Unicharm Corporation · TSE:8113
Unicharm — Q1 2025 Earnings Presentation
76 slides from Unicharm's earnings presentation, May 9, 2025
Slide 1: First Quarter of Fiscal Year Ending December 31, 2025
First Quarter of Fiscal Year Ending December 31, 2025 (Jan 1, 2025 to Mar 31, 2025） Unicharm Investor Meeting Presentation Materials May 9, 2025 Unicharm Corporation Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 1
Slide 2: Financial Performance Summary
First Quarter of Fiscal Year Ending December 31, 2025 (January 1 to March 31) Financial Performance Summary Projections stated in these materials include those based on the Company’s currently obtained assumptions, forecasts and plans regarding the future. Therefore, actual results may differ signif
Slide 3: Financial Results Summary
First Quarter (Q1) of Fiscal Year Ending December 31, 2025 (FY2025) ~January 1 to March 31~ Financial Results Summary Sales 227.5-billion yen (YoY -3.7%) Consolidated Core Operating Profit 29-billion yen (YoY -22.7%) ⚫ Reactionary impact on the previous year's record-high sales and core operating pr
Slide 4: Consolidated account highlights
Reduction in sales and profit due to a reactionary impact on the previous year which has hit the record-high results through the penetration and expansion of value-shifting. Quarterly profit attributable to the owners of parent company increased significantly. （Unit: 100 million yen） ⚫ Consolidated
Slide 5: Sales trend and core operating income trend (quarterly)
Sales in Q1 (Jan-Mar) were consistent and strong, excluding the reactionary impact on high-level of performance in the previous year. Core operating profit is expected to rebound from Q2 onward due to the strategic marketing investments carried out in Asia. ⚫ Sales trend (quarterly) ⚫ Core operating
Slide 6: Core operating income fluctuation
Operating profit dropped due to such factors as an increase in strategic marketing investments and a reactionary impact on the previous year's strong performance. Effects of these investments are expected to appear in Q2 and onward. （Unit: 100 million yen） ⚫ Core operating income fluctuation (from J
Slide 7: Geographical segment information
In Japan, we managed to achieve record-breaking sales as well as a high-level of core operating margin due to the penetration and expansion of value-shifting. In Asia, China was impacted by the repeated negative publicity while India moved as planned and Vietnam was showing a recovery. In other regi
Slide 8: Core operating income margin by geographical segment
Continued to penetrate and expand the value-shifting in Japan and other regions for achieving a high- level of profitability. While the profitability in Asia will temporarily decline due to the impact of strategic marketing investments, it is expected to recover in Q2 and onward ⚫Core operating inco
Slide 9: Sales ratio of overseas and Asian markets
Overseas and Asian markets keep overwhelming sales ratio ⚫ Sales ratio of ⚫ Sales ratio of overseas markets Asian markets 65.1％ 41.6％ Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. reserved. All rights reserved. 9
Slide 10: Business Segment Information
In personal care segment, Japan kept the strong performance while, in Asia, strategic marketing investments were carried out. In pet care segment, sales were consistent and uptrend in North America while the company has made the streamlining efforts such as cost review, reduction and optimization in
Slide 11: Rate fluctuations by currency
Impact of foreign exchange fluctuations: Approx. 40-million yen increase in sales and 200-million yen increase in core operating profit ⚫ Rate fluctuations by currency (Jan. to Mar. average rate) Currency 1Q of ‘24/12 rate 1Q of ‘25/12 rate Rate Change China (CNY) 20.63 20.95 +1.6% Saudi Arabia (SAR
Slide 12: Summary of Progress on Performance Forecast FY Ending December 31, 2025
Summary of Progress on Performance Forecast FY Ending December 31, 2025 Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 13: FY2025 Summary of forecasted results on consolidated basis
FY2025 - Summary of forecasted results on consolidated basis Sales 1,025-billion yen (YoY +3.6%) Consolidation Core operating profit 146-billion yen (YoY +5.4%) 【Status & Progress】 ⚫ Sales are in line with expectations while core operating profit is moving slightly below forecast. Net profit attribu
