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

January 28, 2022

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 Dec/21		ended Dec/22
		ended Dec/21
			(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	8,874	49.9		18.3		8,495	52.3		8,456	51.7	(0.5)
o	Direct store	4,931	27.7		(29.3)		3,845	23.7		4,011	24.5	4.3
s	Wholesale	2,202	12.4		(10.3)		2,169	13.3		2,393	14.6	10.3
m	Overseas	1,775	10.0		(1.4)		1,737	10.7		1,505	9.2	(13.4)
e	Sub total	17,783	55.9		(5.1)		16,246	55.5		16,366	56.4	0.7
S	Online and catalogue	4,826	40.7		15.2		4,542	41.5		4,688	43.3	3.2
u
Direct store	2,345	19.8		(27.9)		1,785	16.3		1,736	16.1	(2.7)
pp
Wholesale	3,622	30.6		2.0		3,562	32.6		2,876	26.6	(19.2)
Overseas	1,049	8.9		18.8		1,049	9.6	1,511	14.0	44.0
l
e	Sub total	11,844	37.2		(0.3)		10,940	37.4		10,813	37.2	(1.2)
O	Online and catalogue	1,734	78.7		22.2		1,643	79.2		1,432	77.0	(12.8)
t
Direct store	154	7.0		3.9		122	5.9		118	6.4	(3.5)
he
Wholesale	307	14.0		(6.8)		302	14.6		305	16.4	0.8
Overseas	5	0.3		78.3		5	0.3	4	0.2	(30.2)
r
s	Sub total	2,202	6.9		15.9		2,074	7.1		1,859	6.4	(10.3)
T	Online and catalogue	15,434	48.5		17.7		14,681	50.2		14,576	50.2	(0.7)
o	Direct store	7,431	23.3		(28.4)		5,752	19.7		5,866	20.2	2.0
t	Wholesale	6,133	19.3		(3.2)		6,034	20.6		5,575	19.2	(7.6)
a	Overseas	2,831	8.9		5.3		2,793	9.5		3,020	10.4	8.2
l	Sub total	31,830	100.0		(2.1)		29,261	100.0		29,039	100.0	(0.8)
		Three Months			Three Months		Three Months
				ended Dec/21		ended Dec/22
		ended Dec/21
			(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	297	52.8		4.1		279	52.0		246	47.8	(11.7)
Direct store	17	3.2		(22.9)		13	2.6		11	2.1	(19.3)
i
Wholesale	248	44.0		(0.1)		243	45.4	258	50.1	5.9
c
Overseas	0	0.0		(53.5)		0	0.0		0	0.0	(65.1)
e
Sub total	563	1.8		1.1		537	1.8	516	1.8	(3.9)
K	Online and catalogue	512	75.1		12.9		481	70.0		493	79.5	2.5
Direct store	104	15.4		(6.9)		80	12.8		76	12.4	(4.1)
a
Wholesale	59	8.7		(27.1)		58	9.3	46	7.5	(20.5)
l
Overseas	5	0.8		101.7		5	0.9		4	0.6	(28.7)
e
Sub total	682	2.1		4.9		626	2.1		621	2.1	(0.8)

1

◆Sales by Segment (Nine Months)

