Mandom Report 2022

FY2022 Ceremony for New Employees

Editorial Policy

The Mandom Group has been publishing the Mandom
Report (integrated report) since 2018 to help our
stakeholders understand our medium- to long-term
efforts at value creation. Mandom Report also
integrates the previously separate KohDoh Report(CSR report). This has been done as part of our workon providing integrated information as a company andto enhance the non-financial information we provide.
When editing this report, we put together a briefsummary focused on information that is highly
important for improving Mandomʼs corporate value
while referring to the “Guidance for Collaborative
Value Creation” released by the Ministry of Economy,
Trade and Industry and other resources.

Reporting Period

FY2021 (ended March 31, 2022)● Mandom and Group companies in Japan: April 1, 2021-March 31, 2022
● Overseas Group companies: January 1, 2021-December 31, 2021
Note: To the extent it is possible, the latest information at the time this report was written is included.

Reference Guidelines“International <IR> Framework”“Guidance for Collaborative Value Creation” released by the Ministryof Economy, Trade, and Industry● “ISO 26000:2010̶Guidance on Social Responsibility” edited by
Japanese Standards Association● “Environmental Reporting Guidelines (2018 Version)” released by Ministry of theEnvironment, Japan● “GRI Standards” released by GRI (Global Reporting Initiative)●●

Visit our website for more detailed information.
●●

IR Information: https://www.mandom.co.jp/en/ir/
CSR Information: https://www.mandom.co.jp/en/csr/

Report Coverage

Mandom Corporation and its affiliated companies
both inside and outside Japan

Note: For details, please see p. 80 “Mandom Group Companies.”

Regarding Forward-Looking Statements:
This annual report contains forward-looking statements concerning Mandomʼs current plans,
strategies, beliefs and performance. These forward-looking statements include statements
other than those based on historical fact and represent the assumptions and beliefs ofmanagement 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 to a number of foreseen and unforeseen risks and uncertainties. Allamounts have been rounded down to the nearest whole unit.

Corporate Slogan

Logo (symbol + company logo)〈 意味 〉なりたい自分に、全部なろう。
We of course want to help consumers by helping themachieve good looks and beauty through the use ofcosmetics, but we also want to help consumers withhesitation to break through the resignation andassumption that they have to sacrifice something inorder to be the person they want to be. We believe that
our new “Dedication to Service (OYAKUDACHI)” in the
future is to support all consumers to “live their own
lives” and also to sustainably create a society in which
they can achieve this and which is close to their ideals.

Human-oriented

Smile

mandom

We simply express our desire to continue to contribute asa company and “dedicate” in the creation of value to ourstakeholders, including our employees.
We have added these three together. “Human-oriented,”
the core of the Mandomʼs mission and the “M” in
Mandom, which together with “Smile,” can create smiles
that can be shared by anyone, regardless of race, country
or region, age or gender.

Contents
About Mandom
̶From the Past to the Present Mandom̶

02 Mission Framework
04 Dedication to Service (Oyakudachi)
Continuing Constantly Since
Founding
06 Mandom Group Business Areas
08 Brands of the Mandom Group

Value Creation Story̶From the Present to the Future Mandom̶

10 Top Message
16 Mandom Groupʼs Human-Oriented
Value Creation Model
18 Invested Capital and Value Provided
by Value Creation Model
20 Materiality and Sustainability
Strategy of the Mandom GroupStrengths and Initiatives to Help Materiality
̶From the Present to the Future Mandom̶

22 Strengths and initiatives to help “Creating
an easy-to-enjoy grooming culture”
24 <Feature> The Challenge of Only One
Marketing in the Age of Social
Media
27 Strengths and initiatives to help “Expanding
Dedication to Service to a diversity of consumers”
30 Strengths and initiatives to help “Realizing
mutual growth of employees and the company”
32 <Feature> Human Capital Initiatives
35 Strengths and initiatives to help “Actions
for sustainable global environment”
39 Strengths and initiatives to help
“Sustainable procurement of raw materials”
42 Strengths and initiatives to help
“Maintaining/enhancing the corporate base”
45 Corporate Governance
52 Introduction of Officers
54 ComplianceMiddle-Range Planning
56 13th Middle-Range Planning “MP-13”
and positioning of “VISION2027”
58 Look Back at Previous Middle-Range Planning
59 Outline of “MP-13 (April 2021 through March 2024)”
60 Look Back on the Fiscal Year Ended March 31, 2022
62 <Feature> Promotion of Digital Transformation
64 Financial Strategy

Performance for the Fiscal Year Ended March 31, 2022
66 Analyses of Management and Finances
68 Financial and Non-financial Highlights
70 11-Year Consolidated Financial and Nonfinancial Highlights
72 Consolidated Financial Statements

Company Information
78 Mandom Group Detailed History
80 Mandom Group Companies
81 Company Outline / Stock andShareholder Information
Mandom Report 2022

01

02

Mandom Report 2022

Mandom Report 2022

03

Dedication to Service (Oyakudachi) Continuing Constantly
Shinpachiro Nishimura, the founder, believed that spreading cosmetics would serve society as Dedication toService (Oyakudachi) under the principle of “High-quality and low-cost products*1.”
Since then, the Company has believed that Dedication to Services (Oyakudachi) for consumers through cosmetics
is its reason for existence, and expanded Oyakudachi in terms of quantity (sales) in Japan and Asia through Only
One Marketing from the perspective of Consumer-led Lifestyle Value Creation, and the creation of new markets
that propose new grooming behaviors.
*1 To provide consumers with products of unique quality and value at an appropriate price, and to obtain profit by the spread of the products, thereby maintaining social significance.

Founder
Shinpachiro NishimuraFounded in 1927
Founding Spirit

1982 following the Second Business Crisis
Pursuit of the Companyʼs reason for existence

Spreading high-quality andlow-cost products“Dedication to Service (Oyakudachi)
for consumers”

Spreading high-quality products andhaving them used by as many people aspossible will lead to social contribution.

Identifying lifestyle wants in consumersʼ daily lives and helping
them feel a little bit of magic, to feel positive and cheerful,through cleaning their body, grooming, and dressing neatly.

■ Domestic net sales■ Overseas net sales*2 Fiscal year ended March 31, 2019: Some items that had been treated as expenses have been deductedfrom net sales at overseas consolidated subsidiaries included in financial statements conforming to IFRS.
*3 Fiscal year ended March 31, 2022: Some items that had been treated as expenses have been deductedfrom net sales of the Japan segment in order to apply the Accounting Standard for Revenue Recognition(ASBJ Statement No. 29), etc. and other accounting standards.

1920’s - 50’s
43rd)

1960’s53rd)(1st -(44th -

1927
Established Kintsuru
Perfume Corporation

1970’s
63rd)(54th -

1980’s
73rd)

1990’
83

(64th -

(74th -

1960ʼs First Business Crisis

1980 Second Business Crisis

Alcohol-based liquid hair styling products
came to market
Performance of the Company was sluggish
due to being unable to respond to changes in
consumer wants as a result of not letting goof the success of tique and pomade

Transitioned to a direct sales structure in
1978, but with ballooning costs, things cameto a standstill in two years, and eventually thedecision was made to return to sales throughdistributors.
The crisis left a long-standing impact, particularly
with respect to having to reduce personnel.

1933

1970

1982

Launched Tancho Tique

Launched the Mandom Series

Commenced the first MP
Developed Mandom terminology
such as “Oyakudachi (Dedication
to Service)” and “Seikatsusha(Consumers).”▲

Overseas
Business

04

Mandom Report 2022

1958

1969

Commenced operations at
technical tie-up in the Philippines

Established a joint
venture in Indonesia

Strengthened Overseas Developments
1988

1990

Singapore

Thailand

1989

1992

TaiwanThe Philippines

Since Founding

2021
Launched the new VI andcorporate slogan

80,000*2“Human-Oriented Company” [Human to Human]

About Mandom

2017, the 90th anniversary of the founding of the Company
Evolve the Companyʼs reason for existence

Mandom is a “human-oriented company.”
Guided by our original concepts of Health, Cleanliness &Beauty, we reach boldly beyond the norm to bring wonder andinspiration to peopleʼs everyday lives.
60,000*3

Value Creation Story

40,000What the Company
aspires to be
in 2027, the 100th
anniversary of
its founding

VISION2027➡ P.5620,000Materiality

105th fiscal year

(ended March 31, 2022)

0’s

Consolidated
base

rd)

2000’s
93rd)

2010’s2020’s(94th - 103rd)(84th -

0 (Millions of yen)

(104th -)1996

Commenced the first over-the-countersales of Gatsby hair foam for men

Launched Gatsby facial cleansing paper
Introduced a new way of grooming

1989

2001

Launched Lúcido,
a lineup of fragrance-free menʼs
cosmetics products, unprecedented in
the industry

Launched Gatsby Hair Color series,
developing a market for menʼs hair color
products

2006

1994

Launched Gatsby Moving Rubber,which became a signature series in themenʼs styling market

Launched menʼs hair styling productGatsby Water Gloss in Indonesia
Expanded product line for various sizes;
became widely known, primarily for thesachet-size version

2011
Launched Bifesta, a cosmetics brand for
women
Full-scale introduction to the skincare market

1995
Launched womenʼs cosmetic item Pixy
Two Way Cake in Indonesia

2019
The first M&A since founding

1997

2008

2015

Hong Kong

Malaysia

China

Vietnam

1996

1999

2012

China

South Korea

India➡ P.27

Acquired shares of ACG International
Sdn. Bhd.

(Mandomʼs Six Strengths)

Only One
MarketingKnowledge in Menʼs
Cosmetics Field
Overseas
Expansion Focusedon Asia“Unique Research”
and “Reliable
Technology”

Production Systemwith Three
Manufacturing
Bases

Company Information

1993

Acquired
AssetsPerformance for the Fiscal Year Ended March 31, 2022

1985

Middle-Range Planning

Created a market and expanded results by offering new grooming options

Highly-Engaged
Human Resources(Employees)➡ From P.23

Mandom Report 2022

05

Mandom Group Business Areas
Other overseas
The Mandom Group is developing its global operations, particularly
in 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%

Japan

Net 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

▲

Japan

Net 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)

*1

11.6
3,014

8.8

6.5

*2

35,541-255 -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 year

This 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 new
products 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)

2.8

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)

Performance for the Fiscal Year Ended March 31, 2022

2018
(Year ended March 31)

2.9

369

* 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Brands of the Mandom Group
Other businesses

12.6%

▲

Composition of net
sales by business

The Mandom Group concentrates its operations in
two cosmetics businesses̶menʼs business andWomenʼs businesswomenʼs business̶through which it responds

29.1%

carefully with a wide range of brands to meet
consumer demands.

Menʼs businessNet sales

58.3%¥57,361million

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

Net sales (Millions of yen)Menʼs business▲■ GATSBY ■ LÚCIDO ■ Other

51,147

Business offering a range of products including menʼs everyday
grooming products as well as general fashion items, such as hair

49,580 47,388
37,88949,542*1

35,511*2

styling, face care, and body care products
Target categories: Hair styling/hair coloring/scalp care/face care/body care

33,461

2018(Year ended March 31)

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

2021(Year ended March 31)

YoY change DOWN

5.8%⬇

2022
(Year ended March 31)*1 Calculated using the same criteria as the fiscal year ended March 31, 2019
*2 Calculated using the same criteria as the fiscal year ended March 31, 2022

Note: Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated
subsidiaries included in financial statements conforming to IFRS.
From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. and other accounting standards.

Japan Overseas

Other overseas

Composition of
net sales byregion in 2022
(Year ended March 31)

Indonesia

Japan

This is a menʼs cosmetics brand that always offers stylishness
for the times. Rolling out horizontally across Asia as a core brandof the Mandom Group.

Japan Overseas

Other overseas

Composition of
net sales byregion in 2022
(Year ended March 31)

A “smart aging cosmetic brand” for the fashion andgrooming of middle-aged men 40 and up.

08

Mandom Report 2022

Japan

▲

Overseas Development Regions (as of May 31, 2022)
Japan

Indonesia

Singapore

TaiwanVietnam

China

India

GATSBYLÚCIDO

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Hong Kong South Korea Malaysia Philippines Thailand●●

About MandomMenʼs business

Womenʼs business

Bifesta
PIXYLÚCIDO-L
Pucelle

●

●

●

●

●

Value Creation Story▲

Net sales (Millions of yen)

Womenʼs business▲■ Bifesta ■ PIXY ■ LÚCIDO-L ■ Pucelle ■ Other

Business offering a range of products spanning everyday womenʼsgrooming and fashion items, including hair styling products, body care

23,08322,43325,974
18,78322,311*1

16,685*2

17,890products, and products to bring a splash of color to the beauty lives of

YoY change DOWN

6.7%⬇

women, such as make-up and skin care items
2018(Year ended March 31)

Target categories: Make-up/skin care/hair styling/hair coloring/hair treatment/body care

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

2021(Year ended March 31)

2022(Year ended March 31)
Materiality*1 Calculated using the same criteria as the fiscal year ended March 31, 2019
*2 Calculated using the same criteria as the fiscal year ended March 31, 2022

Note: Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated
subsidiaries included in financial statements conforming to IFRS.
From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc. and other accounting standards.

Japan Overseas

Overseas

Composition of
net sales byregion in 2022
(Year ended March 31)

Middle-Range Planning

Other overseas

Other overseas

Japan

Composition of
net sales byregion in 2022
(Year ended March 31)

Indonesia

A brand that utilizes the beauty, technology, and“Beautiful Skin Comes True,”

fashion sense of Japan to pull out the diverse beauty of Asian women.

it has fans in Japan and various other Asian countries.

Rolling out in Indonesia and certain other countries.

Japan Overseas

Performance for the Fiscal Year Ended March 31, 2022

As a brand with the concept ofOverseas
Other overseas

Other overseas

Indonesia
Indonesia
Japan

Composition of
net sales byregion in 2022
(Year ended March 31)

We continually offer new hair beauty

A brand of fragrances and body care products for young women who

cosmetics of reliable quality,

seek a cosmopolitan, cool beauty style. Centered on fragrances,rolling them out across Japan and other Asian countries.

rolling out in Indonesia and certain other countries.

Mandom Report 2022

Company Information

Composition of
net sales byregion in 2022
(Year ended March 31)

09

Top Message

were to spread an understanding of our medium- to

Look back at my first year as
President

10long-term strategic direction and share an awareness of
issues they felt in worksites. However, in an environment
with constraints on communication, I also felt that this was

I donʼt often use the word “busy” to describe my daily life,

a very meaningful opportunity to deepen our mutual

but it really felt like this year went by in a flash. The fiscal

understanding of personalities between myself and theyear ended March 31, 2022 was my first year as

employees. On the other hand, I felt a sense of

President. However, as the impact of the COVID-19

apprehension toward the fact that many employees were

pandemic continued to be felt, my activities were limited

concerned about taking on new challenges as the existing

to within Japan. I spent my time focusing on various

business model had been successful over a long period ofissues inside the company rather than looking at external

the last 30 to 40 years.

factors. This is my 15th year in Mandom, but there wereWe faced very disappointing results this year as we

still many employees I did not know in person, so I tookbooked the first operating loss since the second businessthis time to engage in dialogues with them. In the pastcrisis in the 1980s. However, under limited distribution

year, I had approximately 40 sessions and spoke with athat differed from the past, we launched products with a

total of 247 people, primarily officers. My main objectives

slightly different approach from past products, such as the

Mandom Report 2022

About Mandom

We will evolve Dedication toService (Oyakudachi) in the realm of Health,

Value Creation Story

Cleanliness, Beauty and Fun* to realize
the wellness of consumers across the globe.

Materiality

Mandom Corporation
President Executive Officer & Director

Ken Nishimura

important for the medium- to long-term. However, in thewomenʼs cosmetics product “CYQ.” I feel that this year

short-term, in the existing business model that comprises

made it easier to take on these sort of new challenges.

the majority of our sales, it is true that we must connect

These did not significantly contribute to overall sales orwith consumers in the mass distribution retail businesses

profits yet, but this year allowed us to plant various seeds

for them to purchase our products, primarily brands suchfor the medium- to long-term. It was a year that made me

as Gatsby, Bifesta, and Lúcido. I feel the practical issue isfeel that companies truly are just people as it is people

that we must prioritize and restore sales, profits, and thewho run organizations and business models.

channel that can be considered the framework for the

Performance for the Fiscal Year Ended March 31, 2022

menʼs cosmetic product “gatsby THE DESIGNER” and the

Middle-Range Planning* Mandomʼs business domains.
Embodying Mandomʼs unique style by entwining elements of “fun” with health, cleanliness, and beauty.

current business. I think it is extremely important to strikea balance between effectively shifting the business modeland improving results. In particular, Iʼve been having morediscussions with investors on how to restore the current
business. Right before the COVID-19 pandemic, weCompany Information

Management balance from the shortterm to medium- to long-term
perspective

increased depreciation by making a large investment to

As we consider how to restore our results , I believe thatreinforce the Fukusaki Factory. As such, we havenew challenges, including these planted seeds, will berecorded an operating loss on the statement of income.

Mandom Report 2022

11

However, looking at our cash flow statement, we haveorder to continue sustainable growth, we must also take amaintained free cash flow. We have enough capabilities tothorough look into new value. Therefore, we havemake investments and forecast an increase in dividends

identified important issues related with value creation infor this fiscal year. However, we plan to do this with ourour other materiality, “Future challenges to be addressed

free cash flow rather than procuring capital externally. I

by taking advantage of our strength and creating

believe we have sufficient ability to earn cash.

values.” In the age of VUCA*1 when the outlook is unclear

As a company, I feel we must commit to recording an

and complicated, we believe that the following threeoperating profit. On the other hand, rather than stubbornlymateriality will connect to value creation in order toand somewhat forcibly increasing operating profits for thecontinue providing Dedication to Service in society:short-term, I believe that making investments for future“Creating an easy-to-start grooming culture,” “Expanding

growth while maintaining a minimum of profitability andDedication to Service to a diversity of consumers,” andmanaging the company from a perspective of maximizing“Realizing mutual growth of employees and the company.”

company value for the medium- to long-term are*1 VUCA is an acronym which stands for volatility, uncertainty, complexity andnecessary to make all stakeholders, including

ambiguity.

shareholders and employees, the most happy.
Global affairs have become uncertain since February ofthis year, causing costs of raw materials andtransportation costs to rise significantly. Naturally, ourcompany also began to be influenced. Comparing

12

Mandomʼs
Only One Marketing

consumer prices in the Euro zone, the US, and Japan withMandom has generated various value until now throughthe index chart of raw material prices, Europe and the US

Only One Marketing. When asked what Mandomʼs Only

saw prices clearly linked and rising while only Japanʼs

One Marketing is, I answer that it means focusing on

consumer prices were even. Here I felt the difference“Consumer-led Lifestyle Value Creation.” Mandomʼsbetween Japanese companies and companies in Europe

products and services have connections with the daily

and the US. However, our basic stance as a company inlives of consumers. We identify their wants from their

responding to inflated costs is to propose added value

everyday dissatisfactions and hopes, and provide

through new value creation rather than simply raise prices

products and services backed by proprietary, effective

to meet the cost level.

technology to satisfy our consumers. However, the world

Materiality in our company is largely comprised of two

now is full of products and there are fewer dissatisfactions

major themes. First, “Issues to be addressed to realize ain everyday life. As lifestyles and values become moresustainable society and company.” This refers to social

diverse, it is more difficult to identify wants of consumers.

issues such as fair trade in raw material procurement andUnder these circumstances, we must be sensitive to notenvironmental issues such as climate change and plastics

overlook the smallest changes among consumers andin the ocean. These are issues for Mandom to coexist

remain aware that consumer wants are also mental

within society. However, these issues have become more

instead of physical. As I spoke about in last yearʼscomplex in recent years due to these global uncertainties I

message, there is a growing need to strengthen andreferred to earlier, causing trouble for stable procurement.

exercise the two abilities of creativity and imagination*2.

We are conducting various initiatives because we must

When discussing Mandomʼs Only One Marketing, the four

properly address these important issues. However, inwords “Health,” “Cleanliness,” “Beauty,” and “Fun” are

Mandom Report 2022

cosmetic surgery to allow any consumer to do this with awords often spoken by companies closely associated withsingle cosmetic product.

the beauty industry. However, “Fun” is a concept unique*2 Imagination and creativity: Imagination is the ability to accurately envision theto Mandom. This speaks not only about fun itself, but also

issues. Creativity is the ability to combine or pick up resources to deliver

the idea of enjoying using or spending time with a product.

About Mandom

very important. “Health,” “Cleanliness,” and “Beauty” aresmiles and happiness of consumers, as well as their dissatisfactions, to uncoverhappiness to consumers and solve their dissatisfactions.

This idea of “Fun” can be seen in the concepts, packaging,
provided by our company. I believe this desire to provide
more fun and better products to consumers is passed
down in Mandomʼs Only One Marketing.
For example, the facial cleansing brand Bifesta was born

Value Creation Story

and advertising slogans for the products and services

Aiming to be a singular cosmetics
company
As we showed in our long-term vision “VISION2027,” weʻall-rounderʼ).” We would like to operate with agility while

the bathroom. This cleansing product allows them toproactively making new proposals. In the recent cosmetics

remove the makeup without water by just swabbing withmarket, startups with the desire to attempt interesting

cotton, so they can then fall asleep as is. In cosmetics,

initiatives despite a small scale have been entering fromthere is a functional approach and an approach that solves

niche fields. I believe that it may be possible to do

dissatisfactions that consumers have. Bifesta is a goodsomething similar in our womenʼs cosmetics. At first,

example of the second approach. We try to empathize

there might be few purchasing opportunities forwith how our customers may feel on ordinary days, and I

consumers to buy just because it is a Mandom product.

think it is good to provide cosmetics that allow them to

However, I think another way to reach consumers is fortake it easy for the day on those days they want to let gothem to discover an interesting product and see only after

a little. I think it is good for there to be diversity in thetheir purchase that they bought a Mandom productpursuit of beauty. This is a human approach that is very

without realizing it.

fitting for Mandom.

I would like to continue to utilize our strengths in menʼs

The recently released makeup product CYQ was

cosmetics. Since its launch, Gatsby has been loved bydeveloped by employees from Indonesia, Hong Kong,

young consumers for 44 years. Along with Lúcido, a

China, and Japan, primarily generation Z employees in

product for men from their 40s to middle age, they havetheir 20s. Generation Z uses social media to communicate

become our flagship brands. Looking at the future menʼsa lot. Nowadays, there are apps that make it look likecosmetics market, I thought we should expand the range

theyʼre wearing natural makeup, helping them expressof our target and increase our product categories,

their best selves. These people want to recreate or comeprimarily among young people. We can expect the number

closer to their best digital selves in their real lives. Asof used items and consumer spending per person tosuch, “cosmetic surgery-grade makeup” has become

increase, so I would like to continue strengthening thispopular on sites like YouTube. At least in Asia, this hasarea. From a product portfolio perspective, we must adopt

become a common topic that crosses borders. Therefore,

approaches toward our target that match our investments

we are proposing a new genre called “parts designin technology and production facilities for the skin carecosmetics” that lies between traditional cosmetics andand makeup markets, which have grown in recent years,

Mandom Report 2022

Company Information

through the time-consuming effort of removing makeup in

Performance for the Fiscal Year Ended March 31, 2022

immediately after coming home tired and not going

Middle-Range Planningdesire to become “a cosmetics company possessing
unique strengths in specialized areas (not an

Materiality

from the real issue of consumers wanting to go to bed

13along with our past strengths of hair styling and deodorant
products.
small in scale, but the market is massive. The categories

Thoughts on human resources as a“human-oriented” company

our company currently operates in are limited and we are

It may be our corporate culture, but I feel we have many

naturally strengthening that area as there is much potential

employees who like people and connections with people. I

for expansion. For the recent well-being market, we aim tothink our company cannot become strong and improve if

provide services that are not limited to cosmetics toour employees donʼt come together to be intellectuallyreflect Dedication to Service that means creating

charged. I have been stating in various places and at

comfortable societies and ensuring the physical andvarious opportunities that our employees are the greatest

mental health of people. For example, it is possible tostrength of our company. We always make sure to have

expand our business by providing these services using

employees of the highest quality and we cannot save any

apps. In those cases, we will do so by utilizing open

expense in investing in people.

innovation and executing collaborations with external

The one quality I want to see in our employees the most iscompanies.

a spirit to take on challenges. I want employees to

In the hair styling field, I am confident that we are amongcontinue to have the will to improve and never give up

the top companies in the world with strong knowledge.

becoming their better selves. Due to the COVID-19

Apart from that, we also possess strength in technology

pandemic, our results have continued to be sluggish.

capable of effectively generating a cooling sensation by

Reflecting back, I think our mistake was not constantly

controlling the sensors in cells that exist in the skin called

considering what we could do to improve and take our

TRP channels. Last year, JAXA adopted our “Space

company to a higher level even when things were going

Shower Paper” that astronauts can use to keep theirwell. In that sense, our ideal employees are those with abodies clean while staying at the space station. This

positive outlook who actively and constantly look forward.

technology that cleans the body and gives a sense of cool

In addition, we want human resources with a specialty or

refreshment while using almost no alcohol at all can easily

area of excellence that can fortify any weak spots in ourbe adopted by people sensitive to alcohol and expanded

company.

to regions that cannot use alcohol. Since 2015, we have

As technology and various things are evolving in this era,

conducted research about sweat glands with an endowed

the skills demanded of employees are growing morechair at the Graduate School and School ofdiverse and advanced. We will need more DX specialists

Pharmaceutical Sciences at Osaka University. In 2021, we

and ESG specialists in the future. As each employee

established a research program in Kitasato Universityʼs

spreads their antennae to all directions and strengthens

School of Pharmacy and proceeded with skin research

their specialty or area of expertise, we must form a group

On the other hand, our sales of womenʼs cosmetics are14

that will lead to the products of the future. I think thatof these types of people who possess “career autonomy.”investments in technology will be one source of future

As both employees and the company become aware ofcompetitiveness so that we can achieve co-creation while

what employees want to do and what skills are needed

utilizing facilities and skilled external researchers, andmoving forward, we will provide opportunities to learn

boosting proprietary technology through open innovationsuch skills. Therefore, we are preparing to innovate ourin fundamental research in various fields, including

HR structure for this. We want all employees to be aware

academia.

of the know-how and skills that are demanded for each

Mandom Report 2022

take on. While results have become sluggish for the

department, they will know what skills they lack. We

moment, we aim for a mindset to proactively take on new

intend to create this sort of atmosphere by changing thechallenges in the company. Many of our ambitious