Slide 14: Highlights of consolidated account forecast
Aiming at exceeding 1-trillion yen in sales for the first time in the company history with record-high profits in all categories （Unit: 100 million yen） ⚫ Highlights of consolidated account forecast (from Jan. to Dec.) FY Ended Dec. 31, FY ending Dec. Gap(yen) Gap(%) (Ref) *1 2024 31, 2025 Actual ga
Slide 15: Shareholders Return Policy
Shareholders Return Policy Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 16: Shareholders return policy
In order to achieve 2030 ROE target of 17%, plan to exceed the current total return ratio of 50% in fiscal year 2025, taking into consideration current market environment and financial situation. ⚫ Shareholders return policy (Unit: 100 million yen) Dividends Purchase of own shares Total return ratio
Slide 17: Dividends per share (JPY)
Dividend payout ratio target raised from 30% to 35% Dividends per share are planned to increase for 24 consecutive term (18 yen per year) ⚫ Dividends per share (JPY) 36.1% 36.5% 36.6% 33.4% 31.6% 29.6% 27.5% 23.1% 21.5% 22.3% 18.0 13.3 14.7 12.0 12.7 9.3 10.7 6.7 8.0 5.3 '16/12 '17/12 '18/12 '19/12
Slide 18: Share buy-back history
In fiscal year 2025, plan to set aside 12 billion yen in treasury stock acquisition funds plus 10 billion yen, which is equivalent to a total return ratio of 50% for normal periods, and to acquire these funds flexibly. ⚫ Share buy-back history (Unit: 100 million JPY) 220 +100 190 155 160 170 170 140
Slide 19: Approach to realize a Cohesive Society (Social Inclusion)
Approach to realize a “Cohesive Society (Social Inclusion)” Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 20: Kyo-sei Life Vision 2030
Formulating Mid-to-Long Term ESG Objectives “Kyo-sei Life Vision 2030" ◆ 20 key themes with the goal in 2030 Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. All reserved. rights reserved. 20
Slide 21: 20 key themes of initiatives
Formulating Mid-to-Long Term ESG Objectives “Kyo-sei Life Vision 2030" ◆20 key themes of initiatives to realize “Cohesive Society (Social Inclusion)” • Extension of healthy life expectancy and improvement of QOL • Support for a society where gender and sexual orientation do not restrict people’s act
Slide 22: Safeguarding the well-being of individuals
Key initiatives, indicators, and target values ◆ Safeguarding the well-being of individuals Mid- and long- term Results goals Key initiatives Indicators 2021 2022 2023 2024 Target Target value year Our aim is to provide products and services that contribute to the realization of a society where all
Slide 23: Extension of healthy life expectancy and improvement of QOL
(Safeguarding the well-being of each individual) Support “lengthening healthy life expectancy” with products and services for the senior citizens ◆Extension of healthy life expectancy and improvement of QOL Year 2030 Goal Continuation Yr.1987～ Yr.1990 ～ 2000 period～ 2010 period～ 2020 period～ of 100%
Slide 24: Support for a society where gender and sexual orientation do not restrict activities
(Safeguarding the well-being of each individual) Rollout of activities tailored to national and regional characteristics to develop a society where women shine ◆Support for a society where gender and sexualorientation Year 2030 Goal do not restrict people’s activities Continuation of 100% Developmen
Slide 25: Unique new value proposals matching each country and region
(Safeguarding the well-being of each individual) Unique new value proposals that match the characteristics of each country and region ➢ Pants type napkin that to reduce leakage anxiety ➢ Cool napkin that feels less dampness and a cool, (developed by China subsidiary) refreshing feeling and type of n
Slide 26: Coexistence with pets
(Safeguarding the well-being of each individual) Support everyday health of pets and the mind of owners with original technology ◆Coexistence with pets Year 2030 Goal Continuation of 100% Development of products and services that enable pets to be welcomed by people ➢ Toiletry products that focus on
Slide 27: Improvement of childcare
