Business Results Briefing(Fiscal Year Ending March 31, 2012)
April 1, 2011 - March 31, 2012

Mandom Corporation(Securities Code: 4917)

Contents

Business Results Briefing FY2012/3

1. Consolidated Business Results
2. Consolidated Net Sales
3. Consolidated Incomes
4. Summary of Our Strategic Business5. Progress of MP-10 (The 10th Three-year Middle-Range Planning)
6. Forecast of Consolidated Business Results for
FY2013/3◆Appendix

1. Consolidated Business Results (April 1, 2011 – March 31, 2012)

Business Results Briefing FY2012/3（( Unit:Mln Yen）)
Annual ResultS
FY2012/3

FY2011/3Net Sales

59,801

57,262

Operating Income

6,050

Ordinary Income
Net Income

Yr/Yr

Yr/Yr ※1Achiev. ※2

2,538

104.4%

106.5%

98.8%

5,747

303

105.3%－96.8%

6,308

6,006

301

105.0%－97.8%

3,299

2,672

626

123.4%－96.5%

ROE

7.7%

6.4%

EPS

¥141.11¥114.30

Payout Ratio

42.5%

52.5%

Balance※1 Comparison with FY 2011/3 rate after adjustment※2 Revised plan announced on July 29■The highest sales were attained.
12. Consolidated Net Sales

Business Results Briefing FY2012/3

2-1. Net Sales by Region

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

Annual ResultS
FY2012/3

FY2011/3

59,801

57,262

2,538

104.4%

JAPAN

38,94037,495

1,445

103.9%INDONESIA

13,457

12,944513

104.0%OTHERS

7,403

6,823

579

108.5%Net Sales

Balance

Yr/YrConsolidated

2,538

Japan

1,445

Indonesia

513

Others579

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

ASIA
34.5%

ASIA
34.9%

11.9%

12.4%

Indonesia
Others

22.5%

22.6%
65.5%

FY2011/3

65.1%

FY2012/322. Consolidated Net SalesBusiness Results Briefing FY2012/3

2-4. Net Sales by Strategic Business Unit

(Unit:Mln Yen)
Annual Results
FY2012/3

FY2011/3

59,801

57,262

2,538

104.4%

Men's Grooming Business

41,58639,3892,197

105.6%

Gatsby34,80332,311

2,491

107.7%

Women's Cosmetics Business

6,312

5,398

913

116.9%

Women's Cosmetry Business

5,378

5,805

▲ 427

92.6%

Other Business

6,524

6,669

▲ 145

97.8%

Net SalesBalance

Yr/Yr(Unit: Mln Yen)
Men’s Grooming BusinessGrowthRate

FY2012/3 Results

41,586Total
Gatsby34,803

LucidoJapan

Women’s Cosmetics Business

Asia

GrowthRate

FY2012/3 Results+16.9%

Women’s Cosmetry Business

+5.6%

Total

+7.7%

MandomBeautyLucido-L

PixyPucelle

6,312

Japan

Asia

GrowthRate

FY2012/3 Results
Total

5,378

Japan

-7.4%

Asia

33. Consolidated Income

Business Results Briefing FY2012/3

3-1. Operating Income by Region（ Unit:Mln Yen）

3-2. Operating Income

Annual ResultS
FY2012/3

FY2011/3

Balance(Unit: Mln Yen)Yr/YrResultSper Sales

ResultSper Sales

6,050

10.1%

5,747

10.0%

303

105.3%

JAPAN3,805

9.8%

3,646

9.7%

158

104.4%INDONESIA

1,432

10.6%

1,315

10.2%

116

108.9%OTHERS

812

11.0%

785

11.5%

27103.5%

Operating Incomeby Region Analysis(Year-on-Year)

303

Consolidated
Japan

158
116

Indonesia

Others3-3. Operating Income by Region Ratio (Year-on-Year)
ASIA
36.6%

ASIA
37.1%

13.7%
22.9%

13.4%

27JapanIndonesia

23.7%

Others63.4%

FY2011/3

62.9%

FY2012/3

4

3. Consolidated Income

Business Results Briefing FY2012/3

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

Cost of Goods(Unit: Mln Yen)