HR structure.

employees are working hard. From the medium- to

About Mandomrole. If an employee wants to do a certain job in a certain

long-term perspective, I am confident that our company
will once again return to a path toward solid growth andbe a company that provides Dedication to Service to

Value Creation Story

Conclusion

society and all our consumers. I promise that we will do

I believe that many of our stakeholders have faced difficult

just that. I hope that Mandom will be able to enrich theliving circumstances and painful experiences due to theworld through new value creation and expansion of our

COVID-19 pandemic. We truly appreciate your support

services in the cosmetics and beauty industries while also

for Mandom products and the business as a whole. As I

fulfilling our medium- to long-term corporate vision ofenter my second year as President, we face a turbulent

addressing ESG issues, including the global environment.

era and many internal issues. I believe that the years to

I thank you for your continued support.

come will be very challenging but extremely satisfying toMateriality
Middle-Range Planning
Performance for the Fiscal Year Ended March 31, 2022
Company Information

Mandom Report 2022

15

Mandom Groupʼs Human-Oriented Value Creation
Strengths of Mandom 1

E Environment

INPUT
Invested Capital
Details ➡ P.18

Only One Marketing throughConsumer-led Lifestyle Value Creation*1

Climate Change (CO2 emissions)●

Marine Plastic Problems●

Depletion of Natural Resources●

Depletion of Water Resources●

Increased Waste Materials●

Biodiversity Crisis

Natural Capital

Publicity andSales Promotion
Human Capital

Unique communications
that connect productswith consumers

Strengths of Mandom 3Intellectual CapitalPartnerships
Strong relationships with
suppliers/customers in andoutside Japan

Satisfaction

Consumers(Customers)

LatentDissatisfaction

Dedication of Service
through products
and services●“Human-Oriented”
Company
Creating new value through imagining
peopleʼs happiness and excitement
Strengths of Mandom 5

Procurement/Production
Production and supply systemthat allow high-quality andlow-cost products

Manufacturing
CapitalBusiness Activities
Financial Capital

Materiality➡ P.20Social Capital

Future challenges to be addressedby taking advantage of ourstrength and creating values

Creating aneasy-to-start
grooming culture

Issues to be addressed torealize a sustainable
society and company

Actions forsustainable global
environment

Expanding Dedication
to Service to adiversity of consumers

Sustainableprocurement of
raw materials

Mission Framework*1 The action principle of regarding consumers as the starting and ending points in the course of all corporate business activities to capturethem wonder, inspiration, and satisfaction*2 A way of thinking to pursue the uniqueness by constantly asking ourselves, “Whatʼs new?” and “What has changed?” with a close eye on

16

Mandom Report 2022

ModelS Society
●

●
●

●
●
●

OUTCOMEOUTPUT

Provision of Values to
Stakeholders
Details ➡ P.19

VISION
2027

Natural Capital(environmental output)●●

Product Planning

Employees

MP-14

Strengths of Mandom 2

Owned cosmetics brands

Consumers
MP-13

Men

Strengths of Mandom 4

Technologies to produce
safe and reliable products
to satisfy customers

Women

Shareholders/
Investors

Strengths of Mandom 6

Mandom human resources
Maintaining/enhancing thecorporate base

●

●

●

their latent demands, and offer

Government/
various organizations

Company Information●

Human resources who are highly
engaged with the Company
Human resources overflowing
with the spirit to take onchallenges
Human resources overflowing withintellectual curiosity and creativity
Human resource marketerswith strong understanding of
consumers

Regional society

Performance for the Fiscal Year Ended March 31, 2022

Realizing mutual
growth of employees
and the company

Middle-Range Planning

Customers/
Suppliers

Technologies/Research➡ P.56

Materiality

Creation of products pursuing“Something New” and*2“Something Different”●

CO2 Emissions (Scope 1 + 2
in Japan):4,859 t-CO2
Water discharge volume(Japan): 31,905m3
Waste disposal volume (Japan):
3,381t (recycling rate: 99.5%)

Realizing wellness for consumers around the globe

Declining Birthrate and Aging
Population (Japan)
Exponential Growth in Population (Global)
Global Emergence of Infectious Diseases
Human Rights Issues
Diversity
Work Style Reform
Work-Life Balance

Value Creation Story●

About Mandom

Unique sustainable management to balance enriching
daily life and solving social issues through our concepts
of Health, Cleanliness, Beauty and Fun

Resolving issues leading to medium-term growthchanging consumer lifestyles

Mandom Report 2022

17

Invested Capital and Value Provided by ValueINPUT

E Environment

Mandomʼs Invested Capital

NaturalCapital1

Human
Capital1Intellectual
Capital1

Manufacturing
CapitalEnergy input (domestic): 119,952 GJ
Electricity input (domestic): 10,244,000 Kwh
3 Water usage (domestic): 72,343 m3
4 Raw materials used in products (domestic): 7,667 t
5 Packaging and container materials (domestic): 6,311 t
2

Employees: 2,763 (Consolidated) / 643 (Non-consolidated)
Human resources with global mindset
3 Human resources who are interested in cosmetics
and are highly fashion conscious
2

Extensive knowledge related to menʼs cosmetics
Technology related to hair science research
3 Technology related to dermatology
4 Technology related to body odor science
5 Knowledge related to TRP channels
2

1

18

Financial
Capital1SocialCapital1

Mandom Report 2022

Three manufacturing sites that can supply products
in line with the predicted GDP level of each country
1) Japan: Provide high added value products, primarily to Japan and NIEs
2) Indonesia: Provide cost-competitive products, primarily to
Indonesia and ASEAN regions
3) China: Provide products mainly to China and Hong Kong while
playing a role of supplementing production for Group companies

2

Companies cooperating with production in andoutside Japan

Total assets: ¥85,767 million
Net assets: ¥69,051 million
3 Shareholdersʼ equity: ¥63,321 million (shareholdersʼ equity ratio: 73.8%)
4 Free cash flow
Cumulative amount of most recent five years: ¥22,115 million
2

Rolled out 13 Group companies in Asia
Collaboration with business partners (distributors) in Japan andoverseas and a product distribution system based on those partnerships
3 Business relationships with major retailers in Japan and Asia
4 External joint research institutions centered on universities
2“Human-Oriented”
Company

Business Activities
Materiality

Future challenges to be addressed by taking
advantage of our strength and creating values
Issues to be addressed to realize asustainable society and company

Mission Framework

Creation Model
Realizing wellness for
consumers around the globe
About Mandom

Unique sustainable management to balanceenriching daily life and solving social issues throughour concepts of Health, Cleanliness, Beauty and Fun

OUTCOMES Society

Provision of Values to Stakeholders
1

Consumers

1

Customers/
Suppliers

1

Shareholders/
Investors

1

Regional
society1

Shareholder returns through earnings growth
based on sound financial standing
2 Stable and continuous shareholder returns through dividends
3 Ongoing improvement of corporate value through growth investments
4 Highly transparent information disclosure
Eco-friendliness through business activities
Co-creation of a sustainable society throughcooperation with stakeholders
3 Contribute to job creation in development regionsin Asia2

1

New value creation through partnerships between
industry, government, and academia

2

Paying taxes from profit from business activities

Company Information

Government/
variousorganizations

Equal and fair trade relationships
Stable supply of products
3 Provision of products capable of providing healthy profits
4 Proposals for creating shopping areas with highsales efficiency
2

Performance for the Fiscal Year Ended March 31, 2022

Mandomhuman
resources

Provide value satisfying cultural fashion-consciousness
Provide safety and security through high-quality
products and services
3 Construct distribution environment and channels
to easily and comfortably obtain products
2

Middle-Range PlanningOwned
cosmetics
brandsCompany culture that allows both employees and the Company to grow
Development of human resources with career
autonomy who possess professional skills
3 Achievement of diverse human resources through the promotion of diversity
4 Establishment of work-life balance resulting from work style reform
2

Materiality

NaturalCapitalValue Creation Story

OUTPUT

Employees

Resolving issues leading to medium-term growth

Mandom Report 2022

19

Materiality and Sustainability Strategy of the
The Concept of Sustainability in Mandom Group
Mandom Groupʼs business activities are premised on the basisof sound and sustainable “environment (E)” and “society (S).”However, we are confronted with various issues that havebegun surfacing, such as climate change, declining biodiversity,marine plastic pollution, and human rights issues in supply
chains, which should be addressed appropriately by maintaining
solid “governance (G)” that supports the company.
Mandom upholds “social responsibility & sustainability” as
its philosophy, which itself is equivalent to sustainability of
Mandom Group. To solve social and environmental issues,
we will adhere to sustainable management (ESG management+ SDGs management), working out sustainability policies
and identifying material issues (materiality) in sustainability

to provide further Dedication to Service (Oyakudachi) to
consumers and create new corporate values through business
operation.
Social Responsibility & Sustainability
Our social responsibility extends beyond coexistence withsociety. We pay serious attention to the views and ideas ofpeople from all walks of life and initiate dialogues with themin recognition of and respect for the diversified values andlifestyles of all members of society.
We aim to create a better, more sustainable society byaddressing social issues from a global perspective and byworking out solutions with our stakeholders through our corebusinesses.

Sustainability Policies
We will promote unique sustainable management that ensures both enrichment
on an everyday basis and solution of social issues through our concepts ofHealth, Cleanliness, Beauty and Fun.

Material Issues (Materiality) in Sustainability
Materiality

Commitment

Future challenges to be addressed by taking advantage of our strength and creating values
Based on our original concept of “Health, Cleanliness, Beauty and Fun” that
Creating an easy-tostart grooming culture is, the basic parts of “Health, Cleanliness and Beauty” combined with “Fun,”➡ P.22

we will make consumers have fun and feel satisfied with everyday life throughproducts and services that only Mandom can provide.

Expanding Dedication to Service We will respond appropriately to changing senses of values and consumption
behavior of consumers and maintain an environment in which consumers canto a diversity of consumers➡ P.27

look and choose the products and services to provide Dedication to Service(Oyakudachi) to a billion people around the world.

Realizing mutual growth of
We will promote work-style reform to improve “productivity per unit,” “growth
employees and the company of individuals and job satisfaction” and “creativity” so that all employees as➡ P.30“human assets” may support the company and society.

Issues to be addressed to realize a sustainable society and company
Actions for sustainable Switching over to a recycling-based society in our view, we will take measures
to reduce our environmental burden at all stages of the life cycle of products,
global environment➡ P.35including less dependence on plastics. Regarding reduction of greenhouse gas
emissions, we hope to realize virtually zero greenhouse gas emissions by 2050.

Sustainable procurement We will procure palm oil, paper, etc. ethically. Our action ranges from protectionof forests and biodiversity to execution of corporate social responsibilityof raw materials➡ P.39Maintaining/enhancing thecorporate base➡ P.42by sustaining natural and labor environments and respecting human rights
throughout all supply chains.

Our everlasting mission is expanding and strengthening our Dedication toService, which is feasible on the assumption that we are a going concern.
Besides ensuring safety and security, we will strengthen the business systems
based on our philosophy.

▲

CSR Information
Mandom Group CSR > Sustainability Strategy and Materiality

20

Mandom Report 2022

Related SDGs

Mandom Group
Process of Identifying Key Issues (Materiality) Over Sustainability

1

List the threats/risks and opportunities surrounding the Company based on social trends

2

Extract themes of initiatives based on threats/risks and opportunities

About Mandom

Step
▼

Step
▼

Step

Themes of initiatives and identifying “key themes of initiatives” from the following matters

3・Key matters in Household & Personal Products sector set
by external organizations*▼・Degree of impact on the
Company business4

Have dialogues on the key themes of initiatives identified in STEP 3 with external experts (14 persons
across nine companies)

5

Submit the Key Issues (Materiality) Over Sustainability revised following the dialogues in STEP 4 to
Sustainability Promotion Committee (Sustainability Committee) for approval

Value Creation Story

Step・Framework of Company
Mission and each strategy

▼

Step

* External organizations: FTSE, MSCI, SASB

Sustainability Promotion System

Decisionmaking

Materiality

Group and holding discussions with relevant departments at
committee meetings and other meetings, we are strengthening
our efforts to contribute to the sustainable development ofsociety.

We have established a Sustainability Committee, headed by
the President Executive Officer with the aim of strengthening
the sustainability promotion system. While developing ourapproach for promoting the sustainability of the MandomSupervision

ESG Executive Committee

E

S

G
Middle-Range Planning

S
Occupational Health and Safety Committee
Total Risk Management Committee

G<Secretariat>

ESG Promotion
Division

Code of Conduct Promotion Committee
Activities carried out by other related departments

E

S

Performance for the Fiscal Year Ended March 31, 2022

Sustainability Committee

Board of Directorsʼ Meeting

Quality Assurance CommitteeG▲

CSR Information
Mandom Group CSR > Mandom Group Sustainability Promotion System

Framework for a Global Society and Sustainability of the Mandom Groupand strengthen our communication of ESG outside the Group.
In September 2015, we signed the UN Global Compact toexpress our support for its ten principles in four areas ofactivity, with the aim of allowing all MandomGroup employees to share in the values ofglobal society as a step toward sustainable
development, and to create new opportunities
to strengthen relations with a diverse andwide range of stakeholders.

Mandom Report 2022

Company Information

In the Mandom Group, one of the themes of our declaredinitiatives from FY2015 was similarly to strengthen our
CSR promotion system. In April 2015, we set up the CSR
Promotion Division, a corporate department dedicated to thistask. In April 2020, some functions of the CSR Promotion
Division were incorporated into the corporate planning functionin order to respond to the increasing demands for companies
in such areas, including eco-friendliness, social contribution,and governance functions, and the ESG Promotion Division
was newly established to handle the internal promotion of ESG

21

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

22

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 2022

23

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

Case
study

“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.

24

Mandom Report 2022

About Mandom

Category
development

MakeupResponding to allmenʼs beauty needs in a

Stylingwide range of categories

Value Creation Story

Nails

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 with
operations 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

25

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 menʼs
cosmetics. 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 and
20s 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 of
establishing 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

26

Mandom Report 2022

Singapore

58.1

Kuala Lumpur

57.1

Bangkok

45.9

Hong Kong

43.2

Taipei29.5

Shanghai

28.3

Ho Chi Minh

17.0

Seoul

16.4
Mandom survey (2021)

Materiality:
Strengths and initiatives to help

“Expanding Dedication to Service to a diversity of consumers”
About Mandom

We at Mandom aim to be a company that proposes unique and one-of-a-kind products and services not only in Japan and Asia, butalso globally. 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. We believe that approaching consumers through distribution
and communication suited to the times will expand the “breadth” of our Dedication to Service and realize the well-being of moreconsumers, which will lead to Mandomʼs sustainable growth.
We will respond appropriately to changing senses of values and consumption behavior of consumers and maintain an environment inwhich consumers can look and choose the products and services to provide Dedication to Service (Oyakudachi) to a billion people
around the world.

Value Creation Story

Strengths of Mandom 3

Overseas Expansion Focused on the Rapidly Growing Asia
The Mandom Group views overseas countries as markets rather than production bases. We have been engaged in overseas businesswith the policy to demonstrate Dedication to Service (Oyakudachi) to local consumers through our products. Our overseas expansion
began with the commencement of operations at Tancho Corporation, our technical tie-up in the Philippines, in 1958.

Materiality

Later, in 1969, we established a subsidiary in Indonesia via a joint venture. Since then, we have continued to expand our area of
operations, and today, we have 13 business companies in 11 areas in Asia. Furthermore, we export our products from Indonesia tomore than 90 countries, including in the Middle East and Africa, via Dubai (UAE), which is a global trade hub.

Middle-Range Planning

Since our founding, there has been a spirit of spreading Value for Money at Mandom. In our overseas operations, we target thegeneral public in each area. We are engaged in product development with a thorough emphasis on Consumer-led Lifestyle Value
Creation for the consumers in each area, not getting caught up in what products are popular in Japan. If there is a need or want among
consumers, we will boldly take up the challenge to roll out products in various categories, regardless of whether we have experience
with such categories in Japan, such as with the Pixy makeup brand in Indonesia.
Moreover, lifestyle types, income levels, and preferences about fragrances vary depending on the area. As of now, we have placed
development hubs in Indonesia, China, and South Korea in order to offer products that match the preferences and buying power ofconsumers and have built a distribution network that makes it easy for general public consumers to acquire our goods. Through theseand other efforts, we provide reasonably priced products and services that allow people to enjoy personal styling.

Performance for the Fiscal Year Ended March 31, 2022

Overseas Business Areas(The Companyʼs overseas operations are reported in two segments: Indonesia
and Overseas Other)

South Korea
China
Menʼs cosmetics in Japan and overseas

TaiwanHong Kong

India

Company Information

ThailandPhilippines
Vietnam
Malaysia
Singapore

Indonesia

Traditional trade store (The Philippines)

Mandom Report 2022

27

Materiality: Expanding Dedication to Service to a diversity of consumers

Strengths of Mandom 4“Unique Research” and “Reliable Technology”
to Respond to Consumer Wants
Conducting unique research to respond to diversifying consumer wants
Mandom Group conducts research and development focused on the three areas of “hair/scalp,” “skin,” and “deodorant/antiperspirant,”
an area which has gained significant interest in recent times.
Hair/scalp, skin, and deodorant/antiperspirant vary by individual depending on their race, gender, age, lifestyle, climate, and culture.
Just as each personʼs situation varies, so do their demands as consumers.
In order to respond to as many customer wants as possible, Mandom is proceeding with research and development in a wide range ofareas including the human body structure, function, and mechanisms in order to discover ingredients and apply them to products that
respond to these wants.
Recently, with input from JAXA (Japan Aerospace Exploration Agency), Mandom developed its “Gatsby Space Shower Paper,” which
incorporates Mandomʼs proprietary technology in an alcohol-free body paper suitable for astronautsʼ living environment in space. The
product has been chosen for use on the International Space Station.
Research
ExampleOur own technology delivers a pleasantly refreshing feeling while being alcohol-freeGatsby Space Shower Paper can be found aboard the International
Space Station (ISS). Itʼs our solution to one of the problems astronauts
experience living in space, namely that you “canʼt take a shower toclean up and refresh yourself” due to limited water supplies. Astronauts
living in the zero-gravity environment of space do two hours of physicaltraining daily to help prevent the weakening of muscles. Just wiping thesweat off afterwards doesnʼt provide the refreshing feeling of taking
a shower. Further, the use of “volatile water-soluble components” likeethanol is strictly regulated on the ISS. As these may adversely affect theperformance of space life support systems, while ethanol is commonlyused in regular body paper, we had to undertake the difficult process
of formulating an ethanol-free product that still delivered a cool andrefreshing feel.
Applying the Kai-tech technology resulting from Transient Receptor
Potential (TRP) channel* research that Mandom has been conducting
since 2005, we achieved an ethanol-free product thatʼs comfortable touse. The technology not only solves problems of life in space, but also
those of life here on land. We believe it will create new demand and a newmarket as it can be used in environments where alcohol is restricted andby people who donʼt want to put alcohol on their skin.

* Activated by temperature or chemical stimuli, special cell sensors that detect sensation different from five senses. It is one of “the receptors for temperature and touch,” and theresearch won the 2021 Nobel Prize in Physiology or Medicine.

Skin
Mandom has continuously conducted surveys and research
related to the condition of skin in both men and women andhas shown that there are unique conditions for the skin ofeach gender. In particular, we have carried out fully designed
surveys and research on men before anyone else in thecosmetics industry.
We discovered that menʼs skin has attributes different fromthat of womenʼs. In recent years, we have conducted researchand development which consider how skin condition makes
the “impression of appearance.” We have also made new
discoveries about women through research focusing on therelationship between the menstrual cycle and skin condition.

Deodorant/Antiperspirant
Body odor influences oneʼs impression and plays an importantrole in achieving smooth communication. Understanding bodyodor and taking appropriate care is directly linked to improving
quality of life and realizing wellness.
Mandom is engaged in research and development to propose
products best suited to various body odors, such as with thediscovery of new body odors like the “middle-aged body odor”
which had not been identified before and the development oftechnology to limit the function of substances which are thesource of body odor, including sweat.

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Mandom Report 2022

Research
ExampleConcealer is proven to instantly change the impression of
the skin of middle-aged men by reducing the appearance of
blotches, redness, and dry skinIn a joint study with Assistant Professor Koyo Nakamura and Professor Katsumi
Watanabe of the School of Science and Engineering, Waseda University, it was
found that the makeup effect of concealers tended to reduce the “noticeability ofblemishes,” “noticeability of scars,” and “redness of skin,” as well as the “apparent
age.” It was also found to have a stronger effect of reducing the appearance of
blotches close rather than far away, meaningfully improve oneʼs impression ofleadership, and make one appear younger when the face was slightly tilted to theside rather than facing straight forward.

Research
Example3D structure of sweat gland published in “Grayʼs Anatomy,”
the common anatomy textbook used worldwide

The (Mandom) Joint Research Program in the Laboratory of Advanced Cosmetic
Science at the Graduate School of Pharmaceutical Sciences at Osaka University
produced a new visualization of the detailed structure of human sweat glands andthe blood vessel structure that is the source of sweat production. This image waspublished in the “Skin” part of Chapter 1 of “Grayʼs Anatomy.”
Based on this knowledge, if ideas that solve sweat gland disorders are bornand our understanding of the basic mechanisms of sweat glad contraction andmaintenance of homeostasis are deepened, this will not only help in developmentof the next generation of antiperspirants, but also contribute to medical
developments through the elucidation and treatment of medical conditions related
to sweat, such as heat stroke and hyperhidrosis.

Strengths of Mandom 5

Three manufacturing bases which
support the Group▲

Product supply system comprised of three manufacturing baseswith different missions

About Mandom

Production and Supply System Which Seeks the Spreadof High-Quality and Low-Cost Products*1 Methodology of evaluating and rating the environmental performance of buildings

Fukusaki Factory (Japan)
Production volume: 126 million units

Materiality

Fukusaki Factory in Japan takes the lead of the Group as an innovation center withtechnological and production functions. It is the supply base to provide high quality “Madein Japan” womenʼs cosmetics, including Bifesta, to Asian countries.
In September 2021, we completed construction of a new production building to meet the
expected supply capacity, including domestic and overseas exports, by the time we reach
VISION 2027, the 100th anniversary of the Companyʼs founding.
Previously, there were some inefficiencies due to the transfer of items among five buildings
between delivery of raw materials and shipping of finished goods. With the new production
facility, each building is connected by a walkway that enables employees and raw materials
to pass indoors throughout, thereby improving efficiency.
In addition, the buildingʼs design is environmentally friendly, aiming to obtain an A
rating under the CASBEE*1 evaluation standard. We are also implementing IoT, AI, androbotization, to help improve accuracy, product quality and efficiency while saving labor.

Value Creation Story

Mandom Group reinforces the concept of products through Consumer-led Lifestyle Value
Creation in each Asian country we operate. Mandom has three manufacturing bases inJapan, Indonesia, and China in order to provide high-quality, reasonably priced products andservices which fit the changing income levels, wants, and tastes and lifestyle of consumers
in various countries.

Factory 1 (Indonesia)
Production volume: 324 million units

We are taking efforts to construct a system to substitute, provide complementary
production, and conduct shipping in cases when natural disasters or accidents occur atfactories.

Middle-Range Planning

Our Indonesian factory serves as a global production center. It has a container molding
facility and a production structure that allows it to manufacture high-quality, costcompetitive products. The factory primarily supplies ASEAN countries, but its global reachextends to many markets. Our factory in China primarily supplies products to the countryʼsdomestic market and provides additional production for the Group.

Zhongshan Factory (China)
Production volume: 14 million units
Performance for the Fiscal Year Ended March 31, 2022

Note: Production volume based on FY2021
performance

Product supply system which fits various GDP levels and local requirements
Group companies in each country sell products with their own unique product mix; importing products from Japan, Indonesia, andsome from China, tailored to the GDP levels of the countries, consumersʼ income levels, and lifestyles.
In each country, products produced in Japan are in a higher price zone, while products produced in Indonesia are in a more reasonable
price zone and products produced in China are between those two zones. This makes it possible to arrange the best product mix foreach country.

Comparison of net sales by manufacturing center

The Philippines

Malaysia

Singapore

Per capita nominal GDP

Per capita nominal GDP

Per capita nominal GDP

US$ 3,330

US$ 10,350

US$ 58,902*2*2Company Information■ Made in Japan■ Made in Indonesia■ Made in China
Note: Composition excluding
products from othercompanies*2*2 2020 values from the JETRO website
Mandom Report 2022

29

Materiality:
Strengths and initiatives to help

“Realizing mutual growth of employees and the company”
Companies should be able to accommodate diverse work styles, promote the career development of individual employees, andsupport the upgrading and shifting of skills, while providing diverse forms of employment and opportunities. At the same time,
employees should be continually learning once they have entered the workforce, acquiring new skill sets that suit the times, and growwhile leading the way in value creation through education, training, and working day-to-day.
Given this social environment, at Mandom employees must take responsibility as Human Assets to provide support for the Company
and society. The Company, in turn, shall seek to develop their capabilities as Human Assets and provide this diverse talent pool with
opportunities for motivation and active engagement. Employee well-being relies on working for a company that they can feel goodabout and where they can grow, and talented workers are important for the sustainable growth of the company.
In todayʼs era of rapidly changing values, both employee growth and company transformation are necessary.
At Mandom, we will promote work-style reform to improve “productivity per unit,” “growth of individuals and job satisfaction” and“creativity” so that all employees as “human assets” may support the company and society.

Strengths of Mandom 6

Highly-Engaged Employees
Efforts to share and instill the philosophy
FY2017 marked the start of our 12th Middle-Range Planning (MP-12), which was positioned as a period to develop the infrastructure
for realizing “VISION2027,” looking toward the 100th anniversary of the establishment of the Company. Within this, our priority was
the instilling and putting into practice of the corporate philosophy. In order to promote the understanding of the corporate philosophy
across all employees of Group Companies, the text for training has been translated into eight languages: Mandarin Chinese,
Cantonese, Korean, Vietnamese, Indonesian, and Thai, in addition to Japanese and English versions.
We educated all employees on this philosophy in three steps. First, we held assorted discussions through officersʼ gatherings. Next,
each department head was named an “evangelist,” and the program was conducted by the directors to the department heads.
Finally, the “evangelists” conducted the program in the form of workshops for the staff of their own departments.
The project was conducted over a short period of six months, targeting 1,009 employees in Japan and overseas (at the time of
implementation).

