof and work to resolve them.

Value Creation Story▲

Group Company Information
Corporate Governance > Helpline System---

Middle-Range Planning

Special reception desk forbusiness partners

Materiality

1. Business partners that are subject to the helpline system are suppliers, customers, and other business partners of the domestic
Group companies, including the Company.
2. In order to conduct a fair investigation, we ask that you report your information under your real name, rather than anonymously.
3. The facts and the details (including personal information such as the name of the person reporting) are held only by the Companyʼs
investigating body (Code of Conduct Promotion Committee) and will not be used for any purpose other than investigation and response
based on the report.
4. The Group will not cause any disadvantage to the person reporting, and will not make any request to the business partner to which
the person reporting belongs to that would cause him or her a disadvantage due to the fact that the report was made. However, thisdoes not apply to fraudulent reporting that goes against the intent of the Helpline System (avoiding or minimizing the risk of noncompliance) such as slander or defamation.
5. You can make reports by e-mail or postal letter. Please refer to the report reference form attached at the end of the document, andmake the report following with the form as much as possible. Upon receipt of the report, the helpline will contact the person who
made the report for confirmation. Therefore, please be sure to clearly indicate the contact information and contact method.

5-12, Juniken-cho, Chuo-ku, Osaka 540-8530, Japan
Helpline Desk, Code of Conduct Promotion Committee, Mandom Corporation
Special email address: mandom-helpline@mandom.com

Performance for the Fiscal Year Ended March 31, 2022
Company Information

Mandom Report 2023

61

Middle-Range Planning
13th Middle-Range Planning “MP-13” and positioning of “VISION2027”
VISION2027
Our Vision 2027

“A cosmetics company possessing unique strengths in specialized areas (not an “all-rounder”).”
1 Authentic proposals

2 Global & ʻOnly Oneʼ
3 Exciting & Excellent

VISION Slogan

Use our ʻOnly Oneʼ strengths to provide Dedication to Service (Oyakudachi) to a billion people around the world.

VISION Policy

1 Leverage Asiaʼs economic growth to evolve into a truly global company
2 Display greater Dedication to Service (Oyakudachi) in the menʼs business and invest

aggressively to expand our womenʼs business.

3 Provide authentic products and services to develop a MANDOM WORLD inspired by theconcept of stock-oriented management (the idea of strengthening or “stocking up” various assets
including ties with our stakeholders by providing authentic and valuable products and services).

Image
OverseasJapan

Breakthrough inspired by
future-orientation

Overseas

Men

Business Domain
Women

Men

2027

Growth Strategy

2016

Japan

Profit Structure

Women

Human Asset Development

Background of MP-13 Formulation (External Environment, Internal Issues)
External environment●

Products▲▲

Threats/ Lengthening of ramifications of COVID-19
risks
Climate change/abnormal weather
2050 Carbon Neutrality Declaration
Changes in consumer lifestyles
Diversification of consumer values
Sudden changes in business environment due toexponential technological developments
Declining birthrate and aging society (Japan)

Issue awareness

●

●

●

●

●

●
●
●

●

●

Sluggish growth of GATSBY brandGrowth potential of womenʼs cosmetics
Product portfolio
Greater emphasis on items used for outings, which
are impacted by COVID-19
Shift in menʼs cosmetic portfolio
Acquire innovators for menʼs cosmetics●●

Region▲▲Opportunities Emergence of new wants in transition to the newnormalRise in environmental consideration and awareness,
primarily among young people
Expansion of ethical consumption
Growing expectations for the realization of well-being
Market expansion resulting from greater hygieneawareness
Elimination of information time lag due to globalization
Expansion of EC market
Expansion of GDP in Asia

●
●
●

●

●

●

●

●

●

●

Shift in shopping opportunities to EC
Intensified competition in the menʼs cosmetics market
Increase in new participants entering cosmetics
market (Japan)
Shrinking hair styling market (Japan)
Disappearance of inbound demand (Japan)
Declining earnings ratio in Indonesia●●

Internalstructure

▲

●

●
●

●
●

Identifying Materiality ➡ P.23

62

Mandom Report 2023●●

Declining earning capabilities (profit margin)
Distribution partnersʼ roles and terms andconditions of transactions
Low composition of EC sales in sales mix
Breaking away from self-sufficiency
Breaking away from successful past experiences
Initiatives for sustainability

About Mandom

VISION2027
FY2016FY2017FY2018FY2019FY2020Plowing

FY2021

FY2022

FY2023

Seeding

FY2024FY2025

FY2026FY2027

Blossoming andharvesting
Value Creation Story

MP-12 Infrastructure Development* Growth image

Pre-

MP-13

MP-13 Reformation and Challenges

●
●
●

●
●

●
●

●

●
●
●

●
●

Newly include ROIC as a profitability target
Sustainability strategy placed at the core of management structure
Strengthen EC channel
Strengthen open innovation initiatives with external partners
New Dedication to Service (Oyakudachi) in the realm of Health,Cleanliness, Beauty and Fun
Generate resources to create new value through utilization of DX
Propose products with an ethical perspective to attract customers

2. Complete recovery of Indonesia business in a speedy
manner and reform business model of overseas
operations

3. Shift to a company that creates new value throughdigitalization and open innovation

Company Information●

Strengthen EC channel (Japan/overseas)
Strengthen digital marketing (Japan/overseas)
Strengthen menʼs face care and body care categories (Japan/
overseas)
Strengthen local development for GATSBY (overseas)
Initiatives to improve profitability in Indonesia

1. Evolve and take on challenges in category strategy
for the new normal; cross-company marketingtransformation to improve brand value

Performance for the Fiscal Year Ended March 31, 2022●

Restrengthen GATSBY brand (Japan/overseas)
Propose new line from GATSBY (Japan)
Continue to strengthen Bifesta brand (Japan/overseas)
Enter hygiene market with sale of MA-T Pure (Japan/overseas)
Expand to roll out our makeup brands such as Pixy and
SILKYGIRL into new countries (overseas)

Basic management policies
Middle-Range Planning●

Materiality

Period of transformation and challenges to achieve “VISION2027”

Response●

MP-14 Accelerated Growth

4. Increase corporate value focused on sustainable
management and evolve Dedication to Service(Oyakudachi)

Mandom Report 2023

63

Middle-Range Planning

Look Back at Previous Middle-Range Planning
MP-10

Positioning

MP-11

Summary

4/2017-3/2020“Only One” Company in Asia with
Global Management Expertise

Middle-Range Planning to
Accelerate Growth and Cultivate
New Business in Asia

Corporate Infrastructure
Development for Realizing“VISION2027”

Aim to establish competitive advantages
by strengthening business expansion in
major markets and increase sales volume
by cultivating new markets and businessfieldsFirst of three phases to achieve“VISION2027”
Aim to become a truly global company
through proactive investments tostrengthen marketing and internal controls

We will further promote the shift to Asia
for the Groupʼs management in order toincrease our competitiveness in the Asianmarket, which has high growth
expectations.

Announced our corporate philosophy of a
new “MISSION” focusing on the conceptof “Human-Orientation,” and“VISION2027,” the company figure that
Mandom will become in 2027 when it
marks the 100th anniversary of thefounding of the Company.

Shifted to Planning from backcast
perspective. Envisioned the ideal formand shape Mandom should take from along-term perspective and developed aplan which aimed higher, not simply
continuing the path of the past.
●

Stable growth in menʼs grooming
business, the Companyʼs corebusiness
Aim for stable growth as a corebusiness; maintain and expand themarket share in categories of the menʼsgrooming segment.

●

Bolster the development of womenʼs
cosmetics business
Aim to strengthen and cultivate the rollout
of products centered on skin careproducts, with the product lineups catered
for the markets in each country where theoperation of business is in place.

●Continue strengthening overseas
business operations with Asia as
growth engine
Establish Indonesia and China as
strategic markets and aim for proactive
business expansion to establish thegreater Asian market presence andimprove the growth of the Group. In
addition, construct distribution networkand expand businesses in Indian andIndochinese markets, which have afuture growth prospect.

Numerical Targets
Consolidated Net Sales
Menʼs Grooming
Business Average Annual
Growth Rate“GATSBY” Brand
Average Annual Growth
Rate
Womenʼs Cosmetics Business
Average Annual Growth Rate
Note: Womenʼs business in MP-12

Consolidated Overseas
Net Sales Average
Annual Growth Rate
Consolidated Operating
MarginNote: Operating income amount in MP-11

Consolidated Payout
Ratio

Results and Issues

Foreign Exchange Impact
Rupiah/JPY (period average)
Middle-Range Planning Initial Set
Rate and Actual Rate by Year64

Mandom Report 2023

Pre-MP-13

4/2014-3/2017

Focus on Dedication to Service(Oyakudachi) in Asia to accelerate growthin Group businesses

Key Points

MP-12

4/2011-3/2014(Targets)¥66,000 million
or more(Actual)●Achieve sustainable growth inmenʼs grooming business

Aim for sustainable growth as a corebusiness; maintain and expand themarket share in categories of the menʼs
cosmetics segment.
●●

1 Develop a category into a robust pillar
2 Increase brand value●

Speed up the development of
womenʼs cosmetics businessContinue strengthening overseas
business operations as growthengineAim to expand the scale of operation bystrengthening initiatives for Indonesianmarket as the major market andconstruct the foundation for developing
markets, such as building a distribution
network in China and Indochina.

