Apr–Jun: Robust Japan/Asia Trends Underpin Earnings: Japan | Cosmetics, Household & Personal Care

Research evidence excerpt

Apr–Jun: Robust Japan/Asia Trends Underpin Earnings: Japan | Cosmetics, Household & Personal Care

oving average OPM and EV/EBITDA

Hadalabo resonates across all age groups, not just younger consumers. (x)20.0 17.00%

The company's skincare business accounts for approximately 57% of sales, covering both 15.0 JF E15.00%

Japan and Asia. While Rohto is widely recognized for its eye-care franchise, the key growth 13.00%

driver has been its skincare business, supported by sustained volume expansion. 10.0 11.00%

JF E 9.00%

Launched in 2004, Hadalabo benefited from consumer down trading following the 2008– 5.0 JF E 7.00%

09 global financial crisis, establishing itself as a leading value-for-money skincare brand. 0.0 5.00%

EV/EBITDA(x) 1 year AverageSince 2022, demand for lower-priced skincare products has remained resilient amid broad-

TP OPM(RHS) .

based inflation in household goods and daily necessities. Nevertheless, investors may be Source: FactSet, Jefferies estimates

concerned that the April 2026 across-the-board price increase for Hadalabo could result in

Exhibit 3 - Marketing initiativesvolume declines.

The rise of Korean brands is both a threat and an opportunity. Rising consumer medical

literacy represents a favorable structural trend: As aesthetic medicine services become KOL,Celebrity,Inflluencer DigitalSNS LiteracyLiteracy, Medical Literacy

more accessible and consumers gain a deeper understanding of skin science, they are better

-Pharmaceutical com tool -Rely on own judgement,equipped to make skincare choices tailored to their specific needs. Korean skincare brands -Communiaztion Advantageous, -Lower ROIs due to cost insight, findings

-> Rohto inflation - Personalizedhave also popularized marketing centered on active ingredients and efficacy claims.