BusinessResults Briefing(Fiscal Year Ending March 31,2017)
April 1,2016-March 31,2017

Mandom Corporation（Securities Code: 4917）

Contents

1. Consolidated Business Results
2. Review of MP-11
3. VISION2027
4. Overview of MP-12
5. FYE 2018/3 Forecast◆ Appendix

1. Consolidated Business Results

11. Consolidated Business Results1) In FYE 2017/3, Consolidated Net Sales and Income at eachlevel increased steadily・Consolidated Net Sales reached record highs for 7 consecutive years（Mln Yen）

100,000

77,35180,00060,00040,00020,00002010/3

2011/3

2012/3

2013/3

2014/3

Consolidated Net Sales

2015/3

2016/32017/32

1. Consolidated Business Results1) In FYE 2017/3, Consolidated Net Sales and Income at eachlevel increased steadily・Consolidated Operating Income and Consolidated Ordinary Income
reached record highs（Mln Yen）

10,000Ordinary Income

8,000

8,183
7,617

Operating Income

6,000

5,566

4,000

Net Income Attributable to
Owners of Parent

2,000

0
2010/3

2011/3Operating Income

2012/3

2013/3

Ordinary Income

2014/3

2015/3

2016/32017/3Net Income Attributable to Owners of Parent

31. Consolidated Business Results＜Net Sales by Region＞
2) Net Sales grew steadily on a local currency basis, despitea decline in yen equivalent, due to appreciation of the yen
・Overseas Sales accounted for 40.6% of Consolidated Net Sales（Mln Yen）

YoY change：＋2.1％

80,00013,081

12,80960,00018,164

18,323

YoY change：＋4.2％

40,00020,000YoY change：＋0.9％

44,10445,945

2016/32017/30

JapanIndonesia

Others4

1. Consolidated Business Results ＜Net Sales by Strategic Business Unit＞
3) In Womenʼs Cosmetics segment, Bifesta enjoyed strong sales
both in Japan and overseas
・Womenʼs segment grew by close to 20 billion yen（Mln Yen）

YoY change：＋2.6％

80,0007,770

YoY change：▲3.3％

7,894

8,167

60,00010,884

7,972

YoY change：＋7.9％

11,747

YoY change：＋3.1％
40,00020,00048,25649,737

2016/32017/30

Men's Grooming

Women's Cosmetics

Women's Cosmetries

Others5

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

M e n ʼs G r o o m i n g B u s i n e s s【Body Care】
・Sales of seasonal items for summer increased due to late-summer heat・“Spot Deodorant” series was launched this spring andTV commercials were aired■Deodorant Body Paper■Spot Deodorant series

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

M e n ʼs G r o o m i n g B u s i n e s s【Middle-Aged Care】
・“Odor Care” market is expanding steadily
・“Body & Scalp Deo Paper” was launched this spring・Sales of “Hair Color” series for gray hair were brisk■Body & Scalp Deo Paper■Hair Color series

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

Womenʼs Cosmetics Business【Cleansing Sheet】
・This spring, our new “Oil-In” type was added to the Cleansing Sheet
lineup, which is enjoying brisk sales■Cleansing Sheet■Cleansing Sheet Oil-In

8

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

Womenʼs Cosmetics Business【Skin Care】
・Our new “Skin Care” series was launched for skin degradation of
women in their 30s■Skin Care Series■TV commercials aired to enhance recognition91. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞

Womenʼs Cosmetries Business【Oil Treatment】
・Sales of “Oil Treatment” series formulated with argan oil havecontinuously been strong
・“Hair Treatment Oil Deep Repair” added to the lineup in August 2016
greatly contributed to overall sales increase101. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞

M e n ʼs G r o o m i n g B u s i n e s s【Hair Styling】
・Sales of “Styling Pomade”
remained strong
・Sales increased by adding“Supreme Hold” and mini size

・Sales of “Styling Wax” seriesalso remained strong
・“Styling Wax” and “Styling
Pomade” contributed to sales
increase in the styling category111. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞

Womenʼs Cosmetics Business【Make Up】
・New products, “Two Way Cake Cover Smooth” and “Lip Cream,”
were released to approach young consumers
・“Lip Cream” in particular received good response. It is expected toboost our sales in this business in the future.
■Lip Cream■Two Way Cake Cover Smooth12

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞M e n ʼs G r o o m i n g B u s i n e s s

CHINA × 「Hair Wax」
・The desire to “design” hair style is growing among young consumers,
mainly university students
・New hair wax users have been developed by holding hair styling
events at university campuses

