The 1st Half YearBusiness Results
Briefing(Fiscal Year Ending March 31, 2021)

April 1,2020-September 30,2020

Mandom Corporation(Securities Code: 4917)

Contents

1. Consolidated Business Results
2. Forecast of Consolidated Business Resultsfor FYE 2021/MAR◆ Appendix

1

Key Topics
Amendment of Full-Year Earnings Forecast
・Prolonged impact of the spread of COVID-19
infection on Mandom would last・Expecting operating losses on a full-year basis

2

First Half Year of FYE 2021/MAR
Key Factor
・Prolonged impact of the spreadof COVID-19 infection
・Sluggish sales of summer products in Japan3

Summary of 1st Half Year of FYE 2021/MAR
・Consolidated Net Sales

No big difference from forecast
Poor sales of summer products in Japan; the great influenceof COVID-19 in Japan and overseas; sales as projected, butwith considerable reduction of income year on year

・ProfitEach profit was higher than forecasted
Reduced operating/ordinary income was caused by reduced
income, but was higher than forecasted due toefficient/reduced cost of sales
With profit from sale of securities recorded, the income washigher than forecasted
A large fall year on year4

1. Consolidated Business Results51. Consolidated Business Results1) Due to the impact of COVID-19 infection,
sales and incomes declined sharply（millions of Yen）

60,000Some items that had been processed as
expenses have been deducted from net
sales at overseas consolidated subsidiaries
included in financial statements prepared inaccordance with IFRS.

40,00041,94142,32544,24742,97643,88244,43933,54838,452

Target ratio＋1.7％
20,0000

2015/3

2016/32017/3

2018/3

Consolidated net sales(new standard)

2019/32020/3

Consolidated net sales(former standard)

2021/36

1. Consolidated Business Results1) Due to the impact of COVID-19 infection,
sales and incomes declined sharply
・Profit from sale of investment securities is recorded as extraordinary income（millions of Yen）

8,000

6,000

4,000
EYE 2016/3

2,000

0

2,136

Extraordinary
gain resulting
from the sale ofthe Indonesiansubsidiary’s plant

2015/3

2016/3Operating Income

2017/3
Ordinary Income

1,205
895
2018/3

2019/32020/32021/3Net Income Attributable to Owners of Parent

7

1. Consolidated Business Results1) Due to the impact of COVID-19 infection,
sales and incomes declined sharply
・Revenue and gross profit fell sharply（millions of Yen）

8

1. Consolidated Business Results ＜Net Sales by Region＞
2) Due to the impact of COVID-19 infection,
incomes fell both in Japan and abroad（millions of Yen）

50,000

YonY change：▲34.6％
8,995

8,795

YonY change：▲32.1％

25,000

5,975

YonY change：▲18.6％

26,6480

5,881

21,6902020/32021/3Japan

Indonesia

Others9

1. Consolidated Business Results ＜Net Sales by Strategic Business Unit＞
3) Both womenʼs business and menʼs business posted a decline
・Hair styling and cleansing items sales decreased（millions of Yen）

50,000

YonY change：▲23.6％
4,455

13,55925,00026,4240

YonY change：▲29.5％

9,556

YonY change：▲22.1％

20,5852020/3

Men's Business

3,406

2021/3

Women's Business

Others10

1. Consolidated Business Results ＜Operating Income by Region＞
4) Revenue and profit fell both in Japan and overseas
・Japan and Others stayed positive, Indonesia became negative（millions of Yen）

6,000

4,000

YonY change：▲89.6％

1,300
294

2,000
3,034

YonY change：▲51.2％0△2,000

YonY change：▲344.4％

2020/3

Japan

135
1,479
△719

2021/3

Indonesia

Others11

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Net Sales by BusinessBusiness results by brand
・GATSBY sales decreased due to sluggish sales of summer
products and the impact of COVID-19 situation

Japan・Barrier Repair and Bifesta continue to stagnate
Status of our major brands
Menʼs Business

