The 1st Half YearBusiness Results
Briefing(Fiscal Year Ending March 31, 2018)

April 1, 2017-September 30, 2017

Mandom Corporation(Securities Code: 4917)

Contents

1. Consolidated Business Results
2. Progress of MP-12
3. Forecast of Consolidated BusinessResults for FY2018/3◆ Appendix

1. Consolidated Business Results

11. Consolidated Business Results

Summary of 1st Half Year of FYE 2018
・Deviation from the plan in breakdown,
but better than projected overall results withincreased sales and income at each level・No revision of full-year earnings forecasts

2

1. Consolidated Business Results1) Consolidated Net Sales and Income at each level
increased steadily・Consolidated Net Sales reached record highs for 5 consecutive years（Mln Yen）

50,00044,24740,00030,00020,00033,97033,851

2012/3

2013/337,04338,452

2014/3

2015/3

41,94142,325

2016/32017/3

10,0000Consolidated Net Sales

2018/33

1. Consolidated Business Results
1) Consolidated Net Sales and Income at each level
increased steadily・Consolidated Operating Income and Consolidated Ordinary Income
reached record highs（Mln Yen）

8,000

Ordinary Income

6,628
6,173

6,000

Operating Income4,357

4,000
FYE 2016/3

Net Income Attributable toOwners of Parent

2,000

Extraordinary
gain resulting
from the sale ofthe Indonesiansubsidiary’s plant0
2012/3

2013/3Operating Income

2014/3
Ordinary Income

2015/3

2016/32017/3

2018/3Net Income Attributable to Owners of Parent

41. Consolidated Business Results ＜Net Sales by Region＞
2) Japan and Indonesia: Steady growth
Others: Impact of lower yen-quoted amounts due to forex rates
・Overseas Sales accounted for 38.0% of Consolidated Net Sales（Mln Yen）

50,000YoY change：＋1.6％

45,00040,00035,00030,0006,9386,829

YoY change：＋7.1％
9,226

25,0009,876

YoY change：＋4.4％

20,00015,00026,26927,432

2017/3

2018/3

10,0005,0000Japan

Indonesia

Others5

1. Consolidated Business Results ＜Net Sales by Strategic Business Unit＞
3) Major growth of Women’s Business mainly resulting from good
performance of Bifesta in Japan and overseas
・Better than projected performance of Bifesta and Barrier Repair
in Japan and Bifesta overseas（Mln Yen）

50,000YoY change：▲8.3％
40,000

3,654

3,985

YoY change：＋15.3％
10,45912,06430,000YoY change：＋2.3％
20,00027,87928,5292016/32017/3

10,0000

Men's Business

Women's BusinessOthers61. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞

Business results by brand・A tough battle for GATSBYGood results for LUCIDO andWomen’s Business

Net Sales by BusinessJapan

Status of our major brands

7

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞

Menʼs

Net Sales by BusinessBusiness【Seasonal items of summer】

Japan・GATSBY Spot Deodorant series has expanded sales,
but summer seasonal items in general have had a toughbattle, mainly due to many rainy days in August in andaround the Kanto region.
・GATSBY brand’s overall performance has been below
the previous year’s level.
■Spot Deodorant series■Weekly averages of highest daily temperatures(Tokyo)2015 Tokyo2016 Tokyo2017 Tokyo8

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞

MenʼsBusiness【Middle-Aged Care】

Net Sales by BusinessJapan・Odor Care series: Continued good performance
・Skin Care series: Major renewal in autumn 2017
Positive initial response following active investment in marketing■Skin care series

91. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Net Sales by Business

Wo m e n ʼs B u s i n e s s【Cleansing】

Japan・Continued investment in TV commercials starting with steadyhigh-performance Cleansing Sheet for even greater recognition
・Renewal of Cleansing Lotion in autumn 2017 leading to better
than projected performance of the brand as a whole■Cleansing Sheet■Cleansing Lotion