(Targets)¥68,200 million¥83,000 million

3.2% or more

5.4%

3.6% or more

5.9%

19.3% or more

(Actual)Improvement of growth in overseas
business with a focus on Indonesia
1 Indonesia: Provide greater Dedication

to Service (Oyakudachi) for middleincome class

Aim to speed up development in Asiawith a product lineup customized toeach country by focusing on the skincare and base makeup categories.
●

Promotion of category strategies andthorough enhancement of brand value

2 Asian countries other than Indonesia:

Promote marketing measures uniqueto each country by understanding
consumer wants and achieve higher
profitability●

Building a group operation system
and improving productivity per unit
1 Increases in the decision-making

accuracy and speed by building theGroupʼs personnel affair system,
accounting system, and information
system, and building a structure toincrease productivity per unit
2 Build a structure that allows theprompt formulation andimplementation of strategy at
operating companies(Targets)(Actual)¥77,300 million¥90,000 million¥81,700 million

5.2% or more

2.6%

3.0% or more

-0.6%

11.8%

15.0% or more

15.9%

10.0% or more

11.1%

9.4% or more

11.3%

11.4% or more

4.8%

10.0% or more

6.8%

10% or more

10.0%

¥8,600 million¥7,600 million

10% or more

7.1%

40% or higher

40.0%

40% or higher

40.3%

40% or higher

63.5%

・The menʼs grooming business exceeded
target growth rates mainly for “GATSBY”
and achieved targets for consolidated
net sales.
・The womenʼs cosmetics business had
sluggish growth in Japan and did notreach targets.
・The overseas business performed well,and the annual growth rate was over
10%, exceeding the target.
・The consolidated operating margin was
10%, reaching the target.

MP-10
Set Rate¥0.0093

2011: 0.0091
2012: 0.0086
2013: 0.0093

・Although the womenʼs cosmetics
business reached the target growth rate
due to growth of “Bifesta,” consolidated
net sales did not reach the target due tosluggish growth in the menʼs grooming
business.
・The overseas business did not reachtargets due to the impact of the factory
accident in Indonesia.
・Consolidated operating income did notreach the target primarily due to net
sales being below the planned level.

MP-11
Set Rate¥0.0085

2014: 0.0089
2015: 0.0091
2016: 0.0083

・We were able to execute just about allof the infrastructure development
initiatives we should have executed.
・Net sales in menʼs grooming businessdecreased due to the impact of reduced
sales of summer seasonal goods due topoor weather in Japan in the fiscal year
ended March 31, 2020.
・Womenʼs cosmetics business continued
to reach the target growth rate due tostrong performance of “Bifesta” and “Pixy.”・In addition to net sales being below theplanned level, the injection of expenses
associated with infrastructuredevelopment also contributed to thetarget consolidated operating margin not
being reached.

MP-12
Set Rate¥0.0083

2017: 0.0084
2018: 0.0078
2019: 0.0077

Outline of “MP-13 (April 2021 through March 2024)”

Theme

Transformation and Challenges to Realize “VISION2027”
1. Evolve and take on challenges in category strategy for the new normal;
cross-company marketing transformation to improve brand value

Value Creation Story

Basicmanagement
policies

About Mandom

MP-13 4/2021-3/2024

1 Quickly construct cross-company structure that leads to accelerating growth in overseas and womenʼscategories
Improve value of global brands (GATSBY/Bifesta) across Asia
3 Improve quality and expand regions where Dedication to Service (Oyakudachi) is offered in the
COVID-19 and the post-pandemic world2

2. Complete recovery of Indonesia business in a speedy manner and reformbusiness model of overseas operations
1
2

Materiality

Quickly build a structure and ensure its operation to solve the issues in Indonesia businessAccelerate growth by strengthening alliances between overseas countries and marketing areas;
improve management efficiency

3. Shift to a company that creates new value through digitalization and open
innovation
1
2

Achieve success in DX (digital transformation) resulting in the realization of wellness
Create and expand new beauty and grooming culture that includes external knowledge

1
2

Middle-Range Planning

4. Increase corporate value focused on sustainable management and evolve
Dedication to Service (Oyakudachi)
Promote business expansion that contributes to solving social issues (ESG/SDGs)
Advance capabilities to create unique values and improve corporate branding

Basic management targets
Growth Potential¥81.5 billionMenʼsbusiness

CAGR by business

Womenʼsbusiness

CAGR

10.7%

Consolidated Operating
Margin

8.0% or higher

Consolidated ROIC

7.0% or higher investments)/invested capital

Overseasbusiness

6% or higher
16% or higher
17% or higher

Performance for the Fiscal Year Ended March 31, 2022

Profitability

Consolidated Net
Sales

ROIC = (NOPLAT*1 + gain/loss from equity-method*2*1 (Operating income + interest income + dividend income) (1 - effective tax rate)*2 Borrowings + corporate bonds + lease liability + net assets [uses the average values of beginning and ending balances of the fiscal year]

Promote eco-friendly products
Japan:

60% of domestic products are eco-friendly(in line with voluntary standards)

Indonesia: Reduce volume of plastic containers/packaging by
Reduce volume of plastic waste byCompany Information

Address Social Issues

10%

10%

(compared to FY2016)(compared to FY2016)

Mandom Report 2023

65

Middle-Range Planning

Look Back on the Fiscal Year Ended March 31, 2023
The fiscal year ended March 31, 2023 was the second year of the 13th
Middle-Range Planning (hereinafter “MP-13”). MP-13 was positioned as aperiod of transformation and challenges to achieve “VISION2027” for the
100th anniversary of the founding of the Company. The Company has
established four basic management policies and begun efforts for thistransformation and these challenges. Although the impacts of COVID-19
were receding in Japan and overseas, the prolonged situation in Ukraine
and the resulting increase in energy and raw material prices caused prices
to soar and demand to stagnate, and the speed of recovery varied by area
during the year.
As the Company recorded operating losses for two consecutive years
through the fiscal year ended March 31, 2022, one of our most importanttasks was to return to operating income. Due to a recovery of the
movement of people, net sales increased in Japan, Indonesia, and otheroverseas locations, up 16.9% from the previous year to 67,047 million yen.
While operating income was affected by raw material price hikes, wereturned to operating income on a consolidated basis mainly due to theincrease in gross income. As a result, ordinary income and net income
attributable to owners of parent also returned to profit.
Senior Vice President Executive Officer & Director
The basic management policies of MP-13 and major initiatives based on
Yasuaki Kameda
these for the fiscal year ended March 31, 2023 are as follows. For the fiscal
year ending March 31, 2024, following on from the previous year, the Company will reinforce Dedication to Service (Oyakudachi) for
consumers through our products. We will give top priority to value-added products that fulfill consumer wants as well as to high quality
and satisfaction with product effectiveness. As a result, we will manufacture products in accordance with our founding management
philosophy of “high-quality and best-value products” that consumers will be willing to pay more for. In addition, we will take allnecessary steps and do nothing short during this fiscal year to ensure a smooth start for MP-14 in April 2024.

1

Evolve and take on challenges in category strategy for the new normal;
cross-company marketing transformation to improve brand value
Specific initiatives and results
1

Reinforce Dedication to Service (Oyakudachi) for consumers through our products
In an era of diversifying values and style preferences, it has become difficult to grasp consumer wants.
Against this backdrop, we renewed our focus on “Consumer-led Lifestyle Value Creation.” Imagining how
customers would enjoy our products, we made every effort to propose products with concepts and stories that
arouse demand and make customers want to see and use them.
We released “LÚCIDO Perfect Skin Cream EX” for menʼs skin care, “LÚCIDO-L High Damage Repair” series for
womenʼs hair care, and other products which achieve a balance between a new Dedication to Service (Oyakudachi)on the one hand and product effectiveness and cost-performance on the other.

2

Shift product portfolio in Japan market
In recent years, summer season products, which make up an increasing share of sales in Japan, face inherent
challenges such as impact of weather conditions and intensifying market competition.
On the other hand, demand for skin care and hair care products has expanded following the onset of thepandemic.
In the fiscal year ended March 31, 2023, the Company aggressively introduced and enhanced new products
under the GATSBY and LÚCIDO skin care brands for men and the LÚCIDO-L hair treatment brand for women.
In addition, we launched the “GATSBY Meta Rubber” series in the menʼs hair styling category, where the market
is recovering in step with the increased movement of people.

66

Mandom Report 2023

About Mandom

2Complete recovery of Indonesia business in a speedy manner andreform business model of overseas operations
Specific initiatives and results
1Strengthen distribution by collaborating with the local exclusive distributor in thelead-up to the post-COVID-19 period
Value Creation Story

As the impacts of COVID-19 began to recede, we were finally able to collaborate with our exclusive distributor inIndonesia. With the market itself shifting to recovery, we were able to approach distributors in traditional markets,
which is a strength of the exclusive distributor. In the fiscal year ended March 31, 2023, we strengthened sales
promotion focusing on traditional markets and, in turn, expanded sales.
2Strengthen marketing of ACG Internationalʼs “SILKYGIRL” looking ahead to after
the pandemic

3

Materiality

The “SILKYGIRL” makeup products, which anticipated and adapted to changes in consumer wants and mindsets inconjunction with the reopening from the COVID-19 pandemic, contributed to strong results. During the pandemic
when masks were required, we held off on the launch of new products and concentrated on investing in digitalmarketing centered on e-commerce. The products we promoted were mainly eye makeup, which is visible evenwhen masks are worn. After COVID-19 restrictions were lifted, the Company made a complete shift and proactively
launched new products in all categories, including lip, face, and eye, in anticipation of consumersʼ longing for
makeup. Our digitalization efforts since the pandemic also helped in gaining strong support from consumers.

Middle-Range Planning

Shift to a company that creates new value through digitalization andopen innovation
Specific initiatives and results
1

Initiatives to reduce cost●

Performance for the Fiscal Year Ended March 31, 2022

Despite the soaring costs of all energy sources and various raw materials, the consolidated cost-to-sales ratio
declined by 2.0 percentage points to 57.2%, while the cost-to-sales ratio of the Japan segment declined by 1.0
percentage point to 50.4%. Significantly contributing to this result was the expansion of production volume due
to net sales recovery in each segment and the accompanying increase in production efficiency. Furthermore, theprocurement and production divisions are implementing project activities to reduce costs. In Japan, for example,
we achieved a cost reduction of 50 million yen in the “LÚCIDO-L Hair Oil” series by reviewing procurement
and production methods. The Company has also achieved other cost reductions by changing the commercial
distribution system for procurement and reviewing component specifications. At the Fukusaki Factory, we
introduced robots to save labor on the production line, which has led to a reduction in total manufacturing costs.

Initiatives to strengthen the management foundation
Specific initiatives and results

Company Information

Preparing to implement “MHRX,” a strategic HR system to materialize organizational
reform and HR creation
The fiscal year ended March 31, 2023 was a culmination of the preparations for introducing “MHRX,” a new HR
system to create an organization and develop HR capable of change and taking on challenges, aimed at creating
new value for the Group. As part of this initiative, as originally planned, we started a new personnel affair system forcareer development in April 2023 with an all-new ranking, evaluation, and compensation system.

