The 1st Half YearBusiness Results
Briefing(Fiscal Year Ending March 31, 2019)

April 1, 2018-September 30, 2018

Mandom Corporation(Securities Code: 4917)

Contents

1. Consolidated Business Results
2. Progress of MP-12
3. Forecast of Consolidated BusinessResults for FY2019/3◆ Appendix
Note: Beginning from the first quarter of the fiscal year ending March 31, 2019, some items that had beenprocessed as expenses have been deducted from net sales at overseas consolidated subsidiaries included infinancial statements prepared in accordance with IFRS. The results for the first half of the fiscal year
ended March 31, 2018 have also been calculated according to these standards within this document.
Such calculations have been marked with an asterisk (*) on the following pages as well.

Summary of 1st Half Year of FYE 2019
・Overall net sales are as planned while the reduction insales in Indonesia is compensated for by sales in Japanand other overseas countries.
・Income ended up increasing thanks to the effects of anincrease in sales in other overseas countries and a change
in time to pay sales expenses in and outside Japan.

・In consideration of the payment of expenses that arechanged to the second half and the severe market
environment in Indonesia, full-year projections will not be
modified.
11. Consolidated Business Results21. Consolidated Business Results
1) Consolidated Net Sales and Income at each level
increased steadily・Consolidated net sales: Increased for 6 consecutive terms
Some items that had been processed as
expenses have been deducted from net
sales at overseas consolidated subsidiaries
included in financial statements prepared inaccordance with IFRS.

（Mln Yen）

60,00043,88240,00042,97620,00033,97033,851

2012/3

2013/337,04338,452

2014/3

2015/3

41,94142,32544,247

2016/32017/3

2018/3 *0

Consolidated net sales(new standard)

Consolidated net sales(former standard)

2019/3 *31. Consolidated Business Results
1) Consolidated Net Sales and Income at each level
increased steadily・Consolidated operating income marked the highest record for three consecutive terms andconsolidated ordinary income marked the highest record for four consecutive terms for thesecond quarter.
（Mln Yen）

8,000

7,165

6,000

6,632

4,000

4,845
FYE 2016/3
Extraordinary
gain resulting
from the sale ofthe Indonesiansubsidiary’s plant

2,000

0
2012/3

2013/3Operating Income

2014/3

2015/3

Ordinary Income

2016/32017/3

2018/3

2019/3Net Income Attributable to Owners of Parent

41. Consolidated Business Results ＜Net Sales by Region＞
2) Sales increased in Japan and other overseas countries;
however, they are struggling in Indonesia.
・Overseas Sales accounted for 34.6% of Consolidated Net Sales（Mln Yen）

50,000YoY change：＋10.6％
6,002

YoY change：▲10.3％

9,541

YoY change：＋4.6％

6,636
8,555

25,00027,432

28,6902018/3

2019/3

0

Japan

*

Indonesia

Others*5

1. Consolidated Business Results ＜Net Sales by Strategic Business Unit＞
3) Major growth of Womenʼs Business mainly resulting fromgood performance of Bifesta in Japan and overseas
・Sales of Bifesta and Lucido L within and outside Japan are strong and sales ofGatsby are also growing soundly except in Indonesia.
（Mln Yen）

50,000YoY change：▲0.4％

3,572

3,587
11,66725,000YoY change：＋7.0％

12,485

YoY change：＋0.4％

27,721

27,823

2018/3

2019/30

Men's Business *Women's Business*

Others*6

1. Consolidated Business Results ＜Operating Income by Region＞
4) Operating income increased despite the initial projectionof decreases in income.
・Overall operating income increased thanks to the effects of increased sales in otheroverseas countries and the change to the time of paying sales expenses in Japan andIndonesia.
（Mln Yen）

8,000

YoY change：＋18.6％
6,000

YoY change：▲3.9％

1,007

601

626

YoY change：＋6.5％

4,000

2,000

1,194

4,539

4,836

2018/3

2019/30

JapanIndonesia

Others7

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

Business results by brand

Net Sales by Business・Business of Bifesta and Lucido is growing well.
・Business of Gatsby is also expanding steadily
mainly in summer seasonal items.

Japan

Status of our major brands
Menʼs Business

Womenʼs Business81. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞

Menʼs

Net Sales by BusinessBusiness

・In response to the impact of record heat waves, sales of summer
seasonal items, mainly body papers, are growing well.