10

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Net Sales by Business

Wo m e n ʼs B u s i n e s s【Skin Care Series】
・Addition of Sleeping Pack this autumn for greater market
penetration by the Skin Care series for skin degradation ofwomen in their 30s, launching TV commercials featuring
a brand ambassador

Japan・The brand as a whole has performed well, partly due to the effectof brisk sales of Sheet Mask among inbound tourism in Japan.
■Sleeping Pack

■Oil in Facial Mask

11

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
M i s c e l l a n e o u s To p i c s【Inbound sales】
・Inbound sales are not only foreign tourists visiting Japan; there are also
substantial sales presumably for transnational e-commerce.
The total business with these Inbound sales amounts to about 300 million
yen per month on average.
・Their favorites are mainly Barrier Repair Sheet Mask items, as well as theBifesta and LUCIDO Hair Color series.
■Barrier Repair Facial Mask

■Lucido Hair color series

121. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞

Business results by brand・Good results for GATSBY, steady
performance by Pixy, but a slump forPucelle due to intensified competition

Net Sales by BusinessIndonesia

Status of our major brands

13

1. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞

Menʼs

Net Sales by BusinessBusiness【Hair Styling】
・Favorable results of Styling Pomade Sales have expanded
partly due to sales promotional campaigns addressing
traditional trade.

Indonesia■Styling Pomade sales* All items combined (monetary base)

2014

2015

2016

2017
（Jan‐Jun）

14

1. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞

Wo m e n ʼs B u s i n e s s【Make Up】

Net Sales by BusinessIndonesia

・Sales of Lip Cream targeting young customers has expanded.
Market penetration has progressed, with investment in TV commercials.
・The mainstay Two-way Cake has also fared well, prompted by sales
promotional campaigns.
■Lip Cream TV commercial images15

1. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞

M i s c e l l a n e o u s To p i c s【Export Sales】
・Exportation to Group companies and India has been brisk.
(Sales to Group companies are offset in consolidated accounting.)
・Exportation to Dubai has had difficulty growing, due to unstable situationsin Africa and the Middle East, the final destinations of the exports to Dubai.
■Products for India and Dubai■Products for Group companies (GATSBY)

16

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞

General Status of Business Results

Net Sales by Business・Double-digit growth in China and Singapore(local currency base)Stable performance in most countries, except for some

Others17

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞Menʼs

Net Sales by BusinessBusiness【Pomade】

Others・Pomade, which has been doing well in Indonesia, has beenintroduced into other Asian countries.
・The sale began first in China, Malaysia, and Singapore, showing
steady results immediately following the launch.
■China, Singapore（Dressing Pomade）■Malaysia（Styling Pomade）

18

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞

Wo m e n ʼs B u s i n e s s【Cleansing】

Net Sales by BusinessOthers

・Steady expansion is under way in China, following
accelerated introduction into major retail outlets.
・Actions for e-commerce have been continuously reinforced,resulting in steady growth.
■A store display in China

19

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞

Wo m e n ʼs B u s i n e s s

Net Sales by Business【Cleansing】
・In Taiwan and Singapore, Bifesta has registered the highest
shipment volume.

Others・In Thailand, Bifesta has had a tough battle due to rivals’ offensive
pricing moves.
Sales promotion and other measures are being carried out.
■ A store display in Singapore■A store display in Taiwan■No. 1 Item in Taiwan■No. 1 Itemin Singapore

202. Progress of MP-12（FYE 2018/3〜FYE 2020/3）

21

2. Progress of MP-12■Positioning of MP-12

VISION2027
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 （FY）

S
MP-12

Infrastructuredevelopment

eedingMP-13

Reformation andchallenges

MP-14
Accelerated growth

Corporate Infrastructure Development for Realizing VISION2027
22

2. Progress of MP-12

Management Basic Policy
1.Promotion of category strategies and thoroughimplementation of activity
2. Improvement of growth in overseas operations
focusing on Indonesia
3.Building a group operation system andimproving productivity per unit23

2. Progress of MP-12
1.Promotion of category strategies and thoroughimplementation of activity
1) International marketing conferences were held on GATSBY and Bifesta.