13

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞M e n ʼs G r o o m i n g B u s i n e s s

TAIWAN × 「Facial Paper」
・Demand for facial paper grew with increasing trends to care foroiliness and stickiness of the face・The market was steadily developed by distributing free samples
at marathon races and stores

14

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

Womenʼs Cosmetics BusinessAsian countries × Cleansing Lotion
・More and more consumers in Asian countries have acquired
the habit of using makeup remover・We have launched Bifesta Cleansing Lotion to the market,
and expanded the market in line with the moves of the market
・Bifesta has taken root in Thailand, Singapore, and other Asian
countries

Store display andfree sample distribution in Singapore

Event booth in Thailand

Over-the-counter sale byrecommendation in Taiwan

152. Review of MP-11（FYE 2015/3〜FYE 2017/3）

16

2. Review of MP-11【Growth Potential】
Consolidated Net Sales
Final year of MP-11¥83billion（Mln Yen）【Profitability】
Consolidated Operating Income
Final year of MP-11¥8.6billion（Mln Yen）

14.0%

90,00083,00080,00070,00075,07868,215

9,000

8,600

77,351
7,618

8,000

70,925

7,000

6,854
10.0%

60,000

6,000

12.0%
11.0%

6,996
6,594

10.0%

9.9%

9.8%
8.8%

50,000

13.0%

9.0%
8.0%

5,000
7.0%

40,000

6.0%

4,000
2014/3

2015/3

2016/32017/3Operating Income result

30,0002014/3

2015/3

Net Sales result

2016/32017/3

Net Sales target

Operating Income target
Operating profit margin17

2. Review of MP-11■Trend in Consolidated Net Sales（Mln Yen）

90,000MP-8･9MP-10･11

85,000

Average annual growth rate
＋5.1％

80,00075,00075,07870,00060,00055,00056,28950,00045,00070,925

Average annual growth rate
＋3.1％

65,00055,178 54,304

77,351

68,21557,26259,801 60,427

51,25047,546 47,923

2017/3

2016/3

2015/3

2014/3

2013/3

2012/3

2011/3

2010/3

2009/3

2008/3

2007/3

2006/3

2005/340,000Growth rate recurrence achieved in the 6 years of MP-10 and 11
compared with the preceding 6 years182. Review of MP-11【Growth Potential】 Menʼs Grooming Business

Average growth rate target 5.2% or higher（Mln Yen）

60,000Three-year average growth rate: ＋2.6％

50,00046,096

46,955

2014/3

2015/348,25649,73740,00030,00020,000GATSBY Styling Pomade（Indonesia）

2016/32017/3

LUCIDO Odor Care series（Japan）

19

2. Review of MP-11【Growth Potential】 Womenʼs Cosmetics Business

Average growth rate target 15.0% or higher（Mln Yen）

15,000Three-year average growth rate：＋15.9％

10,00010,884

7,547

11,747

8,381

5,000

0
2014/3

2015/3

2016/32017/3

BIFESTA
Cleansing series（Japan・Overseas）

20

2. Review of MP-11【Growth Potential】 Overseas Business

Average growth rate target 11.4% or higher（Mln Yen）

Three-year average growth rate：＋4.8％

35,00030,00030,974

31,405

2016/32017/329,28725,00027,27020,00015,0002014/3GATSBY Styling（China）

2015/3

BIFESTA（China）

21

2. Review of MP-11【Shareholder Returns】 Consolidated Payout Ratio

Consolidated basis, excluding extraordinary items 40% or higer
Dividend increase forconsecutive 5 years(planned）

40.0%

96（Yen）

40.3%

40.2%

80

76
70
60

62

29.3%

2014/3

2015/3

Payout Ratio

2016/32017/3

Payout ratio excluding
special factors

2012/3

2013/3

2014/3

2015/3

2016/32017/3

Dividends per share22

2. Review of MP-11【Topic】 Achievements of joint research at the Laboratory of Advanced
Cosmetic Science

Identification of human sweat gland stem cells
regenerating sweat glandular-like structures in vitro
Sweat gland stem cells

Sweat gland-like structure

Sweat glands

Spheres（Myoepithelial cells）（Luminal cells）

23

3. VISION2027

24

3. VISION2027
Years of turbulence, drastic changes, and uncertainty
Inauguration of
President Trump
BrexitCorporate scandals andmanagement crises

Ballooning populationin AsiaLow birthrate andaging in Japan
Evolution of AI

25

3. VISION2027
Operating in todayʼs uncertain world, we are moving to“Create the Future” by advancing the Companyʼs evolution
based on the new “MISSION” and by pursuing forward-looking
operations based on the new “VISION”.