(Safeguarding the well-being of each individual) Support improvement of childcare environment through products and services that eliminate discomfort and create the comfort of babies and parents ◆Improvement of childcare Year 2030 Goal Continuation of 100% Development of products and services that e
Slide 28: Improvement of public hygiene
(Safeguarding the well-being of each individual) Protect everyday health and support safe and comfortable living ◆Improvement of public hygiene Year 2030 Goal Continuation of 100% Development of products and services that enable each one of us to control infection ➢ Pursuing comfort, functionality,
Slide 29: Safeguarding the well-being of society
Key initiatives, indicators, and target values ◆ Safeguarding the well-being of society Mid- and long- term Results goals Key initiatives Indicators Target Target 2021 2022 2023 2024 value year Our aim is to provide products and services that not only improve the safety, security, and satisfaction o
Slide 30: Innovations to achieve NOLA & DOLA
(Safeguarding the well-being of society) Development of products and services toward the realization of social inclusion so that everyone can lead a healthy and sanitary life comfortably ◆Innovations to achieve “NOLA & DOLA” Year 2030 Goal Continuation of 100% Development of products and services th
Slide 31: Safeguarding the well-being of our planet
Key initiatives, indicators, and target values ◆ Safeguarding the well-being of our planet Mid- and long- term Results goals Key initiatives Indicators Target Target 2021 2022 2023 2024 value year Our aim is to provide products and services that are sanitary and convenient, as well as contribute to
Slide 32: Accelerating comfort for the global environment and promoting sustainability
(Safeguarding the well-being of our planet) Accelerating “comfort” for the global environment and promoting sustainability that can be done now ➢ Promoting the mid-term goal “Environmental Goal 2030” ➢ Launch of “Choose, Use, Circulate” website to to achieve “Vision 2050” with 2030 target：Cut CO₂ by
Slide 33: Promoting Three 0 by 2050
(Safeguarding the well-being of our planet) Promoting Three “0” by 2050 “0” waste plastic, “0” CO2 emission, “0” natural forest destruction ➢ 「Eco Plan 2030」 Environmental 2021 2022 2023 2024 2025 2030 2050 Implementation items Base year Targets 2030 Results Results Results Results Targets Targets V
Slide 34: SBTi 1.5℃ Target certification
(Safeguarding and sustaining the well-being of our planet) From SBTi* obtained certification as a new “1.5℃ Target” ➢ Initiatives towards a society with zero CO₂ emissions by 2050 Year Status of Initiatives 2018 ✓ Certified as the 17th 2.0°C target setting company in Japan 2020 ✓ Setting of “Eco Pla
Slide 35: GHG emissions visualization and reduction initiatives
(Safeguarding the well-being of our planet) GHG (Green House Gas) emissions visualization and reduction initiatives ➢ Toward achieving “0 (net zero)” CO₂ emissions, will calculate carbon footprint value for each product, understand the emission status for each scope, and work with stakeholders to pr
Slide 36: Taking on the challenge of horizontal recycling of disposable diapers
(Safeguarding the well-being of our planet) Aiming for a world with “zero waste” Taking on the Challenge of “Disposable Diapers to Horizontal Recycling from Disposable Diapers” ◆ Development of environmentally friendly products 2030 Target More than 10 cases Number of products and services that impl
Slide 37: History of challenge for horizontal recycling of disposable pants
(Safeguarding the well-being of our planet) History of challenge for “horizontal recycling from disposable pants to disposable pants” ➢ Project history from launch to present Started development “Technology development” and Start test use Introducing “MamyPoko Pants The number of used paper Developi
Slide 38: Expand our line of recycle model
(Safeguarding the well-being of our planet) Reduce waste disposal cost and environmental burden through recycling used disposable diaper ◆Expand our line of recycle model More than 10 cases Installations number of disposable pants (disposable diapers) recycling facilities ➢ Keep it safe and convenie
Slide 39: Technology to make use of all materials from used diapers
