BusinessResults Briefing（Fiscal Year Ending March 31,2014)
April 1,2013-March 31,2014

Mandom Corporation（Securities Code: 4917）

Contents

1. Consolidated Business Results
2. Consolidated Net Sales
3. Consolidated Incomes
4. Summary of Our Strategic Business
5. MP-10 Review and MP-11 Overview
6. Forecast of Consolidated BusinessResults for FY2015/3

1. Consolidated Business Results(Unit:Mln Yen)
Annual
FY2014/3 FY2013/3

Balance

Yr/Yr

Yr/YrAchiev.

Net Sales

68,21560,427

7,788

112.9%

107.6%

102.6%

Operating Income6,853

5,947906

115.2%－103.1%

Ordinary Income

7,330

6,241

1,088

117.4%－106.9%Net Income

4,091

3,607

484

113.4%－107.7%

ROE

8.3%

8.0%

EPS¥175.02¥154.29

40.0%

40.2%

Payout Ratio■ Net Sales and Income were updated to the highest.

12. Consolidated Net Sales
2-1. Net Sales by Region(Unit:Mln Yen)
Annual
FY2014/3 FY2013/3

Net Sales

Balance

Yr/Yr

68,21560,427

7,788

112.9%

Japan

40,94538,2082,737

107.2%

Indonesia

15,96813,5102,457

118.2%

Others

11,301

8,708

2,593

129.8%

2-2. Net Sales by Region Analysis(Year-on-Year)

2-3. Net Sales by Region Ratio(Year-on-Year)(Unit:Mln Yen)

Consolidated

7,788

Japan

2,737

Indonesia

2,457

OthersJapanASIA
36.8%
14.4%
22.4%

Indonesia

ASIA
40.0%

63.2%

Others16.6%
23.4% 60.0%

2,593
FY2013/3

FY2014/32

2. Consolidated Net Sales
2-4. Net Sales by Strategic Business Unit

(Unit:Mln Yen)
Annual

FY2014/3 FY2013/3
Net Sales

Balance

Yr/Yr

68,21560,427

7,788

112.9%

46,096

41,5044,592

111.1%

38,32534,8763,448

109.9%

Women's Cosmetics Business

7,547

6,706

841

112.5%

Women's Cosmetry Business

6,828

5,781

1,047

118.1%

Other Business

7,743

6,435

1,308

120.3%

Men's Grooming Business
Gatsby(Unit:Mln Yen)Menʼs Grooming Business
FY2014/3 Results
Total
Gatsby46,09638,325

LucidoJapan

Asia

GrowthRate

Womenʼs Cosmetics Business
FY2014/3 Results

Womenʼs Cosmetry Business

GrowthRate

FY2014/3 Results+11.1%

Total

+9.9%

MandomBeautyLucido-L

PixyPucelle

7,547

Japan

Asia

+12.5%

Total

6,828

Japan

GrowthRate+18.1%

Asia

33. Consolidated Incomes
3-1. Operating Income by Region(Unit:Mln Yen)
AnnualFY2014/3
ResultFY2013/3

per Sales

Resultper Sales

Balance

Yr/YrOperating Income

6,853

10.0%

5,947

9.8%

906

115.2%

Japan

4,480

10.9%

3,921

10.3%

559

114.3%

Indonesia

1,147

7.2%

1,117

8.3%

29

102.6%

Others

1,225

10.8%

908

10.4%

317

134.9%

3-2. Operating Income by Region
Analysis(Year-on-Year)3-3. Operating Income by Region Ratio(Year-on-Year)
Japan(Unit:Mln Yen)

Consolidated

906

Japan
Indonesia
Others

559

ASIA
34.6%

ASIA
34.1%

Others

17.9%

15.3%
18.8%

29

Indonesia

16.7%
65.9%

65.4%

317
FY2013/3FY2014/343. Consolidated Incomes
3-4. Operating Cost Analysis (Year-on-Year)
Operating Cost Total

Cost of Goods

Selling Expenses(Unit:Mln Yen)
Consolidated

Admin. CostJapan
Indonesia

2,276

6,882

Others

2,428

2,177

945
3,321

1,311
1,065

1,048
2,682

658
975

282(Others)
878

458(Indonesia）
137(Japan)
Cost of Goods

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

45.3%

45.6%

23.5%

22.1%

Japan

39.6%

39.7%

22.9%

22.0%

21.2%

22.4%

26.5%

28.1%

10.0%

9.8%

10.9%

10.3%

FY2014/3 FY2013/3FY2014/3 FY2013/3

Indonesia

60.4% 61.7%

19.4%

18.1%

13.0%

11.9%

7.2%

8.3%

FY2014/3 FY2013/3

Selling Expenses

Others

44.4%

46.7%

31.6%

29.0%

13.2%

13.8%

10.8%

10.4%

Admin. Cost
Operating Incomes

FY2014/3 FY2013/3

5

3. Consolidated Incomes
3-6. Ordinary Income and Net Income by Region(Unit:Mln Yen)
Annual
FY2014/3
ResultNon-operating Income/Loss

