Business Results
Briefing(Fiscal Year Ending March 31,2024)
April 1, 2023 – March 31, 2024

Mandom Corporation（Securities Code:4917）
mandom corp. All rights reserved. CONFIDENTIAL

Contents
1. Consolidated Business Results of
FYE 2024/MAR
2. Review of FYE 2024/MAR
3. The 14 th Middle-Range Planning
4. Forecast of FYE 2025/MAR◆ Appendix

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11. Consolidated Business Results of
FYE 2024/MAR

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2

Summary of Consolidated Business Results
・Net Sales 73,233 million yen

Net Sales increased 9.2%, up 6,186 million yen
In addition to strong sales of women's cosmetics in Japan and strong
growth in both men's and women's cosmetics in overseas others,
there was positive effect of yen conversion by foreign exchange.

・Profit 2,020 million yen

Operating Income increased 43.3％, up 610 million yen
While profits declined in Japan and Indonesia, overseas others
performed very well. Ordinary income was 2,981 million yen(up773 million yen). Net income attributable to owners of theparent was 2,601 million yen(up 1,642 million yen), by in part to1 billion yen gain on sales of investment securities.

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31. Consolidated Business Results of FYE 2024/MAR＜5-Year Trend in Consolidated Net Sales＞

1) Consolidated net sales increased 9.2%
（million yen）

To apply the "Accounting Standard for
Revenue Recognition" (ASBJ Statement No.
29), etc. in Japan segment, certain items
that were previously expensed are now
deducted from net sales.

100,000+9.2%
increase

81,77480,00073,23363,31067,04760,00457,36160,00040,00020,0000

FYE 2020/MAR

FYE 2021/MARFYE 2022/MAR

Consolidated net sales（Former standard）

mandom corp. All rights reserved. CONFIDENTIALFYE 2023/MAR

FYE 2024/MAR

Consolidated net sales（New standard）

4

1. Consolidated Business Results of FYE 2024/MAR＜Sales by Region＞

2) Sales increased in all regions, especially in overseas

・In Japan, sales of summer season products were driven by the effects ofintense heat. Sales increased by new products etc.

（million yen）

+20.0%

73,233

+3.7％
+6.3％

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51. Consolidated Business Results of FYE 2024/MAR＜4-Year Trend in Net Sales by Region＞
3) Recovery to above pre-COVID19 levels(FYE 2021/MAR) in
all regions
・Strong recovery in Japan and Southeast Asian countries（million yen）
50,000*42,75640,00038,010*35,54135,76932,59530,00017,791

20,00012,102 11,751

14,17814,70820,51317,806

17,09812,360 13,015

10,0000

FYE
2020/MAR

FYE
FYE
2022/MAR FYE 2024/MAR
FYE
2023/MAR2021/MAR

Japan

FYE
2020/MAR

FYE
FYE
2022/MAR FYE 2024/MAR
FYE
2023/MAR2021/MAR

Indonesia

FYE
2020/MAR

FYE
FYE
2022/MAR FYE 2024/MAR
FYE
2023/MAR2021/MAR

Overseas
Others*The results for FYE 2020/Mar and FYE 2021/Mar have been calculated
according to ASBJ Statement No.29 Accounting Standard.
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1. Consolidated Business Results of FYE 2024/MAR＜Net Sales Fluctuation by Segment＞

4) Japan and Overseas others grew strongly, but Indonesia
struggled.
（million yen）

*Figures for Indonesia and other segments are converted to the previous fiscal year’s rates.

mandom corp. All rights reserved. CONFIDENTIAL

77

1. Consolidated Business Results of FYE 2024/MAR＜Net Sales by Strategic Business Unit＞

5) Women's business grew strongly in Japan and overseas.

・”GATSBY” and “LUCIDO” in men's business remained strong.
In women‘s business “Bifesta” and “LUCIDO-L” performed well in Japanand overseas, and “SILKYGIRL” showed significant growth.
（million yen）
80,0008,718
20,07840,00009,364+14.8％

23,059+6.7％

38,24940,809FYE 2023/MAR

FYE 2024/MAR

Men's Businessmandom corp. All rights reserved. CONFIDENTIAL

73,233+7.4％

Women's Business

Others8

1. Consolidated Business Results of FYE 2024/MAR＜5-Year Trend in Consolidated Profit at Stage＞

6) Increase in each stage of income by the effect of higher
revenues and gain on sales of investment securities（million yen）
8,000

Ordinary Income

4,000

2,981

Net Income attributableto owners of parent

2,601

Operating Income

2,020

0

-4,000FYE 2020/MAR

FYE 2021/MAR

Operating Income

mandom corp. All rights reserved. CONFIDENTIALFYE 2022/MAR

Ordinary Income

FYE 2023/MAR

FYE 2024/MAR

Net Income Attributable to Owners of Parent

91. Consolidated Business Results of FYE 2024/MAR＜Operating Profit by Region＞

7) Decreased profit in Japan and Indonesia were offset
by large increase in profit in Overseas others.
（million yen）

2,020
+50.3％-71.7％-％

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2. Review of FYE 2024/MAR

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2. Review of FYE 2024/MAR ＜Japan＞

Business Results by Brand

Net Sales by Business・In men's business, seasonal products performed wellby the effect of intense heat. Sales increased by theeffect of new brands and products.

Japan

・In women's business, grew substantially by recovery in
make-up opportunities and expansion of items.
Status of our major brands
Men’s Businessmandom corp. All rights reserved. CONFIDENTIAL

Women’s Business122. Review of FYE 2024/MAR ＜Japan＞
Net Sales by Business・As in the previous fiscal year, implementation of earlyin-store merchandising of summer season products.
The number of stores steadily expanded,
partly by the effect of strengthening initiatives
for store-exclusive products.

Japan・In products, launched “GATSBY EX PremiumType Deodorant Series”, based on our
cutting-edge sweatline research.

