Materiality:

Strengths and initiatives to help

“Creating an easy-to-start grooming culture”
We at Mandom aim to be a company that is dedicated to service by proposing concepts born from the day-to-day lives of consumers
as genuine value through our “human-oriented” approach.
Dedication to Service (Oyakudachi) has two aspects: “depth” in terms of how much satisfaction can be provided to a single consumer,and “breadth” in terms of how many consumers can be satisfied. In the age of VUCA, where the future is uncertain and complex, andconsumersʼ needs and wants are becoming more and more diverse, proposing unique and one-of-a-kind products and services thatmeet their needs and wants will expand the “depth” of our Dedication to Service (Oyakudachi) and lead to the realization of well-being*
for as many consumers as possible and to Mandomʼs sustainable growth.
Mandom has always been and will continue to be committed to our original concept of “Health, Cleanliness, Beauty and Fun” that is,the basic parts of “Health, Cleanliness and Beauty” combined with “Fun,” and we will make consumers have fun and feel satisfied witheveryday life through products and services that only Mandom can provide.

Strengths of Mandom 1

Only One Marketing
Proposing products that lower taboo lines to freely
enjoy cosmetic actions
The Mandom Group pursues a unique marketing model in which weconstantly interact with and give care to consumers. This is in order to meettheir latent needs and wants and guide their discoveries and feelings undera marketing philosophy of “Only One Marketing through Consumer-led
Lifestyle Value Creation.”
For example, in 1989, when it was considered a given that cosmetics had

1LÚCIDO, a fragrance-free brand (launched in 1989)

2

GATSBY Facial Cleansing Wipes (launched in 1996)

3

GATSBY Hair Color Series (launched in 2001)

fragrances, Mandom launched the fragrance-free brand LÚCIDO in
response to the wants of consumers who said they could not use fragrantcosmetics because of their professions, or that the fragrance of cosmetics
bothered them because they were particular about the fragrance they wore.
In 1996, “GATSBY Facial Cleansing Wipes” were launched to meet thewant to wash and thoroughly refresh oneʼs face while on the go.
This product introduced the grooming habit of cleansing oneʼs face withwipes, which had not existed until then.
This was followed by the release of body cleansing wipes that easily wipeaway perspiration and provides a refreshing sensation as a body careproduct for the hot and humid Japanese summer.
In addition to proposing a new grooming habit, we expanded the sheet care
category in the menʼs cosmetics market.
In 2001, we launched the GATSBY hair color series for men with dark hairto accommodate the rapidly-increasing want among young men to maketheir hair a lighter color.
This series made it easier for men to color their hair and has led to thespread of hair coloring as a fashionable daily activity for young men.
In this manner, we have created several new markets for menʼs cosmetics.

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Mandom Report 2023

This is true not only for menʼs cosmetics, but also for womenʼs cosmetics.
Against the backdrop of an increase in the number of busy women with
About Mandom

the progress of women in society, such as working women, working
mothers, and solo-parenting mothers, we proposed a water cleansing
product that can perform cleansing, washing, and toning in a single
wipe-off, regardless of location, to meet the wants of women who aretired and want to go to bed immediately and who do not have time forcleansing. This product is now widely distributed not only in Japan but

4

Bifesta water cleansing (launched in 2011)

also in other Asian countries.
Value Creation Story

Under the philosophy of “Consumer-led Lifestyle Value Creation,” we have always been close to consumers, proposing new cosmetic
actions and creating markets in order to respond to the changing wants of consumers over time.
Consumers, either consciously or unconsciously, draw lines that define what acceptable cosmetics and cosmetic actions are andwhich ones cross into taboo territory. We believe that offering value propositions that encourage consumers to freely realize their own
individuality while enjoying cosmetic actions, free from such their stereotypes and current norms will lead to the realization of ourcorporate slogan of “BE ANYTHING, BE EVERYTHING.”

cosmetics

3. Hair coloring for men

your face and body evenwhen away from homewith sheet cosmetics.

Lowering taboo lines tomake cosmetic actions
more freely enjoyable– Creating new markets with new value proposition –Changing hair color is a partof womenʼs fashion. Whenmen do it, however, they arelikely to be seen as unserious.
(2001)

Cleansing requires a place towash up. Facial care issomething you do carefully after
washing your face twice, right?
(around 2010)

Performance for the Fiscal Year Ended March 31, 2022

for them to freely
enjoy coloring their
hair too.

