Fancl : Consolidated Financial Statements for the First Quarter of the Fiscal Year Ending March 31, 2022(Additional material)

August 4, 2021

FANCL Corporation

TSE 1st Section: 4921

This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains forward-looking statements based on a number of assumptions and beliefs made by management in light of information currently available. Actual financial results may differ materially depending on a number of uncertain factors.

Contents

Page 1,2,3 ◆Sales by Segment

Page 4,5,6 ◆Segment Information

◆General and Administrative Expenses

◆Capital Investment and Depreciation

Page 7 ◆Direct Store Data

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Changes in Accounting Treatment

In accordance with the adoption of the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29), etc. from FY Mar/2022, the figures in this document assume that the same criteria were applied to the FY Mar/2021 results to enable a comparison that is more in line with actual conditions.

Main changes due to the adoption of the "Accounting Standard for Revenue Recognition" are as follows:

1. Amount of points provided to customers and cost of rebates to retailers (Before) Sales promotion expenses  (After) Subtracted from sales
2. Developer commission for consignment buying contracts for store sales (mainly department stores)
   (Before) Sales commissions  (After) Subtracted from sales
3. Sales promotion goods (gifts, etc.)
   (Before) Sales promotion expenses  (After) Added to cost of sales

There is no impact on operating income.

◆Main changes due to adoption of "Accounting Standard for Revenue Recognition"

		Main changes
Sales	① 、②(subtracted)
Cost of sales	③(added)
SG&A Expenses
	Advertising expenses
	Sales promotion	① (subtracted) points and rebates
	expenses	③(subtracted) Sales promotion goods (gifts, etc.)
	Outsourcing fees and	②(subtracted) Commissions for consignment buying
	commissions	contracts
	Other
Operating income

◆Sales by Segment (Three Months)

									(Millions of yen,%)
		Three Months		Three Months	Three Months
			ended Jun/20	ended Jun/21
		ended Jun/20
			(Standard for Revenue	(Standard for Revenue
		(Previous Standard)
			Recognition)		Recognition)
		amount	% of total	% change		amount	% of total	amount	% of total		% change
C	Online and catalogue	8,608	58.5	21.6		8,268	61.0	7,508	51.7		(9.2)
o	Direct store	2,807	19.1	(66.5)		2,070	15.3	3,249	22.4		56.9
s	Wholesale	1,711	11.6	(29.0)		1,671	12.3	1,998	13.8		19.6
m	Overseas	1,589	10.8	(4.8)		1,541	11.4	1,751	12.1		13.6
e	Sub total	14,716	55.9	(24.6)		13,552	55.5	14,506	57.6		7.0
S	Online and catalogue	4,373	48.1	15.5		4,136	48.6	4,176	46.5		1.0
u
Direct store	1,161	12.8	(66.2)		889	10.5	1,535	17.1		72.8
pp
Wholesale	3,077	33.8	(13.2)	2,995	35.2	2,349	26.1		(21.6)
Overseas	481	5.3	(20.0)	481	5.7	926	10.3		92.5
l
e	Sub total	9,093	34.6	(20.0)		8,501	34.8	8,988	35.7		5.7
O	Online and catalogue	2,080	83.6	73.2		1,975	83.9	1,290	76.7		(34.7)
t	Direct store	86	3.5	(23.9)		65	2.8	73	4.4		11.6
he
Wholesale	314	12.6	(5.8)		306	13.0	315	18.7		2.9
Overseas	6	0.3	352.1	6	0.3	3	0.2		(49.5)
r
s	Sub total	2,488	9.5	50.7		2,353	9.7	1,682	6.7		(28.5)
T	Online and catalogue	15,062	57.3	24.8		14,380	58.9	12,975	51.5		(9.8)
o	Direct store	4,055	15.4	(66.0)		3,025	12.4	4,858	19.3		60.6
t	Wholesale	5,102	19.4	(18.8)		4,972	20.4	4,662	18.5		(6.2)
a	Overseas	2,077	7.9	(8.6)		2,029	8.3	2,680	10.7		32.1
l	Sub total	26,298	100.0	(19.2)		24,407	100.0	25,176	100.0		3.2
		Three Months		Three Months	Three Months
			ended Jun/20	ended Jun/21
		ended Jun/20
			(Standard for Revenue	(Standard for Revenue
		(Previous Standard)
			Recognition)		Recognition)
		amount	% of total	% change		amount	% of total	amount	% of total		% change
R	Online and catalogue	282	53.1	27.9		266	52.6	242	46.7		(9.0)
Direct store	10	1.9	(51.1)		7	1.4	9	1.9		40.4
i
Wholesale	239	45.0	0.6		232	46.0	266	51.4		14.5
c
Overseas	0	0.0	(58.4)		0	0.0	0	0.0		(46.9)
e
Sub total	531	2.0	10.9	506	2.1	519	2.1		2.5
K	Online and catalogue	459	78.7	16.1		434	79.7	396	80.2		(8.7)
Direct store	43	7.5	(51.1)		32	5.9	48	9.7		49.0
a
Wholesale	74	12.8	(22.1)		72	13.3	46	9.5		(35.5)
l
Overseas	6	1.0	483.9		6	1.1	3	0.6		(49.6)
e
Sub total	583	2.2	0.3	545	2.2	494	2.0		(9.3)

