Aderans Group Consolidated Results for the First Quarter...

Aderans GroupConsolidated Results for the First Quarterof the Fiscal Year ending February 28, 2017

(March 1, 2016 to May 31, 2016)

This handout contains forward-looking statements that are based on management’s estimates, assumptions and projections at the time of presentation and include risks and uncertainties. A number of factors could cause actual results to differ materially from expectations.

Amounts less than a full unit are omitted, and percentages are rounded to one decimal place. Totals may not reflect the sum of component amounts.

July 15, 2016

2

The Aderans Group Ideal

Management PhilosophyOur corporate mission, as the Aderans Group, is to utilize our hair-related

businesses to help as many people as possible acquire the physical and

emotional qualities that underpin the realization of dreams and promote a good

impression, and in doing so, bring smiles to faces and support happy lives.

“Product excellence” “Technological excellence” “Heartfelt omotenashi”

Management VisionRealizing “good company” standard

Establish management structure which is highly transparent and trusted from

inside and outside the company

Servant Leadership Management Leadership to support clients and employees

Pattern of executive behavior that motivates employees, encourages them to

persevere and allows their talents to blossom

Management

Philosophy

Servant

Leadership

Management

Management

Vision

Sampo yoshi

Management

To offer hair-related products and services that people need and be trusted by clients and society around the world

Establish ECSR

management

ES

CS

CSR

Sampo yoshi —literally, “three-way good”—Management

Employee Satisfaction

Customer Satisfaction

Corporate Social Responsibility

Global Business Portfolio

Japan

United States

Europe

Asia

Fiscal 2017

From change

to marked progress

Fiscal 2018

From marked progress

to stabilization

Fiscal 2019

From stabilization

to sustainable growth

Focusing on solutions to hair-related concerns, offer total beauty and organic haircare products and establish higher profile

in medical services market with hair transplantation and androgenetic alopecia (AGA) treatments

Develop new services using strength of current doctor-facilitated medical business and promote in other countries,

enhance healthy hair-growth services, and improve response to demand from black people for wigs and hair-volumizing products and

services as well as after-sale services.

Boost customer retention for custom-made wigs, accelerate entry into regions where presence has not yet been established,

and attain No.1 share in each market by securing an overwhelming advantage

Pursue business providing solutions to hair-related concerns, accelerate business growth in China,

and set up locations in ASEAN region

Expand shares in global markets and maintain stable profits

3

JapanMature market , heightened competition

Moderate but definite growth

・Capture attention of anyone who uses wigs,

beyond customer base, through after-sale

services

• Expand business domain

AsiaMarket growth/expansion

Shift from introduction to growth

• Establish firm footing for businesses providing

solutions to hair-related concerns

EuropeMarket growth/expansion

Evolution from stability to growth

by leaps and bounds

• Enter regions where presence

not yet established

• Enhance marketing efforts for

custom-made products and

reinforce after-sale services

United StatesMarket growth/expansion

Evolution from stability to growth by leaps and bounds

• HC (USA) to open more locations and reinforce

presence in women’s market

• Bosley to pursue globalization and expand

medical business

• Aderans Hair Goods to widen access routes

Consolidated Results for the First Quarter of Fiscal 2017

(March 1, 2016 to May 31, 2016)

Fiscal 2017: First Quarter Consolidated Summary

(Millions of yen)

First

quarter of

Fiscal 2017

First

quarter of

Fiscal 2016

YOY change Comment

Net sales 19,131 19,708(576)

-2.9％

• Both the Aderans Business and the Fontaine Business delivered lower sales, down

¥179 million year-on-year (2.6%) and ¥128 million (6.0%), respectively.

• The Bosley Business achieved a ¥155 million (5.0%) decrease in sales, also lower sales

on a local-currency basis.

• The Overseas Wig Business showed a ¥61 million (0.9%) decrease in sales. However,

in United States, and Europe, we enjoyed an increase in sales on a local-currency

basis.