FY2021 survey results and Group response
Since 2018, we have been conducting annual employee surveys and providing feedback results to follow up on the degree ofawareness among employees.
Key points for 2021 are as follows.
Note: From FY2021, we have outsourced to a different company for our employee survey.
Of the 91 questions in total, 83 are comparable over time, and employee engagement results compared to the previous year are provided.

Items that showed
improvement comparedto FY2020

1 Sustainable engagement

Sample question Working for the Company inspires me to do my best

2 Cooperation/communication Sample question The Company encourages the sharing of information and ideas between departments

30

Mandom Report 2022and “inter-departmental collaboration” showed significant improvement,
though they usually tend to score lower. The shared groupware introducedin the 12th Middle-Range Planning (MP-12) and work style reforms thatutilize it likely helped contribute to an environment where information
sharing and communication can be done through online meetings whileworking from home or when face-to-face meetings are not possible, as
well as the way work is conducted with the platformʼs file sharing system.
Employee engagement▲

Looking at the results, employee engagement scores fell in FY2020. The
quality and frequency of communication from the Management Teamdeclined along with the onset of poor business performance and rapidchange to a system of remote work due to the COVID-19 pandemic. In
addition, there was a strong sense that the management team did notcommunicate properly with employees to help dispel their concerns,
leading to a feeling of crisis. In response, Supervisory Executive Officers
soon began sending video messages to employees once a month toshare what was currently being worked on in their respective areas of theCompany.
Engagement has shown a clear comeback in FY2021. Items regarding“a positive view of the companyʼs future” and a “high willingness tocontribute” also showed improved results. We are pleased that the
distribution of video messages and the Presidentʼs dialogue sessions
described later have had a positive effect. During the long COVID-19
pandemic, scores for the items “information sharing between departments”■ Mandom■ Global consumer
goods firms

2020

2021

1 Talent management

Sample question I have time for work-related training

2 Business promotion

Sample question There are no major obstacles in the way of carrying out my responsibilities

Items that did not show improvement from FY2021 included “not having
time for training,” “obstacles to carrying out responsibilities,” and“satisfaction with benefit programs,” revealing dissatisfaction among
employees. This may well be due to the growing interest of employees
in their career autonomy accompanying the change in working methods
due to COVID-19, changing perceptions of the challenges they face, andincreased awareness of the importance of benefits.
We are currently preparing to transition to the reform of our humanresources system* with the foundations of “human resources development
for career autonomy” and “job-based perspectives,” with the aim of full-scale
implementation from FY2023.
* MHRX: See p. 33

1 Leadership

Sample question The management team responds well to change

2 Business promotion

Sample question In our company, decision-making occurs at the right level of management

Both “Leadership” and “Business promotion” were items with scoresshowing much room for improvement, with the Company trailing global
consumer goods firms and other high-performing companies. In the
drastically changing business environment brought about by the COVID-19
pandemic, employees need reassurance through frequent communicationand transparency of Company and management team decision-making,strategies, and responses to change. It is also essential for employees

Value Creation Story

Items where we scoredlower than othercompanies

About Mandom

Items that did not show
improvement comparedto FY2020

to understand the direction the Company plans to move in, as well as
expectations towards their role, so they can regain pride and confidence
that they can grow and contribute.
Mandom has decided that officers will continue to release video messages
monthly in FY2022. By continuing these efforts and sharing what our
officers are thinking and their stance on various issues, we believe we canreassure our employees and alleviate the problems related to these items.

Dialogue sessions between the President and employees

when we make internal documents. I felt like we need toabandon doing things just based on precedent or habit, andstart seriously thinking about everything from scratch, from aperspective of overall optimization.
The second point regards communication issues that havebecome apparent. A downside of working remotely is that there
is a considerable risk of loss of motivation and anxiety becauseof the difficulty of noticing subtle changes in subordinatesand colleagues. I also felt like some things take a long time toresolve, when if you spoke face to face you would understandthe situation right away, and this causes stress to build up little
by little. Later on, I urged
our managers to focus on
creating an environment
where employees can be
happy doing their work.

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

[Nishimuraʼs comments]
In FY2021, a total of 247 people engaged in these groupdialogues, including Mandomʼs managers and group leaders(assistant managers), representatives of Group companies
in Japan and overseas, local overseas executives, andemployees with overseas placements. These highly meaningful
opportunities not only helped provide a more thoroughunderstanding of the direction of medium to long-term
strategies, which was a primary purpose, but also let people
share their own awareness of issues and deepen mutual
understanding.
During these dialogues, I noticed that participants were keenly
aware of the issues, and I felt extremely encouraged by theirgenuine desire to break with the status quo and do something
for the benefit of the Company. There are two points inparticular that I felt during our conversations. The first is that
the Company has a lot of “unspoken rules.” I was concernedthat sometimes we are careful about things that there arenʼteven rules about, and this causes all kinds of waste, like

Materiality

President Nishimura began dialogue sessions with employees in July 2021 when he took office with the objective of directcommunication that leads to mutual understanding and instillation of policies. While the COVID-19 situation overseas necessitated thatthese sessions be held remotely, in Japan they were all conducted face to face.

Company Information

As with the officer video messages mentioned above, the Company sees dialogue sessions as a meaningful opportunity to share with
employees and help them understand how top management views the Companyʼs current situation and its direction. Mandom plans tocontinue these dialogues in FY2022 and thereafter for approximately 500 employees over two years, targeting roughly 250 employees
for FY2022, consisting of employees with ages ranging from the teens to the 30s and those who will be new managers from this fiscal
year, and about 250 senior employees in their 40s and 50s for FY2023.

Initiatives developing and educating human resources
Please visit our website for information on standard training, employee education, and career support.

▲

CSR Information
Mandom Groupʼs CSR KohDoh Practices > Labor Practices > Human Resources Development

Mandom Report 2022

31

Materiality: Realizing mutual growth of employees and the company

Highly-Engaged Employees ̶Topics̶

<Feature> Human Capital Initiatives
Embarking on HR system reform to provide Dedication to Service (Oyakudachi) for consumers in response to achanging society

Mandomʼs human resources philosophy

Our human resources philosophy

Happy individuals make a happy company
Realizing wellness

Physical[Viewpoint][Approach]

MentalToward a brightandabundant life

Environmental Social Health

Safe
and
secure(active and energetic)

Physical andmental safety andsecurity are ensured

Taking on challenges is
encouraged and work offers
opportunities for growth

Engaging
work

Ease of work

Fair
and
impartial

Pleasant to work interms of location, time,and environment

Fair and impartial
treatment, transparent
standards

Background
Changes in external environment

・Age of volatility, uncertainty, complexity,
and ambiguity (VUCA)・Globalization ・Digitalization
・Changes in lifestyles, values, andcosmetics related behavior brought about
by the COVID-19 pandemic

Our vision“VISION2027”“A cosmetics company possessing
unique strengths in specialized areas(not an “all-rounder”).”

For the 100th anniversary of our founding, we have announced
our “VISION2027,” which says we are a cosmetics company possessing unique strengths in specialized areas (not an all-rounder).
The external environment the Company operates in is said to be in an age of volatility, uncertainty, complexity, and ambiguity (VUCA),
undergoing rapid change along with globalization and digitalization, with the future being uncertain and difficult to predict.
We realized that it was necessary to reform not only our human resources system but also its structure in order to properly adapt tosuch drastic changes and continue to provide Dedication to Service (Oyakudachi) for consumers as set forth in the Vision.

32

Mandom Report 2022

About Mandom

Overview of the reform of our human resources system (MHRX)MHRX: The big picture[Purpose] Creating an organization and developing human resources capable of change andtaking on challenges that create value for the Group
Aims of the Company
・Fair and impartial treatment that leads torewarding work and taking on challenges
・Utilization of human resources with a diversityof personalities and strengths
・Organizational (cultural) reform for change andtaking on challenges

Personnel affair system reform

Equalpartners

Career development

Talent management

Ranking
program

Employment

Remuneration
program

Supporting employees in following
their career paths

Evaluation

Posting

Training

Maximizing HR performance

Middle-Range Planning

Fair and impartial treatment andevaluation specific to role

Creating workplace
Career development
opportunities ×
assistanceMateriality

Treatment

Personnel
affairsystem
Evaluation
programValue Creation Story

Employee expectations
・Independent career development (career
autonomy)・Demonstrate strengths applicable outside thecompany・Creation of new value through diverse
personalities and strengths

MHRX (HR system reform starting with jobs and autonomy)
We have launched an initiative to reform our human resources system (MHRX), starting with jobs and autonomy.
MHRX stands for “Mandom Human Resource Transformation.”

Performance for the Fiscal Year Ended March 31, 2022

Based on the Groupʼs human resources philosophy of “Happy individuals make a happy company” that aims for growth of employees
together with growth of the Company, our purpose is to create an organization and develop human resources capable of change andtaking on challenges that create value for the Group.
It is a system based on “human resources development for career autonomy” and “job-based perspectives,” and consists of three
initiatives: (1) personnel affair system reform, (2) career development, and (3) talent management.
We aim to assemble a diverse group of talent with unique strengths, who take the initiative regarding their career development.

Toward a new personnel affair system

Company Information

Our first briefing was held regarding the transition to the new
personnel affair system, and we held about 80 small-scaledialogue sessions of between 5 and 10 people as follow-ups
between February and March 2022 to further employee
understanding.
The second briefing is held in June, and we continue to carefully
prepare for the smooth introduction of the program.
A small-scale dialogue session

Mandom Report 2022

33

Materiality: Realizing mutual growth of employees and the company

Health management
Health management is an important issue for the Company because
we understand that healthy employees enhance its value. In FY2020,
we formulated a “Basic Health Policy.” We also conduct healthmanagement initiatives so that our human resources, the companyʼsfoundation, can work with peace of mind; this means they and theirfamilies do not have to worry as much about health concerns.
In addition, we are investing in health through health-related goals of“reduction of absenteeism,” “improvement of presenteeism,” and “better
work engagement.” As indicators to measure these goals, we will set
and manage changes in employee awareness and behavior, as well as
their participation rates and level of satisfaction with our measures.

In recognition of our health-related efforts, we have been selectedunder the 2022 Certified Health & Productivity Management
Outstanding Organizations Recognition Program (large enterprise
category), a certification jointly implemented by the Ministry of
Economy, Trade and Industry (METI)
and Nippon Kenko Kaigi.
This program recognizes corporations
that practice particularly outstanding
health management with initiatives that
address local health issues and that are
in line with the health promotion effortsof Nippon Kenko Kaigi.

▲

CSR Information
Decent Work and Work-Life Balance

Selected under the 2022 Certified Health &Productivity Management Outstanding Organizations
Recognition Program (large enterprise category)

Ensuring diversity
We are trying to build an organizational system that embodies
diversity and inclusion in order to retain human resources withdiverse attributes and value systems, and enable them to reach
their full potential.
We announced the five Mandom Principles in May 2017, which
are a code of conduct that is followed by all Mandom personnel
at all times. These principles include “Active Employee
Engagement” and “Human Assets” that help guide our thoughts
and actions every day.

Promoting womenʼs participation

In April 2016, a Japanese law took effect, which obliges large
companies and local and central governments to set numericaltargets for hiring and promoting women. Mandom understands
that promotion of women is an important theme that draws
expectations and demands from a broad range of players inthe society. Accordingly, this theme has been reflected in“Achieving employee satisfaction (ES) and diversity.” In linewith the objectives and purposes of the law, Mandom willdevelop and execute a phased action plan to help realize
a society where women are promoted and encouraged toexercise their individuality and unleash their full potential. We
will also disclose our actions and keep the information up todate through the official
website of Ministry of
Health, Labour and Welfare
below.

Promoting hiring of people with disabilities
We aim to build an organization that encourages diversity
and inclusion. As part of this, we are creating workplaceenvironments that allow us to hire more people with disabilities
and facilitate their participation. At our head office we have
set up an accessible restroom on the ground floor, provided
handicapped parking spaces, and made the office hallways
wide enough for wheelchairs and other mobility equipment,
among our many efforts to ensure a “barrier-free” workplace.
At the Fukusaki Factory in 2014 we renovated the productionbuilding, and set up accessible and multi-purpose restrooms,
along with an accessible entrance and other measures. In
December 2018, our domestic subsidiary Mandom Will Corp.
(referred to below as “Mandom Will”) acquired certification asa Special Subsidiary, as set forth in the Act on Employment
Promotion etc. of Persons with Disabilities. At Mandom Will,
we have put in place an environment and programs tailoredto suit diversity, so that people with disabilities and those
returning to employment can work with high motivation overthe long term without undue stress. Steps taken in this area
include allocating work to match diverse capabilities andcharacteristics, and enabling the taking of annual paid holidays
in hourly units to deal with issues such as going to the hospital.
We are also working to develop human resources capable ofself-growth through work.

▲

CSR Information
Mandom Key Data on Personnel and Labor

External Site▲

Ministry of Health, Labour and Welfare Official Website
Mandom page for general employer action plan based on the Act
on Promotion of Womenʼs Participation and Advancement in the
Workplace (Japanese only)

Recognized as a “Three-Star Certified Company” (highest rank) in the “Osaka City Leading Company in
Womenʼs Participation” ranking
In recognition of our efforts related to the advancement of women, we
have been recognized as a “Three-Star Certified Company” in the “Osaka
City Leading Company in Womenʼs Participation” ranking.
This Osaka City program certifies companies that actively promote the“creation of organizations supporting the advancement of motivated34

Mandom Report 2022

women,” “support for work-life balance,” and“household participation of men” in accordancewith set standards, with a goal of providing social
recognition and widely publicizing the efforts of
selected companies.

Materiality:
Strengths and initiatives to help

“Actions for sustainable global environment”
About Mandom

Recently, the severity of environmental problems such as climate change and plastic marine pollution have been increasing year by
year, and the Sixth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) released in 2021 states that “It is
unequivocal that human influence has warmed the atmosphere, ocean, and land.” The report concluded that human activities are also
responsible for the increase in extreme events such as heat waves and heavy rainfall that have been occurring frequently in recent years.

Value Creation Story

We recognize that the growing awareness of our stakeholders, including consumers and investors, toward the global environment will
have an impact on the continuity of the Companyʼs business activities in the future, and we believe that promoting global environmental
initiatives as a company will enhance our corporate value. We have been engaged in activities to reduce our environmental impact
to date, and we will further strengthen our efforts to reduce our environmental impact throughout the product life cycle, including
less dependence on plastics, with the aim of transitioning to a recycling-oriented society. Regarding reduction of greenhouse gas
emissions, we hope to realize virtually zero greenhouse gas emissions by 2050.

The Mandom Groupʼs Environmental Policies
The Mandom Group, based on its corporate philosophy, recognizes that environmental issues are a common issue for all humankind,and strives to understand the environmental impact of the entire value chain through its business activities. We will strive to realize asustainable society by creating value through our core business, while cooperating with society to fulfil its wishes.

1. Initiatives for Climate Change

5. Compliance with laws and social norms

We will promote initiatives to reduce greenhouse gas emissions in
the value chain with the aim of transitioning to a carbon-free society.
We seek to accurately understand the effects on biodiversity in ourvalue chain and promote initiatives to avoid and reduce that impact.

3. Initiatives for resource recycling
We will promote initiatives to conserve resources and recycle
products to realize a circular economy throughout the product life
cycle.

4. Initiatives for eco-friendliness in products and services

6. Promotion of environmental communication
We will share this policy to the public and actively promote thedisclosure of environmental information as we strive to promote
communication with stakeholders.

7. Efforts as individuals
Each Mandom menber will work to protect the environment by
taking actions such as conserving resources, reducing waste
and using recycled products, not just as an organized part ofcorporate activities but also as an integrated part of daily life as
one individual consumer.

Middle-Range Planning

We place eco-friendliness as one of our product values and promote
efforts to create value that empathizes with society in accordancewith the Mandom Group Eco-Friendliness Product Standards.

Materiality

2. Initiatives for biodiversity

We will comply with environmental laws and regulations, andstrive to actively respond to social norms and wishes, in line witha philosophy of Social Responsibility & Sustainability.

（Note）In addition to the above, the Fukusaki Factory has separately establishedthe “Fukusaki Factory Environmental Policy.”（https://www.mandom.co.jp/en/company/philosophy_sf.html#policy）

Performance for the Fiscal Year Ended March 31, 2022

We place eco-friendliness as one of our product values and promote efforts to create value that empathizes with society in accordancewith the Mandom Group Eco-Friendliness Product Standards. As part of our effort, we have adopted our own eco-friendly productstandards alongside medium-to long-term targets. We are committed to making eco-friendly products in aid of achieving sustainability
across society.
These standards will be updated on an ongoing basis, with reference to the latest information on technology and developments inJapan and overseas while taking into account views, expectations and wishes of all our diverse stakeholders.

Eco-Friendliness of ProductsLife cycle stage

Procurement of
raw materials

Environmental issues

Biodiversity conservationand forest conservation

Product use
Water use reduction

Disposal

Other

Waste reduction

Plastic waste reduction
Recycling Circular economy(Notes) 1. Product that satisfies one or more of the criteria above shall be considered an eco-friendly product.
2. The benchmark will be a product manufactured in 2016 when Mandom revised the Environmental Policy.

Company Information

Climate change
Carbon neutrality/
CO2 emissions reduction

Environmental-friendliness standards

Product that uses recycled paper with 80%+ content of waste paper pulp as material for its outer and inner box package
inserts and other paper-based items
Product that uses FSC® certified paper as material for its outer and inner boxes, package inserts, and other paper-based items
Product that uses raw and other materials that have satisfied other international environmental certification systems or criteria
Product that uses 25%+ plant-derived biomass content for its container and packaging materials
Product that uses 10%+ biomass content for its laminate packaging
Product that uses 25%+ recycled materials for its container and packaging materials
Product that uses 50%+ recycled materials for its laminate packaging
Product that uses 20%+ less in power for dryer and gas for hot water supply when product is used, compared against benchmark
Product that uses 20%+ less water when product is used, compared against benchmark
Product that eliminates use of main container and packaging materials or reduces weight or dimension to achieve 10%+less use of such packaging, compared against benchmark
Product that eliminates use of individually packaged units or reduces weight by 10%+ of such packaging, compared against
benchmarkRefill product that reduces container weight by 50%+, compared to standard container weight
Product that has switched from petroleum-based plastic to alternative materials (e.g. paper, glass)
Product that uses mono materials that make separation for disposal easier（FSC N003667）®

Mandom Report 2022

35

Materiality: “Actions for sustainable global environment”

Initiatives to Reduce Plastic Waste
In recent years, there have been growing concerns over the environmental impact that plastics have when they are released into
the ocean.
In light of this situation, we, the Mandom Group, have positioned efforts to reduce plastics as a top priority in our productenvironmental friendliness agenda, and we will strive to develop products that are friendly to both consumers and the environment.
We are also committed to further strengthening our efforts through the 4Rs (reduce (reduce use and emissions), reuse, recycle, andrenewable (replace with renewable materials)) of plastic products to help solve the marine plastic problem.

ReduceReduction of usage andemissions

Reuse
Promotion of reuse

RecyclePromotion of recycling

Renewable
Promotion of switching to
renewable materials

Promote initiatives to reduce the amount of plastics used and the amount of plastics
discarded by reducing the thickness and weight of containers and packaging as well as
sales promotion materials, and by adopting materials other than plastics.
Promote the development of refillable and replaceable products with the aim of reducing
waste of single-use containers by enabling repeated use of main containers.
Promote the development of products that are easy to sort during disposal as well as
containers made of mono material for easy reuse or recycle and recycled materials.
Promote the switching to sustainable materials such as plant-based materials (biomass
plastics, etc.) to reduce the use of petroleum-based materials.

Examples of Initiatives in FY2021
In FY2021, we implemented the following initiatives, as concrete examples.

Example of “Reduce”

We removed the individual packaging of “Happy Deo Face Sheet” and “Gatsby Facial Cleansing Wipes/Body Cleansing Wipes”
sold exclusively through e-commerce.

Example of “Renewable”

Biomass plastic was used for the container of “gatsby THE DESIGNER Wax/Gel Grease.”

36

Mandom Report 2022

Promoting Measures toward a Carbon-Free Society

Value Creation Story

affluent society where people can enjoy expressing their true
self, live a healthy and positive life, and continue challenging
themselves to express their true self, instead of giving up or
sacrificing one for the other, a so-called trade-off relationship.
In particular, in response to climate change, we expressed our
support for the TCFD in June 2022, as a good corporate citizen
who lives socially with the dynamism of the times, and in order
to be more effective in evolving our Dedication to Service andcreating corporate value through our core business. At thesame time, we also joined the TCFD Consortium*2, which wasestablished for the purpose of discussing effective corporate
disclosure and appropriate initiatives regarding TCFD.
Going forward, we will use the TCFD proposal framework tofurther strengthen our governance on climate change, analyze
the risks and opportunities arising from climate change, anddisclose information on the financial impact of climate change.

Materiality

CSR Information
Mandom Groupʼs CSR KohDoh Practices > Environment >Preventing Global Warming▲

External Site▲

*1 TCFD: Task force on Climate-related Financial Disclosures*2 TCFD Consortium

Middle-Range Planning▲

It is recognized that carbon dioxide emissions have increased
significantly since the Industrial Revolution, especially since the20th century when the population grew significantly.
As this increase in carbon dioxide emissions has been blamedfor having a significant impact on climate change such as global
warming, we recognize that the implementation of concretemeasures to address climate change is an urgent issue thatthe world must join forces to address in order to realize asustainable society.
Against the backdrop of the current climate change-related
needs of society, Mandom upholds “social responsibility &sustainability” as its philosophy, which itself is equivalent
to sustainability of the Mandom Group. To solve socialand environmental issues, we will adhere to sustainable
management (ESG management + SDGs management),
working out sustainability policies and identifying material
issues (materiality) in sustainability to provide further
Dedication to Service (Oyakudachi) to consumers and create
new corporate values through business operation.
The slogan “BE ANYTHING, BE EVERYTHING.” is also our
ESG slogan.
As a “human-oriented” company, this slogan is relevant to all
employees, and in a society where social issues are becoming
increasingly diverse and complex, such as environmental issues,
globalization, diversity, and identity, and it is difficult to resolve
the issues faced by consumers, it represents Mandomʼs desire
to be dedicated to service and help realize a sustainable andAbout Mandom

Initiatives related to Climate Change (disclosure based on TCFD*1 recommendations)

Formulation of Long-Term Targets
Trends in CO2 Emissions (Scope 1 + 2 in Japan and Overseas)

2. Aiming to reduce CO2 emissions in Scope
1 + 2 in Japan and Overseas by 46% ormore compared to FY2013 by FY2030

Left axis: ■ CO2 emissions

Right axis:

Specific emissions per unit sales(t-CO2)(t-CO2/million yen)

50,0000.50

0.407
40,000

Performance for the Fiscal Year Ended March 31, 2022

1. Aiming to achieve zero CO2 emissions
Group-wide in 2050

0.425
0.389
0.348

0.40

0.366

30,743In FY2021, CO2 emissions from Scope 1 + 2 in

30,00028,457

27,777

Japan and Overseas totaled 24,391 tons, a 12.2%

0.30

23,162

24,391

reduction compared to FY2013. This is an increase
20,0000.20

10,0000.10

Company Informationof 5.3% YoY. This was due to an increase in fuelconsumption and electricity consumption resulting
from an increase in production volume in FY2021 inreaction to a significant drop in production volume
in FY2020 due to ramifications of COVID-19.

0

FY2013

FY2018FY2019FY2020

FY20210

Mandom Report 2022

37

Materiality: “Actions for sustainable global environment”

Calculating Greenhouse Gas Emissions for the Entire Value Chain (Scope 3)
15. Investments 0.5%
12. End-of-life treatment ofsold products 5.9%

Scope1 0.6%
Scope2 1.7%

11. Use of sold products
56.7%

1. Purchased goods
and services 27.7%

CO2 emissions

208,587 t-CO

2

2. Capital goods 2.7%
3. Fuel and energy
related activities 0.9%
4. Transportation and delivery(upstream) 1.6%
5. Waste generated
in operations 1.3%

9. Transportation and delivery (downstream) 0.1%

6. Business travel 0.1%
7. Employee commuting 0.2%

Scope of calculations: Japan
Period of calculations: April 2021 - March 2022

CSR Information
Overview of Domestic Environmental Load of the Mandom Group
Historical Environmental Data
Environmental Data by Production Site▲

Since FY2018, Mandom has been calculating thegreenhouse gas emissions produced throughout theentire value chain from the procurement of materials
to the manufacture, sales, use, and disposingof products based on the Scope 3 Standard
established by the GHG Protocol.
Our calculations show that more than 90% of
greenhouse gas emissions fall under Scope 3 andwe were able to see that emissions were particularly
large in Category 1 (Purchased goods and services)
and Category 11 (Use of sold products).
In addition to improving the accuracy of future
calculations, we will strive to reduce ourenvironmental impact throughout the value chain,such as by developing environmentally friendly
products that can help reduce emissions in the
categories detailed above.

▲▲

Promoting a Recycling-Oriented Society
Since October 2003 at the Fukusaki Factory we have been maintaining a 99% or higher rate of resource
recovery from industrial waste to qualify as “zero waste emissions.” In FY2021, this was achieved at all
Mandom business sites in Japan.
To encourage waste reduction and recycling at our head office building, we conduct environmental
awareness seminars relating to such topics as environmental problems, and explain rules for proper waste
classification and disposal to new employees and individuals who have transferred to the head office building.
Waste emissions including general wastes were 3,381 tons in FY2021, a year-on-year increase of 14.3%.
We take this result seriously and will continue to promote the formation of a recycling-oriented society.
In addition, in order to deepen our knowledge of the transition to a recycling-oriented society and to strengthen
our efforts for a sustainable global environment, we participated in the MEGURU BOX Project, a demonstration
experiment to collect used plastic, which was implemented from July 2021 by the Kyushu Circular Economy
Partnership (secretariat companies: AMITA HOLDINGS CO., LTD. and NEC Solutions Innovator, Ltd.) to
optimize resource recycling in the Kyushu region and create business contributing to a sustainable society.
The “MEGURU BOX Project” is the first of its kind in Japan, to work with more than ten companies, including
daily necessities manufacturers and Kitakyushu City, to create a system for resource recycling.