1

◆Sales by Segment (Six Months)

									(Millions of yen,%)
			Six Months			Six Months	Six Months ended Sept/21
					ended Sept/20		(Projection)
		ended Sept/20
			(Standard for Revenue	(Standard for Revenue
		(Previous Standard)
			Recognition)		Recognition)
		amount	% of total	% change		amount	% of total	amount	% of total		% change
C	Online and catalogue	15,842	52.2	6.6		15,203	54.8	15,120	51.4		(0.6)
o	Direct store	7,438	24.5	(55.1)		5,643	20.4	7,010	23.8		24.2
s	Wholesale	3,659	12.1	(25.5)		3,573	12.9	3,940	13.4		10.3
m	Overseas	3,408	11.2	(3.9)		3,308	11.9	3,360	11.4		1.6
e	Sub total	30,349	55.9	(23.9)		27,729	55.6	29,430	56.1		6.1
S	Online and catalogue	8,655	44.4	11.6		8,173	45.4	8,600	43.9		5.2
u
Direct store	3,589	18.4	(48.3)	2,730	15.2	3,520	18.0		28.9
pp
Wholesale	5,746	29.5	(18.2)		5,596	31.1	5,300	27.0		(5.3)
Overseas	1,494	7.7	20.4	1,494	8.3	2,170	11.1		45.2
l
e	Sub total	19,485	35.9	(15.1)		17,995	36.0	19,590	37.4		8.9
O	Online and catalogue	3,553	80.2	45.7		3,371	80.7	2,630	76.7		(22.0)
t	Direct store	228	5.2	(6.4)		175	4.2	190	5.5		8.1
he
Wholesale	634	14.3	(2.4)		618	14.8	600	17.5		(2.9)
Overseas	13	0.3	268.1	13	0.3	10	0.3		(23.5)
r
s	Sub total	4,429	8.2	32.7		4,178	8.4	3,430	6.5		(17.9)
T	Online and catalogue	28,051	51.7	11.9		26,747	53.6	26,350	50.2		(1.5)
o	Direct store	11,256	20.7	(52.6)		8,549	17.1	10,720	20.4		25.4
t	Wholesale	10,041	18.5	(20.2)		9,788	19.6	9,840	18.8		0.5
a	Overseas	4,916	9.1	2.6		4,816	9.7	5,540	10.6		15.0
l	Sub total	54,265	100.0	(18.0)		49,902	100.0	52,450	100.0		5.1
			Six Months			Six Months	Six Months ended Sept/21
					ended Sept/20		(Projection)
		ended Sept/20
			(Standard for Revenue	(Standard for Revenue
		(Previous Standard)
			Recognition)		Recognition)
		amount	% of total	% change		amount	% of total	amount	% of total		% change
R	Online and catalogue	550	52.0	16.9		519	51.6	460	46.9		(11.5)
Direct store	28	2.7	(36.1)		21	2.1	20	2.1		(5.7)
i
Wholesale	479	45.3	5.3	466	46.3	500	51.0		7.2
c
Overseas	0	0.0	(44.3)		0	0.0	0	0.0		-
e
Sub total	1,058	2.0	9.0	1,007	2.0	980	1.9		(2.7)
K	Online and catalogue	891	75.2	10.8		842	76.5	800	77.7		(5.0)
Direct store	125	10.6	(33.4)		94	8.6	120	11.6		27.1
a
Wholesale	155	13.1	(19.8)	151	13.7	100	9.7		(33.8)
l
Overseas	12	1.1	337.9		12	1.2	10	1.0		(21.3)
e
Sub total	1,185	2.2	(0.4)	1,100	2.2	1,030	2.0		(6.4)