SG&A

expenses15,514 15,964

(449)

-2.8％

• Domestic operations posted a ¥39 million year-on-year decrease (4.9%), mainly due to

decrease in advertising and sales promotion expenditures.

• HC’s consolidated goodwill amortization amounted to US$932 thousand (about ¥100

million).

• Depreciation expenses, mainly HC’s tangible/intangible fixed assets, reached

US$5,304 thousand (about ¥610 million).

Operating

loss(402) (339) (62)

• Quarterly operating loss before amortization of goodwill posted ¥275 million, down

¥223 million year-on-year.

Net income (loss)

attributable to owners

of the parent company

(870) 54 (925) Booked foreign exchange losses of ¥460 million, from foreign exchange gains of

¥460 million at the previous first quarter.

EBITDA 714 829(114)

-13.8％

5

EBITDA = Operating income + Depreciation expenses + Depreciation of intangible fixed assets + Amortization of goodwill

1,250

1,382

10.6％

132

16/2 1Q 17/2 1Q

Operating income

(Millions of yen)

Men’s Market

Conducted sales promotions for patented hair growth, generating an increase in inquiries (up 135.9% year on year)

Enhanced website content and added chat function, generating an increase in website-based inquiries (up 145.0% year on year)

Financial Highlights: Aderans Business

330 309

2,237

-20 126 -388 103

2,363

1,413 1,025

2,998 3,102

16/2 1Q 男性新規男性リピート女性新規女性リピート 17/2 1Q

Net Sales (Millions of yen)

Male +4.1% Female -6.5%

6,980 6,801-179 (-2.6%)

First Quarter Results

Vital EX launched

March 1, 2016

Wig maintenance commercial

aired from May 1, 2016

Men’s Market

Enhance efficiency of website-driven consultations

Step up customer loyalty promotion activities

Use campaigns to encourage salon visits

Women’s Market

New sales down due to entry of other companies offering women’s wigs into the industry and onslaught from other companies in the same industry

Wig maintenance commercials designed to attract wig users away from other companies generated some inquiries, but translation to actual sales expected to take time

We achieved slight increase of inquiry by launching “Hair-up Program” , which is featured patented hair-growth technique. However, these efforts had limited effect, and sales of the women’s segment decreased year on year.

Sales down due to lower customer attraction power at try-on events held in department stores

1,330

1,506

13.3%

176

16/2 1Q 17/2 1Q

EBITDA (Millions of yen)

Women’s Market

Attract more customers through wig-maintenance and trade-in promotions targeting other wig-

brand users

Enhance efficiency of website-driven consultations

Step up marketing of hair-growth products (secure “wig reserve force” of women in 40s and 50s)

Improve ROI of exhibitions/try-on events; use small-scale events to attract new customers

Women’s hair-growth promotion

commercial aired from June 30, 2016

Fiscal 2017 initiatives

6

男性新規男性リピート女性新規女性リピート■ New Male ■ Repeat Male ■New Female ■Repeat Female

New Repeat New RepeatMale Male Female Female

Financial Highlights: Fontaine Business (Ready-made wigs)

7

2155 2,026

-128 (-6.0%)

-148 -5 24

16/2 1Q 百貨店直営店 GMS 17/2 1Q


122

56

-53.9%

-66

16/2 1Q 17/2 1Q

Operating income

(Millions of yen)

164

95

-42.1%

-69

16/2 1Q 17/2 1Q


Step up sales promotions, including campaigns and special events, linked to new product launches and in-salon sales

Capture users of other-brand wigs through follow-ups; prompt them to switch brands; strengthen up-selling efforts to bolster purchases

Strengthen connectivity between own on-line site and omni-channel strategy

百貨店…

直営店 100.3%

GMS 111.7%

全体 92.1%

80

100

120

140

3月 4月 5月累計

% Number of Customer Interactions (YoY % Change)