Womenʼs Business121. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
MenʼsBusiness

Net Sales by Business・ Lowest consumption of hairstyling products, etc. due to fewerJapan

opportunities to go outside, pressure on people to refrain fromgoing out, and work/study from home arrangements
・Seasonal summer items were sluggish due to record-breaking rainfall in summer■Men‘s grooming market by category YonY (Amount) (market data Mandom survey)

13

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Menʼs

Net Sales by BusinessBusiness

・Sales of hair styling items are in a slump, but skin care
items grew steadily

Japan・Addition of high-performance skincare/makeup products topropose new care practices and expand the skincare market share■Advanced care series■New CM for “LUCIDO Ageing Care Wrinkle Cream”

14

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Net Sales by Business

Wo m e n ’s B u s i n e s s・Sales of cleansing items, especially cleansing sheets,
have slumped as people refrain from going outside

Japan・Eye make-up remover suffered sluggish sales due to a reactionary fallof purchases made by inbound travelers
・To Enhance items in cleansing category, we added new items■Cleansing Sheet■New Facial Wash

15

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Wo m e n ’s B u s i n e s s

Net Sales by BusinessJapan・Although hair styling items have stagnated, Hair care business
continued to grow steadily, mainly Argan Oil Treatment items
・It has strengthened by adding a new Argan Oil Treatment item
■オイルトリートメントシリーズ■オイルトリートメント #EXヘアマスク

16

1. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Miscellaneous Topics【Inbound sales】･Almost no sales attributable to tourists visiting Japan, but
average monthly sales of about 100 million yen throughforeign agents in Japan and global e-commerce

Net Sales by BusinessJapan【Alcohol-based sanitizer Products】

・A series of sanitizer products coming successively onto the market
in and after June
■Mandom sanitizer series171. Consolidated Business Results ＜Summary of Our Strategic Business (JAPAN)＞
Miscellaneous Topics【EC】

Net Sales by Business

・Focus on e-commerce channels by offering
an e-commerce economy pack/size of best-selling productsJapan■EC products
Pack oftwo■M4 Direct sensor patch

Launched our new microneedle serum patch“M4 Direct sensor patch”
on our own e-commerce site.

18

1. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞Net Sales by BusinessBusiness results by brand・Sluggish sales of all brands in Jakarta where large-scalesocial restrictions were reinstated due to the spread ofIndonesia

COVID-19 infections
Status of our major brands
Men’s Business

Women’s Business19

1. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞
Men’s

Business

Net Sales by BusinessIndonesia
・Overall sales of hair styling items are in a slump
・For Styling Pomade, we added new items and updated
the existing items■GATSBY Styling Pomade201. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞Net Sales by Business

Wo m e n ’s B u s i n e s s

Indonesia･Sales decreased for both make-up and skin care products･Addition of moisturizing hand sanitizer that will not dry skin for
consumers increasingly aware of hygiene and new liquid foundation thatappeared on the market behind schedule due to the COVID-19 pandemic■Hand sanitizer■Liquid foundation21

1. Consolidated Business Results ＜Summary of Our Strategic Business (INDONESIA)＞Net Sales by BusinessS u p p l e m e n t【Latest Earnings】

Indonesia

PT Mandom Indonesia Tbk 1Q+2Q+3Q Results(Local currency basis)(Millions of Rp.)

FYE 2021/MARFYE 2020/MAR

Yr/Yr

Net Sales

1,470,417

2,166,886

67.9%

Operating Income▲85,403

164,455―

Net Income▲75,387

134,339―

・The large-scale social restrictions that were reinstated in Jakarta on
September 14 were relaxed on October 12 to resume economic activity.
Still, the infection is spreading, and the future remains uncertain.