■GATSBY EX Premium Type Deodorant Series

・Appointed Mr. Joe Odagiri as brand ambassador and launched newcommunication.
・Strengthening product proposals and promotions
for skincare and mid-oily odor care for middle men
and both expanded their achievements.
Record-high sales were achieved for LUCIDO brand.

■LUCIDO Skincare Series

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2. Review of FYE 2024/MAR ＜Japan＞

・Cleansing sheet performed well by recovery in
makeup opportunities, etc. In addition, the effects
of lineup expansion, planned product initiatives, etc.
resulted in significant increase in sales compared tothe previous year.
■Bifesta Cleansing Sheet・Renewal of mainstay Argan Oil Treatment series.
Collaboration products were also well received andmarket share recovered.
・The addition of full-scale in-bath item to Acid-Heat
Treatment series expanded the product lineup, andthe whole brand achieved strong performance.
■LUCIDO-L Acid-Heat Treatment Series
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2. Review of FYE 2024/MAR ＜Japan＞
New initiatives of 2024/MAR
D2C strengthen by new brands

Men's skin care brand “aono”

Entry into beauty appliance business

Beauty appliance brand for men “ium”
mandom corp. All rights reserved. CONFIDENTIAL

Women’s skin care brand “HOLIDEA”

Initiatives with retailers

Exclusive men's brand for major retailers“KNOWLEDGE”

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2. Review of FYE 2024/MAR ＜Indonesia＞

Business Results by Brand

Net Sales by Business・Due to impact of selling cost reduction caused byrising cost rate, mainstay GATSBY and PIXY struggled. Indonesia
・Strengthening the lineup in fragrance category for both
men and women.
Status of our major brands
Men’s Businessmandom corp. All rights reserved. CONFIDENTIAL

Women’s Business16

2. Review of FYE 2024/MAR ＜Indonesia＞
Net Sales by Business・Aggressive new product launches in response to the recovery of
consumers' purchasing motivation from the COVID-19 impact.

Indonesia

・In mainstay hair styling category, new formulations of balm andpomade were added to product lineup to match
trends. In fragrance category, new products wereadded to offer products in wide price range.
・Sales plan was not achieved due to insufficientpromotional measures.

■GATSBY Prime Body Perfume

・Aggressively launching new items based on rebranding.
Expansion sale by approaching different target than PUCELLE.
■Lovillea Hijabmood
Continue to strengthen proposals in fragrance category.

■Lovillea HAPPY HYPE
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2. Review of FYE 2024/MAR ＜Overseas others＞
Net Sales by Business

Overseas Others 4-year sales trend※Fluctuations in local currency based on FYE 2020/MAR

・Southeast Asia
+50%

Overseas
OthersMalaysia+0%

ACGI
Thailand-50%

Singapore
Vietnam-100%

Philippines
FYE

FYE

FYE

FYE

FYE

2020/MAR2021/MAR2022/MAR2023/MAR2024/MAR・East Asia
+50%
+0%
China
Taiwan

-50%

Korea
-100%
FYE

FYE

FYE

FYE

FYE

2020/MAR2021/MAR2022/MAR2023/MAR2024/MAR

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2. Review of FYE 2024/MAR ＜Overseas others＞
Net Sales by Business・Sales increased in each country by significant recovery
centered on "GATSBY" and "Bifesta" as result of resumed
promotions and new product launches, which had beensuspended due to recovery in consumption from COVID-19.

Overseas
Others・Strengthening initiatives with Japanese retailers, which areaccelerating store openings in Southeast Asia, will also expand
local operations.
・”GATSBY SEA SALT Series," launched as exclusive
overseas product based on global hair trends,
sold well in all countries where it was deployed.
■GASTBY SEA SALT Series

・SILKYGIRL" sales grew significantly by successful promotions
against the backdrop of Malaysia's favorable economic
situation. We will strengthen overseas expansion in the future.
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3. The 14 th Middle-Range Planning（April, 2024 - March, 2028）

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3. The 14 th Middle-Range Planning
Mandom Group MISSION

Mandom is a “human-oriented” company. Guided by our original concepts
of Health, Cleanliness & Beauty, we reach boldly beyond the norm tobring wonder and inspiration to people’s everyday lives.

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3. The 14 th Middle-Range Planning
Mandom Group Corporate Slogan
Meaning：consumers can live true totheir identity

We support each consumers in being true to themselves.

From “What do you thinkclub hair?” activity.
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3. The 14 th Middle-Range Planning
Mandom Group First Long-term Vision "VISION2027”

Our Vision of 100th Anniversary

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3. The 14 th Middle-Range Planning
Mandom Group Material Issues (Materiality) in Sustainability
Future challenges to be addressed by taking advantage of our strength andcreating values.
Materiality

Theme of initiative

Creating an easy-to-start Strengthening ourgrooming culture
Dedication to Service(“Oyakudachi”) for
consumers who actively
express their individuality

Evaluation metrics
Number of proposals on a newcosmetic field that “enables
consumers to freely express theirown individuality” or on consumer
attributes

Medium to long-term targets
Numerical target
Target year
Three proposals or more per year

Number of proposals on new
A cumulative total of 35 proposals or
technology that contributes tomore from 2021 to 2027
solution of issues faced by consumers

Each year

2027

Developing human
Rate of practice of the Mandom
resources to create a new Principles
grooming culture

80％ or more

2027

Expanding Dedication toService to a diversity of
consumers

Expanding our Dedication Number of challenges addressed to
to Service
expand our distribution network

13 challenges or more per year

Each year

Realizing mutual growthof employees and thecompany

Creating a culture that
Ratio of “active engagement
encourages employees to employees” in a philosophy survey
take on new challenges
Employee engagement

38％ or more

2027

81％ or more per year

Each year

Active engagement by
diverse human resources

20% or more (Mandom Corp. (nonconsolidated))2027

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Ratio of women in managerial posts24

3. The 14 th Middle-Range Planning
Mandom Group Material Issues (Materiality) in Sustainability
Issues to be addressed to realize sustainable society and company
Materiality
Actions for sustainableglobal environment