Department stores

Decline in shop customer interactions due to entry of other companies offering women’s wigs into the industry and onslaught from other companies in the same industry

Decline of in-salon customer attraction power

Directly operated salons

Decrease in sales at existing salons but decline minimal owing to new salon openings

GMS

Increase in sales thanks to new salon openings; repeat sales also firmly up

Department Directly GMSstores operated

salons

GMS (value) 111.7%

Directly operated salons (value) 100.3%

Overall (value) 92.1%

Department stores (value) 86.5%Mar. Apr. May Accumulated

Financial Highlights: Bosley Business

8

Problems with call center system (which went into operation in June 2015) were resolved in December 2015, but the issue affected the number of inquiries

through February 2016

Recruited physicians and assistants in line with full-scale introduction of Follicular Unit Extraction (FUE, hair-transplant method that doesn’t use scalpel), where

needs are growing

Successfully test-marketed FDA-approved CoolSculpting treatment (partial slimming through fat-cooling)

3,105 2,950

-155 (-5.0%)

-64 -90

16/2 1Q 売上純減為替(円高)の影響 17/2 1Q


146

-7

-154

16/2 1Q 17/2 1Q

Operating income (loss)

(Millions of yen) 195

39

-79.7%

-155

16/2 1Q 17/2 1Q


0

2

4

6

8

10

12

2008 2010 2012 2014

(10,000s) No. of Hair Transplants by Type

合計 FUE FUT

Source: ISHRS

Boost number of consultations through website renewal and effective

commercials

Increase number of FUE procedures by recruiting physicians and assistants and

training in FUE treatment method

Increase one-stop services by providing non-transplant-related medical treatment

FUT method FUE method

CoolSculptingEyebrow

transplantationTheradome

(laser hair growth)Hair Transplantation

（＄26.0ｍ）（＄25.4ｍ）

FUT

88.6%

FUE

11.3%Bosley

Fiscal 2016

No. of Hair Transplantation

FUT

81.4%

FUE

18.5%Bosley

1Q of Fiscal 2017

No. of Hair Transplantation



Exchange Rates: Fiscal 2016 First Quarter US$1 = ¥119.23, Fiscal 2017 First Quarter US$1 = ¥115.72, Presumed rate for fiscal 2017 at start of year: US$1 = ¥113.00

Net decrease Effect of yenin sales appreciation

■Total ■FUE ■FUT

Financial Highlights: Overseas Wig Business

9

North America (wigs)

HC: New salon openings: February 2016 (Pickering, Ontario, Canada);

May 2016 (Baton Rouge, Louisiana, USA)

Increased sales of women’s products and hair-volumizing products

AHG: Problems and returned products at mass retailers (main

wholesale clients)

5,455

(＄45.7m)

5,406

(＄46.7m)

1,211

(€9.1m)

-49 -10 -3 1,201

（€9.3m)

186 183

16/2 1Q 米国ウィッグ欧州ウィッグアジアウィッグ 17/2 1Q


6,852 6,790-61 (-0.9％)


HC: Increase new clients via commercials for hair-volumizing products, and

products aimed at women and Hispanics

Effective new salon openings continuously

AHG: Step up sales of Cyberhair (artificial hair developed in-house)

Introduce new products on a regular basis, and strengthen marketing capability

-451

-386 65

16/2 1Q 17/2 1Q

Operating loss

(Millions of yen)

459 420

-8.6%-39

16/2 1Q 17/2 1Q

EBITDA

(Millions of yen)

Europe (wigs)

Expand network based on medical needs (also consider growth through

acquisitions)

Asia (wigs)

China: Translate success of department store try-on events to new-salon

openings

Europe (wigs)

Solid performance driven by in-hospital salons and retail salons acquired in previous year

Acquired Dutch sales agency of wholesale client “Ellen Wille” expanded geographical

sales coverage

Asia (wigs)

