FANCL REPORT 2022

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01234Management39.932.7In ConclusionFY Mar/2016FY Mar/2017FY Mar/2018FY Mar/2019FY Mar/2020FY Mar/2021FY Mar/2022(Note)Applying “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29), etc., from FY Mar/2022.Sales for FY Mar/2016 to FY Mar/2021 are estimated values when the same standard is applied.Order of priorityOverseas sales12.1%Wholesale sales25.7%Direct store sales17.1%Sales by Sales ChannelFY Mar/2022Beauty SupplementsOnline and catalogue sales45.1%1940.030.020.010.0Age Bracket-Based SupplementsNutritional Supplements BusinessSales(¥ billion)50.0Aiming to Increase the Use of Supplements in Japan to 50%Overseas Business DevelopmentsIntroduction29.326.0Under “VISION2030,” FANCL raised the goal of increasing the ratio of routine health food (supplements) consumption in Japan from around 30% today to 50% by FY Mar/2031.In order to achieve this target, we must foster an awareness toward the importance of maintaining and promoting health before illness sets in. For this purpose, we must take the steps of ensuring that individuals experience the results of their efforts by “visualizing” their health and tracking their condition on an ongoing basis. We intend to go beyond our existing sales channels to deliver products that are easier to use and at locations that are more familiar to our customers as a means of realizing the routine use of supplements.In this respect, as a capital and business alliance partner, the Kirin Group possesses many functional components that meet the needs of society. And along with applying these components to our health foods, we also anticipate that merging the marketing know-how of both companies will give rise to new services in the future. Through collaborative ties with these kinds of companies, we will achieve a 50% usage rate for health foods (supplements), and realize extended healthy lifespans and reduced medical costs.Against the backdrop of a declining birthrate and aging population, China faces many health problems that must be addressed. This in turn leads us to believe that the importance of the Chinese market will only increase into the future.At present, “Age bracket-based supplements” account for the majority of sales. In light of market needs and our ProductTargetWomen (30s - 40s)Business Model39.937.838.4competitiveness, however, going forward we will make strategic marketing investments to develop the Chinese market upon first clarifying the order of priority for the products on which we will focus our energy.In order to address those needs as well as the communication approaches that are specific to China, we will also further reinforce collaborative ties with China Sinopharm International Corporation as our local distributor, increase the number of employees at our local subsidiaries, and work to establish a framework in which those in China will take the lead in promoting business. Based on this framework, the Japan-side will then provide its support.Health is not the ultimate goal. Instead, we believe that “being healthy” is an important foundation for achieving one’s dreams, goals, purpose in life, and the needs that are possessed by all of us. Therefore, we feel that realizing a healthy life is the noble cause of our business. Pursuing this noble cause will help to solve social problems like extending the healthy lifespans of people and reducing medical costs. Given the grand scale of this vision, however, we feel it is also extremely important to work and collaborate with other companies. Doing so will give rise to new contact points with our customers, and allow us to deploy new services that go beyond the framework of supplements. This business still possesses significant potential, and we have many ideas for new initiatives. Although our efforts may require time, we will steadily convert our ideas into businesses and undertake the challenge of establishing a health foods business that is unique to FANCL.Focus for developmentWomen (20s)Sustainability(35 - 45s)Data SectionGen ZCalolimit® SeriesUkon Kakumei EX