Mandom Report 2023

67

Financial Strategy
1

Financial strategy
Upon starting the 13th Middle-Range Planning (hereinafter “MP-13”), the Company developed the“Financial Strategy to Contribute to Sustainable Company Value Improvement” in April 2021 andcommunicated this strategy within the company.
In principle, the Company makes efforts to improve company value through the following financial
strategy from a perspective of free cash flow (hereinafter “FCF”).
1

Setting ROIC targets
In recent years, “a decline in earning power” has been raised as the Groupʼs issue, which some investors areconcerned about. In MP-13, in addition to traditional net sales and profit targets, the Company newly adopted
ROIC from a perspective of capital efficiency and shifted to management that focuses on “earning power.” MP-13
targeted consolidated ROIC of 7.0% or higher for FY2023 (final fiscal year of MP-13). This level surpasses capitalcosts and makes it possible to grow company value. However, since the fiscal year ended March 31, 2021, theglobal environment has changed drastically, including restrictions on outings and reduced movement of people
due to the pandemic, as well as rising prices of raw materials and supplies, the rapid appreciation of the dollar,
and the ongoing depreciation of the yen. Consequently, the Groupʼs performance, including net sales and profit,
has deviated downward from the initial plan. As a result, consolidated ROIC for the fiscal year ended March 31,
2023 stayed put at 2.1%. Although we returned to operating income in the fiscal year ended March 31, 2023 andwill improve operating income in the following fiscal years, we expect consolidated ROIC to be 2.4% in the fiscal
year ending March 31, 2024.

2

Improve asset efficiency rate through balance sheet (BS) management
The Company will conduct the following measures as part of the financial strategies to achieve the ROIC targets
and evolve into management that takes into account the balance sheet (BS) and cash flow (CF).

(1) Reduction of cross-shareholding

Trends in Cross-shareholdings (listed companies)

The policy states that cross-shareholding shall be less than Left axis: ■ Amount recorded on balance sheet Right axis: Number of companies(Millions of yen)(Companies)
10% of net assets at the end of each fiscal year on the24
20,00025
31,2024
consolidated balance sheet, and that as of March(end of the final fiscal year of MP-13), cross-shareholding
16,000
20
18
shall be reduced by at least 30% compared to March 31,
142021. As of March 31, 2023, cross-shareholding was 10.1% 12,000
13
11,15815of net assets at the end of the fiscal year on the consolidated
8,976
7,195
balance sheet, no more than a 19% reduction compared to
8,000
10
6,247
March 31, 2021. This was due to an increase in the market
4,000
5value of the shares held, despite reducing our shareholding
for policy investments during the year under review. In00
the fiscal year ending March 31, 2024, we will continue to
2020
2021
2022
2023
examine the rationale for our shareholding by company and(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)
consider reductions.

(2) Improvement of cash conversion cycle (CCC)

Trends in CCC

Pre-MP-13
The Company is reviewing to improve the receivables(Months)
turnover cycle, inventory assets turnover cycle, and debt
6
repayments cycle in order to cut down the cycle from 5.6
months on a balance base on March 31, 2021 to 4.0 months
or less on a balance base on March 31, 2024 (end of the
4
final fiscal year of MP-13). The cycle was 5.7 months basedon balances as of March 31, 2023. This was due to anincrease in year-end product inventories at Mandom (Japan) 2
as a result of accelerated production of new products andsummer season products. We will make continued efforts to0
improve asset efficiency.
2021

MP-13

2022
2023
2024
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)
Target68

Mandom Report 2023

(3) Group cash management
About Mandom

The Company regularly checks the cash flows of each Group company, pools excess cash in the Company,
the headquarters of the Group, and utilizes it in high-profitability investments as the Group. In the fiscal year
ended March 31, 2022 and the fiscal year ended March 31, 2023, the Company pooled a total of 1.37 billion
yen in capital.

(4) Financing for strategic investment

3

Value Creation Story

With cooperation from our partner banks, the Company has secured a line of credit of 20 billion yen. There
was no outstanding balance as of March 31, 2023. The Company will utilize this financing for strategic
investments with due consideration to FCF and the profit and loss statement (P/L). For the 14th MiddleRange Planning (MP-14), we will consider a cash allocation policy that combines FCF and the line of credit.
Furthermore, the Company aims to share its earnings results and direction, including Middle-Range Planning,with our partner banks as appropriate in constructing a strong relationship.

Improve shareholder returns
The Company strives to increase FCF through BS management, boost ROIC, and improve shareholder returns.

(1) Dividend policy

Materiality

The Company regards the return of profits to shareholders as an important management issue. While always
keeping the improvement of capital efficiency in mind, we will comprehensively consider a number of factors,
including FCF, investment plans, securing liquidity and economic conditions. We have a basic policy of
implementing stable and continuous returns through dividends (numerical target: consolidated payout ratio of
40% or more excluding special elements). In the fiscal year ended March 31, 2023, dividend was 38 yen, up
2 yen from the previous year, and the payout ratio was 178%.

(2) Acquisition of treasury shares
The Company will deliberate the acquisition of treasury shares after the comprehensive consideration of
economic status, company assets, FCF status, stock price trends, and other factors.
Middle-Range Planning

2

Strengthening governance in accounting
In executing this financial strategy, the Company must also strengthen the financial governance that
underpins the execution.
The Company is undertaking the following initiatives in order to strengthen the financial governance.

Performance for the Fiscal Year Ended March 31, 2022

1

Introduction of the Company-wide ERP system (SAP)In addition to improving the accuracy and speed of decision-making, Mandom is proceeding with theimplementation of SAP for the Group companies aimed at ensuring the accuracy of information and accelerationof consolidating earnings. We aim to build a structure in which 80% of consolidated net sales are covered bycompanies that have implemented SAP. As of March 31, 2023, such companies comprised 77% of consolidated
net sales. We are also proceeding with visualization of management information at each overseas Group
company.

2Standardization of accounting policies on a global base3

Company Information

The Company aims to speed up management decisions and strengthen Group management operations bychanging and aligning various systems, operation rules, and processes in the Group to standardize accounting
policies on a global base.

Minimize tax risks on a global base
The Company is making efforts to minimize tax risks in the overall Group while fulfilling our social responsibilities
through appropriate tax payment in all countries where the Group is operating business.

Mandom Report 2023

69

Middle-Range Planning

Middle-Range Planning Topics

Promotion of Digital Transformation of the Mandom Group
The Mandom Group stipulates “Shift to a company that creates new value through digitalization and open innovation” in its 13th
Middle-Range Planning (MP-13) basic management policies, and accordingly, is developing the internal infrastructure to “Achieve
success in DX (digital transformation) resulting in the realization of wellness.”

Promotion of digital transformation in MP-13
We have been promoting digital transformation throughout the Company,
establishing the DX Promotion Committee in May 2021, and became a certified
operator under the Digital Transformation Certification* in August 2022.

MP-13
basic management
policies

DX objectives* Digital Transformation Certification is a national initiativethat certifies companies that meet the basic requirements
specified in the Digital Governance Code based on the
Act on Facilitation of Information Processing.

3. Shift to a company that creates new value through digitalizationand open innovation
1

Achieve success in DX resulting in the realization of wellness

Transition to a company that produces new value through digitaltransformation
Dramatically expand both the quality and quantity of Dedication to Service (Oyakudachi) bysimultaneously proceeding with initiatives for new businesses and improving efficiency of
existing businesses through a digital foundation

IT strategy
In order to develop the IT environment necessary to shift to become a company that creates new value through promoting digitaltransformation, we have formulated an IT strategy based on the IT priority measures in MP-13.
It sets out three strategic themes as areas of focus: acquisition of new digital technology; data utilization; and reduction of technicaldebt. We are carrying out initiatives under MP-13 to achieve our vision for each theme.
Strategic Theme

1

70

Acquisition of new digital technology
To equip ourselves with organizational capabilities to utilize new digital technologies for operation process transformationand new value creation, we are acquiring knowledge and building up a track record in the utilization of RPA , AI, and lowcode/no-code development technologies.
RPA

To generate management resources through automation of routine operations, develop a system toproactively promote RPA in internal departments and implement it across the Company.

AI

Conduct research on AI technologies that will help solve the Companyʼs issues and consolidate in-house AI experience,and promote more optimal and advanced operations through the use of AI and machine learning technologies.

Low-code/
no-code development

Aiming to create agile operational applications in-house, promote their development using low-code tools
through collaboration between the business and IT divisions.

Mandom Report 2023

2

About Mandom

Strategic Theme

Data utilization
In order to effectively utilize data, which is the source of value creation via digital technology, Mandom promotes data
governance and data management by establishing a basic policy on data utilization, along with analyzing data-related
issues and monitoring the utilization and management of our data.

Value Creation Story

In addition, we built a cloud-based data utilization platform system that functions as a data hub for the entire company,
which can be expanded flexibly according to purpose and usage. Based around this platform, we are advancing various
data utilization measures to maximize the value of internal data assets and generate business results.

Conceptual diagram of the data utilization platform system
Data linkage

Sales results
Product information

Data martMarket information
Data lakeDatawarehouse‥‥‥

Analysis
Prediction anddetection

Reduction of technical debt
In order to maximize business value through proactive use of new technologies, it is important to build and maintainan information system platform that can adapt quickly and flexibly to changes in the business environment. Therefore,
we have formulated company-wide governance rules on IT utilization, and are evaluating existing IT assets from a
combination of perspectives to identify and address technical debt risks that may hinder the use of new technologies.

Middle-Range Planning3

Data catalog

Visualization

Materiality‥‥‥

Strategic Theme

Applications

Information security measures

Performance for the Fiscal Year Ended March 31, 2022

To protect the Groupʼs information assets from increasingly sophisticated cyber attacks and maintain a safe and secure businessenvironment, the Group implements information security measures covering all domestic and overseas Group companies fromorganizational, human resource, technical, and other perspectives.
For organizational measures, we established the Mandom Group Information Security Basic Policy and shared our basic approachand policy on information security across the entire Group. In addition, by referring to global standards and domestic guidelines, weestablished the Mandom Group Unified Standards for Information Security Measures on matters to be observed by Group companies.
All Group companies are implementing initiatives to comply with the standards.
For human resource measures, we conduct regular employee training throughout the year to ensure awareness about compliance withinformation security measures and about basic security procedures. We also internally disseminate information on security incidents
that have occurred in the world to alert employees.

