Business Results Briefing(Fiscal Year Ending March 31, 2013)
April 1, 2012‐ September 30, 2012

Mandom Corporation(Securities Code: 4917)

Contents
1.

Consolidated Interim Business Results2.

Consolidated Net Sales

3.

Consolidated Incomes

4.

Summary of Our Strategic Business

5.

Forecast of Consolidated Businss Results for FY2013/3◆Appendix

1 Consolidated Interim Business Results(Unit:Mln Yen)
1Q+2Q
FY2013/3

FY2012/3

Balance

Yr/Yr

Yr/Yr

Achiev.

Net Sales

33,851

33,970

▲ 118

99.7%

101.8%

95.1%

Operating Income

4,739

4,888

▲ 149

96.9%

－94.8%

Ordinary Income

4,916

5,078

▲ 161

96.8%

－96.4%Net Income

3,049

2,742306

111.2%－108.9%12 Consolidated Net Sales
2‐1. Net Sales by Region

2‐2. Net Sales by Region Analysis(Unit:Mln Yen)

(Year‐on‐Year)(Unit: Mln Yen)

1Q+2Q
FY2013/3

FY2012/3

33,851

33,970Net Sales

Balance

▲118

Yr/Yr

▲ 118

Consolidated

99.7%

JAPAN

22,33823,451▲ 1,113

95.3%

INDONESIA

7,068

6,714353

105.3%

Japan▲1,113353
Indonesia

OTHERS

4,445

3,804641

116.9%
Others641

2‐3. Net Sales by Region Ratio (Year‐on‐Year)
ASIA
31.0%

ASIA
34.0%

11.2%
19.8%

Japan

13.1%

Indonesia
Others

20.9%
69.0%

66.0%

FY2012/3 Interim

FY2013/3 Interim22 Consolidated Net Sales
2‐4. Net Sales by Strategic Business Unit
(Unit:Mln Yen)
1Q+2Q
FY2013/3

FY2012/3

33,851

33,970

▲ 118

99.7%

Men's Grooming Business

23,871

24,421

▲ 550

97.7%

Gatsby20,57021,104

▲ 533

97.5%

Women's Cosmetics Business

3,454

3,435

18

100.6%

Women's Cosmetry Business

2,911

2,793

118

104.2%

Other Business

3,614

3,319

294

108.9%Net Sales

BalanceYr/Yr32 Consolidated Net Sales
2‐5. Net Sales by Strategic Business Unit Analysis(Year‐on‐year)(Unit: Mln Yen)
Men’s Grooming Business
GrowthRate

FY2013/3 Interim

23,871

Total
GatsbyWomen’s Cosmetics Business

20,5703,454

GrowthRate

Total

‐2.5%

MandomBeautyLucido‐L

PixyPucelle

Asia

Revenues fell for GATSBY domestic
seasonal products which were largely
impacted by the unseasonable weatherof the 1st quarter and the intensificationof the competitive environment.

Japan+0.6%

FY2013/3 Interim‐2.3%

LucidoJapan

FY2013/3 Interim

Women’s Cosmetry Business

AsiaAlthough Pixy contracted (expandedon a local currency basis) due to thenegative impact of exchange rates,
Mandom Beauty’s Bifesta had solid
growth and increased revenues inJapan as well as overseas.

Total+4.2%

2,911

Japan

GrowthRate

Asia

Although the performance of both
Lucido‐L and Pucelle was stagnant,the performance of women’s bodycare products in Japan had solid
growth and increased revenues

43 Consolidated Incomes
3‐1. Operating Income by Region

3‐2. Operating Income(Unit:Mln Yen)
1Q+2Q

FY2013/3(Unit: Mln Yen)FY2012/3BalanceResultper Sales

ResultYr/Yrper Sales

4,739

14.0%

4,888

14.4%

▲ 149

96.9%

JAPAN

3,432

15.4%

3,567

15.2%

▲ 135

96.2%

INDONESIA

493

7.0%

703

10.5%

▲ 210

70.0%

OTHERS

814

18.3%

617

16.2%

196

131.8%

Operating Incomeby Region Analysis(Year‐on‐Year)
▲149

▲135
▲210

196

3‐3. Operating Income by Region Ratio (Year‐on‐Year)
ASIA
27.0%

ASIA
27.6%

12.6%

Japan

17.2%

Indonesia

14.4%

10.4%

Others

73.0%

72.4%

FY2012/3 Interim

FY2013/3 Interim53 Consolidated Incomes
3‐4. Operating Cost Analysis (Year‐on‐Year)
Operating Cost Total