China: Steady outcomes from try-on events at department stores

Taiwan: Opened Taiwan flagship salon to address rising demand for wigs

North America Europe Asia excluding Japan

Increase in local currency sales

North America (wigs) +2.2%

Europe (wigs) +2.2%



Exchange Rates: Fiscal 2016 First Quarter: US$1 = ¥119.23, €1＝¥132.61, Chinese yuan 1 =¥19.09

Fiscal 2017 First Quarter: US$1 = ¥115.72, €1＝¥127.99, Chinese yuan 1 =¥17.67

Presumed rate for fiscal 2017 at start of year: US$1 = ¥113.00 , €1＝¥124.00, Chinese yuan 1 =¥17.35

North Europe AsiaAmerica excluding

Japan

Financial Highlights: Other Business

10

403343

126 -59 19 -8 -3

145

38 30

4644

16/2 1Q 美材ルート病院内ｻﾛﾝ通信販売その他 17/2 1Q


613 562-51 (-8.3%)

-203

-244

-40

16/2 1Q 17/2 1Q

Operating loss

(Millions of yen)

-199

-239

-39

16/2 1Q 17/2 1Q


Beauty supplies

Step sales with both wholesalers and dealers; implement independent sales promotion activities

Promote wig workshops and monitor sales in preparation for busy season in second half of year

Medical business (Salon inside hospitals)

Reinforce staff training at in-hospital salons; build trust-based relationships between hospitals

and our hospital patrol staff

Online sales

Concentrated on catalog sales of items returned from business partners (March

2016)

Increased number of new customers thanks to wig sales via Aderans on-line

site (up 35.7% year on year)

Launched Beauty Stage brand offering total beauty solutions based on leading-

edge technologies (also handled in Aderans salons)

Online sales

Launch new product (Feel Fine wig) on July 1, 2016

Promote omni-channel strategy with salons nationwide

(free advice on wig attaching and after-sales maintenance

by salon staff)

Beauty supplies Salon inside hospitals Online sales Others



Beauty Salon Online sales OthersSupplies inside

hospitals

Beauty supplies

Sales of new products (Lift Up hair-volumizing wigs) below

expectations (inadequate name recognition)

Increase in try-in events for custom-made wigs at hair beauty salons

Medical business (Salon inside hospitals)

Increase in telephone inquiries thanks to stepped-up pamphlet

distributions in hospitals

New in-hospital salon opened: Suita Tokushukai Hospital (May 2016)

Fiscal 2017: First Quarter Consolidated Sales

11

19,708

19,131

105

-284

-128

-64 138

-297

-44

Fiscal 2016

First Quarter

Fiscal 2017

First Quarter

(Millions of yen)

Others

Bosley: -¥90 million


Hair Club: -¥146 million

AHG (wigs, wholesale): -¥17 million

Europe (wigs): -¥42 million


Hair Club: +¥224 million

AHG (wigs, wholesales): -¥117 million

Europe (wigs): ¥32 million

Women’s

salons

Aderans Business

（Custom-made wigs）

Men’s

salons

Fontaine Business

（Ready-made wigs

for women）

Bosley Business, excluding

foreign exchange difference

Overseas Wig Business (North

America and Europe),

excluding foreign exchange difference

Difference

effect

of yen

appreciation

Fiscal 2017: First Quarter Consolidated Operating Income

12

-339 -402

-442 396

-133235 -214

96

(Millions of yen)

Fiscal 2016

First Quarter

Fiscal 2017

First Quarter

Domestic Overseas（Bosley, Overseas Wig Business）

Decrease in

gross profit

OtherDecrease in

SG&A

expenses

due to the ffect

of yen

appreciationIncrease in SG&A

expenses excluding

foreign exchange

difference

Decrease in

gross profit

Decrease in

SG&A

expenses

Change in Quarterly Consolidated Performance

13

19,131 20,869

0

5,000

10,000

15,000

20,000

25,000

1Q 2Q 3Q 4Q

2015年2月期 2016年2月期 2017年2月期

(Millions of yen)