Company Information

For technical measures, in preparation for any unforeseen situations, we have introduced Group-wide tools for early detection andresponse to security breaches, and have established and are operating a 24-hour/365-day security monitoring system through external
security experts.
Through these efforts, the Group as a whole is promoting the optimization of information security measures.

Mandom Report 2023

71

Analyses of Management and Finances
Analysis of Operating Results
During the fiscal year under review, Japanʼs economy showed signsof recovery as the movement restrictions to contain COVID-19 wereeased, and economic and social activities began to return to normal.
On the other hand, raw material prices rose due to the prolonged
situation in Ukraine. Furthermore, the economic outlook remains
uncertain, with concerns that a downturn in overseas economies,
against the backdrop of global monetary tightening and other factors,
could put downward pressure on the domestic economy.
In the economies throughout Asia, our main sphere of overseas
business, East Asia, mainly China, was affected by the movement
restrictions imposed due to the resurgence of COVID-19, while
Southeast Asia as a whole saw an easing of the movement restrictions

and a sustained economic recovery.
Under such economic conditions, the Group is taking measuresaccording to the basic management policies in the Middle-Range
Planning, which is positioned as a period for “Reformation andChallenges” for realizing “VISION 2027.”
As a result, in the fiscal year under review, net sales totaled ¥67,047
million (up 16.9% year on year), operating income totaled ¥1,409
million (operating loss of ¥2,308 million in the previous fiscal year),ordinary income totaled ¥2,207 million (ordinary loss of ¥1,856 million
in the previous fiscal year), and net income attributable to owners ofparent totaled ¥958 million (net loss attributable to owners of parent of¥621 million in the previous fiscal year).

2022(Year ended March 31)

2023(Year ended March 31)(Millions of yen)

(Millions of yen)

Net sales

57,361

67,047

9,685

＋16.9

Cost of sales

33,96438,362

4,398

＋13.0

Selling, general and administrative expenses

25,70627,274

1,568

＋6.1

Operating income (loss)( 2,308)

1,409

3,718

−

452

798

345

＋76.5

Ordinary income (loss)( 1,856)

2,207

4,064

−

Extraordinary income (loss )1,094( 617)( 1,712)−

Income (loss) before income taxes( 762)

1,589

2,351

−

72

571

499

＋690.0Net income (loss) attributable to non-controlling interests( 212)

59

272−

Net income (loss) attributable to owners of parent( 621)

958

1,580

−

Non-operating income (loss)

Income taxes

ChangeYoY(Millions of yen)(%)

Analysis of Financial Position and Cash Flows
1. Assets, Liabilities and Total Equity
Total current assets were ¥49,573 million as of March 31, 2023, up¥6,705 million from a year earlier. This was mainly due to increases of¥1,968 million in notes and accounts receivable – trade and ¥3,233
million in merchandise and finished goods.
Non-current assets were ¥41,431 million as of March 31, 2023, down
¥1,468 million from a year earlier. This was mainly due to a decrease of¥2,202 million in property, plant and equipment due to depreciation.
Current liabilities were ¥13,786 million as of March 31, 2023, up ¥2,552
million from a year earlier. This was mainly due to increases of ¥444
million in notes and accounts payable - trade, ¥492 million in accounts
payable - other, and ¥994 million in other.
Non-current liabilities were ¥6,034 million as of March 31, 2023, up¥552 million from a year earlier. This was mainly due to an increase of¥337 million in deferred tax liabilities.
Total net assets were ¥71,184 million as of March 31, 2023, up ¥2,132
million from a year earlier. This was mainly due to an increase of ¥1,854
million in foreign currency translation adjustment.
As a result, shareholdersʼ equity ratio was 71.6% as of March 31, 2023
(compared to 73.8% from a year earlier).

2022 (Year ended March 31)
Total assets

2023 (Year ended March 31)
Total assets
91,00585,767

Current
liabilities

Current
liabilities

13,786

11,233Current
assets42,868Non-current
liabilities

5,482

Current
assets49,57371,184

69,05142,8996,034

Total equity

Total equity

Non-current
assetsNon-current
liabilities

Non-current
assets41,431(Millions of yen)72

Mandom Report 2023

2. Status of Cash Flows▲

Cash Flows from Operating Activities
Net cash provided by operating activities was ¥4,065 million (comparedto ¥7,693 million provided from a year earlier). It mainly consisted ofincreases resulting from income before income taxes of ¥1,589 million
and depreciation of ¥4,988 million, and a decrease resulting from¥2,943 million increase in inventories.

7,693

4,065

▲

Cash Flows from Investing Activities
Net cash used in investing activities was ¥1,257 million (compared to¥185 million used from a year earlier). It mainly consisted of a decrease
resulting from purchase of property, plant and equipment of ¥1,200
million.

- 2,072
Value Creation Story▲

Cash Flows from Financing Activities
Net cash used in financing activities was ¥2,072 million (comparedto ¥5,385 million used from a year earlier). It mainly consisted of adecrease resulting from dividends paid of ¥1,667 million.

2023(Year ended March 31)
About Mandom

Cash and cash equivalents as of March 31, 2023 came to ¥17,481
million, up ¥1,466 million from the end of the previous fiscal year.
Factors influencing cash flows during the term are as follows.

2022(Year ended March 31)- 1,257- 5,385- 185■ Cash Flows from Operating Activities (Millions of yen)
■ Cash Flows from Investing Activities (Millions of yen)
■ Cash Flows from Financing Activities (Millions of yen)

Capital Policy

1. Financial policy

1) Overview of capital investments
The Group maintains a basic policy of making capital investments infacilities to manufacture products that sustain a competitive advantage.
Total capital investments were ¥1,433 million as of March 31, 2023,
down ¥536 million (27.2%) from a year earlier.
A breakdown by segment is as follows.

Segment name2023 (Millions of yen)

YoY change (%)

606- 54.4

Indonesia

503

7.9

Other overseas

323

88.0

1,433

- 27.2Total

The Company regards the return of profits to shareholders as animportant management issue. While keeping the improvement of
capital efficiency in mind, we will comprehensively consider a numberof factors, including free cash flow, investment plans, securing liquidity
and economic conditions. We have a basic policy of implementing
stable and continuous returns through dividends (numerical target:
consolidated payout ratio of 40% or more excluding special elements).
We allocate internal reserves to strategic investments aimed atboosting corporate value, including investment in facilities to expand
existing business operations, overseas investment and research anddevelopment investment. Furthermore, we will consider purchasingtreasury shares to implement flexible capital policies based on thechanges in the business environment.
The dividends of surplus for the fiscal year under review were as
follows.
Total amount of dividends

Dividends per share(Millions of yen)

(Yen)

November 2, 2022
Resolution of
the Board of Directors

854

19.00

June 23, 2023
Resolution of
the Ordinary General
Meeting of Shareholders

854

19.00

Resolution date

Mandom Report 2023

Company Information

Japan

3. Dividend policy

Performance for the Fiscal Year Ended March 31, 2022

2. Facilities

2) New important facilities
The Group determines its plans for capital investments while
comprehensively taking into consideration investment efficiency andother factors. In principle, each consolidated company separately
determines its capital investment plan. However, the Group makes
adjustments mainly to the reporting companies when determining theplan.
As of March 31, 2023, there were no plans for new important facilities
excluding the new establishment for routine renewal of facilities.

Middle-Range Planning

The Groupʼs financial policy is to maintain a solid balance sheet andappropriate liquid assets for its business activities, and capital is usedprimarily to fund operations and for capital investments, and prioritizes
the use of internal reserves in principle, with any shortfalls covered byloans from financial institutions. If a domestic subsidiary lacks necessary
funds, the shortfall is covered by a loan from the parent company,
while demand for short-term funds from overseas subsidiaries is met
by local-currency-based short-term loans taken out by the Groupʼs main
representative office in the region. The Group regards any additional
funds in hand as cash reserves for business investment, and places
the utmost priority on ensuring their liquidity and security.
We have set commitment lines with financial institutions, and built asystem that can constantly secure funds of over three monthsʼ worth
of monthly sales in order to prepare for unforeseen funding.

Materiality

The Group has two main funding requirements: operation funding requirements and capital investment funding.
The main requirements for operation funding are the supply of raw materials for manufacturing the Groupʼs products, as well as operating expenses
such as manufacturing expenses, and selling, general and administrative expenses. For capital investment funding, the main requirements are thepurchase of non-current assets such as buildings and machinery associated with the acquisition of production facilities.

73

Financial and Non-financial Highlights
Financial Highlights

81,38678,997▲

Earnings per share [EPS]*3 (Yen)▲Consolidated net sales*1 *2 (Millions of yen)
81,774130.1963,310108.76

67,04797.68

57,361

21.31

19.17

-13.84
2018
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

2018
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

8,457

Return on equity [ROE] (%)▲▲

Consolidated operating income (Millions of yen)

9.2
7,135

7.3

5,970

6.5

1,409
-793

-1.0

-2,308
2018
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Operating margin (%)

▲

9.0

2018
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Return on invested capital [ROIC] (%)

▲

10.4

1.5

1.3

7.3

[Adopted as an earnings indicator from the fiscal year ended March 31, 2022]

2.1

2.1

-1.3

-1.7
-4.0

2018
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Payout ratio (%)▲▲

Net income attributable to owners of parent (Millions of yen)

2022
2023
(Year ended March 31) (Year ended March 31)

6,086
5,087

178.3

166.9
4,445

958

860

-621
2018
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

45.3

55.2

63.5

（－）

2018
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)*1 Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated subsidiaries
included in financial statements conforming to IFRS.
*2 From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc.
*3 We executed a 2-for-1 stock split of common stock on October 1, 2017. EPS above is all figures taking into consideration the impact of stock split.