2

• Sales by Segment (Full Year)

										(Millions of yen,%)
		FY Mar/2021			FY Mar/2021	FY Mar/2022 (Projection)
				(Standard for Revenue	(Standard for Revenue
		(Previous Standard)
			Recognition)		Recognition)
		amount	% of total		% change		amount	% of total	amount	% of total		% change
C	Online and catalogue	32,017	49.1		10.1		30,679	51.8	31,430	51.7		2.4
o	Direct store	18,078	27.8		(39.1)		13,876	23.4	14,620	24.1		5.4
s	Wholesale	7,726	11.9		(15.1)		7,513	12.7	7,750	12.7		3.1
m	Overseas	7,317	11.2		(9.1)		7,151	12.1	6,990	11.5		(2.3)
e	Sub total	65,140	56.7		(14.2)		59,221	56.3	60,790	55.8		2.6
S	Online and catalogue	17,994	43.7		14.5		16,948	44.8	18,170	44.3		7.2
u	Direct store	8,072	19.6		(35.4)		6,137	16.2	7,070	17.2		15.2
pp
Wholesale	11,989	29.1		(9.0)	11,633	30.7	11,550	28.1		(0.7)
Overseas	3,134	7.6		19.8	3,134	8.3	4,270	10.4		36.2
l
e	Sub total	41,191	35.8		(6.4)		37,854	36.0	41,060	37.7		8.5
O	Online and catalogue	6,801	79.3		33.2		6,443	79.8	5,580	78.0		(13.4)
t	Direct store	500	5.8		(3.7)		390	4.8	370	5.2		(5.2)
he
Wholesale	1,253	14.6		(1.8)		1,214	15.1	1,180	16.5		(2.9)
Overseas	22	0.3		112.1	22	0.3	20	0.3		(12.9)
r
s	Sub total	8,578	7.5		24.1		8,071	7.7	7,150	6.5		(11.4)
T	Online and catalogue	56,813	49.4		13.9		54,071	51.4	55,180	50.6		2.0
o	Direct store	26,650	23.2		(37.6)		20,404	19.4	22,060	20.2		8.1
t	Wholesale	20,970	18.3		(11.0)		20,361	19.4	20,480	18.8		0.6
a	Overseas	10,475	9.1		(1.9)		10,309	9.8	11,280	10.4		9.4
l	Sub total	114,909	100.0		(9.4)		105,146	100.0	109,000	100.0		3.7
		FY Mar/2021			FY Mar/2021	FY Mar/2022 (Projection)
				(Standard for Revenue	(Standard for Revenue
		(Previous Standard)
			Recognition)		Recognition)
		amount	% of total		% change		amount	% of total	amount	% of total		% change
R	Online and catalogue	1,132	52.1		11.2		1,064	51.7	900	46.6		(15.5)
Direct store	63	2.9		(27.7)		48	2.3	40	2.1		(16.8)
i
Wholesale	976	44.9		5.8	946	46.0	990	51.3		4.6
c
Overseas	0	0.1		(67.9)		0	0.0	0	0.0		-
e
Sub total	2,172	1.9		6.9	2,059	2.0	1,930	1.8		(6.3)
K	Online and catalogue	1,855	75.4		11.6		1,746	76.9	1,700	79.1		(2.7)
Direct store	310	12.6		(22.1)		235	10.4	240	11.2		1.8
a
Wholesale	274	11.1		(21.7)	265	11.7	190	8.8		(28.4)
l
Overseas	22	0.9		167.2		22	1.0	20	0.9		(9.7)
e
Sub total	2,462	2.1		1.7	2,270	2.2	2,150	2.0		(5.3)

3