FY4/12～FY4/14 Medium-term Management...

“Challenge 300”Challenge 300FY4/12～FY4/14

Medium-term Management Plan

YA-MAN LTD.June 17, 2011

0Copyright c YA-MAN LTD. All Rights Reserved.

YA MAN LTD.

Copyright c YA-MAN LTD. All Rights Reserved.

The YA-MAN Corporate PhilosophySecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

p p y

Corporate Philosophyp p yDedicated to supplying products with a “heart” that are

backed by advanced technologies to provide support for the desire of customers for beauty and a healthy life

A manufacturer-retailer specializing in the beauty care and health product sectors

Use products to create a culture (lifestyle habits)

Develop products closely linked to consumers’ life styles

Demand-creation products

Copyright c YA-MAN LTD. All Rights Reserved. 1

YA-MAN’s Three Major Product CategoriesSecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

j g

no!no!Hair plus

Only minerals

Beauty care appliances

Cosmetics and variety goods

Demand-creation products

PW Mist

Wellness appliances /

Genie

Fitness devices

Ionicpro TURBO


Leg Queen

Strengths of the YA-MAN Business ModelSecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

g

Excellence in manufacturing One-stop beauty Sales capabilities Confidence

Accurately targets customers’ needsMany patented technologies

Esthetique salon equipment expertise

A diverse lineup of beauty care products

Activities cover all major distribution channels

Call center /Face-to-face sales at stores

Product d l t

Direct salesBeauty care

Cosmetics and variety

Infodevelopment

Ideas for new products Store sales Mail-order

sales

Follow-up / Counseling

appliancesgoods

Wellness appliances sales

Feedback

Wellness appliancesFitness devices

Become the de facto standard in the beauty care


and health device industry

Sales CompositionSecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

p

Sales by Distribution ChannelFY4/09 FY4/10 FY4/11

(Millions of yen)

FY4/09 FY4/10 FY4/11Wholes

Mail-order sales 4,713 6,089 6,589

S l 3 806 4 553 7 050

sale Store sales 3,806 4,553 7,050

Direct sales 6,905 8,322 5,785

Overseas, others 589 151 244

Total 16,013 19,115 19,668

15,000

20,000

通信販売卸Wholesale to mail-order sales companies

5,000

10,000 店舗販売卸

直接販売

海外その他

Wholesale to stores

Direct sales

Overseas, others


02009/4期 2010/4期 2011/4期FY4/09 FY4/10 FY4/11

Growth in Markets and YA-MAN’s Market Share (1)Second Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

( )

Mobile Facial Care DevicesL h f

Beauty Care Appliance Market

1,000

1,500

39.5% share in 2010

Launch of Platinum

White Mist

Market size40,990

47,030 50,000

(Millions of yen)

(Millions of yen)

0

500

Maintaining leadership by creating new markets

1,200

YA-MAN47429,050 32,760

38,150 40,990

40,000

Hair Removal Devices

2006 2007 2008 2009 2010

20 000

30,000 Note: The YA-MAN portion represents sales of Platinum White Mist

(Millions of yen)

66 7% share in 2010

10,000

Launch of no!no!HAIR

Market size8 350

10,000

20,000 (Millions of yen)

66.7% share in 2010YA-MAN is using its leadership to expand this market

5,0008,350

YA-MAN5,567

0

2006 2007 2008 2009 2010


0

2006 2007 2008 2009 2010Note: Shipment data according to

Fuji Keizai Co., Ltd.

Second Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

Growth in Markets and YA-MAN’s Market Share (2)

Mineral FoundationsThe Foundation Market

( )

20,000

236 000223,800 212 500

250,000

(Millions of yen)(Millions of yen)

10 000

15,000

18.8% share in 2010Launch of Only Minerals

235,500 236,000

236,000 212,500

150,000

200,000

5,000

10,000Market size

15,500YA-MAN ranks first among more than 10 companies in this market

50,000

100,000

0

2008 2009 2010

YA-MAN2,917

market0

2006 2007 2008 2009 2010 (fct.)

Establish a position as the market leader by launching demand-

Note: Shipment data according toFuji Keizai Co., Ltd.


p y gcreation products in markets with substantial sales volume.

Expansion of Distribution Channels (1)Second Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

p ( )Beauty care products as pct. of sales area at home appliance stores

4.0%

5.0%

8,000

10,000(thousand square meters)

2.0%

3.0%

4,000

6,000

0 0%

1.0%

0

2,000

,

0.0%02001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

(fct.)

2012

(est.)Total floor area of home appliance stores (left scale)Pct. of floor area devoted to beauty care category (right scale)

Sales area for beauty care products is increasing faster than growth of total floor area of home appliance stores.


Source: Fuji Keizai Co., Ltd.,March-2011 Survey


Expansion of Distribution Channels (2)Store sales: Growth in number of stores selling YA-MAN products

Stores Selling Cosmetics ProductsStores Selling Beauty Care Appliances

p ( )

5,000

Stores Selling Cosmetics Products

4,532

Stores Selling Beauty Care Appliances

15,000

3,000

4,000

2,7023,044

3,38810,000 9,325

12,997

2,000

,

5,000 4,992

8,022

0

1,000

2010 2011（fct.） 2012（fct.） 2013(fct.）0

2010 2011（fct.） 2012（fct.） 2013（fct.）Department stores Large variety storesSmall/midsize variety stores Large high-volume storesSmall/midsize high-volume stores

2010 2011（fct.） 2012（fct.） 2013（fct.）

Home appliance stores GMS Others



Expansion of Distribution Channels (3)Mail-order sales: Growth of Japan’s mail-order sales market

The TV Shopping Market

p ( )

The TV Shopping Market

3 935 4,0105,000

(Billions of yen)