74

Mandom Report 2023

Market data by Mandom calculations (monetary value)
Period: April 2022-March 2023

Number of employees in consolidated companies*6▲▲

Domestic brand share of menʼs cosmetics market

About Mandom

Non-financial Highlights(as of March 31, 2023)

2,732
Other overseas

Japan

550／20.2%

Others 37.2%

Value Creation StoryGATSBY 17.3%

670／24.5%

Men

1,220／44.7%

A 9.8%

Women

1,512／55.3%

B 8.6%

Indonesia

1,512／55.3%

C 7.0%

LÚCIDO 4.8%
Materiality(as of March 31, 2023)

Percentage of males and females in management
positions*7 (fiscal year ended March 31, 2023)▲▲

Initiatives for eco-friendliness in products sold in Japan(Percentage of products that clear our standards*4)

Mandom Corporation(Non-Consolidated)
Women 11.9%

Indonesia

Other overseas

Women 31.1%

Men 40.0%
Middle-Range Planning

53.5%
Men 88.1%

0.348
30,743

Number of employees who have taken childcare leave and return rate*8 *9
Number of employees who have taken childcare leave ■■ Men ■■ Women
Return rate (%) ●● Men ●● Women

0.425
0.389

Performance for the Fiscal Year Ended March 31, 2022■■ CO2 emissions (t-CO2)●● Per unit of net sales (t-CO2/millions of yen)

Women 60.0%▲▲

CO2 emissions (Scope1+2 in Japan and overseas)*5

Men 68.9%

0.363

0.366

100 100

100 100

100 100

100 100

100
80

23
28,457
23,162

24,391

24,309

15
10

12
7

8

9

7

Company Information

8

2
2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)*4 Our standards: eco-friendly product standards (https://www.mandom.co.jp/en/
csr/environment.html)*5 The method used to calculate the data for all fiscal years was revised.
*6 The number of employees in Japan as of March 31, 2023 and in Indonesia andother overseas as of December 31, 2022.

2019
2020
2021
2022
2023
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)*7 Percentages in management positions are calculated based on the number of employees
in manager or higher positions. Officers are not included. Percentages for Mandom
Corporation (non-consolidated) are calculated by applying the definition in the Act on
Promotion of Womenʼs Participation and Advancement in the Workplace.
*8 Return rate: number of employees who have returned after childcare leave ÷ the numberof employees planning to return from childcare leave × 100*9 Performance of Mandom Corporation (non-consolidated).
Mandom Report 2023

75

11-Year Consolidated Financial and Non-financial Highl
2013

2014

2015

2016

March 2013

March 2014

March 2015

March 2016

60,42736.8
38,20813,510
8,708
5,947
3,921
1,117
908
6,241

68,21540.0
40,945
15,96811,301
6,853
4,480
1,147
1,225
7,330

70,925
41.3
41,637
17,172
12,115
6,996
4,485
1,028
1,482
7,595

75,07841.3
44,104
18,164
12,809
6,594
4,704
880
1,008
7,415

3,607

4,091

4,425

6,383

1,467
2,165
6,599
3,105
1,792

7,632
2,143
7,850
4,121
1,960

3,443
2,599
8,228
4,243
1,731

3,725
2,919
8,581
4,998
1,558

60,163
9,126
51,03767,85812,67955,17975,98015,00060,98079,821
13,96565,856

7,605(5,387)2,218(1,646)

7,303(5,596)
1,706(1,833)

5,488(5,141)
346
(341)

7,232
(2,383)
4,849(3,534)

1,005.54
77.15
31.00

1,091.54
87.51
35.00

1,197.11
94.64
38.00

1,277.01
136.52
40.00

9.8
78.2

10.0
75.2

9.9
73.7

8.8
74.8

8.0
10.8
40.2

8.3
11.5
40.0

8.3
10.6
40.2

11.0
9.5
29.3

2,221
565
1,222
434

2,316
566
1,353
397

2,400
557
1,421
422

2,663
562
1,689
412

Operating Results (Millions of yen)
• Net sales
Overseas ratio (%)
Japan
Indonesia
Other overseas• Operating income or operating loss
Japan
Indonesia
Other overseas• Ordinary income or ordinary loss
• Net income attributable to owners of parent or net loss
attributable to owners of parent
Capital investment
Depreciation and amortization
Promotion expenses
Advertising expenses
Research and development expenses

Financial Position (Millions of yen)
Total assets
Liabilities
Total equity

Cash Flows (Millions of yen)
Cash flows from operating activities
Cash flows from investing activities
Free cash flows
Cash flows from financing activities

Per Share Data (Yen)Book value per share (BPS)
Earnings (loss) per share (EPS)
Cash dividends per share

Financial Index (%)
Operating margin
Shareholdersʼ equity ratio
Return on invested capital (ROIC)
Return on equity (ROE)
Return on assets (ROA)
Payout ratio

Non-financial Data
Number of employees by region
Japan
Indonesia
Other overseas

Market Performance
Domestic brand share of menʼs cosmetics market* (%)
Domestic brand share of menʼs cosmetics market* (ranking)Due to a change in the calculation method in April 2021, data that can be calculated under thesame conditions will be available from the 101st fiscal year (ended March 31, 2018) onward.

Notes: 1. We executed a 2-for-1 stock split of common stock on October 1, 2017. EPS and Cash dividends per share above are all figures taking into consideration the impact of stock split.
2. Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated subsidiaries
3. The “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018) have been applied from the beginning of the first
4. From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the* Market data by Mandom calculations (monetary value) Period: April of each year - March of the following year76

Mandom Report 2023

ights2023
March 2023

77,351
40.6
45,94518,32313,081
7,617
5,077
925
1,614
8,183

81,38641.3
47,73919,616
14,030
8,457
5,525
1,181
1,750
9,264

78,99738.7
48,442
17,044
13,510
7,135
4,248
681
2,205
8,161

81,77443.5
46,175
17,791
17,806
5,970
3,014
645
2,310
6,706

63,31038.6
38,847
12,102
12,360
(793)
(255)
(899)
361
(273)

57,361
43.2
32,595
11,751
13,015(2,308)(1,473)(1,204)369(1,856)

67,04746.7
35,76914,17817,098
1,409
282
(676)
1,802
2,207

5,566

6,086

5,087

4,445

860

(621)

958

3,309
3,165
8,077
5,331
1,717

2,855
3,315
8,673
5,207
1,813

3,559
3,583
6,006
5,156
1,826

9,193
4,369
6,471
4,725
1,855

7,980
4,818
4,836
3,416
1,480

1,970
5,337
2,021
3,204
1,399

1,433
4,988
2,281
3,279
1,402

83,835
14,24569,59093,195
17,44575,74993,402
17,59275,81091,66018,20873,452

87,911
18,19869,71385,767
16,716
69,05191,00519,82071,184

9,045(5,920)3,124(2,215)

10,246(6,776)
3,469(2,669)

6,587
6,921
13,509(4,020)

6,937(9,836)(2,899)(8,307)

6,208(5,680)
528
1,125

7,693
(185)
7,508
(5,385)

4,065(1,257)2,808(2,072)

1,352.88
119.0548.00

1,484.67
130.1959.00

1,496.20
108.7660.00

1,495.40
97.68
62.00

1,431.42
19.17
32.00

1,407.65(13.84)36.00

1,448.35
21.31
38.00

9.8
75.4

10.4
74.5

9.0
74.9

7.3
73.2

9.1
10.0
40.3

9.2
10.5
45.3

7.3
8.8
55.2

6.5
7.2
63.5

(1.3)
73.1
(0.3)
1.3
(0.3)
166.9

(4.0)
73.8
(1.7)
(1.0)
(2.1)
−

2.1
71.6
2.1
1.5
2.5
178.3

2,662
581
1,670
411

2,694
595
1,671
428

2,914
605
1,693
616

2,954
629
1,701
624

2,914
667
1,652
595

2,765
665
1,561
539

2,732
670
1,512
550

27.9
No. 1

27.6
No. 1

26.8
No. 1

24.5
No. 1

22.8
No. 2

23.5
No. 2

Company Information

2022
March 2022

Performance for the Fiscal Year Ended March 31, 2022

2021
March 2021

Middle-Range Planning

2020
March 2020

Materiality

2019
March 2019

Value Creation Story

2018
March 2018

About Mandom

2017
March 2017

included in financial statements conforming to IFRS.
quarter of the fiscal year ended March 31, 2019.
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc.

Mandom Report 2023

77

Consolidated Financial Statements
Consolidated Balance Sheet(Millions of yen)

2022

2023

ChangeCash and deposits

20,01821,493

1,474

Notes and accounts receivable - trade

9,227

11,196

1,968

Merchandise and finished goods

8,511

11,744

3,233

456

480

23

Raw materials and supplies

3,152

3,303

150

Other

1,524

1,362

(161)

Item

AssetsCurrent assets

Work in process

Allowance for doubtful accounts
Total current assets

(22)

(6)

16

42,86849,573

6,705

Non-current assets
Property, plant, and equipment
Buildings and structures
Accumulated depreciation

32,01232,427414(15,588)(16,720)(1,131)(716)

Buildings and structures, net

16,42315,706

Machinery, equipment, and vehicles

26,987

27,590602(19,392)(21,401)(2,009)

Accumulated depreciation

7,595

6,188

(1,406)

Tools, furniture, and fixtures

7,784

7,591

(192)

Accumulated depreciation(7,003)(6,909)

93

781

682

(99)

1,213

1,247

34

Machinery, equipment, and vehicles, net

Tools, furniture, and fixtures, net
Land
Leased assets
Accumulated depreciation

4

4

0

(1)

(2)

(0)

2

1

(0)

874

995

121

Accumulated depreciation

(538)

(655)

(116)

Right of use assets, net

335

340

4

Leased assets, net
Right of use assets

308

291

(17)

26,66024,458(2,202)

2,821

2,820

(0)

861

861

(0)

Customer relation assets

1,346

1,346

(0)

Software

1,825

1,287

(538)

388

567

179

7,243

6,882

(360)

Construction in progress
Total property, plant, and equipment
Intangible assets
Goodwill
Trademark right

Other
Total intangible assets
Investments and other assets

7,405

8,302

896

Retirement benefit asset

309

418

108

Deferred tax assets

627

763

135
(49)