FY2013/3

per Sales

ResultBalance

per Sales

Yr/Yr

476

0.7%

293

0.5%

182

162.2%

7,330

10.7%

6,241

10.3%

1,088

117.4%

▲ 51

▲0.1%

310.1%▲ 82▲164.7%

7,279

10.7%

6,272

10.4%

1,006

116.0%

Income Taxes and Minority Interests

2,608

3.8%

2,175

3.6%

433

119.9%

Minority Interests in Net Income

579

0.8%

490

0.8%

89

118.2%

4,091

6.0%

3,607

6.0%

484

113.4%

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

Net Income

3-7. Non-Operating Income/Expenses & Extraordinary Profit/Loss(Unit:Mln Yen)

Non-Operating
Income/Expenses
Interest received/dividend
Non-Operating

IncomeOthers

Non-Operating
Expenses

83476
Others

560Extraordinary
Profit/Loss
Extraordinary
Profit51

Profit on salesof investment securities

Profiton disposalof fixed assets

158
Loss on disposalof fixed assets

Extraordinary
Loss209
OthersLoss on sale ofinvestment securities

64. Summary of Our Strategic Business
Sales by business category (%)

Menʼs Grooming BusinessFace & Body CareHair StylingContinued to promote and improve market awarenessof the new Hair Jam hair styling product (released inAugust).
Minor impact on Moving Rubber (No. 1 item);
expanding GATSBY
share of the stylingMenʼs Hair Styling Market Share Trends
market.

OtherOtherGatsby
GB
39.2％
39.2％

GatsbyGB
41.8％

FYE March2013* Mandom data

41.8％

FYE March2014

Womenʼs Cosmetics BusinessCommercials and continued promotion of strong
performance of Bifesta (water-based make-upremover) resulted in maintaining No. 1 positionin the cleansing lotion category.

MarketGrowth-0.6％
GatsbyShareGrowth+2.6Ｐ

Expanded summer seasonal product offerings early instores for stronger growth when peak demandoccurred.
Invested in new commercials for Body Paper for evenhigher usage levels.

Released LUCIDO Deodorant Series
for body chemistry changes in
middle-aged men to takeadvantage of growing concern
among men regarding odor care in
the growing middle-aged menʼscosmetics market.
Initiatives to increase recognitionof the body chemistry changes in
middle-aged men and take steps toremediate the problem.

Increasedrecognition throughnew commercials

Womenʼs Cosmetry Business
Revisited strong-performing
summer seasonal products toimprove product features, lineup.
Stronger storefront promotions for
Disney Series.
Expand out strong
performing DisneySeries lineup7

4. Summary of Our Strategic Business
Sales by business category (%)

Menʼs Grooming BusinessHair StylingContinued to promote products in the hair wax
category, including Water Gloss, our leading itemin the category.
Executed and strengthened storefront promotions
to expand and foster recognition of hair wax.

Womenʼs Cosmetics Business

Strengthened product lineup in our skin care series byreleasing new products.
Rolled out promotional events and invested heavily
commercials to expand share of our make-up series.

Face & Body Care
Released new eau du parfum in the fragrance
category where Urban Cologne is alreadyperforming well.
Expanded product lineup in order to respond toincreased fashion awareness.

Release new eau du parfum fragrance series

Womenʼs Cosmetry Business
Released new hair fragrance
product to the “GLAZELLE”
line to expand productlineup.

First hair fragrance
series for Pucelle

Invested in commercials
for strong-performing
hair care series to groweven greater brandrecognition.
Release new White-Aqua Gel Cream product

Strong-performing LÚCIDO-L series

84. Summary of Our Strategic Business
Sales by business category (%)

China

Indochina

Expanded presence in menʼs hair styling category, focusing mainly onhair spray products; invested in commercials and promotional events
to raise brand recognition
Continued heavy promotion in Thailand and surrounding countries,
including Myanmar, Vietnam, and Cambodia
Assigned sales managers, conducted promotional events, expand
storefront promotions in each country
In Cambodia, expanded Gatsby recognition and sales as a menʼsgrooming products in the hair styling product and menʼs deodorantcategories

India

Despite strong local sales of cosmetics, production system issues inIndia, as well as foreign exchange risk of the devaluation of theIndian rupee, led to decision to temporarily suspend Mandom India
business
Initiatives to expand market presence of Mandom Indonesia business95. MP-10 Review and MP-11 Overview
MP-10 Review
Three-year business plan designed to accelerate Group growth
Numerical Targets and Results
MP-10 Numerical Targets Achieved

Growth PotentialResults

Net Sales¥66.0 billion ⇒Final-Year Target

Result¥68.2 billion

AchievedMenʼs Grooming Business・ Stable growth in menʼs grooming
business, driven by GATSBY