Japan・In order to reinforce brand capability, brand value was re-defined.
Skincare series will be renewed for this autumn and image
characters were also refurbished.
■Body Paper■New TV-CM『GATSBY COP』

9

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

Menʼs

Net Sales by BusinessBusiness

Japan・Businesses are performing well mainly with odor care series.
・Facewash series will be additionally released and renewed thisautumn and by doing so the skincare offer for middle-aged men
will be strengthened as well as the skincare series that wererenewed last year.
■Facial wash series■Skin care series TVCM

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

Japan・Sales of eye make-up remover and cleansing sheets continue toincrease.
・This autumn, a new cleansing oil will be released to expand
business further in the category that will be offered.
■Eye Makeup Remover■Cleansing Sheet■Cleansing Oil

11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

Japan・Argan oil series are performing well.
Hair Treatment Oil is ranked No. 1* in sales of single itemsin the hair oil category.
・Hair Repair Treatment Oil was added to respond to consumers who havehigher damage-care needs.
■Hair Treatment Oil■Hair Repair Treatment Oil*Market data by Mandom calculations(quantity)
Period: April 2018-September 2018
Hair Oil Category121. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞

Miscellaneous Topics【Inbound sales】
・Impact of preliminary purchase for large-scale campaign at EC websites in China
on June 18 settled down. Total sum of the purchases by inbound foreign tourists
and the purchases that are considered to be for the purpose of cross-border EC
is approximately 400 million yen per month on average.
・Sales of Barrier Repair Sheet Masks, which are developed horizontally so that
tourists can purchase them after they return to their home country, are growing
well in each country.
■Barrier Repair Facial Mask

■A store display in Malaysia

131. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞Net Sales by BusinessBusiness results by brand・Business of Gatsby are facing struggles in eachcategory except pomade.

Indonesia

・Overall womenʼs business is performing steadily
in both PIXY and Pucelle.
Status of our major brands （Consolidated basis）
Menʼs Business

Womenʼs Business14

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

Menʼs

Net Sales by BusinessBusinessIndonesia
・Sale of Styling Pomade continues to increase well; however, salesof other hair styling products, such as wax or gel, etc., aresluggish due to cannibalization. Therefore, overall sales are in a slump.
■Styling Pomade■Hair styling products other than pomades<Water Gloss（Gel）＞<Styling Wax＞

<Treatment Hair Cream＞

15

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

Wo m e n ʼs B u s i n e s s

Indonesia
・Despite sluggish growth in base makeups and delays in the launchof new products, overall sales are increasing steadily thanks tostrong growth in the decorative category.
・Products that refurbished their brand image, such as main
products, two-way cakes, etc., were released and the brand is
now being strengthened.
・Sales of sheet masks started in June.
■Two-way cake that refurbished its brand image■Serum Sheet Mask

16

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

S u p p l e m e n t【Latest Earnings】
PT Mandom Indonesia Tbk 1Q+2Q+3Q Results（Unit：Mln Rp.）
FY2019/3

FY2018/3

2,048,794

2,076,502

98.7%

Operating Income

175,474

196,033

89.5%

Net Income

150,326

161,635

93.0%

Net Sales

Yr/Yr・In addition to heightened competition environment, severe conditions
will continue due to delays in the release of new products.

17

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

S u p p l e m e n t【Distribution Issues】(1) Strengthening of taxation system by the Indonesian government・It was announced to be implemented in April at first; however, it is now
postponed indefinitely and has no impact.
(2) Revision of business customs at the distribution stage of Mandom・More effective methods to pay expenses that will result in the expansionof Mandom World are under discussion.
■Image of Distribution

Sole Agency
Secondary Agency
Retail Store（Traditional Trade, Modern Trade）

18

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

S u p p l e m e n t【Development of Infrastructure】
・Start to reform the personnel system and compensation system.

【Other】
・Relocate the headquarters functions to Jakarta.

<Overview of the building where our office is located><Inside the office>19

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

General Status of Business Results
・Overall business is performing well.
・Businesses in China and Malaysia, etc. are atdouble-digit growth based on the local currency.

Net Sales by Business

Others20

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

Net Sales by BusinessBusiness

・Sales of pomade are growing well in each country and results are
expanding.

