YA-MAN LTD.mw2pemthym.bizmw.com/wordpress/wp-content/uploads/...orders while Acetino Cerby, Facercise UP, and other established products sold steadily Overseas, others 243 1.3％ 196

Financial Highlights for FY4/12

First Section

Ryoichi Kunimoto, Executive Officer, Deputy General Manager of the Administration Division and General Manager of the Finance Department

YA-MAN LTD.Results of Operations for FY4/12(Fiscal year ended April 30, 2012)

June 15, 2012

Copyright © YA-MAN LTD. All Rights Reserved.

First Section: Financial Highlights for FY4/12

Financial Highlights

FY4/12Results

YoY change

Net sales20,490

SG&A expenses

10,661

Operating income1,811

Ordinary income1,783

Net income1,035

+822（+4.2％）

+470（+4.6％）

+86（+5.0％）

+83（+4.9％）

+94（+10.0％）

Major components

Increased due mainly to strong sales from the Only Minerals line of cosmetics, no!no!hair series of hair removal devices, and Acetino Cerbyslimming device.

Advertising expenses increased ¥415 million because of extensive TV commercials and magazine ads to support brand strategies.

Gross profit up ¥556 million along with sales growth but operating income up ¥86 million due to higher SG&A expenses of ¥470 million resulting from growth in advertising expenses.

Increased ¥83 million due mainly to higher operating income.

Increased ¥94 million due mainly to higher ordinary income.

Performance vs. prior year(Millions of yen)

1


FY4/11 FY4/12Remarks

Amount Composition ratio Amount Composition

ratio

Wholesale

Mail-order sales 6,589 33.5％ 6,977 34.1％

Functional apparel accessories on TV shopping channels sold strongly, while sales also grew for the slimming device Acetino Cerby and the no!no! hair! series of hair removal devices through terrestrial TV and mail-order magazines

Store sales 7,050 35.8％ 6,163 30.1％ Sales of Only Minerals grew after

aggressive promotion in famous women’s magazines

Direct sales 5,785 29.4％ 7,153 34.9％ Only Minerals was bolstered by repeat

orders while Acetino Cerby, Facercise UP, and other established products sold steadily

Overseas, others 243 1.3％ 196 0.9％ Preparations to start operations in China

Total 19,668 100.0％ 20,490 100.0％

Sales by Distribution Channel

Sales soared in wholesale mail-order and direct sales categories

2


(Millions of yen)



Sales by Product Category

Sales rose for wellness appliances, cosmetics, and other product ranges

FY4/11 FY4/12Remarks

Amount Composition ratio Amount Composition

ratio

Beauty care appliances 11,464 58.3％ 10,281 50.2％

Acetino Cerby grew through wholesale mail-order and no!no!hair sales also grew steadily

Wellness appliances and fitness devices

1,682 8.6％ 2,778 13.6％ The direct sales category performed well

Cosmetics and variety goods 4,927 25.0％ 4,937 24.1％

Only Minerals sold well in department stores and variety shops, and repeat purchases in the direct sales category also contributed

Others 1,594 8.1％ 2,493 12.2％

In the apparel and others category, functional footwear and slimming apparel for TV shopping channels sold well

Total 19,668 100.0％ 20,490 100.0％

4


(Millions of yen)


+822

1,724

-324 +59-470

1,811

+86

Components of Change in Operating Income

Grew ¥86 million due to rising sales despite increase in SG&A expenses from advertising

5


Positive effect of

higher sales

Positive effect of

lower cost of sales ratio

Higher cost of sales due

to sales growth

Negative effect of

higher SG&A expenses

(Millions of yen)

FY4/11 FY4/12


Consolidated Balance Sheets

End of FY4/11 End of FY4/12

Cash and deposits 3,119 2,779

Notes and accounts receivable-trade 3,127 3,339

Inventories 3,863 3,301

Other assets 1,271 1,414

Total assets 11,381 10,833

Notes and accounts payable-trade 1,348 1,081

Bonds and loans payable 2,296 1,353

Other liabilities 2,032 1,874

Total liabilities 5,677 4,309

Total net assets 5,703 6,524

Total liabilities and net assets 11,381 10,833

Repayment of interest-bearing debt

Strengthened financial base by reducing interest-bearing debt using operating cash flow as capital