Cost of Goods(Unit: Mln Yen)

Selling Expenses

Admin. Cost

Consolidated
Japan44456430294091122432

Indonesia
Others▲ 79▲727▲97758(Others)9(Indonesia)
109 41(Japan)▲292

Cost of Goods

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

Selling Expenses

ConsolidatedJapan

Indonesia

OthersAdmin. Cost
Operating Cost
Total

45.2% 45.0%
39.2% 40.5%
20.6% 20.8%
21.0% 21.3%
20.2% 19.8%
14.0% 14.4%

24.4% 23.0%
15.4% 15.2%

FY2013/3 FY2012/3
InterimInterim

FY2013/3 FY2012/3
InterimInterim64.7%61.6% 44.1%

43.8%

17.0%

16.0% 24.3%

26.0%

11.4%
7.0%

11.8% 13.3%
10.5% 18.3%

14.0%
16.2%

FY2013/3 FY2012/3
InterimInterim

FY2013/3 FY2012/3
InterimInterim6

3 Consolidated Incomes
3‐6. Ordinary Income and Net Income by Region(Unit:Mln Yen)
1Q+2Q

FY2013/3
Result

FY2012/3

per Sales

Resultper Sales

Balance

Yr/Yr

177

0.5%

189

0.6%

▲ 1293.5%

4,916

14.5%

5,078

15.0%

▲ 161

96.8%

410.1%

▲ 69

▲0.2%

110

▲60.0%

Income before Income Taxes and Minority Interests

4,958

14.6%5,009

14.7%

▲ 50

99.0%

Income Taxes and Minority Interests

1,668

4.9%

2,044

6.0%

▲ 376

81.6%

241

0.7%

222

0.7%

18108.4%

3,049

9.0%

2,742

8.1%

306

111.2%

Non‐operating Income/Loss
Ordinary Income
Extraordinary Profit/loss

Minority Interests in Net Income
Net Income

3‐7. Non‐Operating Income/Expenses & Extraordinary Profit/Loss
Non‐Operating
Income/Expenses(Unit: Mln Yen)

Extraordinary
Profit/Loss

177

41

Interest received/
dividend

Non‐OperatingIncome
Non‐OperatingExpenses

Others38

Others215

ExtraordinaryProfit
ExtraordinaryLoss49

7Profit on saleof fixed assets

Loss on disposalof fixed assets
Loss on sale ofinvestment securities

74 Summary of Our Strategic Business
Men’s Grooming Business
Men’s Grooming Business
GatsbyMen’s grooming business targets and results
Growth Rate

97.7%

Growth Rate

MP‐Ⅸ
MP‐Ⅹ
FY2011/3 FY2012/3 FY2013/3

MP‐Ⅸ
MP‐Ⅹ
FY2011/3 FY2012/3 FY2013/3

Annual Average Growth Target 3.2%
Annual Average Growth Target 3.6%

Core business: Promote its stable growth
while maintaining and expanding
category share in the men’s grooming
market・In Indonesia, a men’s hair shampoo was put on the market
as a reinforcement of the hair care categoryand development was bolstered directed towards market
entrenchment and capturing market share.

【Hair Styling】
・Moving Rubber continued to strengthen with the release of a TVcommercial by Shouta Matsuda and prominent displays in stores.
Men’s Hair Styling Market Share Trends
Year on Year: +2.4pt
Others

GBBrand U【Face & Body Care】
・With respect to summer
seasonal products, we sought
an early rollout in stores andthe maximization of consumer
contact, but competition stiffened
accompanying market expansion.
・We newly floated a body milk
series responding to men’s
increased body care awareness.

97.5%

ASIAJAPAN・Looking towards the creation ofnew markets, we responded
to increased hair care awarenessand newly floated a men’s out
bath treatment series.

Gatsby sales targets and results

FY2012/3 InterimOthers

GB

Brand UFY2013/3 Interim

Gatsby Hair Shampoo series

Aiming to expand share in the men’s body care market,
we did a makeover of our deodorant series.
・In countries where Mandom is selling products,
marketing activities are being strengthened directed
towards expanding recognition ofour face wash series.