OthersIn Malaysia, sales of pomade expanded in size following the salesof wax.
・Sales are reinforced in each country, such as the release ofadditional items and expansion of the number of items.
■Styling Pomade（Made in Indonesia）■Dressing Pomade（Made in China）<New product>
Ultimate Lock21

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

Net Sales by BusinessBusiness

Others・Sales have also started in Myanmar.
Appointed a local national star as the brand ambassador.

■Mr. Sai Sai Kham Leng,
brand ambassador■A store display
in a Modern Trade■A store display
in a Traditional Trade221. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞Net Sales by Business

Wo m e n ʼs B u s i n e s s

Others・Sales of eye makeup remover and cleansing sheets expanded aswell as in Japan and they led the results.
・Sales in Thailand, where business was facing a slump in recent
years, have recovered thanks to the expansion of items that meet
consumersʼ wants and proactive marketing investment.
■Sampling event in Malaysia■Cleansing lotion (90 mL) expanded in Thailand23

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

24

2. Progress of MP-12
VISION 2027

25

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
26

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 unit27

2. Progress of MP-12■Key action measures implemented in linewith basic management policies(1) Reinforcing brand capability of Gatsby, whichis celebrating its 40th anniversary.
(2) Organize inner branding planning of Bifesta.

(3) We succeeded in visualizing the sweating motion ofhuman sweat gland controlling body temperature.

28

2. Progress of MP-12 ＜Reinforcing brand capability of Gatsby＞(1) In order to reinforce the brand capability of Gatsby, which iscelebrating its 40th anniversary, the brand value will be redefined.
・Under the situation of advancing digitalization and a border-free world, we
consider Asia to be one market and will establish brand value and spirit froma global perspective.
・Develop business mainly by performing Dedication to Service (Oyakudachi) in
association with life-style changes among consumers in Asia.

29

2. Progress of MP-12 ＜Inner branding planning of Bifesta＞(2) Organize inner branding planning for Bifesta
・Set August 29 as Bifesta Day and hold a birthday party for Bifesta.
Creating strong bonds by implementing actions on the same day incommon with each country where Bifesta business has been developed.

30

2. Progress of MP-12 ＜Human sweat glands＞(3) We succeeded in visualizing the sweating motion ofhuman sweat gland controlling body temperature.
Image of human sweat glands

Observing movement of tubes
by contraction from sweating.

31

3. Forecast of Consolidated BusinessResults for FY2019/3

32

3. Forecast of Consolidated Business Results for FY2019/3
1) Year ending March 2019: full-year projection of consolidated
performance will not be amended.
・In the second half, spending on sales expenses for which the time to pay is changed
in and outside Japan and severer competition in Indonesia are projected.
（Unit:Mln Yen）
1Q+2Q
Result

FY2018/3

3Q+4Q
Yr/Yr

Outlook

FY2018/3

AnnualYr/Yr

Outlook

FY2018/3

Yr/Yr

Net Sales*

43,882

42,976102.1%

36,11734,510104.7%

80,00077,486103.2%

Operating Income

6,632

6,173

107.4%

1,967

2,284

86.1%

8,600

8,457

101.7%

Ordinary Income

7,165

6,628

108.1%

2,134

2,635

81.0%

9,300

9,264

100.4%Net Income Attributable to
Owners of Parent

4,845

4,357

111.2%

954

1,729

55.2%

5,800

6,086

95.3%

* Concerning the amount of part of items that were treated as expenses before and that will be deducted from net sales in overseas
consolidated subsidiaries that are consolidated in the financial statement conforming to the International Financial Reporting Standards,
the amount may be subject to change both in the year ending March 2019 and year ended in March 2018 according to projections for thesecond half and projections for the full-year.

【Conditions for 2nd half forecasts】±）Changes in the number of foreign
tourists visiting Japan- ) Spending on sales expenses for which time ofspending is changed in and outside Japan.