(Safeguarding the well-being of our planet) Developing a technology*1 that enables to make use of all materials from the used disposable diapers ➢ Products using recycled pulp ➢ Products using recycled plastics Collection box Collection bag RefF-marked toilet tissue Shipping pallets customized for c
Slide 40: Flow of recycling process of used disposable diapers
(Safeguarding the well-being of our planet) Flow of recycling process of used disposable diapers ➢ Horizontal recycling (from disposable diaper to disposable diaper) i. Separation collection and transportation ii. Crushing, cleaning, and Used disposable diaper separation processes (Cleaning) (Crushi
Slide 41: Providing occasions to spread information about recycling
（Safeguarding the well-being of our planet） Providing the occasions to spread an information and go through an experience in extending an opportunity to come into contact with recycling ➢ Spread an information through SNS to deepen ➢ Create opportunities to experience the quality, the understanding
Slide 42: Society where diaper recycling is a natural matter
(Safeguarding the well-being of our planet) Create the society where “Disposable diaper recycling is a natural matter” ➢ Future vision using recycled materials (image) Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. All reserved. rights reserved. 42
Slide 43: Addressing climate change
(Safeguarding the well-being of our planet) Switch all electric power used at factories to green electric power aiming to reduce CO2 emission ◆Addressing climate change 2030 Target 100% Use of renewable power Percentage of renewable electric power used for business operation ➢ Ratio of renewable ele
Slide 44: Environmentally friendly and sustainable logistics system
(Safeguarding the well-being of our planet) Initiatives for building an environmentally friendly and sustainable logistics system ➢ Expansion of modal shift through separation of cargo handling ➢ Joint logistics through round transportation* with each business operations, consolidated transportation
Slide 45: Advancing Product Recycling
(Safeguarding the well-being of our planet) Recycling Initiatives at Production Bases ◆ Advancing Product Recycling 2030 Target Start of commercial use Implementation of material recycling for non- woven material products using recycled resources ➢ Advancing waste reduction by reusing product loss f
Slide 46: Efforts that consider safety and the environment
(Safeguarding the well-being of our planet) Efforts that consider safety and the environment ◆ Reducing usage volume of plastic 2030 Target Reduced by half (Compared to 2020) Ratio of virgin petrochemical-derived plastics to plastics ➢ Switched to paper materials for sales promotion ➢ Began recyclin
Slide 47: Unicharm Group Biodiversity Declaration
(Safeguarding the well-being of our planet) Disclosure of information on biodiversity ◆Unicharm Group Biodiversity Declaration to be released on February 10, 2025 Unicharm is committed to conserving biodiversity and the natural environment in all aspects of its corporate activities, based on the fol
Slide 48: Unicharm Principles
Key initiatives, indicators, and target values ◆ Unicharm Principles Mid- and long- term Results goals Key initiatives Indicators Target Target 2021 2022 2023 2024 value year Our aim is to pursue fairness and transparency in order to establish and retain stakeholder trust. Every year Maintain and im
Slide 49: Management practices that take sustainability into account
(Unicharm Principles) Introduction of ESG evaluation system for all employees following on from executive evaluation to maximize social and economic value ◆Management practices that take sustainability into account Every year starting from 2026: Purpose Max level Contribution to achievement of SDGs
Slide 50: Promotion of diversity management
(Unicharm Principles) Further strengthening efforts to promote active participation of women ◆Promotion of diversity management 2030 Target ■Percentage of Women in Managerial Positions Over 30% 29.2 30.7 30.9 28.3 27.8 全社 Total Company 30.0 24.6 20.0 24.7 25.5 日本 Japan 23.0 22.5 23.2 19.7 17.7 10.0
Slide 51: Strengthen human capital management
