Results of Operations for the Fiscal Year Ended March 31, 2021 

May 13, 2021Masaya Saito, Vice President 

Highlights of FY3/2021 Summary

Sales decreased due to the global spread of COVID‐19, but ordinary profit and profit reached record highs

Japan Sales and profits decreased due to factors including a resurgence in 

COVID‐19 infections and the establishment of a mask‐wearing culture Subsidiaries contributed to totals sales and profits Demand from foreign tourists visiting Japan was sluggish, but e‐commerce 

sales were firm

Lower overseas sales; higher profits in Europe and the U.S. Firm sales in Indonesia, Taiwan and Vietnam; lower sales and profits in 

China and Hong Kong Despite lower sales in Europe and the U.S., profits increased due to  

efficient use of selling, general, and administrative expenses

Dividend increase for the 17th consecutive year and dividend per share of ¥28

2

FY3/2021Results of Operations

FY3/2021 Share of net sales (%) FY3/2020 YoY change 

(Amount)YoY change 

(%)

Net sales 181,287 100.0 188,327 △7,040 △3.7

Cost of sales 74,561 74,087 474 0.6Cost of sales rate 41.1 39.3SG&A expenses 83,736 46.2 91,154 △7,418 △8.1

Promotional expense 

20,228 11.2 23,533 △3,305 △14.0

Advertisement 20,297 11.2 24,394 △4,097 △16.8R&D Exp 7,903 4.4 7,050 852 12.1Others 35,307 19.5 36,175 △868 △2.4

Operating income 22,990 12.7 23,085 △95 △0.4Ordinary income 23,910 13.2 22,735 1,175 5.2

Profit attributable to owners of parent 16,743 9.2 15,410 1,332 8.6

3

(Millions of yen, rounded down)

Exchange Rate：〔US＄／Yen〕＝105.96

Sales are Driving Earnings Growth!

4

Cost of sales

Sales promotion expenses 

Advertising expenses

R&D expenses

Other SG&A expenses

FY3/2021Operating income

FY3/2020Operating income

(Millions of yen)

Five‐year Financial Summary

5

Net sales Operating income ＲＯＥ

5-year average growth rate: 1.9%

Operating margin

12.7％5-year average

9.4％億円 億円

％

Quarterly sales trends

6

Quarterly Operating Income  trends

7

8

Operating CF Investing CF Financing CF

Cash Flows

Positive Free Cash Flow Sustained While Making Medium and Long‐term Investments

(Millions of yen)Net increase (decrease) in cash and cash equivalents

‐‐‐

‐‐

‐

‐

‐

‐

FY3/2021 Sales by Reportable Segment

9

(Millions of yen, rounded down)

AmountShare ofnet sales

(%)Amount

Share ofnet sales

(%)Amount

Share ofnet sales

(%)

YoY change(Amount)

YoY change(%)

183,582 100.0 188,327 100.0 181,287 100.0 △ 7,040 △ 3.7

112,166 61.1 115,767 61.5 115,629 63.8 △ 138 △ 0.1

51,664 28.1 52,971 28.1 48,056 26.5 △ 4,915 △ 9.3

9,293 5.1 9,121 4.8 7,687 4.2 △ 1,434 △ 15.7

8,555 4.7 8,740 4.6 8,149 4.5 △ 590 △ 6.8

181,679 186,601 179,522 △ 7,078 △ 3.8

1,903 1.0 1,726 0.9 1,764 1.0 38 2.2

* Net sales indicate sales to customers.

FY3/2019 FY3/2020 ＦＹ3/2021

Net sales

105.96

Reportable

segment

Japan

Asia

America

Europe

Total

Others

Exchange rate(Yen/USD)

110.48 109.05

FY3/2021 Operating Income  by Reportable Segment

10

(Millions of yen, rounded down)

AmountComposition

ratioAmount

Compositionratio

AmountComposition

ratioYoY change

(Amount)YoY change

(%)

