BusinessResults Briefing（Fiscal Year Ending March 31,2016)
April 1,2015-March 31,2016

Mandom Corporation（Securities Code: 4917）

Contents

1. Consolidated Business Results
2. Consolidated Net Sales
3. Consolidated Incomes
4. Summary of Our Strategic Business
5. MP-11 Progress Report
6. FY 2017 Forecast◆ Appendix

1. Consolidated Business Results(Unit:Mln Yen)
Annual
FY2016/3 FY2015/3

Balance

Yr/Yr

Yr/Yr※Achiev.

Net Sales

75,07870,9254,153

105.9%

104.4%

100.1%

Operating Income

6,5946,996

▲ 401

94.3%

－101.5%

Ordinary Income

7,415

7,595

▲ 18097.6%－101.6%Net Income Attributable toOwners of Parent

6,383

4,425

1,957

144.2%－104.6%

ROE

11.0%

8.3%

EPS¥273.04¥189.28

29.3%

40.2%

Payout Ratio※Comparison with FY 2015/3 ex-change rate
after adjustment

 “Net sales” and “Net income attributable to owners of parent” wasupdated to the highest.

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

Net Sales

BalanceYr/Yr

75,07870,9254,153

105.9%

Japan

44,104

41,6372,467

105.9%

Indonesia

18,164

17,172992105.8%

Others12,80912,115693

105.7%

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

2-3. Net Sales by Region Ratio(Year-on-Year)
ASIA
41.3％

Consolidated

ASIA
41.3％

4,153
17.1％

Japan

2,467
24.2％

Indonesia
Others

17.1％

58.7％

24.2％

58.7％

992
693

Japan

FY2015/3

Indonesia

FY2016/3

Others2

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

(Unit:Mln Yen)
Annual

FY2016/3 FY2015/3
Net Sales

70,9254,153

105.9%

48,256

46,9551,300

102.8%

39,31938,837481

101.2%

Women's Cosmetics Business

10,884

8,381

2,503

129.9%

Women's Cosmetry Business

8,167

7,790

377

104.8%

Other Business

7,770

7,798

▲ 2899.6%

Gatsby0Menʼs Grooming Business

Womenʼs Cosmetics Business

FY2016/3 Results

FY2016/3 Results

GrowthRate

10,884+29.9%

GatsbyYr/Yr

75,078

Men's Grooming Business

Total

Balance48,25639,319GrowthRate+2.8％

Total

+1.2％

MandomBeauty

Japan

Asia

FY2016/3 Results
Total

8,167

GrowthRate+4.8％

Lucido-L

PucellePixyLucido

Womenʼs Cosmetry BusinessJapanAsia

JapanAsia

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

FY2016/3
Result

FY2015/3

per Sales

Resultper Sales

Balance

Yr/YrOperating Income

6,594

8.8%

6,996

9.9%

▲ 401

94.3%

Japan

4,704

10.7%

4,485

10.8%

219

104.9%

Indonesia

880

4.8%

1,028

6.0%

▲ 147

85.6%

Others

1,008

7.9%

1,482

12.2%

▲ 474

68.0%

3-2. Operating Income by Region
Analysis(Year-on-Year)
Consolidated

3-3. Operating Income by Region Ratio(Year-on-Year)
ASIA
35.9％

ASIA
28.7％

▲401
15.3％

21.2％

Japan

219

13.4％
14.7％

Indonesia
Others▲147▲47464.1％

71.3％Japan

FY2015/3

Indonesia

FY2016/3

Others4

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

Cost of Goods

Selling Expenses

Admin. Cost
Consolidated

1,167

4,555

Japan
Indonesia

1,140

2,247

60

Others

830
2,109
1,217

1,605

967
713

139
840

▲753153-5. Operating Cost & Income (Ratio to Sales)
Consolidated

JapanIndonesia

384

OthersCost of Goods
Selling Expenses

45.6% 45.3%

24.5% 23.7%
21.1% 21.2%

40.5% 40.0%

39.8% 41.6%
61.8% 60.6%

Operating Incomes

22.9% 22.5%
38.8% 33.0%25.9% 26.7%

18.5% 20.0%

9.9%

10.7% 10.8%

14.8% 13.4%
4.8% 6.0%

FY
FY
2016/3 2015/3

FYFY
2016/3 2015/3

FY
FY
2016/3 2015/3

8.8%

Admin. Cost

13.2%

13.5%

FY
FY
2016/3 2015/3

7.9% 12.2%

5

3. Consolidated Incomes
3-6. Ordinary Income and Net Income Attributable toOwners of Parentby by Region(Unit:Mln Yen)

Annual
FY2016/3
ResultNon-operating Income/Loss

FY2015/3

per Sales

Resultper Sales

Balance

Yr/Yr

820

1.1%

599

0.8%

221

136.9%

7,415

9.9%

7,595

10.7%

▲ 18097.6%

3,2834.4%

▲ 66

▲0.1%

3,350 ▲4922.7%

10,698

14.3%

7,529

10.6%

3,169

142.1%

Income Taxes and Minority Interests

2,380

3.2%

2,519

3.6%

▲ 138

94.5%

Net Income

8,317

11.1%

5,009

7.1%

3,308

166.0%Net Income Attributable to Non-controlling interests

1,934

2.6%

584

0.8%

1,350

331.1%

6,383

8.5%

4,425

6.2%

1,957

144.2%

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(Unit:Mln Yen)

