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 lives of our customers as
genuine value through our humanistic approach.
Dedication to Service 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 and lead to the realization of wellness* 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.
* Wellness: Refers to the process of bridging the gap that exists between the current state and a state of well-being, which is being not only physically healthy but also mentally andsocially sound and healthy

Marketing That Originates from Consumer-led Lifestyle Value Creation

Consumers

Company

Dissatisfaction

Wants

Start
Concept

MarketProducts

Satisfaction

ProfitEnd

Products

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Mandom Report 2022

Strengths of Mandom 1
About Mandom

Only One Marketing
Dedication to Service (Oyakudachi) products thatalign with changes in lifestyles
The Mandom Group pursues a unique marketing model in which weconstantly interact with and give care to consumers. This is in order tomeet their latent needs and wants and guide their discoveries and feelings

Value Creation Story

under a marketing philosophy of “Only One Marketing throughConsumer-led Lifestyle Value Creation.”
For example, in 1989, when it was considered a given that cosmetics had

Lúcido, a fragrance-free brand (launched in 1989)

fragrances, Mandom launched the fragrance-free brand Lúcido in responseto the wants of consumers who said they could not use fragrant cosmetics
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 the want

Materiality

for a way to wash and 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 care

Gatsby Facial Cleansing Wipes (launched in 1996)

product for the hot and humid Japanese summer.
In addition to proposing a new grooming habit, we expanded the sheetcare category in the menʼs cosmetics market.
Middle-Range Planning

In 2001, in response to the rapidly growing trend among men to havelighter hair colors, we launched the Gatsby hair color series for men withdark hair, which made it easier for men to color their hair and has led tothe spread of hair coloring as a fashionable daily activity for young men.
In this manner, we have created several new markets for menʼs cosmetics.

Gatsby Hair Color Series (launched in 2001)

Performance for the Fiscal Year Ended March 31, 2022

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 withthe 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 are tired
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 also
in other Asian countries.

Company Information

Under the philosophy of “Consumer-led Lifestyle Value Creation,” we havealways been close to consumers, proposing new cosmetic actions andcreating new markets in order to respond to the changing wants ofconsumers over time.

Bifesta water cleansing (launched in 2011)

In this way, we offer value propositions that encourage consumers tofreely realize their own individuality, free from stereotypes and current
norms.

Mandom Report 202223

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

Only One Marketing Topics<Feature> The Challenge of Only One Marketing in the Age of Social Media

Casestudy“gatsby THE DESIGNER,” “CYQ”

The use of social media, which has become widespread with the popularization of smartphones, has brought about major changes in
the information gathering and transmission patterns of consumers, and consumer trends are now becoming borderless, spreading anddiversifying at an unprecedented speed.
In addition, the spread of COVID-19 has brought about major changes in consumersʼ values and lifestyles.
It is important to catch up with these changes in a timely manner and to propose new value that is in line with these changes.
Against this backdrop, in the fiscal year ended March 31, 2022, we implemented the “gatsby THE DESIGNER” and “CYQ” marketing
initiatives, which are unlike anything weʼve implemented in the past.

“gatsby THE DESIGNER,” a new cosmetics line that encourages free fashion beyond stereotypes
A cosmetics line that proposes a free design of the image of what one wants to be, which is diversifying as the definition of coolamong young men and the range of self-expression expands, was launched from the Gatsby cosmetics brand for young men in
October 2021 as “gatsby THE DESIGNER,” targeting a highly sensitive demographic that actively collects information on fashion andbeauty and tries out these trends.