(Unicharm Principles) Strengthen “human capital management” to maximize value of employees ◆Fostering the development of competent human resources 2030 Target 2024 Employee satisfaction Over 80% (Entire company) Max. score 5 4.40 Ratio of positive responses to “Real feeling of growth through work” i
Slide 52: Developing human resources globally
(Unicharm Principles) Developing human resources globally who create unique value that is closely connected to local area ➢ Discovering consumer needs and creating globally “resonant personnel” who lead innovation Local executive employee ratio 58.7% (As of December 2024) Copyright Copyright (c) (c)
Slide 53: Training and nomination of successors
(Unicharm Principles) Training and nomination of successors (Corporate governance report: Succession planning) Management practices that take sustainability into account (1) Each executive officers periodically conducts interviews with future director candidates and future executive officer candidat
Slide 54: Fostering DX human resources toward new value creation
Fostering DX human resources toward new value creation Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 55: Developing digital human resources to accelerate digital utilization
Achieve sustainable enhancement of corporate value and strengthen competitiveness by creating absolute value for consumers through use of digital technology Achieve a “Cohesive Society” (= Social Inclusion) Use digital technology to understand the psychology of customers and provide unique products
Slide 56: Creating a model to maximize Life Time Value
Creating a model to maximize Life Time Value (LTV) based on women Building long-term relationships with customers and accelerating the diversification of products and services ➢ LTV business area of MDX Division (Marketing by DX) Existing Marketing Division ＋ LTV business area of MDX Division Purcha
Slide 57: Examples of specific initiatives by MDX Division
With a focus on women, maximize LTV by crossing businesses to BC, WC, etc. ➢ Examples of specific initiatives by MDX Division Trying to get Menstruation pregnant (Ninkatsu) Pregnancy Giving birth After birth Child rearing Menopause CRM Sofy APP Each Business Division / Moony Sofy Be Linkage Sofy Be
Slide 58: Initiatives to develop DX human resources globally
Initiatives to develop “DX human resources” globally to maximize customer lifetime value ➢ Introduced the digital tool UniChat (Unicharm version generated AI Chat) to improve efficiency and shorten work time. Selected as a finalist for the Generative AI Innovation Awards hosted by Google Cloud Japan
Slide 59: Examples of initiatives using digital technology
Examples of initiatives using digital technology Copyright (c) Unicharm 2012 Unicharm Corporation. Corporation. All rights All rights reserved. reserved.
Slide 60: Initiatives to foster resonant personnel for BOP Ship
Initiatives to foster “resonant personnel” who can realize “BOP Ship” on a global scale using digital technology ➢ “BOP-Ship”, Unicharm’s corporate culture that has been inherited from the establishment and evolving Always Absorb the best Take the lead to emphasize cooperation with speed overcome di
Slide 61: Establishment of global management
National and international initiatives using digital technology ➢ Improve the quality of operations, increase efficiency, improve the accuracy of management figures, and strengthen market competitiveness by renewing the core system ✓ Improvement of delivery date response level Improving customer ser
Slide 62: Love Your Possibilities corporate brand essence
Believing in the unlimited potential of all people and contributing to the realization of a “cohesive society” in which people support each other by demonstrating a compassionate and altruistic spirit ➢ Provide unique one and only products and services that lead to our corporate brand essence “Love
Slide 63: Love Your Possibilities: Sofy menstrual management apps
Initiatives in Japan utilizing digital technology for accelerating “Love Your Possibilities”, our corporate brand essence - 1 ➢ Sofy’s 3 menstrual and physical condition management apps that provide the customized information for each user such as menstrual cycle management, product proposal, health
Slide 64: Japan initiatives utilizing digital technology-2
