Medium-term Management Plan(From March 2010 to February 2013)

•This handout contains forward-looking statements that are based on management’s estimates, assumptions and projections at the time of presentation.•The performance forecasts and other information described in these financial statements do not include possible impact from the strategic capital and business alliance or related transactions that may or may not subsequently occur.•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.

June 10, 2010Aderans Holdings Co., Ltd.

Overseas PresenceEuropeEuropeFrance

GermanyBelgium

NetherlandsUnited Kingdom

Sweden

Overseas PresenceAsiaAsia

TaiwanSouth Korea

ChinaThailand

PhilippinesSingaporeMalaysia

Global Brand Development by the Aderans Group

Overseas PresenceNorth AmericaNorth America

United StatesCanadaMexico

Hair TransplantsHair Transplants

WigsWigsJapan

1

EuropeEurope

AsiaAsia United States

Status of the Aderans Group

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 10.2-50

0

50

100

150

200Net sales Operating income

Fontaine joins the Group

Changes in Consolidated Net Sales and Operating Income for the Aderans Group100 millions of yen

20th anniversary

Samson joins the Group

MHR joins the Group

Sweden-based Carl M Lundhjoins the Group

2

Years ended February 28 or 29

U.S.-based Bosley joins the Group

30th anniversary

U.K.-based Trend Hair Supplies joins the Group

Long-running decrease in number of new clients and significant downturn in market share, due to insufficient content and failure in marketing strategies, including competitive strategy.

Main Causes of Prolonged Sluggish PerformanceSince the Fiscal Year Ended February 2002

1

Sales to repeat clients deviated considerably from internally established business practices, a repercussion of prolonged sluggish performance, and caused a decrease in the number of clients.

2

Decreased investment in core business and decentralization of management resources, due to misguided investment in non-core operations.3

Despite prolonged sluggish performance, absence of reform plan to improve management efficiency.4

Lack of appropriate management for overseas business activities, and extended period of sluggish performance. 5

3

Return to core operations and disposal of non-core operations and associated assets

1. Identify and address problem areas in Domestic Core Business(Analyze the business structure that has underpinned operations for 40 years and shift toward a business model designed to boost profits.)

Management Reform Plan （Effective June 2009 to February 2010）

4

(1) Enhance marketing strategy• Create a marketing structure.• Pinpoint client needs through comprehensive market research andimplement new marketing strategy.

(2) Correct deviation from established in-house practices for sales to repeat clients.

(3) Disposition of non-core operations and non-core assets.

i. Disposition of unprofitable businessesGolf business and beauty and hairdressing salon business.

ii. Disposal of unprofitable non-core assetsFocus on marketable securities, golf club membership and real estate.

Management Reform Plan (From March 2010 to February 2011)

5

Make Group management more transparent and enhance management efficiency

1. Action plan to improve domestic core business

(1) Integrate operations through a three-company merger—scheduled for September 1, 2010— that is designed to eliminate duplicate functions, accelerate decision-making processes and make the structure of executive responsibility more transparent. (approved)

(2) Change company name. (approved)(3) Relocate head office—in May—to facilitate the creation of a global

headquarters and make three-company merger as effective as possible. (completed)

(4) Continue to introduce new marketing approaches.(5) Develop new-concept salon network, remodel existing salons and maintain

the scrap-and-build process to create an efficient, streamlined salon network.(6) Promote company-wide cost cutting projects.(7) Integrate and improve IT system.(8) Introduce a new personnel evaluation process and a stock option system.

Management Reform Plan (From March 2010 to February 2011)

2. 問題海外事業の改革・改善

6

2. Restructure and improve unprofitable overseas business

(1) Businesses in North America• Bring all head offices in North America under one roof by relocating the Group’s New York head office, Bosley’s hair-transplant business, and local wig companies into the new Bosley head office. (partially completed)Hair-Transplant Business• Merge Bosley and MHR. (completed)• Shift call center operations overseas. (completed)• Dispose of unprofitable operations. (completed)Wig Business• Merge five wig companies into one company (Aderans Hairgoods, Inc.) (completed)• Reorganize and consolidate headquarters and warehouses. (completed)

(2) Asia, excluding Japan and China• Improve profitability at Aderans brand outlets in Taiwan, South Korea and Thailand.

(1) Eliminate excess, cut back-office costs through three-company integration.

(2) Trim costs through head office relocation, along with reassignment of personnel from back-office divisions to marketing divisions.

(3) Enhance efficiency and cut costs by establishing optimal structure for production and distribution.

(4) Reduce costs through centralized purchasing system.(5) Integrate and improve IT systems.

Priority Management Reforms in Fiscal 2011 (June 2010 to February 2011)

7

Implement thorough, companywide cost-cutting projects

Embrace new management philosophy and pursue new vision and performance targets.

Management Philosophy, Vision and Targets

By offering clients high-quality products and services based on advanced technological capabilities,

we will strive to become the world’s No.1 provider of total hair solutions with a reputation for reliability and putting smiles on the faces of customers.

