Mandom Group Business Areas
Other overseas
The Mandom Group is developing its global operations, particularlyin Asia. The Group segments its operations into three regions:Japan, Indonesia and Other overseas.

Japan

We create and invigorate markets by responding meticulously toconditions in each area and to such characteristics as consumer
preferences, lifestyles and purchasing power.

▲

Composition of net sales byregion and business▲

Composition of consolidated net sales by region■ Menʼs business■ Womenʼs business■ Other businesses

Other overseas

22.7%

JapanNet sales

56.8%

Composition of consolidated
operating profit by region▲¥57,361
Indonesia

Indonesia

million(Not presented due to operating loss)

20.5%
Other overseas Indonesia

Japan

Note: All figures are for the fiscal year ended March 31, 2022▲

JapanNet sales, year on year

-8.3%

Our core sales region, constituting approximately 60% of the Mandom Groupʼs net sales

Average growth rate,
past five years

−

5,525
38,84732,595

4,248

Operating profit margin (%)▲

47,739 48,442 46,175▲

Operating profit or loss (Millions of yen)▲

Net sales (Millions of yen)*111.63,014

8.8

6.5

*235,541-255 -266*2
2018
2019
2020
(Year ended March 31) (Year ended March 31) (Year ended March 31)

2021(Year ended March 31)

2022(Year ended March 31)

2018
2019
2020
(Year ended March 31) (Year ended March 31) (Year ended March 31)

2021(Year ended March 31)-0.7-1,4732022(Year ended March 31)

-4.5
2018
2019
2020
2021
2022
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)*1 Comparisons with results of the fiscal year ended March 31, 2021. Figures have been converted to apply the Accounting Standard for Revenue Recognition which was adopted in the fiscal year ended March 31, 2022.
*2 Calculated using the same criteria as the fiscal year ended March 31, 2022

<Menʼs business>

Our mainstay brand “Gatsby” saw a decrease in sales due to the impact of the decrease in opportunities
to go out due to the spread of COVID-19, and sluggish sales for body cleansing wipes, deodorant
sprays, etc., which are summer season products, due to many unseasonably rainy and cool days in thefirst half of August, the period of peak demand.
Facial and body cleansing wipes were renewed in February 2021 through strengthening basic functions
and using plastic-free nonwoven fabric. Although these are high value-added menʼs cosmetic products,
offering new value for environmentally conscious Generation Z, sales dropped sharply due to thepreviously mentioned unseasonable weather and intensified market competition. On the other hand,styling product sales finished higher compared to the fiscal year ended March 31, 2021, when theimpact of COVID-19 was most severe.

“Gatsby Facial wipes and Body wipes”
featuring plastic-free, nonwoven fabric<Womenʼs business>

Sales of the cleansing and facial wash brand “Bifesta” also declined steeply in the fiscal year ended
March 31, 2021 due to being significantly affected by the decrease in opportunities for going out. While
we redefined the value of the brand and completely renewed it in February 2021 in an effort to acquire
new customers, sales declined for the fiscal year ended March 31, 2022 due to the impact of significant
changes in trends in cleansing products in Japan.
“Lúcido-L,” the hair beauty cosmetic brand of non-bath hair treatments containing argan oil, continued to grow.

06

Mandom Report 2022

“Lúcido-L #EX Hair Oil Series”

Net sales, year on year

-2.9%

The largest overseas business area and growth leader for the Mandom Group

Average growth rate,
past five years−

19,104*

1,181

17,044 17,791

681

6.2

645

12,102 11,751-899
2019
2020
2021
2022
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

4.0

3.6

-7.4

-1,204

2018
2019
2020
2021
2022
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

-10.2

2018
2019
2020
2021
2022
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Value Creation Story

2018(Year ended March 31)

Operating profit margin (%)▲

19,616▲

Operating profit or loss (Millions of yen)▲

Net sales (Millions of yen)

About Mandom▲

Indonesia* Calculated using the same criteria as the fiscal year ended March 31, 2019<Menʼs business>

For our mainstay brand “Gatsby,” the impact from COVID-19 peaked in the fiscal year ended March 31,2021, and the brand ultimately grew in the fiscal year ended March 31, 2022. Although face and bodycare sales continued to fall below the previous yearʼs level, the market for styling products has been
growing year-on-year since November. In the area of styling products, we launched “spray pomade” in
September, and are actively working to introduce it to the market.

“Gatsby Styling Pomade Series”<Womenʼs business>“Pixy Lip Duo Series”▲

Other overseas

Net sales, year on yearThis area possesses a large potential for future growth and is expected to become the engine of growth in the future

Average growth rate,
past five years

13,51012,360 13,015

Middle-Range Planning

14,0302,205▲

17,8065.3%
2.0%

Operating profit margin (%)▲

Operating profit (Millions of yen)▲

Net sales (Millions of yen)

Materiality

Our makeup brand “Pixy” continued to see a significant decline in sales during the fiscal year ended
March 31, 2022, due to the COVID-19 pandemic and reduced opportunities for going out. From thefourth quarter (October-December), we launched four new base makeup products (November) and two
new decorative products (December), aiming to recover sales for the current fiscal year.
Our fragrance brand “Pucelle” has continued to perform well despite the COVID-19 pandemic, withnearly double-digit growth. We aim to further increase our market competitiveness by launching newproducts in December.

2,310

14.6

1,750

16.3
13.0

12,020*
361
2019
2020
2021
2022
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

2018
2019
2020
2021
2022(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

2.82018
2019
2020
2021
2022
(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Performance for the Fiscal Year Ended March 31, 2022

2018
(Year ended March 31)

2.9369* Calculated using the same criteria as the fiscal year ended March 31, 2019

<China>Company Information

While performance continued its strong recovery from the COVID-19 pandemic during the first half ofthe fiscal year ended March 31, 2022, the speed of growth slowed slightly on entering the second half.
In the wake of the pandemic, consumer shopping style has shifted greatly toward e-commerce. As areaction to this, brick and mortar performance has declined significantly. This has created headwinds for
the Company, as a large portion of our sales does not yet take place via e-commerce channels.
In China, e-commerce sales channels have become even more segmented, with social media platforms
recently gaining popularity with consumers. In response to this, we have opened an official Mandom
shop on an e-commerce site, which also serves as a social media platform for posting short videos, andstarted online sales to consumers.

<Malaysia>
In the third quarter (July-September), results declined significantly on the resurgence of COVID-19 inThailand and Malaysia. However, as in Indonesia, the situation improved in the fourth quarter (OctoberDecember), with a strong recovery from November in particular. In the fourth quarter alone, both
Malaysian group companies MMSB (Mandom (Malaysia) Sdn. Bhd.) and ACGI experienced high growthof over 30%, and the trend is expected to continue.

Official shop on an e-commerce site withsocial media features in China

Mandom Report 202207