±）Foreign exchange rate fluctuations- ) Changing the time when loss on retirement occurs
in association with the construction of a new factorybuilding at Fukusaki Factory.
- ) Severe competition environment in womenʼsbusiness in Indonesia

33

3. Forecast of Consolidated Business Results for FY2019/3
2) Scheduled to spend on expenses for which the time of spending is changed
and to conduct proactive marketing investment within and outside Japan・Marketing investment on Gatsby
Japan

・Reinforcement of offer related to face care foryoung and middle-aged men
・Marketing investment to expand recognition ofrinse-off-type cleansing market
・Marketing investment on new products

Indonesia

・Proactive marketing investment in association withrebranding of PIXY・Strengthening menʼs face care category

Others・Strengthening menʼs hair styling form mainly inpomades・Implementing measures to foster quality word of
mouth in order to reinforce Bifesta*Blue letters are due to changes in the time of implementation from the plan for the first half.

34◆ Appendix

35

(Appendix) Consolidated Business Results(Unit:Mln Yen)
1Q+2Q
FY2019/3 FY2018/3

Balance

Yr/Yr

Yr/Yr※

Achiev.

Net Sales＊

43,882

42,976905

102.1%

102.8%

102.1%

Operating Income

6,632

6,173

459

107.4%－

111.5%

Ordinary Income

7,165

6,628

536

108.1%－

112.8%Net Income Attributable to
Owners of Parent

4,845

4,357

487

111.2%－

121.1%¥103.62¥93.20EPS※ Comparison with FY 2018/3 rate after adjustment.

36

(Appendix) Consolidated Net Sales
2-1. Net Sales by Region(Unit:Mln Yen)
1Q+2Q
FY2019/3 FY2018/3
Net Sales＊

Balance

Yr/Yr

43,882

42,976905

102.1%

Japan

28,69027,432

1,258

104.6%

Indonesia＊

8,555

9,541

▲ 986

89.7%

Others＊

6,636

6,002

634

110.6%

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

ASIA
34.6％

14.0%

15.1%

1,258

Japan

Others＊

ASIA
36.2％

905

Consolidated＊Indonesia＊

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

19.5%

22.2%
63.8%

▲986
634

65.4%

FY2018/3＊
Japan

FY2019/3
Indonesia

Others37

(Appendix) Consolidated Net Sales
2-4. Net Sales by Strategic Business Unit
(Unit:Mln Yen)
1Q+2Q
FY2019/3 FY2018/3
Net Sales＊

Balance

Yr/Yr

43,882

42,976905

102.1%

27,82327,721102

100.4%

22,84822,711

136

100.6%

Women's Business＊

12,485

11,667818

107.0%

Other Business＊

3,572

3,587

▲ 14

99.6%

Men's Business＊
Gatsby ＊※breakdown :Womenʼs Cosmetics 8,064 Mln Yen（Yr/Yr 107.9%）/Women's Cosmetry 4,421 Mln Yen（Yr/Yr 105.5%）

Menʼs Business(Unit:Mln Yen)

