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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 202215