Investment securities

78

Other

663

613

Allowance for doubtful accounts

(10)

(7)

3

Total investments and other assets

8,995

10,0901,094

Total non-current assets

42,89941,431(1,468)

Total assets

85,76791,005

5,237

Mandom Report 2023

(Millions of yen)

2023

Change

3,188

3,632

444

Short-term borrowings

226

142

(84)

Accounts payable - other

4,111

4,603

492

Income taxes payable

151

414

262

Provision for bonuses

654

1,085

430

Provision for Directorsʼ compensations based on profit

37

49

11

2,863

3,858

994

11,233

13,786

2,552

Deferred tax liabilities

1,621

1,959

337

Retirement benefit liability

2,580

2,775

194

Other

1,280

1,300

19

Total non-current liabilities

5,482

6,034

552

Total liabilities

16,716

19,8203,104

Share capital

11,394

11,3940

Capital surplus

11,05811,08627

Retained earnings

48,51347,807(705)

Treasury shares(6,589)(6,590)(0)64,376

63,698(678)

Valuation difference on available-for-sale securities

3,348

3,967

619

Foreign currency translation adjustment(4,555)(2,701)

1,854

Remeasurements of defined benefit plans

152

161

8

Total accumulated other comprehensive income(1,055)

1,426

2,482

Non-controlling interests

5,729

6,058

328

Total net assets

69,051

71,184

2,132

Total liabilities and net assets

85,76791,005

5,237

About Mandom

2022

Item

Liabilities
Current liabilities
Notes and accounts payable - trade

Total current liabilities

Value Creation Story

Other

Non-current liabilities
Materiality
Middle-Range Planning

Net assets
Shareholdersʼ equity

Performance for the Fiscal Year Ended March 31, 2022

Total shareholdersʼ equity
Accumulated other comprehensive income

Company Information

Mandom Report 2023

79

Consolidated Financial Statements

Consolidated Statement of Income(Millions of yen)

2022

2023

ChangeNet sales

57,361

67,047

9,685

Cost of sales

33,96438,362

4,398

Gross income

23,397

28,684

5,286

2,021

2,281

260

Item

Selling, general and administrative expenses
Promotion expenses
Advertising expenses

3,204

3,279

75

Transportation and storage costs

2,997

3,418

421

Remuneration, salaries and allowances

7,450

7,769

318

Provision for bonuses

524

846

322

Retirement benefit expenses

296

303

7

1,429

1,414

(15)
27

Depreciation

226

253

Research and development expenses

1,399

1,402

2

Other

6,156

6,304

147

Total selling, general and administrative expenses

25,70627,274

1,568

Operating income (loss)(2,308)

1,409

3,718

Interest income

193

257

63

Dividend income

108

95

(13)

Share of profit of entities accounted for using equity method

162

230

68

Foreign exchange gains

−
157

122

122

228

71

622

934

312

Interest expenses

22

21

(1)

Commitment fees

12

9

(2)

Compensation expenses

103

84

(18)

Foreign exchange losses

2
29

−
20

(2)

Other
Total non-operating loss

170

136

(33)

Ordinary income (loss)(1,856)

2,207

4,064

Amortization of goodwill

Non-operating income

Other
Total non-operating income
Non-operating loss

(8)

Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income

3

8

4

1,162

42

(1,119)1,165

50(1,115)Extraordinary loss
Loss on sale of non-current assets

2

0

(1)

Loss on retirement of non-current assets

68

16

(51)

Business restructuring expenses

−

651

651

Other

0

−

(0)

71

668

596

Income (loss) before income taxes

(762)

1,589

2,351

Income taxes - current

132

666

534

Income taxes - deferred

(59)

(94)

(35)

Total income taxes

72

571

499

Net income (loss)

(834)

1,018

1,852

Net income (loss) attributable to non-controlling interests

(212)

59

272

Net income (loss) attributable to owners of parent

(621)

958

1,580

Total extraordinary loss

80

Mandom Report 2023

Consolidated Statement of Comprehensive Income(Millions of yen)

Change

(834)

1,018

1,853

Valuation difference on available-for-sale securities(1,476)

619

2,096

Foreign currency translation adjustment

2,884

1,999

(885)

Remeasurements of defined benefit plans, net of tax

138

69

(69)

Share of other comprehensive income of entities accounted
for using equity method

108

151

42

1,654

2,839

1,185

820

3,857

3,037

Comprehensive income attributable to owners of parent

346

3,440

3,095

Comprehensive income attributable to non-controlling interests

474

416

(58)

Net income (loss)

2022

About Mandom

2023

Item

Other comprehensive income

Comprehensive income

Value Creation Story

Total other comprehensive income

Comprehensive income attributable toMateriality
Middle-Range Planning

Performance for the Fiscal Year Ended March 31, 2022
Company Information

Mandom Report 2023

81

Consolidated Financial Statements

Consolidated Statement of Changes in Equity(Millions of yen)

For the Fiscal Year Ended March 31, 2022

Shareholdersʼ equity

Balance at beginning of
periodSharecapitalCapitalsurplusRetainedearnings

11,394

11,01350,662

Accumulated other comprehensive income

Valuation
Total
NonForeign
difference
Total
Remeasurements accumulated controlling Total net
Treasurycurrency
assetsothershareholdersʼ on availableof definedinterests
sharestranslation
for-salebenefit plans comprehensive
equityadjustment
securities
income(6,826)

66,245

4,825(6,933)85(2,023)

5,491

69,713

Changes during period
Dividends of surplus(1,527)(1,527)(1,527)Net loss attributable toowners of parent

(621)

(621)

(621)

(0)

(0)

(0)

236

227

227

53

53

Purchase of treasury
shares
Disposal of treasury
shares(9)

Change in ownershipinterest of parent due totransactions with noncontrolling interests

53

Net changes in items otherthan shareholdersʼ equity
Total changes during period
Balance at end of period(1,477)

2,377

67

968

238

1,206

−

44

(2,149)236(1,868)(1,477)

2,377

67

968

238

(662)

11,394

11,05848,513(6,589)64,376

3,348(4,555)152(1,055)

5,729

69,051(Millions of yen)

For the Fiscal Year Ended March 31, 2023

Shareholdersʼ equity

Balance at beginning of
periodSharecapitalCapitalsurplusRetainedearnings

11,394

11,05848,513

Accumulated other comprehensive income

Valuation
Total
NonForeign
difference
Total
Remeasurements accumulated controlling Total net
Treasurycurrency
assetsothershareholdersʼ on availableof definedinterests
sharestranslation
for-salebenefit plans comprehensive
equityadjustment
securities
income(6,589)64,376

3,348(4,555)152(1,055)

5,729

69,051

Changes during period
Dividends of surplus
Net income attributable toowners of parent(1,664)(1,664)(1,664)

958

958

958

(0)

(0)

27

27

Purchase of treasury
shares(0)Change in ownershipinterest of parent due totransactions with noncontrolling interests

27

Net changes in items otherthan shareholdersʼ equity
Total changes during period
Balance at end of period

82

Mandom Report 2023

619

1,854

8

2,482

328

2,810

−

27

(705)

(0)

(678)

619

1,854

8

2,482

328

2,132

11,394

11,08647,807(6,590)63,6983,967(2,701)

161

1,426

6,058

71,184

Consolidated Statement of Cash Flows(Millions of yen)

2022

2023

ChangeAbout Mandom

Item

Cash flows from operating activities
Income (loss) before income taxes

(762)

1,589

2,351

Depreciation

5,337

4,988

(348)

Amortization of goodwill

226

253

27

Increase (decrease) in allowance for doubtful accounts

12

(21)

(34)

Increase (decrease) in provision for sales returns

(481)

−

481

Increase (decrease) in provision for bonuses

(190)

431

622

60

63

(302)

(352)

(50)

Foreign exchange losses (gains)

(105)

(265)

(159)

Share of loss (profit) of entities accounted for using equity method

(162)

(230)

(68)

68

15

(52)

(1,162)

(42)

1,119

Loss on retirement of property, plant, and equipment
Loss (gain) on sale of investment securities

(7)

(6)

−

651

651

Decrease (increase) in trade receivables

319(1,585)(1,905)Decrease (increase) in inventories

964(2,943)(3,908)

Increase (decrease) in trade payables

1,743

398

(1,345)

Increase (decrease) in accounts payable - other

(251)

172

424

Other, net

2,557

428

(2,128)Subtotal

7,807

3,539

(4,267)

Interest and dividends received

482

643

161

Interest paid

(22)

(21)

1

Business restructuring expenses paid

−

(5)

(5)

(573)

(91)

481

7,693

4,065

(3,628)

Payments into time deposits(3,264)(5,643)(2,379)Proceeds from withdrawal of time deposits

2,678

5,854

3,176

Purchase of property, plant, and equipment(1,741)(1,200)

540

(350)

(416)

(66)

(8)

(8)

(0)

2,462

131

(2,330)

Income taxes paid
Net cash provided by (used in) operating activities

Middle-Range Planning(1)

Business restructuring expenses

Materiality

Loss (gain) on sale of non-current assets

Value Creation Story(3)

Interest and dividend income

Increase (decrease) in retirement benefit liability

Cash flows from investing activities

Purchase of intangible assets
Proceeds from sale and redemption of investment securities
Other, net
Net cash provided by (used in) investing activities

39

26

(12)

(185)

(1,257)(1,071)(3,476)

(98)

3,378

(200)

(244)

(44)

(1,525)(1,667)(142)

Performance for the Fiscal Year Ended March 31, 2022

Purchase of investment securities

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Repayments of lease obligations
Dividends paid

(2)

0

(57)

121

(0)

(0)

0

(5,385)(2,072)

3,313

851

730

(120)

Net increase (decrease) in cash and cash equivalents

2,974

1,466

(1,507)

Cash and cash equivalents at beginning of period

13,04016,015

2,974

Cash and cash equivalents at end of period

16,015

17,481

1,466

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Mandom Report 2023

Company Information

(3)
(178)

Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change in scope of consolidation

