BusinessResults
Briefing(Fiscal Year Ending March 31,2016)

April 1,2015-September 30,2015

Mandom Corporation(Securities Code: 4917)

Contents

1. Consolidated Interim Business Results
2. Consolidated Net Sales
3. Consolidated Income
4. Summary of Our Strategic Business5. Forecast of Consolidated Business Resultsfor FY2016/3

1. Consolidated Interim Business Results(Unit:Mln Yen)
1Q+2Q
FY2016/3 FY2015/3

Balance

Yr/Yr

Yr/Yr※

Achiev.

Net Sales

41,941

38,452

3,488

109.1%

105.6%

100.2%

Operating Income

5,354

5,240

113

102.2%－102.0%Ordinary Income

5,812

5,577234

104.2%－110.7%Net Income Attributable to Owners of Parent

6,015

3,386

2,628

177.6%－103.7%※ Comparison with FY 2015/3 rate after adjustment.

12. Consolidated Net Sales
2-1. Net Sales by Region(Unit:Mln Yen)
1Q+2Q
FY2016/3 FY2015/3

Net Sales

Balance

41,941

38,452

3,488

109.1%

Japan

25,47923,854

1,625

106.8%

Indonesia

9,808

8,432

1,375

116.3%

Others

6,652

6,165

487

107.9%

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

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

ASIA
39.2％

3,488

Consolidated

15.8％

16.0％
Japan

1,625
21.9％

23.4％

62.0％

60.8％

1,375

Indonesia

OthersYr/Yr487

JapanFY2015/3
InterimIndonesia
Others

FY2016/3
Interim2

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

(Unit:Mln Yen)
1Q+2Q

FY2016/3 FY2015/3
Net Sales

Balance

Yr/Yr

41,941

38,452

3,488

109.1%

27,181

26,145

1,036

104.0%

22,678

22,107571

102.6%

Women's Cosmetics Business

5,362

4,170

1,191

128.6%

Women's Cosmetry Business

4,792

4,133

658

115.9%

Other Business

4,605

4,002602

115.0%

Men's Grooming Business
Gatsby(Unit:Mln Yen)Menʼs Grooming Business
FY2016/3
Interim Results
Total

GatsbyGrowthRate

27,181
22,678LucidoJapan

Asia

Womenʼs Cosmetics Business
FY2016/3
Interim Results

5,362

Womenʼs Cosmetry Business
FY2016/3
Interim Results

GrowthRate+28.6％

Total

+4.0％

Total+2.6％

MandomBeautyLucido-L

PixyPucelle
Japan

Asia

4,792

Japan

GrowthRate+15.9％Asia

3

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

FY2016/3
ResultFY2015/3

per SalesResultper Sales

Balance

Yr/YrOperating Income

5,354

12.8%

5,240

13.6%

113

102.2%

Japan

4,177

16.4%

3,639

15.3%

537

114.8%

Indonesia

377

3.8%

540

6.4%

▲ 163

69.8%

Others

800

12.0%

1,060

17.2%

▲ 260

75.4%

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

Consolidated

113

3-3. Operating Income by Region Ratio(Year-on-Year)
ASIA
22.0％

ASIA
30.5％

15.0％

20.2％

Japan

537

7.0％
10.3％

Indonesia▲163

Others

▲260

69.4％

78.0％

Japan

FY2015/3
InterimIndonesia
Others

FY2016/3
Interim4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

747

Japan
Indonesia

3,374 1,539

Others

71
957
1,876

1,087

847

1,019

626
287

479

135

105

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

Indonesia

50294

OthersCost of Goods

45.2％ 44.5％

23.2％ 22.6％
18.8％ 19.3％

38.3％ 40.1％

40.4％ 39.6％
62.6％ 61.5％
21.2％ 22.3％
22.0％ 22.9％

12.8％ 13.6％

16.4％ 15.3％

FY2016/3 FY2015/3
Interim Interim

FY2016/3 FY2015/3
Interim Interim

Admin. Cost

36.7％ 29.5％
19.0％ 18.7％
14.5％ 13.4％
3.8％

6.4％

FY2016/3 FY2015/3
InterimInterimSelling Expenses

13.0％

Operating Income

13.2％

12.0％ 17.2％
FY2016/3 FY2015/3
Interim Interim53. Consolidated Income
3-6. Ordinary Income and Net Income Attributable to Owners of Parent(Unit:Mln Yen)

1Q+2Q
FY2016/3
ResultNon-operating Income/Loss

FY2015/3

per Sales

Resultper Sales

Balance

Yr/Yr

457

1.1%

336

0.9%

120

135.9%

5,812

13.9%

5,577

14.5%

234

104.2%

3,872

9.2%

▲5▲0.0%3,878 ▲64565.8%

9,684

23.1%

5,571

14.5%

4,112

173.8%

Income Taxes and Minority Interests

1,837

4.4%

1,879

4.9%

▲ 4297.8%

Net Income

7,847

18.7%

3,692

9.6%

4,155

212.5%Net Income Attributable to Non-controlling interests

1,832

4.4%

305

0.8%

1,526

599.4%

6,015

14.3%

3,386

8.8%

2,628

177.6%

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

Net Income Attributable to Owners of Parent

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

457
Others

Non-Operating
Income492

Interest received/dividend

Non-Operating Others
Expenses35

Equity in net income of affiliates
Sales discount

Extraordinary
Profit/Loss
Extraordinary
Profit(Unit:Mln Yen)