Theme of initiative
Promoting measures
toward a carbon-freesociety

Eco-friendliness in
products
Waste reduction

Sustainable procurement Palm oilof raw materials

Paper container andpackaging materials
Maintaining/enhancing
the corporate base

Providing safety, security
and high quality
Safety and security of
employees
Enhancing data security
Pursuing the mission

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Evaluation metrics
CO2 emissions reduction (comparedto FY2013) in Scope 1+2
Achievement of zero CO2 emissions
Group-wide

Medium to long-term targets
Numerical target
Target year
CO2 emissions reduction in Scope 1+2
in Japan and overseas: 43% or morecompared to FY2013
Completed preparation of scenarios forachievement of zero CO2 emissions
Group-wide by 2050
25％ or more

Fossil resource-based virgin plastics
emissions reduction ratio
Mandom Group standards-based eco- Eco-friendly products account for 90%
friendly products ratioof the Mandom products sold in Japan.
Reduction rate of the use, weight,
65％ or moreand dimensions of product andpromotional item containers andpackaging (compared to FY2022)
Ratio of RSPO-certified palm oil
Switching 100% of palm-derived raw
among palm oil that is used as anmaterials used at the Fukusaki Factory
origin of raw materials
to RSPO-certified palm oil (including
book-and-claim compliance)
Usage rate of FSC-certified paper for Switching completely to the use of FSCpaper and containers and packaging, certified paper/recovered paper forand recovered paper usage ratio
paper containers and packaging
Number of complaints about quality Serious complaints
Number of employees on long-term
leaveCompliance with Cybersecurity
Management Guidelines
Company-wide rate of Mission-based
employee decision-making

2027

2027

2027
2027
2027

2026

2027

Each year

Less than 10 persons (in Japan)

Each year

Implementation of all ten important
items
80％ or more

2027
2027

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3. The 14 th Middle-Range Planning
The 13 th Middle-range Planning”MP-13” Summary of Basic（million yen）
Management Objectives*Reference
FYE2021/MAR FYE2022/MAR FYE2023/MAR FYE2024/MAR

Original target
FYE2024/MAR

Consolidated Net Sales

63,31057,361

67,04773,233Operating Income Ratio

-1.3%

-4.0%

2.1%

2.8%

8.0% over

Consolidated Operating Income-793-2,308

1,409

2,020

6,520

Consolidated ROIC

-0.3

-1.7

2.1

2.9

7.0% over

166.9%

ー

178.3%

69.2%

40.0% over

32

36

38

40

(Reference)Dividend Payout Ratio(Reference)Dividend Per Share (yen)Actual

81,500ー
MP-13 Target

Consolidated Sales Growth Rate

5.0%

10.7% overMen's Business Growth Rate

2.5%

6.0% over

Women's Business Growth Rate

7.1%

16.0% overOverseas Business Growth Rate

12.9%

17.0% over

Promoting Environmentally Conscious Products
Japan

Product Environmental Consideration
Standards(voluntary standards cleared)
Reduce use of plastic containers andIndonesia
packaging by 10%(vs FY2016)
Reduce plastic waste by 10%(vs FY2016)

mandom corp. All rights reserved. CONFIDENTIAL

ー

46%

54%

61%

60%

ー

-39%

-39%

-45%

-10%

ー

-43%

-57%

-31%

-10%

26

3. The 14 th Middle-Range Planning
The 13 th Middle-range Planning”MP-13” Summary of BasicManagement Objectives

We have launched several new initiatives in period of change and challenge, but the impact onoverall performance is still minor, and we are in the middle of our transformation and evolution.
Basic policy 1

Evolution and challenge of category strategies in new normal
and company-wide marketing innovations that can thoroughly
improve brand value△

Speedy completion of Indonesia business revitalization andbusiness model innovation in overseas business△① Early establishment of company-wide structure that will lead to accelerated growthin overseas and women's categories② Enhance the value of the global brands "GATSBY" and "Bifesta" throughout Asia
③ Qualitative improvement and expansion of area of Oyakudachi in with/after COVID19

Basic policy 2① Early establishment and execution of system to resolve issues in Indonesia business② Accelerate growth and improve management efficiency by strengthening collaboration
between overseas countries and marketing domain

Basic policy 3Transformation into new value-creating company throughdigitalization and open innovation△① Success creation of DX (Digital transformation) that leads to wellness② Creation and expansion of new fashionable culture incorporating knowledge from outside company

Basic policy 4

Improvement of corporate value and evolution of Oyakudachi
with sustainable management at the core△

① Promote business development that contributes to solving social issues (ESG/SDGs)② Evolution of only one kind value creation capability and enhancement of corporate branding capability
mandom corp. All rights reserved. CONFIDENTIAL

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3. The 14 th Middle-Range Planning
Business Issues in the 13 th Middle-range Planning（MP-13）
Men’s business CAGR 2.5％

Women’s business CAGR 7.1％

●GATSBY CAGR 2.9％

●PIXY

Decline in brand activity in the market.

Overseas expanded, but Japan and Indonesia stagnated.

●Bifesta

Expansion through item expansion.

●LUCIDO Growth in skincare but sluggish in others.

●LUCIDO-L

Strong performance in Japan but slow

(Target 6％ or more)(Target 16％ or more)

to expand overseas.

●Styling Decrease in market share(Japan, Indonesia).
●Summer Seasonal Products
Profitability deteriorated due to high cost of sales ratio andincrease in sales composition (Japan).

Japan CAGR ▲0.7％●SILKY GIRL

Steady expansion through flexible
supply system and marketing initiatives.

Overseas CAGR 12.9％(Target 17％ or more)●Men’s Styling Sluggish due to declining birthrate,●Profitability deteriorated due to slow sales recovery anddeclining opportunities for use, and declining market share high cost of sales ratio caused by inflation (Indonesia).
resulting from the offensive activities of emerging brands.
●Decrease in market share due to reduced market●Summer Seasonal Products Despite market expansion, presence resulting from significant curtailment of sales
profitability declined due to intensified price competition.
expenses due to sluggish consumption and deteriorating
business performance (Indonesia).
●Skincare Both men and women expanded but didn’t
reach plan.