Efficient Water Use
At the Fukusaki Factory, we are regularly callingupon each department to save water, and reviewing
methods of cleaning production equipment, piping,and other facilities.
Also, at the head office building we use water-saving
equipment that controls water flow and low-flush
toilets to reduce water use.
In FY2020, water resource usage decreased due
to a decrease in production volume, affected by
COVID-19, but with a recovery in production
volume, water resource usage in FY2021 was
72,343 m3, a year-on-year increase of 1.9%.

38

Mandom Report 2022

MEGURU BOX

Water Input
Left axis: ■ Fukusaki Factory tap water ■ Fukusaki Factory industrial water ■ Office tap water
Right axis:
Per unit sales(1,000 m3)(m3/million yen)

150

120

90

2.219
1.752
83,64910,297
7,556

60

30

0

65,796FY2017

1.676
81,2061.748
80,705

9,568
8,325

9,086
9,986

63,313

61,633

FY2018FY20191.828

71,0022.5

2.0

72,343

1.5

7,236
6,542

5,905
3,442

1.0

57,22462,9960.5

FY2020

FY20210Materiality:
Strengths and initiatives to help

“Sustainable procurement of raw materials”
About Mandom

At the Mandom Group, we will follow the Guiding Principles on Business and Human Rights and identify the negative impact on humanrights relating to the business conducted by the Company and will engage in action that prevents or reduces such negative impact.
If due diligence action on human rights uncovers any occurrence or furtherance of negative impact on human rights, we will strive totake appropriate and effective remedial action.
If our products or services are directly linked to a negative impact on human rights due to our trading partnerships, we recognize thepossible need to take corrective action.

Value Creation Story

Recently, companies have been internationally required to engage in fair and free competition as well as proper trade and responsible
procurement.
To achieve this, the Mandom Group will procure palm oil, paper, etc. ethically. Our action ranges from protection of forests andbiodiversity to execution of corporate social responsibility by sustaining natural and labor environments and respecting human rights
throughout all supply chains.

Human Rights
human rights of all Mandom employees and their families,
trading partners and all others involved in the supply chain as
well as production operations upstream, consumers and allother stakeholders relating to the Mandom Group.

Materiality

The Mandom Group recognizes that our business activities
must only exist on the basis of our respect for human rights.
We have adopted and will implement the following Human
Rights Policy so that we can promote action in respect of the

Mandom Groupʼs Human Rights Policy
1. Basic Stance on Human Rights

4. Dialogue and Discussion with Stakeholders
In our activities relating to negative impact on business and humanrights, we will engage experts from outside the Company and wewill provide opportunities and engage in dialog and discussion with
relevant stakeholders, with respect and sincerity.

5. Reporting System
Any employee recognizing the possibility of violation of laws andrules that apply in the countries and regions of our operation or the
infringement of human rights rules and other in-house regulations
can use the internal reporting system to report such violations. We
also have set up a reporting contact where external stakeholders canreport any violation of our Human Rights Policy or any risk of violation.

6. Education and Training
We will deliver continuous education to employees so that correctknowledge about respect for human rights can be fully diffused andunderstood throughout the Mandom Group.

Company Information

We respect all the diverse values, individualities and privacy of
stakeholders relating to our corporate activities as we promote
diversity.
We will not discriminate under any circumstance against any personon reasons of race, nationality, ethnicity, sex, age, origin, religion,
education, physical characteristics, disability, health condition,
sexual orientation, or gender identity.
We strive to create a workplace environment where employees canwork safely with reassurance, energy and in full mental and physicalhealth, where there is mutual trust and where common senseprevails.
We will eliminate any discrimination, violence or harassment in theworkplace.

We will follow the Guiding Principles on Business and Human Rights
and identify the negative impact on human rights relating to thebusiness conducted by the Mandom Group and will engage in actionthat prevents or reduces such negative impact. If due diligence action
on human rights uncovers any occurrence or furtherance of negative
impact on human rights, we will strive to take appropriate and effective
remedial action. If our products or services are directly linked to anegative impact on human rights due to our trading partnerships, werecognize the possible need to take corrective action.

Performance for the Fiscal Year Ended March 31, 2022

2. Respect of Stakeholder Human Rights and Promotion ofDiversity

3. Due Diligence in the Supply Chain

Middle-Range PlanningWe support and respect international norms relating to humanrights including the International Bill of Human Rights stipulated by
the United Nations on the basic human rights of all people, the ILO
Declaration on Fundamental Principles and Rights at Work, and the
Guiding Principles on Business and Human Rights.
As a signatory to the United Nations Global Compact, the Company
supports the ten basic principles of the Compact.
The Mandom Group will comply with the laws of the nations andregions where we conduct our business activities.
If laws or rules in the nations or regions conflict with theinternational principles on human rights, we will comply with thelocal laws while pursing methods of respecting the internationallyaccepted basic human rights principles.

7. Information Disclosure
We will disclose the progress and results of our human rights actions
on the Company website and through other means.

Mandom Report 2022

39

Materiality: “Sustainable procurement of raw materials”

Building and Implementing a CSR Procurement System
Building and Implementing a CSR Procurement System
We have selected “building and implementing a CSR
procurement system” and are engaged in drafting supplier
CSR guidelines and gaining the cooperation of trading partners
to achieve this goal.
As times change in an age of rapid globalization, social andenvironmental issues are becoming more varied and complex.
We currently give consideration and take action based on
our Procurement Guidelines, but we need to strengthen theirimplementation, which includes making ongoing improvements
and revisions to prevent new social and environmental issues

from arising and thereby avoiding such risks. Another reason for
better implementation is to be able to continue responding to
expectations and demands from a broad range of stakeholders.
We strive to achieve fairness and transparency in alltransactions and will try to gain the cooperation of our trading
partners as we practice due diligence with respect to specifictopics in core areas such as human rights, labor practices andthe environment, alongside taking other measures to build asustainable and CSR procurement system.

Purchasing Policy
We at the Mandom Group have adopted the following Purchasing Policy
and will implement it in order to pursue fair and transparent business practices to the fullest extent.

1. We strive to achieve fairness, honesty and transparency inall transactions based on the principles of mutual equality,
respect for independence, and free competition, regardless ofnationality, business record or size of business. In choosing our
trading partners, we will take overall consideration including
their effort input into sustainable technology development
capacity and environmental protection, respect for human rights
and management attitudes towards sustainability and social
responsibility while balancing our judgements on our assessmentof the quality, technology, price, delivery and stability of supply
that they can assure.

3. We will contribute to the sustainable development of the societythat surrounds us and the global world. Through collaboration
with our trading partners, we will reduce environmental impact inall our activities involving design, production and distribution of
our products and services.

2. Our shared goals are OYAKUDACHI and safety and reassurance
to consumers. To this end, we will work with our trading partners
by engaging in mutual learning and development as well as close
communication so that we can build a business partnership ofharmony and mutual prosperity.

5. We will fully understand and comply with Japanese and foreignlaws and rules in order to engage in honest and fair purchasing
activities.

4. In undertaking our international business operations, we will
act as a local company to enhance OYAKUDACHI to our
local stakeholders. We will promote local production and local
purchasing.

About the Mandom Group Supplier CSR Guidelines (Version 2)
In order to address sustainable procurement, we issued the
Mandom Group Supplier CSR Guidelines (Version 2) inNovember 2017, asking suppliers for their understanding ofthese guidelines. Going forward, we will secure theunderstanding and cooperation of our trading partners̶
through steps such as requesting that these guidelines beshared with secondary, tertiary, and overseas trading
partners̶and we will continue discussions, working
step-by-step to make our supply chain more transparent.

We also conduct monitoring using the “CSR Procurement
Self-Assessment Tool Set” recommended by the Global
Compact Network Japan.
• Number of companies monitored in FY2021: 110▲

CSR Information
Mandom Groupʼs CSR KohDoh Practices > Fair Operating Practices > Mandom Group Supplier CSR Guidelines (Version 2)

40

Mandom Report 2022

Protecting Biodiversity
About Mandom

Setting of Targets
1. Procure 100% of palm-derived materials accepted by the
Fukusaki Plant as certified oil (including book-and-claim
method) by 2026
2. To switch completely to the use of FSC®-certified paper
for paper containers and packaging by 2027

Value Creation Story

These efforts will not only protect both the environmentand biodiversity; they will help to actively build andstrengthen cooperative relationships with related
counterparties and experts, NGOs and NPOs, andpeople in various communities. At the same time, theefforts will lead to our building and implementing a CSR
procurement system that also considers human rights
and labor issues.

Procurement of Sustainable Palm Oil
Ratio of Certified Raw Materials to
Palm-Derived Raw Materials■ B&C ■ MB
(%)

30.0

Materiality

In March 2018, Mandom joined the Roundtable on Sustainable
Palm Oil (RSPO) in order to procure sustainable palm oil thattakes into consideration the social issues and environmental
impact of the raw material production area, and in March 2021
acquired RSPO supply chain certification at its Fukusaki
Factory, the only production base in Japan, and began procuringmass balance (MB) certified oil in May 2021.
In FY2021, we have completed the purchase of certification
under the RSPO supply chain certification model“book-and-claim method” for the entire volume of raw materials
derived from palm oil, which is the most commonly used raw
material at our Fukusaki Factory.

25.0

20.0

15.0

10.0

0.0

2019

2020

Middle-Range Planning

5.0

2021

Procurement of Sustainable Paper Container and Packaging Materials
In addition, for paper materials used in our products, we are
striving to expand the use of environmentally friendly products
by using FSC®-certified paper, used paper, and recycled paperin accordance with “Eco-Friendliness of Products” on page 35.
(FSC® N003667)

Performance for the Fiscal Year Ended March 31, 2022

As part of our effort to procure sustainable paper containerand packaging materials, we are conducting phased switching
to FSC®-certified cardboard at the Fukusaki Factory, startingfrom new deliveries in February 2018, with a focus on
cardboard used to transport products manufactured by
Mandom.
(Switchover rate as of April 2022: 78.8%)

Company Information

Mandom Report 2022

41

Materiality:
Strengths and initiatives to help

“Maintaining/enhancing the corporate base”
As the corporate philosophy of the Mandom Group, we consider that “Social Responsibility & Sustainability” is the sustainability of
the Mandom Group. With that in mind, we treat sustainable management aimed at resolving social and environmental issues (ESG
management + SDG management) as a fundamental concept.
We will continue to develop as a company that is recognized by all stakeholders for its existence value, with the dynamism to survive inany era, and we will further strengthen our corporate foundation based on our management philosophy with advancing our Dedication
to Service deeply and widely as the going concern.
In addition, in order to provide cosmetics that consumers can use safely and with peace of mind, we are working to ensure conformity
with Mandom safety standards (safe quality) and to achieve conformity with consumer satisfaction (reliable quality).

Providing High Quality and Peace of Mind
Quality Management System

42

In accordance with Japanʼs Pharmaceutical Affairs Law,
we comply with the ISO 22716 international standard thatpertains to good quality practices (GQP), good vigilance
practices (GVP), and good manufacturing practices (GMP) for
cosmetics.
Please refer to the following pages for details of the MandomGroupʼs quality assurance activities aimed at achieving “truecustomer satisfaction” and the system for utilizing customer
feedback in its operations.
CSR Information
Consumer Issues > Promotion of Quality Assurance System▲

Regarding quality assurance for cosmetics and quasi-drugs,
Mandom works to assure fully satisfactory quality as demandedby consumers from purchase to end of use. We take measures
to improve the quality of our products and services at every
stage̶planning, design and development, production andshipping. To ensure the reliability of these activities, inJanuary 1998 Mandom established the Quality Philosophy
and Fundamental Quality Policy, and built a quality assurance
system that became ISO 9001-certified in December 1998.
Since that time, as the quality philosophy and practices weredeemed to have taken root company-wide, we voluntarily
surrendered ISO 9001 certification in December 2013.
We have since pursued continuous improvement of quality
through the Mandom quality management system.

Quality Assurance Activities andReconfiguring Our Quality Assurance System

Analysis of active ingredients in quasi-drugs

Confirmation of process operations

Confirmation of process operations

Visual inspection of products

Product sampling inspection

Microbiological inspection

Mandom Report 2022

Mandom Quality Assurance Activities and Implementation of Customer Feedback

Production

Discovering customersʼ wants

Regulatory compliance
ISO 22716 (Cosmetics GMP) conformity
Mandom quality management system conformity
Production guidelines

Marketing research

Drafting and reviewing plan●●

Ordering of raw materials

Marketability Preference Functional superiority
Eco-friendliness Regulatory compliance●

About Mandom

Product Planning●●

Deliberation over content of plan
Acceptance of raw materials
Quality check Acceptance inspection

Board of Directorsʼ Meeting

Quality check

Value Creation Story

Marketing strategy meetings (monthly)
Chairperson: operating officer in charge of marketing

Compliance with material standards

Approval for sale of new productPreparation of content
Deliberation over validity of draft plan
Quality check Content inspection

Planning and design combined meetings (monthly)
Chairperson: operating officer in charge of technology and production

Compliance with content standards

Design of content and container●

Safety Stability Functionality
Regulatory compliance●●

Filling, packaging

Usability

Quality check Product inspection

Design of production methods

Compliance with product standards,
deliverability screening

Selection of raw material suppliers●

Regulatory compliance●

Materiality●●

Procurement guidelines

Delivery

Product Design●●

Assurance of traceability through lot control
Management of retention samples

Middle-Range Planning

Board of Directorsʼ Meeting
Director in charge of overall manufacturing
and sales
Director in charge of quality assurance
Director in charge of safety management

Performance for the Fiscal Year Ended March 31, 2022

New product development, product improvement

Customers
Consumers, retailers, distributors, trade partners,
investors, etc.

Publicity and sales promotions
Creation of advertising ● Creation of sales promotion tools
Information dissemination through website, social media, etc.
● Plan management and implementation of promotions, etc.
●●

Communication with Customers
Regulatory compliance, privacy policy●

Regulatory compliance
Compliance with voluntary standards of industry

Advertising is to be carried out based on the following guidelines.
Appropriate Advertising Guidelines including Cosmetics
from the Japan Cosmetic Industry Association
https://www.jcia.org/user/business/advertising (Japanese Only)(Consultations, questions, complaints, etc.)
Daily reports

Company Information

Collation and analysis of customer opinions Gathering
customer opinions, feedback to customers

●

Sales
In-store communication
Supply of information to distributors, retailers● Gathering of market information, etc.
●●

Collation and analysis of customer opinions
Monthly reports, quality management reviews (twice a year)●

Regulatory compliance●

Sales guidelines

Mandom Report 2022

43

Materiality: “Maintaining/enhancing the corporate base”

Customer Inquiry System

Customer Inquiries in FY2021

We set up a Customer Relations Division in 1994 as a generalcontact point for communicating with customers, including theirsuggestions, requests and other feedback. After reviewing
the feedback received, we add information to the Frequently
Asked Questions (FAQ) & Inquiries section of our website aspart of our efforts to ensure the supply of information.
Furthermore, feedback is compiled in a database, and throughmutually attended internal meetings, is passed along to top
management and relevant departments to be integrated into
future product development and improvement.

Other

How to use, Product function

3,580 inquiries/ 21.1%

1,623 inquiries/ 9.6%

Purchasing methods

Suggestions and requests
except product193 inquiries/ 1.1%

Product suggestions,
Requests

2,481 inquiries/ 14.7%
Customer Inquiries

16,921 inquiries

354 inquiries/ 2.1%

Opinions, Advice

8,690 inquiries/ 51.4%

Quality Assurance Div.
Consumers

Distributors
Requests, inquiries,
etc.

Employees

Information
providers・Telephone
・Email・MailOverseasGroupcompanies

・Information provided
・Inquiry content

Investigating
dept.

Reportresults

Customer Relations Div.
・Information provided
・Inquiry content
・Other information
・Proposal/request information

Response

Domestic Group companies

RetailersRequestinvestigation

・Information provided
・Inquiry content

Confirm
information

Individual
dept.

Information
provision
Reportinformation
Management
decisionManagement
team▲

Top Page
Customer Support

Examples of Utilizing Customer Feedback
At Mandom, we share feedback from customers with top management and relevant departments,
and work to achieve true customer satisfaction.
Regarding the “Lúcido-L Oil Treatment Series,” a customer commented, “It is difficult to see
the remaining amount.” In response to this, we have improved the label by widening the gap tomake it easier to see the remaining amount.
Before improvement

Initiatives in FY2021

44

Mandom Report 2022

After improvement

Corporate Governance
About Mandom

Corporate Governance Policy
The Mandom Groupʼs mission is co-existence, mutual growth and mutual creation with
global society. Consequently, to realize our core philosophy, we are dedicated to generating
stable profits by pursuing efficiency, while ensuring soundness and transparency.
As a result, we look to achieve sustainable, steady growth together with consumers,

Value Creation Storysociety and other stakeholders.

Corporate Governance System
The activities of the Group are overseen by the Audit &Supervisory Board. With legal oversight from its members as
the basis for corporate governance, we invite multiple external
directors to sit on our board, to reinforce our monitoring andadvisory functions.

By clarifying responsibilities and delegating authority under asystem of supervisory and executional officers in charge of
specific operations, we have created a system for the proactive
and expeditious execution of operations.

Materiality

Efforts to Strengthen Corporate Governance
1985

1995

2000

2005

2010

2015

2020

Management Supervision and Auditing
Inviting independent external executives

1995

Middle-Range Planning

Inviting external Audit &Supervisory Board members 1985
Inviting external directors

Establishment of committees consisting of independent external executives
Establishment of nominating committee

2008

2021

Changed the chairperson of the committee to an external director

Improvement based on annual evaluation and analysis
Evaluation of the effectiveness of the Board of Directors
Evaluation of the effectiveness of the Audit & Supervisory Board

2016
2019

Separation of supervision and execution
Introduction of executive officer system

2001
Performance for the Fiscal Year Ended March 31, 2022

Enhancement of effectiveness and transparency
Abolition of advisors, honorary advisors, and counselors

2018

Compensation for Executives
Establishment of committees consisting of independent external executives
Establishment of Compensation Committee

2005

2021

Changed the chairperson of the committee to an external director

Ensuring objectivity and transparency of compensation for executives
Terminated retirement benefits for directors and corporate auditors

2005

Review of executive compensation program
Introduced restricted stock compensation plan

2018

Complied with Japanʼs Corporate Governance Code, announced Corporate Governance Guidelines

Company Information

Reinforcement of the System
2015

Promotion of sustainable management
Establishment of Sustainability Committee

2015 CSR Promotion Committee 2020

Compliance system
Establishment of the Mandom Groupʼs Code of Conduct
Introduction of Helpline System

1999 (revised 2002, 2007, 2011, 2014, 2018)2002

2007: Expanded coverage to business partners

Mandom Report 2022

45

Materiality: “Maintaining/enhancing the corporate base”

Corporate Governance System (as of June 24, 2022)
Top Decision-Making Body, Venue for Communicating with Shareholders

General Meeting of Shareholders
Advice/Recommendations
Transparent and fair
selection process
3 Nominating

Appointment/Dismissal

Decision-making/Oversight function
1 Board of Directorsʼ Meeting

Committee● Representative Director● External Directors● Outside Experts

Femaleemployee
ratio

Disclosure/Explanation
Femaleemployeeratio

Statutory
auditing

External
ratio● Internal Directors

ProposalReport● External Directors

Advance discussion,mutual checks, monitoring

Legal Audits

Supervisory
Board

6 Executive Board● Audit & Supervisory

Board Members● President Executive Officer● External Audit &● Supervisory Executive Officer

Supervisory Board
Members● Audit & Supervisory Board

Business execution

External
ratio

Appointment
Dismissal

2 Audit &● Chairman

Authority delegation/
Supervision

ReportMembers

President Executive Officer
Supervisory Executive Officers
Transparent and faircompensation system

Technology

Domestic
Sales

4 Compensation

Committee

Marketing

Production● Representative Director● External Directors● Outside Experts

Femaleemployee
ratio

Externalratio

Human Resources/
General Resources
Overseas
Business

Corporate
Planning/
Financing

ProposalReportSocial Responsibility
7 Sustainability

Committee

Total Risk Management
Committee

Quality AssuranceCommittee

Executive Officers

Direction/
Management

ESG Executive
Committee
Occupational Health and
Safety Committee

Audit of internal
controls forfinancial reporting

Independent
AuditorCode of Conduct
Promotion Committee

Authority delegation/
Supervision

Reporting, discussion,and mutual checks of business execution
5 Management Council

Independent audits
Statutory
auditing

Internal control,
business audits
Statutory
auditing

Internal Audit
Div.

Workstyle Reform
Promotion Committee

System construction/
Overall management

Information
provisionCompany-wide organizations(Group companies in Japan and overseas)

1 Board of Directorsʼ Meeting

The Board of Directors is comprised of directors and makes decisions
regarding important business execution matters based on a corporate
philosophy and corporate planning in addition to supervising the executionof business by directors and executive officers.
Representative Director and Chairman serves as Chair.

2 Audit & Supervisory Board

The Audit & Supervisory Board is comprised of Audit & Supervisory Board
members, who attend important meetings, such as Board of Directors
and Management Council meetings. Audit & Supervisory Board members
also exchange information with the Accounting Audit and Internal Audit
Division and audit the business execution of directors, etc. throughhearing of each division and affiliated company.
An Audit & Supervisory Board member serves as Chair.

3 Nominating Committee

The Nominating Committee is comprised of the Representative Director
and external directors. It is established as an advisory body to the Boardof Directors in order to ensure fairness and transparency of the process
when determining candidates for directors and Audit & Supervisory Board
members. This committee advises the Board of Directors on proposals
regarding candidates for director, Audit & Supervisory Board member andsupervisory executive officer.
An external director serves as Chair.

5 Management Council

The Management Council is comprised of officers of executive officer
level and higher. It performs decision-making and reporting related
to business execution of the management strategy, primarily for theapplicable fiscal year. The Mandom Group promptly responds tochanging business environments by delegating business execution to theManagement Council.
The President Executive Officer & Director serves as Chair.

6 Executive Board

The Executive Board is comprised of officers of supervisory executive
officer level and higher. It performs decision-making and reporting related
to business execution of the management strategy, primarily for the
medium- to long-term. The Executive Board also deliberates on efforts torealize VISION2027 as developed by the Company.
The President Executive Officer & Director serves as Chair.

7 Sustainability Committee

The Sustainability Committee is comprised primarily of directors, Audit &Supervisory Board members, and supervisory executive officers. Whiledeveloping our approach for promoting the sustainability of the MandomGroup and holding discussions with relevant departments at committee
meetings and other meetings, this committee is strengthening our efforts
to contribute to the sustainable development of society.
The President Executive Officer & Director serves as Chair.

4 Compensation Committee

The Compensation Committee is comprised of the Representative
Director and external directors. It is established as an advisory body to
the Board of Directors in order to ensure transparency and fairness of theprocess when determining directorsʼ compensations. This committee
advises the Board of Directors on policies regarding compensation for
directors and supervisory executive officers.
An external director serves as Chair.

46

Mandom Report 2022

(Note) Major meetings and committees from FY2020 have been held online in orderto maintain social distance during the COVID-19 pandemic.

Skill Matrix of Directors and Audit & Supervisory Board Members
By appointing external directors and external Audit &Supervisory Board members who have no special interest
relationships with the Company and are highly independent of
the Company, the Company aims to reinforce its corporate
governance and augment the Groupʼs overall management
quality. The Company has formulated the Standards for the
Independence of Independent Outside Executives shown below.
The external directors and external Audit & Supervisory Board
members of the Company satisfy these standards and theTokyo Stock Exchangeʼs independence criteria. The Company
has notified the Tokyo Stock Exchange that all of these
executives are independent executives.

About Mandom
Value Creation Story

Standards for the Independence of Independent Outside Executives
https://www.mandom.co.jp/company/src/g_guideline_ex2.pdf(Japanese Only)
Explanation of individual reasons for the selection of the principle
members of the management and the nomination of candidates for
directors and Audit & Supervisory Board members
https://www.mandom.co.jp/company/src/g_guideline_ex1.pdf(Japanese Only)

Materiality

Mandom acknowledges the importance of a composition of
personnel with various business experiences and of diversity
when it comes to the composition of the Board of Directors
and the Audit & Supervisory Board.
From the standpoint of promoting womenʼs contribution,
Reiko Nakayama was appointed as an external director in June
2019. At our listed subsidiary in Indonesia, which is our biggest
subsidiary in the overseas business, there are four Japanese
directors and five directors who are overseas nationals(including two female directors) of the total nine directors.
In addition, five overseas nationals (one of whom is anequity-method affiliate) have already served as representative
directors of overseas subsidiaries.
Mandom aims to become a global company, and while wecurrently do not have any foreign national directors or Audit &Supervisory Board members, we acknowledge this as animportant issue in order to promote diversity management. Goingforward, our policy is to proactively promote foreign nationaland female employees to executive and managerial positions
to provide opportunities for them to leverage their talents.

