For the period April 1, 2019 to June 30, 2019

FANCL Group Financial Results Briefing

July 30, 2019

Financial Highlights

Results by segment

Direct Store Inbound salesSales breakdown

Results by cosmetics brand

FANCL 15,811 +10.1% (Domestic:+11.0%, Overseas:+0.4%)

ATTENIR 3,126 +9.0%

boscia 397 -38.2%

Nutritional supplements 11,365 +3.1% (Domestic: +2.3%, Overseas: +19.9%）

(Unit: 100 million yen)

3©2019 FANCL CORPORATION All Rights Reserved

(Millions of yen)

Q1 of FY to March 2019

Q1 of FY to March 2020 Change YoY

Sales 30,799 32,544 ＋5.7％Cosmetics 18,054 19,528 ＋8.2％

Nutritional supplements 11,022 11,365 ＋3.1％

Other 1,722 1,650 (4.2％)HatsugaGenmai 520 479 (7.8％)

Kale Juice 636 581 (8.6％)Operating income 4,487 4,377 (2.5％)Ordinary income 4,543 4,382 (3.5％)Net income 3,160 2,609 (17.4％)

18 20 23 2640

33 35 3746

18/1Q 18/3Q 19/1Q 19/3Q 20/1Q

Q1 Analysis of change in Operating income

Advertisingcosts

Personnel costs

Other fixed costs

Othervariable

costs

Increase in gross profit

due to growth in sales

Improvementin cost-of-sales

ratio

Salespromotions

costs

Positive factors Negative factors

(Millions of yen)

4©2019 FANCL CORPORATION All Rights Reserved

Results

Q1 of FY to March 2019

Q1 of FY toMarch 2020

3204,487

4,377

195

1,245 394128

378330

Fixed costsVariable costs

5©2019 FANCL CORPORATION All Rights Reserved

*Existing customers who have made a purchase in the past 4 months(12-month moving average)

(Ref.) Existing customer trends (YoY)

2017 2018 2019

Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun.

FANCL Cosmetics

Online and

catalogue105% 103% 101％ 101％ 102％ 104％ 104％ 104％ 102% 99％

Direct store 102% 102% 101％ 100％ 100％ 101％ 105％ 110％ 113% 113％

Supplements

Online and

catalogue130% 123% 116％ 109％ 105％ 103％ 102％ 103％ 102％ 102％

Direct store 102% 103% 105％ 105％ 106％ 106％ 108％ 111％ 112％ 112％

Attenir 125% 125% 125％ 122％ 121％ 118％ 112％ 108％ 105％ 104％

Cosmetics Business

©2019 FANCL CORPORATION All Rights Reserved 7

FANCL Cosmetics

■The FANCL ■Beauty BOUQUET

・Gold BOUQUET brightening and aging care line performing strongly

・Developing Hair Care line as a second pillarLaunching first product in August

DEEP CLEAR WASHING POWDER Q1 sales poised to exceed plan

■AND MIRAILaunch: early April 2019 Price: ¥1,800 (excl. tax)

Q1 sales grew approx. double original plan

@cosme Word of mouth Ranking- 1st place in facewash powder categoryMAQUIA Best Cosmetics 2019 (first half) - Grand Prize in Affordable Skincare category VOCE 1st place in May 2019 facewash rankingBiteki Best Cosmetics 2019 (first half)- Beauty Experts’ Choice: 1st place in Affordable Skincare category

Planning 20% YoY increase in sales this FY

Strengthening position as strategic brand for inbound as well as domestic

Significant expansion in sales of core product

Skin Up Gel Cream

Price: ¥2,800 (excl. tax)

8

/Attenir boscia

Aging care line Attenir Dress lift Decline in sales at Sephora in North America, strong sales at newly introduced outlets

including Ulta, Amazon, etc.

Aiming for growth by successive introduction of new products

©2019 FANCL CORPORATION All Rights Reserved

Attenir Dress lift Lotion @cosme Best Cosmetics Awards 2019 (first half)

1st place in Best New Lotion category

Direct stores

Overseas (cross border e-commerce)

・Keio Department Store Shinjuku, Daimaru Kyoto,Daimaru Fukuoka Tenjin Branch

・Opening own flagship stores at T-mall, Red, Kaoladuring Q2

From March, expanded to full line-up(40 products) at 300 out of the 1,200 stores

Current situation at cosmetics speciality store Ulta

Mermaid Fire and Ice Cryosea Peel-Off Mask

Health Business

10

■ Nyosan Support (Uric Acid Support ) (Feb 18, 2019)

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Retention rate(online and catalogue sales)

NyosanSupportNaishi

Support

A Japan first! A Food with Function Claims Clinical tests show reduction in uric acid levels

~20s 30s 40s 50s 60s 70s 80+

Customers by age group

Star product development / BtoB business

■Collaboration with Nestle Japan

Delicious, easyeveryday healthy lifestyle support

Milk Type Latte Type

Launch: September 2019 Price: ¥398 (excl. tax)

Second collaborative project Launch of four stick-type drink products

11

China supplement business

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Sinopharm Dongfeng Hospital pharmacy