Non-Operating
Income/Expenses

820

Interest received/dividend

Non-Operating
IncomeOthers

833

Extraordinary
Profit/Loss3,283
Profit on disposalof fixed assets

ExtraordinaryProfit4,554

Others

Non-Operating
Expenses62

Equity inearnings of affiliates
Sales discounts

Extraordinary
Loss1,271

Disaster loss

6

4. Summary of Our Strategic Business
Japan

Sales by businesscategory (%)* Graphs and numbers are frommarket data calculated by MandomMenʼs Grooming Business

Good performance and market establishment of Styling
Grease focusing on style for shine/compactness
launched in Autumn ʻ15

Odor Care Series: New version TVCM input; also,
product renewal in Skin Care Series, Styling
Series, leading to steady sales growthMenʼs Hair Styling Market(April to March total)

Other

Yr/Yr
98.5％

GB

Yr/Yr
105.5％

FYE
2015

FYE
2016

*MarketGrowth101.7％

Scalp care suppli
Styling Grease

Gatsby
Share

46.9％

Launch of new proposal Scalp
Care Suppli for 20s + 30s
customers worried about futurehair-thinning, aimed atgenerating new market*Mandomʼs overall share in menʼs hairstyling market is 63.8%.

Women's Cosmetics Business
Barrier Repair Sheet Mask
Bifesta Cleansing Sheet

Preparing for rapid rise indemand for Barrier Repair
Sheet Mask, Bifesta Cleansing
Sheet, both growing in sales
thanks to inbound impact, byinstalling new production
facilities in Fukusaki factory.

Womenʼs Cosmetry BusinessCore products (Hair Wax, Hair Milk /Cream) doing
well, plus Oil Treatment Series contributed
strongly to increased sales.

OilTreatment

74. Summary of Our Strategic BusinessIndonesia

Sales by businesscategory (%)

Menʼs Grooming Business[Face & Body Care] Face Care
Skin Tonic Wash Series, ourleading line, grew in sales.

[Hair Styling]
Water Gloss, our category
driver, enjoyed healthy sales
growth, despite supply
disruption due to factory fire.
To add to this, NEW pomade
targeting young men increased
sales steadily.

Water Gloss

Styling Pomade

Women's Cosmetics Business

PIXY Perfect Surprise Campaign started inSeptember. Reinforcement underway, focusing
on Two Way Cake

Outdoor ad board, withpowerful street impact

 Body Care
Urban Cologne, our keyproduct, delivered goodresults. In December, minisize was launched, aimed atfurther increase in users.

Gatsby products
in retail store

Womenʼs Cosmetry Business

Energetically promoting entry into moreretail outlets for new series Pink MePucelle products(PinkMe: 3 items
on front left)

84. Summary of Our Strategic Business
OthersSales by businesscategory (%)

Menʼs Grooming Business[Gatsby Styling Grease: Global Marketing]Gatsby Styling Grease launched in Japan in August 2015 transferred overseas to Singapore(September), Taiwan and Korea (October) – speedy marketing horizontal transfer to Asia.
Early results are good.

Singapore: Concourse ad

Singapore: Bus wrapping ad

Singapore: Escalator ad

Women's Cosmetics Business[Bifesta Cleansing Water: Extending Oyakudachi to Asian countries]
Bifesta Cleansing Water Series, liked by customers in Japan for its water-based cleansing, has
become popular in Asia. Distinctive marketing approaches have been adopted in different countries.

Taiwan: Pop-up street trial events

Korea: TV beauty program feature

Thailand: Train wrapping ad[New Company News (Vietnam)]
Mandom Vietnam Company Limited – our 12th overseas company started selling products fromNovember, now in full gear.