24

2. Progress of MP-12
1.Promotion of category strategies and thoroughimplementation of activity2）Demonstrated that phytic acid suppressed sebum droplets
production in human sebaceous glands25

2. Progress of MP-12
3. Building a group operation system andimproving productivity per unit
1) Sharing of key operational systems (accounting, productioncontrol, etc.) is being promoted.

26

2. Progress of MP-12
3. Building a group operation system andimproving productivity per unit
2) Actions for realizing a paper-free environment■Promoting paper-free meetings■Creating more collaboration spaces27

3. Forecast of Consolidated BusinessResults for FY2018/328

3. Forecast of Consolidated Business Results for FY2018/31) No revision of consolidated business result forecasts for FY2018/3
・For the 2nd half-year, additional marketing investment in Japan andintensified competition overseas are anticipated.
（Unit:Mln Yen）
1Q+2Q

3Q+4Q

ResultFY2017/3

44,24742,325 104.5%

35,75235,026 102.1%

80,00077,351 103.4%

Operating Income

6,173

5,684 108.6%

1,826

1,93294.5%8,000

7,617 105.0%

Ordinary Income

6,628

6,027 110.0%

1,871

2,15586.8%

8,500

8,183 103.9%

Net Income Attributableto Owners of Parent

4,357

4,037 107.9%

1,242

1,52881.3%

5,600

5,566 100.6%

Net Sales

Yr/YrOutlook

FY2017/3

AnnualYr/YrOutlook

FY2017/3

Yr/Yr

Conditions for 2nd half forecasts:±）Changes in the number of foreign
tourists visiting Japan±）Foreign exchange rate fluctuationsー） Intensified competition in the overseas cleansing
product marketー） Intensified competition in the overseas hair styling
product marketー）Increased marketing costs in Japan and overseas

293. Forecast of Consolidated Business Results for FY2018/32) Active marketing investment is scheduled for Japan and overseas.
・Reinforcement of skin care for men and womenJapan・Reinforced sales promotion for a larger share in thewipe-type cleansing product market
・Reinforced sales promotion for next summer

・Addition of new products and marketing investment
for greater sales expansion of GATSBY StylingIndonesia
Pomade・Active marketing investment to reinforce PixyOthers

・Expansion of the sales zone of GATSBY Styling
Pomade・Implementation of measures in response tointensified market competition for Bifesta* Actions in blue are additional measures complementing the original plan.

30

3. Forecast of Consolidated Business Results for FY2018/33) The 90th anniversary dividend: annual dividend of 59 yen
・Increase for six consecutive terms expected, with a payout ratio of 49.3%
70

150%

59

60

48

50
40

30

31

15

1630

18.5

19.5

100%

26.5

20

75%

40.3%

40.2%

50%

29.3%
40.2%

25%

100

125%

49.3%
40.0%

20
42.5%

35

38

40

34.5

1515

16.5

18.5

20

21.5

24.5

12/313/3

14/3

15/3

16/3

17/3

18/30%(forecast)Interim dividend

Year-end dividend

Payout ratio* Effective as of October 1, 2017, Mandom Corp. effectuated a 1:2 stock split. All the figuresin the graph above reflect the influence of the split.

31◆ Appendix

32

1.(Appendix)Consolidated Business Results(Unit:Mln Yen)
1Q+2Q
FY2018/3 FY2017/3

Balance

Yr/Yr

Yr/Yr※

Achiev.

104.9%

102.9%Net Sales

44,24742,325

1,922

104.5%

Operating Income

6,173

5,684

488

108.6%－121.0%Ordinary Income

6,628

6,027

601

110.0%－122.8%Net Income Attributable toOwners of Parent

4,357

4,037

319

107.9%－119.4%¥93.20¥86.35EPS※ Comparison with FY 2017/3 rate after adjustment.