83

1989. 3

▲

9

▲

▲
▲

▲
▲
▲

1994. 6▲

1995. 6▲▲

1996. 4

▲
▲

12

▲

1997. 1

▲
▲
▲

4
8

▲

1999. 3▲

4
1998. 8▲▲▲Commenced 3rd 3-year Middle-Range Planning
Started a joint venture in Thailand (now consolidated subsidiary
Mandom Corporation (Thailand) Ltd.)Prices revised due to abolishment of sales subsidies
Completed construction of Mandom Tokyo Building
Started a joint venture in the Philippines (now consolidated
subsidiary Mandom Philippines Corporation)
Construction completed on the first stage of new Head Officebuilding; commenced operations in the new building
Commenced 4th 3-year Middle-Range Planning
Started a joint venture in Hong Kong (now an equity method
affiliate Sunwa Marketing Co., Ltd.)
Launched LÚCIDO-L, a lineup of fragrance-free products for women
P.T. Tancho Indonesia Tbk listed on the Jakarta Stock Exchange(currently the Indonesia Stock Exchange)
New Head Office building completed upon finishing second
phase construction
Mr. Motonobu Nishimura appointed president of Mandom Corporation
Established External Director
Commenced 5th 3-year Middle-Range PlanningLaunched “Mandom World,” the Groupʼs website on the Internet
Started a joint venture in China (now consolidated subsidiary
Zhongshan City Rida Cosmetics Co., Ltd.)Started a joint venture in Malaysia (now consolidated subsidiary
Mandom (Malaysia) Sdn. Bhd.)
Established Konan Service Corporation (now mbs Corporation)
Repurchased 1.7 million shares of Mandom common stock on
the open market
Achieved ¥10 billion sales of GATSBY products, a first in theJapanese cosmetics industry for menʼs products
Commenced 6th 3-year Middle-Range Planning
Started a joint venture in South Korea (now consolidated
subsidiary Mandom Korea Corporation)2000 -

2001. 3

▲

▲

11

▲

▲

8

▲

▲

2000. 5

▲

▲
▲

▲

▲

▲

6
8

▲

▲

Mandom Report 2023

▲

▲

84

▲

1988. 2▲

1987. 4
11▲

1986. 1
9▲

1985. 2
3▲

10
1983. 4
1984. 4
7

9

▲

▲

9

Switched from direct sales to distributors
Mr. Ikuo Nishimura appointed president of Mandom Corporation
Commenced Mandom Corporationʼs 1st 5-year Middle-Range
Planning (MP Project)
Commenced sale of Pagliacci lineup through beauty salonsthroughout Japan
Launched Pixy womenʼs cosmetics in Indonesia
Introduced new CI system and changed company logo
Adopted information card system
Launched Pucelle My Lip, the Companyʼs first product geared to
the womenʼs cosmetics market
Entered the womenʼs cosmetics market via door-to-door sales
Commenced the first over-the-counter sales of GATSBY hairfoam for men
Established external Audit & Supervisory Board members
Completed construction of a factory specializing in aerosol
products at the Fukusaki Factory
Commenced 2nd 3-year Middle-Range PlanningLaunched womenʼs cosmetic item Pixy Moisture Lipstick inIndonesia
Started a joint venture in Singapore (now consolidated subsidiary
Mandom Corporation (Singapore) Pte. Ltd.)

4
7

▲

▲

1980. 4
8
1982. 4

1993. 2▲▲

1980 -

7
1991. 4
1992. 2▲▲

1978. 5
7▲

1976. 3▲1971. 41972.10▲7

Received a commendation from the Minister of International
Trade and Industry (now Minister of Economy, Trade andIndustry) for its economic contributions as an export company(also received this commendation again in 1971 and 1972)
Launched the Mandom Series of menʼs cosmetics
Held a product rollout, launching 10 products in 9 categories
Became the first company in Japan to feature a Hollywood star(Charles Bronson) as a character
Company name changed to Mandom Corporation
Established Japan Doctor Renaud Cosmetics Company(now consolidated subsidiary Piacelabo Corporation)
Construction of Fukusaki Factory completed; commenced
operations
Switched from distributors to direct sales
Launched the new GATSBY and Spalding product lines, the firsttime in Japanʼs cosmetics industry that two major lines wereintroduced simultaneously

1990. 4▲▲1970. 6

Mandom Corporation shares traded on the over-the-counter market
Issued 500,000 shares, increasing capital through public offering
Received ECO Mark certification for foam products from theJapan Environment Association for the first time in the industry
Launched LÚCIDO, a lineup of fragrance-free menʼs cosmetics
products, unprecedented in the industry
Japan Doctor Renaud Cosmetics Company was changed to
Piacelabo Corporation
Started a joint venture in Taiwan (now consolidated subsidiary
Mandom Taiwan Corporation)

1990 ▲▲

1970 -

12▲▲

1959. 4
1961. 5
1966.111969.11▲▲

1958. 4▲▲

1933. 4

Established Kintsuru Perfume Corporation
Mr. Shinpachiro Nishimura appointed president of Kintsuru
Perfume Corporation
Launched Tancho Tique,a hit product which laid the foundation for future success
Formed a technical tie-up with a local company in Manila, thePhilippines, and began operations; this marked the first step inoverseas expansion
Company name changed to Tancho Corporation
Mr. Hikoji Nishimura appointed president of Tancho Corporation
Chairman Shinpachiro Nishimura passed away on November 3
Started a joint venture P.T. Tancho Indonesia in Jakarta, Indonesia(now consolidated subsidiary PT Mandom Indonesia Tbk)▲

1927.12
1932.11▲1988.11▲

1927 - 1969

Overall Management
Research, Product Development, and Marketing▲

Mandom Group Detailed History

Mr. Ikuo Nishimura, Director and Senior Advisor of Mandom
Corporation, passed away on May 23
Mandom Corporationʼs share trading unit lowered from 1,000
shares to 100 shares
Fukusaki Factory and Logistics Center certified to ISO14001, theinternational standard for environmental management systems
Commenced operations at PT Mandom Indonesia Tbkʼs Cibitung
Factory
Launched GATSBY Hair Color series, developing a market formenʼs hair color products
Adopted Executive Officer system
Repurchased 2.33 million shares of Mandom common stock on
the open market

Materiality

11

▲

▲
▲

2020 2021. 4

▲

▲
▲

▲

▲

▲

▲

▲

9

▲

▲

6

▲

▲

▲

▲
▲

2023. 4

▲

▲

▲

▲

10

Company Information

Mandom Report 2023

Performance for the Fiscal Year Ended March 31, 2022

2022. 4

▲

▲

▲

▲

11

Mr. Ken Nishimura appointed as President Executive Officer &Director
Mr. Motonobu Nishimura appointed as Representative Director& Chairman
Commenced 13th Middle-Range Planning
Established “Skin Science Joint Research Program” at Kitasato
University, School of Pharmacy
Renewed VI (visual identity) and introduced corporate slogan of“BE ANYTHING, BE EVERYTHING.”
Completed a new factory building at Fukusaki Factory
Implemented recall of five products containing lysozymehydrochloride due to health damage including anaphylactic
symptoms
Transferred from the First Section to the Prime Market of theTokyo Stock Exchange due to its market restructuring
Mandom Corporation recognized as a “Three-Star Certified
Company” (highest rank) in the “Osaka City Leading Company
in Womenʼs Participation” ranking
Mandom Corporation expressed support for Task Force on
Climate-related Financial Disclosures (TCFD) recommendations
and joined the TCFD Consortium“GATSBY Space Shower Wipes” to be carried on theInternational Space Station (ISS) left for space
Started new personnel affair system for career development as
part of “MHRX (Mandom HR Transformation)”

Middle-Range Planning▲2014. 25▲▲

2013. 82019. 1▲▲

4
8
2012. 3

Commenced full-scale renewal of LÚCIDO as an aging care
brandCommenced 10th 3-year Middle-Range PlanningLaunched Bifesta, a cosmetics brand for women
Established Mandom Corporation (India) Pvt. Ltd. (consolidated
subsidiary) in India
Released GATSBY brand Hair Jam as a new styling offering
following on the heels of wax
Launched the LÚCIDO Deodorant series aimed at combating
body odors that develop during middle age

8

▲

▲

2011. 2▲▲

2010 -

▲

▲

7

▲

▲

4

6

▲

▲

2009. 3▲▲12
2008. 4
5

▲

▲

2

10
2018. 5

Value Creation Story▲11
2007. 12017. 4▲▲2006. 8

▲

▲

11

▲

▲

2005. 46

2016.10Extended Fukusaki Factoryʼs production building
Commenced 11th 3-year Middle-Range Planning
Established Mandom Vietnam Co., Ltd. (consolidated
subsidiary) in Vietnam
Relocated head office and factory of PT Mandom Indonesia Tbk
from Jakarta to Bekasi
Established the Laboratory of Advanced Cosmetic Science at
Osaka University
Fire accident at a PT Mandom Indonesia Tbk plant, resulting inloss of life
At the Laboratory of Advanced Cosmetic Science, discovered
human sweat gland stem cells and succeeded in regenerating asweat gland-like structure in vitro
Revised the Mission, and formulated “VISION2027” which
outlines where the Company aspires to be in 2027, the 100th
anniversary
Commenced 12th Middle-Range Planning
Introduced a work-from-home system as one part of its
workstyle reform initiative
Executed stock split (split each common stock into two)
Concentrated the Groupʼs marketing functions to the Tokyo
office located in Aoyama
Introduced restricted stock compensation plan
Eliminated roles of senior advisor, honorary advisor, and advisor
to further increase effectiveness and transparency
Established Mandom Will corp., (non-consolidated subsidiary) to
expand utilization and hiring of diverse human resources
Acquired all shares of ACG International Sdn. Bhd. (making it asubsidiary), which is primarily engaged in young womenʼsmakeup brand operations in Malaysia
Opened flagship store on Tmall Global, borderless e-commerce
websiteAcquired 1,903,500 shares of treasury shares