Selling Expenses

Admin. Cost

ConsolidatedJapan552

Indonesia

396402
303

2,235
1,286

1,541834

Others102592101

500▲10(Indonesia)46(Others)
103(Indonesia)▲ 48(Japan)
Cost of Goods

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

Selling Expenses

ConsolidatedJapan

Indonesia

OthersAdmin. Cost
Operating Cost
Total

45.8% 45.2%
21.6% 21.5%

40.5% 39.9%
22.0% 21.5%

22.5% 23.3%
10.1% 10.0%

27.7% 28.9%
9.8% 9.7%

FY2012/3 FY2011/3

FY2012/3 FY2011/3

61.8%

62.0% 44.7%

42.6%

16.0%

16.7% 29.5%

30.5%

11.5%
10.6%

11.2% 14.8%10.2% 11.0%

15.4%
11.5%

FY2012/3 FY2011/3

FY2012/3 FY2011/353. Consolidated Income

3-6. Ordinary Income and Net Income by Region（( Unit:Mln Yen）)
Annual ResultS

FY2012/3

FY2011/3

257

0.4%

259

0.5%

▲199.3%

6,308

10.5%

6,006

10.5%

301

105.0%

▲ 188

▲0.3%

▲ 193

▲0.3%

497.6%

Income before Income Taxes and Minority Interests

6,119

10.2%

5,813

10.2%

306

105.3%

Income Taxes and Minority Interests

2,354

3.9%

2,635

4.6%

▲ 281

89.3%

4650.8%504

0.9%▲ 3992.2%

3,299

5.5%

2,672

4.7%

626

123.4%

Ordinary Income
Extraordinary Profit/loss

Minority Interests in Net Income
Net Income

per Sales

Yr/Yrper Sales

Non-operating Income/Loss

ResultSBalance

Result S

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

Extraordinary
Profit/Loss

257
Interest received/dividend(Unit: Mln Yen)

Others410

ExtraordinaryProfit▲188
Profit on saleof fixed assets
OthersOthers152

Foreign exchange loss

Extraordinary
Loss269

Reversal of provision forcasualty loss

80
Loss on sale /Loss on disposalof fixed assets
Loss on sale ofinvestment securities

64. Summary of Our Strategic BusinessBusiness Results Briefing FY2012/3

Men’s grooming business targets and results

Men’s Grooming Businessgrowth p.a.
Growth rate (MP Plan rate equivalent) Averaget

Core business: Promote its stable
growth while maintaining andexpanding category share in the men’s
grooming market

3.2%

5.6%(6.1%)

Gatsby sales targets and results
Growth rate (MP Planrate equivalent)JAPANFinal FY of MP-10

FY2011/3 FY2012/3

ASIA・Indonesia: reinforcementof Hairstyling Category withproduct line-up expansion
to respond to diverse
consumer wants.

Actor Shota Matsuda as new personality
Suggesting up-to-the-minute coolness[Hair Styling]

Vantage display
positions atregular shelf[Face & Body care]・ Developed Summer products
corresponding to the raised
skincare consciousness.
Reinforced expansion of
in-store promotion early
before summer

Added the cool type

3.6%

7.7%(8.3%)

グラフ
FY2011/3 FY2012/3

・Despite the hair styling product market’s
diminishing tendency, Moving Rubber
Series steadily expanded share, thanks to
Reinforced in-store promotion of basicline.

Average growth p.a.

Men’s Hair Styling Market
Share Trends
Year on year:
point UP

1.6Others

OthersFinal FY of MP-10

Launched Moving Rubber
to respond to diverse
consumer wants.