Womenʼs Business

FY2019/3 Growth＊
Results
Rate

FY2019/3
Results

Growth＊
Rate

Total

27,823

+0.4％

Total

Gatsby22,848+0.6％

Bifesta

Lucido-L

PixyPucelleLucido

Japan

Asia

FY2019/3
Results

12,485Growth＊
Rate

+7.0％

Japan

Asia

38

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

FY2019/3
ResultOperating Income
Japan

Resultper Sales

Balance

Yr/Yr

6,632

15.1%

6,173

14.4%

459

107.4%

4,836

16.9%

4,539

16.5%

296

106.5%

601

7.0%

626

6.6%

▲ 24

96.1%

1,194

18.0%

1,007

16.8%

186

118.6%

Indonesia
Othersper Sales

FY2018/3

3-2. Operating Income by Region Analysis

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

459

Consolidated

296

Japan

ASIA
26.5％

ASIA
27.1％

16.3%

18.0%

10.2%
Indonesia

Others

▲24

9.1%
72.9%

73.5%
186

FY2018/3

FY2019/3
Japan

Indonesia

Others39

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

Cost of Goods＊

Consolidated

Japan
＊

Selling Expenses

Indonesia

Others(Unit: Mln Yen)
Admin. Cost

447
235
961
446

424

699
▲510

▲962

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

46.0％ 46.0%
19.7% 17.9%

Japan

91
▲260

▲640

Cost of Goods
Selling Expenses
Operating Income

Indonesia

38.9% 39.7%
64.0% 65.4%
22.1% 20.2%
9.2%

13.2%

14.4% 15.1％

16.5% 16.9%

16.3% 18.4%
6.6% 7.0%

FY2018/3

FY2018/3 FY2019/3

FY2019/3

FY2019/3

Admin. Cost

Others

49.8% 48.6%
19.5% 19.0%

22.4% 23.3%

＊

662

▲471

19.9% 21.0%

FY2018/3

120
19
521

＊

13.9% 14.4%
16.8% 18.0%＊

FY2018/3

FY2019/3

40

(Appendix) Consolidated Incomes
3-6. Ordinary Income and Net Income Attributable to Owners of Parent(Unit:Mln Yen)
1Q+2Q
FY2019/3
ResultNon-operating Income/Expenses

FY2018/3

per Sales

Resultper Sales

Balance

Yr/Yr

532

1.2%

455

1.1%

77

116.9%

7,165

16.3%

6,628

15.4%

536

108.1%

▲ 16

▲0.0%

▲ 34

▲0.1%

17

49.0%

7,148

16.3%

6,594

15.3%

553

108.4%

Income Taxes and Minority Interests

2,004

4.6%

1,910

4.4%

94

104.9%Net Income

5,143

11.7%

4,684

10.9%

459

109.8%

298

0.7%

327

0.8%

▲ 28

91.2%

4,845

11.0%

4,357

10.1%

487

111.2%

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
Incomesales discounts

16
Gain on salesof non-current assets

OthersInterest income

Non-Operating
35
Expenses

Extraordinary
Profit/Loss

532

567
Dividend income
Share of profit of entities
accounted for using equity method
Compensation expenses
OthersExtraordinary
ProfitExtraordinary
Loss(Unit:Mln Yen)

2

19

Loss on retirementof non-current assets

41

(Appendix) P/L of Mandom Corporation, PT Mandom Indonesia Tbk
Interim Results of FY 2019/3(P/L of Mandom Corporation, PT Mandom Indonesia Tbk)
Mandom Corporation(Unit : Mln Yen)FY2019/3
1Q+2Q

FY2018/3
1Q+2Q

Net sales

30,771

29,402

Cost of Goods

13,481

Cost Ratio
Selling, general andadministrative
expenses
Operating Income

43.8%

balance

Yr/Yr■Consolidated: Depreciation,Capital Investment (Unit : Mln Yen)

InitialOutlook

FY2019/3 FY2018/3

balance

1,368104.7%

53,500Depreciation

1,651

1,574

76

12,718762

106.0%－

Capital investment

1,765

1,668

97

43.3%

+0.6P

－

－

12,247

11,983264102.2%

－

5,042

4,700

341

107.3%

5,900

518

519

0

99.9%

－

Ordinary Income

5,561

5,219

341

106.5%

6,650

Extraordinary Profit/loss

▲ 15

▲ 14

0

103.7%－

Depreciation

1,017

1,037

▲ 19

Net Income

3,992

3,739

253

106.8%

4,550

Capital investment

1,060

920

140

Non-operating Income/Los■Mandom Corp.Only: Depreciation,Capital Inves (Unit : Mln Yen)FY2019/3 FY2018/3

balance※Capital investment includes intangible assets

PT Mandom Indonesia Tbk
Local Currency(Unit : Mln Rp.)

FY2019/3
1Q+2Q

FY2018/3
1Q+2Q

balance

1,299,310

1,367,008▲ 67,698

Cost of Goods

828,316

846,844▲ 18,528

Cost Ratio

63.8%

61.9%

+1.8P

Operating Income

107,231

112,683▲ 5,451

95.2%

Net Income

93,67398,425▲ 4,752

95.2%

Net sales

Yen Equivalent
FY2019/3 FY2018/3
1Q+2Q
1Q+2Q

Yr/Yr
95.0%

Net sales

97.8%

Cost of Goods
Cost Ratio
Operating Income
Net Income－(Unit : Mln Yen)

10,264balance

Yr/Yr

11,482▲ 1,218

89.4%

6,543

7,113

▲ 569

92.0%

63.8%

61.9%

+1.8P

－

847

946

▲ 99

89.5%

740

826

▲ 86

89.5%

Rp.1=￥0.0079 Rp.1=￥0.0084※Assumption rate FY 2019/3
Rp.1=￥0.0077

42

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.

43