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 theimpact of COVID-19. Although there were signs of economic recoveryin Japan and overseas due to progress with vaccinations, there isgrowing 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 “Reformationand 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 (operatingloss 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 fiscalyear).

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
liabilitiesCurrent
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 nameFY2021 (Millions of yen)

YoY change (%)

1,331-82.1

Indonesia

466

82.6

Other overseas

171-38.2

1,970-75.3

JapanTotal2) 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, 20221) 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 share809

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 202267