33

2.(Appendix)Consolidated Net Sales
2-1. Net Sales by Region(Unit:Mln Yen)
1Q+2Q
FY2018/3

FY2017/3

44,24742,325

1,922

104.5%

Japan

27,432

26,2691,163

104.4%

Indonesia

9,876

9,226

650

107.1%

Others

6,938

6,829

108

101.6%Net Sales

2-2. Net Sales by Region Analysis(Year-on-Year)(Unit:Mln Yen)

BalanceYr/Yr

2-3. Net Sales by Region Ratio (Year-on-Year)
ASIA
37.9％

ASIA
38.0％

1,922

Consolidated

16.1%

1,163

Japan

22.3%

62.1%

62.0%

650

Indonesia

Others

21.8％

15.7%

108

FY2017/3
Japan

FY2018/3
Indonesia

Others34

2.(Appendix)Consolidated Net Sales
2-4. Net Sales by Strategic Business Unit
(Unit:Mln Yen)
1Q+2Q
FY2018/3 FY2017/3
Net Sales

42,325

1,922

104.5%

28,52927,879649

102.3%

23,45323,263

189

100.8%

Women's Business

12,064

10,4591,604

115.3%

Other Business

3,654

3,985

▲ 331

91.7%

GatsbyMenʼs Business
FY2018/3Results

GatsbyYr/Yr44,247

Men's Business

Total

Balance+2.3％

23,453+0.8％

LucidoJapan

FY2018/3
Results

GrowthRate

28,529Asia(Unit:Mln Yen)

Womenʼs Business

Total

12,064GrowthRate

FY2018/3
Results

GrowthRate+15.3％

Bifesta

Lucido-L

PixyPucelle
Japan

Asia

35

3.(Appendix)Consolidated Incomes
3-1. Operating Income by Region(Unit:Mln Yen)
1Q+2Q

FY2018/3
Result

FY2017/3

per Sales

Resultper Sales

Balance

Yr/YrOperating Income

6,173

14.0%

5,684

13.4%

488

108.6%

Japan

4,539

16.5%

4,043

15.4%

496

112.3%

Indonesia

626

6.3%

489

5.3%

137

128.1%

Others

1,007

14.5%

1,15216.9%

▲ 145

87.4%

3-2. Operating Incomeby Region Analysis (Year-on-Year)(Unit:Mln Yen)

3-3. Operating Income by Region Ratio(Year-on-Year)

ASIA
28.9％

488

Consolidated

496

Japan

Others ▲145

137

16.3%

20.3%
8.6%

Indonesia

ASIA
26.5％

10.2%
71.1%

73.5%

FY2017/3
Japan

FY2018/3
Indonesia

Others36

3.(Appendix)Consolidated Incomes
3-4. Operating Cost Analysis (Year-on-Year)

ConsolidatedJapan

Indonesia

Others(Unit: Mln Yen)
Operating Cost Total

Cost of Goods

Selling Expenses

Admin. Cost25457512
1,4344176665311989241767143474301▲52▲233-5. Operating Cost & Income (Ratio to Sales)
Consolidated

Japan

44.0％ 44.1％

39.1% 38.9％

23.5％ 22.6％

Cost of Goods
Selling Expenses
Operating Income

Indonesia

59.1％ 59.4％
23.3％ 22.1％

Admin. CostOthers

42.8％ 42.9％

28.9％ 30.5％
20.1％ 18.5％

19.1％ 19.3％

22.3％ 22.4％

13.4％ 14.0％

15.4％ 16.5％

15.5％ 15.7％
5.3％ 6.3％

FY2017/3 FY2018/3

FY2017/3 FY2018/3

FY2017/3 FY2018/3

11.4％ 12.0％
16.9％ 14.5％
FY2017/3 FY2018/3373.(Appendix)Consolidated Incomes
3-6. Ordinary Income and Net Income Attributable to Owners of Parent(Unit:Mln Yen)
1Q+2Q
FY2018/3
ResultNon-operating Income/Expenses