TV CM of Water Gloss

Face&Body Category: Market share
expansion through Face Wash Series
renewal and reinforced promotion.
In-store promotion of Face Wash series

Brand U

Brand UFY2011/3

FY2012/3

・In other countries: further market exploration and share
expansion through reinforced Hairstyling category lineup expansion
and reinforced Skin Care category sales promotion

Face & Body care Market
Share Trends
Year on year:Others

FY2011/3

3.1point UP

Market Growth+4.2％
GB Growth+13.8％

Others

FY2012/3※Mandom market date; in monetary Value[Anti-aging care]
・Proposing anti-aging care to middle-aged men via
ad campaigns using target-specific media, andcontinued and reinforced campaign to establish
Lucido as “the” brand for anti-aging care

Handy phone application“KAGAMIDDLE”

7

4. Summary of Our Strategic Business
Women’s Cosmetics Businesstargets and results
Growth rate (MP Plan Average growth p.a.
19.3%
rate equivalent)

Women’s Cosmetics Business
Reinforced product development
and promotion with focus on
individual market needs,
particularly on skin care

16.9%(18.6%)

Business Results Briefing FY2012/3

Overseas Business
Explore Asian markets through vigorous campaigns in priority
areas (Indonesia, China), aiming to enhance Group growth potential
Overseas Business :targets and achievements

Growth rate (MP Plan
Rate equivalent)
FY2011/3 FY2012/3

Final FY of MP-10

Ratio of Overseas Sales to Net Sales(1st -year)

Average growth p.a.

9.4%

Overseas

Final FY of MP-10

In：FY2011/3
Out：FY2012/3

5.5%(7.6%)

JAPANFY2011/3 FY2012/3

・Wider recognition and market development ofCleansing water through reinforced promotion withlimited sale of Bifesta and TV ads

ASIAJapan

Priority areas

Limited-edition productin collaboration with Disney

・Simultaneous launch/promotion of Bifesta in 7 countries/areas
including Hong Kong
As in Japan, focus on product recognition and market
development by appealing virtues of cleansing water・Promotional events in China, to further boost
Barrier Moist product recognition
Brand PR event (Shanghai)[INDONESIA]

・Product line expansion/improvement and distribution arrangement inresponse to changes in market environment accompanying modern
market expansion and consumer wants[CHINA]・Greater moves for exploration: distribution network expansion anddeployment of new channels
・Double reinforcement of Men’s Grooming and Women’s Cosmetic
segments for accelerated business expansion

INDOCHINA・Expansion of distribution networks in collaboration with local agencies
in Myanmar and Vietnam.

・Brand renewal and product line reinforcement withnew item introduction in Skin Care category
Reinforced sales promotion with TVads and promotional events to expand
TV ad for Skin Care category reinforcement
market share

INDIA・In March 2012, Mandam India was established to prepare for full-scale
development in India
In October 2011, massive flooding in Thailand caused much damage;
however, normal operations were quickly resumed, following rapid
local emergency responses.

85. Progress of MP-10 (The 10th Three-year Middle-Range Planning)
MP-10 Year 1 progress
Surpassing the initial plan

Growth Potential
Year 1 consolidated sales: up 4.4％
(Year 1 projection: up 2.2%)■ ActionsMP-10 themes put into motion generally as/better than projected＋) Continued overseas business reinforcement on local currency basis＋) Stable growth of Men’s Grooming, core business±) Reinforced development of Women’s Cosmetics■ External factors＋) Impact of power-saving in Japan－) Sluggish Men’s Hair Styling market in Japan－) Yen stronger vis-à-vis other Asian currencies

Business Results Briefing FY2012/3

MP-10 Actions in Year 2 and beyond
Continued investment for growth

Growth Potential
Growth as projected in initial plan on localcurrency basis (lower than projected on Yenbasis due to exchange rate influence)

Net Sales
Initial plan

■ Action
Further promotion of MP-10 themes■ External factors
・ Yen stronger than projected in initial plan・ Sluggish Men’s Hair Styling market in Japan

