Shiseido : Notice Regarding Establishment of Joint Venture with YA-MAN LTD.

August 6, 2020

Dear Sirs and Madams,

Name of Company: Shiseido Company, Limited

Name of Representative: Masahiko Uotani

President and CEO

(Representative Director)

(Code No. 4911; The First Section of the Tokyo Stock Exchange)

Contact: Harumoto Kitagawa

Vice President

Investor Relations Department

(Tel: [phone])

Notice Regarding Establishment of Joint Venture with YA-MAN LTD.

Shiseido Company, Limited (hereafter "Shiseido") hereby announces that Shiseido and YA-MAN LTD. (Headquarters: Koto-ku, Tokyo, Japan, CEO: Kimiyo Yamazaki) (hereafter "YA-MAN") have signed an agreement to establish a joint venture in the beauty device business.

Note

1. Reason for establishing a joint venture

Shiseido places importance on the creation of open innovation to establish innovative business models by combining the expertise of Shiseido with business partners as one of our key business strategies in striving to be a global winner with our heritage through the medium-to-long-term strategy VISION 2020 (2014-2020).

Shiseido will provide new beauty value through the combination of Shiseido's strengths cultivated in the cosmetics business, such as skincare, with YA-MAN's expertise in the beauty device business, and also leveraging its high recognition among Chinese consumers.

The new company will initially focus on the Chinese market and develop cross-border business targeting Chinese consumers who are interested in anti-aging and beauty devices. Brands and products of Japanese origin with "Made in Japan" proven safety and quality will be created by applying both YA-MAN's highly advanced beauty device technology and Shiseido's cutting-edge skin science technology, and they are planned to be launched in Japan and China in 2021.

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2. Business details of the joint venture

1. Business activities of the joint venture

Businesses such as brand creation, product planning, and sales for the purpose of providing new beauty solutions and creating new value that cannot be realized with cosmetics or beauty devices alone.

(2) Overview of the joint venture

1	Name	EFFECTIM Co., Ltd.
2	Address	7-5-5 Ginza, Chuo-ku, Tokyo, Japan
3	Title or name of	Toshinobu Umetsu, Representative Director, CEO
representative
		Businesses such as brand creation, product planning, and
4	Business	sales for the purpose of providing new beauty solutions and
creating new value that cannot be realized with cosmetics or
		beauty devices alone
5	Capital	490 million yen
6	Date of	October 1, 2020 (planned)
establishment
7	Investment ratio	Shiseido: 65%, YA-MAN: 35%

3. Overview of YA-MAN LTD.

1	Name	YA-MAN LTD.
2	Address	1-4-4 Furuishiba, Koto-ku, Tokyo, Japan
3	Title and name of	Kimiyo Yamazaki, CEO
representative
		R&D, manufacturing, import/export sales of beauty and health
4	Business	device, import sales of cosmetics, sales of household goods,
import sales of advanced electronic equipment (semiconductor
		inspection equipment, etc.)
5	Capital	1,813 million yen
6	Date of	May 27, 1978
establishment
		Yukiteru Yamazaki 13.0%
		Kimiyo Yamazaki 11.3%
		Shizuko Yamazaki 10.8%
	Major	Mitsuhide Yamazaki 4.5%
	Japan Trustee Services Bank, Ltd.(Trust account)(*1) 3.9%
	shareholders and
	Victoria Yamazaki 3.8%
7	ownership ratio
Shirubi Yamazaki 3.8%
	(As of Apr 30,
	Iwao Yamazaki 2.7%
	2020)
	The Master Trust Bank of Japan, Ltd.(Trust account) 1.4%
		CDSIDAC-MERIAN GLOBAL INVESTORS SERIES PLC
		1.0%
		2

		Capital relationship	N/A
	Relationship	Personnel	N/A
8	between listed	relationship
company and	Trade relationship	N/A
	subject company	Applicability to	N/A
		related parties

9 Consolidated business performance and consolidated financial position of the subject company over the recent three years

Fiscal term	Year ended	Year ended	Year ended
in April 2020	in April 2019	in April 2018
Consolidated net assets	13,361 million	13,072 million yen	11,877 million yen
yen
Consolidated total	17,292 million	17,959 million yen	16,524 million yen
assets	yen
Consolidated net assets	242.85 yen	233.67 yen	208.27 yen
per share
Consolidated net sales	22,975 million	27,252 million yen	23,030 million yen
yen
Consolidated operating	2,504 million yen	5,705 million yen	5,385 million yen
profit
Consolidated ordinary	2,310 million yen	5,715 million yen	5,345 million yen
profit
Net profit attributable	1,322 million yen	3,539 million yen	3,399 million yen
to owners of parent
Consolidated net	23.66 yen	62.65 yen	59.62 yen
income per share
Dividend per share	3.6 yen	8.1 yen	7.6 yen(*2)

(*1) Japan Trustee Services Bank, Ltd. merged with JTC Holdings, Ltd. and Trust & Custody Services Bank, Ltd. on July 27, 2020 to become Japan Custody Bank, Ltd.

(*2) As of November 1, 2017, there was a stock split at a rate of 10 shares for each common share, so the dividend per share for the fiscal year ended April 31, 2018 takes into account the effect of the split.

4. Schedule

	Date of
1	conclusion of	August 6, 2020
	agreement
	Date of
2	commencement of	October 1, 2020 (planned)
	business

5. Future outlook

Shiseido believes that this establishment of joint venture business has only minor effects on its consolidated financial results for the fiscal year ending December 2020, but that it will contribute to the business expansion of the Shiseido Group in future.

-End of News Release-

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