BusinessResults
Briefing（Fiscal Year Ending March 31,2013)

April 1,2012-March 31,2013

Mandom Corporation（Securities Code: 4917）

2013年3月期

Contents
1. Consolidated Business Results
2. Consolidated Net Sales
3. Consolidated Incomes
4. Summary of Our Strategic Business5. Progress of MP-10(the 10 th Three-year Middle-Range Planning)
6. Forecast of Consolidated Business Results forFY2014/3

決算説明会

1. Consolidated Business Results(Unit:Mln Yen)
Annual Results
FY2013/3 FY2012/3 Balance

※2

※1

Yr/Yr

Yr/Yr

Achiev.

Net Sales

60,42759,801625

101.0%

102.4%

100.7%

Operating Income

5,947

6,050

▲ 10298.3%－106.2%

Ordinary Income

6,241

6,308

▲ 6698.9%－107.6%Net Income

3,607

3,299308

109.3%－106.1%

ROE

8.0%

7.7%

EPS

¥154.29¥141.11

40.2%

42.5%

Payout Ratio※1 Comparison with FY 2012/3 rate after adjustment※2 Revised plan announced on October 29■ Net Sales and Net Income were updated to the highest.

12. Consolidated Net Sales
2-1. Net Sales by Region(Unit:Mln Yen)
Annual
FY2013/3FY2012/3 Balance

Net Sales

Yr/Yr60,42759,801625

101.0%

Japan38,208

38,940▲ 732

98.1%

Indonesia

13,51013,45753

100.4%

Others

8,708

7,403

1,305

117.6%

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

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

625

Consolidated
Japan

Others

ASIA
34.9%

53
1,305

Indonesia

ASIA
36.8%

12.4%

▲732

Indonesia

Japan

22.5%

Others

14.4%
22.4%

65.1%
FY2012/3

63.2%
FY2013/322. Consolidated Net Sales
2-4. Net Sales by Strategic Business Unit

(Unit:Mln Yen)
Annual Results

FY2013/3 FY2012/3 Balance
Net Sales

Yr/Yr60,42759,801625101.0%

41,504

41,586

▲ 82

99.8%

34,87634,80373

100.2%

Women's Cosmetics Business

6,706

6,312

394

106.2%

Women's Cosmetry Business

5,781

5,378

402

107.5%

Other Business

6,435

6,524

▲ 8898.6%

Men's Grooming Business
Gatsby(Unit:Mln Yen)
Men’s Grooming Business
FY2012/3 Results

41,504

Total
Gatsby34,876

LucidoJapan

Asia

Women’s Cosmetics Business

GrowthRate

FY2012/3 Results

6,706

Women’s Cosmetry Business

GrowthRate

FY2012/3 Results

GrowthRate

5,781

+7.5%

-0.2%

Total+0.2%

MandomBeauty

Lucido-LPixyPucelleJapan+6.2%

Asia

TotalJapan

Asia

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

FY2013/3
ResultFY2012/3

per Sales

Resultper Sales

Balance

Yr/YrOperating Income

5,947

9.8%

6,050

10.1%

▲ 102

98.3%

Japan

3,921

10.3%

3,805

9.8%

116

103.0%

Indonesia

1,117

8.3%

1,432

10.6%

▲ 314

78.1%

Others

908

10.4%

812

11.0%

95

111.8%

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 ▲102JapanIndonesia
Others

ASIA
34.1%

ASIA
37.1%
116

13.4%

95

Others

15.3%
18.8%

23.7%

▲314

Indonesia

62.9%
FY2012/3

65.9%
FY2013/343. Consolidated Incomes
3-4. Operating Cost Analysis (Year-on-Year)
Operating Cost Total

Cost of Goods

Selling Expenses(Unit:Mln Yen)
Consolidated

Admin. Cost

Japan
Indonesia
Others16(Indonesia）

1,209
728

367

158

758
▲615

▲848

341

462

290
▲170109(Others)
60(Indonesia）

106▲ 63(Japan)

Cost of Goods

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

Selling Expenses
Admin. Cost
Operating Incomes

Consolidated45.6%

45.8%

22.1%

21.6%

22.4%

22.5%

9.8% 10.1%
FY2013/3 FY2012/3Japan

39.7%

40.5%

22.0%

22.0%

28.1%
10.3%

27.7%

9.8%
FY2013/3 FY2012/3Indonesia

61.7%

61.8%

18.1%

16.0%

11.9% 11.5%
10.6%
8.3%
FY2013/3 FY2012/3

Others

46.7%

44.7%

29.0%

29.5%

13.8%

14.8%

10.4%

11.0%

FY2013/3 FY2012/353. Consolidated Incomes
3-6. Ordinary Income and Net Income by Region(Unit:Mln Yen)