●Lack of reach to generation Z and above middle class.

mandom corp. All rights reserved. CONFIDENTIAL●Uncertain social conditions, including zero-COVID-19
policy impact and subsequent economic downturn (China).
●Failed to expand overseas areas due to COVID-19.

28

3. The 14 th Middle-Range Planning
Environment and issue recognition in MP-14
External environment

Internal problem

The situation in Ukraine
Middle East
Digital and smartphone
Climate change andsocietyextreme weather
EC channel expansion
Raw materials & energy
price hikes
Logistics issues

New market creation

Life transformation
by COVID-19

Aging population combinedwith the diminishing number of children
Genderless

Cheap yen

Diversity &Inclusion

Rise of emerging companies

Responding toclimate change

Diversity & Inclusion
Development of environmentallyfriendly products and services
Supply Chain Management

Waste reduction

Corporate philosophy(Purpose of governance)

Improved work-life balance

Data security

Improving quality of life
by responding to the diversification of
consumers' needs and wants

Human Resource
Development

Voices from Outside the Company

What is your response to P/B ratio below 1x?
Unclear on specific issues and solutions
for Indonesia business
What are the high cost ratio factors in Indonesia?
Is the Japanese male business strengthening
existing brands or fostering new brands?
Will you continue to strengthen the growth of
the women's business in the next mid-term plan?
What is the sustainability of strong overseas others growth?
Which areas are expected to grow the most?
When will return to the 10% operating income level?

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3. The 14 th Middle-Range Planning
Redefinition of MP-14 positioning“Period of Accelerated Growth" revised,in the “Period of building a foundation for future growth"
toward sustainable growth over the next 100 years

Aiming for record-high sales and operating income in the final year
Explore future growth drivers outside of existing brands
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3. The 14 th Middle-Range Planning
MP-14 Basic Management Target
Average
growth rate

FYE 2024/MAR

FYE 2028/MAR

73,233 million yen

100,000

million yen+8.1%

Consolidated Operating Income

2,020 million yen

9,000

million yen+45.3%

Operating Income Ratio

2.8%

9.0%

or more

ー

ROIC

2.9%

8.0%

or moreーDividend Payout Ratio

69.2%

40%

or moreーConsolidated Net SalesFYE 2024/MAR

FYE 2028/MAR

Average
growth rate

Japan Business Sales

38,010 million yen+6% or moreIndonesia Business Sales

14,708 million yen+7% or more

Overseas Others Business Sales

20,513 million yen+10% or moremandom corp. All rights reserved. CONFIDENTIAL

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3. The 14 th Middle-Range Planning
MP-14 Approach to Formulation of Basic Management Policies
Material issues to maximize economic value and social value
Resolving Materiality.
MP-14 Key Issues(Issues that should bereflected in business strategy)

mandom corp. All rights reserved. CONFIDENTIAL

Materiality(Material sustainability issues)

MP-14 Middle-Range Basic Management
Policy(Business x Function x Management Base)32

3. The 14 th Middle-Range Planning
MP-14 Positioning
Toward Sustainable Growth for the Next 100 Years

Period of building a foundation for future growth
Basic Management Policies

１

Implement structural reforms according to
the growth stage of each business

Function２

Conduct Dedication to Service (Oyakudachi) through value
co-creation based on Consumer-led Lifestyle Value Creation

Management
Infrastructure３

Continuously strengthen management infrastructure
to implement group management

Businessmandom corp. All rights reserved. CONFIDENTIAL

33

3. The 14 th Middle-Range Planning
MP-14 Basic Management Policy 1
Implement structural reforms according to
the growth stage of each businessBusiness■Challenge to improve profitability and acquire new growthengines in our Japan and Indonesia businesses■Achieve quantitative growth centered on the ASEAN area
in International businesses■Expand and deepen customer touchpoints by establishingan EC system within the Group■Promote business activities that take into consideration
responses to social and environmental issues

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3. The 14 th Middle-Range Planning
MP-14 Basic Management Policy 2
Function

Conduct Dedication to Service (Oyakudachi) through value
co-creation based on Consumer-led Lifestyle Value Creation■Create and expand markets by providing products andservices that resonate with consumers■Search for new businesses that will lead to the realizationof well-being for consumers■Build a system for using customer data to create newvalue through digital transformation (DX)mandom corp. All rights reserved. CONFIDENTIAL

35

3. The 14 th Middle-Range Planning
MP-14 Basic Management Policy 3Management
InfrastructureContinuously strengthen management infrastructure
to implement group management■Improve organizational capabilities by maximizing humancapital■Maximize management efficiency and further strengthen
governance by improving the group management structure■Implement corporate branding aimed at establishinga global corporate brand image

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3. The 14 th Middle-Range Planning
MP-14 Four Key Theme

Accelerate group management by changing
the management promotion structure
Profitability improvement
Restructuring in Indonesia Business
Investments to acquire new business areas

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37

3. The 14 th Middle-Range Planning
Key Theme 1 Accelerate group management by changing themanagement promotion
Global Head Quarter
CEOJapan Business
COO
MCJ

Marketing

CMO

Technical Research

CTO

Supply Chain

CSCO

Human Resouce

CHRO

Finance

CFO

Management
Strategy

CSO

Indonesia Business

International Business

COO

COO

MID

Overseas Company

President of MCJ (Business
COO serves concurrently)

President of MID (Business
COO serves concurrently)

President of each company

Sales／CSLO

Sales

Sales

Othersmandom corp. All rights reserved. CONFIDENTIAL

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3. The 14 th Middle-Range Planning
Key Theme 1 Accelerate group management by changing themanagement promotion
Maximize corporate value through optimal allocation and maximum
utilization of management resources within the group

・ Expand business value by strengthening human resource (people) andfinancial resource (money)
・ Balancing economic value and social value provision as outcome
Optimal group allocation of management resources

Business

Human
Resource(People)Financial(Money)Japan

Co-Creation
Indonesia

International

Mandom Group Corporate Value
mandom corp. All rights reserved. CONFIDENTIAL

OutcomeEconomic
value

Socialvalue

39

3. The 14 th Middle-Range Planning
Key Theme 2

Profitability improvement

Working to improve profitability through fundamental review of the value
chain, with focus on reducing the cost of sales ratio.
Launching special project headed by the president, starting with Japan.

