Aderans GroupConsolidated Results for the Fiscal 2012

(March 1, 2011 ~ February 29, 2012)

This handout contains forward-looking statements that are based on management’s estimates, assumptions and projections at the time of presentation.

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.

April 12, 2012

Our corporate mission, as the Aderans Group,is to utilize our hair-related businesses

to help as many people as possible acquire the physical and emotional qualitiesthat underpin the realization of dreams and promote a good impression,

and in so doing, bring smiles to faces and support happy lives.

We strive for• Product excellence

• Technological excellence• Heartfelt omotenashi *

* A level of customer-oriented politeness and genuine warmth that makes customers feel welcome, valued and respected.

Management Philosophy

Target over the Next Three Years

The ultimate goal is to reverse the downward trend and return the

Company to a profitable structure capable of sustainable growth

1

Issues to Resolve over the Next Three Years

- Return to our roots as a wigmaker and implement a new business model• [Men’s market] Run Web-based advertising and apply business model appropriate

to the current business environment.• [Women’s market] Encourage salon visits through strengthened ad campaigns.• Strengthen R&D and accelerate new product development fine-tuned to

customers’ needs.• Prioritize customer requirements and enhance level of after-sales service.• Improve the technical capabilities and customer interaction skills of salon staff.

Domestic Business Recovery and Renewed Growth

- North America and Europe: Shift from business reorganization to revenue expansion mode

- Draft strategy for market introduction of ARI-developed product in fiscal 2015-Expand business in China•Steady salon network expansion.•Establish business model for the hair transplant business and secure profit through tie-ups with local medical institutions.

Overseas Business Expansion

2

Action Plans for the Next Three Years

• Redefine women’s brands: Ready-made Fontaine: Custom-made Ladies Aderans

• Rebuild customer-attracting (new customer) business at women’s salons.• Expand sales in department stores and directly operated salons through new products fine-

tuned to customers’ needs.• Apply new business models, such as online sales, and develop Web-based advertising.• Achieve growth through beauty salon sales route, medical-use wig business and new

marketing channels.• Review status of salons and as necessary consolidate locations to improve profitability.• Reach optimum balance between sales and expenses to ensure suitable level of profits in all

businesses.• Identify target customers and implement strategy to boost sales to these customers.

Domestic Business Recovery and Renewed Growth

Growth of Overseas Businesses• Centralize functions through establishment of regional headquarters —U.S., Europe and

China—and invest aggressively in growing markets• Promote brand consolidation in China and steadily develop a salon network that delivers

consistent profits• Expand business activities in Europe (including M&A opportunities)

3

FY2012 FY2013 FY2014

Encourage clients to visit salons regularly and expand base of repeat clients.

Survey customer needs and satisfaction level, and implement appropriate marketing activity based on the results.

Men’sMarket

All Domestic Operations

Test and develop light-emitting diode to promote hair growth.

Promote vigorous cost-cutting projects and keep tight control over profits and loss.

Integrate IT systems (domestic and overseas).

Develop more efficient advertising (Internet).

Conduct feasibility study on new business opportunities

Pursue advertising from an efficiency perspective.

Full-scale product launch and subsequent market assessment.

Implement new services in line with customer needs; enrich lineup of products available online at e-commerce site.

Roadmap of Basic Strategies for Domestic Operations

Continue developing high-quality products; improve after-sales services (techniques and customer welcome).

Implement voluntary retirement program.

4

Roadmap of Basic Strategies for Domestic Operations

FY2012 FY2013 FY2014

Boost sales to beauty and hairdressing salons.

Establish relationship of trust with medical institutions and raise corporate profile.

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 highlight customer-attracting products and services.

Enrich product lineup fine-tuned to market needs.

BusinessDevelopment

Women’s Market

Route Development

Medical-Use Wigs

Develop new sales channels and create new businesses.

Redefine women’s brand.

5

FY2012 FY2013 FY2014

Europe

North America

To enhance growth, assess entry into new hair market segments and channels.

Expand Bosley brand into international markets.