Decrease in inventories

Reduction in interest-bearing debt

6


(Millions of yen)


Consolidated Cash Flows

FY4/12 Remarks

Net cash provided by (used in) operating activities 952

Booking of net income Decrease in inventories

Net cash provided by (used in) investing activities -116 Purchase of intangible assets, primarily

software

Net cash provided by (used in) financing activities -1,174 Reduction in interest-bearing debt

Effect of exchange rate change on cash and cash equivalents -0

Net increase (decrease) in cash and cash equivalents -339

Cash and cash equivalents at beginning of period 2,524

Cash and cash equivalents at end of period 2,184

Repaid interest-bearing debt with capital from operating cash flow boosted mainly by reducing inventories

7


(Millions of yen)


Earnings Forecasts for FY4/13

FY4/12 FY4/13 (fct.)Amount Composition

ratio YoY Amount Composition ratio YoY

Net sales 20,490 100.0 +4.2％ 22,540 100.0 +10.0％

Operating income 1,811 8.8 +5.0％ 2,128 9.4 +17.5％

Ordinary income 1,783 8.7 +4.9％ 2,075 9.2 +16.4％

Net income 1,035 5.1 +10.0％ 1,167 5.2 +12.7％

Dividend per share (yen) 36 - - 36 - -

Payout ratio 20.3％ - - 18.0% - -

Aiming to establish a high-quality brand image through strategic advertising expenditures and a system capable of expanding sales in the mid- to long-term while relaunching no!no! hair, Only Minerals, and other series and expanding new lineups including slimming and hair care products.

8


(Millions of yen)

Business Highlights and Initiatives for the “Challenge 300”

Medium-term Management Plan

Second Section

YA-MAN LTD.Results of Operations for FY4/12(Fiscal year ended April 30, 2012)

June 15, 2012

Kimiyo Yamazaki, President and Representative Director


History

1978 Company established

1985 Developed the Body Fat Scale

1998 Started wholesale distribution of products directly to mail-order companies

2001 Started wholesale distribution of products directly to home appliance stores

2007 Started a direct sales business using infomercials

2009 Shares listed on the JASDAQ Securities Exchange

2011 Shares listed on the Second Section of the Tokyo Stock Exchange

2012 Shares listed on the First Section of the Tokyo Stock Exchange

2009

(1) History : The pioneer in using professional beauty care expertise to create beauty care appliances for consumers

Second Section: Business Highlights and Initiatives for the “Challenge 300” Medium-term Management Plan

Launched sales of “Platinum Germa Roller”

Launched sales of “Only Minerals”

Launched sales of “no!no!hair”

2008

2007

YA-MAN – The professional-grade esthetic products company

Launched sales of “Uruoi Station” 2011

Dedicated 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


(1) History : Strengths of the YA-MAN Business Model

InfoProduct development

Ideas for new products

Direct sales

Store salesMail-order

sales

Follow-up Counseling

Feedback

Cosmetics and variety

goods

YA-MAN – The professional-grade esthetic products company

Become the de facto standard in the beauty and health care industry

Accurately targets customers’ needsMany patented technologiesEsthetique salon equipment expertise

Excellence in manufacturing

A diverse lineup of beauty care products

One-stop beauty

Activities cover all major distribution channels

Sales capabilities

Call center Face-to-face sales at stores

Confidence

Beauty care

appliances

Wellness appliancesFitness devices



(2) Market : Beauty Care Appliance Industry Market

Beauty care appliance market

Excerpted from “Dangers and new business opportunities from beauty care appliances” released by the Nomura Research Institute, Ltd. (NRI) at the 151st NRI Media Form