Effort to Reduce Cost Ratio
・Global procurement of raw materials
・Switching to alternative possible raw materials
・Set and revise selling price at level that is appropriate
for profitability
・Narrowing down unprofitable products

etc.

Profit improvement including cost ratio reduction
7 billion yen or more (total for 4 years)→ Allocation to investment in growth and shareholder
returns
40

mandom corp. All rights reserved. CONFIDENTIAL

3. The 14 th Middle-Range Planning
Key Theme 2

Profitability improvement

Japan Segment 4-Year Performance Trend Image
Start structural reform to improve profitability from the end of fiscal year
ending 2024/MAR.
Plan to concentrate efforts in fiscal year ending 2025/MAR, and achievesignificant improvement in cost ratio from fiscal year ending 2026/MAR.
70,000MP-1460,00050,00040,00030,00020,00010,0000

FYE2024/MAR

FYE2025/MAR

Net Sales
mandom corp. All rights reserved. CONFIDENTIAL

FYE2026/MAR

Operating Income×10

FYE2027/MAR
Cost of Sales Ratio

FYE2028/MAR
Restructuring

41

3. The 14 th Middle-Range Planning
Key Theme 3

Restructuring in Indonesia Business【Present】 Significant reduction in marketing expenses due to thenormalization of high cost ratios sluggish sales

Decrease in production volume

・Rising depreciation costs due to large investments in new plants
Deterioration in・Increase in fixed costs due to inflation, including local wage increases
cost ratio
・Decrease in sales volume due to COVID19

Significant
reduction inselling expense

・Brand image obsolescence, new product recognition not yet achieved
・Decrease in storefront presence・Decline in brand presence and competitive offensive
Decrease in sales ・Failure of price hike policy
・Delay in responding to consumer wants, lack of proposals

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3. The 14 th Middle-Range Planning
Key Theme 3

Restructuring in Indonesia Business

Build positive cycle that starts with increasing gross profit margin
and allow the cash generated to be invested in consumers.
Procurement andProduction

Expansion of production volume

・ Review of suppliers in Japan and jointly with Japan, reductionof raw material costs
・Replacement of raw materials without affecting product
Reduce cost ratio quality
Securing gross profit ・Curbing factory manufacturing costs
・Review of optimal personnel allocation on factory lines etc.

Restructuring

Investing in growth, with a focus on marketing, for the costs generated.

Marketing

Products・Brands
・Recovery of activity forexisting brands
・Consideration of new
brandsImportant point
・Actively propose new products that match consumer wants
・Resumption of A&P drops to restore brand activity
・Acquire new younger users, mainly generation Z users
・New brand initiatives with M&A in mind etc.

Distribution・Promotion
・Product offerings with high affinity for Traditional Trade(TT).
・Strengthening
・Active introduction of new products into modern trade(MT).
measures by TT/MT・Strengthen product distribution and in-store promotions etc.
distribution
・Strengthen of in-store
measuresmandom corp. All rights reserved. CONFIDENTIAL

Renew
al of
manag
ement
structure43

3. The 14 th Middle-Range Planning
Key Theme 3

Restructuring in Indonesia BusinessIndonesia Segment 4-Year Performance Trend Image
Growth investments (listing fee, etc.)
Restructuring (reduction in manufacturing labor costs, etc)

mandom corp. All rights reserved. CONFIDENTIAL

44

3. 第14次中期経営計画（MP-14）
Key Theme 4

Investments to acquire new business areas

Implement upfront investments that will lead to new corporate value
growth for the future beyond MP-15.

New Brands
New Series

Businesses otherthan cosmetics

New Customers
Develop segments ofconsumers that we have notyet been able to serve

New Regions/Areas
New distributions
Include M&A
mandom corp. All rights reserved. CONFIDENTIAL

45

3. The 14 th Middle-Range Planning
MP-14 Basic Management Target

Sales and operating income growth image

In first year, FYE2025/MAR, company expects to incur restructuring costs inJapan and Indonesia, resulting in decrease of profit.
In second year, from fiscal year FYE2026/MAR, restructuring will contribute to
rapid recovery in profitability.

Restructuring
mandom corp. All rights reserved. CONFIDENTIAL

46

3. The 14 th Middle-Range Planning
MP-14 Basic Management Target

Sales and operating income growth image

In first year, FYE2025/MAR, company expects to incur restructuring costs inJapan and Indonesia, resulting in decrease of profit.
In second year, from fiscal year FYE2026/MAR, restructuring will contribute to
rapid recovery in profitability.

Final fiscal year

Consolidated Net Sales
100 billion yen or more
Consolidated Operating Income
9 billion yen or more
*Both record highs

mandom corp. All rights reserved. CONFIDENTIAL

47

3. The 14 th Middle-Range Planning
Key Theme 2

Profitability improvement

MP-14 Growth and Profitability Image by Segment
15.0
Operating
IncomeRatio

Japan Overseas

10.0

Others5.0

Indonesia
-5.0

0.0

0.0

-5.0

5.0

10.0

15.0

20.0
Sales Growth Rate
(CAGR)-10.0

mandom corp. All rights reserved. CONFIDENTIAL

48

3. The 14 th Middle-Range Planning
External Requests for Financial Policy
Requests from investors for new middle-range management plan

● While the level of cash on hand remains high, there has not been much active
investment in growth other than the expansion of production facilities.
We would like to know your financial policy and capital efficiency policy along withyour growth strategy.

