2019 January-September Results and

Full-Year Forecast

Michael Coombs

Chief Financial Officer

Shiseido Company, Limited

November 7, 2019

In this document, statements other than historical facts are forward-looking statements that reflect our plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause actual results and achievements to differ from those anticipated in these statements.

Key Headlines:

Q3: Resilient performance

despite external challenges

Q3 YTD*1 : Record-high Sales,

Operating profit and Net profit

*1. First nine months

3

2019 Q3 : Executive Summary

Stable performance with continuing strong fundamentals

11th consecutive quarter of sales growth*1

Operating Profit +13.3%, Operating Margin 12.2%, +1.1 pts

Net Profit growth +22.5%

Net Sales: ¥282.0 Bn YoY change: +3.2% FX-Neutral: +6.6% Like-for-Like*2 : +8.6%

  • Prestige brands: main driver of global growth with successful launches (+11%*2)
  • China: prestige sell-out remains strong (over +40%*3)

Travel Retail: fastest-growing segment

Japan: steady; EMEA: strong growth Improved supply

Impacts from market*4 uncertainties (Hong Kong, S. Korea)

Operating Profit: ¥34.3 Bn YoY change: +13.3%, +¥4.0 Bn; OPM: 12.2%, +1.1 pts Improving profitability from brand mix, strategic marketing investments

and cost control

Net Profit Attributable to Owners of Parent:

¥20.0 Bn YoY change: +¥3.7 Bn, +22.5%

*1. After we changed financial period from end of March to end of December in 2015

*2. Like-for-Like, excluding the impacts of business withdrawals (the amenity goods business in 2018 and dermatologic agent brands FERZEA and Encron in 2019) in Japan

and a one-off factor related to the implementation of new ERP in Americas 2019

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*3. Mainland China *4. Country/region

Focus on Prestige First, Skincare First Yielding Results

  • Global prestige brands achieving double-digit growth
  • SHISEIDO
    • Growth driver: ULTIMUNE eye serum, relaunch and new products within foundation
    • Advancing with global expansion:

Aiming for sales of ¥200 Bn

  • Clé de Peau Beauté :
    Accelerated momentum to over +20%
    • Growth driver: Skincare line renewal
    • Expanding global reach
  • IPSA
    • Japan: robust sales
    • Travel Retail Asia: increased penetration

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Shiseido Co. Ltd. published this content on 07 November 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 November 2019 07:44:00 UTC