Prepare to establish European headquarters.

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

Integrate brands and products.

Strengthen fashion wig business, with focus on extensions market, potential M&As and selected sales channels.

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

Gradually begin operations in other countries with demand potential.

WorldwideDraft market entry strategy for ARI’s hair-regeneration technology.

Revitalize strength of Sentoo brand and product development capabilities.

Continuously improve cost structure to enhance profitability.

Continuously improve cost structure and performance metrics to enhance profitability.

Strengthen medical-use wig business, with focus on new sales channels and presence inside hospitals.

Prepare for market entry.

Roadmap of Basic Strategies for Overseas Operations

Increase revenues from Bosley-brand products.

Review capital allocation policy and cost structure.

Improve operations to increase profitability and enhance customer service and retention.

Bosley

AHG

All

Women

6

FY2012 FY2013 FY2014

Rest of Asia

China

Steadily expand the salon network while ensuring profitability.

Promote fashion wig retailing operations in Taiwan and Singapore.

Develop custom-made wig business using existing salon model.

Selectively invest in approaches to raise the profile of the Aderans brand.

Close unprofitable shopsConsolidate products under Aderans brand

Embrace one-stop shop concept emphasizing ready-made wigs to meet the needs of all customers.

Explore potential of Bosley business in China.

Establish cross-selling opportunities (referral) with potential wig customers and Bosley patients.

Roadmap of Basic Strategies for Overseas Operations

Women

Men

Bosley

Women

7

Consolidated Results(March 1, 2011 to February 29, 2012)

Summary of Consolidated Results for Fiscal 2012

8

• Feared adverse affect from the Great East Japan Earthquake, recruitment for early-retirement program and floods in Thailand, but domestic businesses put the brakes on the downward trend in sales and achieved a slight increase.

• Domestic sales rose 0.7%, as sales from Fontaine Business (women’s market) grew 2.0% year-on-year and offset slight decrease–just 0.4%—in sales from Aderans Business (men’s market).

• Discounting impact of exchange rates, overseas operations also achieved year-on-year improvement in business results.

• On the cost front, expenses ¥6 billion less than expected and significantly lower than the level in fiscal 2011, thanks to successful measures to make more efficient use of advertising budget and recruit employees to early retirement program, which trimmed advertising and personnel costs, respectively, along with thorough reassessment of other selling, general and administrative expenses.

• We are building new IT systems. The business management information and accounting and distribution system will go online.

・Bottom line in the black for first time in four years.

・Return to operating income position after three years of losses.

Major Developments

9

• Aggressively developed television commercials highlighting product features that appeal to women • Launched HaiRepro, a system using narrow-band light-emitting diodes to encourage hair growth• Welcomed favorable sales through online channels• Offered support to survivors of the Great East Japan Earthquake• Accelerated openings of salons inside hospitals (seven salons as of February 29, 2012)• Development of business presence in China (seven wig shops and one Bosley office as of December 31, 2011)• Aderans Research Institute marked steady progress in hair regeneration research (U.S. Federal Drug Administration Phase 2 trials)

• Reversal of allowance for business structure improvement: ¥463 million• Reversal of allowance for bonuses: ¥270 million• Gain on sales of fixed assets: ¥144 million• Gains on insurance claims : ¥235 million

Extraordinary income

¥1,310 millionOperating income

• Losses on sales of fixed assets: ¥841 million• Asset retirement obligations: ¥307 million• Impairment loss : ¥1,058 million

Extraordinary expenses

¥2,753 million

Year-on-year change:Improved ¥24,340 million

Net income¥1,134 million

• The Company has achieved consolidated operating income for five consecutive quarters, beginning in the fourth quarter of fiscal 2011.

• The Company returned to the black on a full-year basis for the first time since fiscal 2009, three years ago.