602

-1,000

-500

0

500

1,000

1,500

2,000

1Q 2Q 3Q 4Q

2015年2月期 2016年2月期 2017年2月期

(Millions of yen)

Consolidated Net Sales Consolidated Operating Income (Loss)

-402

0

500

1,000

1,500

2,000

2,500

3,000

1Q 2Q 3Q 4Q

2015年2月期 2016年2月期 2017年2月期

(Millions of yen)

714

Consolidated EBITDA

■Fiscal 2015 ■Fiscal 2016 ■Fiscal 2017 ■Fiscal 2015 ■Fiscal 2016 ■Fiscal 2017

■Fiscal 2015 ■Fiscal 2016 ■Fiscal 2017

Fiscal 2017 Consolidated Business Forecast

14

Fiscal 2016 (Actual) Fiscal 2017 (Forecast) YOY Change

First HalfSecond

HalfFull Year First Half

Second

HalfFull Year Amount %

Net sales 39,842 39,310 79,153 40,000 41,300 81,300 2,147 2.7%

Operating

income (loss)

459 -584 -125 200 450 650 775 -

Ordinary

income (loss)

821 -1,370 -548 190 450 640 1,188 -

Net income (loss) attributable to owners of the parent company

349 -2,209 -1,860 30 70 100 1,960 -

(Millions of yen)

Fiscal 2016 (Actual) Fiscal 2017 (Forecast) YOY Change

At end of first

halfYear-end Total

At end of first

halfYear-end Total Amount

Dividend 0 15 15 0 15 15 0

(Yen)

• There is no change to the forecast announced on April 14, 2016.

Supplementary Data

Consolidated Results for First Quarter of Fiscal 2017

16

Fiscal 2016

First Quarter

Fiscal 2017

First Quarter

YOY change

(¥)YOY change (%)

Net sales 19,708 19,131 -576 -2.9%

Cost of sales 4,083 4,019 -64 -1.6%

Cost of sales ratio 20.7% 21.0％ 0.3p -

Gross profit 15,624 15,112 -512 -3.3%

SG&A expenses 15,964 15,514 -449 -2.8%

Operating loss -339 -402 -62 -

Operating income ratio - - - -

Ordinary income (loss) 315 -883 -1,198 -

Extraordinary income 0 0 0 -72.3%

Extraordinary loss 215 29 -185 -86.0%

Income before taxes 99 -913 -1,012 -

Net income (loss) attributable to owners of the parent company 54 -870 -925 -

Capital expenditures 1,187 947 -240 -20.2%

Depreciation/Amortization 1,169 1,117 -51 -4.4%

EBITDA 829 714 -114 -13.8%

Cash balance 12,232 11,098 -1,133 -9.3%

(Millions of yen)

Summary of Consolidated Balance Sheets

17

As of February 29, 2016 As of May 31, 2016YOY

(Millions of yen)Amount

(Millions of yen)

Composition

(%)

Amount

(Millions of yen)

Composition

(%)

Current assets 27,992 41.5 26,722 41.2 -1,269

(Cash and deposits) 11,979 17.8 11,098 17.1 -880

Fixed assets 39,495 58.5 38,122 58.8 -1,373

(Tangible fixed assets) 14,189 21.0 14,482 22.3 292

(Intangible fixed assets) 19,188 28.4 17,409 26.8 -1,778

Total assets 67,487 100.0 64,844 100.0 -2,642

Current liabilities 12,018 17.8 12,509 19.3 490

Fixed liabilities 19,158 28.4 18,510 28.5 -648

Total liabilities 31,177 46.2 31,020 47.8 -157

Total net assets 36,309 53.8 33,824 52.2 -2,485

Total liabilities and

net assets67,487 100.0 64,844 100.0 -2,642

(Millions of yen)