Skill Matrix (as of June 24, 2022)
Field of experience*
Name

Corporateplanning

Globalbusiness

Marketing

Sales

Technology/
Production

Human
Resources/
GeneralResources

Legal affairs
and riskmanagement

ESG

DX and IT

●

●

●

●

●

●

●

Finance/
Accounting

Motonobu
Nishimura●

Ken
Nishimura●

YasuakiKameda●●●Independent External

Reiko
Nakayama●

ShigekiSuzuki●

Hitoshi
Tanii

●

●

●

●

●

●

●

●

●
●

●
●

●

Performance for the Fiscal Year Ended March 31, 2022

Shinichiro
Koshiba●

Middle-Range Planning[ Directors ]●●●[ Audit & Supervisory Board Members ]Takehiko
Ikehata

Independent External

Masahiro
NishioMikiharu
Mori

●
●

●

Company Information

Takeshi
Hibi

●

●

CPA

●

Attorney* Areas of practical or supervising experience.
“Global business” means that the person was seconded by Mandom Corporation to its subsidiaries or affiliated companies where he/she held a management position.
For independent external officers, this refers to experience in other companies.
Mandom Report 2022

47

Materiality: “Maintaining/enhancing the corporate base”

Message from External Director Hitoshi Tanii
Q 1 . You have been an external director for two years.
What changes have you seen in Mandom since yourfirst appointment and what challenges do you see forthe future?
It has already been two years since I assumed the position.
Amidst the COVID-19 pandemic that has been continuing since
I took office, the directors and executive officers are working as
one to consider how we can be dedicated to service in this era.
The COVID-19 pandemic has not only had an economic impact
on our company, but it has also caused us to rethink how weshould be. What I mean by this is that there is an argumentthat our recent disappointing performance is not due to the
COVID-19 pandemic, but rather to our inability to provide value
to our customers in an intrinsic way. I think there is very soundargument here, and I think it is characteristic of Mandom.
The loyalty of our employees to Mandom has not changed, andexpectations toward the new president remain high. I believethat the combination of the chairman, who has long-term
experience, and the president, who has new ideas and energy,
is very well-balanced and has a promising future. The president
has willingly engaged in discussions with employees on thefront lines.
On the other hand, however, there are some real challenges.
We have not produced any new products that will support theCompanyʼs future in recent years. When hit products are notproduced for a long period of time, people become impatientand companies then tend to launch new products just forthe sake of doing so in rapid succession, based on shallow
discussions and deliberations. From my personal point of view,
I think it is necessary to reorganize the brand structure rather
than just aiming for a hit with a single product.
In particular, the Gatsby brand has a broad product lineup anda wide range of customer ages. This is actually preventing
the brand from gaining strong support from the consumer
segment, which is the core of the brandʼs target.
Reinforcing the brand is an essential requirement as a sourceof long-term competitiveness in the future. I hope that
Mandomʼs strong marketing capabilities will be demonstrated
without holding back.
Q 2 . You assumed the chairmanship of the Nominating
Committee and the Compensation Committee last
fiscal year (ended March 31, 2022). Please tell us
about the status of each committee and any issues
that you think need to be addressed.
From last fiscal year (ended March 31, 2022), the chairmanshipof the Nominating Committee and the Compensation
Committee was transferred to an external director. I think thisis a wonderful thing from the standpoint of transparency andsoundness of management.
Each member of the committees has been active in speaking

48

Mandom Report 2022

out. We have a very open and flat corporate culture that allows
us to speak frankly about what is good for the Company, and I
believe that this corporate culture is working positively in thesecommittees as well.
In terms of the issues discussed by the committees, I thinkthat in the future it will be necessary to link the compensationof directors and managing executive officers to businessperformance in a more balanced manner than has been thecase to date.
We are also discussing diversity in the composition of theBoard of Directors, with a focus on external directors. Currently,
our external directors have a well-balanced composition ofpeople with diverse backgrounds, including experience in large
company management, experience related to technology andproduction, women, stock market perspectives, and experiencein startup management, and I also believe that knowledge ofoverseas markets will be required in the future.
Q 3 . The Companyʼs financial results have beenchallenging, with two consecutive fiscal years postinga loss. What are your aspirations for future growth?
The president has set a goal for the current fiscal year (ending
March 31, 2023) of achieving a return to profitability in terms
of profit at each level, and the entire company is united in
striving to achieve this goal. As an external director, I would
like to contribute to the achievement of this goal by engaging
in sound discussions with the directors and executive officers.
The Company has the DNA of having overcome several
business crises on our own. Although we are currently in adifficult situation, with two consecutive fiscal years of losses,
I am confident that the Company will demonstrate its DNA
without holding back and start on the path of renewed growth.

Evaluation of the Effectiveness of the Board of Directorsthat need to be strengthened in future corporate governanceare identified as issues and items for improvement.
The following is a summary of our evaluation and analysisof the effectiveness of the Board of Directors for the fiscal
year ended March 31, 2022 (105th fiscal year) based on the
Corporate Governance Code (hereinafter the “CG Code”)[Supplementary Principle 4-11 3] in our Corporate Governance
Guidelines (hereinafter the “CG Guidelines”).

About Mandom

Since 2016, the Company has conducted an annual survey
on the effectiveness of the Board of Directors targeting thoseparticipating in the Board of Directors (excluding the chairman).
Based on the results of the survey, we believe that theeffectiveness of our Board of Directors has been ensured if thequantitative evaluation shows that the Board of Directors has
been appropriately implemented. In addition, items that werepointed out or suggested in the qualitative evaluation and items

Value Creation Story

Evaluation and Analysis Procedures and Quantitative Results
1 A questionnaire was distributed to participants in the Board of Directors todetermine whether the Companyʼs Board of Directors is effectively fulfilling
its role in accordance with the policies and other requirements of Section
4 (Responsibilities of the Board) of the CG Code as stated in the CG
Guidelines, and responses were obtained from all eligible participants.
2 Based on these responses, the President Executive Officer & Director
interviewed each internal director to confirm their content.
3 The responses to the above questionnaire and the results of the interviews
were provided to the participants of the Nominating Committee, and after
ensuring a period and opportunity for consideration by the participants,

the Nominating Committee made a report to the Board of Directors after
careful deliberation.
4 Upon receiving the Nominating Committeeʼs report, the Board of Directors
confirmed the results of its own evaluation and analysis of the effectivenessof the Board of Directors based on an understanding and respect forthe content of the report, and the results were as follows: 66.1% for thehighest evaluation (appropriate), 30.3% for the next highest evaluation(appropriate with some issues), and 1.7% for the lowest evaluation (notappropriate with many issues).

Materiality

Items for Which Effectiveness Has Been Ensured
1 Based on the Mandom Mission Framework, the Board of Directors has

and the “Policies and Procedures Related to Appointment of Directors”
after receiving advice from independent external directors and Audit &Supervisory Board members (hereinafter “independent outsiders”) andconducting constructive discussions, and has maintained the structure of
the Board of Directors in accordance with these policies.
5 The Board of Directors will properly organize the Nominating Committee,
establish appropriate operating procedures, respect the reports of theNominating Committee, and make appropriate decisions regarding
personnel matters (appointment, reappointment, and dismissal) of principal
members of the managerial team (directors and supervisory executive
officers).
6 The independent outsiders shall regularly (once a year) hold a meeting forexchange of opinions, which consists solely of independent outsiders, andcommunicate among independent outsiders as appropriate, to exchange
information and share recognition, based on an objective standpoint.

Middle-Range Planning

developed, revised as needed, and disclosed the Corporate Governance
Policy and CG Guidelines through constructive discussions in priordeliberations at the Executive Board and Management Council meetings.
2 The Board of Directors is appropriately managing conflicts of interest
between the management and related parties and the Company based on“Principle 1-7. Transactions with Related Parties” in the CG Guidelines.
3 The Board of Directors formulated and disclosed appropriate Standards
for the Independence of Independent Outside Executives. In addition
to complying with these standards, the Board of Directors also invited
persons capable of monitoring from an objective perspective of ashareholder who possess a wealth of business experience and anunderstanding and knowledge of management.
4 The Board of Directors appropriately established and disclosed the“Philosophy of Balance, Diversity, and Scope of the Board of Directors”

Issues and improvement items
executive officers and at executive board meetings led by supervisory
executive officers, sufficient discussions are being held to share issues andachieve the management plan. By improving the accuracy of analysis of
issues causing differences between plans and actual results and progress
management of countermeasures, it will be possible to accurately reflect theresults of analysis in the strategies and plans for the next year by utilizing
the business management method based on a business and function matrix
structure, so further improvement of management efficiency can be realized.
2 Because the Company operates in a climate that respects free and vigorous
discussion, opinions were exchanged in a proactive and frank manner, andchallenging proposals involving risk-taking were made by the managerial

team. Going forward, while ensuring profitability and financial defense, themanagerial team, directors, and Audit & Supervisory Board members should
reaffirm and raise awareness of the importance of reforming the businessfoundation and taking on the challenge of creating new value for the future,so that aggressive governance can be realized and more advanced andchallenging decisions can be made in an agile manner.
3 Regarding the monitoring function of independent external directors,
information gathering support was provided through exchanges of opinionswith each department, but further enhancement of support functions would
enable external directors to actively and proactively gather information andhave more active and meaningful discussions even during the COVID-19
pandemic.

Performance for the Fiscal Year Ended March 31, 2022

1 Through preliminary deliberations at the Management Council led by

Examples of Specific Comments Provided in the Questionnaire by Board of Directors ParticipantsWith regard to the three-pronged audit
by Audit & Supervisory Board members,
independent auditors, and the Internal Audit
Division, the effectiveness of the audit has
been enhanced by the active participation of
the Internal Audit Division in the meetings
between Audit & Supervisory Board
members and independent auditors.

Company Information

I think the Board of Directors should consider
a composition of members that will allow active
discussions from a wide range of viewpoints,
such as inviting people who approach
management from the perspective of academia
and other fields, as well as diversity in nationality,
gender, and age, as a matter of course.

The Audit & Supervisory Board andindependent external directors have held
several meetings to exchange opinions, andsince candid exchanges of opinions between
external directors and external Audit &Supervisory Board members have taken place
during these meetings, we believe that therequirements of the CG Code are being met.

Mandom Report 2022

49

Materiality: “Maintaining/enhancing the corporate base”

Method of Determining Compensation Amounts for Company Executives
In addition to ensuring soundness and transparency, theCompanyʼs compensation for directors is aimed at theappropriate pursuit of efficiency, leading to the achievement ofmanagement plans and the enhancement of corporate value.
To this end, the Company sets an amount of fixed compensation
to ensure steady devotion to their duties. In addition, a certain
amount of performance-linked variable compensation is provided
to serve as an incentive to a higher level of motivation. The
Companyʼs policy is to strike a balance between these two.
The Company sets fixed compensation amounts at appropriate
levels by referring to third-party data. These amounts differ
according to executive rank and Group management
responsibilities.
Variable compensation is linked to single-year and medium- tolong-term performance at an appropriate ratio. Annual payment
amounts are set to reflect performance with reference to theCompanyʼs performance in the preceding fiscal year andachievement of planned targets, and to the business plan forthe current fiscal year (amounts paid to individual internal
directors are based on evaluation of their individual
performance). Restricted Stock compensation (in principle, theamount will correspond to compensation for performance of
duties in the first year covered by Middle-Range Planning) islinked to medium- to long-term performance. Restricted Stockcompensation aims to further promote shared value withshareholders and provide an incentive to strive to continually
increase the Companyʼs corporate value.
Compensation for external directors is composed solely of fixedcompensation.
Compensation for Audit & Supervisory Board members is set at
an appropriate level that reflects their important role andresponsibility for conducting rigorous legal audits that form thebasis of compliance management for the Group and improve
corporate value. As the role and responsibility of Audit &Supervisory Board members is to conduct rigorous legal audits
unrelated to the Companyʼs operating performance, theircompensation is composed only of the fixed compensation
portion, which is not affected by operating performance.
The amount of compensation for directors is determined by aresolution of the Board of Directors within the limit ofcompensation approved at the General Meeting of
Shareholders based on the deliberation and report of theCompensation Committee, which is chaired by an independent
external director and of which more than half of the members
are from outside the Company (external directors and external
experts).
The Compensation Committee also deliberates and makes
recommendations on policies related to determining director
compensation. Based on these results, the Board of Directors
resolves compensation amounts.

Appropriate Balance of Fixed and Performance-Linked Compensation (at time of standard evaluation)
Percentage ofcompensation

Fixed compensation(monetary)

Short-term performance-linked
compensation (monetary)

Approximately 59%

Approximately 32%

Medium- to longterm performancelinked compensation(shares)
Approximately 9%

Set compensation level based on
responsibility

Performance evaluation based onachievement of single-year targets

Performance evaluation based on achievementof Middle-Range Planning targets

Payment method

Paid as monthly
fixed compensation

Paid as bonus after
evaluating target achievement

Paid Company shares within
three fiscal years corresponding to
Middle-Range Planning

Performance
evaluation period−

One yearThree years (FY2021 - 2023)

Company performance

Evaluation indicator−・Achievement rate for consolidated net
sales forecast in pertinent fiscal year
・Achievement rate for consolidated
operating profit margin forecast in
pertinent fiscal year
・Rate of dividend growth

Individual performance
・Evaluation of contributions(Representative Director only evaluated basedon Company performance)

Range of fluctuationof evaluation
Eligible persons

50

Mandom Report 2022

Company performance・Middle-Range Planning
Achievement rate for consolidated net
sales in final year
・Middle-Range Planning
Achievement rate for consolidated
operating profit margin in final year
・ROIC

−

50% above or below standard

33% above or below standard

Directors
Audit & Supervisory Board members
Supervisory Executive Officers

Directors (excluding external directors)
Supervisory Executive Officers

Directors (excluding external directors)
Supervisory Executive Officers
Executive Officers

Amount of Compensation, etc. for Directors and Audit & Supervisory Board Members for FY2021

Basic compensation

Performance-linked
compensation, etc.

Non-monetarycompensation, etc.

Directors(external directors)

273
（24）

208
（24）

37
（−）

27
（−）

8
（3）

Audit & Supervisory Board Members(external Audit & Supervisory Board Members)

51
（15）

51
（15）

−
（−）

−
（−）

6
（3）

Total
(external executives)

324
（39）

259
（39）

37
（−）

27
（−）

14
（6）

About Mandom

Total amount by type of compensation (Millions of yen)

Total amount ofcompensation(Millions of yen)

Category

Eligible number of
executives

Value Creation Story(Notes) 1. The above table includes one director and two Audit & Supervisory Board members (including one external Audit & Supervisory Board member) who retired at theconclusion of the 104th Ordinary General Meeting of Shareholders held on June 24, 2021.
2. The amount of monetary compensation for directors was resolved at the 89th Ordinary General Meeting of Shareholders held on June 23, 2006 to be no more than 450
million yen per year. As of the close of said General Meeting of Shareholders, the number of directors was eight (including one external director).
Separately from the above compensation framework, a resolution was passed at the 101st Ordinary General Meeting of Shareholders held on June 22, 2018 that theannual amount of compensation under the Restricted Stock compensation plan shall not exceed 150 million yen and the maximum number of shares shall not exceed
39,000 shares per year (external directors are not eligible for the grant). This compensation amount is, in principle, based on the assumption that an amount equivalent
to the compensation for the execution of duties over the period covered by the Middle-Range Planning will be paid in a lump sum in the first year of the period coveredby the Middle-Range Planning. The number of directors (excluding external directors) as of the close of said General Meeting of Shareholders was five.
3. The amount of monetary compensation for Audit & Supervisory Board members was resolved at the 88th Ordinary General Meeting of Shareholders held on June 24,2005 to be no more than 70 million yen per year. As of the close of said General Meeting of Shareholders, the number of Audit & Supervisory Board members was four(including two external Audit & Supervisory Board members).

Materiality

Policy Related to Stockholdings

Category

Trend of listed shares
Left axis: ■ Amount recorded on balance sheet

2019

2020

2021

2022

(Year ended March 31)(Year ended March 31)(Year ended March 31)(Year ended March 31)

Right axis:

Number of companies(Millions of yen)(Companies)

20,000Listed

24

24

18

30

14
24

Number ofcompanies

24

16,000Not
listed

6

7

6

6

Total

30

31

24

20

12,00024

11,09911,15818
18

Listed11,09911,158

8,976

6,247

8,000

Not
listed

3

26

24

24

4,000

Total

11,102

11,184

9,000

6,271

0

14
6,247

Company Information

8,976

Amountrecorded onbalance sheet(million yen)

Performance for the Fiscal Year Ended March 31, 2022

Number of Companies with Stock Held and Amount on Balance Sheet

Middle-Range Planningstockholdings at less than 10% of net assets at the end of
March 2022, and achieved the result of 9.1%. The Companyʼs
policy is to reduce by at least 30% by the end of March 2024
compared to the end of March 2021.
Stockholding of shares is a matter for approval by the Board of
Directors. The Group publishes the purpose for holding major
stockholdings in the securities report. The Group judges
exercising voting rights for stockholdings based on whether adecision will contribute to the improvement of shareholder
value for the Group and the alignment with the purpose of thisinvestment. The Group strives for constructive dialogue withthe company from the position of a shareholder and maintains
a policy to appropriately and strictly exercise voting rights toimprove mutual healthy corporate value and synergies.

The Group maintains a basic policy of strategically holding
shares of listed companies that it determines will contribute to
the sustainable improvement of corporate value in the Group
from a medium- to long-term perspective due to the synergies
emerging from strengthening relationships throughstockholding. Each year, the Board of Directors verifies
whether the profit and risks that correspond to holding eachindividual company stock are aligned with capital costs andmaintains a policy to comprehensively judge the logic ofholdings. The Board of Directors will consider reducing
holdings if it determines that a stockholding is not logical. Even
if stockholding is logical, the Board of Directors will consider
selling as needed after considering a myriad of factors,
including free cash flows, investment plans, etc. We set ourplan for the amount recorded on the balance sheet for policy

12

6

2019

2020

2021

2022

0

(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Mandom Report 2022

51

Introduction of Officers
1977
1983
1984
1987
1990
1995
2000
2004
2008
2019
2021

(As of June 24, 2022)

Number and rate of attendance at
the Board of Directors meetings

April Joined the Company
April General Manager, the East Japan Sales Division
June Director (current position)
June Managing Director
June Representative Director (current position); Senior Vice President
June President Director
May Audit & Supervisory Board Member, PT. Mandom Indonesia Tbk
June President Executive Officer
April In charge of the Internal Control Promotion Division(now the Internal Audit Division) (until June 2015)
April In charge of the Internal Audit Division
April Chairman (current position)

2022 (Year ended March 31):
13/13 (100%)
Chairperson of Board of
Directors

Representative Director and Chairman

Motonobu Nishimura(Born on January 9, 1951)

In charge of the Internal Audit Division

President Executive Officer & Director

Ken Nishimura

2008
April Joined the Company
2011 January Assistant Manager, Mandom Corporation (Singapore) Pte. Ltd.
2013
April Human Resources Division
2015
July The Human Resources Division stationed at Europe IESE Business School (Spain)
2017
May Graduated from IESE Business School (MBA)2017
July Executive Officer; General Manager, the Corporate Strategy Division
2018
April Managing Executive Officer; In charge of the Marketing Units
2019
June Director (current position)
2021
April Representative Director (current position) President Executive Officer (current
position)
2021
May Audit & Supervisory Board Member, PT. Mandom Indonesia Tbk (current position)
2022
April In charge of the Internal Audit Division (current position)

Number and rate of attendance at
the Board of Directors meetings

2022 (Year ended March 31):
13/13 (100%)
Chairperson of Management
Council and Executive Board
Chairperson of Sustainability
Committee(Born on May 12, 1982)

Supervising of Japan Business Management, in charge of the Corporate Planning &Financial Units and the Human Resources & General Resources Units,
the Investor Relations Division, and the Secretarial Office
1984
2008
2009
2012
2014

Senior Vice President Executive Officer & Director

Yasuaki Kameda

2015
2017
2017
2018
2021

(Born on November 1, 1961)

April Joined the Company
April General Manager, the Product Development Department Section 1 (now the Brand
Marketing Division 1)
April Executive Officer
April In charge of the Chain Store Sales Division 1, the Chain Store Sales Division 2 and theDistribution Channel Development Division; General Manager, the Chain Store Sales Division 2
April In charge of the Corporate Planning Division (now the Corporate Administration
Division) and the Corporate Communications & Investor Relations Division (nowthe Investor Relations Division); General Manager, the Corporate Planning Division
April Managing Executive Officer; In charge of the Corporate Planning Units
April In charge of the Corporate Planning & Financial Units and the Human Resources &the General Resources Units (current position)
June Director (current position)
April Senior Managing Executive Officer
April Senior Vice President Executive Officer (current position); Supervising of Japan
Business Management (current position)

Supervising of International Business Management, in charge of the International
Business Operation Units, the International Business Division 2, the International
Business Division 3
1987
1993
1997
2002
2008
2013
2016
2018

Senior Managing Executive Officer & Director

Shinichiro Koshiba(Born on December 24, 1963)

2021

April Joined the Company
July Senior Managing Director, Sunwa Marketing Co., Ltd.
May General Manager, Zhongshan City Rida Fine Chemical Co., Ltd.
(now, Zhongshan City Rida Cosmetics Co., Ltd.)
April General Manager, the Sales Planning Division
June Executive Officer
April Managing Executive Officer; In charge of the Marketing Units
June Director (current position)
April Senior Managing Executive Officer (current position); In charge of the International
Business Operation Units (current position); Audit & Supervisory Board Member,
Chairman, PT Mandom Indonesia Tbk (current position)
April Supervising of International Business Management (current position)

Number and rate of attendance at
the Board of Directors meetings

2022 (Year ended March 31):
13/13 (100%)

Number and rate of attendance at
the Board of Directors meetings

2022 (Year ended March 31):
13/13 (100%)

Executive Officers
Managing
Executive
OfficerSupervising Production Units
KoichiIn charge of the Purchasing Division and
Watanabe the Production Strategy Division

Managing
Executive
Officer

Masahiro
Ueda

PT MANDOM INDONESIA Tbk
Representative Director andPresident Executive Officer

Fumihiro
Okada

Supervising Technology Units
In charge of Skin Science Development Institute,
Regulatory Strategy & Affairs Division,
Technology Strategy Division,
Quality Assurance Division,and Customer Support Division

Managing
Executive
Officer

52

Mandom Report 2022

Managing
Executive
OfficerSupervising Domestic Sales
In charge of the Sales Strategy Division,

Kenji
Sales Management Division,
Chain Store Sales Division 1,
Uchiyama thethe Chain Store Sales Division 2,

and the Chain Store Sales Division 3

Managing
Executive
OfficerSupervising the Marketing Units
In charge of the Development Management &Yasumasa OEM Planning Division,
the International Marketing Division,
Yoshidathe Marketing Strategy Division,and the Public Relations Division

2017
2018
2019

External Director

April Joined Japan Associated Finance Co., Ltd. (now JAFCO Co., Ltd.)
January Joined Marusan Securities Co., Ltd.
March General Manager, Investment Information Department, Marusan Securities Co., Ltd.
October General Manager, Underwriting Department, Marusan Securities Co., Ltd.
October Director, LivTech, Inc.
February Director, Head of Administrative H.Q. Division, LivTech, Inc.
March External Director, LUCKLAND CO., LTD.
March External Director (Audit and Supervisory Committee Member), LUCKLAND
CO., LTD. (current position)
March Standing Audit & Supervisory Board Member (Outside), UcarPAC Co. LTD.
(current position)
June External Director, YUSHIN PRECISION EQUIPMENT CO., LTD. (current position)
June External Director of the Company (current position)

Number and rate of attendance at
the Board of Directors meetings

April Joined Toyota Motor Co., Ltd.
January Project General Manager, Material Engineering Division No. 2 (High Polymer
Materials), Toyota Motor Corporation
January Project General Manager, Material Engineering Division No. 3 (Advanced
Materials Technology Research), Toyota Motor Corporation
January Project General Manager, Material Engineering Division No. 1 (Metal/Inorganic
Materials), Toyota Motor Corporation
June Managing Officer, (Material Technology Field, Intellectual Property Division
Environmental Affairs Div. and Future Project Div.), Toyota Motor Corporation
April Advisor, Primearth EV Energy Co., Ltd.
June Representative Director and Vice President, Primearth EV Energy Co., Ltd.
June Representative Director and President, Primearth EV Energy Co., Ltd.
June External Director of the Company (current position)

Number and rate of attendance at
the Board of Directors meetings

2022 (Year ended March 31):
13/13 (100%)
About Mandom

1983
1997
2000
2004
2008
2009
2015
2016

Reiko Nakayama(Born on April 2, 1959)

2001
2003
2007
2013
2013
2014
2020

External Director

Value Creation Story

1975
1999

2022 (Year ended March 31):
13/13 (100%)

Shigeki Suzuki(Born on January 2, 1953)

Hitoshi Tanii(Born on June 2, 1972)

Chairperson of Nominating
Committee
Chairperson of Compensation
Committee

Takehiko Ikehata

Takeshi Hibi

Audit & Supervisory Board Member

External Audit & Supervisory Board Member

External Audit & Supervisory Board Member

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at theBoard of Directors meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

Number and rate of attendance at the
Audit & Supervisory Board meetings

2022 (Year ended March 31): 13/13 (100%)
2022 (Year ended March 31): 15/15 (100%)
Chairperson of Audit & Supervisory Board

2022 (Year ended March 31): 13/13 (100%)
2022 (Year ended March 31):10/10 (100%)

In charge of the Corporate Strategy Division,
the Corporate Administration Division andthe ESG Promotion Division; General Manager,
the Corporate Strategy Division

Executive
Officer

TetsuakiMatsudaExecutive
Officer

Tetsuya
the General Administration Division and
Legal Affairs Office; General Manager,
Takahashi thethe Human Resources Division

In charge of the Human Resources Division,

2022 (Year ended March 31): 12/13 (92%)

2022 (Year ended March 31): 15/15 (100%)

Mikiharu Mori

2022 (Year ended March 31): 10/10 (100%)

2022 (Year ended March 31): 9/10 (90%)

Executive
Officer

Hidenori
YamadaIn charge of the International Business Strategy Division,
the International Business Division 1;General Manager,
the International Business Strategy Division

Executive
Officer

Mitsushi
Hiratani

In charge of the East Japan Sales Division,
the West Japan Sales Division and the Distribution
Channel Development Division; General Manager,
the East Japan Sales Division

Executive
Officer

GosukeOmori

In charge of the Brand Marketing Division 1,
the Brand Marketing Division 2, the EC Marketing Division,and the Sales Marketing Division; General Manager,
the Brand Marketing Division 1 and EC Marketing Division

Executive
Officer

Teiji
Izawa

In charge of Technical Development Institute,
Product Evaluation Institute andFundamental Research Institute;
General Manager, Technical Development InstituteMandom Report 2022

Company Informationof the IT Innovation Promotion Division and
Masanori Inthecharge
Finance Division; General Manager,
the Finance Division
SawadaExecutive Tsunehisa In charge of the Fukusaki Factory and
the Production Engineering Division;
Officer
General Manager, the Fukusaki Factory
HirotaExecutive
Officer

Masahiro Nishio

Performance for the Fiscal Year Ended March 31, 2022

Audit & Supervisory Board Member

2022 (Year ended March 31):
13/13 (100%)

Middle-Range Planning

External Director

Number and rate of attendance at
the Board of Directors meetings

Materiality

1996
April Joined NIPPON TELEGRAPH AND TELEPHONE CORPORATION
1997 September Established Digital Network Service Limited Partnership Company
Representative Partner
2000
January Established Infocast, Inc. Representative Director
2000 September Established Index Digital Co., Ltd. Representative Director and President
2005
June Established Synergy Marketing, Inc. Representative Director
2016 September External Director, Market Enterprise Co., Ltd. (current position)2017 February Representative Director, Pay-forward Inc. (current position)
2017
March External Director, adish Co., Ltd.
2019
January External Director, Space Engine Co., Ltd. (current position)
2019
July Chairperson of the Board, Synergy Marketing, Inc. (current position)
2019
August External Director, any Carry Co., Ltd. (current position)
2019 December External Director, ONDECK Co., Ltd. (current position)
2020
January Established Happy PR Co., Ltd. Representative Director (current position)
2020
June External Director of the Company (current position)

53

Compliance
Rather than relying on external standards and adopting passive compliance stance that centers on just adhering toregulations required by laws, the Mandom Group sets voluntary standards that exceed legal requirements, taking
an independent and proactive stance for the purpose of “usefulness to consumers,” toward protecting consumer
safety and benefits.
The Mandom Group has established the “Mandom Group Code of Conduct” as a compliance program that
officers and employees should always keep in mind in order to realize the corporate philosophy (five times since 1999).
In order to ensure thorough compliance with the Code of Conduct, the Company has established the Codeof Conduct Promotion Committee, which focuses on awareness-raising and education on compliance for all
departments.
In addition, in December 2002, we introduced (expanded the target up to business partners in 2007) a helpline
system, which is an internal reporting system for compliance violations, aimed at early detection, early correction,and prevention of risks related to compliance violations. With this system, legitimate information providers arecompletely protected, and retaliatory acts against information providers are absolutely prohibited.
▲

Mandom Groupʼs Code of Conduct

Excerpt from the Mandom Group Code of Conduct (FY2018 revised version)

Mandom Group Compliance
As a member of society, we fully understand domestic and international laws, customs, and all other social
norms and their respective mentality, comply with them with a spirit of legal compliance, and always act
ethically with a high degree of social decency.
The compliance of the Mandom Group is based on “usefulness” (founding spirit) and “honesty toward
society” (corporate philosophy).
In other words, rather than relying on external standards and adopting passive compliance stance that
centers on just adhering to regulations required by laws, the Mandom Group sets voluntary standards thatexceed legal requirements, taking an independent and proactive stance for the purpose of “usefulness toconsumers,” toward protecting consumer safety and benefits.
In addition, for the sake of honesty towards society, we will strictly adhere to compliance management andnever use fraudulent methods as a means of achieving results.
Therefore, at the Mandom Group,(1) End does not justify the means.
We do not accept the idea that any means can be adopted to achieve business results.
(2) Morals are superior to results. (Results are inferior to morals)
No matter how good the Companyʼs business performance is, the Company does notrecognize results obtained through immoral (unlawful) means.