Market worth around ¥120 billion in 2010; projected to exceed ¥150 billion in 2013

FaceH

airW

hole body

Market exceeded ¥10 billion for each area of high-performance dryers, hair removal devices, and moisturizing steamers

Deals with eyelashes, eyebrows, and downy facial hair

Emits jets of ions and steam

Removes excess hair with razors and lasers

Removes make-up and clogged pores to reduce pore visibility

Removes impurities and massages scalp with an electric hairbrush and water jets

Ultrasound helps tighten up the entire body

Handy ultrasound and ion product for moisturizing the skin

Helps tighten face lines with ultrasound and rollers

Helps set hair, whether curly or straight

Electric nail files removes excess skin and corns, leaving skin smooth

Eyelash, eyebrow and downy facial hair care

Hair removal devices (for women)

High-performance dryers

Moisturizing facial care devices

Tightening/slimming

Cuticle care

Hair irons

Cleansing/follicle care

Tightening/slimming

Scalp care

：Market size of more than ¥10 billion

Floor-standing product moisturizes hair and skin with ions and mist

Moisturizing steamers ¥15 billion

¥8 billion

¥8 billion

¥6.7 billion

¥2.8 billion

¥41 billion

¥7.2 billion

¥2.2 billion

¥25 billion

¥4 billion

¥2 billion

：Market size of ¥5 billion to ¥10 billion

：Market size of less than ¥5 billion

Source: Estimates from NRI “Internet survey concerning beauty care appliances and childcare services” (November 2010) and Fuji Keizai Co., Ltd. “Cosmetics Marketing Overview”



(2) Market : Cosmetic Market

Sales trends

Driving sales as a market leader

Note: Shipment data according to March-2011 Survey of Fuji Keizai Co., Ltd.

5,000

4,000

3,000

2,000

1,000


(Millions of yen)


(3) Medium-term Management Plan : Key Points

Market scale Net sales of ¥30 billion within 3 years

Profit Ordinary income ratio of 10%

Preparing for the next stage Overseas development

Medical care devices

Sales structure by channel



Cosmetics

(3) Medium-term Management Plan : Product Lineup

Face

Moisturizing steamers Moisturizing facial care devices Cleansing/follicle care

Eyelash, eyebrow and downy facial hair care Tightening/slimming

Hair

High-performance dryers Hair irons Scalp care

Whole body

Hair removal devices (for women) Cuticle care Tightening/slimming



(3) Medium-term Management Plan : Progress Report

FY4/07

Mail-order sales

Store sales

FY4/12

Sales structure by channel

Direct sales

FY4/08

Ｗ

ＤＲ

Support cardsWRD cycle

Store sales

Mail-order sales

Direct sales

Store sales

Mail-order sales



(3) Medium-term Management Plan : Preparing for the Next Step

Participated in Cosmoprof Asia in November 2011 Acquired FDA recognition in February 2012

Promoting YA-MAN as skin beauty specialist with image characters

Collaborative planning with leading companies

Overseas strategy Medical device sector

Brand strategy Brand strategy



Thank you for attending today’s presentation.

YA-MAN LTD. Finance Department,

Administration Division

Contact

TEL

E-mail

+81 (0) 3-5665-7330

[email protected]

This presentation material was prepared for the purpose of providing information about the Company to investors and is notintended as a solicitation for an investment.

Forward-looking statements in this presentation material are based on targets and forecasts and are not assurances orguarantees concerning performance in the future. Investors should be aware that actual results of operations may differ fromthe Company’s current forecasts.

Statements concerning the industry and market of beauty and health care appliances and other related subjects are based ondata that the Company believes are reliable. However, the Company does not guarantee that this information is accurate orcomplete.

This presentation material 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 of anyof these decisions.

Documents

YA-MAN LTD.mw2pemthym.bizmw.com/wordpress/wp-content/uploads/...orders while Acetino Cerby, Facercise UP, and other established products sold steadily Overseas, others 243 1.3％ 196