Year-on-year change:Up ¥8,410 million

Operating income

¥2,531 million

• Advertising expenses: Down ¥3,730 million (39.1%)• Personnel costs: Down ¥2,150 million (12.4%)•Other SGA expenses: Down ¥2,530 million (14.3%)

Year-on-year change:Down ¥8,430 million

(18.8%)

SGA expenses¥36,330million

• In domestic operations, sales were brisk, down ¥230 million, or 0.7%. Sales to men were down ¥30 million, or 0.4%, and sales to women were up ¥430 million, or 2.0%.

• Translated into yen, sales from overseas operations fell ¥1.09 billion, due to yen appreciation. If the drop in sales due to store closures is considered, sales from overseas operations actually increased.

• If such factors as the impact of exchange rates are disregarded, overseas operations actually delivered higher sales.

Year-on-year change:Down ¥740 million (1.6%)

Net sales¥47,422million

Summary of Consolidated Results for the Fiscal 2012

10

-

-

-

-

-

-

-

-

-

-

100

-

-

-

-

47,200

Mid-termManagement

Plan(as of August 25)

--2.9%32111,49511,174Cash Balance

-

-

-

400

-

-

-

1,600

3.8%

1,800

-

-

-

-

47,300

Fiscal 2012Forecast

(as of July 14)

-

-27.6%

-41.9%

-

-

-77.2%

-7.6%

-

-

-

-18.8%

-0.0%

-1.2points

-7.9%

-1.6%

YOYchange

(%)

7,894

-520

-901

24,347

18,088

-9,332

-108

8,864

-

8,414

-8,430

-15

-

-734

-749

YOY change

(¥)

-18.1%19.3%Cost of sales ratio

-1,3101,418Extraordinary income

FY2011 FY2012Change

(vs. forecast)(as of January 12)

Net sales 48,171 47,422 100.3%

Cost of sales 9,294 8,560 -

Gross profit 38,877 38,862 -

SGA expenses 44,760 36,330 -

Operating income/loss -5,883 2,531 140.6%Operating income

ratio - 5.3% 1.5points

Ordinary income/loss -6,317 2,547 159.2%

Extraordinary loss 12,085 2,753 -

Income before taxes -16,984 1,104 -

Net income/loss -23,213 1,134 283.5%

Capital expenditures 2,150 1,249 -Depreciation/ Amortization 1,882 1,362 -

EBITDA -4,001 3,893 -

Consolidated Results for the Fiscal 2012(Millions of yen, %)

11

-19.2%

-7.6%

-10.4

-18.3

-12.4

-39.1

-18.8

YOYchange (%)

-475

-340

-932

-1,607

-2,158

-3,735

-8,430

YOY change (¥)

--4,1604,500Consolidated basisNumber of

Employees Domestic basis

93.38,5848,0148,946Others

--2,0032,478

104.514,64515,29917,457Personnel costs

92.87,7557,1938,800Salon-related expenses

FY2011 FY2012Fiscal 2012

Forecast

Change(vs.

forecast)(%)

SGA Expenses (Total) 44,760 36,330 37,997 95.6

Advertising expenses 9,557 5,822 7,013 83.0

Key SGA Components

（Millions of yen, %）

12

-3.7%-992,6022,701Business Development Business

-21.4%-58213271Other Operations

0.7%23734,35034,113Domestic operations total

-

-8.7％

-5.7％

2.0％

-0.4％

-1.6%

YOYchange (%)

-4

-492

-490

430

-38

-749

YOY change (¥)

21,84821,418Fontaine Business

Net Sales FY2011 FY2012

Consolidated net sales 48,171 47,422

Aderans Business 9,723 9,685

Bosley Business 8,549 8,059

Overseas Wig Business 5,656 5,164

Other, consolidated adjustments -147 -151

--2-130-128Other Operations

-

-

-

657

1,823

-7,917

496

5,110

4,264

2,531

FY2012

-

-

-

295

7,884

2,277

799

1,946

2,864

8,414

YOY change (¥)

-

-

-

362

-6,061

-10,194

-303

3,164

1,400

-5,883

FY2011

-Adjustments

-Overseas operations total

81.5Bosley Business

-Business Development Business

-Companywide expenses

-Other Operations

61.5%Fontaine Business

Operating IncomeYOY

change (%)