● I believe that free cash flow is stable and profitable business, but I would like to
see clear indication of the specific uses of that cash and how it is allocated.
● What is your approach to dividend? What is your policy on shareholder return,including share buyback?

Request from Tokyo Stock Exchange- From "Measure to Achieve Management Conscious of Cost of Capital and Stock Price” Analysis
Planning anddisclosure
Actionmandom corp. All rights reserved. CONFIDENTIAL

Accurately understand the company's cost of capital and return on
capital, and analyze and evaluate the current situation with respect
to its content and market valuation by Board of Directors.
Board of Directors review and formulate policy, target, planning
period, and specific initiative for improvement, and disclose the detailof them, together with assessment, in manner that is easy forinvestors to understand.
・Promote management that is aware of cost of capital andstock price based on the plan
・Active dialogue with investors based on disclosure49

3. The 14 th Middle-Range Planning
View on PBR Issue
Our Perception of P/B Ratio 1

mandom corp. All rights reserved. CONFIDENTIAL

ROE

PBR

Change in PBR and ROE are almost identical.
Declining ROE is major cause of the PBR slump.

50

3. The 14 th Middle-Range Planning
View on PBR Issue

Our Perception of P/B Ratio 2
Main reason for the decline in ROE①Cost ratio including COG ratio rose due to the combination of investment
in plant expansion, COVID-19 disaster and high raw material price.

②Lack of investment in growth including new business through efficientuse of cash and associated unfulfilled external expectation
The following 2 points are the pillars of our efforts

Final year of MP-14
Achieve consolidated operating income/9 billion yen
and consolidated ROIC/8%①Improve profitability through fundamental review of the value chain
Shift to global procurement, expand the number of items for which sales prices are revised,the efficiency of operating expenses, etc., to achieve not merely cost reductions but
transformation of the value chain.

②Formulate capital allocation including the use of interest-bearing
debt and make strategic investments
Investment in growth of D2C new brand and men's beauty appliances. Further new business
investment will continue. Allocation of 10 billion yen to search for future business roots,
and active consideration of M&A. Allocation of 20 billion yen.
mandom corp. All rights reserved. CONFIDENTIAL

51

3. The 14 th Middle-Range Planning
MP-14 Financial Strategy
Premise

We calculates its cost of capital using WACC, and recognize thatthe consolidated cost of capital is less than 4%*Figures to be determined with reference to data calculated by external organization in the future

Financial Policy
・Aiming for medium to long-term development, funds are allocatedto shareholder returns and business investment, and borrowings
are also used.
・Financial security is also considered in order to be able to respondto unexpected situations. Cash and deposits equivalent to threemonths of monthly sales are maintained.
・Certain limits on net debt, debt-to-EBITDA ratio, and DE ratio are
set. Policy stock investments will be reduced in accordance withthe existing policy.
【Cash to be utilized】
Operating cash flow 26.5 billion yen *Excluding incremental working capital and net of taxes
Sale of policy investment shares 1.5 billion yen*Sales to be conducted in February and March 2024

mandom corp. All rights reserved. CONFIDENTIAL

52

3. The 14 th Middle-Range Planning
MP-14 Financial Strategy
Capital allocation
1/3 of cash to be earned over the next 4 years will be invested to strengthen
new business areas, and 1/3 will be used to return profit to shareholders.
Proactively consider M&A. Borrowing as necessary.
billion yen

Oprating
Cash Flow(4years)

Investment in
New Areas
Shareholder
ReturnCapitalInvestment

Sale of policystock

IT Investment
Borrowing
utilization
depending onamount of
M&A

mandom corp. All rights reserved. CONFIDENTIAL

M&A
Budget20.0

・Upfront investment in new brands
・Entry into D2C business
1/3 ・Expansion into new areas and upfront
investment
・Stable dividend during MP-14
1/3 ・Dividend payout ratio of 40% or more・Share repurchase decisions are basedon comprehensive consideration

・Categories with low existing sales mix
・New business related to health,cleanliness, and beauty53

3. The 14 th Middle-Range Planning
MP-14 Financial Strategy
Return Policy
During MP-14 period, basic policy is to provide stable and continuous
profit returns, with numerical target of dividend payout ratio of 40%
or more.
MP-14 Image of Dividend Trend(Forecast)mandom corp. All rights reserved. CONFIDENTIAL(Forecast)54

4. Forecast of FYE 2025/MAR

mandom corp. All rights reserved. CONFIDENTIAL

55

4. Forecast of FYE 2025/MAR
Consolidated Earnings Forecast
Consolidated
Net Sales(million yen)2025/MAR

Forecast

Balance2024/MARYr/Yr

Actual

77,000

3,766

+5.1%

73,233Operating Income

780-1,240-61.4%

2,020

Ordinary Income

1,580-1,401-47.0%

2,981

910-1,691-65.0%

2,601

Net Income Attributableto Owners of Parent

Segment

2025/MAR
Forecast

Balance2024/MARYr/Yr

ActualJapan Business Sales

39,500

1,489

+3.9%

38,010Indonesia Business Sales

14,700-8-0.1%

14,708Overseas Others Sales

22,8002,286+11.1%

20,513mandom corp. All rights reserved. CONFIDENTIAL

56

4. Forecast of FYE 2025/MAR
Forecast by major expense item Breakdown of increase/decrease（million yen)

Net Sales
Cost to
Sales Ratio+3,766+0.1pt■Sales＋＋Increase in sales both in Japan and overseas bymarketing investments and new initiatives

Maintain double-digit growth in favorable overseas others area
Strengthening of new proposals and seasonal productinitiatives in Japan＋ Implementation of price increases in Japan and overseas
ー Inventory optimization for distributors and retailers in Indonesia

Selling
Expenses+12.0％ ■COG ratio Slight increase in Japan could not cover the large
increase in Indonesia

SG&A
Expenses

ー Decrease in Japan due to sales increase+7.6％ ＋ Significant increase by strengthened introduction anddevelopment of distribution in Indonesia, restructuring, etc.
＋ Overseas others rise by purchase price change

Operating
Income-1,240Ordinary
Income-1,401Net Income Attributableto Owners of Parent-1,691mandom corp. All rights reserved. CONFIDENTIAL■SG&A expenses

Aggressive investment in marketing for
growth in Japan and overseas
Profit restructuring expenses in Japan＋ Aggressive marketing investment＋ Implementing fundamental structural reforms to improve
profitability in Japan
ー Reduction of general and administrative expenses inIndonesia57

4. Forecast of FYE 2025/MAR
Change in Calculation Method of Segment Income<Before> Until FYE 2024/MAR

・Because the calculation method included adjustments for internal profit
and loss in segment profit and loss, there was large discrepancy between
non-consolidated results and segment results, resulting in lower operating
income in Japan and Indonesia.