Annual Results
FY2013/3Result
Non-operating Income/LossOrdinary Income

Income Taxes and Minority Interests

Resultper Sales

BalanceYr/Yr

0.5%

257

0.4%

36

114.0%

6,241

10.3%

6,308

10.5%

▲ 66

98.9%

310.1%

▲ 188

▲0.3%

220 ▲16.4%

6,272

10.4%

6,119

10.2%

153

102.5%

2,175

3.6%

2,354

3.9%

▲ 179

92.4%

490

0.8%

465

0.8%

24105.3%

3,607

6.0%

3,299

5.5%

308

109.3%

Minority Interests in Net Income
Net Income

per Sales

293

Extraordinary Profit/loss
Income before Income Taxes and Minority Interests

FY2012/3

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

Non-Operating
IncomeNon-Operating
Expenses

Extraordinary
Profit/Loss293

Others122

Others416

Foreign exchange loss

Extraordinary
ProfitExtraordinary
Loss

31

OthersProfit on sale/Profit on disposalof fixed assets

52
21

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

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

Men’s Grooming Business[Face & Body Care]

Total renewal of “Face Care Series” in fiercelycompetitive skin care segment for a largeincrease in face wash market share[Hair Styling]

Facial Wash Category Share Trends(March 25 week) *excluding CVS

Hair styling market share expanded throughreinforcement of the major item “Moving Rubber”

OthersMen’s Hair Styling Market Share Trends

OthersGatsbyOthers

MarketGrowth-5.1％

Gatsby Gatsby Share

37.5％

39.2％

FY2012/3

FY2013/3

Growth+1.7Ｐ

Women’s Cosmetics BusinessContinued brand promotion, including
new “Bifesta” ad and campaign
for greater recognition of water
based cleansing lotion, andproduct line expansion
Product line expandedwith new products

BrandB

Face Care Series
showing positiveperformance

OthersBrandA

BrandB

Gatsby2012/3

GatsbyShareGrowth+2.5Ｐ

BrandA

Gatsby2013/3

Continued reinforcement in body care category withhigh growth potential, including “Bio Core Series”
renewal and new ad for “Body Paper Series”

Women’s Cosmetry Business
Product line expansion with new items
added to Body Care Category
showing favorable performance

New fragrance added to well-received
Body Paper Series,
and launch of new Body Water7

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

Men’s Grooming Business[Hair Styling]

Hair Styling category reinforced
with total renewal of the major
item “Water Gloss”

Total renewal of “Water Gloss”

Women’s Cosmetics Business

Reinforcement of product power and brandimage with total renewal ofthe major item“Two-way Cake”
Reinforced promotion of “Two-wayCake” concurrently with its total renewal[Face & Body Care]

Product line expansion with launch of
new fragrance series, in response
to customer s’ higher style &Grooming consciousness

New fragrance series, Urban Cologne

Women’s Cosmetry Business
Brand expansion with new products addedin the new “Glazelle” series
New series “Glazelle”
targeting Mainly
women in their 20s

New business endeavors commenced for greater business scale
Launch of children’s products
featuring popular characters

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

China

Indochina

India

Hair Styling Category:
Expand development areas and channels
Men’s Face & Body Category and Women’s Skin Care Category:
Select suitable channels for each category mainly in urban areas
for concentrated development
Expansion from Thailand to Myanmar, Vietnam and Cambodia
Collaboration with local agents for market exploration anddistribution network building
Reinforced marketing in collaboration with local partner,with Mandam India in full-scale operation since July 2012,
for distribution network expansion in Indian market and productestablishment in local market

Plant Investment
Plant investment to increase output capacity and perfect a solid supply systemthat maximizes group synergy, with en eye to greater development and expansion in Asia
・ Japan: Fukuzaki Plant
Approx. 3.5 billion yen
Completion Dec.2013(scheduled)

・ Indonesia: New Cibitung Head Office Plant
Approx. 3.7 billion yenCompletion Dec. 2014
(scheduled)
New Cibitung Head Office Plant
Artist’s sketch94. Summary of Our Strategic Business
Men’s Grooming Business

Men’s grooming business targets and resultsCore business: Promote its stable growth
while maintaining and expanding category
share in the men’s grooming market

Gatsby sales targets and results

Average growth p.a.

Growth rate

3.2%

(MP Plan rate equivalent)

2.6%(3.3%)

Average growth p.a.

Growth rate

(MP Plan rate equivalent)

3.6%

MP-9
FY2011/3 FY2012/3

Final FY
MP-10
FY2013/3 of MP-10

3.9%(4.5%)

Year 2 status:
Progress roughly as projected, led byoverseas business
Final Year prospects:
Target achievement expected

Women’s Cosmetics Business
Reinforced product envelopment andpromotion with focus on individual market
needs, particularly on skin care

MP-9
FY2011/3

FY2012/3

MP-10
FY2013/3

Final FYof MP-10

Women’s Cosmetics Businesstargets and results

Average growth p.a.

Growth rate

19.3%

(MP Plan rate equivalent)

11.5%(14.0%)

Year 2 status:
Targets not achieved (Japan and overseas)
Final Year prospects:
Targets achievement unlikely(with initially projected Final Year
growth rate target attained)

MP-9
FY2011/3

Overseas Business
Explore Asian markets throughvigorous campaigns in priority areas(Indonesia, China), aiming to enhancegroup growth potential

FY2012/3

MP-10
FY2013/3

Final FYof MP-10

Overseas Businesstargets and results

Growth rate

(MP Plan Rate equivalent)

Ratio of Overseas Sales to Net Sales(2nd -year)

Average growth p.a.