We go beyond the realm of national borders.We transcend the boundaries of gender and generation.

We remain a group, imbued with a universal spirit and providing products and services matched to the many hair-related needs of our clients.

These ideas underpin our development as the Unihair Group.

Universal Truth, Only for You. Unihair Group

Management Philosophy

Vision

8

0

200

400

600

800

1,000

1,200

1,400

1,600

Fiscal 2011 Fiscal 2012 Fiscal 2013 Fiscal 2015 Fiscal 2017

Domestic Overseas

Performance Targets for the Group

Net sales at ¥100 billion

Net sales at ¥150 billion

Return to the black in fiscal

2012

Net salesat ¥70 billion

Ratio of operating

income to net sales at 8%

Enhance management transparency and improve management efficiency

Selectively invest in growth fields and growth markets

Strengthen market powerthrough M&A

100 millions of yen

9

The Next Three Years(Fiscal 2011 to Fiscal 2013)March 1, 2010 through February 29, 2012

Issues Requiring Resolution over the Next Three Years

- Shift from suboptimization to total optimization.• Integrate Aderans Holdings, Aderans and Fontaine.• Transform the corporate culture and atmosphere and promote personal awareness of

corporate issues.- Achieve a thorough improvement in management efficiency. - Strengthen brand power with continued application of new marketing strategy.

Restructure domestic operations and return the segment to growth status

- Shift from suboptimization to total optimization.• Create supervisory function for overseas operations.• Execute business realignment in each region.

- Aderans for men： Halt the dwindling number of clients - Fontaine for women: Consolidate global ladies’ brands without duplication- Bosley for the hair-transplant business: Promote Bosley in Japan, China and Europe

Establish global integrated brand strategy

Restructure overseas operations and return the segment to growth status

10

・Establish regional headquarters structure to centralize functions and aggressively invest in growth markets.

・In China, resourcefully promote global integrated brands and boost sales through active expansion of salon network.

・Undertake in-depth review of unprofitable operations in Asia and realign operations accordingly.

Steps to Address Issues Requiring Resolution over the Next Three Years (1)

・Open new corporate chapter as Unihair Co., Ltd.・Integrate business structure and personnel evaluation systems. ・Undertake employee training and business management from a global perspective. ・Boost productivity through personnel reassignments. ・Apply a scrap-and-build approach to salons, depending on performance contributions, and

foster higher profitability・Promote business improvement to raise productivity and enhance efficiency.・Develop new businesses, with an emphasis on the beauty and hairdressing salon route,

medical-use wigs, and the women’s market, specifically girls—‘tweens and teenagers—and women in their 20s, who are particularly fashion-conscious.

Restructure domestic operations and return the segment to growth status

Restructure overseas operations and return the segment to growth status

11

Establish global integrated brand strategy

Steps to Address Issues Requiring Resolution over the Next Three Years (2)

Aderans for men

Fontaine for women

Bosley for the hair-transplant business

Aderans Research Institute (Hair-regeneration technique)

12

・Halt the dwindling number of clients by promoting products and services at flat rates and increase the domestic client base・Verify success of new business model for men’s market (one-stop solution services) and apply it worldwide.

・Enrich product selection to facilitate access to range of wigs, from ready-made to custom-made, throughout the salon network・Enrich product lineup based on market needs. ・Execute effective advertising campaigns to improve the Fontaine brand image and have it permeate the market.・Consolidate women’s brands worldwide without duplication and expand investment in markets around the world with growth potential.

・Verify success of new business model for men’s market (one-stop solution services) and apply it worldwide.

・Draft market entry strategy.

Fiscal 2011 Fiscal 2012 Fiscal 2013

Roadmap of Basic Strategies for Domestic Operations

Halt the dwindling number of clients by promoting products and services at flat rates.

Expand client base in the medium term through flat rate options and maintain stable profits.

Explore the potential of total hair services highlighting Bosley’s hair-transplant techniques and develop this business.

Promote business by reinforcing joint activities with affiliated clinics.

Bring faltering performances to an end and return to profitability through the merger of Aderans and Fontaine into Aderans Holdings.

Boost productivity through personnel reassignments.

Promote business improvement to raise productivity and enhance efficiency.

Selectively invest in promising areas of the domestic women’s market as well as new marketing channels to attract more interest from women.

Apply a scrap-and-build approach to salons, depending on performance contributions, and foster higher profitability.

Aderans and Bosley

(For men’s market)

All domestic operations

13

Roadmap of Basic Strategies for Domestic Operations

Fiscal 2011 Fiscal 2012 Fiscal 2013

Boost sales to beauty and hairdressing salons.

Boost sales of ladies’ wigs for medical use.

Boost sales to girls—‘tweens and teenagers—and women in their 20s, who are particularly fashion-conscious.

Enrich product selection to facilitate access to range of wigs, from ready-made to custom-made, throughout the salon network.