＜After＞FYE 2025/MAR onward

・The calculation method of segment profit/loss does not include
adjustments for internal profit and loss.

Segment results are now closer to non-consolidated results,
and the disclosure of business results is closer to the actual
situation.
※Reference FYE 2024/MAR Operating Income by Segment (New Calculation Method)
Japan 589 million yen, Indonesia -25 million yen, Overseas others 1,416 million yen（ Profit amount are estimate and it’s possible to change based on the results of accounting audits. ）mandom corp. All rights reserved. CONFIDENTIAL

58

2024/MAR
Financial Result Briefing
Reference Materials
April 1, 2023 – March 31, 2024

mandom corp. All rights reserved. CONFIDENTIAL

59

Contents

1. Consolidated Business Result of
FYE 2024/MAR
2. Consolidated Net Sales
3. Consolidated Income
4. P/L of Mandom Corporation,
PT Mandom Indonesia Tbk

mandom corp. All rights reserved. CONFIDENTIAL

60

1 . C o n s o l i d a t e d B u s i n e s s Re s u l t o f
FYE 2024/MAR(million yen)
AnnualFYE2023/MAR

FYE2024/MAR

Yr/Yr

BalanceAchiev.
vs Revised Target

Yr/Yr*

67,04773,233

6,186

+9.2%

+6.8%

100.3%

Operating Income

1,409

2,020

610

+43.3%+39.9%

122.4%

Ordinary Income

2,207

2,981

773

+35.1%－

114.7%

958

2,601

1,642

+171.4%－118.2%Net Sales

Net Income Attributable to
Owners of Parent*Comparison with FYE 2023/MAR rate after adjustment.
ROE

1.5%

4.0%

EPS

¥21.31¥57.84

Payout Ratio

178.3%

69.2%

mandom corp. All rights reserved. CONFIDENTIAL

61

2. Consolidated Net Sales
2-1. Net Sales by Region(million yen)
AnnualFYE2023/MAR

FYE2024/MAR

67,04773,233

6,186

+9.2%

Japan

35,76938,010

2,241

+6.3%

Indonesia

14,17814,708529+3.7%

Others

17,09820,513

3,415+20.0%Net Sales

2-2. Net Sales by Region Analysis(million yen)

2,241

Japan

Overseas
Others2-3. Net Sales by Region Ratio
Overseas 46.6%

Overseas 48.1%

6,186
6,186

Consolidated

Indonesia

Yr/Yr

Balance529
3,415

mandom corp. All rights reserved. CONFIDENTIAL

25.5%

28.0%
51.9%

53.3%
21.1%

20.1%

FYE 2023/MAR
Japan

FYE 2024/MAR
Indonesia

Overseas Others62

2. Consolidated Net Sales
2-4. Net Sales by Strategic Business Unit

(Millions of yen)
AnnualFYE2023/MAR

Net Sales

Balance

FYE2024/MAR

Yr/Yr

67,04773,233

6,186

+9.2%

38,24940,809

2,559

+6.7%

29,662

31,341

1,679

+5.7%

Women's Business

20,07823,0592,980+14.8%

Other Business

8,718

9,364

646

+7.4%

Men's Business
GATSBY※Breakdown ：Women’s Cosmetics 13,845 million yen (ratio of increase/decrease 16.1%)
Women’s Cosmetary 9,214 million yen（ratio of increase/decrease 13.0%）

Women’s Business

Men’s Business

Total

GATSBY

GrowthRate

FYE 2024/MAR Growth
Rate
ResultFYE 2024/MAR
ResultGrowthRate

40,809

+6.7%

Total

31,341+5.7%

Bifesta

LUCIDO-L

PIXY

PUCELLELUCIDOJapan
mandom corp. All rights reserved. CONFIDENTIAL

Overseas

FYE 2024/MAR
Result23,059+14.8%

Japan

Overseas632. Consolidated Net Sales
2-5. Year-on-Year Comparison by Region and BusinessJapan

Indonesia

Overseas Others

Total

+6.3%

+3.7%

+20.0%

Men’s Business

+4.2%

+3.6%

+18.2%+11.5%+6.1%+27.0%

Women’s Business※ Breakdown
Women’s Cosmetics +18.6%
Women’s Cosmetary +7.3%※ Others +10.5%

mandom corp. All rights reserved. CONFIDENTIAL※ Breakdown
Women’s Cosmetics -0.2%
Women’s Cosmetary +17.8%※ Others -1.4%※ Breakdown
Women’s Cosmetics +26.6%
Women’s Cosmetary +28.6%※ Others +11.3%64

3. Consolidated Income
3-1. Operating Income by Region(Millions of yen)
AnnualFYE2023/MAR

FYE2024/MAR
BalanceResultOperating Income

per Sales

ResultYr/Yr

per Sales

1,409

2.1%

2,020

2.8%

610

+43.3%

Japan

282

0.8%

79

0.2%

(202)

(71.7%)

Indonesia

(676)

－

(770)

－

(94)