Cool‐shock series went on salein Indonesia

TVCM of Gatsby facial foam series

Summer Seasonal Market Share Trends
MarketOthers
30.7%

Others Growth
36.3%+0.2ptGB Year on Year GB
69.3%
FY2012/3
Interim‐5.6pt63.7%
FY2013/3
Interim

GB Growth‐7.9pt【 Middle aged men’s cosmetics market 】
With the objective of cultivating the promising middle aged men’s cosmetics
market, we have, focusing on the skin care category, thrown light on aging
care through communication on the Internetand the distribution of free samples aiming
at the continued expansion of recognition.

84 Summary of Our Strategic Business
Women’s Cosmetics BusinessAnnual Average Growth Target 19.3%

Women’s Cosmetics Businesstargets and results
Growth Rate

Reinforced product development
and promotion with focus on
individual market needs,
particularly on skin care

100.6%

Overseas BusinessAnnual Average
Growth Target 9.4%

Explore Asians market through vigorous campaigns in priority areas（Indonesia,China）,aming to enhance Group growth potential
Overseas Business :targets and achievements
Growth Rate

Ratio of Overseas Sales to Net Sales

109.5%MP‐Ⅹ
MP‐Ⅸ
FY2011/3 FY2012/3 FY2013/3

34.0%

ASIA

31.0%
JAPANJAPAN・Aiming to further capture users, we expanded our cleansing water items.
We released a TV commercial using Anna Tsuchiya as a new character andsought to expand recognition and to strengthen brand power.
・From Bifesta we released a new skin care series for women in their 30’s.
A category review was implemented.

ASIA・We bolstered the introduction and sales of Bifesta.
In Thailand, we became No. 1 in the “Water‐Type Cleansing” category.
・In China, the Barrier‐Moist line‐up wasstrengthened through a new series.
We strengthened brand recognition using
magazines and the Internet. Beauty advisors
were also utilized to strengthen in‐store sales.

Barrier‐Moist
WhiteningSeris&Cleansing Series

・In addition to bolstering steadily performing make‐up, thedevelopment of skin care was strengthened.
PIXY Two Way Cake

MP‐Ⅹ
MP‐Ⅸ
FY2011/3 FY2012/3 FY2013/3

In：FY2012/3
Out：FY2013/3

Priority areas【INDONESIA】

・In respect to increased purchasing power
accompanying economic growth, we respon
ded to modern markets with highly
functional, high quality products andwe have reinforced our position in traditional markets as well withproducts which match the increase purchasing power of consumers.

【CHINA】

Traditional markets& Modern markets
・Along with seeking expanded areas and distribution channels
focusing on the hair styling category, we concentrated thedistribution channels which are best suited for women’s skin careand men’s face and body.

INDO‐CHINA・We made continuous efforts in the expansion of our distribution
networks in Vietnam and Myanmar, etc. which are promisingmarkets in the future.

INDIA・The local subsidiary , Mandom Corporation (India) Private Limited,
was established in March, 2012 and operations were commenced
directed towards full‐fledged marketing activities from July.

95 Forecast of Consolidated Business Results for FY2013/3（Unit:Mln Yen）
1Q+2Q
Result

3Q+4Q

Initial Plan

Balance

Outlook Initial Plan

AnnualBalance

Yr/Yr

Outlook Initial Plan

Balance

Yr/Yr

Net Sales

33,85135,600▲1,74826,14827,900▲1,751101.2%

60,00063,500▲3,500100.3%

Operating Income

4,739

5,000

▲260860

1,350

▲489

74.1%

5,600

6,350

▲75092.6%

Ordinary Income

4,916

5,100

▲183883

1,450

▲566

71.8%

5,800

6,550

▲750

91.9%

Net Income

3,049

2,800249350

700▲34963.0%

3,400

3,500

▲100103.1%

First Half Results
Net Sales
Operating Income
Ordinary Income
Net Income

Second Half Forecast
Down
turn
UpturnFull‐Year Forecast

Net Sales
Operating Income
Ordinary Income

Net Sales
Down
turn

Net Income

Operating Income
Ordinary Income

Down
turn

Net Income

The causes of the second half forecast falling below the plan and the action items in respect to these causes.
The causes of the second half forecast
SalesThe action items－) Slower Growth of Men’s Cosmetic Market in Japan－) Expanding negative impact of currency exchange rated
due to devaluation of the local currencies ofoverseas countries where Mandom is selling products

Bolstering marketing in the maintenance of growth・Strengthened marketing and products responded to thesluggish growth of existing products in Japan
・Strengthened marketing responded to market growth

Income －) Continued marketing investments in maintaining

in various overseas countries

and expanding growth in domestic and overseas markets

10