Consolidated operating income -

Aderans Business 204.6%

Domestic operations total -

（Millions of yen, %）

Results for Each Reporting Segment

13

Summary of Consolidated Balance Sheets

Main causes of increase/decrease

YOY(Million of yen)

Composition(%)

Amount(Million of yen)

Composition(%)

Amount(Million of yen)

As of February 28, 2011 As of February 29, 2012

Current Assets 19,669 49.7 20,390 57.1 721

(Cash and deposits) 11,174 28.3 11,495 32.2 321

Fixed assets 19,876 50.3 15,306 42.9 -4,570

(Tangible fixed assets) 11,930 30.2 8,725 24.4 -3,204 Sale of own building

(Intangible fixed assets) 3,336 8.4 2,661 7.5 -675

Total assets 39,546 100.0 35,697 100.0 -3,849

Current liabilities 10,189 25.8 6,467 18.1 -3,722

(Allowance for business structure improvement ) 3,400 8.6 0 0 -3,400 Mainly special retirement

payments

Fixed liabilities 3,884 9.8 3,068 8.6 -816

Employees’ severance and retirement benefits: -¥1,500 millionAsset retirement obligations: ¥1 billion

Total liabilities 14,073 35.6 9,535 26.7 -4,538

Total net assets 25,472 64.4 26,161 73.3 689

Net assets per share (yen) 692.02 - 710.33 - 18.3114

-

-

-

437.5

-13.1

-2.2

-9.6

-3.5

YOYchange (%)

6,619

1,557

9.2 points

1,155

-1,400

-245

-211

-456

YOY change (¥)

FY2011Fourth Quarter only

FY2012Fourth Quarter only

Net sales 13,166 12,710Cost of sales 2,204 1,993Gross profit 10,962 10,717SGA expenses 10,698 9,298Operating income/loss 264 1,419

Operating income ratio 2.0% 11.2%Ordinary income/loss -20 1,537Net income/loss -5,488 1,131

Consolidated Results for Fiscal 2012 (Fourth Quarter Only)

（Millions of yen, %）

15

* “Fourth Quarter Only” results are derived by subtracting aggregate three-quarter results from aggregate four-quarter results.

-9.9

-24.3

-14.9

2.9

-13.1

YOYchange (%)

-237

-566

-644

48

-1,400

YOY change (¥)

2,1502,387Others

3,6924,336Personnel costs

1,7562,322Salon-related expenses

FY2011Fourth

Quarter only

FY2012Fourth

Quarter only

SGA expenses (Total) 10,698 9,298

Advertising expenses 1,652 1,700

Key SGA Components (Fourth Quarter Only)

（Millions of yen, %）

16

* “Fourth Quarter Only” results are derived by subtracting aggregate three-quarter results from aggregate four-quarter results.

48,171 47,422

Year-on-Year Change (Millions of yen)

Overseas Wigs -¥492 million

Consolidated Net Sales for Fiscal 2012

Aderans

MHR closures

Fontaine

Foreign exchange difference

Other

Bosley-¥490 million

Foreign exchange difference

17

Decrease insales

FY2011 FY2012

-38 -669-769

-328430

948 -164 -99 -62

Business Development Business

Increase insales

2,531

-5,883

Consolidated Operating Income for Fiscal 2012

Gross profit

Other

Advertising expenses

Personnel costs

Salon-related expenses

18

-15

932

3,735

SGA expenses

2,158

1,607

Year-on-Year Change (Millions of yen)

FY2011 FY2012

-316

130

-1,556

-3,522

-2,791

-1,725 -1,631

263485 416

211

1,419

-4,000

-3,000

-2,000

-1,000

0

1,000

FY10.1Q FY10.2Q FY10.3Q FY10.4Q FY11.1Q FY11.2Q FY11.3Q FY11.4Q FY12.1Q FY12.2Q FY12.3Q FY12.4Q

（Millions of yen）

Changes in Quarterly Consolidated Operating Income (Loss)

19

• The Company posted consolidated operating income for five consecutive quarters, from the fourth quarter of fiscal 2011 straight through all four quarters of fiscal 2012.• The Company moved into the operating black on a full-year basis in fiscal 2012, marking an end to three years of losses that began in fiscal 2009.