－

Others

1,802

10.5%

2,710

13.2%

907

+50.3%

3-2. Operating Income/Loss by Region
Analysis(million yen）

Consolidated

3-3. Operating Income/Loss by Region
Ratio

610

Japan

-202

Indonesia-94

Overseas
Othersmandom corp. All rights reserved. CONFIDENTIAL

Not stated due to operating loss in Indonesia

907

65

3. Consolidated Income
3-4. Operating Cost changes in the same period
Operating Cost Total

Consolidated

Cost of Goods

Japan

Indonesia

Overseas Others(million yen)
Admin. Cost

Selling Expenses

2,444
5,575

623
2,507

1,307
490

3,340

1,794

1,542

3-5. Operating Cost and Income (Ratio to Sales)
Consolidated

57.2%

56.9%

13.4%

14.7%

27.3%

25.5%

2.8%
2.1%
FYE
FYE
2023/MAR 2024/MAR
mandom corp. All rights reserved. CONFIDENTIAL

Japan

50.4%

50.8%

16.0%

18.5%

32.9%

30.4%

0.8%
0.2%
FYE
FYE
2023/MAR 2024/MAR

1,330
548
-84

440

Cost of Goods

Selling Expense

Admin. Cost

Operating Income

Indonesia

79.2%

217
416
-193

79.7%

3.2%
4.0%
22.3%
21.6%
-4.8%
-5.2%
FYE
FYE
2023/MAR 2024/MAR

Overseas Others

53.3%

52.0%

16.0%

16.0%

20.1%

18.8%

10.5%

13.2%

FYE
FYE
2023/MAR 2024/MAR

66

3. Consolidated Income
3-6. Analysis of Change in Consolidated Operating Income(million yen)mandom corp. All rights reserved. CONFIDENTIAL

67

3. Consolidated Income
3-7. Ordinary Income and Net Income Attributable to Owners of Parent(Millions of yen)

AnnualFYE2023/MAR
ResultNon-operating Income/Expenses
Ordinary Income

per Sales

Income before Income Taxes and Minority Interests
Income Taxes and Minority Interests
Net Income
Net Income Attributable to Non-controlling interests
Net Income Attributable to Owners of Parent

ResultBalanceper Sales

1.2%

961

1.3%

163

20.4%

2,207

3.3%

2,981

4.1%

773

35.1%

891

1.2%

1,509

-

ー

1,589

2.4%

3,872

5.3%

2,283

143.6%

571

0.9%

1,108

1.5%

537

94.0%

1,018

1.5%

2,763

3.8%

1,745

171.5%

59

0.1%

162

0.2%

103

173.0%

958

1.4%

2,601

3.6%

1,642

171.4%

3-8. Non-Operating Income/Expenses and Extraordinary Profit/Loss
Non-Operating
Income/Loss
Dividend income

Non-Operating
IncomeExtraordinary
ProfitShare of profit of entities accounted forusing equity method
Interest expenses

Interest income

Compensation expenses
Other

mandom corp. All rights reserved. CONFIDENTIAL

891
Gain on sales of fixed assets

Other

1,052

Commitment fee(million yen）

Extraordinary
Profit/Loss961

Non-Operating 91
Expenses

Yr/Yr

798
-617

Extraordinary Profit/Loss

FYE2024/MAR

Extraordinary 668
Loss

1,254
Gain on sales of investment securities
Loss on disposal of fixed assets
Impairment loss

68◆ Appendix
Results of FYE 2024/MAR (P/L of Mandom Corporation and PT Mandom Indonesia Tbk)
Mandom Corporation(million yen)

Net sales

FYE2023/ FYE2024/
MARMAR
40,31042,586

2,276

+5.6%

23,773

1,528

+6.9%

55.2%

55.8%

+0.6P

－

17,112

18,218

1,106

+6.5%

952

594

-358

-37.6%

570

1,007

437

+76.6%

1,523

1,602

78

+5.2%

-617

677

1,295

－

561

1,800

1,239

+220.6%

Cost of Goods

22,245

Cost Ratio
Selling, general andadministrative expenses

Operating Income
Non-operating Income/Loss

Ordinary Income
Extraordinary Profit/loss

Consolidated

Yr/Yr

Balance

Net Income

Depreciation,Capital Investment(million yen)
FYE2023/MAR

Depreciation

4,988

Capital investment

1,856

FYE2024/
MAR

4,415

-572

3,929

1,852

-3

2,325

Mandom Corp.Only(million yen)
FYE2023/MAR FYE2024/MAR

Depreciation
Capital investment

FYE2025/MAR
Forecast

Balance

Balance

3,254

2,759

-494

981

730

-250

PT Mandom Indonesia Tbk
Local Currency(Millions of Rp.)

Yen Equivalent(Millions of yen)
FYE2023/MAR

FYE2024/MAR

Net sales

17,994

18,864

869

+4.8%

+0.6%

Cost of Goods

14,373

15,123

749

+5.2%

+0.3P

+0.0%

Cost Ratio

79.9%

80.2%

+0.3P

+0.0%

813

(5,033)(86.1%)

Operating Income

51

7

(43)

-85.5%

38,11620,006+110.5%Net Income

159

350

191

+120.0%FYE2023/MAR

FYE2024/MAR

Net sales

2,044,821

2,050,460

5,638

+0.3%

Cost of Goods

1,633,386

1,643,848

10,462

Cost Ratio

79.9%

80.2%

Operating Income

5,847

Net Income

18,109BalanceYr/Yr

Balance

Yr/Yr

Rp.1=￥0.0088 Rp.1=￥0.0092※Assumption rate Rp.1=￥0.0090

mandom corp. All rights reserved. CONFIDENTIAL

69

Re g a r d i n g Fo r w a r d - L o o k i n g S t a t e m e n t s

Information in this report concerning future performance is based on information
available and certain assumptions deemed reasonable. Forecasts are not promises of
future performance. Actual earnings may differ significantly from forecasts due to anumber of factors. *All amounts have been rounded to the nearest whole unit.

mandom corp. All rights reserved. CONFIDENTIAL

70

mandom corp. All rights reserved. CONFIDENTIAL