3,872
Profiton disposalof fixed assets

4,158

Transfer expenses

Extraordinary
Loss286

Loss on sale anddisposal of fixed assets

6

4. Business Summary
Japan

Composition of sales by segment*Market data calculated by Mandom

Men’s Grooming Business【Hair Styling】

Hair Jam, developed to meet the demands for a non-sticky
and airy texture from teenage boys, showed steady performancein the men’s hair styling market.
A new product “Styling Grease” was launched
to meet the demands for trendy styles”Styling Grease”
with luster and a settled finish.
A new product to meet theMen’s hair styling productdemands for neo classical hairmarket trends (Apr. to Sept.)*■ Mandom holds a 63.1% sharein the men’s hair styling market

Women’s Cosmetics Business
Bifesta brand has been enjoying
strong sales. Product portfolio wasexpanded by launching in-bath type“tsuru-ochi” series.
Sales of Barrier Repair Face MaskIncreased approximately fivefold fromlast year thanks to an increased
demand from foreign tourists toJapan.

【Face and body】
While sales of facial paper were stagnant due tounsettled weather early in the season, body paper sales
showed steady growth.
Besides, a new product“Mild Body Paper” suitable Men’s summer season product market
trends (Apr. to Sept.)*
for use infall and winter was launched,
to boost demandthroughout the year.

Lucido brand generally remained strong. The odor careseries was updated targeting men aged over 40.
A new commercial is being aired since September.

Women’s Cosmetry Business
Lucido-L’s treatment items are enjoying
strong performance. The oil treatment
series, in particular, ranked No. 1
on the @cosme, a website that hosts
user-generated reviews.

Barrier Repair Sheet Mask

Sales of Mandom’s Disney Series body
sheet remained strong. Dear Flora Oil inBody Cream was newly releasedin August.

Oil treatment series7

4. Business Summary
Indonesia

Composition of sales by segment

Men’s Grooming Business【Face & body】【Hair Styling】
Water Gloss and Wax, which aremajor items of the brand, recorded
Styling
Pomadeスタイリングポマード
more than two-digit increase from theprevious year.
Sales of Styling Pomade, released last year,
in particular, climbed sharply as it met
new styling needs.

Women’s Cosmetics Business

While decorative (makeup) series fared well,sales of the Two Way Cake, the main product,
were sluggish affected bystrong sales of thecompetitors’ products.
In the second half,
Implement new promotional
campaign and air a new TVcommercial to improve
competitiveness andreinforce sales of theTwo Way Cake.
PIXY makeup seminar

Sales of both face and body care items grew steadily.
Urban Cologne in the body care category
has been recording strong sales from the previous
year into the current year.

Urban Cologne Series

Women’s Cosmetry Business
Amid intense market competition,
the new “Pink Me” series isreceiving high evaluation.
Continued success is expected.

“Pink Me” series in-store event

New products will be launched early inthe second half to boost sales.

84. Business Summary
Other markets

Composition of sales by segment

China

Sales of Gatsby Hair Styling and Body Caregrew steadily.
Bifesta is also faring very well.
It is currently marketed only in coastal
areas including Shanghai.
With the aim of expanding marketing nationwide,
step up in-store promotion using promotion tools,
multi-faceted display in stores and enhancing
training for marketing people in order to accumulatemarketing know-how.

ThailandMandom China’s
web advertisement
In-store promotion of Bifesta
Produce a TV commercial of Gatsby Moving
Rubber featuring Mario, a popular TV
personality in Thailand as the brandAmbassador to make the brand widely
known in the local market.
To cope with intensified market competitionin the local market, implement more in-store
promotion campaign of Bifesta.

Indochina

Established Mandom Vietnam Company Limited in January 2015, the 12th foreign subsidiaryof Mandom Group.
Vietnam is the most prospective market in the Indochina area.
The company will be fully operational by the end of this year.

95. Outlook of Consolidated Financial Results for the Fiscal Year Ending March 2016

Factors of the downward revision of the outlook for the 2nd half and challenges for the term
Factors in the second half of the yearSales - ) Decline in sales due to a fire accident at Mandom
Indonesia- ) Decline in sales due to the deterioration of the market
environment in Indonesia

Challenges
Japan

Effective and efficient use of marketing budget toconsolidate our market position

Indonesia

Intensive marketing to reinforce PIXY, women’s
cosmetic brand

Other markets

Continue active marketing with the aim ofaccelerating growth in respective countries- ) Decline in the yen equivalent due to the weakIndonesian rupiahProfit - ) Fall in profits as a result of a decline in revenues inbusiness in Indonesia- ) Rising costs as a result of a decline in the production
volume in Indonesia- ) Registration of an extraordinarily loss associated withthe fire accident in Indonesia (approx. 1.5 billion yen)10