											(Millions of yen,%)
			Nine Months			Nine Months		Nine Months
					ended Dec/21		ended Dec/22
		ended Dec/21
			(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	24,716	51.3		10.5		23,698	53.9		23,045	51.7	(2.8)
o	Direct store	12,369	25.7		(47.5)		9,488	21.6		10,121	22.7	6.7
s	Wholesale	5,862	12.2		(20.4)		5,742	13.0		6,391	14.3	11.3
m	Overseas	5,184	10.8		(3.1)		5,045	11.5		5,053	11.3	0.1
e	Sub total	48,133	55.9		(17.9)		43,975	55.5		44,611	56.5	1.4
S	Online and catalogue	13,482	43.0		12.9		12,715	43.9		13,064	44.6	2.7
u
Direct store	5,934	19.0		(41.8)		4,515	15.6		5,001	17.1	10.8
pp
Wholesale	9,368	29.9		(11.4)		9,159	31.7		7,554	25.8	(17.5)
Overseas	2,544	8.1		19.7		2,544	8.8	3,653	12.5	43.6
l
e	Sub total	31,329	36.4		(10.1)		28,935	36.6		29,273	37.1	1.2
O	Online and catalogue	5,287	79.7		37.1		5,014	80.2		3,820	75.9	(23.8)
t
Direct store	383	5.8		(2.5)		298	4.8		275	5.5	(7.5)
he
Wholesale	942	14.2		(3.9)		920	14.7		924	18.4	0.4
Overseas	18	0.3		176.9		18	0.3	10	0.2	(45.3)
r
s	Sub total	6,632	7.7		26.6		6,252	7.9		5,031	6.4	(19.5)
T	Online and catalogue	43,486	50.5		13.9		41,429	52.3		39,930	50.6	(3.6)
o	Direct store	18,687	21.7		(45.3)		14,302	18.1		15,398	19.5	7.7
t	Wholesale	16,174	18.8		(14.5)		15,822	20.0		14,870	18.8	(6.0)
a	Overseas	7,747	9.0		3.5		7,609	9.6		8,716	11.1	14.6
l	Sub total	86,095	100.0		(12.8)		79,163	100.0		78,916	100.0	(0.3)
			Nine Months			Nine Months		Nine Months
					ended Dec/21		ended Dec/22
		ended Dec/21
			(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	848	52.3		12.0		799	51.7		716	46.9	(10.4)
Direct store	46	2.9		(31.6)		34	2.3		30	2.0	(11.8)
i
Wholesale	727	44.8		3.4		710	46.0	779	51.1	9.7
c
Overseas	0	0.0		(48.3)		0	0.0		0	0.0	(46.2)
e
Sub total	1,622	1.9		6.1		1,544	2.0	1,526	1.9	(1.2)
K	Online and catalogue	1,404	75.2		11.5		1,324	76.7		1,265	79.1	(4.4)
Direct store	230	12.3		(23.5)		174	10.1		181	11.3	3.7
a
Wholesale	214	11.5		(22.0)		209	12.1	144	9.0	(31.0)
l
Overseas	18	1.0		222.1		18	1.1		10	0.6	(45.3)
e
Sub total	1,867	2.2		1.5		1,726	2.2		1,601	2.0	(7.2)

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		30,660	51.4	(0.1)
o	Direct store	18,078	27.8		(39.1)		13,876	23.4		13,690	23.0	(1.3)
s	Wholesale	7,726	11.9		(15.1)		7,513	12.7		8,460	14.2	12.6
m	Overseas	7,317	11.2		(9.1)		7,151	12.1		6,820	11.4	(4.6)
e	Sub total	65,140	56.7		(14.2)		59,221	56.3		59,630	56.0	0.7
S	Online and catalogue	17,994	43.7		14.5		16,948	44.8		18,010	44.9	6.3
u	Direct store	8,072	19.6		(35.4)		6,137	16.2		6,740	16.8	9.8
pp
Wholesale	11,989	29.1		(9.0)		11,633	30.7		10,720	26.7	(7.9)
Overseas	3,134	7.6		19.8		3,134	8.3	4,650	11.6	48.3
l
e	Sub total	41,191	35.8		(6.4)		37,854	36.0		40,120	37.7	6.0
O	Online and catalogue	6,801	79.3		33.2		6,443	79.8		5,150	76.3	(20.1)
t
Direct store	500	5.8		(3.7)		390	4.8		360	5.3	(7.8)
he
Wholesale	1,253	14.6		(1.8)		1,214	15.1		1,220	18.1	0.4
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		6,750	6.3	(16.4)
T	Online and catalogue	56,813	49.4		13.9		54,071	51.4		53,820	50.5	(0.5)
o	Direct store	26,650	23.2		(37.6)		20,404	19.4		20,790	19.5	1.9
t	Wholesale	20,970	18.3		(11.0)		20,361	19.4		20,400	19.2	0.2
a	Overseas	10,475	9.1		(1.9)		10,309	9.8		11,490	10.8	11.5
l	Sub total	114,909	100.0		(9.4)		105,146	100.0		106,500	100.0	1.3
		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		970	47.7	(8.9)
Direct store	63	2.9		(27.7)		48	2.3		40	2.0	(16.8)
i
Wholesale	976	44.9		5.8		946	46.0	1,020	50.1	7.8
c
Overseas	0	0.1		(67.9)		0	0.0		5	0.2	515.1
e
Sub total	2,172	1.9		6.9		2,059	2.0	2,035	1.9	(1.2)
K	Online and catalogue	1,855	75.4		11.6		1,746	76.9		1,670	79.0	(4.4)
Direct store	310	12.6		(22.1)		235	10.4		230	10.9	(2.4)
a
Wholesale	274	11.1		(21.7)		265	11.7	200	9.4	(24.7)
l
Overseas	22	0.9		167.2		22	1.0		15	0.7	(32.3)
e
Sub total	2,462	2.1		1.7		2,270	2.2		2,115	2.0	(6.8)

3