Results for Each Reporting Segment

721

9,002

686

-3-35

8,999

New clients Repeat clients9,6859,723

New clients Repeat clients

Aderans Business (Men’s Market)

Aderans Business: Sales for Fiscal 2012

20

Year-on-Year Change (First Three Quarters)• Down ¥38 million (or 0.4%).• Sales to new customers down 4.9% over corresponding period a year ago.• Sales to repeat customers slipped slightly, as the impact of floods in Thailand offset favorable interest in the flat-fee AHC and

regular custom-made wigs.

Year-on-Year Sales(Millions of yen)

FY2011 FY2012

0

2,500

5,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

AHC New AHC Repeat Purchased New Purchased Repeat

FY2010 FY2011 FY2012

Aderans Business: Key Business Indicators

Custom-Made Wig Order Volume

(Number of contracts)

21

Aderans Business (Men’s Market)

3,788

9,849

7,781

4,553

9,493

-356765217,802

Salon - New Salon - Repeat Dept Stores, etc.

Fontaine Business: Sales for Fiscal 2012

21,418 21,848

Fontaine Business (Women’s Market)Note: Products for sale at salons are mainly custom-made wigs (FONTAINE by Ladies’ Aderans), and those for department stores and directly operated salons are mainly ready-made wigs (FONTAINE).

Department store and directly operated

salon sales

Sales to new salon clients

Sales to repeat salon

clients

Salon sales

¥409 million

22

Year-on-Year Change• Sales up ¥430 million, or 2.0%.• Huge increase—20.2%—in sales to new salon customers reflects solid effort to embrace a more customer-appealing service format. • Sales at department stores and directly operated salons held steady, edging up 0.3%, despite a decrease in the number of salons in

operation.

Year-on-Year Sales(Millions of yen)

FY2011 FY2012

0

2,000

4,000

6,000

8,000

10,000

12,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Salon - New Salon - Repeat

Fontaine Business: Key Business Indicators

FY2010 FY2011 FY2012

(Number of contracts) Women’s Custom-Made Wig Order Volume

23

Fontaine Business (Women’s Market) Number of contacts: Custom-made wigs (FONTAINE by Ladies’ Aderans)

7,111

8,0597,799

750

948-669669

-769MHR Bosley

Hair-Transplant Business

Bosley Business: Sales for the Fiscal 2012

Foreign exchange difference($8 million)

¥8,549($97.9m)

24

Exchange Rates:FY2011 US$1 = ¥87.31FY2012 US$1 = ¥79.46Year-on-Year Change

• Exchange rate difference caused by yen appreciation reduced yen amount by¥769 million. • Closure of MHR clinics in fiscal 2011 eroded sales potential (¥669 million). • Bosley posted an increase of ¥948 million, or 13.3%.

Year-on-Year Sales (Millions of yen)

FY2011 FY2012 Full year excludingexchange rate difference

MHR closures*excluding foreign

exchange difference

Increase in sales by Bosley

¥7,780($97.9million)

($89million)

($8.4million)

($89.4million)

($101.4million)

-100

-50

0

50

100

150

200

250

300

FY11.1Q FY11.2Q FY11.3Q FY11.4Q FY12.1Q FY12.2Q FY12.3Q FY12.4Q

-4

-2

0

2

4

6

8

10

12Operating Income/Loss Operating Income Ratio(%)

Hair-Transplant Business

(Millions of yen)

Bosley Business: Changes in Quarterly Operating Income

Year-on-Year Changes• Operating income up $4.1 million

(about ¥320 million)Factor Analysis•Gross profit on sales: Up $4.2 million• Personnel costs: Down $1.8 million

Note: Quarterly performances in local currency are translated into yen at a rate of US$1 = ¥79.46

25

・Profitability is improving significantly, and Bosley has achieved operating income for seven consecutive quarters.・The operating income ratio showed dramatic improvement, rising from 4.2% in fiscal 2011 to 8.2% in fiscal 2012.

