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Message from the President

Let me begin my message by expressing my deepest gratitude to all stakeholders who have been steadfast in their support for Mandom Corporation. As of April 2024, our group has launched the 14th Middle-Range Planning (MP-14). The preceding plan, MP-13, was significantly impacted by unprecedented global challenges such as the COVID-19 pandemic and the Ukraine crisis. These disruptions led to a decline in the profitability of our Japan business and a slump in our Indonesia business, which has traditionally been one of our strengths, making the past three years exceedingly difficult.

However, we embraced numerous challenges and initiated various changes within the organization to prepare for the future. To engage with new generations who hold different values and to expand Mandom's reach, we prepared to explore untapped categories and new distribution channels. Towards the end of MP-13, we launched new brands such as "aono," "HOLIDEA," and "ium," marking the beginning of our journey into MP-14. We regard MP-14 as a phase to build a foundation for growth that will carry us into the next 100 years, starting with MP-15, and will approach it with determination.

One of our concrete initiatives is adopting the CxO system to enhance our group management structure. The CxOs are tasked with addressing the highest-priority challenges to optimize group-wide operations and maximize corporate value. By leveraging our collective resources, we aim to achieve consolidated sales growth through this efficient framework.

Additionally, we have launched a comprehensive profitability improvement project, beginning with Japan at the end of the previous fiscal year. This initiative involves a thorough review of our value chain across the organization. From revisiting product pricing and procurement sources to evaluating product profitability and internal meeting structures, we are tackling every aspect of our operations with zero-based thinking, uniting employees in this effort. The savings generated through these measures will be reinvested in initiatives that enhance corporate value and be returned to our shareholders.

Regarding the Tokyo Stock Exchange's request to address " Action to Implement Management that is Conscious of Cost of Capital and Stock Price " we recognize that the primary factor behind our Price-to-Book Ratio (PBR) falling below 1.0 is the decline in profitability caused by reduced sales during the COVID-19 pandemic. To address this, we have identified two key pillars of action under MP-14: executing strategic investments based on our financial strategy and capital allocation, and implementing the aforementioned profitability improvements. We believe it is vital to demonstrate the results of these efforts to our shareholders.

In the first fiscal year of MP-14, ending March 2025, we anticipate incurring expenses related to these profitability improvement initiatives. As a result, we project that our profits will not meet shareholder expectations during this period. However, by thoroughly implementing structural reforms for profitability enhancement, we are confident in achieving the robust sales and profit guidance disclosed for the subsequent years. Through MP-14, we are resolute in our belief that we can restore and expand corporate value.

Finally, I would like to thank you all for your continued understanding and support.

November 2024
Ken Nishimura
Representative Director and President Executive Officer