22

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞

General Status of Business Results･Significant slowdown in all areas･Future remains uncertain in Southeast Asian countries

Net Sales by Business

Others23

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞
Men’s

Business

Net Sales by Business

Others・In China, Taiwan, and other countries, strengthened
the GATSBY facial and body paper products, in stores■Paper products in the store

241. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞Net Sales by Business【China】
・Use of TikTok video advertisement to promote hair gel wax

Othersdirectly to Tmall online flagship stores, resulting in twice asmuch sales month on month and “GATSBY gel wax” as the No. 1
at flagship stores・Successful collaboration with Watsons e-commerce to develop sales
promotion by live commerce of eye makeup remover, with 20,000 sets(a total of 40,000 products) sold out

25

1. Consolidated Business Results ＜Summary of Our Strategic Business (OTHERS)＞Net Sales by BusinessS u p p l e m e n t■Impact of COVID-19 diseasein each country
Area
East Asia

Others

Impact on sales
The pandemic is coming to an end. It was mostinfluential in 1Q. Sales showed signs of recovery in andafter 2Q.
Note) Hong Kong had a hard time in and after 2Q due topolitical instability

Indonesia・Philippines

The infection is still spreading. It remains influential in
and after 3Q. The future is uncertain.

Southeast Asia

The pandemic will not come to an end very soon. It
was most influential in 2Q. The prospects for recovery
in and after 3Q look dim. The future is uncertain.

(except for Indonesia
and Philippines)26

2. Forecast of Consolidated
Business Resultsfor FYE 2021/MAR

27

2. Forecast of Consolidated Business Results for FYE 2021/MAR
1) Amendment of Full-Year Earnings Forecast(Millions of yen)
1Q+2Q
ResultInitial Plan

3Q+4Q
Balance

Outlook

Initial Plan

AnnualBalance

Yr/YrOutlook

Initial Plan

Balance

33,54833,000+548

30,451

32,000▲1,54881.6%

64,00065,000▲1,000Operating Income

895

400

+495

▲1,695

1,100▲2,795

▲800

1,500

▲2,300Ordinary Income

1,205

750

+455

▲1,5551,200▲2,755

▲350

1,950

▲2,300Net Income Attributableto Owners of Parent

2,136

450

+1,686▲1,466750▲2,216ー-97.3%
ーー-125.5%

670

1,200

▲530

Net Sales-126.4%*Full year forecast minus first half results28

2. Forecast of Consolidated Business Results for FYE 2021/MAR
1) Amendment of Full-Year Earnings Forecast
・No recovery of sales both in Japan and abroad[Circumstances of second half of FYE March 2021]■Salesー） ・Slow recovery from depressed domestic/overseas demand for cosmetics
・Expanding/lasting influence of the pandemic in Southeast Asia,
including Indonesia±） ･Market trend of new products■Operating incomeー） ・Decreasing sales and gross income
・Decreasing production amount and efficiency
・Increasing depreciation by moving up the scheduled start of operationof the new production building at Fukusaki Factory
・Investment of A&P expenses to increase sales next year29

2. Forecast of Consolidated Business Results for FYE 2021/MAR

Task•

Poor sales of main products and sales in main areas caused
decrease in sales during the COVID-19 pandemic[Product] hairstyling/cleansing agents[Area] Southeast Asia•

Low expectation from the user of main brand, “GATSBY”•

Sluggish “Bifesta”, which should be a sales engine to scale up
products for women•Insufficient return on infrastructure investment due to a gap
between forecasted and actual performance302. Forecast of Consolidated Business Results for FYE 2021/MAR

Construction of Fukusaki Factory
・The building was completed at the end of August. Currently, production facilities
and equipment are being installed. While its completion is delayed until next year,
start of operation will be moved to December 2020.
■Current appearance31

2. Forecast of Consolidated Business Results for FYE 2021/MAR

Entering the hygiene-related market
・Participation in industry-government-academia collaboration to bring“MA-T,” a next-generation innovative disinfecting agent, onto the market
and develop its application technology
・”MA-T Pure” coming onto the market in November, followed by other items■MA-T Pure Anti-bacterial Deodorizing Spray32