20,812 100.0 23,085 100.0 22,990 100.0 △ 95 △ 0.4

13,181 63.3 14,852 64.3 14,656 63.8 △ 195 △ 1.3

6,497 31.2 7,220 31.3 6,926 30.1 △ 294 △ 4.1

286 1.4 283 1.2 458 2.0 174 61.5

352 1.7 217 0.9 375 1.6 157 72.6

20,317 22,573 22,416 △ 157 △ 0.7

163 0.8 142 0.6 118 0.5 △ 24 △ 17.0

Adjustment 330 1.6 369 1.6 455 2.0 85 23.2

105.96

Others

Exchange rate(Yen/USD) 110.48 109.05

Japan

Asia

America

Europe

Total

Reportable

segment

FY3/2019 FY3/2020 ＦＹ/2021

Operating income

Japan: Lower Sales and Profits Sales of sunscreens, lip 

balm and contact lens products fell 

Strong sales of trending products, such as “Deoco” and “Melano CC”

Nitten Pharmaceutical and Qualitech Pharma contributed to total sales and profits

Demand from foreign tourists in Japan decreased

11

(Billions of yen)140

120

100

80

60

40

20

96.9105.2

112.2 115.8 115.6

Rohto Other

FY3/2019 FY3/2020 FY3/2021FY3/2017 FY3/2018

89.6 96.9 104.4 106.5 97.6

Healthcare Related Sales

12

Monthly Non‐consolidated Sales(Millions of yen)

Strong sales of major new productsＤＥＯＣＯ

MelanoＣＣ Rohto V5 Grain

13

Ｗａｋａｎｓｅｎ

Inbound Sales about 1.2 Billion Yen

14

Sales to foreign tourists in Japan decreased because of COVID‐19

Sales to foreign tourists in Japan

3.6Billion Yen⇒ 2.8Billion Yen⇒ 1.2Billion Yen

Strong e‐commerce sales tocustomers outside Japan

Lower Sales and Profits in Asia

15

billion yen53.051.7

47.441.9

48.1

Sharp decrease in sales in China and Hong Kong, which are main sources of sales and profits

Higher sales in Indonesia, Vietnam and Taiwan Indonesia  Up 17% YoY (up 22% YoY)  Fiscal‐year end: December

Vietnam  Up 2% YoY (up 5% YoY)  Fiscal‐year end: December

Taiwan  Up 2% YoY  (down 1% YoY)  Fiscal‐year end: February

China  Down 17% YoY  (down 15% YoY)  Fiscal‐year end: December

Hong Kong  Down 10% YoY (down 9% YoY)  Fiscal‐year end: February

Malaysia  Down 6% YoY  (down  2% YoY)  Fiscal‐year end: February

(  ): Local currency basis

16

Sales: ¥ 48,056 million, down 9.3% YoYOperating profit: ¥ 6,926 million, down 4.1% YoY

Lower Sales and Profits in Asia

America, Europe and OthersAmerica

17

Sales: ¥7,687 million, down 15.7% YoYOperating profit: ¥458 million, up 61.5% YoY

Sales of eye drops, lip balm and other products fell because people refrained from going out

Higher profits due to efficient use of adverting expenses

Europe Sales: ¥8,149 million, down 6.8% YoYOperating profit: ¥375 million, up 72.6% YoY

Sales of cosmetics down because of lower sales at Dax Cosmetics, the major component of these sales

Higher profit due to efficient use of sales promotion and advertising expenses

18

Outlook for FY3/2022 

19

May 13, 2021Kunio Yamada, Chairman and President Masashi Sugimoto, President and COO

Highlights of FY3/2022 Forecast Sales are recovering, mainly in Japan and Asia, despite the 

continuing effects of COVID‐19 Forecast lower sales in FY3/2022 due to the start of 

applying the new accounting standard for revenue recognition, but forecast effective sales growth of 5.4% after adjusting for the new standard

Measures for sustained medium and long‐term growthMake core businesses stronger/Benefits of business reformsActivities involving regenerative medicine and prescription 

ophthalmology drugsActivities to reflect market conditions in the age of the “new 

normal” Forecast the 18th consecutive dividend increase

20

FY3/2022 Forecast

21

105.96109.05 108

(Millions of yen, rounded down)

FY3/2020Share of net

sales (%)FY3/2021

Share of netsales (%)

FY3/2022Share of net

sales (%)YoY change(Amount)

YoY change(%)

Net sales 188,327 100.0 181,287 100.0 182,000 100.0 － －

SG&Aexpenses 23,085 12.3 22,990 12.7 23,100 12.7 109 0.5

Operatingincome 22,735 12.1 23,910 13.2 23,900 13.1 △ 11 △0

Ordinary income 15,410 8.2 16,743 9.2 17,100 9.4 356 2.1

Profitattributable to

owners of parent135.13 146.78 149.91

the start of applying the new accounting standard for revenue recognition

Forecast lower sales in FY3/2022 due to the start of applying the new accounting standard for revenue recognition, but forecast effective sales growth of 5.4% after adjusting for the new standard