New
Mission(Scale)VISION2027
Reform by predicting
the future

If this situation
will continue・・・

Stagnation period
2Management
crises
Initialyears(MP-8・9)Highly uncertain
futureRecurrence
to growth(MP-10・11)

Secondinitial years

Downturn due to a rapidchanges in the environment(Time)

Past

Present

Future26

3. VISION2027
MANDOM MISSION

27

3. VISION2027
VISION 2027

VISION
2027

A cosmetics company
possessing uniquestrengths in specialized
areas(not an “all-rounder”)

Concrete Corporate Image Elements
1.Authentic proposals
2.Global & ʻOnly Oneʼ
3.Exciting & Excellent
28

3. VISION2027
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 segment andinvest aggressively to expand our womenʼs segment.
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.)■Quantitative View

29

4. Overview of MP-12（FYE 2018/3〜FYE 2020/3）

30

4. Overview 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
31

4. Overview 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 unit32

4. Overview of MP-12
1.Promotion of category strategies and thoroughimplementation of activity1）Nurturing of a category that can become a firm mainstay
・Expand womenʼs segment: Increase sales volume of theexisting categories and enter new categories
・Strengthen cosmetics category by targeting the market for
middle-aged consumers

33

4. Overview of MP-12
1.Promotion of category strategies and thoroughimplementation of activity2）Increase of brand values
・Nurture brands in response to the diversity of each country
and enhance value from a global perspective
・Build new communication models to form strong ties with
consumers34

4. Overview of MP-12
2. Improvement of growth in overseas operations
focusing on Indonesia
1）Indonesia: Display greater Dedication to Service (Oyakudachi)
for middle-income class

Traditional Trade store display

Modern Trade store display

35

4. Overview of MP-12
2. Improvement of growth in overseas operations
focusing on Indonesia
2）Asian countries other than Indonesia: Advance marketing measures uniqueto each country by understanding consumer wants and achieving profitability

Indonesia
OOH

ThailandUsing bloggers

Singapore
In-store marketing

Cambodia
GATSBY Magazine36

4. Overview of MP-12
3.Building a group operation system andimproving productivity per unit
1）Increases in the decision making accuracy and speed by securinga group personnel affair system, accounting system, andinformation system, and building a structure for increasing
productivity per unit2）Construction of a structure that allows prompt strategy
formulation and implementation at the operating company

Japan

Indonesia

OthersGroup Management Foundation37

4. Overview of MP-12■Management Basic Target【Growth Potential】 Consolidated Net Sales in the final year of MP-12:

90 billion yen

Average annual
growth rate

100,000＋5.2%

80,00090,000

10.4%
10.2%

77,35110.0%
10.0%
60,000

9.8%

9.8%

9.6%
40,0009.4%
2017/3
Net Sales

2020/3Operating profit margin38

4. Overview of MP-12■Management Basic Target【Growth Potential】
Menʼs business
Average annual
growth rate

3% or more

Womenʼs business
Average annual
growth rate

Overseas
Average annual
growth rate

10％ or more 10％ or more

39

4. Overview of MP-12■Management Basic Target【Profitability】

Consolidated Operating Profit Margin 10％

100,000
90,00080,00060,00077,351

10.4%
10.2%

Improve
profitability

10.0%

10.0%
9.8%

9.8%
9.6%

40,0009.4%
2017/3
Net Sales

2020/3Operating profit margin【Shareholders Returns】
Consolidated Payout Ratio
Consolidated basis, excluding extraordinary items

40% or higher

40

5. FYE 2018/3 Forecast

41

5. FYE 2018/3 Forecast
FYE 2018/3 Forecast(Unit:Mln Yen)FY2018/3

FY2017/3

AnnualInitial Plan

Balance

1Q+2Q
Yr/Yr

Initial Plan

BalanceResultYr/Yr

Annual

1Q+2Q

Net Sales

80,0002,648

103.4%

43,000674

101.6%

77,35142,325

Operating Income

8,000

382

105.0%

5,100

▲584

89.7%

7,617

5,684

Ordinary Income

8,500

316

103.9%

5,400

▲627

89.6%

8,183

6,027

Net Income Attributable to
Owners of Parent

5,600

33

100.6%

3,650

▲387

90.4%

5,566

4,037

42

5. FYE 2018/3 Forecast
FY 2018/3 Outlook of Main Expenses: Breakdown of Increase/Decreaseover FY 2017/3（Unit：Mln Yen）

2,648

Net Sales

Cost-to-sales
Ratio

0.5%

630

SGA

Operating
IncomeOrdinary
IncomeNet income
Attributable to
Owners of
ParentPrerequisites of the plan
■Net Sales【Japan】【Indonesia】【Others】