2. Forecast of Consolidated Business Results for FYE 2021/MAR

Promote workstyle reform■Our initiatives for With Corona era
・ Promoting working from home
・ Eliminated core time from flextime
・ Changed a travel allowance（from commuter pass to actual cost）

・ Provide allowance for working
from home（300yen/day）33

2. Forecast of Consolidated Business Results for FYE 2021/MAR

Renewal of key brands
・ Regarding GATSBY and Bifesta, the two brands suffering from slow
sales, complete renewal of products and marketing communication isscheduled within this year to suit changing consumers’ lifestyles andsense of value after the pandemic34

◆ Appendix

35

Contents

1. Consolidated Business Results
2. Consolidated Net Sales
3. Consolidated Income
4. Forecast of Consolidated Business Resultsfor FYE 2021/MAR

36

1. Consolidated Business Results(Millions of yen)
1Q+2Q
Balance

Yr/Yr

Yr/Yr※FYE 2021/MARFYE 2020/MAR

33,54844,439▲ 10,891

75.5%

76.3%

101.7%

Operating Income

895

4,628

▲ 3,733

19.4%－

223.9%

Ordinary Income

1,205

5,107

▲ 3,901

23.6%－

160.8%Net Income Attributable to
Owners of Parent

2,136

3,276

▲ 1,13965.2%－

474.9%Net Sales

Achiev.

※ Comparison with FYE 2020/MAR rate after adjustment.

EPS¥47.62¥71.0537

2. Consolidated Net Sales
2-1. Net Sales by Region(Millions of yen)
1Q+2Q
FYE 2021/MAR FYE 2020/MAR

44,439▲ 10,891

75.5%

21,69026,648▲ 4,957

81.4%

Indonesia

5,975

8,795

▲ 2,819

67.9%

Others

5,881

8,995

▲ 3,113

65.4%

Japan

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

Japan

Yr/Yr

33,548Net Sales

Consolidated

Balance▲10,891▲4,957

Indonesia▲2,819Others▲3,1132-3. Net Sales by Region Ratio (Year-on-Year)
ASIA
41.4%

ASIA
35.3%

20.2%

17.5%

19.8%

17.8%
60.0%

64.7%

FYE 2020/MAR 2Q

FYE 2021/MAR 2Q

Japan

Indonesia

Others38

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

(Millions of yen)
1Q+2Q

FYE 2021/MARFYE 2020/MAR

33,54844,439▲ 10,891

75.5%

20,58526,424▲ 5,839

77.9%

16,034

21,428▲ 5,393

74.8%

Women's Business

9,556

13,559▲ 4,002

70.5%

Other Business

3,406

4,455

▲ 1,049

76.4%

Net Sales
Men's Business
GatsbyBalanceYr/Yr※breakdown :Women’s Cosmetics 4,910 Millions of yen (Yr/Yr 54.9%) / Women's Cosmetry 4,646 Millions of yen (Yr/Yr 100.8%)

Men’s Business
FYE 2021/MAR
2Q Results
Total

GatsbyWomen’s Business
GrowthRate

FYE 2021/ MAR
2Q Results

GrowthRate

9,556-29.5%FYE 2021/MAR Growth
2Q Results
Rate

20,585-22.1％

Total

16,034-25.2％

Bifesta

Lucido-L

PIXY

PucelleLucido

Japan

Asia

Japan

(Millions of yen)

Asia

39

3. Consolidated Income
3-1. Operating Income by Region(Millions of yen)
1Q+2Q
FYE 2021/MAR
ResultFYE 2020/MAR

per Sales

Resultper Sales

Balance

Yr/YrOperating Income

895

2.7%

4,628

10.4%

▲ 3,733

19.4%

Japan

1,479

6.8%

3,034

11.4%

▲ 1,55448.8%

Indonesia▲ 719▲12.0%

294

3.3%▲ 1,013▲244.4%

135

2.3%

1,300

14.5%

▲ 1,165

10.4%

Others3-2. Operating Income/Loss
by Region Analysis (Year-on-Year)(Millions of yen)

