The 1st Half YearBusiness Results
Briefing(Fiscal Year Ending March 31,2017)

April 1,2016-September 30,2016

Mandom Corporation(Securities Code: 4917)

Contents

1. Consolidated Business Results
2. Consolidated Net Sales
3. Consolidated Income
4. Summary of Our Strategic Business5. Forecast of Consolidated Business Resultsfor FY2017/3◆ Appendix

1. Consolidated Business Results(Unit:Mln Yen)
1Q+2Q
FY2017/3 FY2016/3

Balance

Yr/Yr

Yr/Yr ※

Achiev.

Net Sales

42,32541,941383

100.9%

105.6%

101.7%

Operating Income

5,684

5,354

330

106.2%－129.2%

Ordinary Income6,027

5,812

214

103.7%－128.2%Net Income Attributable toOwners of Parent

4,037

6,015

▲ 1,97767.1%－139.2%※ Comparison with FY 2016/3 rate after adjustment.

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

Net Sales

Yr/Yr

42,32541,941383

100.9%

Japan

26,26925,479789

103.1%

Indonesia

9,226

9,808

▲ 582

94.1%

Others

6,829

6,652

176

102.7%

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

ConsolidatedBalance383

Japan

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

ASIA
39.2 ％
15.8％

16.1％

789
23.4％

60.8％

21.8％

62.1％

Indonesia ▲582

Others176

Japan

FY2016/3

Indonesia
Others

FY2017/322. Consolidated Net Sales
2-4. Net Sales by Strategic Business Unit

(Unit:Mln Yen)
1Q+2Q

FY2017/3 FY2016/3
Net Sales

Balance

Yr/Yr

42,32541,941383

100.9%

27,87927,181

698

102.6%

23,263

22,678584

102.6%

Women's Cosmetics Business

5,871

5,362

508

109.5%

Women's Cosmetry Business

4,588

4,792

▲ 204

95.7%

Other Business

3,985

4,605

▲ 619

86.6%

Men's Grooming Business
Gatsby(Unit:Mln Yen)Menʼs Grooming Business
FY2017/3
ResultsTotal

GatsbyFY2017/3
Results

GrowthRate

27,87923,263

LucidoJapan

Womenʼs Cosmetics Business

Asia

Womenʼs Cosmetry Business

5,871

+2.6％

Total

+2.6％

Bifesta

Lucido-L

PixyPucelle
Japan

Asia

+9.5％

GrowthRate

FY2017/3
Results

GrowthRate

Total

4,588

Japan

▲4.3％

Asia

3

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

FY2017/3
ResultFY2016/3

per Sales

Resultper Sales

BalanceYr/YrOperating Income

5,684

13.4%

5,354

12.8%

330

106.2%

Japan

4,043

15.4%

4,177

16.4%

▲ 134

96.8%

Indonesia

489

5.3%

377

3.8%

111

129.7%

Others

1,152

16.9%

800

12.0%

352

144.0%

3-2. Operating Income byRegion Analysis (Year-on-Year)(Unit:Mln Yen)

Consolidated

330

3-3. Operating Income by Region Ratio(Year-on-Year)
ASIA
28.9 ％

ASIA
22.0％
15.0％

Japan

20.3％

7.0％

▲134

8.6％
Indonesia

Others

78.0％

111

352

71.1％

Japan

FY2016/3

Indonesia

FY2017/3

Others43. Consolidated Income
3-4. Operating Cost Analysis (Year-on-Year)
Operating Cost Total

Cost of Goods

Selling Expenses

Admin. Cost

(Unit: Mln Yen)
Consolidated
JapanIndonesia

92337653▲694▲340▲272156968▲13254▲84178▲467▲689

Others▲175

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

Indonesia

OthersCost of Goods

45.2% 44.0%

40.4% 39.1%
62.6% 59.1%

38.3% 42.8%

Selling Expenses
Admin. Cost

23.2% 23.5%
18.8% 19.1%
12.8% 13.4%

21.2% 23.3%

36.7% 28.9%

22.0% 22.3%

19.0% 20.1%

16.4% 15.4%

14.5% 15.5%
3.8%FY2016/3 FY2017/3

FY2016/3 FY2017/3

13.0%

Operating Income

11.4%

12.0% 16.9%

5.3%

FY2016/3 FY2017/3

FY2016/3 FY2017/35

3. Consolidated Income
3-6. Ordinary Income and Net Income Attributable to Owners of Parent(Unit:Mln Yen)
1Q+2Q
FY2017/3
ResultNon-operating Income/Loss

FY2016/3

per Sales

Resultper Sales

Balance

Yr/Yr

342

0.8%

457

1.1%

▲ 115

74.8%

6,027

14.2%

5,812

13.9%

214

103.7%

▲7

▲0.0%

3,872

9.2%

▲ 3,879

▲0.2%

6,020

14.2%

9,684

23.1%

▲ 3,664

62.2%

Income Taxes and Minority Interests

1,707

4.0%

1,8374.4%▲ 12992.9%

Net Income

4,312

10.2%

7,847

18.7%

▲ 3,534

55.0%

275

0.7%

1,832

4.4%

▲ 1,556

15.0%

4,037

9.5%

6,015

14.3%

▲ 1,977

67.1%

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(Unit:Mln Yen)
Non-OperatingIncome/Expenses

342

Interest received/
dividend461
Others1197

Profiton disposalof fixed assets

Others

Non-Operating
IncomeNon-OperatingExpenses

Extraordinary
Profit/Loss

Equity in net income of affiliates
Foreign exchange loss

Extraordinary
ProfitExtraordinary
Loss

613

Loss on sale anddisposal of fixed assets

6

4. Summary of Our Strategic BusinessJapan

Composition of sales by segment*Market data calculated by Mandom

Men’s Grooming Business【Hair Styling】
Styling Grease performed well.
A new styling series to create neat and clean styles
with silky texture was launched in August.