・Strengthen key seasonal items for summer for both
men and women・Strengthen menʼs face care category
・Expand marketing of womenʼs skin care・Strengthen hair styling category of GATSBY・Improve competitiveness of Pixy・Strengthen GATSBY depending on given conditions
in each country
・Continue strengthening of Bifesta■Selling expenses

382

316

【Japan】【Indonesia】【Others】

・Continue active investment in womenʼs business【Indonesia】 ・Continue active investment for growth【Others】■Risk factors

33【Japan】

・Drop in sales of seasonal products for summer due tobad weather【Indonesia】 ・Drop in yen equivalent of sales outside Japan due to【Others】
the depreciation of local currencies

43◆ Appendix

44

1.(Appendix)Consolidated Business Results(Unit:Mln Yen)
Annual
FY2017/3 FY2016/3

Balance

Yr/Yr

Yr/Yr ※

Achiev.

Net Sales

77,35175,0782,272

103.0%

107.9%

100.7%

Operating Income

7,617

6,594

1,023

115.5%－

102.9%

Ordinary Income

8,183

7,415

768

110.4%－

103.6%Net Income Attributable to
Owners of Parent

5,566

6,383

▲ 816

87.2%

－

111.3%

ROE

9.1%

11.0%

EPS

¥238.10¥273.04

40.3%

29.3%

Payout Ratio※Comparison with FY 2016/3 ex-change rate
after adjustment■“Net sales” , “Operating Income” and “Ordinary Income” were
updated to the highest.

45

2.(Appendix)Consolidated Net Sales
2-1. Net Sales by Region(Unit:Mln Yen)
Annual
FY2017/3 FY2016/3

Net Sales

75,0782,272

103.0%

Japan

45,945

44,104

1,841

104.2%

Indonesia

18,323

18,164158

100.9%

Others13,081

12,809272

102.1%(Year-on-Year)

Consolidated

2,272

Japan

2-3. Net Sales by Region Ratio (Year-on-Year)
ASIA
41.3％

ASIA
40.6％
17.1％

1,841
24.2％

Others

Yr/Yr

77,3512-2. Net Sales by Region Analysis

Indonesia

Balance

16.9％
58.7％

23.7％

158

59.4％

Japan

272
FY2016/3

Indonesia
Others

FY2017/3

46

2.(Appendix)Consolidated Net Sales
2-4. Net Sales by Strategic Business Unit

(Unit:Mln Yen)
Annual

FY2017/3 FY2016/3
Net Sales

75,0782,272

103.0%

49,73748,2561,481

103.1%

40,58739,3191,268

103.2%

Women's Cosmetics Business

11,747

10,884862

107.9%

Women's Cosmetry Business

7,894

8,167

▲ 273

96.7%

Other Business

7,972

7,770

202

102.6%

GatsbyMenʼs Grooming Business
FY2017/3 Results

GatsbyYr/Yr

77,351

Men's Grooming Business

Total

Balance

GrowthRate

49,73740,587

LucidoJapan

Asia

Womenʼs Cosmetics Business
FY2017/3 Results

Womenʼs Cosmetry Business

GrowthRate+7.9%

FY2017/3 Results

+3.1％

Total

+3.2％

Bifesta

Lucido-L

PixyPucelle11,747

Japan

Asia

Total

▲3.3％

7,894

Japan

Growth
Rate

Asia

47

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

FY2017/3
Result

FY2016/3

per Sales

Resultper Sales

Yr/Yr

Balance

Operating Income

7,617

9.8%

6,594

8.8%

1,023

115.5%

Japan

5,077

11.1%

4,704

10.7%

372

107.9%

Indonesia

925

5.0%

880

4.8%

44

105.1%

Others

1,614

12.3%

1,008

7.9%

605

160.0%

3-2. Operating Income by Region
Analysis(Year-on-Year)3-3. Operating Income by Region Ratio(Year-on-Year)