FY Mar/2019 FY Mar/2021～

Cross-border e-commerce (5 platforms including T-mall Global)

Retail business expansion

(domestic e-commerce, real stores)

Hospital pharmaciescounselling

Sales

Health management

service business

Acquire permissions to sell vitamins, minerals

Duty free stores

Hospital pharmacies

Functional supplements: Acquire sales licenses

NEW

NEW

FY Mar/2020 FY Mar/2023

Dalian Locomotive Hospital - Adjacent cafe Dailan downtown duty-free store

Brand and product PR

EC Mall advertising Video distribution

Social media

Channel

13

Online and Catalogue / Direct stores / Wholesale

Wholesale: Introduction of wholesale only supplements

Online and Catalogue: Launch of new member service

Store openings

©2019 FANCL CORPORATION All Rights Reserved

New

・Free shipping benefits・Increased points during birthday month

Recovery in sales, mainly from heavy users

Direct stores: Strengthened focus on store openings in high-quality facilities

・Apr. Daimaru Kobe・Jun. Urasoe PARCO CITY (Okinawa)・Jul. Atre Shinagawa ・Aug. Ginza Mitsukoshi, Iwataya Honten, etc.

Remodeling・Renewal coinciding with space expansion

Image of drugstore display

Expansion of superior 2nd shelf focusing on wholesale-only products

Strong demand from retailers, already on track to reach annual target of 8,000 stores

Easy 20-day trial packs A lineup that matches needs Easy-to-understand packaging

Average purchase unit price

April ‘18 April ‘19

+4.3%

Topshelf

2nd

shelf

Outlook for first half / full year

15

(Millions of yen)

H1 of FY ending March 2019

H1 of FY ending March 2020 Change YoY

Sales 60,288 65,200 ＋8.1％

Cosmetics 35,001 39,200 ＋12.0％

Nutritional supplements 21,977 22,900 ＋4.2％

Other 3,308 3,100 (6.3％)HatsugaGenmai 994 910 (8.5％)

Kale Juice 1,270 1,190 (6.4％)Operating income 7,082 7,450 ＋5.2％

Ordinary income 7,172 7,500 ＋4.6％

Net income 4,850 5,100 ＋5.2％

Sales breakdown

Results forecasts by cosmetics brand

FANCL 31,720 +14.9% (Domestic:+16.1%, Overseas:+3.5%)

ATTENIR 6,130 +8.5%

boscia 950 -32.6%

Nutritional supplements 22,900 +4.2% (Domestic: +3.2%, Overseas: +22.2%）

©2019 FANCL CORPORATION All Rights Reserved

Outlook for H1 of FY to March 2020

【Assumptions behind the plan】Inbound sales:8.2bn (The previous fiscalyear 7.3bn)

16

(Millions of yen)FY to March 2019 FY to March 2020 Change YoY

Sales 122,496 131,000 ＋6.9％

Cosmetics 71,599 78,450 ＋9.6％

Nutritional supplements 43,919 46,150 ＋5.1％

Other 6,977 6,400 (8.3％)HatsugaGenmai 2,037 1,850 (9.2％)

Kale Juice 2,622 2,450 (6.6％)Operating income 12,387 15,000 ＋21.1％

Ordinary income 12,348 15,100 ＋22.3％

Net income 8,649 10,200 ＋17.9％

Sales breakdown

Resultsforecasts by cosmetics brand

FANCL 62,140 +9.4% (Domestic:+9.7%, Overseas:+6.9%)

ATTENIR 12,730 +10.5%

boscia 2,780 +6.3%

Nutritional supplements 46,150 +5.1% (Domestic: +4.0%, Overseas: +23.7%）

©2019 FANCL CORPORATION All Rights Reserved

Full-year outlook to March 2020

【Assumptions behind the plan】Inbound sales:16.0bn (The previous fiscalyear 14.5bn)

17

12,387

15,000

376

6,065

1,269

©2019 FANCL CORPORATION All Rights Reserved

Full-year outlook: Analysis of change in operating income

Plan

Advertisingcosts

Personnel costs

Other fixed costs

Othervariable

costs

Increase in gross profit

due to growth in sales

Improvementin cost-of-sales

ratio

Salespromotions

costs

FY to March2019

FY to March2020

Fixed costsVariable costs

(Millions of yen)

Positive factors Negative factorsPositive factors Negative factors

666 1,010

1,509908

197493

VISION2030 -Make the world healthier and more beautiful-

©2019 FANCL CORPORATION All Rights Reserved 18

2nd Medium-Term Management Plan ACTION 2020 ~Creating the Future

ALL‐FANCL, ONE‐FANCL ~NEXT FANCL~Keyword: Let’s change it, let’s try it

A quarter in which we achieved greater earning power

■Became able to take the initiative to really grow our products‐ DEEP CLEAR WASHING POWDER became a hit product ‐ Naishi Support sales up 1.8x from previous quarter

■New-record quarterly inbound sales- Impact of misinformation on supplements offset by cosmetics- Aiming to demonstrate the comprehensive strengths of FANCL’s

integrated manufacturing and sales framework going forward