35 35 56

3,1833,075 3,068

2,0402,438 2,218

-7

-178 21-3285,656

5,164

(€27.6m)

North American wig businessEuropean

wig business

China

ChinaNorth America Europe

Overseas Wig Business: Sales for Fiscal 2012

Foreign exchange difference

26

Sales Results• 8.7% drop in sales (down ¥490 million) • Yen appreciation fueled foreign exchange difference, consuming ¥320 million). Real drop in sales was 3.1%. • Aside from North America, with its 8.0% drop in sales, demand was brisk. Europe showed a 0.2% dip but China delivered a 60% increase.

Exchange Rates:FY2011 US$1 = ¥87.31 €1 = ¥115.09 Chinese yuan 1 = ¥12.9FY2012 US$1 = ¥79.46 €1 = ¥111.20 Chinese yuan 1 = ¥12.31

Year-on-Year Sales (Millions of yen)

FY2011 FY2012Full year excludingexchange rate difference

($27.9m)

(€27.6m)

($27.9m) ($25.6m)

(€27.5m)

5,328

88

-56-33

111

13 -8 -19

-101

19

10050

28

17 45 66 61

-14

-14 -60

-24 -28-34 -32

-16FY11.1Q FY11.2Q FY11.3Q FY11.4Q FY12..1Q FY12.2Q FY12.3Q FY12.4Q

North America Europe China(Millions of yen)

Overseas Wig Business: Changes in Quarterly Operating Income

• With the exception of China, where the Aderans Group established a foothold only last year, a stable profit base has been achieved in North America and Europe through the implementation of measures, such as corporate integration, to make the execution of business more efficient.

27

93 31

-43

115

23

15

Note: Quarterly performances in local currency are translated into yen at a rate of US$1 = ¥79.46, €1 = ¥112.20 and Chinese yuan 1 = ¥12.31.

-56

Fiscal 2013Business Plan

Strategies for Domestic Operations

28

Objective: Strengthen corporate structure with a foundation to support sustainable business growth

1．Raise the level of stable profitability

2. Aggressively invest in identified growth opportunities

Strategies for Domestic Operations

Aderans Business（Men’s Aderans and Ladies’ Aderans)

29

1．Develop new products

2．Expand number of new clients

3．Retain existing customers

Strategies for Domestic Operations

◆Ready-made wigs offered through department store corners and directly operated salons

Fontaine Business

30

◆Beauty supply route

1．Stronger ties to department stores

2．Develop new products

3. Expand marketing channels

Rebuild beauty supply route business

Medical-Use Wig Business

Build stronger bonds of trust with patients and medical institutions

Strategies for Overseas Business

31

Establish business models that foster sustainable profits and promote steady expansion

Achieve growth in both the hair-transplant and wig businesses by building steady demand for the Bosley brand in North America and developing a higher profile overseas, and by strengthening existing wig brands and adding celebrity-endorsed brands to the lineup.

Aim for steady growth, especially in the market for medical-use wigs, which is expected to offer stable growth opportunities.

Work quickly to implement successful business models for the wig and hair-transplant businesses and thereby capitalize on high market growth potential.

North America

Europe

China

Fiscal 2013 Consolidated Business Forecast

1,000

2,100

2,000

50,000

Full Year

1,300

1,850

1,800

27,000

Second Half

1,134

2,547

2,531

47,422

Full Year

1,454

1,734

1,630

24,340

Second Half YOYAmountFirst HalfFirst Half

-11.8%

-17.6%

-21.0%

5.4%

-134

-447

-531

2,578

YOY ChangeFY2012 (Actual) FY2013 (Forecast)

Net sales 23,082 23,000Operating income/loss 901 200Ordinary income/loss 813 250Net income/loss -320 -300

(Millions of yen, %)