2. Casually refresh both

Middle-Range Planning

Cosmetics being fragrant is to be
expected, but the fragrance gets inthe way of my perfume.
(1989)

Materiality

1. Fragrance-free

I would love to wash my faceor shower to refresh myself
away from home, but itʼs justnot feasible.
(1996)

4. Completely cleanse andmoisturize your faceanytime, anywhere justby wiping it.

Company Information

Mandom Report 202327

Materiality: “Creating an easy-to-start grooming culture”<Feature> Only One Marketing Topics– LÚCIDO-L: A popular, dear-and-near hair beauty cosmetics brand –Tackling the challenge of the hair care category and massmarketing LÚCIDO-L as a salon brandCasestudyLÚCIDO-LSince we launched it in 1993 as a hair styling brand, LÚCIDO-L has won overconsiderable recognition and popularity for its reliable quality and a newly-proposed
form. Today, we have a wide-ranging lineup of LÚCIDO-L products that go beyond
hair styling to hair coloring, hair care and other types of hair beauty cosmetics that
we have rolled out across Japan and in other Asian countries.
Below, we will introduce our initiatives in the hair care category, which is enjoying favorable sales growth at present.

A hair styling brand tackling the challenge of the hair care category
With LÚCIDO-L, we proposed styling products matched to trendy hair styles since initially releasing the series. Our products and theirconsiderable styling power, which constitute Mandomʼs original strength, were combined with recognition of those productsʼ highquality to win over women of a wide range of ages. From 2000 onward, alongside the entrenchment of hair coloring and styling
conducted with the use of hair irons and other thermal appliances, consumer awareness surrounding hair care grew, and the hair caremarket, driven by the likes of non-bath hair treatment, also grew.
Many a time, we had proposed non-bath hair treatment under the LÚCIDO-L brand as well. However, at the time, the hair care market
favored in-bath hair treatment, and we continued to struggle in our challenge of the hair care category for many years.

Mandomʼs Oil Treatment series becomes a hit
Then, in 2014, we turned our focus to argan oil, which had started becoming a target of attention at hair salons. As LÚCIDO-Lʼs image
as a hair care option was anemic relative to the sway carried by in-bath brands, we shifted to product proposals that carried a sense oftrendiness and quality.
At the time, argan oil was attracting attention for being plant-derived and having a considerable moisturizing feel. On the other hand, alarge number of hair oils that were launched amid the prevailing trend of natural hair styles felt heavy when used, and there was noshortage of consumers who were unable to effectively use the oils due to factors such as the difficulty in adjusting what part of thehair to use them on and how much to use. Another hurdle consumers encountered in buying the oils were that they were priced
somewhat highly. With that in mind, Mandom offered the “LÚCIDO-L Oil Treatment Series,” an approachable and easy-to-use productline containing argan oil, to general consumers as a series for mass distribution, which we specialize in.
In addition to offering this series with an affordable price point for many, we applied high-pressure treatment to the argan oil within toenhance the diffusibility of each strand of hair and give it a light, smoothfinish. Easy for novices to use as well, the series became hit items that werelauded on word-of-mouth websites as well.
Today, there is a greater number of items in the LÚCIDO-L Oil Treatment
series, which has growth into a leading series under that brand with over 17
million units shipped cumulatively.
This series played a considerable role in making argan oil a dear-and-near haircare item for many people and successfully turned it into a leading
mass-market trend. These and other factors translated into both greater salesof LÚCIDO-L products and a larger hair care market.

28

Mandom Report 2023About Mandom

Originating from hair salons: Acid heat treatment
In recent years, given the high damage caused by hair coloring and thermal devices such as hair and crimping irons and growing
demand for more beautiful hair, “acid heat treatment” has been touted as a means of improving hair quality, and has been enjoying
popularity as a popular treatment option at hair salons.
Value Creation Story

This option requires a technician at a hair salon to apply heat to hair using a hair iron in the treatment process, and typically exceeds¥10,000 in price. While relatively high-priced, it has a real sense of being effective and is thus a popular option.

Challenge of commercializing acid heat treatment as a home hair care productMateriality

Given that, taking a cue from the treatment offered at hair salons,
we launched the “LÚCIDO-L High Damage Repair Treatment Series”
containing acid heat treatment* ingredients in August 2022. Using aMandom Group company that supplies professional-use products andtechnologies to hair salons and leveraging our strengths from years ofhair research, we developed a formula that can be easily used at homewith ease and provides a truly genuine sense of treatment. WithLÚCIDO-L High Damage Repair Treatment series, we proposed items
that enable consumers to casually experience acid heat treatment as
part of their hair care and styling routine by applying the heat from adryer they normally use to dry their hair or hair iron they use to style
their hair to simulate the level of heat required in acid heat treatment.
* Levulinic acid

