Unicharm Corporation · TSE:8113

Unicharm — H1 2017 Earnings Presentation

19 slides from Unicharm's earnings presentation, Aug 10, 2017

1. Slide 1: First Half of Fiscal Year Ending December 31, 2017 Financial Performance

   First Half of Fiscal Year Ending December 31, 2017 Financial Performance Unicharm Investor Meeting Presentation Materials August 10, 2017 Takahisa Takahara President and CEO Unicharm Corporation Projections stated in these materials include those based on the Company’s currently obtained assumptions

2. Slide 2: Financial performance summary

   1H of fiscal year ending December 31, 2017 Financial performance summary  Consolidated results (Sales and core operating profit increase)  301.9 billion JPY in sales, core operating profit of 38.9 billion JPY (6.6% profit growth, record-high profit)  Sales and core operating profit both reached t

3. Slide 3: First Half of Fiscal Year Ending December 31, 2017 Financial Performance Summary

   First Half of Fiscal Year Ending December 31, 2017 Financial Performance Summary Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

4. Slide 4: Consolidated account highlights

   1.5% sales increase, 6.6% core operating profit increase (Record high) Sales and profit goals reached for 1H forecast  Consolidated account highlights (Millions of yen) (Forecast) 1H of FY 1H of FY Difference １H of FY Achievement Ended Dec. Ending Dec. Difference Rate (%) Ending Dec. 31, 2016 31, 2

5. Slide 5: Core operating income fluctuation

   Active marketing investment in Asia contributed to sales volume increase, raw material cost fluctuation and others contributed to 2.4 billion JPY profit increase  Core operating income fluctuation (100 millions of yen) Selling and administrative Gross profit rate expense rate 0.8%P 1.5%P improvemen

6. Slide 6: Geographical segment information

   In Japan, Health Care business and Pet Care business drive performance In Asia, India, Vietnam and Taiwan greatly contributed to sales increase Profit decrease in Thailand due to distribution issues  Geographical segment information (Millions of yen) *1 1H of FY 1H of FY (Ref.) Difference Ended Dec

7. Slide 7: Core operating income margin by geographical segment

   In Japan, product mix improved with high value-added products In Asia, improvements mainly in India, active marketing investment in China and others, and slowdown of profitability improvement due to distribution issues in Thailand  Core operating income margin by geographical segment 25.0% *1 Japan

8. Slide 8: Business segment information

   In Pet Care business, improve profit due to shifting to high value-added products in North America. In Japan, also improve profit by increasing unit price based on high value- added products  Business segment information (Millions of yen) *1 1H of FY 1H of FY Difference Ended Dec. Ending Dec. Diffe

9. Slide 9: Overseas sales composition ratio 59.8%

   Overseas sales composition ratio 59.8% (59.9％ excluding exchange effects)  Japan / Overseas sales (Billions of yen) 500 65.6% 70% 63.3% 58.5% 59.3% 59.8% 400 60% 51.7% 50.3% 48.0% 44.1% 44.2% 50% 43.1% 43.0% 300 34.0% 37.2% 40% 200 30% 20% 100 10% 0 0% *1 *2 '11/1H '12/1H '13/1H '14/1H '15/1H '16/1

10. Slide 10: Effects of exchange fluctuations

    Effects of exchange fluctuations: Sales: Approx. 1.3 billion JPY decrease Core operating income: Approx. 300 million JPY increase  Rate fluctuations by currency Rate for 1H of Rate for 1H of Currency Rate Change FY ended Dec. 2016 FY ending Dec. 2017 China (CNY) 17.07 16.39 -4.0% Indonesia (IDR) 0.

11. Slide 11: Increasing Corporate Value

    Increasing Corporate Value Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

12. Slide 12: World first! Recycle technology for disposable diapers

    Environment World first! “Recycle technology for (E) disposable diapers” Patent acquired in Japan (Patent No. 6061875) Unicharm’s goal to create a recycling system Used Raw materials Materials Manufacturing Use disposable Recycling diapers (From hospitals and other facilities) High quality pulp Ozon

13. Slide 13: Initiatives for the Cohesive Society

    Society “Initiatives for the Cohesive Society” (S) Support programs that show the spirit of Unicharm Sponsorship of “Jintsu Taxi Project” Dementia Prevention Support  Moony provided as a “Maternity Gift” to Nihon Kotsu  “Social Walking”, a dementia-prevention program to interact with “society” wit

14. Slide 14: A company where each employee can work in good health and with purpose

    Governance We aim for a company where each employee can (G) work in good health and with purpose Previous initiatives with the objective of maintaining employee health and improving productivity  “Work-style reform development office” newly established to promote work-style reform on the theme of p

15. Slide 15: Shareholder Return Policy

    Shareholder Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.

16. Slide 16: Continued dividend increase in FY 2017 and total return ratio of 50%

    Continued dividend increase in FY 2017 and total return ratio of 50% scheduled through the purchase of own shares and dividends linked to business performance  Shareholder return policy (Millions of yen) Dividends Purchase of own shares Total return ratio 30,000 55.6% 60.0% 53.9% 53.2% 49.5% 51.4%

17. Slide 17: Stock buy-back acquisition graph

    Swiftly acquire stocks through buy-back based on cash conditions 14 billion JPY, 5,110,000 shares already acquired in the fiscal period ended on June 2017  Stock buy-back acquisition graph (100 millions of yen) 160 140 140 140 130 120 120 110 100 90 76 80 80 60 65 60 50 50 50 40 20 0 '06/3 '07/3 '0

18. Slide 18: Dividends per share

    Steady and continuous dividend payments On track for 16 consecutive periods of increased dividends  Dividends per share (JPY) 20.0 18.0 18.0 16.0 16.0 On track for 16 consecutive periods of 14.8 12.7 12.73 increased dividends in fiscal 2017 14.0 12.0 10.7 11.3 10.0 9.3 7.7 8.0 6.0 6.0 4.9 5.1 3.7 4

19. Slide 19: Copyright Corporation. All rights

    Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 19

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