Year 1 consolidated operating income: up 5.3％
(Year 1 projection: down 3.4%)
Consolidated operating income rate: 10.1％(Final year projection: 10% or above)■ Actions＋) Increased profits/profit rate following increased income＋) Continued sales cost streamlining and GA cost review－) Increased domestic COGS due to increased returns■ External factors＋) Lower raw material price due to stronger local currency
in Indonesia－) Stronger than expected Yen vis-à-vis other Asian currencies

Shareholder Returns
Year 1 consolidated dividend payout ratio: 42.5％(Continuation target: 40% or above)

Profitability
Work on attaining target operating incomerate, despite concentrated overseas investment,
through actions aimed at reducing COGS rate

66,00059,801
57,26258,50012/3(Time line)

13/3

14/3

(Projection) (Projection)

Operating Income (Unit: Mln yen)
Initial plan

■ Actions・ Actions to reduce COGS rate・ Further investment in marketing for overseasbusiness■ External factors
・ Raw material prices remaining high・ Yen stronger than projected in initial plan

Result/Outlook

63,500

11/3

Profitability(Unit: Mln yen)

Result/Outlook

6,350

6,600

6,050
5,747
(Time line)

5,550

11/3

12/3

13/3

14/3

(Projection)(Projection)

Shareholder Returns
Attaining continuation target

96. Forecast of Consolidated Business Results for FY2013/3

Business Results Briefing FY2012/3

6-1. Premises for Planning of Consolidated Outlook FY 2013/3
Assumptions for Increased Sales

Assumptions for Increased Profit+ Stable growth of Men’s Grooming led by Gatsby’s growth+ Continued reinforcement of Women’s Cosmetics+ Rapid growth of overseas business as growth engine+ India to be newly integrated into consolidated accounting－ Drop in overseas sales due to exchange rate influence+ Actions for reducing COGS rate on non-consolidated basis－ Increased overseas COGS rate due to exchange rate influence－ Continued investment in overseas marketing－ India to be newly integrated into consolidated accounting

6-2. Consolidated Outlook for FY2013/3(（ Unit:Mln Yen）)
FY2013/3

FY2012/3

AnnualInitial Plan

Balance

1Q+2Q
Yr/Yr

Initial Plan

BalanceResults
Yr/Yr

Annual

1Q+2Q

Net Sales

63,5003,698

106.2%

35,600

1,629

105%

59,801

33,970Operating Income

6,350

299

105.0%

5,000

111

102.3%

6,050

4,888

Ordinary Income

6,550

241

103.8%

5,100

21100.4%

6,308

5,078

Net Income

3,500

200

106.1%

2,800

57

102.1%

3,299

2,74210

6. Forecast of Consolidated Business Results for FY2013/3

Business Results Briefing FY2012/3

6-3. FY 2013/3 Outlook of Main Expenses: Breakdown of Increase/Decrease over FY 2012/3
Sales

3,698

Net Sales

Cost-to-sales
Ratio

+0.2％

Increase in Japan and overseas despite exchange rate influence[Japan] Continued reinforcement of Gatsby Face & Body category branddevelopment and reinforcement in Women’s Cosmetics centering
on Bifesta[Asia] Reinforcement according to Gatsby business developments in respective
countries
Continued reinforcement of Women’s Cosmetics(reinforced promotion of Bifesta in Asia)
Increased income from business in India, newly integrated into consolidated
accounting

Cost-to-Sales Ratio

1,586SGAOperating
Income299

COGS rate increase controlled through efforts for cost reduction in Japan[Japan] Correct factors for increased COGS rate in previous term, ie. increase
domestic production ratio of paper materials and decrease ratio ofreturned goods; other actions to reduce COGS
[Asia] Increased COGS rate due to exchange rate influence and raw
material prices remaining highSales and Administrative Expenses
Ordinary
Income241Net
Income200

Increased investment in marketing for growth in Japan and overseas[Japan] Efficient investment in marketing in promising categories while
focusing in sales promotional expenses in order to expand contact
with customers[Asia] Continued active investment for future growth mainly in “other”
countriesNon-Operating I/E, Extraordinary P/LNo major changes in given assumptions at present11