95. MP-11 Progress Report
MP-11 Year 2 Report

MP-11 Final Year Forecast

Figures lower than initial targets

One year lag from initial planDue to fire in Mandom Indonesia, sales
target and profitability targets not met

Initial targets to be postponed by 1 year:
Md Indonesia to recoverits 2-digit growth and “Overseas, Other”
to maintain growth

GrowthGrowthDue to fire in Mandom Indonesia,
initial target for MP-11 Year 2 not met

More income through promotion of 3
business operations and Md Indonesia
growth recovery
Consolidated salesForecast: target unlikely to be met

Consolidated sales
MP-11 final year target: 830million yen
Year 2 result: 750million yen

Profitability
Profitability targets not met due tounmet sales target resulting in income
dip, plus big distribution cost input in thePhilippines

Consolidated operating marginMP-11 final year target: 86million yen
Year 2 result: 65million yen

MP-10

Results/Forecast

MP-11

Profitability
Strong marketing investment to continue
overseas
Efficient expenditure input in Japan aimed
at increasing operating income

Consolidated operating margin
Forecast: target unlikely to be met
Final year target: 74million yen

Shareholder Return

Extraordinary factor: sale of old HQand factory of Md Indonesia

Continued stable and highshareholder return

Consolidated payout ratio

Consolidated payout ratio

Year 2 result: 29.6%

Initial Target(million yen)

Final year target: 768million yen

Shareholder ReturnMP-11 3-year follow-on target: 40% or more

Net Sales

Operating Income
Initial Target
MP-10(million yen)

Results/Forecast

MP-11

Ensure to meet our target of 40%or above10

5. MP-11 Progress ReportMenʼs Grooming
Aim for continuous growth
as core business,
keeping/increasing
category share in menʼscosmetics market

Menʼs Grooming: Targets and Results

Year 2 Results:
Sluggish sales of summer
products in Japan

Annual average
growth rate

5.2%

Final year forecast:Targets unlikely to be met
MP-10
14/3

Womenʼs Cosmetics
Focus on Skin Care, Makeup Base categories and aim
to speed up marketing inAsia through line-up thatmatches each country

Aim to firm base in growthmarkets: expand scale inour core market Indonesia
by boosting activities; buildup distribution network inChina and Indochina

MP-11
15/3

16/3

17/3

Womenʼs Cosmetics: Targets and Results

Year 2 Results:
Big growth of Bifesta bothin Japan and overseas

Annual average
growth rate

MP-11 average
growth target

20.1%

15.0%

Final year forecast:Targets likely to be met
MP-10
14/3

Global Business

MP-11 average
growth target

2.3%

Year 2 Results:
Sluggish growth due to thefire in Indonesia and excess
retail inventory in thePhilippines; China,Thailand(under Indochina)
doing well
Final year forecast:Targets unlikely to be met

MP-11
15/3

16/3

17/3

Global Business: Targets and Results
Annual average
growth rate

MP-11 average
growth target

6.6%

MP-10
14/3

MP-11
15/3

11.4%

16/3

17/3

11

6. FYE 2017 Forecast
6-1. Basis for FYE March 2017 Consolidated Earnings Forecast (Targets)
Sales Increase: Factors

Income Increase: Factors+ Continued growth of Menʼs Grooming focusing on Gatsby
through aggressive marketing investment overseas+ Increased income due to increased sales+ Stable growth of Menʼs Grooming in Japan including
opening up of new areas+ Productivity increase from special focus on Indonesia
produced items+ Continued high growth by reinforcing Womenʼs Cosmetics+ Lower sales cost ratio from more in-house manufactureof paper products+ Assured Global Business growth focusing on “Overseas,Other”－ Drop in yen-denominated overseas sales due to foreignexchange (weak local currency)－ Downturn in summer products in Japan due to weather
conditions－ Continued aggressive marketing investment overseas－ Drop in yen-denominated overseas income due toforeign exchange (weak local currency)

6-2. FYE March 2017: Consolidated Earnings Forecast

126. FYE 2017 Forecast
6-3. FY 2017/3 Outlook of Main Expenses: Breakdown of Increase/Decreaseover FY 2016/3(Unit: Mln Yen)

■ Net sales
Despite impact of foreign exchange, increase revenue

Net Sales

1,721

Cost-to-salesRatio

0.4%[Japan]-Reinforcement of Gatsby Face&Body Care-Continued developmental marketing for Lucido in response to
middle-aged consumers-Continued marketing of Bifesta[Overseas] -Marketing to meet condition of each country of Gatsby-Reinforcement Bifesta and Pixy■ Cost-to-sales ratio

SGA

Cost reduction initiatives worldwide, limit increases in cost ratios

162

Operating
Income805[Japan]Reduction by the efficiency of production[Overseas]

Increased production efficiency associated with launch ofoperations at new plant in Indonesia to reduce costs■ Selling expenses
Ongoing marketing investments for growth, especially overseas

Ordinary
IncomeNet income
attributable toOwners ofParent484
1,383[Overseas] Continued aggressive investments for Brand recognition andgrowth■ Non-operating income (loss)/extraordinary income (loss)"Net income attributable to Owners of Parent" decreases in reaction of theincrease of the special interest of the last year

13