54

Mandom Report 2022

Helpline System
In December 2002, we introduced the “Helpline System,”
which is an internal reporting system for compliance violations,
aimed at early detection, correction, and prevention ofrecurrence of risks related to compliance violation. This is asystem for accepting reports and consultations when one seesan act that violates various laws and the code of conduct in theworkplace, or when there is a risk of violation thereof. The Codeof Conduct Promotion Committee, including external parties(attorneys), serves as a reception desk and the operation of
the whistle-blowing system ensures that whistle-blowers are
not treated unfavorably by the Company. Since September
2007 we have been expanding the scope of the Helpline

About Mandom

System to include all domestic business partners of the
Mandom Group.
Our wish is that suppliers who have become aware of aviolation of compliance by a Group company, its officers or
employees in Japan, or an act that may cause a complianceviolation, contact the helpline reception desk in accordancewith the following guidelines. Upon receipt of the report, led by
the Code of Conduct Promotion Committee, the Company willpromptly investigate the facts and causes to correct, stop andprevent recurrence thereof and work to resolve them.

Value Creation Story▲

Group Company Information
Corporate Governance > Helpline System---

Materiality

1. Business partners that are subject to the helpline system are suppliers, customers, and other business partners of the domestic
Group companies, including the Company.
2. In order to conduct a fair investigation, we ask that you report your information under your real name, rather than anonymously.
3. The facts and the details (including personal information such as the name of the person reporting) are held only by the Companyʼs
investigating body (Code of Conduct Promotion Committee) and will not be used for any purpose other than investigation andresponse based on the report.
4. The Group will not cause any disadvantage to the person reporting, and will not make any request to the business partner to which
the person reporting belongs to that would cause him or her a disadvantage due to the fact that the report was made. However, thisdoes not apply to fraudulent reporting that goes against the intent of the Helpline System (avoiding or minimizing the risk of
non-compliance) such as slander or defamation.
5. You can make reports by phone, e-mail, or postal letter. Please refer to the report reference form attached at the end of the
document, and make the report following with the form as much as possible. Upon receipt of the report, the helpline will contact
the person who made the report for confirmation. Therefore, please be sure to clearly indicate the contact information and contact
method.

Middle-Range Planning

Special reception desk for business partners
5-12, Juniken-cho, Chuo-ku, Osaka 540-8530, Japan
Mandom Corporation●

Special telephone: +81-6-6767-5170

Helpline Desk, Code of Conduct Promotion Committee●

Special e-mail address: mandom-helpline@mandom.com

Performance for the Fiscal Year Ended March 31, 2022
Company Information

Mandom Report 2022

55

Middle-Range Planning
13th Middle-Range Planning “MP-13” and positioning of “VISION2027”
VISION2027
Our Vision 2027

“A cosmetics company possessing unique strengths in specialized areas (not an “all-rounder”).”
1 Authentic proposals

2 Global & ʻOnly Oneʼ
3 Exciting & Excellent

VISION Slogan

Use our ʻOnly Oneʼ strengths to provide Dedication to Service (Oyakudachi) to a billion people around the world.

VISION Policy

1 Leverage Asiaʼs economic growth to evolve into a truly global company

2 Display greater Dedication to Service (Oyakudachi) in the menʼs business segment andinvest aggressively to expand our womenʼs segment.

3 Provide authentic products and services to develop a MANDOM WORLD inspired by theconcept of stock-oriented management (the idea of strengthening or “stocking up” various assets
including ties with our stakeholders by providing authentic and valuable products and services).

Image
Overseas

Japan

Overseas

Breakthrough inspired by
future-orientation

Men

Business Domain
Women

Men

2027

Growth Strategy

2016

Japan

Profit Structure

Women

Human Asset Development

Background of MP-13 Formulation (External Environment, Internal Issues)
External environment●

Products▲▲

Threats/ Lengthening of ramifications of COVID-19
risks
Climate change/abnormal weather
2050 Carbon Neutrality Declaration
Changes in consumer lifestyles
Diversification of consumer values
Sudden changes in business environment due toexponential technological developments
Declining birthrate and aging society (Japan)

Issue awareness

●

●

●

●

●

●
●

●

●

●

Sluggish growth of Gatsby brandGrowth potential of womenʼs cosmetics
Product portfolio
Greater emphasis on items used for outings,
which are impacted by COVID-19
Shift in menʼs cosmetic portfolio
Acquire innovators for menʼs cosmetics●●

Region▲▲Opportunities Emergence of new wants in transition to the newnormalRise in environmental consideration and awareness,
primarily among young people
Expansion of ethical consumption
Growing expectations for wellness
Market expansion resulting from greater hygieneawareness
Elimination of information time lag due to globalization
Expansion of EC market
Expansion of GDP in Asia

●
●
●

●

●

●

●

●

●

●

Shift in shopping opportunities to EC
Intensified competition in the menʼs cosmetics market
Increase in new participants entering cosmetics
market (Japan)
Shrinking hair styling market (Japan)
Disappearance of inbound demand (Japan)
Declining earnings ratio in Indonesia●●

Internalstructure

▲

●

●
●

●
●

Identifying Materiality ➡ P.20

56

Mandom Report 2022●●

Declining earning capabilities (profit margin)
Distribution partnersʼ roles and terms andconditions of transactions
Low composition of EC sales in sales mix
Breaking away from self-sufficiency
Breaking away from successful past experiences
Initiatives for sustainability

About Mandom

VISION2027
FY2016FY2017FY2018FY2019FY2020Plowing

FY2021

FY2022

FY2023

Seeding

FY2024FY2025

FY2026FY2027

Blossoming andharvesting
Value Creation Story

MP-12 Infrastructure Development* Growth image

●
●

●

●
●

●
●

●

●
●
●

●
●

Response(Basic Management Policies)

Restrengthen Gatsby brand (Japan/overseas)
Propose new line from Gatsby (Japan)
Continue to strengthen Bifesta brand (Japan/overseas)
Enter hygiene market with sale of MA-T Pure (Japan/
overseas)
Expand to roll out our makeup brands such as Pixy and
SILKYGIRL into new countries (overseas)

1. Evolve and take on challenges in category strategy
for the new normal; cross-company marketingtransformation to improve brand value

Strengthen EC channel (Japan/overseas)
Strengthen digital marketing (Japan/overseas)
Strengthen menʼs face care and body care categories (Japan/
overseas)
Strengthen local development for Gatsby (overseas)
Initiatives to improve profitability in Indonesia

Newly include ROIC as a profitability target
Sustainability strategy placed at the core of management structure
Strengthen EC channel
Strengthen open innovation initiatives with external partners
New Dedication to Service (Oyakudachi) in realm of Health,Cleanliness, Beauty and Fun
Generate resources to create new value through utilization of DX
Propose products with an ethical perspective to attract customers

2. Speedy completion of business recovery in Indonesia
and reform business model of overseas operations

3. Shift to become a company that creates new value
through digitalization and open innovation

Company Information●

Period of transformation and challenges to achieve “VISION2027”

Performance for the Fiscal Year Ended March 31, 2022●

MP-14 Accelerated Growth

Middle-Range Planning●

MP-13 Reformation and Challenges

Materiality

●

Pre-

MP-13

4. Increase corporate value focused on sustainable
management and evolve Dedication to Service(Oyakudachi)

Mandom Report 2022

57

Middle-Range Planning

Look Back at Previous Middle-Range Planning
MP-10

Positioning

MP-11

Summary

4/2017-3/2020“Only One” Company in Asia with
Global Management Expertise

Middle-Range Planning to
Accelerate Growth and Cultivate
New Business in Asia

Corporate Infrastructure
Development for Realizing“VISION2027”

Aim to establish competitive advantages
by strengthening business expansion in
major markets and increase sales volume
by cultivating new markets and businessfieldsFirst of three phases to achieve“VISION2027”
Aim to become a truly global company
through proactive investments tostrengthen marketing and internal controls

We will further promote the shift to Asia
for the Groupʼs management in order toincrease our competitiveness in the Asianmarket, which has high growth
expectations.

Announced our corporate philosophy of a
new “MISSION” focusing on the conceptof “Human-Orientation,” and“VISION2027,” the company figure that
Mandom will become in 2027 when it
marks the 100th anniversary of thefounding of the Company.

Shifted to Planning from backcast
perspective. Envisioned the ideal formand shape Mandom should take from along-term perspective and developed aplan which aimed higher, not simply
continuing the path of the past.
●

Stable growth in menʼs grooming
business, the Companyʼs corebusiness
Aim for stable growth as a corebusiness; maintain and expand themarket share in categories of the menʼsgrooming segment.

●

Bolster the development of womenʼs
cosmetics business
Aim to strengthen and cultivate therollout of products centered on skincare
products, with the product lineups
catered for the markets in each country
where the operation of business is inplace.

●

Continue strengthening overseas
business operations with Asia as
growth engine
Establish Indonesia and China as
strategic markets and aim for proactive
business expansion to establish thegreater Asian market presence andimprove the growth of the Group. In
addition, construct distribution networkand expand businesses in Indian andIndochinese markets, which has a future
growth prospect.

Numerical Targets(Targets)(Actual)●Achieve sustainable growth inmenʼs grooming business

Aim for sustainable growth as a corebusiness; maintain and expand themarket share in categories of the menʼs
cosmetics segment●

Speed up the development of
womenʼs cosmetics business●

1 Develop a category of becoming arobust pillar

2 Increase brand value●

Continue strengthening overseas
business operations as growthengineAim to expand the scale of operation bystrengthening initiatives for Indonesianmarket as the major market andconstruct the foundation for developing
markets, such as building a distribution
network in China and Indochina.

(Targets)(Actual)Improvement of growth in overseas
business with a focus on Indonesia
1 Indonesia: Provide greater Dedication

Aim to speed up development in Asiawith a product lineup customized toeach country by focusing on theskincare and base makeup categories.
●

Promotion of category strategies andthorough enhancement of brand value

to Service (Oyakudachi) for middleincome class

2 Asian countries other than Indonesia:

Promote marketing measures uniqueto each country by understanding
consumersʼ wants and achieve higher
profitability●

Building a group operation system
and improving productivity per unit
1 Increases in the decision-making

accuracy and speed by building thegroupʼs personnel affair system,
accounting system, and information
system, and building a structure toincrease productivity per unit
2 Build a structure that allows theprompt formulation andimplementation of strategy at
operating companies(Targets)(Actual)Consolidated Net Sales¥66,000 million
or more¥68,200 million¥83,000 million¥77,300 million¥90,000 million¥81,700 millionMenʼs Grooming
Business Average Annual
Growth Rate

3.2% or more

5.4%

5.2% or more

2.6%

3.0% or more

-0.6%

“Gatsby” Brand Average
Annual Growth Rate

3.6% or more

5.9%

Womenʼs Cosmetics Business
Average Annual Growth Rate

19.3% or more

11.8%

15.0% or more

15.9%

10.0% or more

11.1%

9.4% or more

11.3%

11.4% or more

4.8%

10.0% or more

6.8%

10% or more

10.0%

¥8,600 million¥7,600 million

10% or more

7.1%

40% or higher

40.0%

40% or higher

40.3%

40% or higher

63.5%

Note: Womenʼs business in MP-12

Consolidated Overseas
Net Sales Average
Annual Growth Rate
Consolidated Operating
Profit Margin

Note: Operating profit amount in MP-11

Consolidated Payout
Ratio

Results and Issues

Foreign Exchange Impact
Rupiah/JPY (period average)
Middle-Range Planning Initial Set
Rate and Actual Rate by Year

58

Pre-MP-13

4/2014-3/2017

Focus on Dedication to Service(Oyakudachi) in Asia to accelerate growthin Group businesses

Key Points

MP-12

4/2011-3/2014

Mandom Report 2022

・The menʼs grooming business exceeded
target growth rates mainly for “Gatsby”
and achieved targets for consolidated
net sales.
・The womenʼs cosmetics business had
sluggish growth in Japan and did notreach targets.
・The overseas business performed well,and the annual growth rate was over
10%, exceeding the target.
・The consolidated operating profit margin
was 10%, reaching the target.

MP-10
Set Rate¥0.0093

2011: 0.0091
2012: 0.0086
2013: 0.0093

・Although the womenʼs cosmetics
business reached the target growth rate
due to growth of “Bifesta,” consolidated
net sales did not reach the target due tosluggish growth in the menʼs grooming
business.
・The overseas business did not reachtargets due to the impact of the factory
accident in Indonesia.
・Consolidated operating profit did notreach the target primarily due to net
sales being below the planned level.

MP-11
Set Rate¥0.0085

2014: 0.0089
2015: 0.0091
2016: 0.0083

・We were able to execute just about allof the infrastructure development
initiatives we should have executed.
・Net sales in menʼs grooming businessdecreased due to the impact of reduced
sales of summer seasonal goods due topoor weather in Japan in the fiscal year
ended March 31, 2020.
・Womenʼs cosmetics business continued
to reach the target growth rate due tostrong performance of “Bifesta” and “Pixy.”・In addition to net sales being below theplanned level, the injection of expenses
associated with infrastructuredevelopment also contributed to thetarget consolidated operating profit
margin not being reached.

MP-12
Set Rate¥0.0083

2017: 0.0084
2018: 0.0078
2019: 0.0077

Outline of “MP-13 (April 2021 through March 2024)”

Theme

Transformation and Challenges to Realize “VISION2027”
1. Evolve and take on challenges in category strategy for the new normal;
cross-company marketing transformation to improve brand value

Value Creation Story

Basicmanagement
policyAbout Mandom

MP-13 4/2021-3/2024

1 Quickly construct cross-company structure that leads to accelerating growth in overseas and womenʼscategories
Improve value of global brand (Gatsby/Bifesta) across Asia
3 Improve quality and expand regions where Dedication to Service (Oyakudachi) is offered in the
COVID-19 and the post-pandemic world
2

2. Speedy completion of Indonesia business recovery and reform businessmodel of overseas business
1
2

Materiality

Quickly build structure to solve the issues in Indonesian businessAccelerate growth by strengthening alliances between overseas countries and marketing areas;
improve management efficiency

3. Shift to a company that creates new value through digitalization and open
innovation
1
2

Achieve success in DX (digital transformation) resulting in the realization of wellness
Create and expand new beauty and glooming culture that includes external knowledge

1
2

Middle-Range Planning

4. Increase corporate value focused on sustainable management and evolve
Dedication to Service (Oyakudachi)
Promote business expansion that contributes to solving social issues (ESG/SDGs)
Advance capabilities to create unique values and improve corporate branding(Basic Management Targets)
Growth Potential¥81.5 billionMenʼsbusiness

CAGR by business

Womenʼsbusiness

6% or higher
16% or higher
17% or higher

CAGR

10.7%

Consolidated Operating
Profit Margin

8.0% or higher

Consolidated ROIC

ROIC = NOPLAT + gain/loss from equity-method
7.0% or higher (investments/invested
capital )Overseas
Business

Performance for the Fiscal Year Ended March 31, 2022

Profitability

Consolidated Net
Sales

*1

*2

*1 (Operating profit + interest income + dividend income) (1 - effective tax rate)*2 Borrowings + corporate bonds + lease liability + net assets [uses the average values of beginning and ending balances of the fiscal year]

Promote eco-friendly products
Japan:

60% of domestic products are eco-friendly(in line with voluntary standards)

Indonesia: Reduce volume of plastic containers/packaging by
Reduce volume of plastic waste byCompany Information

Address Social Issues

10%

10%

(compared to FY2016)(compared to FY2016)

Mandom Report 2022

59

Middle-Range Planning

Look Back on the Fiscal Year Ended March 31, 2022
Looking back on the fiscal year ended March 31, 2022
The fiscal year ended March 31, 2022 was the first year of theResults continued to be greatly affected by the COVID-19

13th Middle-Range Planning (hereinafter “MP-13”). MP-13 waspandemic in Japan and overseas. In particular, mainstay hairpositioned as a period of transformation and challenges tostyling products and cleansing products were impacted byachieve “VISION2027” for the 100th anniversary of thefewer opportunities to go out amidst restrictions placed on

founding of the Company. During this period, the Company

going outside. Also, summer products saw much lower sales

established four basic management policies and began efforts

due to unseasonable weather during the peak demand season.

for this transformation and these challenges. The number of

As a result, net sales fell 9.4% (down 4.4% if applying the newcases of COVID-19 continues to rise and fall repeatedly instandards for revenue recognition that were adopted this year

Japan and overseas. However, the Company began new

to the previous fiscal year) to 57,361 million yen. Operating

marketing efforts different from mass marketing in Japan as

profit and other items booked losses for the fiscal year.

we took on challenges for new changes as a company.

1

Evolve and take on challenges in category strategy for the new normal;
cross-company marketing transformation to improve brand value
Specific initiatives and results
1

Initiative for new marketing: Launch of “gatsby THE DESIGNER”
The Company took on the challenge of an approach to consumers that varies from mass distribution.
We aim to capture male users who proactively try products and gather information related to cosmetics, anissue for the existing Gatsby Series. In October 2021, we launched a fresh and adaptable menʼs cosmetic series
that allows users to express themselves as they want through a lineup of skin care, makeup, and hair styling
products.

2

Details ➡ P.24

Shift product portfolio in Japan market
Through the COVID-19 pandemic, consumer lifestyles have changed, resulting in lower sales for hair styling andmakeup products, areas of strength for the Company. Meanwhile, sales for skin care, body care, and hair careproducts have been solid.
We have begun to strengthen categories that can be expected to grow even in a world with COVID-19.
For example, in the case of menʼs cosmetics, we are proposing products that focus on the face and body categories
for new spring and summer products released in February 2022.

2

Speedy completion of Indonesia business recovery and reformbusiness model of overseas businessSpecific initiatives and results

Strengthen e-commerce channels overseas
Sales in the “Other overseas” segment in each country has risen steadily. Before the previous fiscal year, we completed
establishing official brand e-commerce shops in each country, allowing us to develop and execute brand communication
as we wish. The net sales growth rate of e-commerce channels in “Other overseas” exceeded 50%. With the sales mix
having surpassed 10%, the EC channel is growing into the second largest channel in scope, next only to drug stores.

60

Mandom Report 2022

About Mandom

The basic management policies of MP-13 and major initiatives
based on these are as follows.
For the fiscal year ending March 31, 2023, the Company hasplanned a second round of initiatives for new marketing efforts
and has developed several new initiatives, such as sales of“CYQ,” the makeup brand that allows generation Z youth in

Asia to be who they want to be. The Company will execute on
Value Creation Story

the MP-13 themes of “transformation and challenges” to breakout of our past business model, respond to changes in thelifestyles of our customers, and achieve proactive change.
Senior Vice President Executive Officer & Director

Yasuaki Kameda

3

Materiality

Shift to a company that creates new value through digitalization andopen innovation
Specific initiatives and results
1

Promotion of digital transformationof training, and (3) Digital training for all employees aimed at fostering a corporate culture.
2

Middle-Range Planning

In addition to realizing our vision in “VISION2027,” we feel that we need to increase productivity per unit beyond
the current levels. In the three years that include the “Pre-MP-13” fiscal year ended March 31, 2021, the Company
will generate management resources by promoting digital transformation as we aim to secure and establish a newcompetitive advantage by investing those management resources into new value creation. In the previous fiscal
year, the company primarily engaged in three initiatives: (1) Sharing between departments and improving operations
and efficiency of each department through digital tools, (2) Selection of next-generation digital leaders and beginning
Details ➡ P.62

Initiatives to reduce cost◎

Performance for the Fiscal Year Ended March 31, 2022

The Company made efforts to reduce fixed costs and save labor through the utilization of manufacturing robots anddigital equipment in order to mitigate the effects of increased depreciation costs from large-scale investments in the
Fukusaki Factory and increases in fixed expenses from lower manufacturing volume due to lower sales. In addition,
as raw material expenses and transportation expenses have become inflated recently, the Company establishedthe “Cost Down Project” in April to proceed with cost reduction activities quickly and deeper through a system that
integrates production, technology development, and marketing as we strive for further cost reduction.

Initiatives to strengthen the management foundation
Specific initiatives and results

Company Information

Preparing to transition to the HR system reform “MHRX” to provide Dedication
to Service (Oyakudachi) for consumers in response to a changing society
The Company decided to transition to the HR system “MHRX” that originated from Mandom-style jobs and autonomy
in order to continue to provide Dedication to Service for consumers stated in our vision through new value propositions
and respond accurately to drastic changes in society. The Company is now proceeding carefully, beginning with internalbriefings and small group discussions, in order to begin the full transition from FY 2023. Details ➡ P.32

Mandom Report 2022

61

Middle-Range Planning

Middle-Range Planning Topics〈 Feature 〉Promotion of Digital Transformation

MP-13
basic management
policy3. Shift to become a company that creates new value
through digitalization and open innovation
1

Achieve success in DX (digital transformation) resulting
in the realization of wellness

Transition to a company that produces new value throughdigital transformation
DX objectives

Dramatically expand both the quality and quantity of Dedication to Service bysimultaneously proceeding with initiatives for new businesses and improving
efficiency of existing businesses through a digital foundation

Image of cross-company DX promotion
The Company established the DX Promotion Committee in May 2021 to focus on these efforts.
The Company plans two steps related to DX promotion.
In Step 1, the Company will proceed with operation and efficiency improvements by promoting digitaltransformation of the Company by this fiscal year (ending March 31, 2023) to generate management
resources, such as time and people, etc.
At the same time, we will begin Step 2, propose themes and businesses to generate new value, andinvest management resources generated in Step 1 into actual creation activities.

Step 1“Generate management resources to take on challenges to generate new value”

Step 2“Invest generated management resources and take on challenges for new value creation”

Pre-MP-13

MP-13

2020

2021

2022

Step 1“Transformation by the Digitalization”

Pre-Step 2

62

Mandom Report 2022

2023

Step 1Develop digitalstructure

Step 2“Take on challenges for new value creation”

New
value
creation

Activities related to

About Mandom

Details of major initiatives in the fiscal year ended March 31, 2022
Step 1“Generate management resources totake on challenges to generate new value”
1. “OSHIGOTO DIGITALIZE”

BPR

Mandom promoted “OSHIGOTO DIGITALIZE” (“Work Digitalization”) as part ofinitiatives specifically for digital transformation to generate management resources.
Young employees took a central role as thought leaders for operations improvement.
They shared information on initiatives, primarily at monthly working groups, for thehorizontal deployment of initiatives across other departments while also aiming to
improve operations and efficiency in their own departments.

Value Creation Story〈Operations innovation〉

RPA〈Operations innovation〉

OSHIGOTO
DIGITALIZE〈Operations improvement〉

2. Promotion of utilization of RPA (Robotic Process Automation)
The Company automated regular operations and proactively promoted activities of
the RPA Promotion Team in order to generate management resources by improving

Materiality

efficiency of daily routine work and reducing time spent.
Also, this team received an internal award for greatly contributing to operations in
FY2021.

3. Promotion of cross-company BPR (Business Process Re-engineering)
The objective of BPR is to (1) “Reduce total labor hours across the company” and(2) “Generate time for initiatives for new value creation.”
In FY2022, the Company established BPR as the production indicator required of all
productivity per unit across the company.

Activities related to

Middle-Range Planningdomestic departments under department business plans as an initiative to improve
RPA Promotion Team awarded for contributions to operations

Step 2

Performance for the Fiscal Year Ended March 31, 2022

“Invest generated management resources
and take on challenges for new value creation”
1. Begin selection and training of next-generation digital leaders
In order to train human resources who develop knowledge as digital humanresources and are capable of taking the lead in new value creation utilizing digitaltechnology, we selected multiple human resources from each domain in Japan withthe aptitude to lead the next generation. We have already begun workshops, etc.,
and training for the selected members. First, we have them acquire digital technology
in each domain and field the business skills contributing to transformation.

Next-generation digital leader training

2. Digital education for all employees that fosters company culture
Company Information

The Company implemented e-learning for approximately 750 full-time and temporary employees both in and outside of Japanto deepen understanding of the background and objective of DX promotion as well as an overview of digital technology.
The Company plans to continue its training to improve digital literacy in the current fiscal year (ending March 31, 2023).
Following the digital leaders, the Company plans to select and train leader candidates and increase the number of employees
capable of co-creation with digital human resources in and outside the Company.