Execute effective advertising campaigns to improve the Fontaine brand image and have it permeate the market.

Enrich product lineup based on market needs.

New Businesses

Fontaine(For women’s

market)

14

Roadmap of Basic Strategies for Overseas Operations

Fiscal 2011 Fiscal 2012 Fiscal 2013

Promote fashion wig retailing operations.

Market research

Europe

North America

Improve profitability through consolidation of U.S. companies under one roof and organizational restructuring.June

Integrate brands.

Promote one-stop solutions hinging on the Bosley brand.

Explore potential of business presence in South America.

Start business activitiesin South America.

Prepare to establish European headquarters.

Establish European headquarters, which will centralize functions and strengthen marketing capabilities.

Undertake market research and prepare for the start

of Bosley business.Launch activities in key markets, starting with Sweden.

Integrate brands and products.

Promote fashion wig retailing operations.

Consider entry into markets, where the Group has yet to establish a presence.

Gradually begin operations in other countries with demand potential.

Worldwide Draft market entry strategy for ARI’s hair-regeneration technique15

Men

Women

Men

Women

Roadmap of Basic Strategies for Overseas Operations

Fiscal 2011 Fiscal 2012 Fiscal 2013

Asia

China

July onward

Prepare for the start of services.

Begin services.

Execute thorough review of business to bring swift return to profitability.

Explore possibility of turning Bosley into a viable business in South Korea.

Explore potential of Bosley business in China.

Withdraw from markets where the potential for a return to profitability is unlikely.

September

Promote fashion wig retailing operations in Taiwan and Singapore.

16

Prepare and establish Chinese headquarters.

Raise the curtain on the ladies’ fashion wig business with the opening of a flagship salon.

Men

Women

Men

Women

Expand sales through aggressive salon development (more than 90 locations during three years of management plan).

Group Net Sales (Fiscal 2010 to Fiscal 2013)

383 397437

472

125 124122

12934 3541

52

4714

45

0

100

200

300

400

500

600

700

800Japan North America Europe Asia

Fiscal 2010 (actual)

Fiscal 2011 Fiscal 2012 Fiscal 2013

By Region

¥54.7billion

※excluding withdrawn

business

¥56.0billion

109 105 108 110

336 355404

460

102 100

102

130

0

100

200

300

400

500

600

700

800 Hair Transplants (Bosley)Women (Fontaine)Men (Adedrans)

By Brand100 millions of yen

17

100 millions of yen

¥61.4billion

¥70.0 billion

¥54.7billion

※excluding withdrawn

business

¥56.0billion

¥61.4billion

¥70.0 billion

Fiscal 2010 (actual)

Fiscal 2011 Fiscal 2012 Fiscal 2013

Group Operating Income and EBITDA (Fiscal 2010 to Fiscal 2013)

-53

-29

6

56

-29

-3

38

84

-60

-40

-20

0

20

40

60

80

100

Fiscal 2010(actual) Fiscal 2011 Fiscal 2012 Fiscal 2013

Operating income EBITDA

100 millions of yen Operating income and EBITDA

18

Group Numerical Targets (Fiscal 2010 to Fiscal 2013)

Fiscal 2010(actual)

Fiscal 2011 Fiscal 2012 Fiscal 2013

Sales 547 560 614 700

Operating Income -53 -29 6 56

（％） -10％ -5％ 1％ 8％

EBITDA -29 -1 38 84

（％） -5％ 0％ 6％ 12％

ROE - - 1％ 8％

19

※excluding withdrawn business

100 millions of yen

Reference Materials

475 480 480475

470 469 470 470

49 56 6666

67 69 70 72

352356 357 358 359

65 98 111131 146 165 161

925921

918920980

1,0201,010

1,005

349351352

12

Trend in the Hair Market

2005 2006 2007 2008 2009 2010F 2011F 2012F

1,893 1,962 2,013 1,984 1,944 1,959 1,983 1,987

Trend in the Hair Market

Average annual growth （％）

Hair-growth agents used by doctors （44.9％）

Over-the-counter hair-growth agents （0.3％）

Hair transplants （5.7％）

Healthy hair growth services（-0.2％）

Wigs and other hair-volumizingproducts （-1.2％）

Wigs27％

Healthy hair growth services

29％Hair transplants6％

Over-the-counter hair-growth agents

28％

Hair-growth agents used by doctors

10％

Market Composition (Men) in 2008（Size of men’s market: ¥107.3 billion）

20Source: Yano Research Institute Ltd.

100 millions of yen

Market Composition (Women) in 2008（Size of women’s market: ¥91.1 billion）

Wigs76％

Over-the-counter hair-growth agents

6％Healthy hair growth services

18％

Domestic Net SalesFontaine for Women’s Market and Growth in New Businesses

109 110

244308

30

54

0

100

200

300

400

500

Fiscal 2010(actual) Fiscal 2013

New business (Beauty and medical route)

Fontaine for Women

Aderans for Men

383

472

21

+1

+64

+24

100 millions of yen