ConsolidatedJapan
Indonesia
Others▲3,733▲1,554▲1,013▲1,1653-3. Operating Income/Loss by Region Ratio(Year-on-Year)

ASIA
34.5％

28.1%
6.4%

N/A
※Operating Loss

65.5%

FYE 2020/MAR 2Q
Japan

Indonesia

FYE 2021/MAR 2Q
Others40

Indonesia + Others3. Consolidated Income
3-4. Operating Cost Analysis (Year-on-Year)
2Q
Operating Cost Total

2Q
Cost of Goods▲ 1,710▲ 3,403▲ 7,158

Consolidated

Indonesia

Japan

Others2Q
Selling Expenses

2Q
Admin. Cost

▲ 1,432 ▲ 1,059▲ 1,152

▲ 142
▲ 230

▲ 4,574 ▲ 1,381(Millions of yen)

▲ 633

▲ 282
▲ 235

▲ 1,482▲ 1,806▲ 1,948

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

47.5%

19.0%
23.1%
10.4%
FYE 2020/MAR
1Q

49.3%

20.9%
27.1%
2.7%
FYE 2020/MAR
1Q

Japan
40.1%

25.8%
11.4%
FYE 2020/MAR
1Q

Admin. Cost

Selling Expenses

OP Income/LossIndonesia

41.4%
66.2%

22.7%

Cost of Goods

51.1%

6.8%
FYE 2020/MAR
1Q

16.1%
10.8%

13.6%

19.6%

18.4%

24.1%

14.5%

3.3%
FYE 2020/MAR
1Q

52.9%

74.4%

22.9%
28.8%

Others

-12.0%FYE 2020/MAR
1Q

FYE 2020/MAR
1Q

20.7%
24.1%
2.3%
FYE 2020/MAR
1Q

41

3. Consolidated Income
3-6. Analysis of Change in Consolidated Operating Income(Millions of yen)42

3. Consolidated Income
3-6. Ordinary Income and Net Income Attributable to Owners of Parent(Millions of yen)
1Q+2Q
FYE 2021/MAR
ResultFYE 2020/MAR

per Sales

ResultBalanceper Sales

Yr/Yr

310

0.9%

478

1.1%

▲ 168

64.8%

1,205

3.6%

5,107

11.5%

▲ 3,901

23.6%

1,726

5.1%

91

0.2%

1,635

1897.2%

2,932

8.7%

5,198

11.7%

▲ 2,265

56.4%

950

2.8%

1,751

3.9%

▲ 800

54.3%

Net Income

1,981

5.9%

3,446

7.8%

▲ 1,464

57.5%

Net Income Attributable to Non-controlling interests

▲ 155

▲0.5%

170

0.4%

▲ 325

▲91.0%

2,136

6.4%

3,276

7.4%

▲ 1,13965.2%

Non-operating Income/Expenses
Ordinary Income
Extraordinary Profit/Loss
Income before Income Taxes and Minority Interests
Income Taxes and Minority Interests

Net Income Attributable to Owners of Parent

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

310
Interest income

Non-Operating
IncomeShare of profit
of entities accounted
for using equity method

351

Extraordinary
Profit/Loss

1,726
Gain on sales of
non-current assets

Extraordinary
Profit1,755
Gain on salesof investment securities

Others

Non-Operating
Expenses
41

Interest expenses
Sales discounts
OthersDividend income(Millions of yen)

Extraordinary
Loss

28

Loss on retirement of
non-current assets
Extraordinary losses
Loss on salesof non-current assets

43

4. Forecast of Consolidated Business Results for FYE 2021/MAR
Forecast of Consolidated Business Results for FYE 2021/MAR(Millions of yen)
FYE 2021/MARFYE 2020/MAR