FY2017/3

per Sales

Resultper Sales

Balance

Yr/Yr

455

1.0%

342

0.8%

113

133.1%

6,628

15.0%

6,027

14.2%

601

110.0%

▲ 34

▲0.1%

▲7

▲0.0%

▲ 27

482.8%

6,594

14.9%

6,020

14.2%

574

109.5%

Income Taxes and Minority Interests

1,910

4.3%

1,707

4.0%

202

111.9%Net Income

4,684

10.6%

4,312

10.2%

371

108.6%

327

0.7%2750.7%

52118.9%

4,357

9.8%

4,037

9.5%

319

107.9%

Ordinary Income
Extraordinary Proﬁt/Loss
Income before Income Taxes and Minority Interests

Net Income Attributable to Non-controlling interests
Net Income Attributable to Owners of Parent

3-7. Non-Operating Income/Expenses & Extraordinary Profit/Loss
Non-Operating
Income/Expenses
Non-Operating
IncomeExtraordinary
Profit/Loss

455
Interest received/
dividend496

40
Others34
Profit on salesof fixed assets

OthersEquity in earnings of affiliates

Non-OperatingExpenses(Unit:Mln Yen)

Compensation expenses
sales discountsExtraordinary
ProfitExtraordinary
Loss236

Loss on disposal offixed assets38

4.(Appendix)P/L of Mandom Corporation, PT Mandom Indonesia Tbk
Interim Results of FY 2018/3(P/L of Mandom Corporation, PT Mandom Indonesia Tbk)
Mandom Corporation(Unit : Mln Yen)FY2018/3
1Q+2Q

FY2018/3
1Q+2Q

balance■Consolidated: Depreciation,Capital Investment

InitialOutlook

Yr/Yr

FY2018/3 FY2017/3(Unit : Mln Yen)balance

Net sales

29,402

28,1381,264

104.5%

51,000Depreciation

1,574

1,518

55

Cost of Goods

12,71812,241477

103.9%－Capital investment

1,080

1,665

▲ 584

Cost Ratio

43.3%

43.5%

-0.2P

－－

11,983

11,708274

102.3%

－

4,700

4,188

512

112.2%

5,600■Mandom Corp.Only: Depreciation,Capital Investm(Unit : Mln Yen)

519

474

44

109.4%

－

5,219

4,662

557

112.0%

6,300

Selling, general andadministrative
Operating Income
Non-operating Income/Loss

Ordinary Income

FY2018/3 FY2017/3

Extraordinary Profit/loss▲ 14▲6▲7215.2%－Depreciation

Net Income

3,739

3,349

389

111.6%

4,550

Capital investment

PT Mandom Indonesia Tbk
Local Currency

Net sales(Unit : Mln Rp.)
FY2018/3
1Q+2Q

FY2018/3
1Q+2Q

balancebalance

1,037

1,001

35575

1,083

▲ 507

Yen Equivalent(Unit : Mln Yen)FY2018/3 FY2018/3
1Q+2Q
1Q+2Q

Yr/Yr

balance

Yr/Yr

1,367,008

1,252,403

114,604

109.2%Net sales

11,482

10,520962

Cost of Goods

846,844765,12181,722110.7%

Cost of Goods

7,113

6,427

686

109.2%

Cost Ratio

61.9%

61.1%

+0.9P

－Cost Ratio

61.9%

61.1%

+0.9P

Operating Income

112,683

93,275

19,407120.8%

Operating Income946783

163

120.8%Net Income

98,42577,61020,815126.8%Net Income

826

651

174

126.8%

110.7%－Rp.1=￥0.0084 Rp.1=￥0.0084

Details of Womenʼs Business Net Sales(Unit:Mln Yen)
1Q+2Q
FY2018/3

FY2017/3

12,064

10,4591,604

115.3%

Women's Cosmetics Business

7,749

5,871

1,878

132.0%

Women's Cosmetry Business

4,314

4,588

▲ 273

94.0%

Women's BusinessBalance

Yr/Yr39

Regarding Forward-Looking Statements

This document contains forward-looking statements concerning Mandomʼs current
plans, strategies, beliefs and performance. These forward-looking statements
include statements other than those based on historical fact and represent theassumptions and beliefs of management 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 toa number of foreseen and unforeseen risks and uncertainties. All amounts havebeen rounded to the nearest whole unit.

40