32

Reference Materials

2,379 2,457 2,210 2,687 2,250 2,576 2,353 2,505

5,308 4,577 5,2786,255

5,425 4,787 5,3736,263

715341

818

745

607 398824

773

1,307

1,3861,268

1,367

1,2831,331

1,244

1,305

2,015

1,9112,0322,101

1,9771,774

1,8632,166

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

FY11.１Q FY11.2Q FY.3Q FY11.4Q FY12.1Q FY12.2Q FY12.3Q FY12.4Q

Aderans Fontaine Business Development Bosley Overseas Wig(Millions of yen)

Changes in Quarterly Sales by Reporting Segment

• The amounts presented in the bar graphs below will not necessarily match consolidated net sales. • Net sales for Bosley and the overseas wig business (in North America, Europe and China) have been converted from

local-currency amounts at stated exchange rates of US$1 = ¥79.46, €1 = ¥111.20 and Chinese yuan 1 = ¥12.31.

34

-316

130

-2,791

-1,725 -1,630

264485 416

211

1,419

-1,556

-3,522-4,000

-3,000

-2,000

-1,000

0

1,000

2,0001Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Operating income Sales

FY2010 FY2011 FY2012

(Millions of yen) (Millions of yen)

Changes in Quarterly Consolidated Net Sales and Operating Income (Loss)

35

268 249 212 176 213 174 160 174 174 159 177 177

2,5673,086

1,8922,209 2,166 2,283

2,0402,513

2,0762,417 2,176 2,328

0

1,000

2,000

3,000

4,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

New Clients Repeat Clients

FY2010 FY2011 FY2012

Change in Aderans Sales

(Millions of yen)

36*The above amounts are operating totals not settlement data.

Aderans Business (Men’s Market)

1,6991,097 1,491 1,389 905 573 933 1,377 1,183 790 1,040 1,540

3,2143,551

2,105 2,3712,486

2,509 2,3062,548 2,447

2,385 2,2762,385

1,8161,420

1,8522,055

1,9171,495

2,039

2,3301,795

1,6122,057

2,338

0

4,000

8,000

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

Salon - New Salon - Repeat Dept Stores, etc.

FY2010 FY2011 FY2012

Change in Fontaine Sales

(Millions of yen)

37*The above amounts are operating totals not settlement data.

Fontaine Business (Women’s Market)Note: Products for sale at salons are mainly custom-made wigs (FONTAINE by Ladies’ Aderans), and those for department stores and directly operated salons are mainly ready-made wigs (FONTAINE).

Change in the Number of Salons

828

18 142025

142137143

180194206

0

50

100

150

200

250

Feb. 28, 2010 Feb. 28, 2011 Feb. 29, 2012

Men's salons Ladies' salonsCombined men's and ledies' salons Department stores and directly operated salons

Total：392 Total：379 Total：344

38

Size of Hair Care Market

150,000 145,500 139,000 133,400 133,000 133,000 133,100 133,200 133,300 133,500

6,550 6,600 6,750 5,700 4,800 4,500 4,250 4,000 3,750 3,500

53,000 55,300 58,500 61,700 63,600 65,000 66,100 67,100 67,900 68,400

227,007 226,560 224,800 227,500 227,400 226,400 226,100 225,500 224,600 223,900

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

2007 2008 2009 2010 2011F 2012F 2013F 2014F 2015F 2016F

Hair Hair transplants Hair growth/restoration Haircare

39

(Millions of yen)

Source: Yano Research Institute Ltd. “Hair Care Industry 2012” market report overview

Size of Hair Market

102,000 98,000 92,000 90,300 91,000

48,000 47,50047,000 43,100 42,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2007 2008 2009 2010 2011F

Wigs and other hair-volumizing products Sales of products and services

By Product Category

81,000 79,300 75,500 71,700 70,000

69,000 66,200 63,500 61,700 63,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2007 2008 2009 2010 2011F

Men Women

40

(Millions of yen) (Millions of yen)

By Gender

Source: Yano Research Institute Ltd. “Hair Care Industry 2012” market report overview