Japan initiatives utilizing digital technology-2 ➢ AI chatbot “Charm-san” that provides products & relevant ➢ “Team moony point program”, “Online moony information and “incontinent adult diaper counseling” that helps classes”, “moony-chan toilet training app” can select the best choice of disposable
Slide 65: Japan initiatives utilizing digital technology-3
Japan initiatives utilizing digital technology-3 ➢ Develop health care support service for kitties ➢ Accelerate the realization of a healthy childrearing environment through a capital through business and capital tie-up with RABO, and business alliance with First-Ascent Inc.*1 Inc.*2 *2 A company th
Slide 66: Japan initiatives utilizing digital technology-4
Japan initiatives utilizing digital technology-4 ➢ Evolved value transmission through digital measures ➢ “Shop search system” can help find shops outside the store before visiting stores carrying products to improve customer satisfaction ➢ Developed “Digital Scrum System” to discover ➢ Strengthening
Slide 67: Japan initiatives utilizing digital technology-5
Japan initiatives utilizing digital technology-5 ➢ State-of-the-art smart factory in Kyushu utilizing a variety of autonomic machines and IoT and Logistics Center in Toyohama which has introduced automated equipment Industrial Robot SCADA＊1 Smart Logistics Kyushu Factory Toyohama Logistics Center *1
Slide 68: Overseas initiatives utilizing digital technology
Overseas initiatives utilizing digital technology ➢ Pet growth, health record tool + hospital introduction, and product purchasing platform “Pet note” Growth・Health Health Hospital Personnel Contents Health check records consultation search ＋ Product purchase （Quick commerce） ➢ An app “Sofy Girl Tal
Slide 69: Evaluation by external organizations and coordination (FY 2025)
Evaluation by external organizations and coordination (FY 2025) 2025 ✓ Received “BRONZE” award at “Japan Branding Awards 2024” January ✓ Acquired highest rating of “A List” in 3 segments of “CDP2024” February ✓ Selected for “Human Capital Management Quality 2024 Silver Award” ✓ Selected as “Environm
Slide 70: Index inclusion and evaluation
Index inclusion and evaluation * Disclaimer is posted on the following website https://www.unicharm.co.jp/content/dam/sites/www_ unicharm_co_jp/pdf/csr- eco/report/E_disclaimer_ms.pdf ※ The inclusion of Unicharm Corporation in any MSCI index, and the use of MSCI logos, trademarks, service marks, and
Slide 71: Coordination with external organizations
Coordination with external organizations GHG排出量総量削減目標 基準年:2021年 目標年:2031年 スコープ1,2:46.20%削減 スコープ3:27.50%削減 Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. All reserved. rights reserved. 71
Slide 72: Community contribution activities in Ehime Prefecture
Coordination with external organizations Community contribution activities in Ehime Prefecture, the birthplace of Unicharm and support for disaster-stricken areas ➢ Support activities for children who are responsible ➢ As a “partner for realizing a cohesive society”, for the future of the region thr
Slide 73: Status of inclusion in the index
Status of inclusion in the index Selected in 6 ESG investment indices of stock composites adopted by GPIF Integrated Index Thematic Index E S G * The inclusion of Unicharm Corporation in any MSCI index, and the use of MSCI logos, trademarks, service marks, or index names herein, does not constitute
Slide 74: ESG-related scores and ratings
ESG-related scores and ratings 2019 2020 2021 2022 2023 2024 Climate change B A- A- A- A- A Forest CDP SCORES (timber) B B- B B A A Water security B- B- B B A A MSCI ESG RATINGS BBB 5.3 A 5.3 BBB 4.7 A 5.1 AA 5.7 AA 5.4 FTSE ESG RATINGS 3.5 3.7 3.9 4.0 4.２ 4.4 Copyright Copyright (c) (c) Unicharm Co
Slide 75: Kyo-sei Life Vision 2030 examples of initiatives
“Kyo-sei Life Vision 2030” Examples of initiatives related to important themes Examples of initiatives Results “Excretion care” course Excretion care: 353 times in total (as of the end of Dec 2024) Number of users for “Adult Diaper Counseling” Approx. 51,000 people (as of the end of Dec 2024) Number
Slide 76: We support the Sustainable Development Goals (SDGs)
We support the Sustainable Development Goals (SDGs) Copyright Copyright (c) (c) Unicharm Corporation. 2012 Unicharm All rights Corporation. All reserved. rights reserved.