6.0%(8.8%)

9.4%

Year 2 status:
Targets not achieved due to exchange
rate influence, but plan-surpassing progresson local currency basis
Final Year prospects:
Target achievement expected

ASIA

36.8％
34.9％

MP-9
FY2011/3

FY2012/3

MP-10
FY2013/3

Final FYof MP-10

In：FY2012/3
Out：FY2013/3

10

5. Progress of MP-10(the 10 th Three-year Middle-Range Planning)
MP-10 Year 2 Status

MP-10 Final Year Prospects

Slight downward turn from initial plan

Work toward achieving initial targets

Growth target not achieved due to Japan businesstargets not achieved and exchange rate influence,
resulting in non-achievement of profitability target

Focus efforts on MP-10 themes to achieve
initial plan targets

Growth PotentialNon-achievement of initial plan Year 2 target
due to Japan business targets non achieved
and exchange rate influence

Consolidated sales
MP-10 Final Year target: 66 billion yen

Year 2 sales: 60.4 billion yen

Profitability
Non-achievement due to sales target
Non-achievement and lower profitability

Consolidated profitability
MP-10 Final Year target: 10％ or higher

Year 2 profitability: 9.8%

Achieve initial plan Final Year target byfurther promoting 3 business categories

66,50059,801

66,00057,26258,50060,427

Consolidated sales

Target achievement expected

Final Year target:

66.5 billion yen

Profitability

Ensure target profitability by higher cost
efficiency, despite vigorous marketinginvestment in overseas and other categories

11/3

Final Year target: 10％

Consolidated dividend payout rate
MP-10 target (3 consecutive years):
40% or higher

Consolidated dividend payout rate

12/3

13/3

Operating Income―― Initial plan――Result/Outlook

Consolidated operating profitability
Target achievement expected

Shareholder Returns

Year 2 payout rate: 40.2％(Unit：Mln Yen）――Initial plan――Result/Outlook

Growth Potential

Shareholder Returns

Increased following highest profits

Net Sales(Unit：Mln Yen）
6,650
6,600

6,050
5,747

14/3 term(projected)

5,947
5,550

Attain continuation target

Continuation target 40% orhigher maintained

11/3

12/3

13/3

14/3term(projected)

11

6. Forecast of Consolidated Business Results for FY2014/3
6-1. Premises for Planning of Consolidated Outlook FY 2014/3
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
Rise in overseas sales due to exchange rate influence+ Increased profit resulting from increased sales+ Increased yen-quoted overseas profit due to exchange
rate influence (weaker yen)
－ Higher cost-to-sales ratio resulting from grater part ofoverseas business with higher c-to-s (c-to-s ratio itself
decreased in Japan and overseas)－ Continued marketing investment in overseas business(especially “overseas and others” category)

6-2. Consolidated Outlook for FY2014/3(Unit:Mln Yen)FY2014/4
AnnualInitial PlanBalance

FY2013/3
1Q+2QYr/Yr

Initial Plan

BalanceResults
Yr/Yr

Annual

1Q+2Q

Net Sales

66,5006,072

110.1%

36,4002,548

107.5%

60,42733,851

Operating Income

6,650

702

111.8%

4,760

20

100.4%

5,947

4,739

Ordinary Income

6,860

618

109.9%

4,850

▲66

98.6%

6,241

4,916

Net Income

3,800

192

105.3%

2,720

▲329

89.2%

3,607

3,049

12

6. Forecast of Consolidated Business Results for FY2014/3
6-3. FY 2014/3 Outlook of Main Expenses:
Breakdown of Increase/Decrease over FY 2013/3(Unit:Mln Yen)

6,072

Net Sales
Cost-to-sales
Ratio+0.2％■Net Sales

Increase due to exchange rate influence and continued
reinforcement of the respective business categories

Japan: Increase from continued reinforcement of “GATSBY” Face &Body segment and “Bifesta” brand development andreinforcement in Women’s Cosmetics segment
Asia: Double-digit (local currency basis) increase from reinforced
GATSBY development and continued reinforcement of Pixy in
Women’s Cosmetics as well as introduction of Bifesta into Asia

■Cost-to-Sales Ratio
SGAOperatingIncome2,493702

Control cost-to-sales ratio increase by cost cutting effortsin Japan and overseas

Japan: Control raw material price increase due to exchange rate
Asia:influence with raw material and product cost cutting andplant streamlining

Continue cost-cutting efforts to fight continuously highraw material prices and labor cost increase■ Sales and Administrative Expenses

Concentrate marketing investment on overseas business

Ordinary
Income618

Japan: Conduct effective marketing investment to expand contact
with customers
Asia: Continue vigorous investment for further growthNet
Income192■ Non-Operating I/E, Extraordinary P/L
No major changes in given assumptions at present13