Mandom Report 2022

63

Financial Strategy
1

Financial strategy
Upon starting the 13th Middle-Range Planning (hereinafter “MP-13”), the Company developed the“Financial Strategy to Contribute to Sustainable Company Value Improvement” in April 2021 andcommunicated this strategy within the company.
In principle, the Company makes efforts to improve company value through the following financial
strategy from a perspective of free cash flow (FCF).
1

Setting ROIC targets
In recent years, “a decline in earning power” has been raised as the Groupʼs issue, which some investors areconcerned about.
In MP-13, in addition to traditional net sales and profit targets, the Company newly adopted ROIC from aperspective of capital efficiency and will shift to management that focuses on “earning power.”
MP-13 targets consolidated ROIC of 7.0% or higher for FY 2023 (final fiscal year of MP-13).
This level would surpass capital costs and make it possible to grow company value.
In the final fiscal year of MP-13, we aim to recover to FY2019 levels, before the COVID-19 pandemic.

2

Improve asset efficiency rate through balance sheet (BS) management
The Company will conduct the following measures as part of the financial strategies to achieve the ROIC
targets and evolve into management, taking into account the balance sheet (BS) and cash flow (CF).

(1) Reduction of cross-shareholding
The policy states that cross-shareholding
shall be less than 10% of net assets at theend of each fiscal year on the balance sheet.
As of March 31, 2024 (end of the final fiscal
year of MP-13), the Company policy is to
reduce cross-shareholdings by at least 30%
compared to March 31, 2021.
As of March 31, 2022, cross-shareholdings
was 9.1% of net assets at the end of the
fiscal year on the balance sheet, a 30.3%
reduction compared to March 31, 2021.

Trends in Cross-shareholdings (listed companies)
Left axis: ■ Amount recorded on balance sheet(Millions of yen)

20,00024

Number of companies(Companies)

24

16,00012,000

Right axis:

25

20

18
11,09914

11,158

8,000

6,247

4,000

0

2019

2020

2021

2022

(2) Improvement of cash conversion cycle (CCC)(Months)

Pre-MP-13

MP-13

6

4

2

0

2021

2022

2023

2024

(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

Target64

Mandom Report 2022

10

5(Year ended March 31) (Year ended March 31) (Year ended March 31) (Year ended March 31)

The Company is reviewing to improve thereceivables turnover cycle, inventory assets
turnover cycle, and debt repayments cycle inorder to cut down the cycle from 5.6 months
on a balance base on March 31, 2021 to
4.0 months or less on a balance base on
March 31, 2024 (end of the final fiscal yearof MP-13).
The cycle was 5.1 months based onbalances as of March 31, 2022, due to theimproved debt repayments cycle.

15

8,976

0

(3) Group cash management
About Mandom

The Company regularly checks the cash flows of each Group company, pools excess cash in the Company,
the headquarters of the Group, and utilizes it in high-profitability investments as the Group.
In the fiscal year ended March 31, 2022, the Company pooled 1.2 billion yen in capital.

(4) Financing for strategic investment

3

Value Creation Story

With cooperation from our partner banks, the Company has secured a line of credit of 20 billion yen.
In the fiscal year ended March 31, 2022, FCF was higher than the previous fiscal year and there was nooutstanding balance as of March 31.
The Company will utilize this financing for strategic investments with due consideration to FCF and the profit
and loss statement (P/L).
Furthermore, the Company aims to share its earnings results and direction, including Middle-Range Planning,with our partner banks as appropriate in constructing a strong relationship.

Improve shareholder returns
The Company strives to increase FCF through BS management, boost ROIC, and improve shareholder returns.

(1) Dividend policy

Materiality

The Company maintains a basic capital policy of the stable and continuous returning of profits to shareholders
through dividends. We had eight consecutive years of dividend increases until the fiscal year ended March
31, 2020 before the onset of the COVID-19 pandemic. We restarted dividend increases from the fiscal year
ended March 31, 2022 and aim to continue increases after taking a comprehensive consideration of FCF,
investment plans, and liquidity.
The Company targets a consolidated payout ratio of 40% or more.

(2) Acquisition of treasury shares
The Company will deliberate the acquisition of treasury shares after the comprehensive consideration of
economic status, company assets, FCF status, and stock price trends, and other factors.
Middle-Range Planning

2

Strengthening governance in accounting

1

Performance for the Fiscal Year Ended March 31, 2022

In executing this financial strategy, the Company must also strengthen the financial governance that
underpins the execution.
The Company is undertaking the following initiatives in order to strengthen the financial governance.

Introduction of the Company-wide ERP system (SAP)In addition to improving the accuracy and speed of decision-making, Mandom is proceeding with theimplementation of SAP for the Group companies aimed at ensuring the accuracy of information and accelerationof consolidating earnings. We aim to build a structure in which 80% of Group net sales are covered by companies
that have implemented SAP. As of March 31, 2022, such companies comprised 77% of Group sales.
We are also proceeding with visualization of management information at each overseas Group company.

2Standardization of accounting policies globally

3

Company Information

The Company aims to speed up management decisions and strengthen Group management operations
by changing and aligning various systems, operation rules, and processes in the Group to standardize
accounting policies on a global base globally.

Minimize tax risks globally
The Company is making efforts to minimize tax risks in the overall Group while fulfilling our social
responsibilities through appropriate tax payment in all countries where the Group is operating business.

Mandom Report 2022

65

Analyses of Management and Finances
Analysis of Operating Results
During the fiscal year under review, Japanʼs economy saw a slowdown
of corporate activity and consumer spending due to renewed
declarations of a state of emergency and quasi-emergency measuresassociated with the renewed spread of COVID-19. The economies
throughout Asia, our main sphere of overseas business, generally
appear to have cleared the worst period of COVID-19 despite
repeated restrictions on movement caused by the spread of the
impact of COVID-19. Although there were signs of economic recovery
in Japan and overseas due to progress with vaccinations, there is
growing uncertainty due to the rapid spread of new variants and theimpact of Russiaʼs invasion of Ukraine.

Under such economic conditions, the Group has commenced the 13th
Middle-Range Planning (MP-13) positioned as a period for “Reformation
and Challenges” for realizing VISION 2027.
In the fiscal year under review, net sales totaled ¥57,361 million (down
9.4% year on year), operating loss totaled ¥2,308 million (operating
loss of ¥793 million in the previous fiscal year), ordinary loss totaled¥1,856 million (ordinary loss of ¥273 million in the previous fiscal year),and loss attributable to owners of parent totaled ¥621 million (profit
attributable to owners of parent of ¥860 million in the previous fiscal
year).

2021 (Year ended March 31) 2022 (Year ended March 31)

ChangeYoY(Millions of yen)(%)

(Millions of yen)

(Millions of yen)

Net sales

63,31057,361(5,948)-9.4

Cost of sales

33,88233,96481+0.2

Selling, general and administrative expenses

30,22125,706(4,514)-14.9

Operating loss

(793)

(2,308)(1,515)−Non-operating profit (expenses)

520

452

(67)

-13.1

Ordinary loss

(273)

(1,856)(1,583)−Extraordinary profit (losses)

1,494

1,094

(400)

-26.8

Profit (loss) before income taxes

1,221

(762)

(1,983)−

Income taxes

496

72

(424)

-85.4

Loss attributable to non-controlling interests

(136)

(212)

(76)

−

Profit (loss) attributable to owners of parent

860

(621)

(1,482)−Analysis of Financial Position and Cash Flows66

1. Assets, Liabilities and Total Equity

2021 (Year ended March 31)

2022 (Year ended March 31)

Current assets were ¥42,868 million as of March 31, 2022 (comparedto ¥39,775 million from a year earlier). This was mainly due to anincrease of ¥3,874 million in cash and deposits. Non-current assets
were ¥42,899 million as of March 31, 2022 (compared to ¥48,135
million from a year earlier). This was mainly due to a decrease of¥3,035 million in investments and other assets due to the sale ofinvestment securities, and a decrease of ¥1,727 million in property,
plant and equipment due to depreciation.
Current liabilities were ¥11,233 million as of March 31, 2022 (comparedto ¥12,298 million from a year earlier). This was mainly due to adecrease of ¥3,467 million in short-term borrowings. Non-current
liabilities were ¥5,482 million as of March 31, 2022 (compared to¥5,899 million from a year earlier). This was mainly due to a decreaseof ¥535 million in deferred tax liabilities.
Total net assets were ¥69,051 million as of March 31, 2022, down
¥662 million from ¥69,713 million a year earlier. This was mainly due
to the valuation difference on available-for-sale securities decreasingby ¥1,477 million due to the sale of investment securities and retained
earnings decreasing by ¥2,149 million due to the posting of loss
attributable to owners of parent and payment of dividends, despite
foreign currency translation adjustment increasing by ¥2,377 million.
As a result, shareholdersʼ equity ratio was 73.8% as of March 31,
2022 (compared to 73.1% from a year earlier).

Total assets
87,911

Total assets
85,767

Mandom Report 2022

Current
liabilities

Current
liabilities

12,298Current
assets39,775

Non-current
liabilities

5,899

11,233Current
assetsTotal equity

69,713

48,135

5,482

42,868

Total equity
Non-current
assetsNon-current
liabilities

69,051

Non-current
assets42,899(Millions of yen)

2. Status of Cash Flows▲

Cash Flows from Operating Activities
Net cash provided by operating activities was ¥7,693 million (compared to ¥6,208 million
provided from a year earlier). This was mainly due to increases caused by increases of¥5,337 million in depreciation and ¥1,743 million in trade payables, and a decrease of ¥964
million in inventories.

6,208

7,693

1,125

▲

-5,680-5,385▲

Value Creation Story

Cash Flows from Investing Activities
Net cash used in investing activities was ¥185 million (compared to ¥5,680 million usedfrom a year earlier). This was mainly due to increase in proceeds from sale and redemptionof investment securities of ¥2,462 million and decreases resulting from purchase ofproperty, plant and equipment of ¥1,741 million and a net increase in time deposits of ¥586
million.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥5,385 million (compared to ¥1,125 million
provided from a year earlier). This was mainly due to decreases resulting from short-termborrowings decreasing by ¥3,476 million and dividends paid of ¥1,525 million.

2022(Year ended March 31)
About Mandom

Cash and cash equivalents as of March 31, 2022, came to ¥16,015 million, up ¥2,974
million from the end of the previous fiscal year.
Factors influencing cash flows during the term are as follows.

2021(Year ended March 31)-185■ Cash Flows from Operating Activities (Millions of yen)
■ Cash Flows from Investing Activities (Millions of yen)
■ Cash Flows from Financing Activities (Millions of yen)

Capital Policy
Materiality

The Group has two main funding requirements: operation funding requirements and capital investment funding.
The main requirements for operation funding are the supply of raw materials for manufacturing the Groupʼs products, as well as operating expenses
such as manufacturing expenses, and selling, general and administrative expenses. For capital investment funding, the main requirements are thepurchase of non-current assets such as buildings and machinery associated with the acquisition of production facilities.

1. Financial policy
representative office in the region. The Group regards any additional
funds in hand as cash reserves for business investment, and places
the utmost priority on ensuring their liquidity and security.
In this uncertain situation caused by the spread of COVID-19 and otherfactors, we have set commitment lines with financial institutions, andbuilt a system that can constantly secure funds of over three monthsʼ
worth of monthly sales in order to prepare for unforeseen funding.

Middle-Range Planning

The Groupʼs financial policy is to maintain a solid balance sheet andappropriate liquid assets for its business activities, and capital is usedprimarily to fund operations and for capital investments, and prioritizes
the use of internal reserves in principle, with any shortfalls covered byloans from financial institutions. If a domestic subsidiary lacks necessary
funds, the shortfall is covered by a loan from the parent company,
while demand for short-term funds from overseas subsidiaries is met
by local-currency-based short-term loans taken out by the Groupʼs main

2. Facilities

Segment name

FY2021 (Millions of yen)

YoY change (%)

1,331

-82.1

Indonesia

466

82.6

Other overseas

171

-38.2

1,970

-75.3

Japan

Total

2) New important facilities
The Group determines its plans for capital investments while
comprehensively taking into consideration investment efficiency andother factors. In principle, each consolidated company separately
determines its capital investment plan. However, the Group makes
adjustments mainly to the reporting companies when determining theplan.
As of March 31, 2022, there were no plans for new important facilities
excluding the new establishment for routine renewal of facilities.

Performance for the Fiscal Year Ended March 31, 2022

1) Overview of capital investments
The Group maintains a basic policy of making capital investments infacilities to manufacture products that sustain a competitive advantage.
Total capital investments were ¥1,970 million as of March 31, 2022,
down ¥6,009 million (75.3%) from a year earlier.
A breakdown by segment is as follows.

3. Dividend policy
stock price trends.
With regard to dividends for the fiscal year under review, although theprofit attributable to owners of parent was a loss of ¥621 million, theCompany paid a dividend of ¥36 per share as a result of considerationaccording to the aforementioned policy.
Resolution date

October 29, 2021
Resolution of the Board of Directors
June 24, 2022
Ordinary General Meeting of Shareholders

Total amount of dividends

Dividends per share

809

18.00

809

18.00

(Millions of yen)Company Information

As for shareholder returns, the Company has a basic capital policyof implementing stable and continuous returns through dividends(numerical target: consolidated payout ratio of 40% or more excluding
special elements), and determines dividends based on the policy ofaiming for continuous increases in dividends with comprehensive
consideration for factors such as free cash flow, investment plans andsecuring liquidity. Furthermore, we keep the improvement of capitalefficiency in mind. As such, in addition to enhancing shareholder
returns and proactive business investments, we will also consider
the purchase of treasury shares depending on a number of factors,
including economic conditions, company assets, free cash flow and(Yen)

Mandom Report 2022

67

Financial and Non-financial Highlights
Financial Highlights▲

77,351

81,38678,997*3

Earnings per share [EPS] (Yen)(Millions of yen)

▲

*1 *2

Consolidated net sales

81,774119.0563,310130.19108.7697.68

57,361

19.17-13.84
2017
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) (Year ended March 31)

Consolidated operating profit (Millions of yen)

Return on equity [ROE] (%)

▲

▲

7,617

8,457

2017
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) (Year ended March 31)

9.1
7,135

9.2
7.3

5,970

6.5

1.3

-793

-1.0

-2,308
2017
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) (Year ended March 31)

Operating profit margin (%)

Return on invested capital [ROIC] (%)

10.4

9.0

▲

▲

9.8

2017
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) (Year ended March 31)

7.3[Adopted as an earnings indicator from the fiscal year ended March 31, 2022]

-1.3

-1.7
-4.0

2017
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) (Year ended March 31)

5,566

Payout ratio (%)▲▲

Profit attributable to owners of parent (Millions of yen)

2022
(Year ended March 31)

166.9

6,086
5,087

4,445

40.3

860

-621
2017
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) (Year ended March 31)

45.3

55.2

63.5

（－）
2017
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) (Year ended March 31)*1 Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated subsidiaries
included in financial statements conforming to IFRS.
*2 From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29), etc.
*3 We executed a 2-for-1 stock split of common stock on October 1, 2017. EPS above is all figures taking into consideration the impact of stock split.

68

Mandom Report 2022

▲▲

Domestic brand share of menʼs cosmetic product market

About Mandom

Non-financial Highlights
Number of employees in consolidated companies(fiscal year ended March 31, 2022)

Market data by Mandom calculations (monetary value)
Period: April 2021-March 2022

2,763
Other overseas

Japan

539／19.5%

Others 37.1%

Value Creation Story

Gatsby 16.5%

663／24.0%

Men

A 9.2%

1,277／46.2%
Women

1,486／53.8%

B 9.1%

Indonesia

C 8.0%

1,561／56.5%

Lúcido 4.8%

(as of March 31, 2022)

Mandom Corporation(Non-Consolidated)
Manager

Middle-Range Planning

Men 81.4%

Men 68.8%

Performance for the Fiscal Year Ended March 31, 2022▲■■ CO2 emissions (t-CO2)●● Per unit of net sales (t-CO2/millions of yen)

*7 *8

Number of employees who have taken childcare leave and return rate

Number of employees who have taken childcare leave ■■ Men ■■ Women
Return rate (%) ●● Men ●● Women

0.425
0.348

Women 31.2%▲*5CO2 emissions (Scope1+2 in Japan and overseas)

0.369

Manager

Women 18.6%

Men 92.1%

0.389

PT MandomIndonesia Tbk

Assistant manager

Women 7.9%

45.9%

Materiality*6

Percentage of males and females in management orassistant management positions (fiscal year ended March 31, 2022)▲▲

Initiatives for eco-friendliness in products sold in Japan(Percentage of products that clear our standards*4 )100

100 100

100 100

100 100

1001000.366

2430,05630,74328,457
23,162

17

24,391

10

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)*4 Our standards: eco-friendly product standards(https://www.mandom.co.jp/en/csr/environment.html)*5 The method used to calculate the data for all fiscal years was revised.

799Company Information

0

12
8

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)*6 Officers (directors and Audit & Supervisory Board members) are not included inmanager positions.
*7 Return rate: number of employees who have returned after childcare leave ÷ thenumber of employees planning to return from childcare leave × 100*8 Performance of Mandom Corporation (Non-consolidated)
Mandom Report 2022

69

11-Year Consolidated Financial and Non-financial
2012

2013

2014

2015

March 2012

March 2013

March 2014

March 2015

59,80160,427

68,21570,925

Operating Results (Millions of yen)
Net sales
Overseas ratio (%)
Operating profit or operating loss

34.9

36.8

40.0

41.3

6,050

5,947

6,853

6,996

37.1

34.1

34.6

35.9

Ordinary profit or ordinary loss

6,308

6,241

7,330

7,595

Profit attributable to owners of parent orloss attributable to owners of parent

3,299

3,607

4,091

4,425

Capital investment

2,157

1,467

7,632

3,443

Depreciation and amortization

2,242

2,165

2,143

2,599

Research and development expenses

1,921

1,792

1,960

1,731

55,60060,16367,85875,980Overseas ratio (%)

Financial Position (Millions of yen)
Total assets
Liabilities

8,517

9,126

12,67915,000Total equity

47,082

51,03755,17960,980Cash Flows (Millions of yen)
Cash flows from operating activities

3,692

7,605

7,303

5,488

Cash flows from investing activities(2,694)(5,387)(5,596)(5,141)

998

2,218

1,706

346

(1,668)(1,646)(1,833)(341)

Book value per share (BPS)

930.501,005.54

1,091.54

1,197.11

Earnings (loss) per share (EPS)

70.56

77.15

87.51

94.64

Cash dividends per share

30.00

31.00

35.00

38.00

Operating profit margin

10.1

9.8

10.0

9.9

Shareholdersʼ equity ratio

78.3

78.2

75.2

73.7

Return on equity (ROE)

7.7

8.0

8.3

8.3

Return on assets (ROA)

11.6

10.8

11.5

10.6

Payout ratio

42.5

40.2

40.0

40.2

2,256

2,221

2,316

2,400

Free cash flows
Cash flows from financing activities

Per Share Data (Yen)

Financial Index (%)

Non-financial Data
Number of Employees By region
Japan
Indonesia
Other overseas
Domestic brand share of menʼs cosmetic productmarket* (%)
Domestic brand share of menʼs cosmetic productmarket* (ranking)

590

565

566

557

1,236

1,222

1,353

1,421

430

434

397

422

Due to a change in the calculation method in April 2021, data that can be calculated
from the 101st fiscal year (ended March 31, 2018) onward.

Notes: 1. We executed a 2-for-1 stock split of common stock on October 1, 2017. EPS and Cash dividends per share above are all figures taking into consideration the impact of stock
2. Beginning from the fiscal year ended March 31, 2019, some items that had been treated as expenses have been deducted from net sales at overseas consolidated subsidiaries
3. The “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018) have been applied from the beginning of the first
4. From the fiscal year ended March 31, 2022, some items that had been treated as expenses have been deducted from net sales of the Japan segment in order to apply the* Market data by Mandom calculations (monetary value) Period: April-March of each year

70

Mandom Report 2022

Highlights
2017

2018

2019

2020

2021

2022

March 2017

March 2018

March 2019

March 2020

March 2021

March 2022

75,07877,351

81,38678,997

81,77463,31057,361

41.3

40.6

41.3

38.7

43.5

38.6

43.2

6,594

7,617

8,457

7,135

5,970

(793)

(2,308)

34.7

40.5

49.5

−

−

9,264

8,161

6,706

(273)

(1,856)

6,383

5,566

6,086

5,087

4,445

860

(621)

3,725

3,309

2,855

3,559

9,193

7,980

1,970

2,919

3,165

3,315

3,583

4,369

4,818

5,337

1,558

1,717

1,813

1,826

1,855

1,480

1,399

79,821

83,83593,19593,402

91,66087,91185,767

13,965

14,245

17,445

17,592

18,20818,198

16,71665,856

69,59075,74975,81073,452

69,71369,051

7,232

9,045

10,246

6,587

6,937

6,208

7,693

(2,383)(5,920)(6,776)

6,921(9,836)(5,680)

(185)

3,469

13,509(2,899)

528

7,508

(2,669)(4,020)(8,307)

1,125(5,385)

1,277.01

1,352.88

1,484.67

1,496.20

1,495.40

1,431.42

1,407.65

136.52119.05130.19108.76

97.68

19.17

(13.84)

40.00

48.00

59.00

60.00

62.00

32.00

36.00

8.8

9.8

10.4

9.0

7.3

(1.3)

(4.0)

74.8

75.4

74.5

74.9

73.2

73.1

73.8

11.0

9.1

9.2

7.3

6.5

1.3

(1.0)

9.5

10.0

10.5

8.8

7.2

(0.3)

(2.1)

29.3

40.3

45.3

55.2

63.5

166.9

−

2,663

2,662

2,694

2,914

2,954

2,914

2,763

581

595

605

629

667

663

1,670

1,671

1,693

1,701

1,652

1,561

412

411

428

616

624

595

539

27.9

27.6

26.8

24.5

22.8

No. 1

No. 1

No. 1

No. 1

No. 2

under the same conditions will be available

Company Information

562
1,689

Performance for the Fiscal Year Ended March 31, 2022

3,124
(2,215)

Middle-Range Planning

4,849(3,534)

Materiality

33.3
8,183

Value Creation Story

28.7
7,415

About Mandom

2016
March 2016

split.
included in financial statements conforming to IFRS.
quarter of the fiscal year ended March 31, 2019.
Accounting Standard for Revenue Recognition (ASBJ Statement No. 29).

Mandom Report 202271

Consolidated Financial Statements
Consolidated Balance Sheet(Millions of yen)

2021

2022

ChangeCash and deposits

16,14320,0183,874

Notes and accounts receivable - trade

9,081

9,227

145

Merchandise and finished goods

8,931

8,511

-420

Item

AssetsCurrent assets

352

456

104

Raw materials and supplies

3,047

3,152

105

Other

2,230

1,524

-705

(11)

(22)

-11

39,77542,8683,092Work in process

Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant, and equipment

30,51932,012

1,493

Accumulated depreciation(14,477)(15,588)-1,111

Buildings and structures, net

16,041

16,423382

Machinery, equipment, and vehicles

26,29426,987693(17,046)(19,392)-2,346

9,248

7,595

-1,652

Buildings and structures

Accumulated depreciation
Machinery, equipment, and vehicles, net
Tools, furniture, and fixtures

7,397

7,784

387

Accumulated depreciation(6,414)(7,003)

-588

983

781

-201

1,143

1,213

69

Tools, furniture, and fixtures, net
Land
Leased assets
Accumulated depreciation

4

4

0

(0)

(1)

-0

3

2

-0

682

874

192

Accumulated depreciation

(312)

(538)

-226

Right of use assets, net

369

335

-34

Construction in progress

598

308

-289

28,387

26,660-1,727

2,835

2,821

-13

866

861

-4

Customer relation assets

1,352

1,346

-6

Software

2,132

1,825

-306

530

388

-142

7,716

7,243

-473

-3,329Leased assets, net
Right of use assets

Total property, plant, and equipment
Intangible assets
Goodwill
Trademark right

Other
Total intangible assets
Investments and other assets

10,735

7,405

Retirement benefit asset

252

309

56

Deferred tax assets

462

627

165

Other

74

Investment securities

72

589

663

Allowance for doubtful accounts

(8)

(10)

-2

Total investments and other assets

12,031

8,995-3,035

Total non-current assets

48,13542,899-5,236

Total assets

87,91185,767-2,143

Mandom Report 2022

(Millions of yen)

2022

ChangeNotes and accounts payable - trade

1,374

3,188

1,814

Short-term borrowings

3,694

226

-3,467

Accounts payable - other

3,608

4,111

502

Income taxes payable

290

151

-138

Provision for bonuses

841

654

-186

Provision for Directorsʼ compensations based on profit

54

37

-16

Provision for sales returns

481

−

-481

1,954

2,863

909

12,298

11,233-1,064

Deferred tax liabilities

2,157

1,621

-535

Retirement benefit liability

2,456

2,580

123

Other

1,285

1,280

-4

Total non-current liabilities

5,899

5,482

-416

Total liabilities

18,198

16,716-1,481

Share capital

11,394

11,3940

Capital surplus

11,013

11,05844

Retained earnings

50,66248,513-2,149Treasury shares(6,826)(6,589)236

66,24564,376-1,868Valuation difference on available-for-sale securities

4,825

3,348

-1,477

Foreign currency translation adjustment(6,933)(4,555)

2,377

Remeasurements of defined benefit plans

85

152

67

Total accumulated other comprehensive income(2,023)(1,055)968

Non-controlling interests

5,491

5,729

238

Total net assets

69,71369,051-662

Total liabilities and net assets

87,91185,767-2,143

About Mandom

2021

Item

Liabilities
Current liabilities

Total current liabilities

Value Creation Story

Other

Materiality

Non-current liabilities

Middle-Range Planning

Net assets
Shareholdersʼ equity

Performance for the Fiscal Year Ended March 31, 2022

Total shareholdersʼ equity
Accumulated other comprehensive income

Company Information

Mandom Report 202273

Consolidated Financial Statements

Consolidated Statement of Income(Millions of yen)

2021

2022

ChangeNet sales
Cost of sales
Gross profit

63,31033,882
29,42757,361
33,964
23,397-5,94881-6,030

Selling, general and administrative expenses
Promotion expenses
Sales incentive
Advertising expenses
Transportation and storage costs
Remuneration, salaries and allowances
Provision for bonuses
Retirement benefit expenses
Depreciation
Amortization of goodwill
Research and development expenses
Other
Total selling, general and administrative expenses