22

(Millions of yen, rounded down)

FY3/2021Share of net

sales (%)FY3/2021　thenew standard

Share of netsales (%)

FY3/2022Share of net

sales (%)YoY change(Amount)

YoY change(%)

Net sales 181,287 100.0 172,643 100.0 182,000 100.0 9,356 5.4

SG&Aexpenses 22,990 12.7 23,893 13.3 23,100 12.7 126 0.6

Operatingincome 23,910 13.2 16,726 13.8 23,900 13.1 6 0.0

Ordinary income 16,743 9.2 16,743 9.7 17,100 9.4 373 2.2

Profitattributable to

owners of parent146.78 146.78 149.91

FY3/2022 Sales Forecast by Reportable Segment

23

(Millions of yen, rounded down)

金額 構成比 金額 構成比 金額 構成比 増減額 増減率

188,327 100.0 181,287 100.0 182,000 100.0 － －

115,767 61.5 115,629 63.8 111,300 61.2 － －

106,948 106,985 111,300 61.2 4,314 4.0

52,971 28.1 48,056 26.5 51,800 28.5 3,743 7.8

9,121 4.8 7,687 4.2 8,200 4.5 512 6.7

8,740 4.6 8,149 4.5 8,800 4.8 650 8.0

186,601 179,522 180,100 577 0.3

1,726 0.9 1,764 4.0 1,900 1.0 134 7.7

* Net sales indicate sales to customers.

FY3/2022 Forecast

Net sales

Japannew standard

FY3/2020 FY3/21

Japan

Asia

Reportable

segment

Others

109.05 105.96

America

Europe

Total

108.00Exchange rate

(Yen/USD)

FY3/2022 Operating Income Forecast by Reportable Segment

24

(Millions of yen, rounded down)

AmountComposition

ratioAmount

Compositionratio

AmountComposition

ratioYoY change

(Amount)YoY change

(%)

23,085 100.0 22,990 100.0 23,100 100.0 109 0.5

14,852 64.3 14,656 63.8 14,300 62.0 △ 357 △ 2.4

7,220 31.3 6,926 30.1 7,600 32.9 673 9.7

283 1.2 458 2.0 400 1.7 △ 58 △ 12.7

217 0.9 375 1.6 300 1.3 △ 75 △ 20.0

22,573 22,416 22,600 183 0.8

142 0.6 118 0.5 100 0.4 △ 18 △ 15.5

Adjustment 369 1.6 453 2.0 400 1.6 △ 55

FY3/2021 FY3/2022Forcast

Europe

Total

FY3/2020

105.96

Operating income

Reportable

segment

Japan

Asia

America

108.00

Others

Exchange rate(Yen/USD) 109.05

Outlook and Measures for Sustained Medium and Long‐term Growth

25

Connect for Well‐beingBecome the leader in the OTC categorySkin care domains Functional food 

products

Prescription drugsRegenerative medicineOphthalmology domain

Development of new drags/medical equipment

26

Skin care

OTC drugs

CDMO

Prescription ophthalmology 

domain

Regene‐rative

Medicine

Functionalfood 

products

“Connecting businesses to create new energy”

Contract development and manufacturing (CDMO)

Core businesses

Core peripheral businesses

Beyondcore business

Become the Leader in the OTC Category

Make core businesses strongerMore value‐added OTC drug products in the eye care, Chinese herbal 

medicine and skin care categories Reinforce business process reforms and make reforms self‐sustaining Upgrade and expand production equipment

Construction of a “smart” factory  Growth in other countries 

– Grow even faster in Asia

Skin care domain20th anniversary of the Obagi series of skin care products

Increase activities for developing functional food products

27

Make Core Businesses Stronger Reinforce business process reforms and make reforms self‐

sustaining Increase the share of products that are manufactured internally

• Use improvements in manufacturing efficiency for more internal production

Proper level of inventories Effective use of  SG&A expenses

Upgrade and Expand Production EquipmentConstruction of a “smart” factory 

28

Energy sources

Renewable energy Energy‐efficient equipment

Geothermal energy Solar energyEfficient HVAC/gas/electric equipment

Overseas Operations – Recovery of the Chinese Market Even as the impact of the COVID‐19 pandemic declines, many 

people are still likely to wear masks. Sunscreen sales are strong as the number of people limiting their outings due to the pandemic decreases.