Consolidated Net Income, ROE, and Equity Ratio

21

1

6.9

-150

-125

-100

-75

-50

-25

0

25

50

75

-250

-200

-150

-100

-50

0

50

100

150

Consolidated Net Income(Hundred millions of yen)

Equity RatioROE(%)

30

60

90

-30

-60

-90

*Estimates

Net Income ROE Equity Ratio

Change in Consolidated Net Sales and Operating Income

18

-100

-50

0

50

100

150

200

250

0

100

200

300

400

500

600

700

800

900

85.2 86.2 87.2 88.2 89.2 90.2 91.2 92.2 93.2 94.2 95.2 96.2 97.2 98.2 99.2 00.2 01.2 02.2 03.2 04.2 05.2 06.2 07.2 08.2 09.2 10.2 11.2 12.2 13.2 14.2 15.2 16.2 17.2

Aderans Holdings integrates

Aderans Co and Fontaine Co.(September 2010)

Fontaine Co made into its subsidiary(August 1985）Started expanding into women’s marketStock registered with Japan Securities Dealers Association(September 1985)

Listed on SecondSection of Tokyo Stock Exchange

January1987)

Listed on First Section of Tokyo Stock Exchange

(August 1997)

Made Bosley into its subsidiary

(August 2001)

Made HC (USA) Inc.

into its subsidiary

(April 2013)

Made Le Nouvel Espace Beauté SA

into its subsidiary(September 2012)

Aderans Lao Co., Ltd. established(May 2014)

Aderans Europe BVestablished

(January 1992)

Aderans Thailand established(Factory) (October 1986)

Aderans Philippine established(Factory) (January 2002)

Consolidated Sales (Hundred millions of yen)

Operating Income (Hundred million yen)Consolidated

Net SalesConsolidatedOperating Income

Consolidated EBITDA, Depreciation/Amortization, Capital Expenditures

20

54 67

82

0

10

20

30

40

50

60

70

80

90

-100

-50

0

50

100

150

200

250

New opening of Aderans salons

New openings and relocation of directly operated salons

and shops at deparment stores

Acquisition of the Company’s building

Relocation of Aderans salons due to

its deterioration

New openings and relocation of Aderans salons, and construction of

company dormitory and training center.

Capital spending on information system for the Y2K issue

Consolidated EBITDA

Depreciation/Amortization

Capital Expenditures

Consolidated EBITDA(Hundred millions of yen)

Depreciation/AmortizationCapital expenditures

(Hundred millions of yen)

*Estimates

Change in Net Sales for Each Segment

19

813

739 706

727 735 750

705

574

482 474 511

678

767 792

910

0

100

200

300

400

500

600

700

800

900

1,000


Ov

ersea

s

Aderans, Male

Aderans, Female

Fontaine

Bosley

Overseas wig

Male

13.0%

Female

22.3%North

America

28.0%

Europe

6.1%

Asia

1.0%

Aderans

Business

35.3%

Fontaine

Business

10.9%Bosley

Business

15.7%

Overseas Wig

Business

35.1%

Other

3.0%

First Quarter

of Fiscal 2016

Consolidated

Nat Sales

¥19,708 million

Male

13.9%

Female

21.5%

North

America

28.5%

Europe

6.3%

Asia

1.0%

Aderans

Business

35.4%

Fontaine

Business

10.6%Bosley

Business

15.4%

Overseas

Wig

Business

35.8%

Other

2.9%

First Quarter

of Fiscal 2017

Consolidated

Nat Sales

¥19,131 million

Overse

as

Do

mestic

Dom

estic

■Aderans (Male) ■Aderans (Female) ■Fontaine Business

■Bosley Business ■Overseas Wig Business ■Other Operations

-Fontaine Business included beauty supply route until the end of fiscal 2010, ended February 28, 2010

-Other Operations includes beauty supply route, medical-related businesses and e-commerce retail