Based on a deep understanding of both physical and mental characteristics, such as skin physiology and psychological characteristics
of makeup behavior, we propose a total solution for men in a wide range of categories, including makeup, skin care, and hair styling,utilizing our long-standing knowledge and technology in menʼs cosmetics and jointly developed with popular stylists.
For todayʼs young people, social media is the central contact point for all information, and it is through social media that trends areborn and spread.
The influence of social media is also great, and we have worked with popular stylists who have a representative world view of what
todayʼs young men want to be, paying close attention to the details of each item from this world view.
By supporting the wants of consumers who actively express their individuality freely, and encouraging new fashionable behavior byproposing new value and items, we will work together with our target consumers to create new cosmetic actions and trends thattranscend the boundaries of stereotypes. In terms of sales channels, we have begun sales at retailers, which have high contact withtarget consumers, and through our own e-commerce site to efficiently attract purchases based on information from social media. We
will analyze the process from consumer behavior through to purchase in order to connect this to further expansion in the future.

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Mandom Report 2022

About Mandom

Category
development

MakeupResponding to allmenʼs beauty needs in aStylingwide range of categories

Value Creation StoryNails

Hair coloring

Skin care

CYQ parts design cosmetics embodying the wants of generation Z
Materiality

In the field of womenʼs cosmetics, Mandom has also undertaken new initiatives that leverage the Groupʼs strength as a company withoperations in a wide area of Asia.
For young women who are digital natives and social natives, known as generation Z, it has become common practice to edit images
when uploading their own images on social media. They have concerns about the gap between their image-edited ideal selves and theirreal selves, and they want to realize their image-edited ideal selves in the real world as well.
The same is true for young women across borders in Asia. As a company that has marketing functions in a wide area of Asia, we took
advantage of this strength and formed a project team with mainly members of various nationalities from generation Z across divisions
in order to respond to the wants of generation Z. The result was CYQ parts design cosmetics.

Middle-Range Planning
Performance for the Fiscal Year Ended March 31, 2022

In the project, we communicated closely through means including online during the COVID-19 pandemic and had repeated discussions
and deliberations, and we developed products with a sense of urgency to propose products without any time lag in response to trends.
The first product to emerge from the project was a liquid lipstick that can be easily applied to make the face look smaller by shortening
the philtrum under the nose.

Company Information

As the term “cosmetic surgery-grade makeup” suggests, video content showing how to transform oneself into a different person using
techniques that do not seem like makeup has become popular not only in Japan but also in other Asian countries on YouTube andInstagram.
There is a demand for makeup methods and cosmetics that can easily and effortlessly achieve the ideal image-edited self in real life.
This is why we have developed a brand that lies between traditional cosmetics and cosmetic surgery, focusing on parts of the bodythat have not often been proposed before, and on changing the impression of the appearance easily and effectively.
Starting with “CYQ Cupid Lip” which was released in May 2022, we plan to expand the development of CYQ parts design cosmetics
that propose new value to meet the wants of generation Z in the future, starting with the second and third products.

Mandom Report 2022

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

Strengths of Mandom 2

Menʼs Cosmetics
Achievements and knowledge in the menʼs cosmetics field
Overwhelming presence in menʼs cosmetics since Tancho and 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, we began to establish a strong presence in menʼscosmetics. PIXY, a series of cosmetics centered around makeup, has been rolled out in Indonesia since 1987. Mandom also globallylaunched the Bifesta cleansing and face wash brand in Japan and other Asian countries in 2010 onwards. Both of these series havebeen 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 brand for
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 teens and20s in various Asian countries. We offer a wide range of products in a variety of categories for all grooming situations, from personal
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.
Gatsby products made at factories in Japan are mainly sold in countries with high GDP per capita, such as Japan and NIEs, the Gatsby
products made in Indonesian factories are mainly sold in ASEAN countries where income levels are lower. In China, Gatsby products
made at our Chinese factories are sold.
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 (%)
83.0

Manila79.3

Jakarta

60.8

Japan

Gatsby offers a wide range of categories both in Japan and overseas

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Mandom Report 2022

Singapore

58.1

Kuala Lumpur

57.1

Bangkok

45.9

Hong Kong

43.2

Taipei29.5

Shanghai28.3

Ho Chi Minh

17.0

Seoul

16.4
Mandom survey (2021)