Increasing share of e‐commerce sales Expect the EC sales ratio in China to increase from 35% to 40% in 

FY3/2022

Sales platforms have been established on major e‐commerce websites

Measures for e‐commerce sales growth• More digital communication and promotions• Collaboration with influencers• Use YouTube and TikTok

for distributing videos

29

Obagi 20th Anniversary Base Prescription Reform

30

【obagi sales】(Millions of yen)

Develop Functional Food ProductsStrengthen sales of functional food productsDevelop new ingredientsLactic acid bacteria, innovative ingredients (Collaplus, Oligomil)

Expansion to cover more business domainsEye care, products for children, skin care, others (dementia, women’s nutrition and more)

31

Aggressive R & D

32

百万円(Millions of yen)

Prescription Drug Activities

Regenerative medicineAcquired OLYMPUS‐RMS CORP. (Interstem Co., Ltd.)

Add the field of orthopedics to accelerate the establishment of the regenerative medicine business

A clinical trial is underway for cartilage loss in knee joints

Prescription ophthalmology drugsStarted early phase 2 trial in Japan for ROH‐201, a Janus kinase inhibitorPurpose is to evaluate efficacy for treating dry eye and safety

Signed joint R&D agreement with a biotech start‐up company

33

2019 2020 2021 2022 2023 2024Products

Adipose MSC

Liver cirrhosis

Heart failure

Kidney disease

Limb ischemia

Pulmonary fibrosis

Bone&joint disease

Umbilical  cord MSC

NeurologicaldisorderCultured Chondrocyte ImplantationKit

Traumatic cartilagedefect

Arthrosis deformansof TMJ

Clinical studies

Clinical studies

Clinical studies

Clinical studiesPre‐

studies

Pre‐Clinical studies

Clinical studies

Clinical studies

Clinical studies

Ｄｅｖｅｌｏｐｍｅｎｔ Ｐｉｐｅｌｉｎｅ

Pre‐Clinical studies

Pre‐Clinical studies

P Cli i lstudies

Pre‐Clinical studies

Pre‐Clinical studiesPre‐

studies

Pre‐Clinical studies

Growth of Development and Production for Other CompaniesContract development/manufacturing at subsidiary QualitechPharma Co., Ltd.

Five consecutive years of sales growth since FY3/2017 The outsourced development of drug active ingredients has been increasing in recent years 

and is expected to continue to grow.

→ Qualitech Pharma plans to strengthen its development capabilitiesAdvancing from a CMO to a CDMO business. Plan to establish a laboratory.

35

Qualitech Pharma Kakegawa factory

Billions of yen

Sales

15

8.7

5

9.0 9.310.4

12.3 12.4

10

FY3/2016 FY3/2017 FY3/2018 FY3/2019 FY3/2020 FY3/2021

Impact of COVID‐19 and Rohto’s Responses to This Crisis

36

Respond to Changes in Consumer Behavior

Responses to changes in people’s behavior More products for the e‐commerce category

Strengthen sales using e‐commerce channels

Stronger pre‐symptomatic and prevention initiatives Enlarge the lineup of Chinese herbal medicines and 

functional food products

Activities reflecting more diverse values and new needs of consumers Reinforce marketing strategies Activities for Digital Transformation

Place priority on health management

37

A source of even better products and information as a healthcare company able to help people stay healthy

SKIO

Forecast the 18th Consecutive Dividend Increase

38

円

２８

３０

39

Advance to a New Stage of Growth

Connectfor 

Well‐being

Connectfor 

Well‐being

Make Core Businesses StrongerMeasures for sustained growth

Respond to Changes in Consumer Behavior

Regenerative medicine/prescription drug activities  Start and expand operations in emerging countries

Reinforce business process reforms and make reforms self‐sustaining

Upgrade and expand production equipment

40

PrecautionsThe plans, strategies, and financial forecasts presented in these materials contain forward‐looking statements not based on historical fact. Forward‐looking statements are based on management judgments using information available at the time. Actual results may vary significantly from forecasts due to changes in various factors.