Middle-Range Planning

Offered our first acid heat treatment for mass distribution

Performance for the Fiscal Year Ended March 31, 2022

Even prior to the launch of this series, retailers also had highexpectations for this new, unprecedented proposal of making thepopular acid heat treatment at hair salons casually available atconsumersʼ homes. Stores carrying the series greatly exceeded ourtarget. Following launch, the series was considerably noted and praisedby highly trend-sensitive consumers as well, and was also a hot topic
on social media. With growth in awareness of acid heat treatment
showing no signs of slowing down, the market is expected to growfurther going forward.
Meanwhile, people in the Asian region are highly conscious of hair
beauty as well. The series is performing strongly in Taiwan, where werolled it out early on through a Mandom Group company, and we intend to further expand the rollout area within that region.
Additionally, in August 2023, we will add shampoo and treatment to the lineup to enhance it, and will work towards proposing thislineup as the first full-fledged in-bath series under the LÚCIDO-L brand.

Looking towards the further growth of LÚCIDO-LCompany Information

Our Oil Treatment series containing argan oil, which continued to perform favorably with little impact from the COVID-19 pandemic, aswell as our High Damage Repair Treatment series containing acid heat treatment ingredients, which we newly launched in 2022, helpedLÚCIDO-L reach its highest net sales on record during the fiscal year ended March 31, 2023.
Going forward, Mandom will continue to propose leading trends with speed and in ways that more and more people find approachable
and easy to use, and will work towards expanding its Dedication to Service (Oyakudachi) alongside creating new markets.

Mandom Report 202329Materiality: “Creating an easy-to-start grooming culture”

Strengths of Mandom 2Menʼs Cosmetics
Achievements and knowledge in the menʼs cosmetics field
Overwhelming presence in menʼs cosmetics since Tanchoand MANDOMAt Mandomʼs founding, we were known for Kintsuru Perfume.
Mandom did not start out specializing in menʼs cosmetics.
After launching hit products such as Tancho Tique and the MANDOM series, webegan to establish a strong presence in menʼs cosmetics.
PIXY, a series of cosmetics centered around makeup, has been rolled out in Indonesia since 1987. Mandom also globally launchedthe Bifesta cleansing and face wash brand in Japan and other Asian countries in 2010 onwards. Both of these series have been
performing well, experiencing expanding sales. However, even now the core brand of Mandom remains the menʼs GATSBY brand.
In order to satisfy the high expectations of male consumers, primarily in the long-selling GATSBY series and LÚCIDO cosmetic brandfor middle-aged men, Mandom has invested people, resources, and money to continue tracking changes in menʼs tastes and values.
We possess the advantage of having continuously conducted proprietary research on menʼs hair and skin.

GATSBY, our menʼs grooming brand enjoying tremendous popularity in Asia
Born in 1978, for over 40 years GATSBY has continuously delivered an enjoyable grooming experience to young men in their teensand 20s in various Asian countries. We offer a wide range of products in a variety of categories for all grooming situations, frompersonal grooming to fashion, including hair styling, hair coloring, skin care, shaving, body care, and fragrances.
GATSBY is currently available in all of the 12 areas where Mandom does business, including Japan.
Although GATSBYʼs brand philosophy is globally unified, different products are sold in Japan and other countries.
Needs or wants and the standard of living of local consumers differ between Japan and overseas countries; therefore, the content andselling price of the products are designed differently for each country.
As a result of focusing on the young male in our business expansion in Asia, not just with products but also with communication andin-store points of contact, the name recognition of the GATSBY brand is high in many countries, and it has penetrated to the point ofestablishing a number one position in the hair styling market. With the spread of social media, we will continue to offer products andvalue that can help men realize their ideal selves, in line with their ever-increasing awareness of fashion.

GATSBY brand awareness in major Asian cities (%)
GATSBY Japan for men
Cosmetics
Brand share*1

GATSBY Indonesia
Hair styling products
Brand share*2

No.1

No.1

GATSBY Japan for men
Hair styling products
Brand share*1

Total quantities ofGATSBY-brand products shipped bythe Mandom Group in FY2022

40% or higher

260 million units*1 Period: April 2022–March 2023; all business categories, monetary value (market data byMandom calculations)*2 Period: January 2022–December 2022; monetary value of brand sales (RMS Nielsen)

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Mandom Report 2023

72.9

Jakarta

60.7

ManilaJapan

48.8

Kuala Lumpur

43.9

Singapore

33.5

Bangkok

33.3

Hong Kong

28.5

Shanghai

27.7

Taipei22.5

Ho Chi Minh

18.8

Seoul

17.1
Mandom survey (2022)