ASIA
28.7％

Consolidated

ASIA
33.3％

1,023
15.3％

Japan
Indonesia
Others

372

21.2％

13.4％

12.1％

71.3％

44
605

66.7％

Japan

FY2016/3

Indonesia
Others

FY2017/3

48

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

Cost of Goods

Selling Expenses

Admin. Cost

114

ConsolidatedJapan
Indonesia

1,249

1,468

185

678
958

522

378
▲333

▲98

▲190

26
482

Others

567
▲112

▲899

3-5. Operating Cost & Income (Ratio to Sales)
ConsolidatedJapan

Indonesia

OthersCost of Goods
Selling Expenses
Admin. Cost
Operating Incomes

FY
2016/3FY
2017/3FY
FY
2016/3 2017/3

FY
2016/3FY
2017/3FY
2016/3FY
2017/349

3.(Appendix)Consolidated Incomes
3-6. Ordinary Income and Net Income Attributable to
Owners of Parentby by Region(Unit:Mln Yen)
Annual

FY2017/3
ResultNon-operating Income/Loss
Ordinary Income
Extraordinary Proﬁt/Loss
Income before Income Taxes and Minority Interests
Income Taxes and Minority Interests
Net Income
Net Income Attributable to Non-controlling interests
Net Income Attributable to Owners of Parent

FY2016/3

per Sales

Resultper Sales

565

0.7%

820

1.1%

▲ 255

68.9%

8,183

10.6%

7,415

9.9%

768

110.4%

194

0.3%

3,283

4.4%

▲ 3,089

5.9%

8,377

10.8%

10,69814.3%▲ 2,321

78.3%

2,232

2.9%

2,380

3.2%

▲ 148

93.8%

6,144

7.9%

8,317

11.1%

▲ 2,173

73.9%

578

0.7%

1,934

2.6%

▲ 1,356

29.9%

5,566

7.2%

6,383

8.5%

▲ 816

87.2%

3-7. Non-Operating Income/Expenses & Extraordinary Profit/Loss
Non-Operating
Income/Expenses
Non-Operating
IncomeInterest received/
dividend

Foreign exchange loss

Non-Operating
Expenses

247

565
Others813
Equity inearnings of affiliates
Compensation expenses

Yr/Yr

Balance

Extraordinary
Profit/Loss

194
Claim ofinsurance

Extraordinary
ProfitExtraordinary
Loss(Unit:Mln Yen)

229

35

Loss on sale anddisposal of fixed assets50

4.(Appendix)P/L of Mandom Corporation, PT Mandom Indonesia Tbk■Results of FY 2017/3 (P/L of Mandom Corporation, PT Mandom Indonesia Tbk)

FY2017/3

FY2016/3

balance
2,134

Yr/Yr

■Consolidated: Depreciation,Capital Investment

104.5%(Unit : Mln Yen)

Net sales

49,60447,469

Cost of Goods

22,13021,339791

103.7%

Depreciation

3,165

2,919

246

Cost Ratio

44.6%

45.0%

-0.3P

－

Capital investment

3,309

3,725

▲ 416

Selling, general andadministrative expenses

22,08021,034

1,045

105.0%

Operating Income

5,393

5,095

297

105.8%■Mandom Corp.Only: Depreciation,Capital Investmen(Unit : Mln Yen)

758

843

▲ 85

89.9%

6,151

5,939

212

103.6%

Extraordinary Profit/loss

▲ 24

▲ 479

455

5.1%

Net Income

4,517

3,666

851

123.2%

Non-operating Income/Loss

Ordinary Income

PT Mandom Indonesia Tbk
Local Currency

FY2017/3 FY2016/3

FY2017/3 FY2016/3

balance

Depreciation

2,138

1,862

275

Capital investment

2,012

2,346

▲ 333

Yen Equivalentbalancebalance

Yr/Yr(Unit : Mln Yen)FY2017/3

FY2016/3

Net sales

2,526,776

2,314,889

211,886

109.2%Net sales

20,972

21,065

▲ 93

99.6%

Cost of Goods

1,543,337

1,436,977

106,359

107.4%

Cost of Goods

12,80913,076

▲ 266

98.0%

－

FY2017/3 FY2016/3

balance

Yr/YrCost Ratio

61.1%

62.1%

-1.0P

Cost Ratio

61.1%

62.1%

-1.0P

－

Operating Income

235,853

218,680

17,173107.9%

Operating Income

1,957

1,989

▲ 32

98.4%

Net Income

162,059

544,474▲ 382,414

29.8%

Net Income

1,345

4,954

▲ 3,60927.1%

FY2017/3

Rp.1=￥0.0083

FY2016/3

Rp.1=￥0.0091

51