Sales of Lucido brand targeting middle-aged men
were brisk. One Push Care Color Series for grayhair sold well, partly due to its popularity among
foreign travelers to Japan.
In addition, Volume Up Color Treatment waslaunched in August as gradual-effect aftershampoo gray hair cover.

【Face and body】
Sales of summer products,
mainly body paper, werestrong.
In the face care category,“Tsurunto Hada” series forskin-conscious young men waslaunched.

Women’s Cosmetics Business

Bifesta has been a good steadyperformer.
To expand product category, Bifesta
Foaming Whip was launched. This newcleansing foam has been growing insales.
Carbonated Foam Whip

One Push Care Color

Volume Up
Color Treatment

Women’s Cosmetry Business
Happy Deo, Mandomʼs summer product,
faced tough competition this year.
To recover sales, we launched forautumn/winter from Dear Flora Series
the Flower Body Oil and Hand & Nail
Cream with moisturizing effect.

Dear Flora
Flower Body Oil

7

4. Summary of Our Strategic BusinessIndonesia

Composition of sales by segment【Face and body】

Men’s Grooming Business

TV commercial went on air featuring Urban
Cologne, recording a strong growth. We saw
more than two-digit sales increase year onyear.

【Hair Styling】
TV commercial of Styling Pomade
went on air in May: sales havecontinued being strong.
We aim for further increase in sales
by launching additional items.
Furthermore, Water Gloss and Wax
both posted more than two-digit
growth year on year.

TV commercial of Styling Pomade

Outdoor ad of Styling Pomade

Store display of Urban Cologne

Women’s Cosmetics Business

Women’s Cosmetry BusinessTwo-way cake faced touchcompetition.
A new product “CoverSmooth” was launched fromthe series in June.
TV commercial went on air inthe 2nd half of the year.
We expect to see an increasein sales.

Sales were robust for
Mist Cologne, a major
item in the Pink Me
line-up, led by goodperformanceof the series.
Two-way cake
Cover SmoothStore event of Pink Me series

84. Summary of Our Strategic Business
Other markets
China

Composition of sales by segment

Both GATSBY and Bifesta enjoyed healthy growth in sales
GATSBYʼs major items, hair spray and wax, both posted more than two-digit growth.
For Bifesta we made proactive efforts of making store display more attractive anddeveloped promotional campaigns mainly for the Eye Makeup Remover, which isBifestaʼs leading product.

Indochina

VietnamFirst ad campaign launched in June 2016

Wrap advertising was launched on buses and taxies inHo Chi Minh City, the largest city in Vietnam,
to enhance recognition of hair wax. Wrap ad is a fresh
advertising medium in this country where ad regulation is strict.

Cambodia

Increasing GATSBY fans on Facebook
In addition to providing product information, we proposed afresh culture of grooming to consumers on GATSBY Facebook
to arouse interest in the culture and to tap into a newmarket.

Singapore

Bifesta gained the largest market share**Survey by Nielsen: Jan-Jun 2016

We launched a new TV commercial featuring a new brand ambassador.
At the same time, we developed integrated marketing linking SNS, radio,
outdoor advertising and sampling events.
We have gained new users and secured the largest sharein the makeup cleansing market following on our success in Thailand.

95. Forecast of Consolidated Business Results for FY2017/3（Unit:Mln Yen）
1Q+2Q
ResultFY2016/3

3Q+4Q
Yr/Yr

Outlook

AnnualYr/Yr

FY2016/3Outlook

FY2016/3

Yr/Yr

Net Sales

42,32541,941100.9%

34,47433,137104.0%

76,80075,078102.3%

Operating Income

5,684

5,354

106.2%

1,715

1,239

138.4%

7,400

6,594

112.2%

Ordinary Income

6,027

5,812

103.7%

1,872

1,602

116.8%

7,900

7,415

106.5%Net Income Attributable to
Owners of Parent

4,037

6,015

67.1%

962

367

261.6%

5,000

6,383

78.3%

Second Half year of FYE March 2017 : Forecasts, issues and actions
Factors in the second half of the year

Challenges

SalesJapan

Steady buildup of the market by using marketing costs
efficiently to achieve cost effectivenessIndonesia

Active use of marketing costs for the strengthening ofPIXY, our core cosmetics brand for womenのOthers

Continued use of marketing costs proactively to further
accelerate growth in each country－) A decline in yen equivalent due to weakening local
currencies－) Fiercer competition in the Japanese face care market－) A decline in export sales due to the worsening market
conditions in Indonesiaʼs export destination markets＋) Rebound from decreased profit due to the factory fire inIndonesiaProfit－) A rise in marketing costs outside Japan10