AnnualRevised Plan

Balance

1Q+2Q
Yr/Yr

ResultBalanceResultYr/Yr

Annual

1Q+2Q

Net Sales

64,000▲17,774

78.3%

33,548▲10,891

75.5%

81,77444,439Operating Income▲800▲6,770-13.4%

895▲3,733

19.4%

5,970

4,628

Ordinary Income▲350▲7,056

-5.2%

1,205

▲3,901

23.6%

6,706

5,107

670

▲3,775

15.1%

2,136

▲1,139

65.2%

4,445

3,276

Net Income Attributableto Owners of Parent44

◆ Appendix
Interim Results of FYE 2021/MAR (P/L of Mandom Corporation, PT Mandom Indonesia Tbk)
Depreciation,Capital Investment

Mandom Corporation
FYE 2021/MAR FYE 2020/MAR
1Q+2Q
1Q+2Q

balance(Millions of yen)
Revised
Yr/Yr
Plan■Consolidated(Unit : Mln Yen)FYE 2021/MAR FYE 2020/MAR
1Q+2Q
1Q+2Q

FYE 2021/MAR
Outlookbalance

Net sales

23,102

28,769▲ 5,666

80.3%

42,000Depreciation

2,093

2,118

▲ 25

4,570

Cost of Goods

10,357

12,926▲ 2,569

80.1%－

Capital investment

6,231

4,976

1,255

10,200

Cost Ratio

44.8%

44.9%

-0.1P

－

－

Selling, general andadministrative expenses

11,047

12,696▲ 1,648

87.0%－

Operating Income

1,698

3,147

▲ 1,448

54.0%

－

538

520

18

103.6%－

Non-operating Income/Los■Mandom Corp.Only(Unit : Mln Yen)FYE 2021/MAR FYE 2020/MAR
1Q+2Q
1Q+2Q

Ordinary Income

2,236

3,667

▲ 1,430

61.0%

Extraordinary Profit/loss

1,727

80

1,646

2136.2%－700

Net Income

3,041

2,736

305

111.2%

1,700

balance

Depreciation

1,131

1,204

▲ 73

Capital investment

5,805

4,104

1,700

※Capital investment includes intangible assets

PT Mandom Indonesia Tbk
Local Currency(Millions of Rp.)
FYE 2021/MAR FYE 2020/MAR
1Q+2Q
1Q+2Q

balanceYen Equivalent(Millions of yen)
FYE 2021/MAR FYE 2020/MAR
1Q+2Q
1Q+2Q

Yr/Yr

balance

Yr/Yr

Net sales

996,776

1,411,193 ▲ 414,416

70.6%

Net sales

7,475

10,866▲ 3,390

68.8%

Cost of Goods

753,077

930,610 ▲ 177,532

80.9%

Cost of Goods

5,648

7,165

▲ 1,517

78.8%

Cost Ratio

75.6%

Cost Ratio

75.6%

65.9%

+9.6P

65.9%

+9.6P

－

－

Operating Income▲ 56,663

113,510 ▲ 170,173-49.9%

Operating Income

▲ 424

874

▲ 1,299-48.6%Net Income▲ 52,904

94,714 ▲ 147,618-55.9%Net Income

▲ 396

729

▲ 1,126-54.4%

Rp.1=￥0.0075 Rp.1=￥0.0077※Assumption rate FYE 2021/MAR
Rp.1=￥0.0075

45

Regarding Forward-Looking Statements

This document contains forward-looking statements concerning Mandom’s current
plans, strategies, beliefs and performance. These forward-looking statements
include statements other than those based on historical fact and represent theassumptions and beliefs of management based on information currently available.
Mandom therefore wishes to caution readers that actual results may differ
materially from expectations, and that forward-looking statements are subject toa number of foreseen and unforeseen risks and uncertainties. All amounts havebeen rounded to the nearest whole unit.

46

47