3.2 ％⇒Result

5.4 ％Achieved

・ Aggressive marketing investment togrow the Asian market

3.6 ％⇒Result5.9 ％Achieved

Average Annual Growth Target 19.3 ％⇒Result11.8 ％NotAchieved

・ Maintain operating income ratio
through cost revisions and revenue
growth⇒Result11.3 ％

Achieved

Average Annual Growth Target
GatsbyAverage Annual Growth Target
Women’s Cosmetics Business
Overseas Business
Average Annual Growth Target

9.4 ％Issues・ Womenʼs cosmetics business flat
domestically, delayed expansion
overseas

Profitability

・ Delayed expansion in China andIndia

Consolidated Operating Income Ratio

10 ％Final-Year Target

10.0 ％

Achieved

42.5 ％⇒ Second Fiscal Year 40.2 ％Final Fiscal Year 40.0 ％Achieved⇒

ResultShareholder Returns
First Fiscal Year

Consolidated Payout Ratio
Ongoing Goals

At least 40 ％105. MP-10 Review and MP-11 Overview
MP-11 Overview
Three-year business plan to accelerate growth anddevelop new business in Asia
Growth Potential
Expand business to establish competitive advantage in main markets; grow sales by developing newmarkets, business fields
Target: Consolidated Net Sales MP-11 Final Fiscal Year ¥83.0 billion
Continue to address issues from MP-10; target greater growth compared to MP-10
Sustained Growth in Menʼs Grooming Business
Maintain and expand category share in the menʼs cosmetics market to ensure sustained growth as a core businessMenʼs grooming business

5.2% or greater average annual growth

Accelerate Growth of Womenʼs Cosmetics Business
Focus on skin care and makeup base product categories, accelerating rollout of product lines tailored to each country
Womenʼs cosmetics business

15.0% or greater average annual growth

Continue to strengthen overseas business as an engine of growthMore initiatives to expand scope of business in Indonesia, a main market for Mandom. At the same time, create a foundation
for logistics networks in the Chinese and Indochinese developing markets
Overseas Business

11.4% or greater average annual growthProfitability
Invest in marketing to drive growth while improving profitability at the same timeTarget: Final fiscal year MP-11 consolidated operating income ¥8.6 billion

Shareholder Returns
Continue stable, high-level shareholder returns
Target: Continue consolidated payout ratio of 40% or higher in MP-1111

6. Forecast of Consolidated Business Results for FY2015/3
6-1. Premises for Planning of Consolidated Outlook FY 2015/3
Assumptions for Increased Sales

Assumptions for Increased Profit+ Stable growth in menʼs grooming business+ Higher profits through revenue growth+ Continued expansion of womenʼs cosmetics business Higher cost ratios in connection with greater share ofoverseas sales having higher cost of sales ratios(reduce cost ratios in Japan and overseas)+ High-growth in overseas business as growth engine
 Yen Conversion of overseas revenues due to impactof foreign exchange (strong yen) Higher raw materials costs in Indonesia due toimpact of foreign exchange (devaluation of rupee)

6-2. Consolidated Outlook for FY2015/3(Unit:Mln Yen)FY2015/3

FY2014/3

AnnualInitial Plan

Balance

Net Sales

71,2002,984

Operating Income

7,120

Ordinary Income
Net Income

1Q+2Q
Yr/Yr

ResultInitial Plan

BalanceYr/YrAnnual

1Q+2Q

104.4%

39,0001,956

105.3%

68,21537,043266

103.9%

4,800

▲556

89.6%

6,853

5,356

7,420

89

101.2%

4,980

▲613

89.0%

7,330

5,593

4,320

228

105.6%

2,890▲41287.5%

4,091

3,302

12

6. Forecast of Consolidated Business Results for FY2015/3
6-3. FY 2015/3 Outlook of Main Expenses: Breakdown of Increase/Decreaseover FY 2014/3(Unit:Mln Yen)

2,984

Net Sales

Cost-to-sales
Ratio

+0.8％

■Net Sales[Japan]Despite impact of foreign exchange, higher
revenues achieved due to continued
improvement in each business

Stronger promotion of summer seasonal products (bothmenʼs and womenʼs); brand development/growth forLÚCIDO, Bifesta[Overseas] Build GATSBY line further, continue to improve Pixy(womenʼs cosmetics business), roll out Bifesta more widelyin Asia

■Cost of Sales Ratio

828

SGA

OperatingIncomeOrdinaryIncomeNetIncome[Japan]

Cost reduction initiatives worldwide,
limit increases in cost ratios

Reduce costs of materials and improve productivity[Overseas] Limit increases in raw materials costs and payroll expenses(despite impact of foreign exchange)

266■Selling Expenses

89
228[Japan]Invest heavily in marketing in Japanand overseas

Implement effective marketing investment[Overseas] Continue to invest actively for further growth■Non-operating Income/Loss,
Extraordinary Profit/Loss
No significant fluctuations in assumed conditions at present13