4,836
1,366
3,416
3,060
7,473
648
391
1,409
216
1,480
5,922
30,221

2,021

2,997
7,450
524
296
1,429
226
1,399
6,156
25,706-2,815-1,366
-211
-62
-22
-141
-95
19
9
-80
252
-4,514

Operating loss

(793)

(2,308)-1,515Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity method
Other
Total non-operating income

199
131
95
212
638

193
108
162
157
622

-5
-22
67
-55
-16

Non-operating expenses
Interest expenses
Commitment fees
Sales discounts
Compensation expenses
Foreign exchange losses
Other
Total non-operating expenses

23
15
11
34
13
20
118

22
12
−
103
2
29
170

-1
-2
-11
68
-10
9
51

Ordinary loss

(273)

(1,856)-1,583Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income

1
1,791
1,793

3
1,162
1,165

1
-629
-628

4
291
2
1

2
68

Item

Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Impairment losses
Loss on sale of investment securities
Other
Total extraordinary losses

74

−
3,204

−
299

71

-1
-223
-2
-1
0
-227

Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)

1,221
777
(280)
496
724

(762)
132
(59)
72
(834)

-1,983
-645
220
-424
-1,558Loss attributable to non-controlling interests

(136)

(212)

-76

Profit (loss) attributable to owners of parent

860

(621)

-1,482

Mandom Report 2022−−0Consolidated Statement of Comprehensive Income(Millions of yen)

2021

2022

Change724(834)-1,558Valuation difference on available-for-salesecurities(553)(1,476)-922

Foreign currency translation adjustment(1,796)

2,884

4,681

Remeasurements of defined benefit plans,
net of tax

277

138

-139

Share of other comprehensive income ofentities accounted for using equity method

(44)

108

153

Total other comprehensive income(2,117)

1,654

3,772

Comprehensive income(1,393)

820

2,214

Comprehensive income attributable toowners of parent

(785)

346

1,131

Comprehensive income attributable to noncontrolling interests

(608)

474

1,082

Profit (loss)

About Mandom

Item

Other comprehensive income

Value Creation Story

Comprehensive income attributable toMateriality
Middle-Range Planning

Performance for the Fiscal Year Ended March 31, 2022
Company Information

Mandom Report 202275

Consolidated Financial Statements

Consolidated Statement of Changes in Equity(Millions of yen)

For the Fiscal Year Ended March 31, 2021

Shareholdersʼ equity

Balance at beginning of
periodSharecapitalCapitalsurplusRetainedearnings

11,394

11,013

51,911

Accumulated other comprehensive income

Valuation
Total
NonForeign
difference
Total
Remeasurements accumulated controlling Total net
Treasurycurrency
assetsothershareholdersʼ on availableof definedinterests
sharestranslation
for-salebenefit plans comprehensive
equityadjustment
securities
income(6,826)67,494

5,379(5,542)

(213)

(377)

6,335

73,452

Changes during period
Dividends of surplus(2,109)(2,109)(2,109)Profit attributable toowners of parent

860

860

860

(0)

(0)

(0)

0

0

0

Purchase of treasury
shares
Disposal of treasury
shares(0)

Net changes in items otherthan shareholdersʼ equity
Total changes during period
Balance at end of period(553)(1,391)299(1,645)(843)(2,489)−(0)(1,249)(0)(1,249)(553)(1,391)299(1,645)(843)(3,739)11,394

11,01350,662(6,826)

66,245

4,825(6,933)85(2,023)

5,491

69,713(Millions of yen)

For the Fiscal Year Ended March 31, 2022

Shareholdersʼ equity

Balance at beginning of
periodSharecapitalCapitalsurplusRetainedearnings

11,394

11,01350,662

Accumulated other comprehensive income

Valuation
Total
NonForeign
difference
Total
Remeasurements accumulated controlling Total net
Treasurycurrency
assetsothershareholdersʼ on availableof definedinterests
sharestranslation
for-salebenefit plans comprehensive
equityadjustment
securities
income(6,826)

66,245

4,825(6,933)85(2,023)

5,491

69,713

Changes during period
Dividends of surplus(1,527)(1,527)(1,527)

Loss attributable toowners of parent

(621)

(621)

(621)

(0)

(0)

(0)

236

227

227

53

53

Purchase of treasury
shares
Disposal of treasury
shares(9)

Change in ownershipinterest of parent due totransactions with noncontrolling interests

53

Net changes in items otherthan shareholdersʼ equity
Total changes during period
Balance at end of period

76

Mandom Report 2022

(1,477)

2,377

67

968

238

1,206

−

44

(2,149)236(1,868)(1,477)

2,377

67

968

238

(662)

11,394

11,05848,513(6,589)64,376

3,348(4,555)152(1,055)

5,729

69,051

Consolidated Statement of Cash Flows(Millions of yen)

2021

2022

ChangeAbout Mandom

Item

Cash flows from operating activities
Profit (loss) before income taxes

1,221

(762)

-1,983

Depreciation

4,818

5,337

518

216

226

9

2

−

-2

Amortization of goodwill
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for sales returns

(4)

12

17

303

(481)

-784

(45)

(190)

-145

212

(3)

-215

Interest and dividend income

(330)

(302)

28

Foreign exchange losses (gains)

(174)

(105)

68

Share of loss (profit) of entities accounted for using equity method

(95)

(162)

-67

291

68

-223

(1,790)(1,162)628

Loss on retirement of property, plant, and equipment
Loss (gain) on sale of investment securities
Loss (gain) on sale of non-current assets

2

(1)

-3

Decrease (increase) in trade receivables

2,494

319

-2,174

2,364

964-1,399(1,045)

1,743

2,789

Increase (decrease) in accounts payable - other(1,128)

(251)

876

Other, net

(458)

2,557

3,016

Subtotal

6,853

7,807

953

459

482

22

Interest and dividends received
Interest paid
Income taxes paid

(22)

1

(573)

507

6,208

7,693

1,485

Middle-Range PlanningNet cash provided by (used in) operating activities(23)(1,080)Materiality

Decrease (increase) in inventories
Increase (decrease) in trade payables

Value Creation Story

Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability

Cash flows from investing activities
Payments into time deposits(3,346)(3,264)82

Proceeds from withdrawal of time deposits

4,259

2,678

-1,581

Purchase of property, plant, and equipment(8,219)(1,741)

6,477

(660)

(350)

309

Purchase of intangible assets

(8)

(8)

-0

2,344

2,462

117

(49)

39

88

(5,680)

(185)

5,495

Net increase (decrease) in short-term borrowings

3,650(3,476)-7,127

Repayments of lease obligations

(178)

(200)

-21

(2,109)(1,525)583

Other, net
Net cash provided by (used in) investing activities

Performance for the Fiscal Year Ended March 31, 2022

Purchase of investment securities
Proceeds from sale and redemption of investment securities

Cash flows from financing activities

Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not resulting in change in scope of consolidation
Other, net

(235)

(3)

232

−

(178)

-178

(0)

-0

1,125

(5,385)-6,511

Effect of exchange rate change on cash and cash equivalents

(270)

851

1,121

Net increase (decrease) in cash and cash equivalents

1,383

2,974

1,591

Cash and cash equivalents at beginning of period

11,657

13,040

1,383

Cash and cash equivalents at end of period

13,04016,015

2,974

Mandom Report 2022

Company Information(0)

Net cash provided by (used in) financing activities77

1989. 3

▲

9

▲

▲
▲
▲

▲
▲
▲
▲

1994. 6▲

1995. 6▲▲

1996. 4

▲
▲

12

▲

1997. 1▲▲

4
1998. 8▲

1999. 1

▲

3

▲
▲

4
8

▲

▲

Mandom Corporation shares traded on the over-the-counter market
Issued 500,000 shares, increasing capital through public offering
Received ECO Mark certification for foam products from theJapan Environment Association for the first time in the industry
Launched Lúcido, a lineup of fragrance-free menʼs cosmetics
products, unprecedented in the industry
Japan Doctor Renaud Cosmetics Company was changed to
Piacelabo Corporation
Started a joint venture in Taiwan (now consolidated subsidiary
Mandom Taiwan Corporation)

Commenced 3rd 3-year Middle-Range Planning
Started a joint venture in Thailand (now consolidated subsidiary
Mandom Corporation (Thailand) Ltd.)Prices revised due to abolishment of sales subsidies
Completed construction of Mandom Tokyo Building
Started a joint venture in the Philippines (now consolidated
subsidiary Mandom Philippines Corporation)
Construction completed on the first stage of new Head Officebuilding; commenced operations in the new building
Commenced 4th 3-year Middle-Range Planning
Started a joint venture in Hong Kong (now an equity method
affiliate Sunwa Marketing Co., Ltd.)
Launched Lúcido-L, a lineup of fragrance-free products for women
P.T. Tancho Indonesia Tbk listed on the Jakarta Stock Exchange(currently the Indonesia Stock Exchange)
New Head Office building completed upon finishing second
phase construction
Mr. Motonobu Nishimura appointed president of Mandom Corporation
Established External Director
Commenced 5th 3-year Middle-Range PlanningLaunched “Mandom World,” the Groupʼs website on the Internet
Started a joint venture in China (now consolidated subsidiary
Zhongshan City Rida Cosmetics Co., Ltd.)Started a joint venture in Malaysia (now consolidated subsidiary
Mandom (Malaysia) Sdn. Bhd.)
Established Konan Service Corporation (now mbs Corporation)
Repurchased 1.7 million shares of Mandom common stock on
the open market
Launched System E/O, a line of skin treatment for women withsensitive skin through mail-order sales
Achieved ¥10 billion sales of Gatsby products, a first in theJapanese cosmetics industry for menʼs products
Commenced 6th 3-year Middle-Range Planning
Started a joint venture in South Korea (now consolidated
subsidiary Mandom Korea Corporation)2000 -▲

2001. 3

▲

▲

11

▲

▲

8

▲

▲

2000. 5▲▲▲

Mandom Report 2022

9

▲

▲

Switched from direct sales to distributors
Mr. Ikuo Nishimura appointed president
Commenced Mandom Corporationʼs 1st 5-year Middle-Range
Planning (MP Project)
Commenced sale of Pagliacci lineup through beauty salonsthroughout Japan
Launched Pixy womenʼs cosmetics in Indonesia
Introduced new CI system Changed company logo
Adopted information card system
Launched Pucelle My Lip, the Companyʼs first product geared to
the womenʼs cosmetics market
Entered the womenʼs cosmetics market via door-to-door sales
Commenced the first over-the-counter sales of Gatsby hairfoam for men
Established External Corporate Auditors
Completed construction of a factory specializing in aerosol
products at the Fukusaki Factory
Commenced 2nd 3-year Middle-Range PlanningLaunched womenʼs cosmetic item Pixy Moisture Lipstick inIndonesia
Started a joint venture in Singapore (now consolidated subsidiary
Mandom Corporation (Singapore) Pte. Ltd.)

4
7

▲

▲

78

▲

1988. 2▲

1987. 4
11▲

1986. 1
9▲

1985. 2
3▲

10
1983. 4
1984. 4
7▲

9▲

1980. 4
8
1982. 4

1993. 2▲▲

1980 -

7
1991. 4
1992. 2▲▲

Received a commendation from the Minister of International
Trade and Industry (now Minister of Economy, Trade andIndustry) for its economic contributions as an export company(also received this commendation again in 1971 and 1972)
Launched the Mandom Series of menʼs cosmetics
Held a product rollout, launching 10 products in 9 categories
Became the first company in Japan to feature a Hollywood star(Charles Bronson) as a character
Company name changed to Mandom Corporation
Established Japan Doctor Renaud Cosmetics Company(now consolidated subsidiary Piacelabo Corporation)
Construction of Fukusaki Factory completed; commenced
operations
Switched from distributors to direct sales
Launched the new Gatsby and Spalding product lines, the firsttime in Japanʼs cosmetics industry that two major lines wereintroduced simultaneously

1990. 4▲▲1978. 5
7▲

1976. 3▲1971. 41972.10▲

7▲

1970. 6Overall Management
Research, Product Development, and Marketing1990 ▲▲

1970 -

12▲▲

1959. 4
1961. 5
1966.111969.11▲▲

1958. 4▲▲

1933. 4

Established Kintsuru Perfume Corporation
Shinpachiro Nishimura appointed president of Kintsuru Perfume
Corporation
Launched Tancho Tique,a hit product which laid the foundation for future success
Formed a technical tie-up with a local company in Manila, thePhilippines, and began operations; this marked the first step inoverseas expansion
Company name changed to Tancho Corporation
Hikoji Nishimura appointed president of Tancho Corporation
Chairman Shinpachiro Nishimura passed away on November 3
Started a joint venture P.T. Tancho Indonesia in Jakarta, Indonesia(now consolidated subsidiary PT Mandom Indonesia Tbk)▲

1927.12
1932.11▲1988.11▲

1927 - 1969▲

Mandom Group Detailed History

Mr. Ikuo Nishimura, Director and Senior Advisor of Mandom
Corporation, passed away on May 23
Mandom Corporationʼs share trading unit lowered from 1,000
shares to 100 shares
Fukusaki Factory and Logistics Center certified to ISO14001, theinternational standard for environmental management systems
Commenced operations at PT Mandom Indonesia Tbkʼs
Cibitung Factory
Launched Gatsby Hair Color series, developing a market formenʼs hair color products

▲

▲

5

▲

▲

▲

▲

▲

▲

2019. 1▲▲▲2020 -

▲
▲

▲

▲

▲

11

▲

Launched revolutionary disinfectant brand “MA-T Pure” andrealized full-scale introduction into disinfectant market
Mr. Ken Nishimura appointed as President Executive Officer &Director
Mr. Motonobu Nishimura appointed as Representative Director& Chairman
Commenced 13th Middle-Range Planning
Established “Skin Science Joint Research Program” at Kitasato
University, School of Pharmacy
Renewed VI (visual identity) and introduced corporate slogan of“BE ANYTHING, BE EVERYTHING.”
Completed a new factory building at Fukusaki Factory
Implemented recall of five products containing lysozymehydrochloride due to health damage including anaphylactic
symptoms

Performance for the Fiscal Year Ended March 31, 2022

▲

▲

▲

▲

▲

2021. 4▲▲2020. 9▲▲Middle-Range Planning

▲

▲

7
11

Materiality

▲

▲
▲
▲

Company Information

Commenced full-scale renewal of Lúcido as an aging care brandCommenced 10th 3-year Middle-Range PlanningLaunched the Gatsby global website and Facebook page on theInternet
Launched Bifesta, a cosmetics brand for women
Established Mandom Corporation (India) Pvt. Ltd. (consolidated
subsidiary) in India▲▲

2012. 3892010 2011. 2
4
8

6

▲

▲

7

▲

▲

4

10
2018. 5

Value Creation Story▲

2009. 3▲▲12
2008. 45

2017. 4

▲

▲

2

▲

▲

11
2007. 1▲▲

2006. 82016.10

Released Gatsby brand Hair Jam as a new styling offering
following on the heels of wax
Launched the Lúcido Deodorant series aimed at combating
body odors that develop during middle age
Extended Fukusaki Factoryʼs production building
Commenced 11th 3-year Middle-Range Planning
Established Mandom Vietnam Co., Ltd. (consolidated
subsidiary) in Vietnam
Relocated head office and factory of PT Mandom Indonesia Tbk
from Jakarta to Bekasi
Established the Laboratory of Advanced Cosmetic Science at
Osaka University
Fire accident at a PT Mandom Indonesia Tbk plant, resulting inloss of life
At the Laboratory of Advanced Cosmetic Science, discovered
human sweat gland stem cells and succeeded in regenerating asweat gland-like structure in vitro
Revised the Mission, and formulated VISION2027 which
outlines where the Company aspires to be in 2027, the 100th
anniversary
Commenced 12th Middle-Range Planning
Introduced a work-from-home system as one part of its
workstyle reform initiative
Executed stock split (split each common stock into two)
Concentrated Groupʼs marketing functions to the Tokyo officelocated in Aoyama
Introduced restricted stock compensation plan
Eliminated roles of senior advisor, honorary advisor, and advisor
to further increase effectiveness and transparency
Established Mandom Will corp., (non-consolidated subsidiary) to
expand utilization and hiring of diverse human resources
Acquired all shares of ACG International Sdn. Bhd. (making it asubsidiary), which is primarily engaged in young womenʼsmakeup brand operations in Malaysia
Opened flagship store on Tmall Global, borderless e-commerce
websiteLaunched online shop “HIBInoBI”
Acquired 1,903,500 shares of treasury stock

About Mandom

▲

11

7

▲

▲

2005. 4
6

6

▲

▲

10

▲

▲

3

3
4
2015. 1▲▲

2004. 2

2014. 2▲▲

10

2013. 8▲▲4
5
2003. 1
3

Adopted Executive Officer system
Repurchased 2.33 million shares of Mandom common stock on
the open market
Listed on the Second Section of the Tokyo Stock Exchange
Completed construction of the Mandom Groupʼs Tokyo
Nihonbashi Building
Gatsby Hair Color commercial voted best overall in a survey
carried out by CM Databank in the Tokyo metropolitan area
Commenced 7th 3-year Middle-Range Planning
Started marketing Gatsby and Lúcido-L simultaneously in Asia
Honorary Advisor Hikoji Nishimura passed away on January 25
Designated for listing on the First Section of the Tokyo Stock
Exchange
Issued 1.65 million shares, increasing capital throughpublic offering
Achieved “zero emission” status at the Fukusaki Factory
PT Mandom Indonesia Tbk won the Economic Value Added (EVA)
Award in Indonesia (also received awards in 2004, 2005, and 2006)
Recalled Gatsby Ex Hi-Bleach, a Mandom product, due to a burninjury accident (the first product recall in the Companyʼs history)
Acquired Occupational Health and Safety Management System(OHSAS 18001) certification at the Fukusaki Factory, Logistics
Center, and Production Engineering Division
Outsourced third-party logistics (3PL) operations to Nippon
Express Co., Ltd.
Commenced 8th 3-year Middle-Range Planning
Terminated retirement benefits for directors and corporate
auditors
Developed a preservative-free product incorporating “alkanediol”
Launched Perfect Assist 24, Mandomʼs first proprietary
cosmetic product for women
Launched Gatsby Moving Rubber and featured Takuya Kimuraas the new model for Gatsby
Acquired 330,000 shares of treasury stock
R&D building completed on Mandom headquarters site
Revised work rules in response to the introduction of the citizen
judge system scheduled to start from 2009
Received a 12th (FY2006) Best Disclosure Award from theTokyo Stock Exchange
PT Mandom Indonesia Tbk achieved annual sales of 1 trillion rupiah
Commenced 9th 3-year Middle-Range Planning
Established Mandom China Corporation (consolidated
subsidiary) in China
Reorganized sales offices in the Tokyo metropolitan area (soldthe Mandom Tokyo Building, Mandom Group Tokyo Nihonbashi
Building, and the Mandom Nihonbashi Bakurocho Building)
Executed absorption mergers of Beaucos Corporation and mbs
Corporation
Acquired 88,800 shares of treasury stock▲▲

2002. 1
3▲

2001. 6
8

Mandom Report 2022

79

Mandom Group Companies(As of March 31, 2022)

Japan
Accounting Method on
Consolidated Financial
Statements

VotingRights

1927

−

−

1972

Consolidated

100.0%−

1997

Non-consolidated

100.0%−

2018

Non-consolidated

90.0%

Main Products

Establishment

Accounting Method on
Consolidated Financial
Statements

VotingRightsManufacture and sale of cosmetics andother products

Cosmetries, makeup
and skin care products

1969

Consolidated

64.7%

Singapore

Sale of cosmetics and other products

Cosmetries, toiletries
and skin care products

1988

Consolidated

100.0%

Mandom Taiwan
Corporation

TaiwanSale of cosmetics and other products

Cosmetries and skincare products

1989

Consolidated

100.0%

Sunwa Marketing
Co., Ltd.

China(Hong Kong)

Sale of cosmetics and other products

Cosmetries, toiletries
and skin care products

1993

Equity-method
affiliate

44.0%

Mandom Korea
Corporation

South Korea

Sale of cosmetics and other products

Cosmetries, toiletries
and skin care products

1999

Consolidated

100.0%

Mandom (Malaysia)
Sdn. Bhd.

Malaysia

Sale of cosmetics and other products

Cosmetries, toiletries
and skin care products

1997

Consolidated

99.5%

Mandom Philippines
Corporation

Philippines

Sale of cosmetics and other products

Cosmetries and skincare products

1992

Consolidated

100.0%

Mandom Corporation(Thailand) Ltd.

Thailand

Sale of cosmetics and other products

Cosmetries, toiletries
and skin care products

1990

Consolidated

100.0%

Mandom Vietnam
Co., Ltd.

Vietnam

Sale of cosmetics and other products

Cosmetries and skincare products

2015

Consolidated

100.0%

Mandom China
Corporation

China(Shanghai)

Sale of cosmetics and other products

Cosmetries and skincare products

2008

Consolidated

100.0%

Zhongshan City
Rida Cosmetics Co., Ltd.

China
(Zhongshan)

Manufacture and sale of cosmetics andother products

Cosmetries and skincare products

1996

Consolidated

66.7%

Mandom Corporation(India) Pvt. Ltd.

India

Sale of cosmetics and other products

Cosmetries and skincare products

2012

Consolidated

100.0%ACG International
Sdn. Bhd.

Malaysia

Others

−2009

Consolidated

100.0%

Company Name

Location

Main Businesses

Main Products

Establishment

Mandom Corporation

Japan

Manufactures and sells products for mass
distribution via distributors, primarily todrug stores and convenience stores

Cosmetries and skincare products

Piacelabo Corporation

Japan

Provides professional-use products andtechnologies to hair salons via distributors

Cosmetics for hairsalonsmbs Corporation

Japan

Insurance agency services, travel services,
general services and quality control ofdomestic Group company products

Mandom Will corp.

Japan

Contractor to Mandom Group

Company Name

Location

Main Businesses

PT MandomIndonesia Tbk

Indonesia

Mandom Corporation(Singapore) Pte. Ltd.

Overseas

Notes: 1. Mandom Corporation (India) Pvt. Ltd. is not currently operating its businesses.
2. Purchase of ACG International Sdn. Bhd. shares (making it a subsidiary) was completed in 2019.
3. ACG International Sdn. Bhd. is a holdings company for two companies selling cosmetics and other products.
4. PT Alliance Cosmetics, which was the Indonesian subsidiary of ACG International Sdn. Bhd., became a subsidiary of PT Mandom Indonesia Tbk from June 2022.
5. Voting Rights percentages are rounded down to one decimal place.

80

Mandom Report 2022

Company Outline / Stock and Shareholder Information(As of March 31, 2022)

Company Profile
Head Office:December 23, 1927
11,394 million yen

Established:
Share Capital:

Fiscal Year-End:

Manufacture and sale of cosmetics and perfumes,
manufacture and sales of quasi-drugs
March 31

General Meeting of
Shareholders:

Ordinary general meeting of shareholders every June

Businesses:

Number of Employees: 2,763 (Consolidated) / 643 (Non-consolidated)

About Mandom

Mandom Corporation
5-12, Juniken-cho, Chuo-ku, Osaka 540-8530, Japan

Company Name:

Independent Auditor: Deloitte Touche Tohmatsu LLC

Stock and Shareholder Information
Number of Shares
Authorized for Issue:

Major shareholders

81,969,700

Number of Shareholders: 44,495

First Section, Tokyo Stock Exchange
4917

Stock Listing:
Securities Code:

The Mitsui Sumitomo Trust andBanking Co., Ltd.

Transfer Agent:

Common Stock Holdings
Securities
Financial Companies Domestic
Institutions
0.07
Corporations
0.05
0.58
Treasury
NonShares
Japanese
0.01
0.76

The Master Trust Bank of Japan, Ltd. (trust account)
Nishimura International Scholarship Foundation
SSBTC CLIENT OMNIBUS ACCOUNT
Custody Bank of Japan, Ltd. (trust account)
Mandom Employee Shareholding Association
Motonobu Nishimura
THE BANK OF NEW YORK 134105

6,518
3,600
1,831
1,594
1,443
1,430
1,419

NORTHERN TRUST CO.
(AVFC) RE TOWERS WATSON COMMON CONTRACTUAL FUND (TTF)

14.49
8.00
4.07
3.54
3.21
3.18
3.16

1,272

2.83

MN Holdings Co., Ltd.

570

1.27

BNP PARIBAS SECURITIES SERVICES LUXEMBOURG/JASDEC/
JANUS HENDERSON HORIZON FUND

537

1.20

Value Creation Story

Shares of Common Stock
Issued and Outstanding: 48,269,212

No. of shares owned Ratio of share(Thousands)
ownership (%)

Shareholder name or title

Shareholders by Type(%)

Materiality

Notes: 1. Figures less than 1,000 shares have been rounded down.
2. Ratios of share ownership are rounded to one decimal place.
3. We hold 3,285,292 shares of treasury stock which are not listed above.
4. Ratios of share ownership are calculated excluding treasury shares.

Stock Price and Transaction Volume
Stock Price (Yen)Treasury
Shares6.81

Financial
Institutions
18.67

4,500

3,500

Middle-Range Planning

Individuals,
other
98.53

2,500

1,500

Individuals,
other
31.17

Domestic
Corporations
15.42

Transaction Volume (Shares)

7,000,000

3,500,000

0FY2017FY2018FY2019FY2020

FY2021

Apr. 1, 2017 – Mar. 31, 2018

Apr. 1, 2018 – Mar. 31, 2019

Apr. 1, 2019 – Mar. 31, 2020

Apr. 1, 2020 – Mar. 31, 2021

Apr. 1, 2021 – Mar. 31, 2022

Performance for the Fiscal Year Ended March 31, 2022

Shareholders by Holding(%)

Securities
Companies
3.26

Note: We executed a 2-for-1 stock split of common stock on October 1, 2017. The figures in the abovegraph are all figures taking into consideration the impact of stock split.

NonJapanese
24.66

Introduction to Our IR(-related) Site

IR Information

CSR Information▲

IR Information

Company Information

The Company is working to use its website
for IR activities, in the aim of providing
information fairly and in a timely manner toshareholders and investors.

https://www.mandom.co.jp/en/ir/▲

CSR Information

https://www.mandom.co.jp/en/csr/

Contact: Investor Relations Division

5-12, Juniken-cho, Chuo-ku, Osaka 540-8530, Japan Telephone: +81-6-6767-5020 Fax: +81-6-6767-5044 URL: https://www.mandom.co.jp/en/

Mandom Report 2022

81