3,557 3,747 3,906 3,935 4,010

3,000

4,000

1 000

2,000

0

1,000

2006 2007 2008 2009 2010（est.）Source: Fuji Keizai Co., Ltd.,

Nov-2010 Survey

In 2009, TV shopping sales totaled 437 billion yen for the 30 major companies i thi k t l ti t d it th i d t


in this market; sales continue to grow despite the economic downturn.(Source: Tsuhan Shimbun dated August 5, 2010)


Expansion of Distribution Channels (4)

Direct sales: Growth in repeat sales as pct. of direct sales

p ( )

45.6%

40 0%

50.0%

39.8%

30.0%

40.0%

13.6%20.0%

10.4%

0.0%

10.0%

May 2008 Nov 2008 May 2009 Nov 2009 May 2010 Nov 2010 May 20112008.5 2008.11 2009.5 2009.11 2010.5 2010.11 2011.5

Repeat sales as pct. of number of customers Repeat sales as pct. of monetary sales

Gro th in repeat c stomers is creating a stable profit str ct re

May 2008 Nov. 2008 May 2009 Nov. 2009 May 2010 Nov. 2010 May 2011


Growth in repeat customers is creating a stable profit structure

Expansion of the Product LineupSecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

p p

Product lineup growth in all categories

Earnings contributions of major products

Diversification of big hit products

Industry leadership from innovation linked to

esthetique salon know-how

Others

Diversification of big hit products

Creation of consistent core productsOral care

q

Hair removal Hair removalHair removal

Others

Hair care

Misting device

Misting device

Others

New hair removal devices

Hair care

Mineral cosmetics

Slimming

Hair removal devices

Slimming Slimming Slimming

Others

Slimming

Mineral cosmetics

Mineral cosmetics

Mineral cosmetics



Others

Slimming items

Mineral skin care

Facial care devices

Facial care devices

Facial care devices

Facial care devices

Facial care devices

OthersSlimming

itemsSlimming

itemsSlimming

itemsSlimming

items

Facial care devices

Slimming items

Steamers

Slimming items


2011 20122010200920082007

Numerical TargetsSecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

g

FY4/11 results FY4/12 (plan) FY4/13 (plan) FY4/14 (plan)

(Millions of yen)

Net sales 19,668 22,020 25,000 30,000

Operating income 1,724 2,017 2,400 3,100

Ordinary income 1,699 1,939 2,300 3,000

Net income 941 1,113 1,300 1,700

Major indicators (1) FY4/11 results FY4/14 (target) Goal

Sales growth rate +2.9%30 bn yen

in net salesAnnual growth of 10% to 20%

Ordinary income ratio 8.6% 10% Improve profitability while maintaining sufficient investments in R&D and advertising/marketinginvestments in R&D and advertising/marketing

Major indicators (2) FY4/11 results FY4/12 (plan) Goal

Dividend per share 30 yen 36 yen Increase dividend along with growth in earnings


Dividend per share 30 yen 36 yen Increase dividend along with growth in earnings

Aiming for Higher Goals – Start Selling Medical DevicesSecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

Introduce products in new categories by using patents and development expertisedevelopment expertise

Invest aggressively in fields where YA-MAN can be first to introduceInvest aggressively in fields where YA MAN can be first to introduce beauty care and health appliances for individuals

New medical device categories in Medical device categories in overseasNew medical device categories in Japan

Medical device categories in overseas markets

Esthetiquedevices

Medical care devices


Establish two pillars of growth

Aiming for Higher Goals – Start Overseas OperationsSecond Section: “Challenge 300” Medium-term Management Plan for FY4/12 to FY4/14

Europe and North AmericaChina and Asia

Use effective marketing to sell mainly products for Japan that can meet needs of consumers in China and Asia

Target opportunities in the market for medical care devices

Start operations in Asia, mainly the rapidly growing markets of China, and in Europe and North America, the most advanced regions of the world in

the field of esthetiq e carethe field of esthetique care.

Leverage strengths in Japan to establish a framework for counseling, after-sales services and rigorous quality management.a e sa es se ces a d go ous qua y a age e

FY4/12Preparations

(Plan for distribution channels

FY4/13Action

(A ti b d th l

FY4/14Results

(F l ith th t t


(Plan for distribution channels, items, sales methods, etc.)

(Actions based on the plan, progress through trial and error)

(Focus on plans with the greatest potential and generate earnings)


Aiming for Higher Goals – More Product Categories and Distribution ChannelsDistribution Channels

Overseas

M

China and AsiaEurope and

North America

whole

Mail-order sales

More distr Categories that

se patented

esale Store sales

ribution ch

use patented technologies

Direct sales

Wellness

hannels

Beauty care appliances

Wellness appliances

Fitness devices

Cosmetics and variety goods Medical care sector


More product categories

Thank you for attending today’s presentation.y g y p

Contact

YA-MAN LTD. Finance Department,

Administration Division

TEL

E-mail [email protected]

+81(0) 3-5665-7330

Thi t ti d f th f idi i f ti b t th C t i t d i t i t d dThis presentation was prepared for the purpose of providing information about the Company to investors and is not intendedas a solicitation for an investment.

Forward-looking statements in this presentation are based on targets and forecasts and are not assurances or guaranteesconcerning performance in the future. Investors should be aware that actual results of operations may differ from theCompany’s current forecasts.

Statements concerning the beauty care and health appliances and other subjects are based on data that the Companybelieves are reliable. However, the Company does not guarantee that this information is accurate or complete.

This presentation was prepared on the premise that users will assume full responsibility for any decisions they reach


This presentation was prepared on the premise that users will assume full responsibility for any decisions they reachregardless of the purpose of using this information. The Company assumes no responsibility whatsoever for the results ofany of these decisions.

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