About Mandom

▲

10

7

▲

▲

3

6

▲

▲

2004. 2▲▲

10

2014. 3
4
2015. 1▲▲

4
5
2003. 1
3

Listed on the Second Section of the Tokyo Stock Exchange
Completed construction of the Mandom Groupʼs Tokyo
Nihonbashi Building
GATSBY Hair Color commercial voted best overall in a survey
carried out by CM Databank in the Tokyo metropolitan area
Commenced 7th 3-year Middle-Range Planning
Started marketing GATSBY and LÚCIDO-L simultaneously in Asia
Honorary Advisor Hikoji Nishimura passed away on January 25
Designated for listing on the First Section of the Tokyo Stock
Exchange
Issued 1.65 million shares, increasing capital through public
offering
Achieved “zero emission” status at the Fukusaki Factory
PT Mandom Indonesia Tbk won the Economic Value Added (EVA)
Award in Indonesia (also received awards in 2004, 2005, and 2006)
Recalled GATSBY Ex Hi-Bleach, a Mandom product, due to a burninjury accident (the first product recall in the Companyʼs history)
Acquired Occupational Health and Safety Management System(OHSAS 18001) certification at the Fukusaki Factory, Logistics
Center, and Production Engineering Division
Outsourced third-party logistics (3PL) operations to Nippon
Express Co., Ltd.
Commenced 8th 3-year Middle-Range Planning
Terminated retirement benefits for directors and corporate
auditors
Developed a preservative-free product incorporating “alkanediol”
Launched Perfect Assist 24, Mandomʼs first proprietary
cosmetic product for women
Launched GATSBY Moving Rubber and featured Mr. Takuya
Kimura as the new model for GATSBY
Acquired 330,000 shares of treasury shares
R&D building completed on Mandom headquarters site
Revised work rules in response to the introduction of the citizen
judge system scheduled to start from 2009
Received a 12th (FY2006) Best Disclosure Award from theTokyo Stock Exchange
PT Mandom Indonesia Tbk achieved annual sales of 1 trillion rupiah
Commenced 9th 3-year Middle-Range Planning
Established Mandom China Corporation (consolidated
subsidiary) in China
Reorganized sales offices in the Tokyo metropolitan area (soldthe Mandom Tokyo Building, Mandom Group Tokyo Nihonbashi
Building, and the Mandom Nihonbashi Bakurocho Building)
Executed absorption mergers of Beaucos Corporation and mbs
Corporation
Acquired 88,800 shares of treasury shares▲▲

2002. 1
3

85

Mandom Group Companies (As of March 31, 2023)
Japan
Accounting Method on
Consolidated Financial
Statements

Percentage
of Voting
Rights Held

1927

−

−

Cosmetics for hairsalons1972

Consolidated

100.0%

Insurance agency services, travel services
and general services

−

1997

Non-consolidated

100.0%

Japan

Contractor to Mandom Group

−

2018

Non-consolidated

100.0%

Company Name

Location

Main Businesses

Main Products

Establishment

Accounting Method on
Consolidated Financial
Statements

Mandom Corporation(Singapore) Pte. Ltd.

Singapore

Sale of cosmetics and other products

Cosmetries,
toiletries and skincare products

1988

Consolidated

100.0%

Mandom Taiwan
Corporation

TaiwanSale of cosmetics and other products

Cosmetries andskin care products

1989

Consolidated

100.0%

Mandom Corporation(Thailand) Ltd.

Thailand

Sale of cosmetics and other products

Cosmetries,
toiletries and skincare products

1990

Consolidated

100.0%

Mandom Philippines
Corporation

Philippines

Sale of cosmetics and other products

Cosmetries andskin care products

1992

Consolidated

100.0%

Mandom Korea
Corporation

South Korea

Sale of cosmetics and other products

Cosmetries,
toiletries and skincare products

1999

Consolidated

100.0%

Mandom China
Corporation

China(Shanghai)

Sale of cosmetics and other products

Cosmetries andskin care products

2008

Consolidated

100.0%

Mandom Corporation(India) Pvt. Ltd.

India

Sale of cosmetics and other products

Cosmetries andskin care products

2012

Consolidated

100.0%

Mandom Vietnam
Co., Ltd.

Vietnam

Sale of cosmetics and other products

Cosmetries andskin care products

2015

Consolidated

100.0%ACG International
Sdn. Bhd.

Malaysia

Others

−2009

Consolidated

100.0%

Alliance Cosmetics
Sdn. Bhd.

Malaysia

Sale of cosmetics and other products

Cosmetries andmakeup products

1991

Consolidated

100.0%

Alliance Cosmetics
Pte. Ltd.

Singapore

Sale of cosmetics and other products

Cosmetries andmakeup products

1965

Consolidated

100.0%PT Alliance Cosmetics

Indonesia

Sale of cosmetics and other products

Cosmetries andmakeup products

2008

Consolidated

100.0%

Mandom (Malaysia)
Sdn. Bhd.

Malaysia

Sale of cosmetics and other products

Cosmetries,
toiletries and skincare products

1997

Consolidated

99.5%

Zhongshan City
Rida Cosmetics Co., Ltd.

China
(Zhongshan)

Manufacture and sale of cosmetics
and other products

Cosmetries andskin care products

1996

Consolidated

66.7%

PT MandomIndonesia Tbk

Indonesia

Manufacture and sale of cosmetics
and other products

1969

Consolidated

65.2%

Sunwa Marketing
Co., Ltd.

China(Hong Kong)

Sale of cosmetics and other products

1993

Equity-method affiliate

44.0%

Company Name

Location

Main Businesses

Main Products

Establishment

Mandom Corporation

Japan

Manufactures and sells products for mass
distribution via distributors, primarily todrug stores and convenience stores

Cosmetries and skincare products

Piacelabo Corporation

Japan

Provides professional-use products andtechnologies to hair salons via distributors

mbs Corporation

Japan

Mandom Will corp.

Overseas

Cosmetries,
makeup and skincare products
Cosmetries,
toiletries and skincare products

Notes: 1. Mandom Corporation (India) Pvt. Ltd. is not currently operating its businesses.
2. Purchase of ACG International Sdn. Bhd. shares (making it a subsidiary) was completed in 2019.
3. Alliance Cosmetics Sdn. Bhd. and Alliance Cosmetics Pte. Ltd. are subsidiaries of ACG International Sdn. Bhd.
4. PT Alliance Cosmetics, an Indonesian subsidiary of ACG International Sdn. Bhd. transitioned to a subsidiary of PT Mandom Indonesia Tbk in 2021.
5. Percentages of voting rights held are rounded down to one decimal place.

86

Mandom Report 2023

Percentage
of Voting
Rights HeldCompany Outline / Stock and Shareholder Information (As of March 31, 2023)
Company Outline
Head Office:December 23, 1927
11,394 million yen

Established:
Share Capital:

Fiscal Year-End:

Manufacture and sale of cosmetics and perfumes,
manufacture and sale of quasi-drugs
March 31

General Meeting of
Shareholders:

Ordinary general meeting of shareholders every June

Businesses:

Number of Employees: 2,732 (Consolidated) / 648 (Non-consolidated)

About Mandom

Mandom Corporation
5-12, Juniken-cho, Chuo-ku, Osaka 540-8530, Japan

Company Name:

Independent Auditor: Deloitte Touche Tohmatsu LLC

Stock and Shareholder Information
Number of Shares
Authorized for Issue:

Major shareholders

81,969,700

Number of Shareholders: 44,464

Prime Market of the Tokyo
Stock Exchange
4917

Stock Listing:
Securities Code:

The Mitsui Sumitomo Trust andBanking Co., Ltd.

Transfer Agent:

Common Stock Holdings
Financial
Institutions
0.07

Securities
Companies
0.07

Domestic
Corporations
0.58
Non-Japanese
0.75

Shareholders by Type
(%)

5,562
3,600

12.37
8.01

Custody Bank of Japan, Ltd. (trust account)

2,876

6.40

SSBTC CLIENT OMNIBUS ACCOUNT

1,858

4.13

Motonobu Nishimura

1,415

3.15

Mandom Employee Shareholding Association

1,390

3.09

THE BANK OF NEW YORK 134105

1,032

2.30

NORTHERN TRUST CO. (AVFC) RE TOWERS WATSON COMMONCONTRACTUAL FUND (TTF)

837

1.86

BNP PARIBAS LUXEMBOURG/2 S/JASDEC/JANUS HENDERSONHORIZON FUND

671

1.49

MN Holdings Co., Ltd.

570

1.27
Materiality

Treasury
Shares
0.00

The Master Trust Bank of Japan, Ltd. (trust account)
Nishimura International Scholarship Foundation

Value Creation Story

Shares of Common Stock
Issued and Outstanding: 48,269,212

No. of shares owned Ratio of share(Thousands)
ownership (%)

Shareholder name or title

Notes: 1. Figures less than 1,000 shares have been rounded down.
2. Ratios of share ownership are rounded to one decimal place.
3. We hold 3,303,802 shares of treasury stock which are not listed above.
4. Ratios of share ownership are calculated excluding treasury shares.

Stock Price and Transaction Volume

Individuals,
other
30.42

4,500

3,500

Financial
Institutions
18.94

2,500

Securities
Companies
2.02
Shareholders by Holding(%)

Stock Price (Yen)

Middle-Range Planning

Treasury
Shares6.84

Individuals,
other
98.53

1,500
Transaction Volume (Shares)

7,000,000

3,500,000

0

Non-Japanese
26.26

Performance for the Fiscal Year Ended March 31, 2022

Domestic
Corporations
15.51

FY2018FY2019FY2020

FY2021

FY2022

Apr. 1, 2018 – Mar. 31, 2019

Apr. 1, 2019 – Mar. 31, 2020

Apr. 1, 2020 – Mar. 31, 2021

Apr. 1, 2021 – Mar. 31, 2022

Apr. 1, 2022 – Mar. 31, 2023

Note: Does not total 100 due to rounding

Introduction to Our IR(-related) Site

IR Information

CSR Information▲

IR Information

Company Information

The Company is working to use its website
for IR activities, in the aim of providing
information fairly and in a timely manner toshareholders and investors.

https://www.mandom.co.jp/en/ir/▲

CSR Information

https://www.mandom.co.jp/en/csr/

Contact: Investor Relations Division

5-12, Juniken-cho, Chuo-ku, Osaka 540-8530, Japan Telephone: +81-6-6767-5020 URL: https://www.mandom.co.jp/en/

Mandom Report 2023

87