*Estimates

Changes in Domestic Salon Network

22

8 7 7 7 7 716 13 13 16 20 19

118 119 127 135 136 137

151 148 148150 156 157

28 32 3033

37 382

13

3447 53

6 1417

22

25 26

0

50

100

150

200

250

300

350

400

450

2012年2月末 2013年2月末 2014年2月末 2015年2月末 2016年2月末 2016年5月末

335355

397

428

327

437

(Number of salons)

Feb. 29, 2012 Feb. 28, 2013 Feb. 28, 2014 Feb. 28, 2015 Feb. 29, 2016 May 31, 2016

■Men’s salons ■Women’s salons ■Salons for men and women ■Department stores ■Directly operated salons ■GMS ■In-hospital salons

Changes in Overseas Salon Network

23

24 23 23 25 25

71 81 86 8869

7581

90 93

18

22

36

41 38

111

191

221

242 244

0

50

100

150

200

250

2012年12月末 2013年12月末 2014年12月末 2015年12月末 2016年3月末

(Number of salons)

■Bosley (Surgical offices) ■Hair Club (Directly operated salons) ■Europe ■Asia

Dec. 31, 2012 Dec. 31, 2013 Dec. 31, 2014 Dec. 31, 2015 Mar. 31, 2016

Domestic Market Environment—Hair Business

21

Men’s Market

Heightened competition from adjacent hair-related markets,

such as formulas that promote growth and make hair

healthier, as well as haircare products, has in the past few

years sustained an uphill battle for sales. But many people do

not feel that such products are generating the desired effect,

prompting an increase in sales of wigs and hair-volumizing

products to new male clients.

Women’s Market

More women are falling into the 50-70 age group that is our

primary target and more seniors are remaining active as they

age. These factors should spur demand for wigs and hair-

volumizing products.

Sales at wig shops with reasonably priced items and sales at

try-on events are rising, especially through a higher profile at

general merchandise stores, leading to intense competition.

Wigs are becoming accepted as a fashion item, and

companies from other business sectors are entering the

market. Wigs in the low-price range are being sold through

home shopping channels, e-commerce and catalog-based

direct marketing methods. This situation is affecting the

ability to capture the interest of new clients.

700 683 689 694 695 696 697 698 699

630 677 699 707 713 719 725 731 737

1,330 1,360

1,388 1,401 1,408 1,415 1,422 1,429 1,436

0

500

1,000


Changes in Size of Men’s and Women’s Markets

in the Domestic Hair Business男性女性■Male ■Female

2011 2012 2013 2014 2015 2016 2017 2018 2019(Forecast) (Forecast) (Forecast) (Forecast) (Forecast)

Source: Hair Care Industry Market Report Overview by Yano Research Institute Ltd.

Domestic Hair Care Market Share

Aderans

16.1%

Company A

33.8%

Company B

8.9%

Company C

5.8%

Company D

4.3%

Other companies

31.1%

Share of Domestic Hair Care Market (Men)

Men’s hair care market

in Japan valued at

¥69,400 million

in 2014

Aderans

42.7%

Company A

24.1%

Company B

6.6%

Company C

3.7%

Company D

3.4%

Company E

3.4%

Other companies

16.1%

Share of Domestic Hair Care Market (Women)

Women’s hair care market

in Japan valued at

¥70,700 million

in 2014

Source: Hair Care Market Report Overview, Yano Research Institute

Outside-industry providers of low-

priced ready-made wigs

• Pharmaceuticals maker

• Cosmetics makers

• Beauty salons

• Small-scale wig maker

22

No major change in share status among key players

since 2012.

Wigmakers and companies from outside the industry that

offer low-priced wigs are expanding respective shares in the

market through their own sales channels.

Aderans Group Consolidated Results for the First Quarter...

Documents

Transcript of Aderans Group Consolidated Results for the First Quarter...